A fast growing population and rapid urbanization are putting increasing pressure on the water system of Metro Manila, which could result in a water crisis when the city is subjected to extreme drought events. This report clarifies the different aspects of this problem as well as the effects on the population of Metro Manila, through the definitions of hydrological and soil moisture drought. Several different solution strategies are proposed, which take into account the complexity of the drought problem and put an emphasis on the need for a proactive approach. Added to this report are links for further reading and questions for understanding and discussion.