Morales said on Monday that national and local governments are authorised to use state resources to attack the problem.
Much of the high-altitude capital already receives water for just three hours every three days because reservoirs serving the city are nearly dry.
Morales said Bolivians "have to be prepared for the worst".
The El Niño weather phenomenon in the Pacific has caused or exacerbated the drought, which has battered farms and cattle ranches.
The country's weather service says no rains are expected before early December.
On Sunday, authorities declared water rationing in La Paz to be a permanent measure as the drought in Bolivia worsens.
The three main dams that supply water to the city are almost dry.
[aljazeera.com]
21/11/16
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