This appendix contains a detailed description of the algorithm used by the KYBASIN model to quantify water supply deficits in the Kentucky River Basin. This document is an attachment to the report entitled Task III Report-Deficit Analysis (Ormsbee and Herman, 1996), which summarizes the water supply deficit results of Phase III of the KWRRI Kentucky River Basin Water Supply Assessment Study. The purpose of the study was to quantify water supply in the Kentucky River Basin during a severe drought for the existing supply system/resources under current and projected demand forecasts. The study was authorized by the Kentucky River Authority in a contract with the Kentucky Water Resource Research Institute dated April 1, 1995