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As in many places, groundwater in California (USA) is the major alternative water source for agriculture during drought, so groundwater’s availability will drive some inevitable changes in the state’s water management. Currently, agricultural, environmental, and urban uses compete for groundwater, resulting in substantial overdraft in dry years with lowering of water tables, which in turn increases pumping costs and reduces groundwater pumping capacity. In this study, SWAP (an economic model of agricultural production and water use in California) and C2VISim (the California Department of Water Resources groundwater model for California’s Central Valley) are connected. This paper examines the economic costs of pumping replacement groundwater during drought and the potential loss of pumping capacity as groundwater levels drop. A scenario of three additional drought years continuing from 2014 …