In this USGCRP seminar, issues about the impact of drought and floods in the news and feel it in the cost of goods and services would be discussed. Each year seems to bring with it droughts or floods that cause billions of dollars in economic losses and untold societal disruption to major parts of our nation. (Drought in the Midwest in 1988 and in the Southeast in 1989. Floods in the Mississippi River Basin in 1992 and in California in 1994). Around the world the situation is the same, even worse in some instances. What causes these extreme events and conditions? Can we predict the occurrence of such events as a means of being prepared, and reducing the impacts of extreme climate events? Can we be better prepared? What success to date has there been in predicting such events? What's the prognosis?