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Abstract Droughts have a dominant three‐dimensional (3‐D) spatiotemporal structure typically spanning hundreds of kilometers and often lasting for months to years. Here, we introduced a novel framework to explore the 3‐D structure of the evolution of droughts based on network theory concepts. The proposed framework is applied to identify critical source regions responsible for large‐scale drought onsets during 1901–2014 for the North American continent using the Standardized Precipitation Evaporation Index (SPEI). We built a spatial network connecting the drought onset timings for the North American continent. Using a spatially weighted network partitioning algorithm, the whole continent is then classified into regional spatial drought networks (RSN), where droughts are more likely to propagate within these regional systems. Finally, a customized network metric was applied to identify locations (source regions) where the drought onsets further propagate to other areas within the regional spatial network. Our results indicated that the West coast, Texas coastal region, and Southeastern Arkansas as major source regions through which atmospheric drought propagates to Western, South Central, and Eastern North America. The formation of drought source regions are due to presence of high pressure ridges and anomalous wind patterns. Furthermore, our results indicate that the drought propagation from these source regions may be due to inadequate moisture transport. The proposed framework can help to develop an early warning detection system for droughts and other spatially extensive extreme events such as heatwaves and floods.