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Policy responses to the challenges associated with environmental change, including more frequent and severe climatic events, have interlinked environmental and social impacts. Less attention has been afforded to the latter, and specifically to the question of not just whether but how such responses create or entrench inequality. This paper examines policy responses to drought events in California, United States, and the Western Cape Province, South Africa, in terms of their effects on inequality, revealed in relationships to water access networks. We use concepts of water justice and hydraulic citizenship to evaluate how and why these policy responses reproduced water injustices in the two settings. We focus particularly on two mechanisms linking responses to widened inequalities: values‐reinforcement and strategic communication. Using interviews, policy documents, and media reports, we employ process tracing methods to illustrate these mechanisms through which drought policy impacts hydraulic citizenship experiences, manifesting water injustice. We contribute to emerging examinations of environmental policy responses and maladaptation by demonstrating how concepts of hydraulic citizenship and an emphasis on mechanisms can help us better understand and identify experiences of water injustice. We note policy implications and areas for future research, highlighting droughts as consequential policy sites for advancing social and environmental justice. [ABSTRACT FROM AUTHOR]