Dolly To Dump Rain On Desert SouthWest

State College, PA (AHN) - The effects of Tropical Storm Dolly continue to be felt in Texas and Mexico as forecasters expect a foot of rain to be dumped on parts of Texas and Mexico.

First damage estimates have risen to $1.2 billion as the residents assess the damage left by Dolly, which quickly lost strength after touching shore as a Category 2 hurricane.

Texas Govenor Rick Perry Wednesday declared 15 counties in the state a disaster, sending emergency response teams as up to 100,000 Texans Wednesday were without power.

In Matamoros, Mexico, nearly half of the city residents were without water after the storm slammed into water treatment facilities.

Dolly, which came ashore with 100 mph winds Wednesday was reduced to 50 mph gusts by Thursday morning. Around noon Eastern, AccuWeather forecasters said Dolly had weakened with 4 inches of rain predicted for New Mexico and Arizona.