Abstract. The influence of climate variation on the availability of water resources was analyzed in 15 the headwaters of the Tagus River basin using two drought indices, the standardized precipitation 16 index (SPI) and the standardized precipitation evapotranspiration index (SPEI). This basin is highly 17 regulated and strategic, and contains two hyperannual reservoirs that are the origin of the water 18 supply system for Mediterranean areas of southeast Spain. The indices confirmed that drought 19 conditions have prevailed in the headwaters of the Tagus River since the 1970s. The responses in 20 river discharge and reservoir storage were slightly higher when based on the SPEI rather than the 21 SPI, which indicates that although precipitation had a major role in explaining temporal variability 22 in the analyzed parameters, the influence of temperature was not negligible. Moreover, the greatest 23 response in hydrological variables was evident over longer timescales of the climatic drought 24 indices. Although the effect of climate variability on water resources was substantial during the 25 analyzed period, we also showed a major change in hydrological-climatic relationships in regulated 26 systems including reservoir storage and outflow. These were closely related to changes in external 27 demand following commencement of the water transfer system to the Júcar and Segura basins after 28 the 1980s. The marked reduction in water availability in the basin, which is related to more frequent 29 droughts, contrasts with the amount of water transferred, which shows a clear upward trend 30 associated with increasing water demand in the Mediterranean basin. 31 32 33