**EXHIBIT 21**

**LIST OF THE SUBSIDIARIES OF THE COMPANY**

(Jurisdiction ofincorporation as noted in parenthesis)

The direct andindirect subsidiaries of Walter Industries, Inc. are:

1.     Blue CreekCoal Sales, Inc. (AL)

2.     HamerProperties, Inc. (WV)

3.     JWH HoldingCompany, LLC (DE)

a.      BestInsurors, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

b.      CardemInsurance Co., Ltd. (Bermuda) (a subsidiary of JWH Holding Company, LLC)

c.      Coast toCoast Advertising, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

d.      DixieBuilding Supplies, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

e.      JimWalter Homes, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

i.       CrestlineHomes, Inc. (NC) (a subsidiary of Jim Walter Homes, Inc.)

ii.     DreamHomes, Inc. (TX) (subsidiary of Jim Walter Homes, Inc.)

iii.    DreamHomes USA, Inc. (TX) (a subsidiary of Jim Walter Homes, Inc.)

iv.     JimWalter Homes of Arkansas, Inc. (AR) (a subsidiary of Jim Walter Homes, Inc.

v.      JimWalter Homes of Tennessee, Inc. (DE) (a subsidiary of Jim Walter Homes, Inc.

vi.     NeatherlinHomes, Inc. (TX) (a subsidiary of Jim Walter Homes, Inc.)

vii.   WalterHome Improvement, Inc. (FL) (a subsidiary of Jim Walter Homes, Inc.)

f.       Mid-StateHomes, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

i.                    Mid-StateTrust IV (a business trust of which 100% of the beneficial interest in thetrust is held by Mid-State Homes, Inc.)

ii.                Mid-State Trust VI(a business trust of which 100% of the beneficial interest in the trust is heldby Mid-State Homes, Inc.)

iii.            Mid-State Trust VII (abusiness trust of which 100% of the beneficial interest in the trust is held byMid-State Homes, Inc.)

iv.              Mid-State Trust VIII(a business trust of which 100% of the beneficial interest in the trust is heldby Mid-State Homes, Inc.)

v.                  Mid-State TrustIX (a business trust of which 100% of the beneficial interest in the trust isheld by Mid-State Homes, Inc.)

vi.              Mid-State Trust X (astatutory trust of which 100% of the beneficial interest in the trust is heldby Mid-State Homes, Inc.)

vii.          Mid-State Trust XI (astatutory trust of which 100% of the beneficial interest in the trust is heldby Mid-State Homes, Inc.)

viii.      Mid-State Trust XIV (astatutory trust of which 100% of the beneficial interest in the trust is heldby Mid-State Homes, Inc.)

ix.              Mid-State CapitalCorporation (DE) (a subsidiary of Mid-State Homes, Inc.)

1.                Mid-State CapitalCorporation 2004-1 Trust (a statutory trust of which 100% of thebeneficial interest in the trust is held by Mid-State Capital Corporation.)

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2.                Mid-State CapitalCorporation 2005-1 Trust (a statutory trust of which 100% of thebeneficial interest in the trust is held by Mid-State Capital Corporation.)

3.                Mid-State CapitalCorporation 2006-1 Trust (a statutory trust of which 100% of thebeneficial interest in the trust is held by Mid-State Capital Corporation.)

g.      WalterMortgage Company (DE) (a subsidiary of JWH Holding Company, LLC)

h.      WalterMortgage Servicing, Inc. (FL) (a subsidiary of JWH Holding Company, LLC)

4.     J.W.I.Holdings Corporation (DE)

a.      J.W.Walter, Inc. (DE) (a subsidiary of J.W.I. Holdings Corporation)

5.     JeffersonWarrior Railroad Company, Inc. (AL)

6.     Jim WalterResources, Inc. (AL)

a.      BlackWarrior Transmission Corp. (50 % owned by Jim Walter Resources, Inc.)

b.      BlackWarrior Methane Corp. (50 % owned by Jim Walter Resources, Inc.)

7.     LandHoldings Corporation (DE)

a.      WalterLand Company (DE) (a subsidiary of Land Holdings Corporation)

8.     SlossIndustries Corporation (DE)

9.     SP MachineInc. (DE) (formerly Southern Precision Corporation)

10.   United LandCorporation (DE)

a.                  United LandCorporation owns 51% of the interest in Kodiak Mining Company, LLC, a Delawarelimited liability company

11.   VManufacturing Company (DE) (formerly known as Vestal Manufacturing Company)

The names of particular subsidiaries may have beenomitted if the unnamed subsidiaries, considered in the aggregate as a singlesubsidiary, would not constitute a significant subsidiary as of December 31,2006.

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