AbstractThe problem of drought identification is considered from a primarily hydrological viewpoint. The problems related to the definition, identification and prediction of drought have not yet been solved. Although rainfall data are analysed as the main indicator and characteristic of drought, other characteristics resulting from a rainfall deficit are also important. A time unit of one month was selected as the most suitable for analysis. Special attention was paid to the selection of truncation levels with respect to their influence on the results of drought identification. Three methods for drought identification were applied to a series of monthly rainfall data in Osijek from January 1882 to December 1990: (1) run analysis; (2) a discrete Markov process; and (3) the percentile method. Although the results of these three methods are encouraging, different methods yielded similar results. Some drawbacks of the application of distribution curves are discussed. Drought events should be identified using a number of different procedures.