The United States repeatedly experiences floods along the Midwest's large rivers and droughts in the arid Western States that cause traumatic environmental disasters with huge economic impact. These problems can be alleviated with an integrated approach and comprehensive solution. Withdrawing flood water from the Mississippi River and its tributaries will mitigate the damage of flooding and provide a new resource of fresh water to the Western States. The existence of a trend of increasing heavy precipitation and flooding on the Midwest's Rivers is supported by a growing body of scientific literature that documents the effects of climate change since 1993. Flooding in Iowa, North Dakota, Tennessee, Arkansas and along the Mississippi River from 1993 to 2010 are prime examples. The Colorado River Basin and the western states are experiencing a protracted multi-year drought. Fresh water can be pumped via pipelines and aqueducts from areas of overabundance/flood to areas of drought or high demand. Calculations document 10 to 60 million acre feet (maf) of fresh water per flood event can be captured from the Midwest's Rivers and pumped via pipelines to the Colorado River and introduced upstream of Lake Powell, Utah, also to destinations near Denver, Colorado, and used in areas along the new water transportation routes. Water users of the Colorado River include the cities in southern Nevada, southern California, northern Arizona, Colorado, Utah, Indian Tribes, and Mexico. The proposed starting, end points, and routes of the water transportation routes are documented, including information on right-of-ways necessary for state and federal permits. The National Smart Water Grid™ (NSWG) could create a million new jobs for construction, operation, and maintenance and save billions per year in drought and flood damage reparations tax dollars. The socio-economic benefits include decreased flooding in the Midwest; increased agriculture, and recreation and tourism; improved national security, transportation, and fishery and wildlife habitats; decreased salinity in Colorado River water crossing the US-Mexico border; and decreased eutrophication/hypoxia (excessive plant growth and decay) in the Gulf of Mexico to name a few. The sale of captured flood water could pay for the National Smart Water Grid™. The cost benefit analysis indicates that the NSWG should be net beneficial. A detailed feasibility studies for each pipeline/aqueduct transportation route is warranted.The Second Edition expands flooding and recent climate change data, emphasis on cost/benefit analysis, details on the engineered features such as pipes, pumps, aqueducts, and patent pending modified levees.Water is a $400 billion industry, the third largest behind oil and electricity. The U.S. has a Strategic Petroleum Reserve and needs a comparable Strategic Water Reserve. The National Smart Water Grid could become a Strategic Water Reserve and augment the National Energy Grid. The availability and sustainability of freshwater is the most important issue facing humanity in this century.