Climate change can reduce surface-water supply by enhancing evapotranspiration in forested mountains, especially during heatwaves. We investigate this "drought paradox" for the European Alps using a 1212-station database and hyper-resolution ecohydrological simulations to quantify blue (runoff) and green (evapotranspiration) water fluxes. During the 2003 heatwave, evapotranspiration in large areas over the Alps was above average despite low precipitation, amplifying the runoff deficit by 32% in the most runoff-productive areas (1300-3000 m above sea level). A 3 °C air temperature increase could enhance annual evapotranspiration by up to 100 mm (45 mm on average), which would reduce annual runoff at a rate similar to a 3% precipitation decrease. This * Corresponding author 2 suggests that green water feedbacks-often poorly represented in large-scale model simulations-pose an additional threat to water resources, especially in dry summers. Despite uncertainty in the validation of the hyper-resolution ecohydrological modelling with observations, this approach permits more realistic predictions of mountain region water availability. Although relatively small in size, the European Alps (hereafter "Alps") contribute a disproportionally large amount of water, especially during summer, to four major European rivers 1 , in the basins of which reside more than 170 million people 2. For this reason, they are referred to as "the water towers of Europe" 3. At the same time, water scarcity and droughts in central Europe are becoming more frequent 4. The summer droughts of 2003, 2010, 2015 and 2018 have raised concerns about the vulnerability of the European water budget to climate change 2,5 as these events have affected more than 17% of the European population with an annual economic impact exceeding € 6.2 billion between 2001 and 2006 6. Temperature in the Alps is increasing at a fast pace 7 , relative humidity is generally decreasing 8 , evapotranspiration (ET) is increasing 9 , Alpine glaciers are shrinking and the distribution of snow is shifting to higher elevation 10 , while climatic extremes are becoming more frequent 11. The complex topography, the interactions between water and vegetation and the multiple processes shaping the water cycle in mountainous areas hinder the quantification of the different water budget components in traditional large-scale climate change impact assessment studies 12. For example, climate change can shift the partitioning of water fluxes in the hydrosphere and biosphere moving blue water (runoff and streamflow) into green water (ET) 13,14. Quantifying how these fluxes change with elevation, seasonally, and interannually is an important and challenging scientific question. Large uncertainties are associated with the vegetation response to water stress 15,16. Studies in different parts of the Alps have found contrasting impacts of droughts on vegetation 17 , spanning 3 from increased mortality in dry inner-Alpine valleys 18 to enhanced productivity in wet pre-Alpine hills 19. These discrepan...