----

----

| 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 | 15     |
|       |                                                                                  |   |
| Item 3.    | Quantitative and Qualitative Disclosures of Market Risk                               | 21     |
|       |                                                                                  |   |
| Item 4.    | Controls and Procedures                                                               | 22     |
|       |                                                                                  |   |
| PART II.   | OTHER INFORMATION                                                                     |   |
|       |                                                                                  |   |
| Item 1.    | Legal Proceedings                                                                     | 23     |
|       |                                                                                  |   |
| Item 1A.   | Risk Factors                                                                          | 23     |
|       |                                                                                  |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                           | 23     |
|       |                                                                                  |   |
| Item 3.    | Defaults upon Senior Securities                                                       | 23     |
|       |                                                                                  |   |
| Item 4.    | Submission of Matters to a Vote of Security Holders                                   | 23     |
|       |                                                                                  |   |
| Item 5.    | Other Information                                                                     | 24     |
|       |                                                                                  |   |
| Item 6.    | Exhibits                                                                              | 25     |
|       |                                                                                  |   |
| SIGNATURES | 26                                                                                    |

----

Index

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

|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|                                                      |   | 2009                        |   |   | 2008                      |   |   | 2009   |   |   | 2008   |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |
| Operating Revenues                                        |   | $                           | 23,083 |   |                      | $      | 23,035 |   |   | $      | 43,665 |   |   | $ | 43,890 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                                       |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operations                                                |   |                        | 11,675 |   |                      |   | 10,617 |   |   |   | 23,531 |   |   |   | 21,719 |   |
| Maintenance                                               |   |                        | 1,218  |   |                      |   | 1,110  |   |   |   | 2,405  |   |   |   | 2,107 |   |
| Depreciation                                              |   |                        | 2,111  |   |                      |   | 1,955  |   |   |   | 4,196  |   |   |   | 3,885 |   |
| Other Taxes                                               |   |                        | 2,532  |   |                      |   | 2,528  |   |   |   | 4,984  |   |   |   | 5,008 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total Operating Expenses                                  |   |                        | 17,536 |   |                      |   | 16,210 |   |   |   | 35,116 |   |   |   | 32,719 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                          |   |                        | 5,547  |   |                      |   | 6,825  |   |   |   | 8,549  |   |   |   | 11,171 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense):                                   |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Funds Used During Construction              |   |                        | 241    |   |                      |   | 162    |   |   |   | 482    |   |   |   | 265 |   |
| Other Income                                              |   |                        | 150    |   |                      |   | 277    |   |   |   | 328    |   |   |   | 518 |   |
| Other Expense                                             |   |                        | (7     | )      |                      |   | (113   | )      |   |   | (18    | )      |   |   | (158 | ) |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total Other Income, net                                   |   |                        | 384    |   |                      |   | 326    |   |   |   | 792    |   |   |   | 625 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest Charges                                          |   |                        | 1,766  |   |                      |   | 1,806  |   |   |   | 3,158  |   |   |   | 3,323 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before Income Taxes                                |   |                        | 4,165  |   |                      |   | 5,345  |   |   |   | 6,183  |   |   |   | 8,473 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes                                              |   |                        | 1,319  |   |                      |   | 1,780  |   |   |   | 1,976  |   |   |   | 2,904 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                |   |                        | 2,846  |   |                      |   | 3,565  |   |   |   | 4,207  |   |   |   | 5,569 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Preferred Stock Dividend Requirements                     |   |                        | 52     |   |                      |   | 62     |   |   |   | 104    |   |   |   | 124 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                       |   | $                           | 2,794  |   |                      | $      | 3,503  |   |   | $      | 4,103  |   |   | $ | 5,445 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share of Common Stock:                       |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   | $                           | 0.21   |   |                      | $      | 0.26   |   |   | $      | 0.31   |   |   | $ | 0.41 |   |
| Diluted                                                   |   | $                           | 0.21   |   |                      | $      | 0.26   |   |   | $      | 0.31   |   |   | $ | 0.41 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Average Number of                                         |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Common Shares Outstanding :                               |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   |                        | 13,434 |   |                      |   | 13,269 |   |   |   | 13,424 |   |   |   | 13,262 |   |
| Diluted                                                   |   |                        | 13,697 |   |                      |   | 13,600 |   |   |   | 13,687 |   |   |   | 13,593 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividends Paid per Common Share                      |   | $                           | 0.1775 |   |                      | $      | 0.1750 |   |   | $      | 0.3550 |   |   | $ | 0.3500 |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements. |   |                        |   |   |                      |   |   |   |   |   |   |   |   |

----

Index

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

|                                            |                                         | June 30,                                             |    |    | December 31, |   |
|-------------------------------------------------|----------------------------------------------|------------------------------------------------------|---------|---------|--------------|--------|
| ASSETS                                          |                                         | 2009                                                 |    |    | 2008         |   |
| UTILITY PLANT:                                  | Water Production                             | $                                                    | 111,873 |    |         | $      | 107,517 |   |
|                                            |                                         | Transmission and Distribution                        |    | 288,560 |         |   |   | 283,759 |   |
|                                            |                                         | General                                              |    | 28,406  |         |   |   | 27,142 |   |
|                                            |                                         | Construction Work in Progress                        |    | 14,064  |         |   |   | 11,653 |   |
|                                            |                                         | TOTAL                                                |    | 442,903 |         |   |   | 430,071 |   |
|                                            |                                         | Less Accumulated Depreciation                        |    | 73,658  |         |   |   | 70,544 |   |
|                                            |                                         | UTILITY PLANT - NET                                  |    | 369,245 |         |   |   | 359,527 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| CURRENT ASSETS:                                 | Cash and Cash Equivalents                    |                                                 | 3,456   |    |         |   | 3,288 |   |
|                                            |                                         | Accounts Receivable, net                             |    | 8,912   |         |   |   | 9,510 |   |
|                                            |                                         | Unbilled Revenues                                    |    | 5,562   |         |   |   | 4,822 |   |
|                                            |                                         | Materials and Supplies (at average cost)             |    | 1,557   |         |   |   | 1,475 |   |
|                                            |                                         | Prepayments                                          |    | 1,718   |         |   |   | 1,481 |   |
|                                            |                                         | TOTAL CURRENT ASSETS                                 |    | 21,205  |         |   |   | 20,576 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| DEFERRED CHARGES                                | Unamortized Debt Expense                     |                                                 | 2,937   |    |         |   | 2,903 |   |
| AND OTHER ASSETS:                               | Preliminary Survey and Investigation Charges |                                                 | 6,813   |    |         |   | 7,187 |   |
|                                            |                                         | Regulatory Assets                                    |    | 31,411  |         |   |   | 31,910 |   |
|                                            |                                         | Operations Contracts Fees Receivable                 |    | 3,736   |         |   |   | 3,708 |   |
|                                            |                                         | Restricted Cash                                      |    | 6,615   |         |   |   | 7,049 |   |
|                                            |                                         | Non-utility Assets - Net                             |    | 6,923   |         |   |   | 6,762 |   |
|                                            |                                         | Other                                                |    | 602     |         |   |   | 378 |   |
|                                            |                                         | TOTAL DEFERRED CHARGES AND OTHER ASSETS              |    | 59,037  |         |   |   | 59,897 |   |
|                                            |                                         | TOTAL ASSETS                                         | $       | 449,487 |         |   | $ | 440,000 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| CAPITALIZATION AND LIABILITIES                  |                                         |                                                 |    |    |         |   |   |
| CAPITALIZATION:                                 | Common Stock, No Par Value                   | $                                                    | 108,490 |    |         | $      | 107,726 |   |
|                                            |                                         | Retained Earnings                                    |    | 29,416  |         |   |   | 30,077 |   |
|                                            |                                         | TOTAL COMMON EQUITY                                  |    | 137,906 |         |   |   | 137,803 |   |
|                                            |                                         | Preferred Stock                                      |    | 3,373   |         |   |   | 3,375 |   |
|                                            |                                         | Long-term Debt                                       |    | 128,845 |         |   |   | 118,217 |   |
|                                            |                                         | TOTAL CAPITALIZATION                                 |    | 270,124 |         |   |   | 259,395 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| CURRENT                                         | Current Portion of Long-term Debt            |                                                 | 3,463   |    |         |   | 17,985 |   |
| LIABILITIES:                                    | Notes Payable                                |                                                 | 39,010  |    |         |   | 25,877 |   |
|                                            |                                         | Accounts Payable                                     |    | 4,431   |         |   |   | 5,689 |   |
|                                            |                                         | Accrued Taxes                                        |    | 8,401   |         |   |   | 7,781 |   |
|                                            |                                         | Accrued Interest                                     |    | 1,752   |         |   |   | 2,053 |   |
|                                            |                                         | Unearned Revenues and Advanced Service Fees          |    | 845     |         |   |   | 842 |   |
|                                            |                                         | Other                                                |    | 1,399   |         |   |   | 1,243 |   |
|                                            |                                         | TOTAL CURRENT LIABILITIES                            |    | 59,301  |         |   |   | 61,470 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) |                                         |                                                 |    |    |         |   |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| DEFERRED CREDITS                                | Customer Advances for Construction           |                                                 | 21,339  |    |         |   | 22,089 |   |
| AND OTHER LIABILITIES:                          | Accumulated Deferred Investment Tax Credits  |                                                 | 1,343   |    |         |   | 1,382 |   |
|                                            |                                         | Accumulated Deferred Income Taxes                    |    | 22,267  |         |   |   | 21,733 |   |
|                                            |                                         | Employee Benefit Plans                               |    | 25,866  |         |   |   | 25,540 |   |
|                                            |                                         | Regulatory Liability - Cost of Utility Plant Removal |    | 6,476   |         |   |   | 6,197 |   |
|                                            |                                         | Other                                                |    | 499     |         |   |   | 963 |   |
|                                            |                                         | TOTAL DEFERRED CREDITS AND OTHER LIABILITIES         |    | 77,790  |         |   |   | 77,904 |   |
|                                            |                                         |                                                 |    |    |         |   |   |   |   |
| CONTRIBUTIONS IN AID OF CONSTRUCTION            |                                         | 42,272                                               |    |    |         | 41,231 |   |
|                                            |                                         | TOTAL CAPITALIZATION AND LIABILITIES                 | $       | 449,487 |         |   | $ | 440,000 |   |

| See Notes to Condensed Consolidated Financial Statements. |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|

----

Index

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

|                                                                             |   |                           |    |   |   |   |
|----------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|--------|--------|
|                                                                             |   |                           |    |   |   |   |
|                                                                             |   | Six Months Ended June 30, |    |
|                                                                             |   | 2009                           |    |   | 2008   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                            |   |                           |    |   |   |   |
| Net Income                                                                       |   | $                              | 4,207   |   |   | $      | 5,569 |   |
| Adjustments to Reconcile Net Income to                                           |   |                           |    |   |   |   |   |   |
| Net Cash Provided by Operating Activities:                                       |   |                           |    |   |   |   |   |   |
| Depreciation and Amortization                                                    |   |                           | 4,396   |   |   |   | 4,208 |   |
| Provision for Deferred Income Taxes and ITC                                      |   |                           | 405     |   |   |   | 317 |   |
| Equity Portion of AFUDC                                                          |   |                           | (264    | )      |   |   | (138 | ) |
| Cash Surrender Value of Life Insurance                                           |   |                           | 116     |   |   |   | 115 |   |
| Gain on Disposal of Equity Investments                                           |   |                           | -       |   |   |   | (86 | ) |
| Changes in Assets and Liabilities:                                               |   |                           |    |   |   |   |   |   |
| Accounts Receivable                                                              |   |                           | 571     |   |   |   | (493 | ) |
| Unbilled Revenues                                                                |   |                           | (740    | )      |   |   | (1,082 | ) |
| Materials & Supplies                                                         |   |                           | (82     | )      |   |   | (246 | ) |
| Prepayments                                                                      |   |                           | (237    | )      |   |   | (294 | ) |
| Other Assets                                                                     |   |                           | (638    | )      |   |   | (183 | ) |
| Accounts Payable                                                                 |   |                           | (1,258  | )      |   |   | (559 | ) |
| Accrued Taxes                                                                    |   |                           | 620     |   |   |   | 531 |   |
| Accrued Interest                                                                 |   |                           | (301    | )      |   |   | 261 |   |
| Employee Benefit Plans                                                           |   |                           | 871     |   |   |   | 1,207 |   |
| Unearned Revenue & Advanced Service Fees                                     |   |                           | 3       |   |   |   | 29 |   |
| Other Liabilities                                                                |   |                           | (308    | )      |   |   | (123 | ) |
|                                                                             |   |                           |    |   |   |   |   |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                        |   |                           | 7,361   |   |   |   | 9,033 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                            |   |                           |    |   |   |   |   |   |
|   Utility Plant Expenditures, Including AFUDC of $218 in 2009, $127 in 2008 |   |                           | (11,943 | )      |   |   | (14,444 | ) |
| Restricted Cash                                                                  |   |                           | 456     |   |   |   | 340 |   |
|                                                                             |   |                           |    |   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                            |   |                           | (11,487 | )      |   |   | (14,104 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                            |   |                           |    |   |   |   |   |   |
| Redemption of Long-term Debt                                                     |   |                           | (15,908 | )      |   |   | (795 | ) |
| Proceeds from Issuance of Long-term Debt                                         |   |                           | 12,014  |   |   |   | 939 |   |
| Net Short-term Bank Borrowings                                                   |   |                           | 13,133  |   |   |   | 10,750 |   |
| Deferred Debt Issuance Expenses                                                  |   |                           | (116    | )      |   |   | (158 | ) |
| Restricted Cash                                                                  |   |                           | (22     | )      |   |   | (35 | ) |
| Proceeds from Issuance of Common Stock                                           |   |                           | 762     |   |   |   | 724 |   |
| Payment of Common Dividends                                                      |   |                           | (4,763  | )      |   |   | (4,640 | ) |
| Payment of Preferred Dividends                                                   |   |                           | (104    | )      |   |   | (124 | ) |
| Construction Advances and Contributions-Net                                      |   |                           | (702    | )      |   |   | 105 |   |
|                                                                             |   |                           |    |   |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                        |   |                           | 4,294   |   |   |   | 6,766 |   |
| NET CHANGES IN CASH AND CASH EQUIVALENTS                                         |   |                           | 168     |   |   |   | 1,695 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                 |   |                           | 3,288   |   |   |   | 2,029 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                       |   | $                              | 3,456   |   |   | $      | 3,724 |   |
|                                                                             |   |                           |    |   |   |   |   |   |
|                                                                             |   |                           |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:                                    |   |                           |    |   |   |   |   |   |
|   Utility Plant received as Construction Advances and Contributions         |   | $                              | 993     |   |   | $      | 1,312 |   |
|   Transfer of Equity Investment to Employee Retirement Benefit Plans        |   | $                              | -       |   |   | $      | 132 |   |
|                                                                             |   |                           |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:                               |   |                           |    |   |   |   |   |   |
|    Cash Paid During the Year for:                                 |   |                           |    |   |   |   |   |   |
| Interest                                                                         |   | $                              | 3,484   |   |   | $      | 3,101 |   |
| Interest Capitalized                                                             |   | $                              | (218    | )      |   | $      | (127 | ) |
| Income Taxes                                                                     |   | $                              | 1,367   |   |   | $      | 2,707 |   |
|                                                                             |   |                           |    |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.                        |   |                           |    |   |   |   |   |   |

----

Index

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

|                                                                                                                                                                                                                                                                                                                                         |          |   |   | June 30, |    |   | December 31, |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|--------|----------|---------|--------|--------------|---------|
|                                                                                                                                                                                                                                                                                                                                         |          |   |   | 2009     |    |   | 2008         |    |
| Common Stock, No Par Value                                                                                                                                                                                                                                                                                                                   |          |   |   |     |    |   |         |
| Shares Authorized -                                                                                                                                                                                                                                                                                                                          | 40,000        |   |   |     |    |   |         |    |
| Shares Outstanding -                                                                                                                                                                                                                                                                                                                         | 2009 - 13,447 |   |   | $        | 108,490 |   |         | $       | 107,726 |   |
|                                                                                                                                                                                                                                                                                                                                         | 2008 - 13,404 |   |   |     |    |   |         |    |   |   |
|                                                                                                                                                                                                                                                                                                                                         |          |   |   |     |    |   |         |    |   |   |
| Retained Earnings                                                                                                                                                                                                                                                                                                                            |          |   |   |     | 29,416  |   |         |    | 30,077 |   |
|                      TOTAL COMMON EQUITY                                                                                                                                                                                            |          |   | $      | 137,906  |    |   | $            | 137,803 |   |
|                                                                                                                                                                                                                                                                                                                                         |          |   |   |     |    |   |         |    |   |   |
| Cumulative Preference Stock, No Par Value:                                                                                                                                                                                                                                                                                                   |          |   |   |     |    |   |         |    |   |
| Shares Authorized -                                                                                                                                                                                                                                                                                                                          | 100           |   |   |     |    |   |         |    |   |   |
| Shares Outstanding -                                                                                                                                                                                                                                                                                                                         | None          |   |   |     |    |   |         |    |   |   |
| 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      |    |   |         | 102     |   |
| Shares Outstanding, $4.75 Series - 10                                                                                                                                                                                                                                                                                                        |          |   |   | 1,000    |    |   |         | 1,000   |   |
|                      TOTAL PREFERRED STOCK                                                                                                                                                                                          |          |   | $      | 3,373    |    |   | $            | 3,375   |   |
|                                                                                                                                                                                                                                                                                                                                         |          |   |   |     |    |   |         |    |   |   |
| Long-term Debt:                                                                                                                                                                                                                                                                                                                              |          |   |   |     |    |   |         |    |   |
| 8.05%, Amortizing Secured Note, due December 20, 2021                                                                                                                                                                                                                                                                                        |          | $      | 2,639  |     |    | $      | 2,695        |    |
| 6.25%, Amortizing Secured Note, due May 19, 2028                                                                                                                                                                                                                                                                                             |          |   |   | 7,945    |    |   |         | 8,155   |   |
| 6.44%, Amortizing Secured Note, due August 25, 2030                                                                                                                                                                                                                                                                                          |          |   |   | 5,927    |    |   |         | 6,067   |   |
| 6.46%, Amortizing Secured Note, due September 19, 2031                                                                                                                                                                                                                                                                                       |          |   | 6,207  |     |    |   | 6,347        |    |
| 6.59%, Amortizing Secured Note, due April 20, 2029                                                                                                                                                                                                                                                                                           |          |   |   | 6,918    |    |   |         | -       |   |
| 7.05%, Amortizing Secured Note, due January 20, 2030                                                                                                                                                                                                                                                                                         |          |   |   | 5,000    |    |   |         | -       |   |
| 4.22%, State Revolving Trust Note, due December 31, 2022                                                                                                                                                                                                                                                                                     |          |   | 639    |     |    |   | 657          |    |
| 3.30% to 3.60%, State Revolving Trust Note, due May 1, 2025                                                                                                                                                                                                                                                                                  |          |   | 3,702  |     |    |   | 3,689        |    |
| 3.49%, State Revolving Trust Note, due January 25, 2027                                                                                                                                                                                                                                                                                      |          |   | 678    |     |    |   | 675          |    |
| 4.03%, State Revolving Trust Note, due December 1, 2026                                                                                                                                                                                                                                                                                      |          |   | 921    |     |    |   | 939          |    |
| 4.00% to 5.00%, State Revolving Trust Bond, due September 1, 2021                                                                                                                                                                                                                                                                            |          |   | 660    |     |    |   | 660          |    |
| 0.00%, State Revolving Fund Bond, due September 1, 2021                                                                                                                                                                                                                                                                                      |          |   | 464    |     |    |   | 500          |    |
| 3.64%, State Revolving Trust Note, due July 1, 2028                                                                                                                                                                                                                                                                                          |          |   |   | 395      |    |   |         | 389     |   |
| 3.64%, State Revolving Trust Note, due January 1, 2028                                                                                                                                                                                                                                                                                       |          |   |   | 138      |    |   |         | 140     |   |
| 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  |   |
| 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                                                                                                                                                                                                                                                                                                       |          |   |   | 529      |    |   |         | 538     |   |
| 4.25% to 4.63%, Series Y, due September 1, 2018                                                                                                                                                                                                                                                                                              |          |   |   | 710      |    |   |         | 710     |   |
| 0.00%, Series Z, due September 1, 2019                                                                                                                                                                                                                                                                                                       |          |   |   | 1,207    |    |   |         | 1,230   |   |
| 5.25% to 5.75%, Series AA, due September 1, 2019                                                                                                                                                                                                                                                                                             |          |   |   | 1,675    |    |   |         | 1,675   |   |
| 0.00%, Series BB, due September 1, 2021                                                                                                                                                                                                                                                                                                      |          |   |   | 1,538    |    |   |         | 1,566   |   |
| 4.00% to 5.00%, Series CC, due September 1, 2021                                                                                                                                                                                                                                                                                             |          |   |   | 1,895    |    |   |         | 1,895   |   |
| 5.10%, Series DD, due January 1, 2032                                                                                                                                                                                                                                                                                                        |          |   |   | 6,000    |    |   |         | 6,000   |   |
| 0.00%, Series EE, due September 1, 2024                                                                                                                                                                                                                                                                                                      |          |   |   | 6,588    |    |   |         | 6,693   |   |
| 3.00% to 5.50%, Series FF, due September 1, 2024                                                                                                                                                                                                                                                                                             |          |   |   | 8,025    |    |   |         | 8,025   |   |
| 0.00%, Series GG, due August 1, 2026                                                                                                                                                                                                                                                                                                         |          |   |   | 1,595    |    |   |         | 1,619   |   |
| 4.00% to 5.00%, Series HH, due August 1, 2026                                                                                                                                                                                                                                                                                                |          |   |   | 1,880    |    |   |         | 1,880   |   |
| 0.00%, Series II, due August 1, 2027                                                                                                                                                                                                                                                                                                         |          |   |   | 1,683    |    |   |         | 1,708   |   |
| 3.40% to 5.00%, Series JJ, due August 1, 2027                                                                                                                                                                                                                                                                                                |          |   |   | 1,750    |    |   |         | 1,750   |   |
| 0.00%, Series KK, due August 1, 2028                                                                                                                                                                                                                                                                                                         |          |   |   | 1,750    |    |   |         | 1,750   |   |
| 5.00% to 5.50%, Series LL, due August 1, 2028                                                                                                                                                                                                                                                                                                |          |   |   | 1,750    |    |   |         | 1,750   |   |
|                      SUBTOTAL LONG-TERM DEBT                                                                                                                                                                                        |          |   |   | 132,308  |    |   |         | 136,202 |   |
|                                           Less: Current Portion of Long-term Debt                                          |          |   | (3,463 | )        |    |   | (17,985      | )       |
|                                                      TOTALLONG-TERM DEBT |          |   | $      | 128,845  |    |   | $            | 118,217 |   |

| See Notes to Condensed Consolidated Financial Statements. |
|-----------------------------------------------------------|

----

Index

W

----

Index

----

Index

----

Index

|                  |   | (Thousands of Dollars) |   |
|-----------------------|--------|------------------------|--------|
|                  |   | June 30, 2009          |   |   | December 31, 2008 |   |
|                  |   | Carrying               |   |   | Fair |   |   | Carrying |   |   | Fair |   |
|                  |   | Amount                 |   |   | Value |   |   | Amount |   |   | Value |   |
| First Mortgage Bonds  |   | $                      | 90,075 |   |   | $ | 81,020 |   |   | $ | 105,290 |   |   | $ | 95,171 |   |
| State Revolving Bonds |   | $                      | 1,124  |   |   | $ | 1,146 |   |   | $ | 1,160 |   |   | $ | 1,170 |   |

|                                                    |   | (In Thousands Except per Share Amounts) |   |
|---------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                    |   | Three Months Ended June 30,             |   |
| Basic:                                                  |   | 2009                                    |   |   | Shares |   |   | 2008 |   |   | Shares |   |
| Net Income                                              |   | $                                       | 2,846  |   |   |   | 13,434 |   |   | $ | 3,565 |   |   |   | 13,269 |   |
| Preferred Dividend                                      |   |                                    | (52    | ) |   |   |   |   |   |   | (62 | ) |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 2,794  |   |   |   | 13,434 |   |   | $ | 3,503 |   |   |   | 13,269 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                               |   | $                                       | 0.21   |   |   |   |   |   |   | $ | 0.26 |   |   |   |   |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 2,794  |   |   |   | 13,434 |   |   | $ | 3,503 |   |   |   | 13,269 |   |
| $7.00 Series Preferred Dividend                         |   |                                    | 24     |   |   |   | 167 |   |   |   | 24 |   |   |   | 167 |   |
| $8.00 Series Preferred Dividend                         |   |                                    | 14     |   |   |   | 96 |   |   |   | 24 |   |   |   | 164 |   |
| Adjusted Earnings Applicable to  Common Stock |   | $                                       | 2,832  |   |   |   | 13,697 |   |   | $ | 3,551 |   |   |   | 13,600 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                             |   | $                                       | 0.21   |   |   |   |   |   |   | $ | 0.26 |   |   |   |   |   |

----

Index

|                                                    |   | (In Thousands Except per Share Amounts) |   |
|---------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                    |   | Six Months Ended June 30,               |   |
| Basic:                                                  |   | 2009                                    |   |   | Shares |   |   | 2008 |   |   | Shares |   |
| Net Income                                              |   | $                                       | 4,207  |   |   |   | 13,424 |   |   | $ | 5,569 |   |   |   | 13,262 |   |
| Preferred Dividend                                      |   |                                    | (104   | ) |   |   |   |   |   |   | (124 | ) |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 4,103  |   |   |   | 13,424 |   |   | $ | 5,445 |   |   |   | 13,262 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic EPS                                               |   | $                                       | 0.31   |   |   |   |   |   |   | $ | 0.41 |   |   |   |   |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Applicable to Common Stock                     |   | $                                       | 4,103  |   |   |   | 13,424 |   |   | $ | 5,445 |   |   |   | 13,262 |   |
| $7.00 Series Preferred Dividend                         |   |                                    | 49     |   |   |   | 167 |   |   |   | 49 |   |   |   | 167 |   |
| $8.00 Series Preferred Dividend                         |   |                                    | 28     |   |   |   | 96 |   |   |   | 48 |   |   |   | 164 |   |
| Adjusted Earnings Applicable to  Common Stock |   | $                                       | 4,180  |   |   |   | 13,687 |   |   | $ | 5,542 |   |   |   | 13,593 |   |
|                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted EPS                                             |   | $                                       | 0.31   |   |   |   |   |   |   | $ | 0.41 |   |   |   |   |   |

|                                    |  (In Thousands)       |   |
|-----------------------------------------|----------------------------|--------|
|                                    | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
| Operations by Segments:                 | 2009                       |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenues:                               |                       |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |                       | $      | 20,489 |   |   | $ | 20,538 |   |   | $ | 38,465 |   |   | $ | 38,960 |   |
|    Non – Regulated |                       |   | 2,724 |   |   |   | 2,607 |   |   |   | 5,390 |   |   |   | 5,091 |   |
| Inter-segment Elimination               |                       |   | (130 | ) |   |   | (110 | ) |   |   | (190 | ) |   |   | (161 | ) |
| Consolidated Revenues                   |                       | $      | 23,083 |   |   | $ | 23,035 |   |   | $ | 43,665 |   |   | $ | 43,890 |   |
|  Operating Income:                 |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |                       | $      | 5,042 |   |   | $ | 6,346 |   |   | $ | 7,641 |   |   | $ | 10,236 |   |
|    Non – Regulated |                       |   | 505 |   |   |   | 479 |   |   |   | 908 |   |   |   | 935 |   |
| Consolidated Operating Income           |                       | $      | 5,547 |   |   | $ | 6,825 |   |   | $ | 8,549 |   |   | $ | 11,171 |   |
|                                    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income:                             |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |                       | $      | 2,514 |   |   | $ | 3,260 |   |   | $ | 3,600 |   |   | $ | 4,961 |   |
|    Non – Regulated |                       |   | 332 |   |   |   | 305 |   |   |   | 607 |   |   |   | 608 |   |
| Consolidated Net Income                 |                       | $      | 2,846 |   |   | $ | 3,565 |   |   | $ | 4,207 |   |   | $ | 5,569 |   |
|                                    |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Expenditures:                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Regulated             |                       | $      | 5,910 |   |   | $ | 7,198 |   |   | $ | 11,934 |   |   | $ | 14,189 |   |
|    Non – Regulated |                       |   | 57 |   |   |   | 239 |   |   |   | 9 |   |   |   | 255 |   |
| Total Capital Expenditures              |                       | $      | 5,967 |   |   | $ | 7,437 |   |   | $ | 11,943 |   |   | $ | 14,444 |   |

----

Index

|                                    |   | As ofJune 30,2009 |    |   | As ofDecember 31,2008 |   |
|-----------------------------------------|--------|-------------------|---------|--------|-----------------------|--------|
| Assets:                                 |   |              |    |   |                  |   |
|    Regulated             |   | $                 | 443,303 |   |                  | $      | 433,109 |   |
|    Non – Regulated |   |              | 11,136  |   |                  |   | 11,537 |   |
| Inter-segment Elimination               |   |              | (4,952  | )      |                  |   | (4,646 | ) |
| Consolidated Assets                     |   | $                 | 449,487 |   |                  | $      | 440,000 |   |

----

Index

----

Index

|            |   | (In Thousands)     |   |
|-----------------|--------|--------------------|--------|
|            |   | Three Months Ended |   |   | Six Months Ended |   |
|            |   | June 30,           |   |   | June 30, |   |
|            |   | 2009               |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|            |   |               |   |   |   |   |   |   |   |   |   |   |
| Purchased Water |   |               |   |   |   |   |   |   |   |   |   |   |
| Treated         |   | $                  | 566    |   |   | $ | 529 |   |   | $ | 1,107 |   |   | $ | 1,050 |   |
| Untreated       |   |               | 513    |   |   |   | 516 |   |   |   | 1,111 |   |   |   | 1,121 |   |
| Total Costs     |   | $                  | 1,079  |   |   | $ | 1,045 |   |   | $ | 2,218 |   |   | $ | 2,171 |   |

----

Index

|                                            | (In Thousands)              |   |
|-------------------------------------------------|-----------------------------|--------|
|                                            | Pension Benefits            |   |   | Other Benefits |   |
|                                            | Three Months Ended June 30, |   |
|                                            | 2009                        |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                            |                        |   |   |   |   |   |   |   |   |   |
| Service Cost                                    | $                           | 343    |   | $ | 312 |   |   | $ | 223 |   |   | $ | 194 |   |
| Interest Cost                                   |                        | 525    |   |   | 488 |   |   |   | 272 |   |   |   | 252 |   |
| Expected Return on Assets                       |                        | (401   | ) |   | (484 | ) |   |   | (149 | ) |   |   | (145 | ) |
| Amortization of Unrecognized Losses             |                        | 154    |   |   | - |   |   |   | 123 |   |   |   | 72 |   |
| Amortization of Unrecognized Prior Service Cost |                        | 2      |   |   | 2 |   |   |   | - |   |   |   | - |   |
| Amortization of Transition Obligation           |                        | -      |   |   | - |   |   |   | 34 |   |   |   | 34 |   |
| Net Periodic Benefit Cost                       | $                           | 623    |   | $ | 318 |   |   | $ | 503 |   |   | $ | 407 |   |

|                                            | (In Thousands)            |   |
|-------------------------------------------------|---------------------------|--------|
|                                            | Pension Benefits          |   |   | Other Benefits |   |
|                                            | Six Months Ended June 30, |   |
|                                            | 2009                      |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                            |                      |   |   |   |   |   |   |   |   |   |
| Service Cost                                    | $                         | 686    |   | $ | 624 |   |   | $ | 445 |   |   | $ | 387 |   |
| Interest Cost                                   |                      | 1,050  |   |   | 975 |   |   |   | 543 |   |   |   | 505 |   |
| Expected Return on Assets                       |                      | (801   | ) |   | (969 | ) |   |   | (298 | ) |   |   | (291 | ) |
| Amortization of Unrecognized Losses             |                      | 308    |   |   | - |   |   |   | 247 |   |   |   | 144 |   |
| Amortization of Unrecognized Prior Service Cost |                      | 5      |   |   | 5 |   |   |   | - |   |   |   | - |   |
| Amortization of Transition Obligation           |                      | -      |   |   | - |   |   |   | 68 |   |   |   | 68 |   |
| Net Periodic Benefit Cost                       | $                         | 1,248  |   | $ | 635 |   |   | $ | 1,005 |   |   | $ | 813 |   |

----

Index

|                                                          |   | (In Thousands)     |   |
|---------------------------------------------------------------|--------|--------------------|--------|
|                                                          |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                          |   | June 30,           |   |   | June 30, |   |
|                                                          |   | 2009               |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                          |   |               |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                    |   | $                  | 2,846  |   |   | $ | 3,565 |   |   | $ | 4,207 |   |   | $ | 5,569 |   |
|                                                          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Loss:                                     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in Value of Equity Investments, Net of Income Tax |   |               | ---    |   |   |   | --- |   |   |   | --- |   |   |   | (12 | ) |
| Less:  Adjustment for Gain Included in Net Income   |   |               | ---    |   |   |   | (57 | ) |   |   | --- |   |   |   | (57 | ) |
|      Other Comprehensive Loss        |   |               | ---    |   |   |   | (57 | ) |   |   | --- |   |   |   | (69 | ) |
|                                                          |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income                                          |   | $                  | 2,846  |   |   | $ | 3,508 |   |   | $ | 4,207 |   |   | $ | 5,500 |   |

----

Index

a

|   | - | statements as to expected financial condition, performance, prospects and earnings of the Company;                                                                                                   |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | statements regarding strategic plans for growth;                                                                                                                                                     |
|   | - | 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 current annual fiscal period 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 operating results;                                                                               |
|   | - | 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 economic conditions;                                                               |
|--------|---|-----------------------------------------------------------------------------------------------------------|
|   | - | 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 of water;                                                           |
|   | - | actions taken by government regulators, including decisions on base rate increase requests;               |
|   | - | new or additional water quality standards;                                                                |
|   | - | weather variations and other natural phenomena;                                                           |
|   | - | 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 in Delaware;                                                    |
|   | - | the availability and cost of capital resources; and                                                       |
|   | - | other factors discussed elsewhere in this quarterly report.                                               |

----

Index

----

Index

----

Index

|                                |   | (In Thousands)              |   |
|-------------------------------------|--------|-----------------------------|--------|
|                                |   | Three Months Ended June 30, |   |
|                                |   | 2009                        |   |   | 2008 |   |
|                                |   | Regulated                   |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                            |   | $                           | 20,489 |   |   | $ | 2,594 |   |   | $ | 23,083 |   |   | $ | 20,538 |   |   | $ | 2,497 |   |   | $ | 23,035 |   |
| Operations and maintenance expenses |   |                        | 10,898 |   |   |   | 1,995 |   |   |   | 12,893 |   |   |   | 9,796 |   |   |   | 1,931 |   |   |   | 11,727 |   |
| Depreciation expense                |   |                        | 2,076  |   |   |   | 35 |   |   |   | 2,111 |   |   |   | 1,926 |   |   |   | 29 |   |   |   | 1,955 |   |
| Other taxes                         |   |                        | 2,473  |   |   |   | 59 |   |   |   | 2,532 |   |   |   | 2,470 |   |   |   | 58 |   |   |   | 2,528 |   |
|   Operating income        |   |                        | 5,042  |   |   |   | 505 |   |   |   | 5,547 |   |   |   | 6,346 |   |   |   | 479 |   |   |   | 6,825 |   |
|                                |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                   |   |                        | 293    |   |   |   | 91 |   |   |   | 384 |   |   |   | 239 |   |   |   | 87 |   |   |   | 326 |   |
| Interest expense                    |   |                        | 1,713  |   |   |   | 53 |   |   |   | 1,766 |   |   |   | 1,752 |   |   |   | 54 |   |   |   | 1,806 |   |
| Income taxes                        |   |                        | 1,108  |   |   |   | 211 |   |   |   | 1,319 |   |   |   | 1,573 |   |   |   | 207 |   |   |   | 1,780 |   |
|   Net income              |   | $                           | 2,514  |   |   | $ | 332 |   |   | $ | 2,846 |   |   | $ | 3,260 |   |   | $ | 305 |   |   | $ | 3,565 |   |

----

Index

|                                |   | (In Thousands)            |   |
|-------------------------------------|--------|---------------------------|--------|
|                                |   | Six Months Ended June 30, |   |
|                                |   | 2009                      |   |   | 2008 |   |
|                                |   | Regulated                 |   |   | Non-Regulated |   |   | Total |   |   | Regulated |   |   | Non-Regulated |   |   | Total |   |
| Revenues                            |   | $                         | 38,465 |   |   | $ | 5,200 |   |   | $ | 43,665 |   |   | $ | 38,960 |   |   | $ | 4,930 |   |   | $ | 43,890 |   |
| Operations and maintenance expenses |   |                      | 21,835 |   |   |   | 4,101 |   |   |   | 25,936 |   |   |   | 20,005 |   |   |   | 3,821 |   |   |   | 23,826 |   |
| Depreciation expense                |   |                      | 4,125  |   |   |   | 71 |   |   |   | 4,196 |   |   |   | 3,827 |   |   |   | 58 |   |   |   | 3,885 |   |
| Other taxes                         |   |                      | 4,864  |   |   |   | 120 |   |   |   | 4,984 |   |   |   | 4,892 |   |   |   | 116 |   |   |   | 5,008 |   |
|   Operating income        |   |                      | 7,641  |   |   |   | 908 |   |   |   | 8,549 |   |   |   | 10,236 |   |   |   | 935 |   |   |   | 11,171 |   |
|                                |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                   |   |                      | 604    |   |   |   | 188 |   |   |   | 792 |   |   |   | 416 |   |   |   | 209 |   |   |   | 625 |   |
| Interest expense                    |   |                      | 3,049  |   |   |   | 109 |   |   |   | 3,158 |   |   |   | 3,198 |   |   |   | 125 |   |   |   | 3,323 |   |
| Income taxes                        |   |                      | 1,596  |   |   |   | 380 |   |   |   | 1,976 |   |   |   | 2,493 |   |   |   | 411 |   |   |   | 2,904 |   |
|   Net income              |   | $                         | 3,600  |   |   | $ | 607 |   |   | $ | 4,207 |   |   | $ | 4,961 |   |   | $ | 608 |   |   | $ | 5,569 |   |

----

Index

----

Index

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

----

Index

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

----

Index

T

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

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

| Item2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------|-------------------------------------------------------------|

| Item3. | Defaults Upon Senior Securities |
|--------|---------------------------------|

| Item4. | Submission of Matters to a Vote of Security Holders |
|--------|-----------------------------------------------------|

|   | 1. | ELECTION OF DIRECTORS: |
|--------|----|------------------------|

|             |   | FOR    |       |   | %      |   |   | WITHHOLD |   |   | %       |   |
|------------------|--------|--------|------------|--------|--------|--------|--------|----------|--------|--------|---------|--------|
|             |   |   |       |   |   |   |   |     |   |   |    |   |
| John C. Cutting  |   |   | 11,183,702 |   |   |   | 93.4   |     |   |   | 786,486 |   |   |   | 6.6 |   |
| John P. Mulkerin |   |   | 11,126,654 |   |   |   | 93.0   |     |   |   | 843,534 |   |   |   | 7.0 |   |
| Dennis W. Doll   |   |   | 11,203,398 |   |   |   | 93.6   |     |   |   | 766,790 |   |   |   | 6.4 |   |

----

Index

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

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Index

| Item6. | Exhibits                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                    |
| 31     | Section 302 Certification by Dennis W. Doll pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. |

| 31.1 | Section 302 Certification by A. Bruce O’Connor pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934. |
|------|----------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

A

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