The role of reservoir surface evaporation in river/reservoir water budgets and water management is explored using a modeling system that combines historical natural hydrology with current conditions of water resources development and management. The long-term mean evaporation from the 3415 reservoirs in the Texas water rights permit system is estimated to be 7.53 billionm3/year, which is equivalent to 61% of total agricultural or 126% of total municipal water use in the state during the year 2010. Evaporation varies with the hydrologic conditions governing reservoir surface areas and evaporation rates. Annual statewide total evaporation volumes associated with exceedance probabilities of 75%, 50%, and 25% are 7.07, 7.47, and 7.95 billionm3/year, respectively. Impacts of evaporation are greatest during extended severe droughts that govern water supply capabilities. © 2013 Elsevier B.V.