Aiming to enhance the analysis of water consumption and resulting consequences along the supply chain of products, the water accounting and vulnerability evaluation (WAVE) model is introduced. On the accounting level, atmospheric evaporation recycling within drainage basins is considered for the first time, which can reduce water consumption volumes by up to 32%. Rather than predicting impacts, WAVE analyzes the vulnerability of basins to freshwater depletion. Based on local blue water scarcity, the water depletion index (WDI) denotes the risk that water consumption can lead to depletion of freshwater resources. Water scarcity is determined by relating annual water consumption to availability in more than 11,000 basins. Additionally, WDI accounts for the presence of lakes and aquifers which have been neglected in water scarcity assessments so far. By setting WDI to the highest value in (semi)arid basins, absolute freshwater shortage is taken into account in addition to relative scarcity. This avoids mathematical artifacts of previous indicators which turn zero in deserts if consumption is zero. As illustrated in a case study of biofuels, WAVE can help to interpret volumetric water footprint figures and, thus, promotes a sustainable use of global freshwater resources.