As long-term drought conditions persist throughout Arizona, related impacts are emerging across diverse sectors capturing the attention of stakeholders as well as the general public. Drought monitoring and the calculation of drought status are typically based on sparse networks of hydrometeorological data. Observations of drought impacts in conjunction with hydrometeorological data offer the promise of better characterizations of drought. A web-based drought impact reporting system has been developed to systematically collect this type of information along with a program to engage, recruit, and train drought impact observers in Arizona. This presentation will highlight successes and challenges in program development over the past three years as well as lessons learned.