Local media in the state of Bahia say "water wars” have broken out in rural areas where scores of animals are wasting away due to the parched conditions.
Milk production is reported to be down by a third, while beans, corn and fruit crops are down by a half, agriculture officials say.
Bahia is famous for its annual religious parties in June, but at least 47 towns have canceled or downsized their traditional celebrations due to the drought.
Cattle and other animals have gathered around the few muddy puddles left in otherwise dried-up riverbeds, especially in the northeastern state of Pernambuco.
Satellite Image: Earthbrowser