Droughts, the costliest natural disaster known to humanity, have a substantial impact on the economy, society, and environment. A recent example was the drought-induced megafires in 2019-2020 across Australia, which destroyed around 5.8 million hectares of forests, millions of wild animals and 33 human deaths (Boer et al., 2020). It is well acknowledged that rising temperatures intensify the global hydrological cycle (Milly et al., 2002). With projected increases in global temperatures, it is now generally agreed that these extremes events are likely to become more frequent and intense (IPCC, 2014). Many other factors, including a growing population, contamination of surface water and groundwater resources, and an increasing water demand resulting from agricultural activities leading to increased evapotranspiration (Zou et al., 2017), have led to rising water scarcity around the world (Boretti & Rosa, 2019).Understanding the vulnerability of these systems to climate variability has traditionally been achieved by assuming that past hydrological extremes will occur again in the future, an assumption that is no longer tenable due to anthropogenic climate change. Assessing the risks of future sustained hydrological anomalies (e.g., droughts) is generally based on general circulation model (GCM) simulations of precipitation, temperature, and soil moisture. However, climate model simulations of these variables exhibit significant biases at a range of time scales and thus have varying abilities to represent sustained climate anomalies (Johnson et al., 2011). Droughts are caused by the interplay of several climatic factors, such as sustained low precipitation, high temperature, strong winds,