|        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.) |
|----------------------------------------------|--------------------------------------------------|

----

D

| PART I.    | FINANCIAL INFORMATION                                                                           | PAGE   |
|------------|-------------------------------------------------------------------------------------------------|--------|
|       |                                                                                            |   |
| Item 1.    | Financial Statements:                                                                           |   |
|       |                                                                                            |   |
|       | Condensed Consolidated Statements of Income                                                     | 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                                    | 18     |
|       |                                                                                            |   |
| Item 4.    | Controls and Procedures                                                                         | 18     |
|       |                                                                                            |   |
| PART II.   | OTHER INFORMATION                                                                               |   |
|       |                                                                                            |   |
| Item 1.    | Legal Proceedings                                                                               | 20     |
|       |                                                                                            |   |
| Item 1A.   | Risk Factors                                                                                    | 20     |
|       |                                                                                            |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of      Proceeds                                | 20     |
|       |                                                                                            |   |
| Item 3.    | Defaults upon Senior Securities                                                                 | 20     |
|       |                                                                                            |   |
| Item 4.    | Removed and Reserved                                                                            | 20     |
|       |                                                                                            |   |
| Item 5.    | Other Information                                                                               | 20     |
|       |                                                                                            |   |
| Item 6.    | Exhibits                                                                                        | 20     |
|       |                                                                                            |   |
| SIGNATURES | 21                                                                                              |

----

Index

|  MIDDLESEX WATER COMPANY                    |
|--------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited)                                      |
| (In      thousands except per share amounts)     |

|                                                          |   |                              |   |   |   |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|--------|--------|--------|
|                                                          |   | Three      Months Ended March 31, |   |
|                                                          |   | 2010                              |   |   | 2009   |   |
|                                                          |   |                              |   |   |   |   |
| Operating      Revenues                                       |   | $                                 | 21,645 |   |   | $      | 20,583 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Operating      Expenses:                                      |   |                              |   |   |   |   |   |   |
| Operations                                                    |   |                              | 11,915 |   |   |   | 11,855 |   |
| Maintenance                                                   |   |                              | 1,679  |   |   |   | 1,188 |   |
| Depreciation                                                  |   |                              | 2,204  |   |   |   | 2,086 |   |
| Other      Taxes                                              |   |                              | 2,559  |   |   |   | 2,452 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Total      Operating Expenses                                 |   |                              | 18,357 |   |   |   | 17,581 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Operating      Income                                         |   |                              | 3,288  |   |   |   | 3,002 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Other      Income (Expense):                                  |   |                              |   |   |   |   |   |   |
| Allowance      for Funds Used During Construction             |   |                              | 294    |   |   |   | 241 |   |
| Other      Income                                             |   |                              | 170    |   |   |   | 178 |   |
| Other      Expense                                            |   |                              | (17    | )      |   |   | (10 | ) |
|                                                          |   |                              |   |   |   |   |   |   |
| Total      Other Income, net                                  |   |                              | 447    |   |   |   | 409 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Interest      Charges                                         |   |                              | 1,424  |   |   |   | 1,392 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Income      before Income Taxes                               |   |                              | 2,311  |   |   |   | 2,019 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Income      Taxes                                             |   |                              | 751    |   |   |   | 658 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Net      Income                                               |   |                              | 1,560  |   |   |   | 1,361 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Preferred      Stock Dividend Requirements                    |   |                              | 52     |   |   |   | 52 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Earnings      Applicable to Common Stock                      |   | $                                 | 1,508  |   |   | $      | 1,309 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Earnings      per share of Common Stock:                      |   |                              |   |   |   |   |   |   |
| Basic                                                         |   | $                                 | 0.11   |   |   | $      | 0.10 |   |
| Diluted                                                       |   | $                                 | 0.11   |   |   | $      | 0.10 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Average      Number of Common Shares Outstanding:             |   |                              |   |   |   |   |   |   |
| Basic                                                         |   |                              | 13,538 |   |   |   | 13,413 |   |
| Diluted                                                       |   |                              | 13,801 |   |   |   | 13,676 |   |
|                                                          |   |                              |   |   |   |   |   |   |
| Cash      Dividends Paid per Common Share                     |   | $                                 | 0.1800 |   |   | $      | 0.1775 |   |
|                                                          |   |                              |   |   |   |   |   |   |
|                                                          |   |                              |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements |   |                              |   |   |   |

----

Index

| MIDDLESEX      WATER COMPANY                          |
|-------------------------------------------------------|
| CONDENSED      CONSOLIDATED  BALANCE SHEETS |
| (Unaudited      )                                     |
| (In      thousands)                                   |

|                                                 |                                                      |   | March      31, |    |   | December      31, |   |
|------------------------------------------------------|-----------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| ASSETS                                               |                                                      |   | 2010           |    |   | 2009              |   |
| UTILITY      PLANT:                                  | Water      Production                                     |   | $              | 113,527 |   |              | $      | 113,124 |   |
|                                                 | Transmission      and Distribution                        |   |           | 295,563 |   |              |   | 293,269 |   |
|                                                 | General                                                   |   |           | 32,434  |   |              |   | 29,631 |   |
|                                                 | Construction      Work in Progress                        |   |           | 17,396  |   |              |   | 17,547 |   |
|                                                 | TOTAL                                                     |   |           | 458,920 |   |              |   | 453,571 |   |
|                                                 | Less      Accumulated Depreciation                        |   |           | 78,957  |   |              |   | 77,027 |   |
|                                                 | UTILITY      PLANT - NET                                  |   |           | 379,963 |   |              |   | 376,544 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| CURRENT      ASSETS:                                 | Cash      and Cash Equivalents                            |   |           | 6,838   |   |              |   | 4,278 |   |
|                                                 | Accounts      Receivable, net                             |   |           | 9,692   |   |              |   | 10,616 |   |
|                                                 | Unbilled      Revenues                                    |   |           | 4,144   |   |              |   | 4,424 |   |
|                                                 | Materials      and Supplies (at average cost)             |   |           | 1,621   |   |              |   | 1,618 |   |
|                                                 | Prepayments                                               |   |           | 1,098   |   |              |   | 1,109 |   |
|                                                 | TOTAL      CURRENT ASSETS                                 |   |           | 23,393  |   |              |   | 22,045 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| DEFERRED      CHARGES                                | Unamortized      Debt Expense                             |   |           | 2,817   |   |              |   | 2,856 |   |
| AND      OTHER ASSETS:                               | Preliminary      Survey and Investigation Charges         |   |           | 7,236   |   |              |   | 6,999 |   |
|                                                 | Regulatory      Assets                                    |   |           | 32,903  |   |              |   | 33,081 |   |
|                                                 | Operations      Contracts Fees Receivable                 |   |           | 3,715   |   |              |   | 3,715 |   |
|                                                 | Restricted      Cash                                      |   |           | 5,205   |   |              |   | 5,266 |   |
|                                                 | Non-utility      Assets - Net                             |   |           | 7,158   |   |              |   | 7,134 |   |
|                                                 | Other                                                     |   |           | 381     |   |              |   | 446 |   |
|                                                 | TOTAL      DEFERRED CHARGES AND OTHER ASSETS              |   |           | 59,415  |   |              |   | 59,497 |   |
|                                                 | TOTAL      ASSETS                                         |   | $              | 462,771 |   |              | $      | 458,086 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| CAPITALIZATION      AND LIABILITIES                  |                                                      |   |           |    |   |              |   |   |
| CAPITALIZATION:                                      | Common      Stock, No Par Value                           |   | $              | 110,051 |   |              | $      | 109,366 |   |
|                                                 | Retained      Earnings                                    |   |           | 29,336  |   |              |   | 30,265 |   |
|                                                 | TOTAL      COMMON EQUITY                                  |   |           | 139,387 |   |              |   | 139,631 |   |
|                                                 | Preferred      Stock                                      |   |           | 3,373   |   |              |   | 3,373 |   |
|                                                 | Long-term      Debt                                       |   |           | 133,832 |   |              |   | 124,910 |   |
|                                                 | TOTAL      CAPITALIZATION                                 |   |           | 276,592 |   |              |   | 267,914 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| CURRENT                                              | Current      Portion of Long-term Debt                    |   |           | 4,065   |   |              |   | 3,710 |   |
| LIABILITIES:                                         | Notes      Payable                                        |   |           | 37,400  |   |              |   | 42,850 |   |
|                                                 | Accounts      Payable                                     |   |           | 3,559   |   |              |   | 4,348 |   |
|                                                 | Accrued      Taxes                                        |   |           | 8,242   |   |              |   | 5,686 |   |
|                                                 | Accrued      Interest                                     |   |           | 883     |   |              |   | 1,861 |   |
|                                                 | Unearned      Revenues and Advanced Service Fees          |   |           | 871     |   |              |   | 861 |   |
|                                                 | Other                                                     |   |           | 1,173   |   |              |   | 1,352 |   |
|                                                 | TOTAL      CURRENT LIABILITIES                            |   |           | 56,193  |   |              |   | 60,668 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| COMMITMENTS      AND CONTINGENT LIABILITIES (Note 7) |                                                      |   |           |    |   |              |   |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| DEFERRED      CREDITS                                | Customer      Advances for Construction                   |   |           | 20,658  |   |              |   | 20,806 |   |
| AND      OTHER LIABILITIES:                          | Accumulated      Deferred Investment Tax Credits          |   |           | 1,284   |   |              |   | 1,303 |   |
|                                                 | Accumulated      Deferred Income Taxes                    |   |           | 28,202  |   |              |   | 27,788 |   |
|                                                 | Employee      Benefit Plans                               |   |           | 25,484  |   |              |   | 25,723 |   |
|                                                 | Regulatory      Liability - Cost of Utility Plant Removal |   |           | 6,887   |   |              |   | 6,738 |   |
|                                                 | Other                                                     |   |           | 223     |   |              |   | 275 |   |
|                                                 | TOTAL      DEFERRED CREDITS AND OTHER LIABILITIES         |   |           | 82,738  |   |              |   | 82,633 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| CONTRIBUTIONS      IN AID OF CONSTRUCTION            |                                                      |   | 47,248         |    |   |              | 46,871 |   |
|                                                 | TOTAL      CAPITALIZATION AND LIABILITIES                 |   | $              | 462,771 |   |              | $      | 458,086 |   |
|                                                 |                                                      |   |           |    |   |              |   |   |   |
| See      Notes to Consolidated Financial Statements. |                                                      |   |           |    |   |              |   |   |

----

Index

| MIDDLESEX WATER COMPANY                              |
|------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited)                                          |
| (In      thousands)                                  |

|                                                                                |   |                            |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------|--------|
|                                                                                |   | Years      Ended March 31, |   |
|                                                                                |   | 2010                            |   |   | 2009   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                          |   |                            |   |   |   |   |
| Net      Income                                                                     |   | $                               | 1,560  |   |   | $      | 1,361 |   |
| Adjustments      to Reconcile Net Income to                                         |   |                            |   |   |   |   |   |   |
| Net      Cash Provided by Operating Activities:                                     |   |                            |   |   |   |   |   |   |
| Depreciation      and Amortization                                                  |   |                            | 2,404  |   |   |   | 2,236 |   |
| Provision      for Deferred Income Taxes and ITC                                    |   |                            | 328    |   |   |   | 325 |   |
| Equity      Portion of AFUDC                                                        |   |                            | (181   | )      |   |   | (129 | ) |
| Cash      Surrender Value of Life Insurance                                         |   |                            | 103    |   |   |   | 51 |   |
| Stock      Compensation Expense                                                     |   |                            | 85     |   |   |   | 77 |   |
| Changes      in Assets and Liabilities:                                             |   |                            |   |   |   |   |   |   |
| Accounts      Receivable                                                            |   |                            | 924    |   |   |   | 511 |   |
| Unbilled      Revenues                                                              |   |                            | 280    |   |   |   | 463 |   |
| Materials      & Supplies                                                       |   |                            | (3     | )      |   |   | (5 | ) |
| Prepayments                                                                         |   |                            | 11     |   |   |   | 488 |   |
| Other      Assets                                                                   |   |                            | (221   | )      |   |   | (311 | ) |
| Accounts      Payable                                                               |   |                            | (789   | )      |   |   | (732 | ) |
| Accrued      Taxes                                                                  |   |                            | 2,556  |   |   |   | 1,639 |   |
| Accrued      Interest                                                               |   |                            | (978   | )      |   |   | (1,166 | ) |
| Employee      Benefit Plans                                                         |   |                            | 30     |   |   |   | 673 |   |
| Unearned      Revenue & Advanced Service Fees                                   |   |                            | 10     |   |   |   | (30 | ) |
| Other      Liabilities                                                              |   |                            | (192   | )      |   |   | 344 |   |
|                                                                                |   |                            |   |   |   |   |   |   |
| NET      CASH PROVIDED BY OPERATING ACTIVITIES                                      |   |                            | 5,927  |   |   |   | 5,795 |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                          |   |                            |   |   |   |   |   |   |
| Utility      Plant Expenditures, Including AFUDC of $113 in 2010, $112 in      2009 |   |                            | (5,449 | )      |   |   | (5,976 | ) |
| Restricted      Cash                                                                |   |                            | 61     |   |   |   | 116 |   |
|                                                                                |   |                            |   |   |   |   |   |   |
| NET      CASH USED IN INVESTING ACTIVITIES                                          |   |                            | (5,388 | )      |   |   | (5,860 | ) |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                          |   |                            |   |   |   |   |   |   |
| Redemption      of Long-term Debt                                                   |   |                            | (723   | )      |   |   | (15,541 | ) |
| Proceeds      from Issuance of Long-term Debt                                       |   |                            | 10,000 |   |   |   | 7,013 |   |
| Net      Short-term Bank (Repayments)/Borrowings                                    |   |                            | (5,450 | )      |   |   | 11,133 |   |
| Deferred      Debt Issuance Expenses                                                |   |                            | (1     | )      |   |   | (125 | ) |
| Restricted      Cash                                                                |   |                            | -      |   |   |   | (14 | ) |
| Proceeds      from Issuance of Common Stock                                         |   |                            | 600    |   |   |   | 297 |   |
| Payment      of Common Dividends                                                    |   |                            | (2,436 | )      |   |   | (2,380 | ) |
| Payment      of Preferred Dividends                                                 |   |                            | (52    | )      |   |   | (52 | ) |
| Construction      Advances and Contributions-Net                                    |   |                            | 83     |   |   |   | (396 | ) |
|                                                                                |   |                            |   |   |   |   |   |   |
| NET      CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES                            |   |                            | 2,021  |   |   |   | (65 | ) |
| NET      CHANGES IN CASH AND CASH EQUIVALENTS                                       |   |                            | 2,560  |   |   |   | (130 | ) |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                               |   |                            | 4,278  |   |   |   | 3,288 |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                     |   | $                               | 6,838  |   |   | $      | 3,158 |   |
|                                                                                |   |                            |   |   |   |   |   |   |
|                                                                                |   |                            |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF NON-CASH ACTIVITY:                                  |   |                            |   |   |   |   |   |   |
| Utility      Plant received as Construction Advances and Contributions              |   | $                               | 146    |   |   | $      | 769 |   |
|                                                                                |   |                            |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOWS INFORMATION:                             |   |                            |   |   |   |   |   |   |
|    Cash      Paid During the Year for:                               |   |                            |   |   |   |   |   |   |
| Interest                                                                            |   | $                               | 2,490  |   |   | $      | 2,623 |   |
| Interest      Capitalized                                                           |   | $                               | (113   | )      |   | $      | (112 | ) |
| Income      Taxes                                                                   |   | $                               | 19     |   |   | $      | 420 |   |
|                                                                                |   |                            |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                      |   |                            |   |   |   |   |   |   |

----

Index

| MIDDLESEX      WATER COMPANY                            |
|---------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CAPITAL STOCK |
| AND      LONG-TERM DEBT                                 |
| (Unaudited)                                             |
| (In      thousands)                                     |

|                                                                                                                                                                                                                                                                                                   |   | March      31, |    |   | December      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                   |   | 2010           |    |   | 2009              |   |
| Common      Stock, No Par Value                                                                                                                                                                                                                                                                        |   |           |    |   |              |   |
|          Shares Authorized -      40,000                                                                                                                                                                                                                       |   |           |    |   |              |   |
|          Shares Outstanding -    2010      - 13,557                                                                                                                                                                                                                 |   | $              | 110,051 |   |              | $      | 109,366 |   |
|                                               2009      - 13,519 |   |           |    |   |              |   |   |   |
|                                                                                                                                                                                                                                                                                                   |   |           |    |   |              |   |   |   |
| Retained      Earnings                                                                                                                                                                                                                                                                                 |   |           | 29,336  |   |              |   | 30,265 |   |
|                   TOTAL      COMMON EQUITY                                                                                                                                                                                                 |   | $              | 139,387 |   |              | $      | 139,631 |   |
|                                                                                                                                                                                                                                                                                                   |   |           |    |   |              |   |   |   |
| Cumulative      Preferred Stock, No Par Value:                                                                                                                                                                                                                                                         |   |           |    |   |              |   |   |   |
|          Shares Authorized -      134                                                                                                                                                                                                                     |   |           |    |   |              |   |   |   |
|          Shares Outstanding -    32                                                                                                                                                                                                                                 |   |           |    |   |              |   |   |   |
|        Convertible:                                                                                                                                                                                                                                                                               |   |           |    |   |              |   |   |   |
|          Shares Outstanding, $7.00 Series - 14                                                                                                                                                                                                                                          |   | $              | 1,457   |   |              | $      | 1,457 |   |
|          Shares Outstanding, $8.00 Series -   7                                                                                                                                                                                                                          |   |           | 816     |   |              |   | 816 |   |
|        Nonredeemable:                                                                                                                                                                                                                                                                             |   |           |    |   |              |   |   |   |
|          Shares Outstanding, $7.00 Series -   1                                                                                                                                                                                                                          |   |           | 100     |   |              |   | 100 |   |
|          Shares Outstanding, $4.75 Series - 10                                                                                                                                                                                                                                          |   |           | 1,000   |   |              |   | 1,000 |   |
|                   TOTAL      PREFERRED STOCK                                                                                                                                                                                               |   | $              | 3,373   |   |              | $      | 3,373 |   |
|                                                                                                                                                                                                                                                                                                   |   |           |    |   |              |   |   |   |
| Long-term      Debt:                                                                                                                                                                                                                                                                                   |   |           |    |   |              |   |   |   |
|    8.05%,      Amortizing Secured Note, due December 20, 2021                                                                                                                                                                                                                           |   | $              | 2,551   |   |              | $      | 2,581 |   |
|    6.25%,      Amortizing Secured Note, due May 19, 2028                                                                                                                                                                                                                                |   |           | 7,630   |   |              |   | 7,735 |   |
|    6.44%,      Amortizing Secured Note, due August 25, 2030                                                                                                                                                                                                                             |   |           | 5,717   |   |              |   | 5,787 |   |
|    6.46%,      Amortizing Secured Note, due September 19, 2031                                                                                                                                                                                                                          |   |           | 5,997   |   |              |   | 6,067 |   |
|    4.22%,      State Revolving Trust Note, due December 31, 2022                                                                                                                                                                                                                        |   |           | 622     |   |              |   | 622 |   |
|    3.30%      to 3.60%, State Revolving Trust Note, due May 1, 2025                                                                                                                                                                                                                     |   |           | 3,671   |   |              |   | 3,687 |   |
|    3.49%,      State Revolving Trust Note, due January 25, 2027                                                                                                                                                                                                                         |   |           | 678     |   |              |   | 678 |   |
|    4.03%,      State Revolving Trust Note, due December 1, 2026                                                                                                                                                                                                                         |   |           | 903     |   |              |   | 903 |   |
|    4.00%      to 5.00%, State Revolving Trust Bond, due September 1,2021                                                                                                                                                                                                                |   |           | 564     |   |              |   | 625 |   |
|    0.00%,      State Revolving Fund Bond, due September 1, 2021                                                                                                                                                                                                                         |   |           | 428     |   |              |   | 436 |   |
|    3.64%,      State Revolving Trust Note, due July 1, 2028                                                                                                                                                                                                                             |   |           | 395     |   |              |   | 395 |   |
|    3.64%,      State Revolving Trust Note, due January 1, 2028                                                                                                                                                                                                                          |   |           | 132     |   |              |   | 132 |   |
|    6.59%,      Amortizing Secured Note, due April 20, 2029                                                                                                                                                                                                                              |   |           | 6,656   |   |              |   | 6,743 |   |
|    7.05%,      Amortizing Secured Note, due January 20, 2030                                                                                                                                                                                                                            |   |           | 4,958   |   |              |   | 5,000 |   |
|    5.69%,      Amortizing Secured Note, due January 20, 2030                                                                                                                                                                                                                            |   |           | 10,000  |   |              |   | - |   |
|    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 |   |
|           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                                                                                                                                                                                                                                   |   |           | 474     |   |              |   | 483 |   |
|           4.25% to 4.63%, Series Y, due September 1, 2018                                                                                                                                                                                                                          |   |           | 650     |   |              |   | 650 |   |
|           0.00%, Series Z, due September 1, 2019                                                                                                                                                                                                                                   |   |           | 1,097   |   |              |   | 1,118 |   |
|           5.25% to 5.75%, Series AA, due September 1, 2019                                                                                                                                                                                                                         |   |           | 1,560   |   |              |   | 1,560 |   |
|           0.00%, Series BB, due September 1, 2021                                                                                                                                                                                                                                  |   |           | 1,421   |   |              |   | 1,447 |   |
|           4.00% to 5.00%, Series CC, due September 1, 2021                                                                                                                                                                                                                         |   |           | 1,790   |   |              |   | 1,790 |   |
|           5.10%, Series DD, due January 1, 2032                                                                                                                                                                                                                                    |   |           | 6,000   |   |              |   | 6,000 |   |
|           0.00%, Series EE, due September 1, 2024                                                                                                                                                                                                                                  |   |           | 5,540   |   |              |   | 5,642 |   |
|           3.00% to 5.50%, Series FF, due September 1, 2024                                                                                                                                                                                                                         |   |           | 6,935   |   |              |   | 6,935 |   |
|           0.00%, Series GG, due August 1, 2026                                                                                                                                                                                                                                     |   |           | 1,507   |   |              |   | 1,530 |   |
|           4.00% to 5.00%, Series HH, due August 1, 2026                                                                                                                                                                                                                            |   |           | 1,810   |   |              |   | 1,810 |   |
|           0.00%, Series II, due August 1, 2027                                                                                                                                                                                                                                     |   |           | 1,594   |   |              |   | 1,619 |   |
|           3.40% to 5.00%, Series JJ, due August 1, 2027                                                                                                                                                                                                                            |   |           | 1,690   |   |              |   | 1,690 |   |
|           0.00%, Series KK, due August 1, 2028                                                                                                                                                                                                                                     |   |           | 1,677   |   |              |   | 1,705 |   |
|           5.00% to 5.50%, Series LL, due August 1, 2028                                                                                                                                                                                                                            |   |           | 1,750   |   |              |   | 1,750 |   |
| SUBTOTAL      LONG-TERM DEBT                                                                                                                                                                                                                                                                           |   |           | 137,897 |   |              |   | 128,620 |   |
|        Less:      Current Portion of Long-term Debt                                                                                                                                                                                                                                               |   |           | (4,065  | )      |              |   | (3,710 | ) |
|                  TOTAL      LONG-TERM DEBT                                                                                                                                                                                                           |   | $              | 133,832 |   |              | $      | 124,910 |   |
|                                                                                                                                                                                                                                                                                                   |   |           |    |   |              |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                                                                                                                                                                                                                                         |   |           |    |   |              |   |   |   |

----

Index

N

----

Index

----

Index

|                      |   | (Thousands      of Dollars) |   |
|---------------------------|--------|-----------------------------|--------|
|                      |   | March      31, 2010         |   |   | December      31, 2009 |   |
|                      |   | Carrying                    |   |   | Fair |   |   | Carrying |   |   | Fair |   |
|                      |   | Amount                      |   |   | Value |   |   | Amount |   |   | Value |   |
| First      Mortgage Bonds |   | $                           | 86,996 |   |   | $ | 84,723 |   |   | $ | 87,230 |   |   | $ | 84,429 |   |
| SRF      Bonds            |   | $                           | 991    |   |   | $ | 1,016 |   |   | $ | 1,061 |   |   | $ | 1,091 |   |

|                                                         |   | (In      Thousands Except per Share Amounts) |   |
|--------------------------------------------------------------|--------|----------------------------------------------|--------|
|                                                         |   | Three      Months Ended March 31,            |   |
| Basic:                                                       |   | 2010                                         |   |   | Shares |   |   | 2009 |   |   | Shares |   |
| Net      Income                                              |   | $                                            | 1,560  |   |   |   | 13,538 |   |   | $ | 1,361 |   |   |   | 13,413 |   |
| Preferred      Dividend                                      |   |                                         | (52    | ) |   |   |   |   |   |   | (52 | ) |   |   |   |   |
| Earnings      Applicable to Common Stock                     |   | $                                            | 1,508  |   |   |   | 13,538 |   |   | $ | 1,309 |   |   |   | 13,413 |   |
|                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      EPS                                               |   | $                                            | 0.11   |   |   |   |   |   |   | $ | 0.10 |   |   |   |   |   |
|                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                     |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      Applicable to Common Stock                     |   | $                                            | 1,508  |   |   |   | 13,538 |   |   | $ | 1,309 |   |   |   | 13,413 |   |
| $7.00      Series Preferred Dividend                         |   |                                         | 24     |   |   |   | 167 |   |   |   | 24 |   |   |   | 167 |   |
| $8.00      Series Preferred Dividend                         |   |                                         | 14     |   |   |   | 96 |   |   |   | 14 |   |   |   | 96 |   |
| Adjusted      Earnings Applicable to  Common Stock |   | $                                            | 1,546  |   |   |   | 13,801 |   |   | $ | 1,347 |   |   |   | 13,676 |   |
|                                                         |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      EPS                                             |   | $                                            | 0.11   |   |   |   |   |   |   | $ | 0.10 |   |   |   |   |   |

----

Index

|                                         |   | (In      Thousands)Three      Months Ended March 31, |    |
|----------------------------------------------|--------|-----------------------------------------------------------|---------|
| Operations      by Segments:                 |   | 2010                                                      |    |   | 2009 |   |
| Revenues:                                    |   |                                                      |    |   |   |   |
|    Regulated                  |   | $                                                         | 19,102  |   |   | $ | 17,976 |   |
|    Non      – Regulated |   |                                                      | 2,626   |   |   |   | 2,666 |   |
| Inter-segment      Elimination               |   |                                                      | (83     | ) |   |   | (59 | ) |
| Consolidated      Revenues                   |   | $                                                         | 21,645  |   |   | $ | 20,583 |   |
|                                         |   |                                                      |    |   |   |   |   |   |
| Operating      Income:                       |   |                                                      |    |   |   |   |   |   |
|    Regulated                  |   | $                                                         | 2,830   |   |   | $ | 2,599 |   |
|    Non      – Regulated |   |                                                      | 458     |   |   |   | 403 |   |
| Consolidated      Operating Income           |   | $                                                         | 3,288   |   |   | $ | 3,002 |   |
|                                         |   |                                                      |    |   |   |   |   |   |
| Net      Income:                             |   |                                                      |    |   |   |   |   |   |
|    Regulated                  |   | $                                                         | 1,266   |   |   | $ | 1,086 |   |
|    Non      – Regulated |   |                                                      | 294     |   |   |   | 275 |   |
| Consolidated      Net Income                 |   | $                                                         | 1,560   |   |   | $ | 1,361 |   |
|                                         |   |                                                      |    |   |   |   |   |   |
| Capital      Expenditures:                   |   |                                                      |    |   |   |   |   |   |
|    Regulated                  |   | $                                                         | 5,410   |   |   | $ | 6,024 |   |
|    Non      – Regulated |   |                                                      | 39      |   |   |   | (48 | ) |
| Total      Capital Expenditures              |   | $                                                         | 5,449   |   |   | $ | 5,976 |   |
|                                         |   | As      ofMarch      31,2010                              |    |         As of           December 31,   2009 |   |
| Assets:                                      |   |                                                      |    |   |   |   |   |   |
|    Regulated                  |   | $                                                         | 456,343 |   |   | $ | 451,734 |   |
|    Non      – Regulated |   |                                                      | 11,392  |   |   |   | 11,022 |   |
| Inter-segment      Elimination               |   |                                                      | (4,964  | ) |   |   | (4,670 | ) |
| Consolidated      Assets                     |   | $                                                         | 462,771 |   |   | $ | 458,086 |   |

----

Index

|             |   | (In      Thousands)Three      Months EndedMarch      31, |   |
|------------------|--------|----------------------------------------------------------|--------|
|             |   | 2010                                                     |   |   | 2009 |   |
| Purchased Water  |   |                                                     |   |   |   |   |
| Treated          |   | $                                                        | 719    |   |   | $ | 541 |   |
| Untreated        |   |                                                     | 612    |   |   |   | 598 |   |
| Total      Costs |   | $                                                        | 1,331  |   |   | $ | 1,139 |   |

----

Index

----

Index

|                                                 |   | (In      Thousands)               |   |
|------------------------------------------------------|--------|-----------------------------------|--------|
|                                                 |   | Pension Plan                      |   |   | Other Benefits Plan |   |
|                                                 |   | Three      Months Ended March 31, |   |
|                                                 |   | 2010                              |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                 |   |                              |   |   |   |   |   |   |   |   |   |   |
| Service      Cost                                    |   | $                                 | 349    |   |   | $ | 343 |   |   | $ | 256 |   |   | $ | 223 |   |
| Interest      Cost                                   |   |                              | 557    |   |   |   | 525 |   |   |   | 334 |   |   |   | 272 |   |
| Expected      Return on Assets                       |   |                              | (505   | ) |   |   | (401 | ) |   |   | (190 | ) |   |   | (149 | ) |
| Amortization      of Unrecognized Losses             |   |                              | 127    |   |   |   | 154 |   |   |   | 133 |   |   |   | 123 |   |
| Amortization      of Unrecognized Prior Service Cost |   |                              | 2      |   |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Amortization      of Transition Obligation           |   |                              | -      |   |   |   | - |   |   |   | 34 |   |   |   | 34 |   |
| Net      Periodic Benefit Cost                       |   | $                                 | 530    |   |   | $ | 623 |   |   | $ | 567 |   |   | $ | 503 |   |

----

Index

|   | - | 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, including the recovery of certain costs recorded as regulatory      assets; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | statements      as to the Company’s expected liquidity needs during the upcoming fiscal      year 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 rate increase      requests; |
|--------|---|--------------------------------------------------------------------------------------------------|

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

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

|   | - | the      existence of financially attractive acquisition candidates and the risks      involved in pursuing thoseacquisitions; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | - | the      availability and cost of capitalresources; |
|--------|---|-----------------------------------------------------|

|   | - | the      ability to translate Preliminary Survey & Investigation charges into      viable projects; and |
|--------|---|-------------------------------------------------------------------------------------------------------------|

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

----

Index

----

Index

----

Index

|                                     |   | (In      Thousands)         |   |
|------------------------------------------|--------|-----------------------------|--------|
|                                     |   | Three Months Ended March31, |   |
|                                     |   | 2010                        |   |   | 2009 |   |
|                                     |   | Regulated                   |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                                 |   | $                           | 19,019 |   |   | $ | 2,626 |   |   | $ | 21,645 |   |   | $ | 17,976 |   |   | $ | 2,607 |   |   | $ | 20,583 |   |
| Operations      and maintenance expenses |   |                        | 11,539 |   |   |   | 2,055 |   |   |   | 13,594 |   |   |   | 10,937 |   |   |   | 2,106 |   |   |   | 13,043 |   |
| Depreciation      expense                |   |                        | 2,163  |   |   |   | 41 |   |   |   | 2,204 |   |   |   | 2,049 |   |   |   | 37 |   |   |   | 2,086 |   |
| Other      taxes                         |   |                        | 2,487  |   |   |   | 72 |   |   |   | 2,559 |   |   |   | 2,391 |   |   |   | 61 |   |   |   | 2,452 |   |
|   Operating      income        |   |                        | 2,830  |   |   |   | 458 |   |   |   | 3,288 |   |   |   | 2,599 |   |   |   | 403 |   |   |   | 3,002 |   |
|                                     |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income, net                   |   |                        | 373    |   |   |   | 74 |   |   |   | 447 |   |   |   | 311 |   |   |   | 98 |   |   |   | 409 |   |
| Interest      expense                    |   |                        | 1,383  |   |   |   | 41 |   |   |   | 1,424 |   |   |   | 1,335 |   |   |   | 57 |   |   |   | 1,392 |   |
| Income      taxes                        |   |                        | 554    |   |   |   | 197 |   |   |   | 751 |   |   |   | 489 |   |   |   | 169 |   |   |   | 658 |   |
|   Net      income              |   | $                           | 1,266  |   |   | $ | 294 |   |   | $ | 1,560 |   |   | $ | 1,086 |   |   | $ | 275 |   |   | $ | 1,361 |   |

|   | · | Revenues      in our Middlesex System increased $0.4 million, primarily as a result of      increased revenues of $0.2 million from contract sales to municipalities      and increased revenues of $0.2 million from the effects of the purchase      water adjustment clause implemented on July 1, 2009.  Water      consumption across our residential, commercial and industrial customer      classes was consistent with the first quarter of 2009 but below historical      average usage. We are unable to determine when these customers’ water      demands may return to previous levels, or if the decline in demand will      continue indefinitely.  In addition, the aforementioned rate      increase of 13.57%, which became effective on March 17, 2010, had minimal      impact on first quarter 2010 revenues, but is expected to result in      approximately $7.8 million in additional annual  revenues. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   |   |
|--------|--------|

|   | · | Revenues      in our Tidewater system increased $0.7 million. Increased revenue of $0.4      million is attributable to increased rates that went into effect in late      March 2009.   Increased revenues of $0.1 million resulted      from increased water consumption. New customer growth and connection fees      added $0.2 million of revenue. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Materials      and supplies and outside contractor costs increased $0.3 million,      primarily due to a higher incidence of weather-related water main breaks      in our Middlesex system. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Labor      costs at our regulated entities increased $0.2 million, primarily due to      increased overtime incurred in connectionwith: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | § | the      aforementioned higher incidence of water main breaks in our Middlesex      system; and |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | § | snow      removal and other storm-related costs due to large snow storms in January      and February 2010 affecting both our New Jersey and Delaware      operations.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Production      costs increased $0.2 million, primarily dueto: |
|--------|--------|----------------------------------------------------------------|

|   | § | increased      chemical and residuals disposal expenses of $0.2 million from abnormally      high amounts of rainfall in March 2010, which caused decreased quality of      water; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | increased      purchased water costs of $0.2 million in our Middlesex system, primarily      from increased rates; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | § | decreased      purchased power costs of $0.2 million resulting from decreased water      production in our Middlesex system. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Facilities      maintenance expenses increased $0.1 million, primarily due to snow removal      costs. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | All      other operating and maintenance expense categories decreased $0.2      million. |
|--------|--------|------------------------------------------------------------------------------------------|

----

Index

|   | · | increased      interest charges on Tidewater long-term debt resulting from higher average      long-term debt outstanding in the first quarter of 2010 as compared to the      first quarter of 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | decreased      interest charges on Middlesex long-term debt resulting from lower average      long-term debt outstanding in the first quarter of 2010 as compared to the      first quarter of 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | Internally      generated funds |
|--------|--------|---------------------------------|

|   | · | Proceeds      from the sale of common stock through theDRP |
|--------|--------|------------------------------------------------------------|

|   | · | Funds      available and held in trust under existing New Jersey SRF loans      (currently, $4.1 million) and Delaware SRF loans (currently, $3.0      million). The SRF programs provide low cost financing for projects that      meet certain water quality and system improvement    benchmarks. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Short-term      borrowings, if necessary, through $58.0 million of available lines of      credit with several financial institutions.  At March 31, 2010,      the outstanding borrowings under these credit lines were $37.4      million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

n

P

----

Index

----

Index

O

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

| Item      1A. | RiskFactors |
|---------------|-------------|

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

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

| Item      4. | Removed      and Reserved |
|--------------|---------------------------|

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

| Item      6. | Ex hibits                                                                                                                                                                                                                                            |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                 |
| 10.37        | Amended      and Restated Line of Credit Note and Amendment to Loan Documents between      Registrant and PNC Bank, incorporated herein by reference to Exhibit 10.2      to Registrant’s Current Report on Form 8-K filed April 30,      2010 |
|         |                                                                                                                                                                                                                                                 |
| 31.1         | Section      302 Certification by Dennis W. Doll pursuant to Rules 13a-14 and 15d-14 of      the Securities Exchange Act of1934.                                                                                                                     |

| 31.2 | Section      302 Certification by A. Bruce O’Connor pursuant to Rules 13a-14 and 15d-14      of the Securities Exchange Act of1934. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | 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

N

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