The Asian Development Bank and the Marshall Islands have signed a $US200,000 dollar grant agreement to help the country tackle the effects of a severe drought.
The grant is sourced from the Asia Pacific Disaster Response Fund.
ADB Pacific Department Director-General Xianbin Yao says the Marshalls have been in the grip of a severe drought since January and is expected to continue beyond July.
Mr Yao says the grant will allow the government to address people's immediate needs including clean water as well as food rations and health kits.
The country's entire population of about 50,000 has been affected by the drought and a state of disaster was declared by President Hilda Heine in March.
It is expected to take many months of normal rainfall to replenish ground water and to allow ground crops to fully recover.