Assessing the impact of climate variability on water resources is one of the difficult tasks in planning the future growth of North-Central Texas. This study defined twelve extreme climate scenarios. Data from each scenario was input to a hydrological model (HEC-HMS) to calculate watershed runoff to Lake Ray Roberts. Model parameters are determined using Geographic Information System (GIS). The water balance was calculated for current and future water demand and resulting change in the volume and level of this reservoir. The results indicate certain climate scenarios decrease in volume. Thus, local governments should plan alternative water management strategies during droughts.