<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex99-1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<PAGE>

                                                                    EXHIBIT 99.1
FOR RELEASE:  March 9, 2006

                                                          Contact: Cheryl Hansen
                                                    Director, Investor Relations
                                                                   (610)645-1084
                                                        clhansen@aquaamerica.com

                                                                    Donna Alston
                                                         Manager, Communications
                                                                  (610) 645-1095
                                                        dpalston@aquaamerica.com


            AQUA AMERICA REPORTS 2005 NET INCOME INCREASED 14 PERCENT

BRYN MAWR, PA, March 9, 2006 - Aqua America, Inc. (NYSE: WTR) today reported net
income for the year ending December 31, 2005 grew 14 percent to $91.2 million,
from $80.0 million, for the full year 2004. Corresponding diluted earnings per
share, on a GAAP basis, increased 11 percent to $0.71 per share from $0.64 per
share for 2004, on three percent more shares outstanding. Earnings in 2004
benefited from a $2.3 million pre-tax gain in the fourth quarter from the sale
of the company's Geneva, Ohio water system. The gain was recorded as a reduction
in the operations and maintenance expenses in the fourth quarter. Excluding the
gain, 2004 diluted earnings per share were $0.62.

For the fourth quarter ending December 31, 2005, the company reported net
income, on a GAAP basis, of $22.2 million and diluted earnings per share of
$0.17. For the same period in 2004, net income was $22.5 million and earnings
per share were $0.18, on a GAAP basis. Excluding the gain from the sale of the
Geneva, Ohio water system, fourth quarter 2004 adjusted income was $21.0 million
and diluted earnings per share were $0.16.

The company's full year 2005 operating revenues increased 12 percent to $496.8
million from $442.0 million for the full year 2004. Fourth quarter 2005
operating revenues were $122.9 million, up from $115.4 in 2004. The 2005 revenue
increase was the result of rate increases and acquisitions, the effects of which
were most notable in the first half of 2005, and a return to normal consumption
in the high-demand spring and summer months.

Aqua America Chairman and CEO Nicholas DeBenedictis said, "Our full year results
were in line with our expectations and our stated long-term strategy. This year
we completed a record number of acquisitions and invested a record amount of
capital, which provides a basis for future earnings power. Our results prove
that our acquisition strategy and capital investment program are all working to
support our long-term strategic growth goals."

Consistent with its ongoing growth-through-acquisition strategy, the company
completed 30 acquisitions of both water and wastewater systems in 2005.
DeBenedictis said, "The acquisition program is in full swing. Unlike 2004 when
we acquired two large franchises from an electric company who was exiting the
water business, this year we focused on integrating these acquisitions while
complementing them by acquiring a large number of small systems. These small
acquisitions are truly our bread and butter and the foundation on which our
acquisition program was built. They bring immediate revenues and capital
investment opportunities, and are easily integrated into the organization's
existing operations."

                                                                               1
<PAGE>

The company's ratio of operations and maintenance expenses to revenues
(efficiency ratio) for the full year 2005 was 40.9 percent, consistent with the
efficiency ratio for the full year 2004 adjusting for the gain from the sale of
the Geneva, Ohio water system. DeBenedictis said, "We held the line on our
year-over-year efficiency ratio even though we were faced with the annualized
impact of two higher cost structure acquisitions (Heater Utilities and Florida
Water) acquired in mid-2004 and sharp increases in other key expenses in 2005.
Expenses experienced pressure from several areas, including the unexpected rise
in fuel prices after hurricane Katrina, which affected transportation expenses
and water production costs in all of our states. Employee benefit cost
increases, such as pension expenses, medical and other post retirement benefit
costs were also higher than anticipated. That said, costs more within our direct
control, such as labor, were maintained at budgeted levels consistent with our
culture of strict discipline with expense management."

The company reported a record $237.5 million in capital investments in 2005, an
increase of more than 20 percent from the $195.7 million of capital invested in
2004. These investments were made to expand and improve the company's water and
wastewater facilities in its 13 states. To capture the return on the capital
invested, the company is in the process of filing significant rate requests in
the affected jurisdictions. The company received approximately $15.2 million
from rate and surcharge requests in 2005 and has pending requests filed for
approximately $49.8 million in rate increases - the largest request being the
$38.8 million case filed in Pennsylvania in November of 2005.

DeBenedictis said, "As we continue to invest record amounts of capital, we will
also continue to see our depreciation expense rise - it increased 11 percent
year-over-year in 2005. Depreciation along with increasing earnings, however,
provides us with growing cash flow to support our capital investment program
without having to incur as much debt or dilute earnings with new equity. We view
this as a positive for both shareholders and customers. Investing capital and
earning our fair, regulated return through the rate-making process is one of the
keys to earnings growth using the regulated model."

On August 2, 2005, the Board of Directors voted to increase the December 1, 2005
quarterly common stock cash dividend to shareholders by 10 percent to $0.1069
per share (adjusted for the December 1, 2005 stock split) which equates to
$0.4276 per share (split adjusted) on an annualized basis. Additionally, the
Board approved a stock split to be effected in the form of a four-for-three
(33 1/3 percent) stock distribution. The increased quarterly cash dividend and
the subsequent stock split were effected December 1, 2005 and made available to
shareholders of record as of November 17, 2005.

This press release contains references to non-GAAP financial measures.
Reconciliations of the GAAP to non-GAAP financial measures can be found in the
tables on pages six and seven of this document.

The company's conference call with analysts will take place on Thursday, March
9, 2006 at 11:00 a.m. Eastern Time. The call will be webcast so that interested
parties may listen over the Internet by logging on to www.aquaamerica.com. The
conference call will be archived in the investor relations section of the
company's Web site for 90 days following the call. Additionally, the call will
be recorded and made available for replay for 10 business days, beginning at
1:00 p.m. Thursday, March 9, 2006. To access the audio replay in the U.S., dial
(888)-286-8010 (passcode 57500554). For international callers, dial
(617)-801-6888 (passcode 57500554).

Aqua America, Inc. is the largest U.S.-based publicly-traded water utility,
serving more than 2.5 million residents in Pennsylvania, Ohio, North Carolina,
Illinois, Texas, Florida, New Jersey, Indiana, Virginia, Maine, Missouri, New
York, and South Carolina. Aqua America is listed on both the New York and
Philadelphia Stock Exchanges under the ticker symbol WTR.

                                                                               2
<PAGE>

This release contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, among others, our
long-term strategy and expectations, the status of our acquisition program, the
impact of our acquisitions, and capital investment program, our long-term
strategic growth goals, increased opportunities from acquisitions to invest and
earn a return on infrastructure improvements, opportunities to control expenses,
and our ability to integrate acquisitions into our existing operations . There
are important factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements including: general
economic business conditions, unfavorable weather conditions, the success of
certain cost containment initiatives, changes in regulations or regulatory
treatment, availability and the cost of capital, the success of growth
initiatives, and other factors discussed in our filings with the Securities and
Exchange Commission.


                                                                            WTRF


The company's results stated here are unaudited. The final audited financial
statements will be filed with the company's annual report on Form 10-K. The
following table shows selected operating data for the quarters and full year
ended December 31, 2005 and 2004 (in thousands, except per share data) for Aqua
America, Inc. All share and per share data have been restated to reflect the
December 1, 2005 four-for-three stock split.
<TABLE>
<CAPTION>
                                                                      (Unaudited)
                                                Quarter Ended                             Year Ended
                                                  December 31,                            December 31,

                                              2005           2004                     2005        2004
                                              ----           ----                     ----        ----
<S>                                        <C>                                     <C>
Operating revenues                         $ 122,908      $ 115,442                $ 496,779    $ 442,039
                                           ========================                ======================
Net income                                 $  22,150      $  22,474                $  91,156    $  80,007
                                           ========================                ======================
Basic net income per share                 $    0.17      $   0.18*                $    0.72    $    0.64*
                                           ========================                ======================
Diluted net income per share               $    0.17      $   0.18*                $    0.71    $    0.64*
                                           ========================                ======================
Average common shares outstanding:
  Basic                                      128,016        125,797                  127,364      124,329
                                           ========================                ======================
  Diluted                                    129,828        127,285                  129,206      125,710
                                           ========================                ======================
</TABLE>
* Fourth quarter 2004 includes $0.02 per share gain on sale of Geneva, OH water
system. Excluding this gain, adjusted earnings per share for fourth quarter 2004
was $0.16 and $0.62 for the full year 2004.

                                                                               3
<PAGE>

                       Aqua America, Inc. and Subsidiaries
           Consolidated Statements of Income and Comprehensive Income
                    (In thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                    Quarter Ended              Year Ended
                                                     December 31,              December 31,
                                                    -------------              ------------
                                                  2005         2004         2005         2004
                                                  ----         ----         ----         ----
<S>                                             <C>         <C>          <C>           <C>
Operating revenues                              $122,908    $ 115,442    $ 496,779     $442,039

Cost & expenses:
    Operations and maintenance                    52,222       45,505      203,088      178,345
    Depreciation                                  15,857       13,272       60,747       54,564
    Amortization                                   1,114        1,204        4,741        4,300
    Taxes other than income taxes                  7,663        6,141       31,696       27,596
                                                --------    ---------    ---------     --------
Total                                             76,856       66,122      300,272      264,805
                                                --------    ---------    ---------     --------

Operating income                                  46,052       49,320      196,507      177,234

Other expense (income):
    Interest expense, net                         13,447       13,095       52,062       48,679
    Allowance for funds used during construction    (950)        (276)      (2,447)      (2,304)
    Gain on sale of other assets                    (595)        (305)      (1,177)      (1,272)
                                                --------    ---------    ---------     --------
Income before income taxes                        34,150       36,806      148,069      132,131
Provision for income taxes                        12,000       14,332       56,913       52,124
                                                --------    ---------    ---------     --------
Net income                                       $22,150     $ 22,474     $ 91,156      $80,007
                                                ========    =========    =========     ========

Net income                                       $22,150     $ 22,474     $ 91,156      $80,007
Other comprehensive income (loss), net of tax:
    Minimum pension liability adjustment          (1,340)      (1,742)      (1,340)      (1,742)
    Unrealized gain on securities                      -            -            -           59
    Reclassification adjustment for gains
        reported in net income                         -            -            -         (230)
                                                --------    ---------    ---------     --------
Comprehensive income                             $20,810     $ 20,732     $ 89,816      $78,094
                                                ========    =========    =========     ========

Net income per common share:
   Basic                                          $ 0.17       $ 0.18       $ 0.72       $ 0.64
   Diluted                                        $ 0.17       $ 0.18       $ 0.71       $ 0.64

Average common shares outstanding:
   Basic                                         128,016      125,797      127,364      124,329
                                                ========    =========    =========     ========
   Diluted                                       129,828      127,285      129,206      125,710
                                                ========    =========    =========     ========
</TABLE>


                                                                               4
<PAGE>

              Aqua America, Inc. and Subsidiaries
             Condensed Consolidated Balance Sheets
                   (In thousands of dollars)
                          (Unaudited)
<TABLE>
<CAPTION>
                                                                 December 31,          December 31,
                                                                     2005                  2004
                                                                 ------------          ------------
<S>                                                              <C>                   <C>
Net property, plant and equipment                                 $2,279,950            $2,069,812
Current assets                                                        89,956                91,203
Regulatory assets and other assets                                   256,819               194,359
                                                                  ----------            ----------
                                                                  $2,626,725            $2,355,374
                                                                  ==========            ==========

Common stockholders' equity                                       $  811,923            $  747,231
Long-term debt, excluding current portion                            878,438               784,461
Current portion of long-term debt and loans payable                  163,150               125,005
Other current liabilities                                            100,189                89,425
Deferred credits and other liabilities                               673,025               609,252
                                                                  ----------            ----------
                                                                  $2,626,725            $2,355,374
                                                                  ==========            ==========
</TABLE>

















                                                                               5
<PAGE>


Aqua America, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP financial measures


(GAAP refers to accounting principles generally accepted in the United States)

                                                         FOURTH
                                                        QUARTER          YEAR
                                                           2005          2005

                                                        ---------------------
Net income per common share (GAAP financial
  measure) - diluted                                     $ 0.17        $ 0.71
                                                        =====================

                                                         FOURTH
                                                        QUARTER          YEAR
                                                           2004          2004
                                                        ---------------------
Net income per common share (GAAP financial
  measure) - diluted                                     $ 0.18        $ 0.64

Gain on sale of Geneva, Ohio water system,
  net of tax, on a per share basis                         0.02          0.02

Earnings per common share, excluding gain
       on sale of  Geneva, Ohio water system
                                                        ---------------------
       (Non-GAAP financial measure)                      $ 0.16        $ 0.62
                                                        =====================



Reconciliation of GAAP to Non-GAAP financial measures
(In thousands of dollars)
(GAAP refers to accounting principles generally accepted in the United States)
<TABLE>
<CAPTION>
                                                               AS REPORTED:      LESS:
                                                                OPERATIONS      GAIN ON      OPERATIONS
                                                                    AND         SALE OF          AND      EFFICIENCY
                                                     OPERATING  MAINTENANCE    GENEVA,OH     MAINTENANCE     RATIO
YEAR ENDED DECEMBER 31, 2004                          REVENUES   EXPENSES        ASSETS       EXPENSES         %
----------------------------                         ---------  -----------    ---------     -----------  ----------
<S>                                                  <C>        <C>            <C>           <C>          <C>
GAAP financial measure                               $ 442,039   $ 178,345       $ -          $ 178,345      40.3%

Gain on sale of water utility assets                        -           -         2,342           2,342
                                                     ----------------------------------------------------

Non-GAAP financial measure, excluding gain
     on sale of  Geneva, Ohio water system           $ 442,039   $ 178,345      $ 2,342       $ 180,687      40.9%
                                                     ====================================================
</TABLE>

Efficiency ratio is the operations and maintenance expenses as a percentage of
operating revenues. GAAP financial measure includes the gain on sale of the
company's Geneva, OH water utility assets as a component of operations and
maintenance expenses.

                                                                               6
<PAGE>

Aqua America, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP financial measures
(In thousands of dollars)
(GAAP refers to accounting principles generally accepted in the United States)


                                                           FOURTH
                                                          QUARTER          YEAR
                                                             2005          2005
                                                          -------          ----

                                                         ----------------------
Net Income  (GAAP financial measure)                     $ 22,150      $ 91,156
                                                         ======================

                                                           FOURTH
                                                          QUARTER          YEAR
                                                             2004          2004
                                                          -------          ----
Net Income  (GAAP financial measure)                     $ 22,474      $ 80,007

Gain on sale of water utility assets (net of taxes)         1,522         1,522
                                                         ----------------------

Adjusted Income  (Non-GAAP financial measure, excluding
     gain on sale of  Geneva, Ohio water system)         $ 20,952      $ 78,485
                                                         ======================















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