Changes to water resources are critical to all sectors of the economy. Climate change will affect the timing and quantity of water available in the environment as well as have an adverse effect on the quality of that water. Floods, droughts, and changing patterns of water scarcity—when water is not available in sufficient enough quantities or of a suitable quality at the right time to fulfill demand—are all critical factors when considering how and where Indiana will be able to economically develop in the future. Management of water resources will become even more important as different sectors try to minimize the risk of water scarcity in the face of increasing climate variability. This paper focuses on observed changes to Indiana’s water resources and how the availability and quality of those resources are likely to change in the face of future climate. Generally, Indiana is becoming wetter but with the projected increase coming primarily in the winter and spring. Summer water use will increase the likelihood of water shortages and the need for improved water management. In particular, Indiana may benefit from investment in methods to increase short-term storage of water—retaining more of the overabundance from winter and spring to relieve summer shortages. © 2021, The Author(s), under exclusive licence to Springer Nature B.V. part of Springer Nature.