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• This paper extends the residual mass concept to propose a new method to quantify water availability. • The method automates the identification of deficit periods in the residual mass curve. • The method is validated against SPI and streamflow for Australia. Water supply management for hydroclimatic extremes has commonly been analysed using the cumulative difference between inflow and demand, a concept known as the Residual Mass Curve. This paper extends the residual mass concept to develop a new method to quantify water availability, termed the Residual Mass Severity Index (RMSI). The RMSI improves on the Residual Mass Curve by allowing extreme deficit periods to be easily identified without the need for manual inspection of the Residual Mass Curve. Another advantage of the RMSI is that it does not require a temporal window to be specified to characterise extreme deficit periods, which is needed for many drought indices such as the Standardized Precipitation Index (SPI). This paper develops the method for calculating the RMSI using precipitation time series and compares it to the SPI for different drought durations across Australia. Major hydroclimatic extremes during the instrumental period are assessed using RMSI, SPI, and by comparing the RMSI estimates with streamflow data from 467 catchments with varying sizes and climate across Australia. RMSI is a useful index for water managers interested in assessing water availability with potential applicability in summarising the features of historical hydroclimatic extremes as well as future changes in water availability due to anthropogenic climate change. [ABSTRACT FROM AUTHOR]