<SUBMISSION>
<ACCESSION-NUMBER>0000863110-00-000018
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20000630
<FILING-DATE>20000814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ARTESIAN RESOURCES CORP
<CIK>0000863110
<ASSIGNED-SIC>4941
<IRS-NUMBER>510002090
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-18516
<FILM-NUMBER>697873
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>664 CHURCHMANS RD
<CITY>NEWARK
<STATE>DE
<ZIP>19702
<PHONE>3024536900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>664 CHURCHMANS RD
<CITY>NEWARK
<STATE>DE
<ZIP>19702
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>0001.htm
<TEXT>

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<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>UNITED STATES</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG>
<P ALIGN="CENTER">Washington, D.C.  20549</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></STRONG></FONT><FONT SIZE="-1"><STRONG>FORM 10-Q</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(Mark One)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">X&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">EXCHANGE ACT OF 1934</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">For the quarterly period ended June 30, 2000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">or</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXCHANGE ACT OF 1934</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the transaction period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Commission file number 0-18516</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">
<P ALIGN="CENTER">(exact name of registrant as specified in its charter)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">State or other jurisdiction of incorporation or organization: Delaware</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">I.R.S. Employer Identification Number: 51-0002090</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Address of principal executive officers: 664 Churchmans Road, Newark, Delaware</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Zip Code: 19702</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1">Registrant's telephone number, including area code: (302) 453-6900</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">required to be filed by Section 13 or 15(d) of the Securities Exchange Act of</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">1934 during the preceding 12 months (or for such shorter period that the</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">registrant was required to file such reports), and (2) has been subject to</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;X Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July 31, 2000, 1,615,216 shares and 391,824 shares of Class A</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Non-Voting Common Stock and Class B Common Stock, respectively, were</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">outstanding.</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">INDEX TO FORM 10-Q</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Part I - Financial Information:</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">Page(s)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 1 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Financial Statements</STRONG></FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Consolidated Balance Sheet -</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">June 30, 2000 and December 31, 1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">3-4</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Consolidated Statement of Income for</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">the quarters ended June 30, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">4</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Consolidated Statement of Income for</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">the six months ended June 30, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">5</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Consolidated Statement of Retained Earnings</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">for the six months ended June 30, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">6</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Consolidated Statement of Cash Flows for the</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">six months ended June 30, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">6-7</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Notes to the Consolidated Financial Statements</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">8-10</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 2 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Management's Discussion and Analysis of</STRONG></FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Financial Condition</STRONG> <STRONG>and</STRONG> <STRONG>Results of Operations</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">10-13</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 3 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Quantitative and Qualitative Disclosures about</STRONG></FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Market Risk</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">13</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Part II - Other Information:</STRONG></FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 1 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Legal Proceedings</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 2 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Changes in Securities</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 3 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Defaults Upon Senior Securities</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 4 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Submission of Matters to a Vote of</STRONG> <STRONG>Security Holders</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 5 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Other Information</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Item 6 -</STRONG></FONT></TD>
<TD><FONT SIZE="-1"><STRONG>Exhibits and Reports on Form 8-K</STRONG></FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">14-16</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"><STRONG>Signatures</STRONG>	</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">17</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">Part I - Financial Information</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">Item I - Financial Statements</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER"><STRONG>CONSOLIDATED BALANCE SHEET</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">(In thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">Unaudited</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">June 30, 2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">December 31, 1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">-----------------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">-----------------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">ASSETS</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Utility plant, at original cost</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;less accumulated depreciation</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$128,896</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$122,481</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Current assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">257</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">122</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,110</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,335</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Unbilled operating revenues</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,708</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,007</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Materials and supplies-at cost</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on FIFO basis</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">659</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">710</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">307</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Prepaid property taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 1</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">548</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">642</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">306</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">6,684</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6,028</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Other assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Non-utility property (less accumulated</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation 2000-$163;1999-$159)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">270</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">273</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Investment in ETD</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">17</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Other deferred assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,002</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,092</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">1,289</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,365</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Regulatory assets, net</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,519</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,608</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">$139,388</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$132,482</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=======</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">LIABILITIES AND STOCKHOLDERS' EQUITY</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">Stockholders' equity</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Common stock</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;2,007</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;1,998</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">24,350</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">24,153</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6,028</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">5,933</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Preferred stock</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">272</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">272</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">32,657</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">32,356</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Preferred stock-mandatorily redeemable,</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;net of current portion</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">300</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">400</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Long-term debt, net of current portion</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">33,966</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">34,529</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">66,923</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">67,285</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Current liabilities</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Notes payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">13,636</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">7,617</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Current portion of long-term debt</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,126</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,136</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Current portion of mandatorily</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;redeemable preferred stock</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">100</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">100</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,893</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">3,958</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Overdraft payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,042</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">581</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;State and federal taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">850</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">665</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Interest accrued</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">682</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">655</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Customer deposits</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">415</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">388</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Dividends payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">15</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Reserve for temporary rate increase</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,413</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">720</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">988</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">719</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">23,160</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">16,539</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Deferred credits and other liabilities</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Net advances for construction</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">18,692</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">18,749</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Postretirement benefit obligation</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,495</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,538</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Deferred investment tax credits</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">947</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">964</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">3,031</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,776</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">24,165</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">24,027</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Net contributions in aid of construction</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">25,140</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">24,631</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">$139,388</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$132,482</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=======</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1">See notes to the consolidated financial statements.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER"><STRONG>CONSOLIDATED STATEMENT OF INCOME</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">Unaudited</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">(In thousands, except share and per share amounts)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   For the Quarter</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING REVENUES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Water sales</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;7,116</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;6,688</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Other utility operating revenue</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">112</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">106</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Non utility revenue</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">11</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">7,239</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6,794</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING EXPENSES</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Utility operating expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">3,586</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">3,908</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Related party expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">45</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">57</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Non-utility operating expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 14</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 13</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 650</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">632</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;State and federal income taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">673</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">450</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Property and other taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">388</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">404</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">5,356</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">5,464</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING INCOME</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,883</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,330</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">92</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">54</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER INCOME (EXPENSE), NET</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">9</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">13</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME BEFORE INTEREST CHARGES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,984</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,397</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INTEREST CHARGES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">978</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">721</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,006</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">676</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">DIVIDENDS ON PREFERRED STOCK</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">15</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">17</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME APPLICABLE TO COMMON STOCK</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;991</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;659</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME PER COMMON SHARE:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.49</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.32</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.48</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.32</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH DIVIDEND PER COMMON SHARE</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;.275</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.26</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">AVERAGE COMMON SHARES OUTSTANDING</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,005,692</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,040,160</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,044,215</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,074,320</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER"><STRONG>CONSOLIDATED STATEMENT OF INCOME</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">Unaudited</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">(In thousands, except share and per share amounts)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   For the Six Months</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING REVENUES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Water sales</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;13,348</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;12,544</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Other utility operating revenue</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">218</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">189</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Non utility revenue</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">21</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">13,587</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">12,733</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING EXPENSES</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Utility operating expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">7,584</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">7,433</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Related party expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">90</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">113</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Non-utility operating expenses</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">21</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">19</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,286</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,164</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;State and federal income taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">847</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">715</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Property and other taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">803</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">794</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">10,631</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">10,238</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING INCOME</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,956</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,495</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">152</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">79</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER INCOME (EXPENSE), NET</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">19</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">26</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME BEFORE INTEREST CHARGES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">3,127</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,600</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INTEREST CHARGES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,869</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,529</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,258</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,071</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">DIVIDENDS ON PREFERRED STOCK</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">32</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">54</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME APPLICABLE TO COMMON STOCK</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;1,226</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;1,017</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME PER COMMON SHARE:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.61</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.52</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.60</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.51</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH DIVIDEND PER COMMON SHARE</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;.545</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.52</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">AVERAGE COMMON SHARES OUTSTANDING</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,003,460</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,958,271</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,043,997</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,992,591</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>CONSOLIDATED STATEMENT OF RETAINED EARNINGS</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">Unaudited</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">(In thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   For the Six Months</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Balance, beginning of period</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;5,933</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;7,785</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Net income</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,258</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,071</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">7,191</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">8,856</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Less: Dividends</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,137</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,080</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock-Acquisition Adjustment</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">26</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,766</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">-------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Balance, end of period</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;6,028</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;5,010</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=======</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> See notes to the consolidated financial statements.</FONT></P>

<P><FONT SIZE="-1">  </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="3">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER"><STRONG>CONSOLIDATED STATEMENT OF CASH FLOWS</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">Unaudited</FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="3"><FONT SIZE="-1">
<P ALIGN="CENTER">(In thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   For the Six Months</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">   Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH FLOWS FROM OPERATING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,258</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,071</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Adjustments to reconcile net income to net</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;cash provided by operating activities:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,207</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,109</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Deferred income taxes, net</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(69)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">547</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Allowance for funds used during construction</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(152)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">   (79)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Changes in Assets and Liabilities:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">225</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">21</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Unbilled operating revenue</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(701)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(464)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Materials and supplies</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">51</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 43</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Accrued state and federal income taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 185</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">159</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Prepaid property taxes</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">547</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">550</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(336)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">56</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Other deferred assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">90</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 14</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Regulatory assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 89</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">244</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Postretirement benefit obligation</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(43)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(42)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(1,065)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,070</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Interest accrued</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT"> 27</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(351)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Customer deposits and other, net</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,004</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">96</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET CASH PROVIDED BY OPERATING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,317</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">4,044</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH FLOWS FROM INVESTING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Capital expenditures (net of AFUDC)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(7,738)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(10,167)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Proceeds from sale of assets</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">10</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET CASH USED IN INVESTING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(7,728)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(10,161)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH FLOW FROM FINANCING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Net borrowings (repayments) under line of credit</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agreement</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6,019</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(1,718)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Overdraft payable</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">461</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">301</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Net advances and contributions in aid of construction</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">694</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,160</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Net proceeds from stock transactions</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">206</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">7,803</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Dividends</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(1,137)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(1,063)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Repayment of long-term debt</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(581)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(278)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Principal payments under capital lease obligations</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(16)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(25)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Retirement of preferred stock</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(100)</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(100)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET CASH PROVIDED BY FINANCING ACTIVITIES</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">5,546</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">6,080</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">135</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">(37)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">122</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">114</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">--------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">--------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH AND CASH EQUIVALENTS AT END OF PERIOD</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;257</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Supplemental Disclosures of Cash Flow Information:</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Interest paid</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;1,797</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,865</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">========</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;Income taxes paid</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;550</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">========</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1">See Notes to the consolidated financial statements.</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 1 - GENERAL</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited financial statements of Artesian Resources Corporation and its
wholly-owned subsidiaries (the Company or Artesian Resources), including its principal
operating company, Artesian Water Company, Inc. (Artesian Water), presented herein
have been prepared in accordance with the instructions to Form 10-Q and do not include
all of the information and note disclosures prescribed by generally accepted
accounting principles.  These statements should be read in conjunction with the
consolidated financial statements and notes thereto for the year ended December 31,
1999 included in the Company's Annual Report on Form 10-K.  The accompanying
consolidated financial statements have not been audited by independent accountants in
accordance with generally accepted auditing standards, but have been reviewed by
independent accountants, and, in the opinion of management such consolidated financial
statements include all adjustments, consisting only of normal recurring adjustments,
necessary to fairly summarize the Company's financial position and results of
operations.  The results of operations for the interim periods may not be indicative
of the results that may be expected for the entire year.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 2 - REGULATORY ASSETS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain expenses, which are recoverable through rates, without a return on
investment, as permitted by the State of Delaware Public Service Commission (PSC), are
deferred and amortized during future periods using various methods.  Expenses related
to rate proceedings are amortized on a straight-line basis over a period of two to
five years.  The post retirement benefit obligation, which is being amortized over
twenty years is adjusted for the difference between the net periodic post retirement
benefit costs and the cash payments.  The deferred income taxes will be amortized over
future years as the tax effects of temporary differences previously flowed through to
the customer reverse. Regulatory assets, net of amortization, comprise:</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD>
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1">June 30, 2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">December 31, 1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">--------------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">-----------------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">(in thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Postretirement benefit obligation</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$1,495</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;1,538</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Deferred income taxes recoverable</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;&nbsp; in future rates</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">665</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">680</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Expense of rate proceedings</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">359</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">390</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">---------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">---------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;2,519</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;2,608</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">=========</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=========</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 3 - DEBT</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 4, 1999, Artesian repurchased 126,353 shares of Class B Common Stock and
24,165 shares of Class A Non-Voting Common Stock from Ellis D. and Helena C. Taylor in
exchange for a promissory note (the "Note") in the principal amount of $4,450,000
representing the purchase price of the stock, with a discounted present value of
$4,307,000.  The Note is payable quarterly, on a calendar basis, over a four year
period and in sixteen equal principal installments of $278,125 commencing on June 30,
1999.  The outstanding balance on the Note bears interest in an amount computed based
on the quarterly dividend the Taylors would have received on the Stock transferred to
Artesian but not yet paid for by Artesian.  In addition, the principal installment is
adjusted on a quarterly basis to reflect increases in the book value per common share
of the Company as reported in its most recent quarterly financial statement
distributed to stockholders prior to the quarterly payment. Such amounts, if any,
represent contingent purchase price of the stock and will be charged to retained
earnings.  At June 30, 2000, Artesian had $3,059,375 outstanding under this promissory
note.</FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 4 - NON-UTILITY OPERATING EXPENSES</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Artesian Wastewater, began operating a small wastewater treatment spray
irrigation facility owned by a municipality in Southern New Castle County Delaware in
1999.  Artesian Wastewater is paid a lump sum fee to maintain operations at the
facility. The expenses associated with the provision of this service are categorized
as non-utility operating expenses, because the cost of wastewater service is not
regulated by the PSC in Delaware.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 5 - RELATED PARTY TRANSACTIONS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The office building and shop complex utilized by Artesian Water are leased at
an average annual rental of $180,000 from a partnership, White Clay Realty, in which
Dian Taylor an officer and director of Artesian Resources' is a partner. The lease
expires in December, 2002, with provisions for renewals for two five-year periods
thereafter.  Management believes that the payments made to White Clay Realty for the
lease of its office building and shop complex are comparable to what Artesian Water
would have to pay to unaffiliated parties for similar facilities.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Artesian Water leased certain parcels of land for water production wells from
Glendale Enterprises Limited, a company wholly-owned by Ellis D. Taylor, the father of
William Taylor a director, at an annual rental of $44,000. Renewal of the lease has
been automatic from year to year unless 60 days' written notice is given by either
party before the end of the year's lease. Artesian Water received notice that Glendale
Enterprises Limited desires to discontinue the lease for the well sites. Artesian
Water is negotiating the purchase of the land rights for the well sites associated
with the Glendale Lease.   Artesian Water has received a claim from an unrelated third
party with regard to lease payments made since 1986 in this matter and the current
ownership of the easements, which the Company intends to vigorously contest.
However, if the claim is upheld, subject to the amount and timing of potential
recoveries by Artesian against Glendale Enterprises, if any, such amounts could be
material to the Statement of Income.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses associated with related party transactions are as follows:</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1">For the Quarter</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">For the Six Months</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">Ended June 30,</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">(in thousands)</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">(in thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">White Clay Realty</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;45</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;46</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;90</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;91</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Glendale Enterprises</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;11</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;22</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">------</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">------</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">$&nbsp;&nbsp;&nbsp;&nbsp;45</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;57</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;90</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;113</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">======</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">======</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 6 - NET INCOME PER COMMON SHARE AND EQUITY PER COMMON SHARE</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic net income per share is based on the weighted average number of common
shares outstanding.  Diluted net income per share is based on the weighted average
number of common shares outstanding and potentially dilutive effect of employee stock
options.  The following table summarizes the shares used in computing basic and
diluted net income per share: </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"><FONT SIZE="-1"></FONT><FONT SIZE="-1">For the Quarter</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">For the Six Months</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">Ended June 30,</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">Ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2000</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1999</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD>
<P ALIGN="RIGHT"></FONT><FONT SIZE="-1">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD COLSPAN="2">
<P ALIGN="CENTER"></FONT><FONT SIZE="-1">(in thousands)</FONT></TD>
<TD COLSPAN="2"><FONT SIZE="-1">
<P ALIGN="CENTER">(in thousands)</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Average common shares outstanding during</FONT></TD>
<TD><FONT SIZE="-1"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;the period for Basic computation</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,006</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,040</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,003</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,958</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Dilutive effect of employee stock options</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">38</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">34</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">41</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">35</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">-----</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">-----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">-----</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Average common shares outstanding during</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></TD>
<TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">&nbsp;&nbsp;the period for Diluted computation</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,044</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,074</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">2,044</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">1,993</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD ALIGN="RIGHT"></FONT><FONT SIZE="-1">=====</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">=====</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=====</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="RIGHT">=====</FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity per common share was $16.14 and $15.57 at June 30, 2000 and 1999,
respectively.  These amounts were computed by dividing common stockholders' equity,
excluding preferred stock, by the number of shares of common stock outstanding on June
30, 2000 and 1999, respectively.</FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 7 - IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 1998, FASB issued Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities," which established
accounting and reporting standards for derivative instruments and hedging activities.
In June 1999, FASB issued Statement of Financial Accounting Standards No. 137,
"Accounting for Derivative Instruments and Hedging Activities - Deferral of the
Effective Date of FASB Statement No. 133," moving the effective date for this standard
from fiscal years beginning after June 15, 1999 to fiscal years beginning after June
15, 2000.  In June 2000, FASB issued Statement of Financial Accounting Standards No.
138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities,"
which addresses and amends SFAS No. 133 for a limited number of issues causing
implementation difficulties for entities applying SFAS No. 133. We plan to adopt SFAS
No. 133 incorporating SFAS No. 138 amendments effective January 1, 2001.  Our adoption
of this statement will not have a material impact on our financial condition or
results of operations.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>NOTE 8 - RATE PROCEEDINGS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 30, 1999, Artesian Water filed a petition with the Delaware Public
Service Commission to implement new rates to meet a requested increase in revenue of
approximately 10.35%, or $2.7 million on an annualized basis. On September 30, 1999,
Artesian Water filed a supplemental rate request which reduced the Company's increase
from $2.7 million to approximately $2.5 million. Artesian Water is permitted to
collect a temporary increase not in excess of $2.5 million on an annualized basis,
under bond, until the level of permanent rates are decided by the Delaware Public
Service Commission.  The temporary rates became effective on July 1, 1999. Of the
amount collected, $1,413,000 was reserved at June 30, 2000, pending the final outcome
of the rate proceeding.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 2</STRONG></FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG>FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE PERIOD ENDED</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><STRONG>JUNE 30,2000</STRONG></FONT></TD></TR></TABLE>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>RESULTS OF OPERATIONS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><U>Overview</U></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Artesian Water, our principal subsidiary, is the oldest and largest regulated
public water utility in the State of Delaware and has been providing water within the
state since 1905.  We distribute and sell water to residential, commercial,
industrial, governmental, municipal and utility customers throughout Delaware.  As of
June 30, 2000, we had approximately 64,000 metered customers and served a population
of approximately 200,000, representing approximately 27% of Delaware's total
population.  We believe that we have a reputation for providing water and service of
superior quality to our customers.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Delaware Public Service Commission regulates Artesian Water's rates charged
for water service, the sale and issuance of securities, mergers and other matters.  We
periodically seek rate increases to cover the cost of increased operating expenses,
increased financing expenses due to additional investments in utility plant and other
costs of doing business.  Increases in customers served by Artesian Water also
contribute to increases in our operating revenues, although such increases have been
offset slightly by reductions in customers' individual usage.  We continue our efforts
to contain expenses and improve efficiencies which contribute to increases in our
operating income.  Our business is also subject to seasonal fluctuations and the
effects of weather.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><U>Operating Revenues</U></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We realized 98.3% of our total revenue in the second quarter of 2000 from the
sale of water.  Total operating revenue increased $445,000, or 6.5%, for the quarter
ended June 30, 2000 compared to the second quarter of 1999. Total operating revenue
increased $854,000 or 6.7% for the six months ended June 30, 2000 compared to the six
months ended June 30, 1999. The increase in operating revenues for both the quarter
and six month periods ended June 30, 2000 is attributable to the temporary rate
increase placed into effect July 1, 1999.  Additional revenues of $544,000 from the
temporary rates have been recorded as water sales revenue this year.  The Company does
not expect the final approved level of rate relief to be significantly higher than the
portion of temporary rates currently being recorded as revenue.  Artesian anticipates
a final decision on the rate filing request by the Delaware Public Service Commission
before the end of the summer.  Also contributing to the increase in water sales
revenues was a 3.7% increase in the number of metered customers served by Artesian
over the past year.  However, the frequency of rainfall events through July 2000 have
significantly reduced customer outdoor water usage and will have a negative impact on
water sales revenues.</FONT></P>

<P><FONT SIZE="-1"> 				</FONT></P>

<P><FONT SIZE="-1"><U>Operating Expenses</U></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating and maintenance expenses decreased $333,000 for the quarter ended
June 30, 2000, from the quarter ended June 30, 1999,  primarily due to the timing of
water purchased under annual contractual obligations.  Purchased water expense for the
second quarter 2000 was reduced by $299,000 from the same period in 1999.  The
reduction in purchased water expense, however, will not continue through the remainder
of the year, as the Company will need to purchase more water than last year during the
third and fourth quarters to fulfill minimum contractual obligations.  Expenses in the
second quarter of 1999 were increased due to the recognition costs associated with the
1997 rate case.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operation and maintenance expenses increased $130,000 for the six months ended
June 30, 2000 over the six months ended June 30, 1999, primarily due to increases in
payroll and benefits due to additional employees and wage increases. The ratio of
operating and maintenance expense to total revenue was 56.6% for the six months ended
June 30, 2000, as compared to 59.4% for the same period in 1999.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense increased $122,000, or 10.5%, for the six
months ended June 30, 2000, compared to the comparable period of 1999, due to capital
additions.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense increased $223,000, or 49.6% for the quarter ended June 30,
2000, and increased $132,000 for the six months ended June 30, 2000, due to increased
profitability.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><U>Interest Charges</U></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest charges increased $257,000, or 35.6%, for the second quarter of 2000,
compared to the second quarter of 1999, and increased $340,000 for the six months
ended June 30, 2000 versus the six months ended June 30, 1999, due to higher average
borrowings on the lines of credit incurred to finance investment in utility plant.  In
addition, the second quarter and six months ended June 2000 reflects interest on the
note payable for the repurchase of stock that occurred in the second quarter of 1999.
Year end results will be negatively impacted as a result of increased interest expense
expected to continue through the third and fourth quarters.  The Company has made
investments of $8.3 million in utility plant since June 30, 1999.  These investments
were made after the April 30, 1999 filing still pending before the Delaware Public
Service Commission, and are not reflected in rate base.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><U>Net Income</U></FONT></P>

<P><FONT SIZE="-1"> <U></U></FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the quarter ended June 30, 2000, Artesian Resources recorded net income of
$1,006,000 which represents a $330,000, or a 48.8%, increase as compared to net income
of $676,000 for the quarter ended June 30, 1999. For the six months ended June 30,
2000 Artesian Resources recorded net income of $1,258,000 which represents a $187,000,
or a 17.5% increase as compared to net income of $1,071,000 for the six months ended
June 30, 1999.</FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG> LIQUIDITY AND CAPITAL RESOURCES</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary sources of liquidity for the first six months of 2000 were $6.0
million provided by borrowings on our line of credit. Cash flow from operating
activities was reduced to $2.3 million in the first six months of 2000 from $4.0
million for the first six months of the prior year primarily by large payments on
Accounts Payable due to contractors working on our system expansion in Southern
Delaware and to an estimated income tax payment of $550,000.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on our sources of liquidity for investments in our utility plant and
systems and to meet our various payment obligations.  We currently estimate that our
aggregate investments in our utility plant and systems for the remainder of 2000 will
be approximately $7.2 million. These investments will be financed by our operations
and short-term borrowings under our revolving credit agreements.  Our total
obligations related to dividend and sinking fund payments on preferred stock, interest
payments on indebtedness, rental payments and water service interconnection agreements
for the remainder of 2000 are anticipated to be approximately $3.5 million and will be
financed with cashflow from our operating activities. </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Developer advances and contributions in aid of construction are used for the
installation of mains and hydrants in new developments. In addition to the $7.2
million referred to above, $2.6 million of capital expenditures will be financed by
developers during the remainder of 2000.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2000, we had a working capital deficit of $16.5 million mainly due
to borrowings on our lines of credit incurred to finance investment in utility plant.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2000, Artesian Water had lines of credit with three separate
financial institutions totaling $35.0 million to meet its temporary cash requirements.
These revolving credit facilities are unsecured.  As of June 30, 2000, we had $21.4
million of available funds under these lines.  The interest rate for borrowings under
each of these lines is the London Interbank Offering Rate plus 1.0% or, at our
discretion, the bank's federal funds rate plus 1.0%.  All the facilities are reviewed
annually by each bank for renewal.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 13, 1999, Artesian Resources issued 325,000 shares of Class A
Non-Voting Common Stock at $25.00 per share in an underwritten public offering, and
the net proceeds of approximately $7.5 million were used to reduce Artesian Water's
borrowing on the lines of credit incurred to finance investment in utility plant.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>CAUTIONARY STATEMENT</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to historical facts or statements of current condition, this press
release contains forward-looking statements that involve risks and uncertainties.
These risks and uncertainties could cause Artesian's actual results to differ
materially from the presently anticipated results and expectations expressed in these
forward-looking statements.  These uncertainties include, but are not limited to, the
final results of Artesian's current rate proceeding before the Delaware Public Service
Commission, the level of capital expenditure for plant investment in 2000, the weather
conditions in Delaware during the balance of 2000, material changes in demand from
larger customers, availability of labor, and other economic, business, competitive
and/or regulatory factors affecting Artesian's businesses generally.  Given these
risks and uncertainties, actual results could differ materially from these forward-looking statements and they may prove not to be correct.  Furthermore, Artesian does
not intend (and is not obligated) to update publicly any forward-looking statements.
This discussion is permitted by the Private Securities Litigation Reform Act of 1995.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"> <STRONG>ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>PART II - OTHER INFORMATION</STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 1 - LEGAL PROCEEDINGS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 30, 1999, Artesian Water filed a petition with the PSC to implement
new rates to meet an increased revenue requirement of approximately 10.35%, or $2.7
million on an annualized basis. On September 30, 1999, Artesian Water filed a
supplemental rate request which reduced the Company's increase from $2.7 million to
approximately $2.5 million.  Artesian Water is permitted to collect a temporary
increase not in excess of $2.5 million on an annualized basis, under bond, until
permanent rates are approved by the PSC.  Such temporary rates were placed in effect
by Artesian July 1, 1999.  Artesian anticipates a decision on its current rate
proceeding prior to the end of the third quarter.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no other material legal proceedings pending at this date.<STRONG></STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 2 - CHANGES IN SECURITIES</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.       </FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 3 - DEFAULTS UPON SENIOR SECURITIES</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</FONT></P>

<P><FONT SIZE="-1"><STRONG> </STRONG></FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 5 - OTHER INFORMATION</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1"><STRONG>ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No reports on Form 8-K were filed for the quarter ended June 30, 2000.</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD COLSPAN="2">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>INDEX TO EXHIBITS</STRONG></FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"><U>Exhibit Number</U></FONT></TD>
<TD><FONT SIZE="-1"><U>Description</U></FONT></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"><FONT SIZE="-1">3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Articles of Incorporation and By-Law</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">
<P ALIGN="CENTER">(3.1)</FONT></TD>
<TD><FONT SIZE="-1">Restated Certificate of Incorporation of the Company effective</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">May 26, 1995, incorporated by reference to the exhibit filed</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">with Artesian Resources Corporation Form 10-Q for the quarter</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">ended June 30, 1995.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(3.2)</FONT></TD>
<TD><FONT SIZE="-1">Restated Certificate of Incorporation of the Company effective</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">April 26, 1994, including Certificate of Correction incorporated</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">by reference to the exhibit filed with the Artesian Resources</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Corporation Form 10-Q for the quarter ended March 31, 1994.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(3.3)</FONT></TD>
<TD><FONT SIZE="-1">By-Laws of the Company effective April 27, 1993, incorporated by</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">reference to the exhibit filed with the Artesian Resources</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Corporation Form 8-K filed April 27, 1993.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Instruments Defining the Rights of Security Holders, Including Indentures</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(4.1)</FONT></TD>
<TD><FONT SIZE="-1">Thirteenth and Fourteenth Indentures dated as of June 17, 1997,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">between Artesian Water Company, Inc., subsidiary of Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation, and Wilmington Trust Company, as Trustee.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Incorporated by reference to the exhibits filed with Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation Form 10-Q for the quarter ended June 30,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">1997.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(4.2)</FONT></TD>
<TD><FONT SIZE="-1">Twelfth Supplemental Indenture dated as of December 5, 1995,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">between Artesian Water Company, Inc. subsidiary of Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation, and Wilmington Trust Company, as Trustee.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Incorporated by reference to the exhibit filed with the Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation Annual Report on Form 10-K for the year</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">ended December 31, 1995.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(4.3)</FONT></TD>
<TD><FONT SIZE="-1">Eleventh Supplemental Indenture dated as of February 16, 1993,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">between Artesian Water Company, Inc., subsidiary of Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation, and Principal Mutual Life Insurance</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Company.  Incorporated by reference to the exhibit filed with</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Artesian Resources Corporation Annual Report on Form 10-K for the</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">year ended December 31, 1992.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(4.4)</FONT></TD>
<TD><FONT SIZE="-1">Tenth Supplemental Indenture dated as of April 1, 1989, between</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Artesian Water Company, Inc., subsidiary of Artesian Resources</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Corporation, and Wilmington Trust Company, as Trustee.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Incorporated by reference to the exhibit filed with Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation Registration Statement on Form 10 filed</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">April 30, 1990, and as amended by Form 8 filed on June 19, 1990.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(4.5)</FONT></TD>
<TD><FONT SIZE="-1">Other Supplemental Indentures with amounts authorized less than</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">ten percent of the total assets of the Company and its</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">subsidiaries on a consolidated basis will be furnished upon</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">request.  Incorporated by reference to the exhibit filed with</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Artesian Resources Corporation Registration Statement on Form 10</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">filed April 30, 1990, and as amended by Form 8 filed on June 19,</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">1990.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD COLSPAN="2"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material Contracts</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(10.1)</FONT></TD>
<TD><FONT SIZE="-1">Amended and Restated Artesian Resources Corporation 1992</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Non-Qualified Stock Option Plan, as amended, filed herewith.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(10.2)</FONT></TD>
<TD><FONT SIZE="-1">Lease dated as of March 1, 1972, between White Clay Realty Company</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">and Artesian Water Company, Inc. incorporated by reference to the</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">exhibit filed with Artesian Resources Corporation Registration</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Statement on Form 10 filed April 30, 1990, and as amended by</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Form 8 filed on June 19, 1990.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(10.3)</FONT></TD>
<TD><FONT SIZE="-1">Artesian Resources Corporation Cash and Stock Bonus Compensation</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Plan for Officers incorporated by reference to the exhibit filed</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">with the Artesian Resources Corporation Form 10-K for the year</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">ended December 31, 1993.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(10.4)</FONT></TD>
<TD><FONT SIZE="-1">Artesian Resources Corporation Incentive Stock Option Plan</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">incorporated by reference to the exhibit filed with the Artesian</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Resources Corporation Annual Report on Form 10-K for the year</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">ended December 31, 1995.</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD>
<P ALIGN="CENTER"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">(10.5)</FONT></TD>
<TD><FONT SIZE="-1">Share Repurchase Agreement dated April 28, 1999, and related</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Promissary Note dated May 4, 1999.</FONT></TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG></STRONG></FONT><FONT SIZE="-1"><STRONG>SIGNATURES</STRONG></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.</FONT></P>

<BR WP="BR1"><BR WP="BR2">
<P ALIGN="CENTER"><FONT SIZE="-1"><STRONG>ARTESIAN RESOURCES CORPORATION</STRONG></FONT></P>

<BR WP="BR1"><BR WP="BR2">
<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT SIZE="-1">08/11/00</FONT></TD>
<TD><FONT SIZE="-1">____________________________</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Dian C. Taylor</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">President, CEO, and Chair of the Board</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Artesian Resources Corporation and Subsidiaries</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></TD>
<TD></TD></TR>
<TR VALIGN="TOP"><TD></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1"></FONT><FONT SIZE="-1">08/11/00</FONT></TD>
<TD><FONT SIZE="-1">____________________________</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">David B. Spacht</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Vice President, Chief Financial Officer, and Treasurer</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1"></TD>
<TD></FONT><FONT SIZE="-1">Artesian Resources Corporation and Subsidiaries</FONT>
</TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">Form 10Q </FONT>

<P><FONT SIZE="-1">June 2000</FONT></TD>
<TD><FONT SIZE="-1"></TD></TR></TABLE>
</P>
<BR WP="BR1"><BR WP="BR2">
<BR WP="BR1"><BR WP="BR2">
<P></FONT><FONT SIZE="-1"><STRONG>EXHIBIT 27 - FINANCIAL DATA SCHEDULE</STRONG></FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<P><FONT SIZE="-1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This schedule contains summary financial information extracted from the
consolidated balance sheets, consolidated statements of income and the consolidated
statement of cash flows from the Company's June 30, 2000 Form 10-Q and is qualified in
its entirety by reference to such financial statements.</FONT></P>

<P><FONT SIZE="-1"> </FONT></P>

<TABLE WIDTH="100%">
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PERIOD TYPE</FONT></TD>
<TD><FONT SIZE="-1">
<P ALIGN="CENTER">3-MOS</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">6-MOS</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">FISCAL YEAR END</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">DEC-31-2000</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">DEC-31-2000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PERIOD END</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">JUN-30-2000</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">JUN-30-2000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">BOOK VALUE</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">
<P ALIGN="CENTER">PER-BOOK</FONT></TD>
<TD ALIGN="CENTER"><FONT SIZE="-1">PER-BOOK</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL NET UTILITY PLANT</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">128,896,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">128,896,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER PROPERTY AND INVEST</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">287,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">287,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL CURRENT ASSETS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6,684,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6,684,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL DEFERRED CHARGES</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3,521,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3,521,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER ASSETS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL ASSETS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">139,388,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">139,388,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">COMMON</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,007,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,007,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CAPITAL SURPLUS PAID IN</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">24,350,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">24,350,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">RETAINED EARNINGS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6,028,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">6,028,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL COMMON STOCKHOLDERS EQ</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">32,385,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">32,385,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PREFERRED MANDATORY</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">300,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">300,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PREFERRED</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">272,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">272,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">LONG TERM DEBT NET</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">32,000,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">32,000,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">SHORT TERM NOTES</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,636,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,636,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">LONG TERM NOTES PAYABLE</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,947,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,947,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">COMMERCIAL PAPER OBLIGATIONS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">LONG TERM DEBT CURRENT PORT</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,112,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,112,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PREFERRED STOCK CURRENT</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">100,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CAPITAL LEASE OBLIGATIONS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">19,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">19,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">LEASES CURRENT</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">14,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER ITEMS CAPITAL AND LIAB</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">57,603,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">57,603,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOT CAPITALIZATION AND LIAB</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">139,388,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">139,388,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">GROSS OPERATING REVENUE</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">7,239,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">13,587,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME TAX EXPENSE</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">673,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">847,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER OPERATING EXPENSES</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">4,683,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">9,784,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL OPERATING EXPENSES</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">5,356,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">10,631,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OPERATING INCOME LOSS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,883,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,956,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">OTHER NET INCOME</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">101,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">171,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">INCOME BEFORE INTEREST EXPEN</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,984,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3,127,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL INTEREST EXPENSE</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">978,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,869,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">NET INCOME</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,006,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,258,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">PREFERRED STOCK DIVIDENDS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">15,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">32,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">EARNINGS AVAILABLE FOR COMM</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">991,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,226,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">COMMON STOCK DIVIDENDS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">551,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">1,091,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">TOTAL ANNUAL INTEREST ON ALL BONDS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,696,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,696,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">CASH FLOW-OPERATIONS</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">3,233,000</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">2,317,000</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">EPS BASIC</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.49</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.61</FONT></TD></TR>
<TR VALIGN="TOP"><TD><FONT SIZE="-1">EPS DILUTED</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.48</FONT></TD>
<TD ALIGN="RIGHT"><FONT SIZE="-1">0.60</FONT></TD></TR></TABLE>
</P>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>2
<FILENAME>0002.txt
<TEXT>

<TABLE> <S> <C>

<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheets, consolidated statements of income and the
consolidated statement of cash flows from the Company's June 30, 2000 Form 10-Q
and is qualified in its entirety by reference to such financial statements.
</LEGEND>

<S>                             <C>                     <C>
<PERIOD-TYPE>                   3-MOS                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-2000             DEC-31-2000
<PERIOD-END>                               JUN-30-2000             JUN-30-2000
<BOOK-VALUE>                                  PER-BOOK                PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                  128,896,000             128,896,000
<OTHER-PROPERTY-AND-INVEST>                    287,000                 287,000
<TOTAL-CURRENT-ASSETS>                       6,684,000               6,684,000
<TOTAL-DEFERRED-CHARGES>                     3,521,000               3,521,000
<OTHER-ASSETS>                                       0                       0
<TOTAL-ASSETS>                             139,388,000             139,388,000
<COMMON>                                     2,007,000               2,007,000
<CAPITAL-SURPLUS-PAID-IN>                   24,350,000              24,350,000
<RETAINED-EARNINGS>                          6,028,000               6,028,000
<TOTAL-COMMON-STOCKHOLDERS-EQ>              32,385,000              32,385,000
<PREFERRED-MANDATORY>                          300,000                 300,000
<PREFERRED>                                    272,000                 272,000
<LONG-TERM-DEBT-NET>                        32,000,000              32,000,000
<SHORT-TERM-NOTES>                          13,636,000              13,636,000
<LONG-TERM-NOTES-PAYABLE>                    1,947,000               1,947,000
<COMMERCIAL-PAPER-OBLIGATIONS>                       0                       0
<LONG-TERM-DEBT-CURRENT-PORT>                1,112,000               1,112,000
<PREFERRED-STOCK-CURRENT>                      100,000                 100,000
<CAPITAL-LEASE-OBLIGATIONS>                     19,000                  19,000
<LEASES-CURRENT>                                14,000                  14,000
<OTHER-ITEMS-CAPITAL-AND-LIAB>              57,603,000              57,603,000
<TOT-CAPITALIZATION-AND-LIAB>              139,388,000             139,388,000
<GROSS-OPERATING-REVENUE>                    7,239,000              13,587,000
<INCOME-TAX-EXPENSE>                           673,000                 847,000
<OTHER-OPERATING-EXPENSES>                   4,683,000               9,784,000
<TOTAL-OPERATING-EXPENSES>                   5,356,000              10,631,000
<OPERATING-INCOME-LOSS>                      1,883,000               2,956,000
<OTHER-INCOME-NET>                             101,000                 171,000
<INCOME-BEFORE-INTEREST-EXPEN>               1,984,000               3,127,000
<TOTAL-INTEREST-EXPENSE>                       978,000               1,869,000
<NET-INCOME>                                 1,006,000               1,258,000
<PREFERRED-STOCK-DIVIDENDS>                     15,000                  32,000
<EARNINGS-AVAILABLE-FOR-COMM>                  991,000               1,226,000
<COMMON-STOCK-DIVIDENDS>                       551,000               1,091,000
<TOTAL-INTEREST-ON-BONDS>                    2,696,000               2,696,000
<CASH-FLOW-OPERATIONS>                       3,233,000               2,317,000
<EPS-BASIC>                                       0.49                    0.61
<EPS-DILUTED>                                     0.48                    0.60


</TABLE>
</TEXT>
</DOCUMENT>
</SUBMISSION>
