----

----

|  | þ | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--|--------|---------------------------------------------------------------------------------------------------|

|  |  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--|--------|----------------------------------------------------------------------------------------------------|

| New      Jersey(State      of incorporation) | 22-1114430(IRS      employer identification no.) |
|----------------------------------------------|--------------------------------------------------|

| Large      accelerated filer  ̈ | Accelerated      filer þ | Non-accelerated      filer  ̈ | Smaller      reporting company  ̈ |
|-------------------------------------|-------------------------------|-----------------------------------|---------------------------------------|

----

----

----

DE

| PART      I.  | FINANCIAL      INFORMATION                                                                 | PAGE   |
|---------------|--------------------------------------------------------------------------------------------|--------|
|          |                                                                                       |   |
| Item      1.  | Financial      Statements:                                                                 |   |
|          |                                                                                       |   |
|          | Condensed Consolidated Statements ofIncome                                                 | 1      |
|          |                                                                                       |   |
|          | Condensed Consolidated Balance Sheets                                                      | 2      |
|          |                                                                                       |   |
|          | Condensed Consolidated Statements of Cash      Flows                                       | 3      |
|          |                                                                                       |   |
|          | Condensed Consolidated Statements of Capital Stock and      Long-term Debt                 | 4      |
|          |                                                                                       |   |
|          | Notes to Unaudited Condensed Consolidated Financial      Statements                        | 5      |
|          |                                                                                       |   |
| Item      2.  | Management's Discussion and Analysis of Financial Condition and      Results of Operations | 12     |
|          |                                                                                       |   |
| Item      3.  | Quantitative and Qualitative Disclosures of Market      Risk                               | 17     |
|          |                                                                                       |   |
| Item      4.  | Controls and Procedures                                                                    | 17     |
|          |                                                                                       |   |
| PART      II. | OTHER      INFORMATION                                                                     |   |
|          |                                                                                       |   |
| Item      1.  | Legal Proceedings                                                                          | 18     |
|          |                                                                                       |   |
| Item      1A. | Risk Factors                                                                               | 18     |
|          |                                                                                       |   |
| Item      2.  | Unregistered Sales of Equity Securities and Use of      Proceeds                           | 18     |
|          |                                                                                       |   |
| Item      3.  | Defaults upon Senior Securities                                                            | 18     |
|          |                                                                                       |   |
| Item      4.  | Submission of Matters to a Vote of Security      Holders                                   | 18     |
|          |                                                                                       |   |
| Item      5.  | Other Information                                                                          | 18     |
|          |                                                                                       |   |
| Item      6.  | Exhibits                                                                                   | 19     |
|          |                                                                                       |   |
| SIGNATURES    | 20                                                                                         |

----

Index

| MIDDLESEX WATER COMPANY                           |   |
|---------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME  |   |
| (Unaudited)                                       |   |
| (In      thousands except per share amounts)      |   |
|                                              |   |   |   |   |   |   |
|                                              |   | Three      Months Ended March 31, |   |
|                                              |   | 2008 |   |   | 2007 |   |
|                                              |   |   |   |   |   |   |
| Operating      Revenues                           |   | $ | 20,855 |   |   | $ | 18,988 |   |
|                                              |   |   |   |   |   |   |   |   |
| Operating      Expenses:                          |   |   |   |   |   |   |   |   |
| Operations                                        |   |   | 11,102 |   |   |   | 10,192 |   |
| Maintenance                                       |   |   | 996 |   |   |   | 978 |   |
| Depreciation                                      |   |   | 1,931 |   |   |   | 1,845 |   |
| Other      Taxes                                  |   |   | 2,479 |   |   |   | 2,251 |   |
|                                              |   |   |   |   |   |   |   |   |
| Total      Operating Expenses                     |   |   | 16,508 |   |   |   | 15,266 |   |
|                                              |   |   |   |   |   |   |   |   |
| Operating      Income                             |   |   | 4,347 |   |   |   | 3,722 |   |
|                                              |   |   |   |   |   |   |   |   |
| Other      Income (Expense):                      |   |   |   |   |   |   |   |   |
| Allowance      for Funds Used During Construction |   |   | 103 |   |   |   | 112 |   |
| Other      Income                                 |   |   | 241 |   |   |   | 226 |   |
| Other      Expense                                |   |   | (46 | ) |   |   | (5 | ) |
|                                              |   |   |   |   |   |   |   |   |
| Total      Other Income, net                      |   |   | 298 |   |   |   | 333 |   |
|                                              |   |   |   |   |   |   |   |   |
| Interest      Charges                             |   |   | 1,517 |   |   |   | 1,384 |   |
|                                              |   |   |   |   |   |   |   |   |
| Income      before Income Taxes                   |   |   | 3,128 |   |   |   | 2,671 |   |
|                                              |   |   |   |   |   |   |   |   |
| Income      Taxes                                 |   |   | 1,124 |   |   |   | 902 |   |
|                                              |   |   |   |   |   |   |   |   |
| Net      Income                                   |   |   | 2,004 |   |   |   | 1,769 |   |
|                                              |   |   |   |   |   |   |   |   |
| Preferred      Stock Dividend Requirements        |   |   | 62 |   |   |   | 62 |   |
|                                              |   |   |   |   |   |   |   |   |
| Earnings      Applicable to Common Stock          |   | $ | 1,942 |   |   | $ | 1,707 |   |
|                                              |   |   |   |   |   |   |   |   |
| Earnings      per share of Common Stock:          |   |   |   |   |   |   |   |   |
| Basic                                             |   | $ | 0.15 |   |   | $ | 0.13 |   |
| Diluted                                           |   | $ | 0.15 |   |   | $ | 0.13 |   |
|                                              |   |   |   |   |   |   |   |   |
| Average      Number of Common Shares Outstanding: |   |   |   |   |   |   |   |   |
| Basic                                             |   |   | 13,254 |   |   |   | 13,176 |   |
| Diluted                                           |   |   | 13,585 |   |   |   | 13,507 |   |
|                                              |   |   |   |   |   |   |   |   |
| Cash      Dividends Paid per Common Share         |   | $ | 0.1750 |   |   | $ | 0.1725 |   |

----

Index

| MIDDLESEX WATER COMPANY                              |                                              |
|------------------------------------------------------|---------------------------------------------------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS      |                                              |
| (Unaudited)                                          |                                              |
| (In      thousands)                                  |                                              |
|                                                 |                                              |   |   | March      31, |   |   | December      31, |   |
| ASSETS                                               |                                              |   | 2008 |   |   | 2007 |   |
| UTILITY      PLANT:                                  | Water      Production                             |   | $ | 99,220 |   |   | $ | 98,942 |   |
|                                                 |                                              |   | Transmission      and Distribution |   |   | 267,052 |   |   |   | 264,939 |   |
|                                                 |                                              |   | General |   |   | 26,022 |   |   |   | 24,874 |   |
|                                                 |                                              |   | Construction      Work in Progress |   |   | 13,080 |   |   |   | 9,833 |   |
|                                                 |                                              |   | TOTAL |   |   | 405,374 |   |   |   | 398,588 |   |
|                                                 |                                              |   | Less      Accumulated Depreciation |   |   | 66,363 |   |   |   | 64,736 |   |
|                                                 |                                              |   | UTILITY      PLANT - NET |   |   | 339,011 |   |   |   | 333,852 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| CURRENT      ASSETS:                                 | Cash      and Cash Equivalents                    |   |   | 1,462 |   |   |   | 2,029 |   |
|                                                 |                                              |   | Accounts      Receivable, net |   |   | 8,099 |   |   |   | 8,227 |   |
|                                                 |                                              |   | Unbilled      Revenues |   |   | 4,364 |   |   |   | 4,609 |   |
|                                                 |                                              |   | Materials      and Supplies (at average cost) |   |   | 1,273 |   |   |   | 1,205 |   |
|                                                 |                                              |   | Prepayments |   |   | 995 |   |   |   | 1,363 |   |
|                                                 |                                              |   | TOTAL      CURRENT ASSETS |   |   | 16,193 |   |   |   | 17,433 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| DEFERRED      CHARGES                                | Unamortized      Debt Expense                     |   |   | 2,862 |   |   |   | 2,884 |   |
| AND      OTHER ASSETS:                               | Preliminary      Survey and Investigation Charges |   |   | 5,964 |   |   |   | 5,283 |   |
|                                                 |                                              |   | Regulatory      Assets |   |   | 15,868 |   |   |   | 16,090 |   |
|                                                 |                                              |   | Operations      Contracts Fees Receivable |   |   | 4,216 |   |   |   | 4,184 |   |
|                                                 |                                              |   | Restricted      Cash |   |   | 6,199 |   |   |   | 6,418 |   |
|                                                 |                                              |   | Non-utility      Assets - Net |   |   | 6,149 |   |   |   | 6,183 |   |
|                                                 |                                              | Other |   |   | 347 |   |   |   | 348 |   |
|                                                 |                                              |   | TOTAL      DEFERRED CHARGES AND OTHER ASSETS |   |   | 41,605 |   |   |   | 41,390 |   |
|                                                 |                                              |   | TOTAL      ASSETS |   | $ | 396,809 |   |   | $ | 392,675 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| CAPITALIZATION      AND LIABILITIES                  |                                              |   |   |   |   |   |   |   |
| CAPITALIZATION:                                      | Common      Stock, No Par Value                   |   | $ | 106,025 |   |   | $ | 105,668 |   |
|                                                 |                                              |   | Retained      Earnings |   |   | 27,064 |   |   |   | 27,441 |   |
|                                                 |                                              |   | Accumulated      Other Comprehensive Income, net of tax |   |   | 57 |   |   |   | 69 |   |
|                                                 |                                              |   | TOTAL      COMMON EQUITY |   |   | 133,146 |   |   |   | 133,178 |   |
|                                                 |                                              |   | Preferred      Stock |   |   | 3,958 |   |   |   | 3,958 |   |
|                                                 |                                              |   | Long-term      Debt |   |   | 131,423 |   |   |   | 131,615 |   |
|                                                 |                                              |   | TOTAL      CAPITALIZATION |   |   | 268,527 |   |   |   | 268,751 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| CURRENT                                              | Current      Portion of Long-term Debt            |   |   | 2,768 |   |   |   | 2,723 |   |
| LIABILITIES:                                         | Notes      Payable                                |   |   | 9,000 |   |   |   | 6,250 |   |
|                                                 |                                              |   | Accounts      Payable |   |   | 4,535 |   |   |   | 6,477 |   |
|                                                 |                                              |   | Accrued      Taxes |   |   | 9,697 |   |   |   | 7,611 |   |
|                                                 |                                              |   | Accrued      Interest |   |   | 975 |   |   |   | 1,916 |   |
|                                                 |                                              | Unearned      Revenues and Advanced Service Fees |   |   | 758 |   |   |   | 758 |   |
|                                                 |                                              |   | Other |   |   | 1,446 |   |   |   | 1,274 |   |
|                                                 |                                              |   | TOTAL      CURRENT LIABILITIES |   |   | 29,179 |   |   |   | 27,009 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENT LIABILITIES (Note 7) |                                              |   |   |   |   |   |   |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| DEFERRED      CREDITS                                | Customer      Advances for Construction           |   |   | 21,796 |   |   |   | 21,758 |   |
| AND      OTHER LIABILITIES:                          | Accumulated      Deferred Investment Tax Credits  |   |   | 1,441 |   |   |   | 1,461 |   |
|                                                 |                                              |   | Accumulated      Deferred Income Taxes |   |   | 18,096 |   |   |   | 17,940 |   |
|                                                 |                                              |   | Employee      Benefit Plans |   |   | 13,871 |   |   |   | 13,333 |   |
|                                                 |                                              |   | Regulatory      Liability - Cost of Utility Plant Removal |   |   | 5,876 |   |   |   | 5,726 |   |
|                                                 |                                              |   | Other |   |   | 1,337 |   |   |   | 459 |   |
|                                                 |                                              |   | TOTAL      DEFERRED CREDITS AND OTHER LIABILITIES |   |   | 62,417 |   |   |   | 60,677 |   |
|                                                 |                                              |   |   |   |   |   |   |   |   |   |   |
| CONTRIBUTIONS      IN AID OF CONSTRUCTION            |                                              |   | 36,686 |   |   |   | 36,238 |   |
|                                                 |                                              |   | TOTAL      CAPITALIZATION AND LIABILITIES |   | $ | 396,809 |   |   | $ | 392,675 |   |

----

Index

| MIDDLESEX WATER COMPANY                                                              |   |
|--------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                 |   |
| (Unaudited)                                                                          |   |
| (In      thousands)                                                                  |   |
|                                                                                 |   |   |   |   |   |   |
|                                                                                 |   | Three      Months Ended March 31, |   |
|                                                                                 |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                           |   |   |   |   |   |   |
| Net      Income                                                                      |   | $ | 2,004 |   |   | $ | 1,769 |   |
| Adjustments      to Reconcile Net Income to                                          |   |   |   |   |   |   |   |   |
| Net      Cash Provided by Operating Activities:                                      |   |   |   |   |   |   |   |   |
| Depreciation      and Amortization                                                   |   |   | 2,088 |   |   |   | 1,995 |   |
| Provision      for Deferred Income Taxes and ITC                                     |   |   | 123 |   |   |   | 128 |   |
| Equity      Portion of AFUDC                                                         |   |   | (54 | ) |   |   | (54 | ) |
| Cash      Surrender Value of Life Insurance                                          |   |   | 172 |   |   |   | (56 | ) |
| Changes      in Assets and Liabilities:                                              |   |   |   |   |   |   |   |   |
| Accounts      Receivable                                                             |   |   | 128 |   |   |   | (209 | ) |
| Unbilled      Revenues                                                               |   |   | 245 |   |   |   | (65 | ) |
| Materials      & Supplies                                                        |   |   | (68 | ) |   |   | (119 | ) |
| Prepayments                                                                          |   |   | 368 |   |   |   | 319 |   |
| Other      Assets                                                                    |   |   | (213 | ) |   |   | (210 | ) |
| Accounts      Payable                                                                |   |   | (1,006 | ) |   |   | (468 | ) |
| Accrued      Taxes                                                                   |   |   | 2,092 |   |   |   | 2,369 |   |
| Accrued      Interest                                                                |   |   | (941 | ) |   |   | (984 | ) |
| Employee      Benefit Plans                                                          |   |   | 678 |   |   |   | 706 |   |
| Unearned      Revenue & Advanced Service Fees                                    |   |   | - |   |   |   | 8 |   |
| Other      Liabilities                                                               |   |   | 115 |   |   |   | 267 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES                                       |   |   | 5,731 |   |   |   | 5,396 |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                           |   |   |   |   |   |   |   |   |
| Utility      Plant Expenditures, Including AFUDC of $49 in 2008 and $58 in      2007 |   |   | (6,327 | ) |   |   | (3,620 | ) |
| Restricted      Cash                                                                 |   |   | 219 |   |   |   | 599 |   |
| Preliminary      Survey & Investigation Charges                                  |   |   | (681 | ) |   |   | (663 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |
| NET      CASH USED IN INVESTING ACTIVITIES                                           |   |   | (6,789 | ) |   |   | (3,684 | ) |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                           |   |   |   |   |   |   |   |   |
| Redemption      of Long-term Debt                                                    |   |   | (490 | ) |   |   | (425 | ) |
| Proceeds      from Issuance of Long-term Debt                                        |   |   | 343 |   |   |   | 41 |   |
| Net      Short-term Bank Borrowings                                                  |   |   | 2,750 |   |   |   | - |   |
| Deferred      Debt Issuance Expenses                                                 |   |   | (28 | ) |   |   | (30 | ) |
| Common      Stock Issuance Expense                                                   |   |   | - |   |   |   | (15 | ) |
| Restricted      Cash                                                                 |   |   | - |   |   |   | (23 | ) |
| Proceeds      from Issuance of Common Stock                                          |   |   | 357 |   |   |   | 349 |   |
| Payment      of Common Dividends                                                     |   |   | (2,319 | ) |   |   | (2,272 | ) |
| Payment      of Preferred Dividends                                                  |   |   | (62 | ) |   |   | (62 | ) |
| Construction      Advances and Contributions-Net                                     |   |   | (60 | ) |   |   | 137 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                             |   |   | 491 |   |   |   | (2,300 | ) |
| NET      CHANGES IN CASH AND CASH EQUIVALENTS                                        |   |   | (567 | ) |   |   | (588 | ) |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                |   |   | 2,029 |   |   |   | 5,826 |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                      |   | $ | 1,462 |   |   | $ | 5,238 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NON-CASH ACTIVITY:                                   |   |   |   |   |   |   |   |   |
| Utility      Plant received as Construction Advances and Contributions               |   | $ | 546 |   |   | $ | 1,610 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOWS INFORMATION:                              |   |   |   |   |   |   |   |   |
| Cash      Paid During the Year for:                                                  |   |   |   |   |   |   |   |   |
| Interest                                                                             |   | $ | 2,546 |   |   | $ | 2,461 |   |
| Interest      Capitalized                                                            |   | $ | (49 | ) |   | $ | (58 | ) |
| Income      Taxes                                                                    |   | $ | 701 |   |   | $ | 15 |   |

----

Index

| MIDDLESEX WATER COMPANY                                                                                                                                                                                                                                                                     |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CAPITAL STOCK                                                                                                                                                                                                                                     |   |
| AND      LONG-TERM DEBT                                                                                                                                                                                                                                                                     |   |
| (Unaudited)                                                                                                                                                                                                                                                                                 |   |
| (In      thousands)                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                        |   | March      31, |   |   | December      31, |   |
|                                                                                                                                                                                                                                                                                        |   | 2008 |   |   | 2007 |   |
| Common      Stock, No Par Value:                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| Shares      Authorized            -   40,000                                                                                                                                                                                                        |   |   |   |   |   |   |
| Shares      Outstanding     -   2008 -      13,262                                                                                                                                                                                                            |   | $ | 106,025 |   |   | $ | 105,668 |   |
|                                                   2007 - 13,246 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Retained      Earnings                                                                                                                                                                                                                                                                      |   |   | 27,064 |   |   |   | 27,441 |   |
| Accumulated      Other Comprehensive Income, net of tax                                                                                                                                                                                                                                     |   |   | 57 |   |   |   | 69 |   |
| TOTAL      COMMON EQUITY                                                                                                                                                                                                                                                                    |   | $ | 133,146 |   |   | $ | 133,178 |   |
|                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Cumulative      Preference Stock, No Par Value:                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Shares      Authorized - 100                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Shares      Outstanding - None                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Cumulative      Preferred Stock, No Par Value:                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Shares      Authorized - 139                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Shares      Outstanding - 37                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Convertible:                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Shares      Outstanding, $7.00 Series - 14                                                                                                                                                                                                                                                  |   |   | 1,457 |   |   |   | 1,457 |   |
| Shares      Outstanding, $8.00 Series - 12                                                                                                                                                                                                                                                  |   |   | 1,399 |   |   |   | 1,399 |   |
| Nonredeemable:                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Shares      Outstanding, $7.00 Series -   1                                                                                                                                                                                                                                  |   |   | 102 |   |   |   | 102 |   |
| Shares      Outstanding, $4.75 Series - 10                                                                                                                                                                                                                                                  |   |   | 1,000 |   |   |   | 1,000 |   |
| TOTAL      PREFERRED STOCK                                                                                                                                                                                                                                                                  |   | $ | 3,958 |   |   | $ | 3,958 |   |
|                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Long-term      Debt:                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| 8.05%,      Amortizing Secured Note, due December 20, 2021                                                                                                                                                                                                                                  |   | $ | 2,775 |   |   | $ | 2,800 |   |
| 6.25%,      Amortizing Secured Note, due May 22, 2028                                                                                                                                                                                                                                       |   |   | 8,470 |   |   |   | 8,575 |   |
| 6.44%,      Amortizing Secured Note, due August 25, 2030                                                                                                                                                                                                                                    |   |   | 6,277 |   |   |   | 6,347 |   |
| 6.46%,      Amortizing Secured Note, due September 19, 2031                                                                                                                                                                                                                                 |   |   | 6,557 |   |   |   | 6,627 |   |
| 4.22%,      State Revolving Trust Note, due December 31, 2022                                                                                                                                                                                                                               |   |   | 691 |   |   |   | 691 |   |
| 3.30%      to 3.60%, State Revolving Trust Note, due May 1, 2025                                                                                                                                                                                                                            |   |   | 3,358 |   |   |   | 3,168 |   |
| 3.49%,      State Revolving Trust Note, due January 25, 2027                                                                                                                                                                                                                                |   |   | 743 |   |   |   | 603 |   |
| 4.03%,      State Revolving Trust Note, due December 1, 2026                                                                                                                                                                                                                                |   |   | 974 |   |   |   | 974 |   |
| 4.00%      to 5.00%, State Revolving Trust Bond, due September 1,2021                                                                                                                                                                                                                       |   |   | 695 |   |   |   | 695 |   |
| 0.00%,      State Revolving Fund Bond, due September 1, 2021                                                                                                                                                                                                                                |   |   | 528 |   |   |   | 538 |   |
| First      Mortgage Bonds:                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| 5.20%,      Series S, due October 1, 2022                                                                                                                                                                                                                                                   |   |   | 12,000 |   |   |   | 12,000 |   |
| 5.25%,      Series T, due October 1, 2023                                                                                                                                                                                                                                                   |   |   | 6,500 |   |   |   | 6,500 |   |
| 6.40%,      Series U, due February 1, 2009                                                                                                                                                                                                                                                  |   |   | 15,000 |   |   |   | 15,000 |   |
| 5.25%,      Series V, due February 1, 2029                                                                                                                                                                                                                                                  |   |   | 10,000 |   |   |   | 10,000 |   |
| 5.35%,      Series W, due February 1, 2038                                                                                                                                                                                                                                                  |   |   | 23,000 |   |   |   | 23,000 |   |
| 0.00%,      Series X, due September 1, 2018                                                                                                                                                                                                                                                 |   |   | 581 |   |   |   | 591 |   |
| 4.25%      to 4.63%, Series Y, due September 1, 2018                                                                                                                                                                                                                                        |   |   | 765 |   |   |   | 765 |   |
| 0.00%,      Series Z, due September 1, 2019                                                                                                                                                                                                                                                 |   |   | 1,317 |   |   |   | 1,342 |   |
| 5.25%      to 5.75%, Series AA, due September 1, 2019                                                                                                                                                                                                                                       |   |   | 1,785 |   |   |   | 1,785 |   |
| 0.00%,      Series BB, due September 1, 2021                                                                                                                                                                                                                                                |   |   | 1,656 |   |   |   | 1,685 |   |
| 4.00%      to 5.00%, Series CC, due September 1, 2021                                                                                                                                                                                                                                       |   |   | 1,995 |   |   |   | 1,995 |   |
| 5.10%,      Series DD, due January 1, 2032                                                                                                                                                                                                                                                  |   |   | 6,000 |   |   |   | 6,000 |   |
| 0.00%,      Series EE, due September 1, 2024                                                                                                                                                                                                                                                |   |   | 7,004 |   |   |   | 7,112 |   |
| 3.00%      to 5.50%, Series FF, due September 1, 2024                                                                                                                                                                                                                                       |   |   | 8,385 |   |   |   | 8,385 |   |
| 0.00%,      Series GG, due September 1, 2026                                                                                                                                                                                                                                                |   |   | 1,685 |   |   |   | 1,710 |   |
| 4.00%      to 5.00%, Series HH, due August 1, 2026                                                                                                                                                                                                                                          |   |   | 1,950 |   |   |   | 1,950 |   |
| 0.00%,      Series II, due August 1, 2027                                                                                                                                                                                                                                                   |   |   | 1,750 |   |   |   | 1,750 |   |
| 3.40%      to 5.00%, Series JJ, due August 1, 2027                                                                                                                                                                                                                                          |   |   | 1,750 |   |   |   | 1,750 |   |
| SUBTOTAL      LONG-TERM DEBT                                                                                                                                                                                                                                                                |   |   | 134,191 |   |   |   | 134,338 |   |
| Less:      Current Portion of Long-term Debt                                                                                                                                                                                                                                                |   |   | (2,768 | ) |   |   | (2,723 | ) |
| TOTAL      LONG-TERM DEBT                                                                                                                                                                                                                                                                   |   | $ | 131,423 |   |   | $ | 131,615 |   |

----

Index

DL

----

Index

|                                                         |   | (In      Thousands Except per Share Amounts)Three      Months Ended March 31, |   |
|--------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|
| Basic:                                                       |   | 2008                                                                          |   |   | Shares |   |   | 2007 |   |   | Shares |   |
| Net      Income                                              |   | $                                                                             | 2,004  |   |   |   | 13,254 |   |   | $ | 1,769 |   |   |   | 13,176 |   |
| Preferred      Dividend                                      |   |                                                                          | (62    | ) |   |   |   |   |   |  (62 | ) |   |   |   |
| Earnings      Applicable to Common Stock                     |   | $                                                                             | 1,942  |   |   |   | 13,254 |   |   | $ | 1,707 |   |   |   | 13,176 |   |
|                                                         |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      EPS                                               |   | $                                                                             | 0.15   |   |   |   |   |   |   | $ | 0.13 |   |   |   |   |   |
|                                                         |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                     |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Applicable to Common Stock                     |   | $                                                                             | 1,942  |   |   |   | 13,254 |   |   | $ | 1,707 |   |   |   | 13,176 |   |
| $7.00      Series Preferred Dividend                         |   |                                                                          | 24     |   |   |   | 167 |   |   |   | 24 |   |   |   | 167 |   |
| $8.00      Series Preferred Dividend                         |   |                                                                          | 24     |   |   |   | 164 |   |   |   |  24 |   |   |   | 164 |   |
| Adjusted      Earnings Applicable to  Common Stock |   | $                                                                             | 1,990  |   |   |   | 13,585 |   |   | $ | 1,755 |   |   |   | 13,507 |   |
|                                                         |   |                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      EPS                                             |   | $                                                                             | 0.15   |   |   |   |   |   |   | $ | 0.13 |   |   |   |   |   |

----

Index

|                               |   | (In      Thousands)Three      Months EndedMarch      31, |   |
|------------------------------------|--------|----------------------------------------------------------|--------|
| Operations      by Segments:       |   | 2008                                                     |   |   | 2007 |   |
| Revenues:                          |   |                                                     |   |   |   |   |
| Regulated                          |   | $                                                        | 18,422 |   |   | $ | 16,688 |   |
| Non      – Regulated         |   |                                                     | 2,484  |   |   |   | 2,345 |   |
| Inter-segment      Elimination     |   |                                                     | (51    | ) |   |   | (45 | ) |
| Consolidated      Revenues         |   | $                                                        | 20,855 |   |   | $ | 18,988 |   |
|  Operating      Income:       |   |                                                     |   |   |   |   |   |   |
| Regulated                          |   | $                                                        | 3,891  |   |   | $ | 3,466 |   |
| Non      – Regulated         |   |                                                     | 456    |   |   |   | 256 |   |
| Consolidated      Operating Income |   | $                                                        | 4,347  |   |   | $ | 3,722 |   |
|                               |   |                                                     |   |   |   |   |   |   |
| Net      Income:                   |   |                                                     |   |   |   |   |   |   |
| Regulated                          |   | $                                                        | 1,701  |   |   | $ | 1,636 |   |
| Non      – Regulated         |   |                                                     | 303    |   |   |   | 133 |   |
| Consolidated      Net Income       |   | $                                                        | 2,004  |   |   | $ | 1,769 |   |
|                               |   |                                                     |   |   |   |   |   |   |
| Capital      Expenditures:         |   |                                                     |   |   |   |   |   |   |
| Regulated                          |   | $                                                        | 6,311  |   |   | $ | 3,525 |   |
| Non      – Regulated         |   |                                                     | 16     |   |   |   | 95 |   |
| Total      Capital Expenditures    |   | $                                                        | 6,327  |   |   | $ | 3,620 |   |

|                           |   | As      ofMarch      31,2008 |    |   | As      ofDecember      31,2007 |   |
|--------------------------------|--------|------------------------------|---------|--------|---------------------------------|--------|
| Assets:                        |   |                         |    |   |                            |   |
| Regulated                      |   | $                            | 391,808 |   |                            | $      | 387,931 |   |
| Non      – Regulated     |   |                         | 8,717   |   |                            |   | 8,157 |   |
| Inter-segment      Elimination |   |                         | (3,716  | )      |                            |   | (3,413 | ) |
| Consolidated      Assets       |   | $                            | 396,809 |   |                            | $      | 392,675 |   |

----

Index

----

Index

|                                                                                                                       |   | (In      Thousands)Three      Months EndedMarch      31, |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                                                                                       |   | 2008                                                     |   |   | 2007 |   |
| Purchased      Water                  |   |                                                     |   |   |   |   |
| Treated                                                                                                                    |   | $                                                        | 522    |   |   | $ | 460 |   |
| Untreated                                                                                                                  |   |                                                     | 605    |   |   |   | 598 |   |
| Total      Costs                                                                                                           |   | $                                                        | 1,127  |   |   | $ | 1,058 |   |

----

Index

|                                                 |   | (In      Thousands)               |   |
|------------------------------------------------------|--------|-----------------------------------|--------|
|                                                 |   | Pension Benefits                  |   |   | Other Benefits |   |
|                                                 |   | Three      Months Ended March 31, |   |
|                                                 |   | 2008                              |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                 |   |                              |   |   |   |   |   |   |   |   |   |   |
| Service      Cost                                    |   | $                                 | 324    |   |   | $ | 320 |   |   | $ | 205 |   |   | $ | 185 |   |
| Interest      Cost                                   |   |                              | 452    |   |   |   | 453 |   |   |   | 224 |   |   |   | 212 |   |
| Expected      Return on Assets                       |   |                              | (455   | ) |   |   | (456 | ) |   |   | (120 | ) |   |   | (135 | ) |
| Amortization      of Unrecognized Losses             |   |                              | 19     |   |   |   | 66 |   |   |   | 84 |   |   |   | 68 |   |
| Amortization      of Unrecognized Prior Service Cost |   |                              | 2      |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Amortization      of Transition Obligation           |   |                              | -      |   |   |   | - |   |   |   | 34 |   |   |   | 34 |   |
| Net      Periodic Benefit Cost                       |   | $                                 | 342    |   |   | $ | 385 |   |   | $ | 427 |   |   | $ | 364 |   |

----

Index

|                                                          |   | (In      Thousands)Three      Months EndedMarch      31, |   |
|---------------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                          |   | 2008                                                     |   |   | 2007 |   |
|                                                          |   |                                                     |   |   |   |   |
| Net      Income                                               |   | $                                                        | 2,004  |   |   | $ | 1,769 |   |
|                                                          |   |                                                     |   |   |   |   |   |   |
| Other      Comprehensive Income (Loss):                       |   |                                                     |   |   |   |   |   |   |
| Change      in Value of Equity Investments, Net of Income Tax |   |                                                     | (12    | ) |   |   | 8 |   |
| Other      Comprehensive Income                               |   |                                                     | (12    | ) |   |   | 8 |   |
|                                                          |   |                                                     |   |   |   |   |   |   |
| Comprehensive      Income                                     |   | $                                                        | 1,992  |   |   | $ | 1,777 |   |

----

Index

ageme

|   | - | statements      as to expected financial condition, performance, prospects and earnings of      the Company; |
|--------|---|--------------------------------------------------------------------------------------------------------------|

|   | - | statements      regarding strategic plans forgrowth; |
|--------|---|------------------------------------------------------|

|   | - | statements      regarding the amount and timing of rate increases and other regulatory      matters; |
|--------|---|------------------------------------------------------------------------------------------------------|

|   | - | statements      regarding expectations and events concerning capital      expenditures; |
|--------|---|-----------------------------------------------------------------------------------------|

|   | - | statements      as to the Company’s expected liquidity needs during fiscal 2008 and beyond      and statements as to the sources and availability of funds to meet its      liquidity needs; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to expected rates, consumption volumes, service fees, revenues,      margins, expenses and operatingresults; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to the Company’s compliance with environmental laws and regulations and      estimations of the materiality of any related  costs; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to the safety and reliability of the Company’s equipment, facilities      and operations; |
|--------|---|--------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to financial projections; |
|--------|---|----------------------------------------------|

|   | - | statements      as to the ability of the Company to pay  dividends; |
|--------|---|---------------------------------------------------------------------|

|   | - | statements      as to the Company’s plans to renew municipal franchises and consents in      the territories it serves; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------|

|   | - | expectations      as to the amount of cash contributions to fund the Company’s retirement      benefit plans, including statements as to anticipated discount rates and      rates of return on plan assets; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to trends; and |
|--------|---|-----------------------------------|

|   | - | statements      regarding the availability and quality of our water  supply. |
|--------|---|------------------------------------------------------------------------------|

|   | - | the      effects of general economicconditions; |
|--------|---|-------------------------------------------------|

|   | - | increases      in competition in the markets served by the  Company; |
|--------|---|----------------------------------------------------------------------|

|   | - | the      ability of the Company to control operating expenses and to achieve      efficiencies in its operations; |
|--------|---|-------------------------------------------------------------------------------------------------------------------|

|   | - | the      availability of adequate supplies ofwater; |
|--------|---|-----------------------------------------------------|

|   | - | actions      taken by government regulators, including decisions on base rate increase      requests; |
|--------|---|-------------------------------------------------------------------------------------------------------|

|   | - | new      or additional water qualitystandards; |
|--------|---|------------------------------------------------|

|   | - | weather      variations and other naturalphenomena; |
|--------|---|-----------------------------------------------------|

|   | - | the      existence of attractive acquisition candidates and the risks involved in      pursuing those acquisitions; |
|--------|---|---------------------------------------------------------------------------------------------------------------------|

|   | - | acts      of war or terrorism; |
|--------|---|--------------------------------|

|   | - | significant      changes in the housing starts inDelaware; |
|--------|---|------------------------------------------------------------|

|   | - | the      availability and cost of capital resources;and |
|--------|---|---------------------------------------------------------|

|   | - | other      factors discussed elsewhere in this quarterly  report. |
|--------|---|-------------------------------------------------------------------|

----

Index

----

Index

|                                     |   | (In      Thousands)Three Months Ended March31, |   |
|------------------------------------------|--------|------------------------------------------------|--------|
|                                     |   | 2008                                           |   |   | 2007 |   |
|                                     |   | Regulated                                      |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                                 |   | $                                              | 18,422 |   |   | $ | 2,433 |   |   | $ | 20,855 |   |   | $ | 16,688 |   |   | $ | 2,300 |   |   | $ | 18,988 |   |
| Operations      and maintenance expenses |   |                                           | 10,208 |   |   |   | 1,890 |   |   |   | 12,098 |   |   |   | 9,216 |   |   |   | 1,954 |   |   |   | 11,170 |   |
| Depreciation      expense                |   |                                           | 1,902  |   |   |   | 29 |   |   |   | 1,931 |   |   |   | 1,814 |   |   |   | 31 |   |   |   | 1,845 |   |
| Other      taxes                         |   |                                           | 2,421  |   |   |   | 58 |   |   |   | 2,479 |   |   |   | 2,192 |   |   |   | 59 |   |   |   | 2,251 |   |
| Operating      income                    |   |                                           | 3,891  |   |   |   | 456 |   |   |   | 4,347 |   |   |   | 3,466 |   |   |   | 256 |   |   |   | 3,722 |   |
|                                     |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income, net                   |   |                                           | 176    |   |   |   | 122 |   |   |   | 298 |   |   |   | 333 |   |   |   | - |   |   |   | 333 |   |
| Interest      expense                    |   |                                           | 1,446  |   |   |   | 71 |   |   |   | 1,517 |   |   |   | 1,359 |   |   |   | 25 |   |   |   | 1,384 |   |
| Income      taxes                        |   |                                           | 920    |   |   |   | 204 |   |   |   | 1,124 |   |   |   | 804 |   |   |   | 98 |   |   |   | 902 |   |
| Net      income                          |   | $                                              | 1,701  |   |   | $ | 303 |   |   | $ | 2,004 |   |   | $ | 1,636 |   |   | $ | 133 |   |   | $ | 1,769 |   |

----

Index

----

Index

----

Index

| Item      3. | Quantitative and Qualitative Disclosures of Market      Risk |
|--------------|--------------------------------------------------------------|

| Item      4. | Controls and Procedures |
|--------------|-------------------------|

----

Index

| Item      1. | Legal      Proceedings |
|--------------|------------------------|

| Item      1A. | Risk      Factors |
|---------------|-------------------|

| Item      2. | Unregistered Sales of Equity Securities and Use of      Proceeds |
|--------------|------------------------------------------------------------------|

| Item      3. | Defaults Upon SeniorSecurities |
|--------------|--------------------------------|

| Item      4. | Submission of Matters to a Vote of Security    Holders |
|--------------|--------------------------------------------------------|

| Item      5. | Other      Information |
|--------------|------------------------|

----

Index

| Item      6. | Exhibits |
|--------------|----------|

| 31 | Section      302 Certification by Dennis W. Doll pursuant to Rules 13a-14 and 15d-14 of      the Securities Exchange Act of1934. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Section      302 Certification by A. Bruce O’Connor pursuant to Rules 13a-14 and 15d-14      of the Securities Exchange Act of1934. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 32 | Section      906 Certification by Dennis W. Doll pursuant to 18 U.S.C. §1350, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Section      906 Certification by A. Bruce O’Connor pursuant to 18 U.S.C. §1350, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

NAT

|   | MIDDLESEX      WATER COMPANY |                             |
|--------|------------------------------|----------------------------------|
|   |                         |                             |   |
|   | By:                          | /s/ A. Bruce      O’Connor |   |
|   |                         | A.      Bruce O’Connor     |   |
|   |                         | Vice      President and          |   |
|   |                         | Chief      Financial Officer     |   |

----