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TeachMeFinance.com - explain Palmer Drought Severity Index Palmer Drought Severity Index -- (Abbrev. PDSI) - an index used to gage the severity of drought conditions by using a water balance equation to track water supply and demand. This index is calculated weekly by the National Weather Service. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.