Exceptional deficits observed in recent months over much of Australia are forecast to diminish considerably in the near-term and through June 2018. Through December, however, exceptional deficits are forecast for Tasmania and the southwest tip of Western Australia. Moderate to extreme deficits are forecast from Adelaide through Victoria and into the eastern Murray-Darling Basin in New South Wales. Moderate deficits are expected in New Caledonia and South Island, New Zealand. Surpluses are forecast for the Ord River Basin, northeastern Queensland, and Christchurch, New Zealand.