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Economically optimal operational changes and adaptations for California's water supply system are examined for a dry form of climate warming (GFDL CM2.1 A2) with year 2050 water demands and land use. Economically adaptive water management for this climate scenario is compared to a similar scenario with the historical climate. The effects of population growth and land use alone are developed for comparison. Compared with the historic hydrology, optimized operations for the dry climate warming scenario raise water scarcity and total operation costs by $490 million/year with year 2050 demands. Actual costs might be somewhat higher where non-economic objectives prevail in water management. The paper examines the economical mix of adaptation, technologies, policies, and operational changes available to keep water supply impacts to such modest levels. Results from this screening model suggest promising alternatives and likely responses and impacts. Optimized operations of ground and surface water storage change significantly with climate. Dry-warm climate change increases the seasonal storage range of surface reservoirs and aquifers. Surface reservoir peak storage usually occurs about a month earlier under dry-warm climate change. [ABSTRACT FROM AUTHOR]

• CIRFs are useful for exploring risks of system failure under climate change. • Synthetic streamflow series are generated using SA and linked to climate conditions. • Logistic regression relates system responses to climate drivers. • System failure defined according to performance (reliability) and threshold. • LR model detects climate conditions which would require adaptation. Climate Impact Response Functions (CIRFs) can be useful for exploring potential risks of system failure under climate change. The performance of a water resource system can be synthesized through a CIRF that relates climate conditions to system behavior in terms of a specified threshold of deliveries to demands or environmental flow requirements. However, in highly regulated water resource systems this relationship may be quite complex, depending on storage capacity and system operation. In this paper we define a CIRF for these types of systems through a multivariable logistic regression (LR) model where a binary variable (system response) is explained by two continuous variables or predictors (precipitation and temperature). The approach involves generating multivariate synthetic inflow time series and relating them to specific climate conditions. Next, these inflows are used as inputs in a water management model, and the outcome is coded as a binary variable (failure or its absence) depending on selected vulnerability criteria. To identify the time span before the failure event in which climate variables are relevant, we characterized drought development stages through relative standardized indices. Mean values of precipitation and temperature for the selected time span are computed and used as explanatory variables through a LR model, which is validated using data from several climate models and scenarios. Results show that the predictive capacity of LR models is acceptable, so that they could be used as screening tools to detect challenging climate conditions for the system which would require adaption actions. [ABSTRACT FROM AUTHOR]