Many drought indices were proposed to describe drought characteristics, but only few had considered environmental changes. In an attempt to incorporate climate change into meteorological drought index, a nonstationary Gamma distribution with climate indices as covariates was developed for fitting precipitation data and then used for calculating a Nonstationary Standardized Precipitation Index (NSPI) in this study. The performances of the NSPI were compared with those of the traditional Standardized Precipitation Index (SPI), showing that the NSPI capable of taking climate variations into account is more robust than the traditional SPI. Focusing on the Luanhe River basin, historical drought events were described and assessed based on the NSPI and traditional SPI. Moreover, drought characteristics, including drought frequency, peak, duration, and magnitude, were calculated by using the two indices. The results in this study indicated that NSPI using climate indices as covariates could capture drought characteristics in the Luanhe River basin, and this new drought index provides a new concept for constructing the drought index that can effectively adapt to a changing environment.