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Drought is a complex natural hazard with its adverse multifaceted impacts cascading in every physical and human system. The vulnerability magnitude of various areas to drought mostly depends on their exposure to water deficiency, the existing water management policy framework and its implementation. The Standardized Drought Vulnerability Index (SDVI) is an integrated attempt towards characterizing drought vulnerability based on a comparative classification system, incorporating precipitation patterns, the supply and demand trends, and the socioeconomic background as the most crucial contributors to drought vulnerability. This work attempts to evolve the SDVI by presenting a more rigorous method of index parameters estimation and argues that the combination of in-situ and satellite data improve the index results in an effort to further minimize the paucity of drought related information. At the same time, it helps to surpass previous limitations in temporal and spatial propagation of the vulnerability concept. The new framework is applied in the South Platte Basin, within Colorado, on the 2012 summer drought (July-September). The proposed index modification may convey drought information in a more holistic manner to decision makers. SDVI could aid in advancing the understanding of each component contribution through in situ and remote sensing data integration and in avoiding existing practices of broken linkages and fragmentation of the reported impacts. Thus, it is believed that the SDVI could serve as an additional tool to guide decisions and target mitigation and adaptation actions, allowing for a more integrated management approach.