The drought has significantly affected the local economy, particularly businesses dependent on tourism at Elephant Butte Reservoir. With water levels at 1.4%, boat ramps are closed, and visitor numbers have plummeted. This has led to a 77% drop in revenue for some businesses, such as Zia Kayak Outfitters. The city of Elephant Butte, along with Sierra County and Truth or Consequences, is seeking state assistance to mitigate the economic impact. The prolonged drought also raises concerns about long-term water resource management and community resilience.