A bill to provide temporary authorities to the Secretary of the Interior to facilitate emergency action to mitigate the impacts of drought.

Directs the Secretary of the Interior to make specified efforts to mitigate the impact of the 1987-1988 drought period.

Prohibits any willing seller from profiting or receiving any undue benefit from the sale of water during such drought.

Authorizes the Secretary to make available, by contract, surplus water at existing Federal reclamation projects to irrigation districts on a temporary basis to mitigate losses and damages resulting from the drought.

Requires Federal and State agencies to coordinate emergency and relief operations.

Requires a report to the President and the Congress by March 1, 1989. Authorizes appropriations.