The Tourism and Sports Minister has dismissed reports the government will ban people from throwing water during the Songkran festival.
Throwing water is the highlight of the Songkran festival, which usually runs between April 13 and 15.
Speaking after Tuesday's cabinet meeting, Kobkarn Wattanavrangkul said officials from the Ministry of Tourism and Sports, the Ministry of Agriculture and Cooperatives, and the Ministry of Interior are working closely to address the water problem.
She said authorities are currently waiting for information on water reserves throughout the country from the Irrigation Department before implementing any measures.
Information on water reserves is a key factor for the government to make a decision on water usage during the Songkran festivities, she said.
"We will talk to the officials and make a decision on how water should be used and plan constructively to solve the problems," Ms Kobkarn added.
Different areas face different degrees of water shortages, Ms Kobkarn said, adding that people living in areas with severe drought would be urged to use less water during the festival.
She said officials realise the importance of preserving culture and traditions, adding people could enjoy the festival in a traditional way by using a small bowl to pour water, instead of a bucket.
Ms Kobkarn said she has ordered her subordinates to provide information about the severe drought to foreign tourists who plan holidays in Thailand during Songkran. The festival draws many foreigners to visit the country.
Meanwhile, Prime Minister Prayut Chan-o-cha has urged people to use water carefully during Songkran.
The premier also called on parents to tell their children to use less water during the festival.
"I want to urge people to use less water during Songkran as we have to conserve water for use until the rainy season comes. If we don't have sufficient water, who will be blamed? The government has to take responsibility," Gen Prayut said, adding he could not stop people from splashing water.