The present research was carried out to study drought and its effects upon water resources using remote sensing data. To this end, the tropical rainfall measuring mission (TRMM) satellite precipitation, the synoptic stations, and fountain discharge data were employed. For monitoring of drought in the study area, in Kermanshah province, Iran, the monthly precipitation data of the synoptic stations along with TRMM satellite precipitation datasets were collected and processed in the geographic information system (GIS) environment. Statistical indicators were applied to evaluate the accuracy of TRMM precipitation against the meteorological stations’ data. Standardized precipitation index, SPI, and normalized fountain discharge were used in the monitoring of drought conditions, and fountains discharge, respectively. The fountains were selected so that in addition to enjoying the most discharge rates, they spread along the study area. The evaluation of precipitation data showed that the TRMM precipitation data were of high accuracy. Studies in temporal scale are indicative of the strike of drought in this region to the effect that for most months of the year, frequency and duration in dry periods are much more than in wet periods. As for seasonal scales, apart from winter, the frequency and duration of drought in spring and autumn have been longer than in wet years. Moreover, the duration of these periods was different. A comparison between the results of changes in fountain discharges and drought index in the region has verified that the drought has caused a remarkable decline in the fountain discharges.