Exceptional water deficits observed in recent months over much of Australia are forecast to diminish considerably in the near-term and through May 2018. However, severe to exceptional deficits are forecast to persist through February in Tasmania and the southernmost tip of Western Australia. From September through November moderate to severe deficits are forecast in the southeast, exceptional deficits will persist in Northern Territory’s Top End, and surpluses will continue to emerge along Queensland’s northeast coast.