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Climate change is affecting the global hydrological cycle, causing drastic changes in precipitation patterns. Extreme climatic events are becoming more frequent and intense than in the past, leading to water-level fluctuations and affecting aquatic ecosystems. Semiarid regions are very susceptible to changing climate. We analyzed a 10 years dataset from a tropical semiarid reservoir during extreme hydrological events (heavy rains and prolonged drought), and evaluated phytoplankton functional responses to environmental conditions. We found, as hypothesized, that phytoplankton functional structure change in a temporal scale due to water–volume fluctuation induced by the rainfall pattern. Depth and inorganic material acted as environmental filters selecting phytoplankton groups. High water level seems to improve water quality and low water level worsen it. Colonial and filamentous cyanobacteria dominate the wet period; however, it may have a critical threshold during severe periods of drought, which will lead to dominance of groups well adapted to low light conditions and with mixotrophic metabolism. Phytoplankton functional approaches can simplify phytoplankton identification and reflect better the environmental conditions than the taxonomic approach. Therefore, these approaches can help to understand the shifts in aquatic ecosystems under extreme hydrological events and predict functional response of phytoplankton being an important tool to water management and conservation. [ABSTRACT FROM AUTHOR]