Multispectral RS coupled with Web/mobile GIS would a better choice. RS data e.g. LandSat 8 possessing Near Infrared for identification of the target area and GIS for management or decision making/constant monitoring of the area.
The best strategy perhaps would be to adopt a mix of multi-temporal as well as hyper temporal satellite imagery preferable supported by in- situ data. Mobile GIS must be employed to collect in-situ/ground truth data for quickly updating Web Spatial Databases being the core of internet/web GIS. Please let me know if more explanation is needed.
Dear Behroz , I think it is better use RS for monitoring,but before that you must structure a hierarchy for your goal within Multi Criteria Decision Analysis(MCDA). MCDA is powerful mean which focus on effective factor on drout
Dear Behrooz, we coordinated a Euro-Asian research project with a big component on drought and flood monitoring from remote sensing. Reports are available from our website, it may interest you : http://www.ceop-aegis.org/
You may look at some products from National Drought Mitigation Center (NDMC), some of which are based on RS and webGIS. The link is http://drought.unl.edu/MonitoringTools.aspx