Droughts are recurring climatic events, which often hit South Asia, bringing significant water shortages, economic losses and adverse social consequences. Preparedness for drought should form an important part of national environmental policies. At present, countries of the region have limited institutional and technical capacity to prepare for a drought and to mitigate its impacts. Information on drought onset and development is not readily available to responsible agencies and to the general public. This report describes the first results of the development of the near-realtime drought-monitoring and reporting system for the region, which includes Afghanistan, Pakistan and western parts of India. The system is being developed using drought-related characteristics (indices), which are derived from remote-sensing data. The indices include a deviation from the normalized difference vegetation index (NDVI) from its long-term mean and a vegetation condition index (VCI).