PHILADELPHIA SUBURBAN CORPORATION

                          CUSTOMER STOCK PURCHASE PLAN


                  Prospectus Supplement Dated July 26, 1996 to
                        Prospectus Dated January 26, 1996



                  This Prospectus Supplement amends certain information
contained in the Prospectus dated January 26, 1996 (the "Prospectus") of
Philadelphia Suburban Corporation (the "Company") by which shares of the
Company's Common Stock, par value $.50, are offered for sale pursuant to the
Company's Customer Stock Purchase Plan. Each such amendment is a result of the
3-for-2 split of the Common Stock effected on July 10, 1996.

                  1. The sixth word of the seventh paragraph of the cover page
of the Prospectus, "849,049" is hereby replaced in its entirety with
"1,273,574."

                  2. The thirteenth word of the first line of the first
paragraph under "DESCRIPTION OF CAPITAL STOCK -- Authorized and Outstanding
Stock" on page 9 of the Prospectus, "21,770,819", is hereby replaced in its
entirety with "41,770,819."

                  3. The second word of the second line of the first paragraph
under "DESCRIPTION OF CAPITAL STOCK -- Authorized and Outstanding Stock" on page
9 of the Prospectus, "20,000,000", is hereby replaced in its entirety with
"40,000,000."

                  4. The first six words of the first line of the second
paragraph under "DESCRIPTION OF CAPITAL STOCK -- Authorized and Outstanding
Stock" on page 9 of the Prospectus, "As of December 31, 1995, 12,188,623", are
hereby replaced in their entirety by the following: "As of June 30, 1996,
12,558,184."

                  5. The last word of the second line of the second paragraph
under "DESCRIPTION OF CAPITAL STOCK -- Authorized and Outstanding Stock" on page
9 of the Prospectus, "527,519", is hereby replaced in its entirety with
"825,525."

                  6. A new sentence is added on the bottom of page 11 of the
Prospectus as follows: "None of the data set forth in the table above reflects a
3-for-2 stock split of the Common Stock which was effected on June 18, 1996."

                  7. The first three words of the first line of the first
paragraph on page 12 of the Prospectus, "On January 12, 1996" are hereby
replaced in their entirety with "On June 28, 1996" and the sixteenth word of
such line, "$20 7/8" is hereby replaced in its entirety with "$24 3/4."

                  8. The fourth word of the third line of the first paragraph on
page 12 of the Prospectus, "5.6%" is hereby replaced in its entirety with
"4.9%."