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|   | Section      1.1.  Definitions |
|--------|------------------------------------------|

|   | Section      1.2.  Interpretation |
|--------|---------------------------------------------|

|   | Section      2.1.  Authorization forIndenture |
|--------|---------------------------------------------------------|

|   | Section      2.2.  Authorization and Obligation of  Bonds |
|--------|---------------------------------------------------------------------|

|   | Section      2.3.  Issuance and Terms of theBonds |
|--------|-------------------------------------------------------------|

|   | Section      2.4.  Redemption of Bonds |
|--------|--------------------------------------------------|

|   | Section      2.5.  Execution and Authentication of  Bonds |
|--------|---------------------------------------------------------------------|

|   | Section      2.6.  Delivery of Bonds |
|--------|------------------------------------------------|

|   | Section      2.7.  No Additional Bonds |
|--------|--------------------------------------------------|

|   | Section      3.1.  Date of Bonds |
|--------|--------------------------------------------|

|   | Section      3.2.  Form andDenominations |
|--------|----------------------------------------------------|

|   | Section      3.3.  Legends |
|--------|--------------------------------------|

|   | Section      3.4.  Medium of Payment |
|--------|------------------------------------------------|

|   | Section      3.5.  Bond Details |
|--------|-------------------------------------------|

|   | Section      3.6.  Interchangeability, Transfer and  Registry |
|--------|-------------------------------------------------------------------------|

|   | Section      3.7.  Bonds Mutilated, Destroyed, Stolen or  Lost |
|--------|--------------------------------------------------------------------------|

|   | Section      3.8.  Cancellation and Destruction of  Bonds |
|--------|---------------------------------------------------------------------|

|   | Section      3.9.  Requirements With Respect To  Transfers |
|--------|----------------------------------------------------------------------|

|   | Section      3.10.  Registrar |
|--------|-----------------------------------------|

|   | Section      4.1.  Accrued Interest |
|--------|-----------------------------------------------|

|   | Section      4.2.  Bond Proceeds |
|--------|--------------------------------------------|

|   | Section      4.3.  BorrowerContribution |
|--------|---------------------------------------------------|

|   | Section      5.1.  Creation of Funds |
|--------|------------------------------------------------|

|   | Section      5.2.  Project Fund |
|--------|-------------------------------------------|

|   | Section      5.3.  Debt Service Fund |
|--------|------------------------------------------------|

|   | Section      5.4.  Rebate Fund |
|--------|------------------------------------------|

|   | Section      5.5.  Renewal Fund |
|--------|-------------------------------------------|

|   | Section      5.6.  Investment of Funds andAccounts |
|--------|--------------------------------------------------------------|

|   | Section      5.7.  Non-presentment ofBonds |
|--------|------------------------------------------------------|

|   | Section      6.1.  Privilege of Redemption and Redemption    Price |
|--------|------------------------------------------------------------------------------|

|   | Section      6.2.  Selection of Bonds to be  Redeemed |
|--------|-----------------------------------------------------------------|

|   | Section      6.3.  Notice ofRedemption |
|--------|--------------------------------------------------|

|   | Section      6.4.  Payment of RedeemedBonds |
|--------|-------------------------------------------------------|

|   | Section      6.5.  Notice to Authority and Borrower of Deceased Bondholder      Redemption |
|--------|------------------------------------------------------------------------------------------------------|

|   | Section      6.6.  Cancellation of RedeemedBonds |
|--------|------------------------------------------------------------|

|   | Section      7.1.  No Pecuniary Liability on Authority or      Officers |
|--------|-----------------------------------------------------------------------------------|

|   | Section      7.2.  Payment of Principal, Redemption Price, if any, and      Interest |
|--------|------------------------------------------------------------------------------------------------|

|   | Section      7.3.  Performance ofCovenants |
|--------|------------------------------------------------------|

|   | Section      7.4.  Further Assurances |
|--------|-------------------------------------------------|

|   | Section      7.5.  Inspection of ProjectBooks |
|--------|---------------------------------------------------------|

|   | Section      7.6.  Rights under FinancingDocuments |
|--------|--------------------------------------------------------------|

|   | Section      7.7.  Creation of Liens,Indebtedness |
|--------|-------------------------------------------------------------|

|   | Section      7.8.  Recording andFiling |
|--------|--------------------------------------------------|

|   | Section      8.1.  Events of Default; Acceleration of Due    Dates |
|--------|------------------------------------------------------------------------------|

|   | Section      8.2.  Enforcement ofRemedies |
|--------|-----------------------------------------------------|

|   | Section      8.3.  Application of Revenue and Other Moneys After      Default |
|--------|-----------------------------------------------------------------------------------------|

|   | Section      8.4.  Actions by Trustee |
|--------|-------------------------------------------------|

|   | Section      8.5.  Majority Bondholders Control  Proceedings |
|--------|------------------------------------------------------------------------|

|   | Section      8.6.  Individual Bondholder Action  Restricted |
|--------|-----------------------------------------------------------------------|

|   | Section      8.7.  Effect of Discontinuance of  Proceedings |
|--------|-----------------------------------------------------------------------|

|   | Section      8.8.  Remedies NotExclusive |
|--------|----------------------------------------------------|

|   | Section      8.9.  Delay or Omission UponDefault |
|--------|------------------------------------------------------------|

|   | Section      8.10.  Notice of Default |
|--------|-------------------------------------------------|

|   | Section      8.11.  Waivers of Default |
|--------|--------------------------------------------------|

|   | Section      9.1.  Appointment and Acceptance of  Duties |
|--------|--------------------------------------------------------------------|

|   | Section      9.2.  Indemnity |
|--------|----------------------------------------|

|   | Section      9.3.  Responsibilities ofTrustee |
|--------|---------------------------------------------------------|

|   | Section      9.4.  Compensation |
|--------|-------------------------------------------|

|   | Section      9.5.  Evidence on Which Trustee May  Act |
|--------|-----------------------------------------------------------------|

|   | Section      9.6.  Evidence of Signatures of Owners of the Bonds and      Ownership of Bonds |
|--------|--------------------------------------------------------------------------------------------------------|

|   | Section      9.7.  Trustee and any Paying Agent, May Deal in Bonds and With      Borrower |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Section      9.8.  Resignation or Removal of  Trustee |
|--------|-----------------------------------------------------------------|

|   | Section      9.9.  Successor Trustee |
|--------|------------------------------------------------|

|   | Section      9.10.  Appointment and Responsibilities of Paying      Agent |
|--------|-------------------------------------------------------------------------------------|

|   | Section      9.11.  Resignation or Removal of Paying Agent;      Successors |
|--------|---------------------------------------------------------------------------------------|

|   | Section      9.12.  Monies Held for Particular  Bonds |
|--------|-----------------------------------------------------------------|

|   | Section      9.13.  ContinuationStatements |
|--------|------------------------------------------------------|

|   | Section      9.14.  Obligation to ReportDefaults |
|--------|------------------------------------------------------------|

|   | Section      9.15.  Payments Due on non-Business  Day |
|--------|-----------------------------------------------------------------|

|   | Section      9.16.  Appointment ofCo-Trustee |
|--------|--------------------------------------------------------|

|   | Section      9.17.  ProjectDescription |
|--------|--------------------------------------------------|

|   | Section      10.1.  Limitation onModifications |
|--------|----------------------------------------------------------|

|   | Section      10.2.  Supplemental Indentures Without Consent of Owners of the      Bonds |
|--------|---------------------------------------------------------------------------------------------------|

|   | Section      10.3.  Supplemental Indentures With Consent of Owners of the      Bonds |
|--------|------------------------------------------------------------------------------------------------|

|   | Section      10.4.  Supplemental Indenture Part of the    Indenture |
|--------|-------------------------------------------------------------------------------|

|   | Section      11.1.  Rights of Borrower |
|--------|--------------------------------------------------|

|   | Section      11.2.  Amendments of Financing Documents Not Requiring Consent      of Owners of the Bonds |
|--------|-------------------------------------------------------------------------------------------------------------------|

|   | Section      11.3.  Amendments of Financing Documents Requiring Consent of      Owners of the Bonds |
|--------|---------------------------------------------------------------------------------------------------------------|

|   | Section      12.1.  Defeasance |
|--------|------------------------------------------|

|   | Section      13.1.  Notices |
|--------|---------------------------------------|

|   | Section      13.2.  Covenant AgainstDiscrimination |
|--------|--------------------------------------------------------------|

|   | Section      13.3.  Parties InterestedHerein |
|--------|--------------------------------------------------------|

|   | Section      13.4.  Effective Date;Counterparts |
|--------|-----------------------------------------------------------|

|   | Section      13.5.  Date for Identification Purposes  Only |
|--------|----------------------------------------------------------------------|

|   | Section      13.6.  Separability of Invalid  Provisions |
|--------|-------------------------------------------------------------------|

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|   | 1) | United      States government obligations, United States agency obligations, United      States postal service obligations, repurchase agreements or certificates      of deposit to which specifically identified United States government,      agency or postal service obligations are pledged as      collateral; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | certificates      of deposit of any of the fifteen largest domestically chartered banks or      trust companies in the UnitedStates; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | commercial      paper having the highest rating by a nationally recognized securities      rating service; |
|--------|----|------------------------------------------------------------------------------------------------------------|

|   | 4) | tax-exempt      securities not subject to the alternative minimum tax and which have the      highest rating by a nationally recognized securities rating      service; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5) | savings      accounts with banks or savings and loan associations the accounts of which      are federally insured; |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | 6) | bank      acceptances which are eligible collateral for borrowing from Federal      Reserve Banks; |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | 7) | certificates      of deposit of the Trustee (but only to the extent such certificates of      deposit do not exceed 10% of the amounts held in all Funds and Accounts      hereunder); |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8) | guaranteed      investment contracts and/or investment      agreements, acceptable to the Authority, authorized by applicable State      law for the investment of proceeds of obligations issued by the State and      participation certificates in the short term investment fund created and      existing under Section 3-27a, Connecticut General Statutes, as amended,      and any State administered pool investment fund in which the Authority is      statutorily permitted or required to invest;      and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9) | Mutual      funds and money market funds of or available to the Trustee (including any      proprietary money market fund of the Trustee for which the Trustee or an      affiliate of the Trustee serves as investment advisor or provides other      services and receives reasonable compensation thereof) that are rated at      least AAA or AAAm, as applicable, by S&P or Aaa by Moody’s and invest      only in other AuthorizedInvestments. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Any      Bonds cancelled by the Trustee because of payment or redemption prior to      maturity or surrendered to the Trustee for  cancellation; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | any      Bond (or portion of a Bond) paid or redeemed or for the payment or      redemption of which there has been separately set aside and held in the      Debt Service Fund either: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | moneys      in an amount sufficient to effect payment of the principal or applicable      Redemption Price thereof, together with accrued interest on such Bond to      the payment or redemption date, which payment or redemption date shall be,      specified in irrevocable instructions given to the Trustee to apply such      moneys to such payment on the date so specified;  or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | obligations      of the kind described in subsection 12.1(B) hereof in such principal      amounts, of such maturities, bearing such interest and otherwise having      such terms and qualifications as shall be necessary to provide moneys in      an amount sufficient to effect payment of the principal or applicable      Redemption Price of such Bond, together with accrued interest on such Bond      to the payment or redemption date, which payment or redemption date shall      be specified in irrevocable instructions given to the Trustee to apply      such obligations to such payment on the date so specified;    or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any      combination of (a) and (b) above; |
|--------|-----|--------------------------------------------|

|   | (3) | Bonds      in exchange for or in lieu of which other Bonds shall have been      authenticated and delivered under Article III hereof;  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | any      Bond deemed to have been paid as provided in Section 12.1      hereof. |
|--------|-----|---------------------------------------------------------------------------------|

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|   | (A) | $19,600,000.00      will be deposited in the Project Account of the Project Fund;      and |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | (B) | $400,000.00      will be deposited in the Costs of Issuance Account of the Project      Fund. |
|--------|-----|-----------------------------------------------------------------------------------------------|

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| Person | Address | Amount | Item   |
|--------|---------|--------|--------|
|   |    |   |   |

| Amount | Item   |
|--------|--------|
|   |   |

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|   | THE      CONNECTICUT WATER COMPANY |
|--------|------------------------------------|

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