Some key elements in drought relief policy are outlined and the major themes in associated lobbying are discussed. Recent policy changes announced in 1992 are described in detail against the background of the Report of the Drought Policy Review Task Force (1990). Indifference curve analysis is used to compare recent developments with the preceding policies and the targeting problems associated with both policy regimes are discussed. It is found that the new drought relief policy is unsatisfactory in a number of ways. Discussion of the welfare implications of recent changes in drought policy is then provided and conclusions are finally drawn.