Data from 1960 to 2014 reveal significant changes in the climatic characteristics of Istanbul. Rising temperatures and changes in precipitation, along with population growth, rapid urbanization and the impact of industrial activities, have led to water scarcity in Istanbul. The purpose of this study was to analyze the drought hazard and problem of water scarcity in Istanbul using measurements compiled over 55 years. Daily precipitation and temperature data sets observed at Florya Meteorological Station were used for the drought analyses. Statistical analysis of Istanbul's population is based on data from the Turkish Statistical Institute. Analysis results show that Water surplus, Storage change, Water deficiency and also Potential Evapotranspiration values in Istanbul are key evidences of a negative change in the water balance of Istanbul. It has been understood that seasonal changes and decrease of precipitation and the increase in monthly and annual average temperature encourage the water shortage in Istanbul climate. Results of the analysis were evaluated and are discussed here in terms of both Istanbul's water needs and water management. The data show that the city is faced with drought hazard risk and increasing water scarcity.