According to the latest information from the Texas Water Development Board, 94 percent of the state is considered to be in drought.
One area extremely hard hit is Breckenridge. Hubbard Creek Lake, just outside the city, is only 26 percent full. Just one year ago the lake was doing a little bit better at 34 percent full.
"This is the lowest it's ever been," said Wayne Richardson who has lived in Breckenridge for 68 years.
It’s been seven years since Hubbard Creek Lake was full.
"The last four years the lake just steadily kept dropping and kept dropping," said Richardson.
The drought is bringing down the price of homes built on the lake.
"The sales have gone down about 20 percent over the last year," said Lance Adams, co-owner of Adams Real Estate Solutions in Breckenridge.
It has also hurt local businesses like Sandy Creek Marina.
"Once the drought hit, it definitely affected our business in that people are not getting out really and boating or fishing or doing any water recreation due to the low lakes," said Robin Moore a sales manager at Sandy Creek Marina.
Moore said he believes the lake can still be salvaged.
"It's basically going to take either a flood or hurricane," Moore said.
Richardson also remains optimistic.
"We'll get some good rain one of these days and it'll fill back up and it'll look alright," said Richardson.