N-CSR 1 delainsuredfunds_ncsr.htm CERTIFIED SHAREHOLDER REPORT

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number: 811-4977

Exact name of registrant as specified in charter: Voyageur Insured Funds

Address of principal executive offices:
2005 Market Street
Philadelphia, PA 19103

Name and address of agent for service:
David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103

Registrant’s telephone number, including area code: (800) 523-1918

Date of fiscal year end: August 31

Date of reporting period: February 28, 2007

Item 1. Reports to Stockholders

The Registrant's shareholder reports are combined with the shareholder reports of other investment company registrants. This Form N-CSR pertains to the DELAWARE TAX-FREE ARIZONA FUND and DELWARE TAX-FREE MINNESOTA INSURED FUND of the Registrant, information on which is included in the following shareholder reports.


	Semiannual Report	Delaware
		Tax-Free Arizona Fund
		(Formerly Delaware Tax-Free
		Arizona Insured Fund)

		Delaware
		Tax-Free California Fund

		Delaware
		Tax-Free Colorado Fund

		Delaware
		Tax-Free Idaho Fund

		February 28, 2007

Fixed income mutual funds

Table of contents

	> Disclosure of Fund expenses		1
	> Sector allocations and credit quality breakdowns		3
	> Statements of net assets		5
	> Statements of operations		18
	> Statements of changes in net assets		19
	> Financial highlights		21
	> Notes to financial statements		33
	> About the organization		40

Funds are not FDIC insured and are not guaranteed. It is possible to lose the principal amount invested.

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management
Business Trust, which is a registered investment advisor.

© 2007 Delaware Distributors, L.P.

Disclosure of Fund expenses

For the period September 1, 2006 to February 28, 2007

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. These following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2006 to February 28, 2007.

Actual Expenses

The first section of the tables shown, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section of the table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of the tables shown, “Hypothetical 5% Return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Each Fund’s actual expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.

“Expenses Paid During Period” are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181/365 (to reflect the one-half year period).

Delaware Tax-Free Arizona Fund
Expense Analysis of an Investment of $1,000

								Expenses
	Beginning		Ending					Paid During
	Account		Account		Annualized			Period
	Value		Value		Expense			9/1/06 to
	9/1/06		2/28/07		Ratio			2/28/07
Actual Fund Return
Class A	$	1,000.00	$	1,026.70		0.77	%	$	3.87
Class B		1,000.00		1,022.90		1.52	%		7.62
Class C		1,000.00		1,022.80		1.52	%		7.62
Hypothetical 5% Return (5% return before expenses)
Class A	$	1,000.00	$	1,020.98		0.77	%	$	3.86
Class B		1,000.00		1,017.26		1.52	%		7.60
Class C		1,000.00		1,017.26		1.52	%		7.60

Delaware Tax-Free California Fund
Expense Analysis of an Investment of $1,000

(continues) 1

Disclosure of Fund expenses

Delaware Tax-Free Colorado Fund
Expense Analysis of an Investment of $1,000

Delaware Tax-Free Idaho Fund
Expense Analysis of an Investment of $1,000

								Expenses
	Beginning		Ending					Paid During
	Account		Account		Annualized			Period
	Value		Value		Expense			9/1/06 to
	9/1/06		2/28/07		Ratio			2/28/07
Actual Fund Return
Class A	$	1,000.00	$	1,027.50		0.87	%	$	4.37
Class B		1,000.00		1,023.80		1.62	%		8.13
Class C		1,000.00		1,023.80		1.62	%		8.13
Hypothetical 5% Return (5% return before expenses)
Class A	$	1,000.00	$	1,020.48		0.87	%	$	4.36
Class B		1,000.00		1,016.76		1.62	%		8.10
Class C		1,000.00		1,016.76		1.62	%		8.10

Sector allocations and credit quality breakdowns

As of February 28, 2007

Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Tax-Free Arizona Fund
	Percentage
Sector	of Net Assets
Municipal Bonds		97.92%
Corporate-Backed Revenue Bonds		4.13%
Education Revenue Bonds		7.45%
Electric Revenue Bonds		4.49%
Escrowed to Maturity Bonds		0.54%
Health Care Revenue Bonds		8.80%
Housing Revenue Bonds		1.71%
Lease Revenue Bonds		12.25%
Local General Obligation Bonds		4.11%
Pre-Refunded Bonds		26.58%
Special Tax Revenue Bonds		5.34%
State General Obligation Bonds		4.26%
Transportation Revenue Bonds		12.64%
Water & Sewer Revenue Bonds		5.62%
Short-Term Investments		1.83%
Total Value of Securities		99.75%
Receivables and Other Assets Net of Liabilities		0.25%
Total Net Assets		100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA		80.32%
AA		4.09%
A		4.95%
BBB		9.29%
NR		1.35%
Total		100.00%

Delaware Tax-Free California Fund
	Percentage
Sector	of Net Assets
Municipal Bonds		98.12%
Education Revenue Bonds		12.71%
Electric Revenue Bonds		1.72%
Health Care Revenue Bonds		11.17%
Housing Revenue Bonds		7.36%
Lease Revenue Bonds		7.18%
Local General Obligation Bonds		18.08%
Pre-Refunded Bonds		15.03%
Resource Recovery Revenue Bonds		3.80%
Special Tax Revenue Bonds		2.17%
State General Obligation Bonds		7.37%
Transportation Revenue Bonds		4.74%
Water & Sewer Revenue Bonds		6.79%
Short-Term Investments		0.90%
Total Value of Securities		99.02%
Receivables and Other Assets Net of Liabilities		0.98%
Total Net Assets		100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA		41.12%
AA		11.96%
A		27.29%
BBB		11.33%
NR		8.30%
Total		100.00%

(continues) 3

Sector allocations and credit quality breakdowns

As of February 28, 2007

Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Tax-Free Colorado Fund
		Percentage
Sector		of Net Assets
Municipal Bonds		98.27%
Education Revenue Bonds		15.03%
Electric Revenue Bonds		1.86%
Escrowed to Maturity Bonds		2.17%
Health Care Revenue Bonds		14.40%
Housing Revenue Bonds		3.56%
Lease Revenue Bonds		5.30%
Local General Obligation Bonds		16.31%
Pre-Refunded Bonds		22.64%
Special Tax Revenue Bonds		2.72%
State General Obligation Bonds		3.64%
Transportation Revenue Bonds		9.53%
Water & Sewer Revenue Bonds		1.11%
Short-Term Investments		0.68%
Total Value of Securities		98.95%
Receivables and Other Assets Net of Liabilities		1.05%
Total Net Assets		100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA		46.43%
AA		19.36%
A		12.02%
BBB		14.74%
B		0.71%
NR		6.74%
Total		100.00%

Delaware Tax-Free Idaho Fund
		Percentage
Sector		of Net Assets
Municipal Bonds		97.36%
Corporate-Backed Revenue Bonds		7.51%
Education Revenue Bonds		14.95%
Electric Revenue Bonds		1.88%
Escrowed to Maturity Bonds		2.20%
Health Care Revenue Bonds		4.39%
Housing Revenue Bonds		7.94%
Lease Revenue Bonds		7.68%
Local General Obligation Bonds		24.34%
Pre-Refunded Bonds		10.00%
Special Tax Revenue Bonds		4.31%
State General Obligation Bonds		4.13%
Transportation Revenue Bonds		5.02%
Water & Sewer Revenue Bonds		3.01%
Short-Term Investments		0.32%
Total Value of Securities		97.68%
Receivables and Other Assets Net of Liabilities		2.32%
Total Net Assets		100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA		58.92%
AA		3.56%
A		8.03%
BBB		22.28%
BB		3.08%
NR		4.13%
Total		100.00%

Statements of net assets

Delaware Tax-Free Arizona Fund

February 28, 2007 (Unaudited)

	Principal
	Amount		Value
Municipal Bonds – 97.92%
Corporate-Backed Revenue Bonds – 4.13%
Maricopa County Pollution Control
(Palo Verde Project) Series A
5.05% 5/1/29 (AMBAC)	$	6,000,000	$	6,322,920
				6,322,920
Education Revenue Bonds – 7.45%
Arizona State Board of Regents
Certificates of Participation
(University of Arizona -
Main Campus)
Series 2000 A-1
5.125% 6/1/25 (AMBAC)		1,250,000		1,308,975
Arizona State University
Certificates of Participation
(Research Infrastructure Project)
5.00% 9/1/30 (AMBAC)		3,000,000		3,177,930
Glendale Industrial Development
Authority Revenue
(Midwestern University)
Series A 5.875% 5/15/31		1,000,000		1,076,810
Northern Arizona University
Certificates of Participation
(Northern Arizona University
Research Project)
5.00% 9/1/30 (AMBAC)		1,500,000		1,598,910
South Campus Group Student
Housing Revenue (Arizona State
University South Campus Project)
5.625% 9/1/35 (MBIA)		1,000,000		1,094,100
Tucson Industrial Development
Authority (University of Arizona -
Marshall Foundation)
Series B 5.00% 7/15/27 (AMBAC)		1,000,000		1,048,920
University of Arizona Certificates
of Participation (University of
Arizona Project)
Series A 5.125% 6/1/21 (AMBAC)		1,000,000		1,056,210
Series B 5.125% 6/1/22 (AMBAC)		1,000,000		1,055,240
				11,417,095
Electric Revenue Bonds – 4.49%
Energy Management Services
(Arizona State University -
Main Campus)
5.25% 7/1/17 (MBIA)		1,500,000		1,601,190
Puerto Rico Electric Power Authority
Revenue Series NN
5.00% 7/1/32 (MBIA)		2,500,000		2,649,450
Salt River Project Agricultural
Improvement & Power District
Electric System Revenue
Series A 5.00% 1/1/31		500,000		525,525
Series B 5.00% 1/1/31 (MBIA)		2,000,000		2,104,240
				6,880,405
Escrowed to Maturity Bonds – 0.54%
Maricopa County School District #14
(Creighton School Improvement
Project of 1990) Series C
6.50% 7/1/08 (FGIC)		455,000		472,012
Phoenix Street & Highway Revenue
6.50% 7/1/09 (AMBAC)		350,000		354,046
				826,058
Health Care Revenue Bonds – 8.80%
Glendale Industrial Development
Authority Hospital Revenue
5.00% 12/1/35		1,000,000		1,029,950
Maricopa County Industrial
Development Authority Revenue
(Catholic Healthcare West)
Series A 5.50% 7/1/26		1,000,000		1,081,010
(Mayo Clinic) 5.00% 11/15/36		1,000,000		1,058,580
(Senior Living Healthcare)
Series A 5.00% 8/20/35 (GNMA)		1,000,000		1,049,770
Phoenix Industrial Development
Authority Hospital Revenue
(John C. Lincoln Health) Series B
5.75% 12/1/16 (Connie Lee)		4,110,000		4,247,069
University Medical Center
Hospital Revenue
5.00% 7/1/24		800,000		829,792
5.00% 7/1/35		2,000,000		2,063,180
Yavapai County Industrial
Development Authority Revenue
(Yavapai Regional Medical
Center) Series A
5.25% 8/1/21 (RADIAN)		2,000,000		2,125,800
				13,485,151
Housing Revenue Bonds – 1.71%
Pima County Industrial Development
Authority Single Family Housing
Revenue
Series A-1 6.125% 11/1/33
(GNMA) (FNMA) (FHLMC) (AMT)		20,000		20,077
Series B-1 6.10% 5/1/31
(GNMA) (AMT)		60,000		60,224
Yuma Industrial Development
Authority Multifamily Revenue
Series A 6.10% 9/20/19
(GNMA) (AMT)		2,340,000		2,547,629
				2,627,930
Lease Revenue Bonds – 12.25%
Arizona Game & Fish Department &
Community Beneficial
Interest Certificates
(Administration Building Project)
5.00% 7/1/32		1,300,000		1,364,740

(continues) 5

Statements of net assets

Delaware Tax-Free Arizona Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
Marana Property Corporation
Municipal Facilities Revenue
5.00% 7/1/28 (AMBAC)	$	575,000	$	605,418
Maricopa County Industrial
Development Authority
Correctional Contract Revenue
(Phoenix West Prison) Series B
5.375% 7/1/22 (ACA)		1,000,000		1,055,150
Phoenix Industrial Development
Authority Lease Revenue
(Capitol Mall, LLC II Project)
5.00% 9/15/28 (AMBAC)		4,000,000		4,172,759
Pinal County Certificates
of Participation
5.00% 12/1/29		1,300,000		1,364,662
5.125% 6/1/21 (AMBAC)		4,675,000		4,935,210
Puerto Rico Public Buildings
Authority Revenue (Guaranteed
Government Facilities)
Series D 5.25% 7/1/27		470,000		497,862
Series D 5.25% 7/1/36		270,000		285,077
Series I 5.25% 7/1/33		500,000		536,930
Salt River Project Agricultural
Improvement & Power District
Certificates of Participation
5.00% 12/1/18 (MBIA)		1,500,000		1,601,340
University of Arizona Certificates of
Participation Series B
5.00% 6/1/31 (AMBAC)		2,250,000		2,362,545
				18,781,693
Local General Obligation Bonds – 4.11%
Cochise County Unified School
District #68 7.50% 7/1/10 (FGIC)		1,000,000		1,118,850
DC Ranch Community Facilities
5.00% 7/15/27 (AMBAC)		1,000,000		1,056,360
Marana Tangerine Farm
Improvement District Revenue
4.60% 1/1/26		1,000,000		1,011,160
Maricopa County School District #14
(Creighton School Improvement
Project of 1990) Series C
6.50% 7/1/08 (FGIC)		545,000		565,230
Phoenix Variable Purpose Series B
5.00% 7/1/27		2,435,000		2,553,341
				6,304,941
§Pre-Refunded Bonds – 26.58%
Arizona Board of Regents (Northern
Arizona University)
5.00% 6/1/34-12 (FGIC)		1,000,000		1,063,760
5.50% 6/1/34-14 (FGIC)		1,250,000		1,394,950
Arizona State Transportation Board
Highway Revenue Series B
5.25% 7/1/22-12		1,000,000		1,076,710
Maricopa County School District #3
(Tempe Elementary Project
of 1997) Series E
5.70% 7/1/16-09 (FGIC)		1,025,000		1,081,703
Mesa Industrial Development
Authority Revenue (Discovery
Health Systems) Series A
5.625% 1/1/29-10 (MBIA)		10,000,000		10,625,201
Mohave County Community
College District Revenue
(State Board of Directors)
6.00% 3/1/20-10 (MBIA)		1,000,000		1,067,110
Phoenix Industrial Development
Authority Lease Revenue
(Capitol Mall, LLC Project)
5.50% 9/15/27-10 (AMBAC)		5,000,000		5,309,350
Phoenix Industrial Development
Authority Multifamily Housing
Revenue (Ventana Palms
Apartments) Series A
6.15% 10/1/29-09 (MBIA)		510,000		550,458
6.20% 10/1/34-09 (MBIA)		940,000		1,015,717
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue Series K
5.00% 7/1/35-15		750,000		817,988
Puerto Rico Commonwealth Public
Improvement Revenue
5.125% 7/1/30-11 (FSA)		770,000		817,247
Series A 5.00% 7/1/27-12		1,000,000		1,067,690
Series A 5.125% 7/1/31-11		1,705,000		1,809,619
Puerto Rico Public Buildings
Authority Revenue (Guaranteed
Government Facilities) Series D
5.25% 7/1/27-12		1,280,000		1,377,549
5.25% 7/1/36-12		730,000		785,633
Scottsdale Industrial Development
Authority Hospital Revenue
(Scottsdale Healthcare)
5.70% 12/1/21-11		500,000		547,090
Sedona Partner Certificates of
Participation 5.75% 7/1/16-09		500,000		527,870
Southern Arizona Capital
Facilities Finance (University of
Arizona Project)
5.10% 9/1/33-12 (MBIA)		3,250,000		3,482,375
Surprise Municipal Property
Excise Tax Revenue
5.70% 7/1/20-09 (FGIC)		5,000,000		5,269,700
University of Arizona
Certificates of Participation
(University of Arizona Parking &
Student Housing)
5.75% 6/1/19-09 (AMBAC)		1,000,000		1,045,620
				40,733,340

	Principal
	Amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 5.34%
Arizona Tourism & Sports Authority
Tax Revenue (Multipurpose
Stadium Facilities) Series A
5.00% 7/1/28 (MBIA)	$	2,500,000	$	2,632,250
5.00% 7/1/31 (MBIA)		1,500,000		1,575,915
Glendale Municipal Property
Corporation Series A
5.00% 7/1/33 (AMBAC)		1,000,000		1,056,050
Phoenix Civic Improvement
Corporation Distribution
Revenue (Civic Plaza) Series B
5.50% 7/1/31 (FGIC)		1,500,000		1,337,910
San Luis Civic Improvement
Corporation Municipal Facilities
Excise Tax Revenue
5.00% 7/1/38 (XLCA)		1,500,000		1,589,595
				8,191,720
State General Obligation Bonds – 4.26%
Puerto Rico Commonwealth Public
Improvement
Refunding Series A 5.50% 7/1/19		1,300,000		1,476,852
Unrefunded Balance Series A
5.125% 7/1/30 (FSA)		480,000		502,666
5.125% 7/1/31		3,370,000		3,495,734
Virgin Islands Public Finance
Authority (Gross Receipts Taxes)
5.00% 10/1/31 (ACA)		1,000,000		1,047,530
				6,522,782
Transportation Revenue Bonds – 12.64%
Arizona State Transportation Board
Highway Revenue Series A
5.00% 7/1/23		1,000,000		1,070,580
Phoenix Civic Improvement
Corporation Airport Revenue
Series B
5.25% 7/1/27 (FGIC) (AMT)		1,000,000		1,051,920
5.25% 7/1/32 (FGIC) (AMT)		10,300,000		10,817,163
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue Series N
5.25% 7/1/39 (FGIC)		1,000,000		1,205,970
Tucson Airport Authority Senior
Lien Series 2001 5.35% 6/1/31
(AMBAC) (AMT)		5,000,000		5,228,300
				19,373,933
Water & Sewer Revenue Bonds – 5.62%
Gilbert Water Municipal Property
Corporation Wastewater System
& Utility Revenue (Development
Fee & Senior Lien) 4.90% 4/1/19		1,500,000		1,523,745
Glendale Water & Sewer Revenue
Senior Lien
5.00% 7/1/28 (AMBAC)		2,000,000		2,112,100
Phoenix Civic Improvement
Corporation Wastewater
Systems Revenue Junior Lien
5.00% 7/1/24 (FGIC)		1,000,000		1,043,090
5.00% 7/1/26 (FGIC)		3,750,000		3,932,250
				8,611,185
Total Municipal Bonds
(cost $141,626,971)				150,079,153

Short-Term Investments – 1.83%
•Variable Rate Demand Notes – 1.83%
Arizona Health Facilities Authority
Revenue (Catholic West Health
Facilities) Series B 3.50% 7/1/35
(LOC – Bank of America N.A.)		800,000		800,000
Scottsdale Industrial Development
Authority Hospital Revenue
(Scottsdale Healthcare)
Series A 3.51% 9/1/30 (FGIC)		2,000,000		2,000,000
Total Short-Term Investments
(cost $2,800,000)				2,800,000

Total Value of Securities – 99.75%
(cost $144,426,971)				152,879,153
Receivables and Other Assets
Net of Liabilities – 0.25%				389,024
Net Assets Applicable to 13,417,014
Shares Outstanding – 100.00%			$	153,268,177

Net Asset Value – Delaware Tax-Free Arizona Fund
Class A ($130,222,061 / 11,401,775 Shares)					$11.42
Net Asset Value – Delaware Tax-Free Arizona Fund
Class B ($15,027,714 / 1,314,821 Shares)					$11.43
Net Asset Value – Delaware Tax-Free Arizona Fund
Class C ($8,018,402 / 700,418 Shares)					$11.45

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)			$	147,487,298
Accumulated net realized loss on investments				(2,671,303		)
Net unrealized appreciation of investments				8,452,182
Total net assets			$	153,268,177

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to Financial Statements.”

•	Variable rate security. The rate shown is the rate as of February 28, 2007.

(continues) 7

Statements of net assets

Delaware Tax-Free Arizona Fund


Summary of Abbreviations:
ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
Connie Lee — Insured by the College Construction Insurance Association
FGIC — Insured by the Financial Guaranty Insurance Company
FHLMC — Insured by the Federal Home Loan Mortgage Corporation
FNMA — Insured by Federal National Mortgage Association
FSA — Insured by Financial Security Assurance
GNMA — Insured by Government National Mortgage Association
LOC — Letter of Credit
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance
XLCA — Insured by XL Capital Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Arizona Fund
Net asset value Class A (A)	$11.42
Sales charge (4.50% of offering price) (B)	0.54
Offering price	$11.96

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

Delaware Tax-Free California Fund

February 28, 2007 (Unaudited)

	Principal
	Amount		Value
Municipal Bonds – 98.12%
Education Revenue Bonds – 12.71%
California Educational Facilities
Authority Revenue
(Claremont Graduate
University) Series A
5.00% 3/1/37	$	1,000,000	$	1,047,320
(University of the Pacific)
5.25% 5/1/34		1,000,000		1,063,160
5.75% 11/1/30 (MBIA)		310,000		331,740
(Woodbury University)
5.00% 1/1/36		1,000,000		1,032,340
California Municipal Finance
Authority Educational
Revenue (American Heritage
Foundation Project)
Series A 5.25% 6/1/36		1,000,000		1,048,100
California Public Works Board Lease
Revenue (Various Universities of
California Projects)
Series D 5.00% 5/1/30		1,000,000		1,062,990
Series F 5.00% 11/1/29		1,000,000		1,053,640
California State University
Systemwide Revenue Series A
5.25% 11/1/20 (FSA)		1,000,000		1,089,600
California Statewide Communities
Development Authority
Revenue (Viewpoint School
Project) 5.75% 10/1/33 (ACA)		1,000,000		1,103,240
California Statewide Communities
Development Authority
Student Housing Revenue
(East Campus Apartments, LLC)
Series A 5.625% 8/1/34 (ACA)		1,000,000		1,070,460
(Irvine, LLC - UCI East)
5.00% 5/15/38		1,000,000		1,051,950
San Diego County Certificates of
Participation (University of San
Diego) 5.375% 10/1/41		1,000,000		1,045,250
University of California Revenue
5.00% 5/15/33 (FSA)		2,000,000		2,125,300
				14,125,090
Electric Revenue Bonds – 1.72%
Puerto Rico Electric Power
Authority Revenue Series OO
5.00% 7/1/13 (CIFG)		1,000,000		1,075,470
Roseville National Gas Financing
Authority Revenue
5.00% 2/15/28		750,000		835,868
				1,911,338

	Principal
	Amount		Value
Municipal Bonds (continued)
Health Care Revenue Bonds – 11.17%
Abag Finance Authority of
California (Nonprofit
Corporations - San Diego
Hospital Association)
Series A 6.125% 8/15/20	$	1,250,000	$	1,357,138
California Health Facilities
Financing Authority Revenue
(Catholic Healthcare West)
Series G 5.25% 7/1/23		1,000,000		1,066,010
(Naveda - Methodist)
5.00% 7/1/36		1,075,000		1,126,847
(The Episcopal Home) Series A
5.30% 2/1/32 (RADIAN)		2,000,000		2,094,820
California Infrastructure &
Economic Development Bank
Revenue (Kaiser Hospital
Associates I, LLC)
Series A 5.55% 8/1/31		1,000,000		1,065,620
California Statewide Communities
Development Authority
Revenue
(Health Facilities - Adventist
Health) Series A 5.00% 3/1/35		2,000,000		2,079,560
(Kaiser Permenante)
5.25% 3/1/45		1,500,000		1,600,305
Series B 4.371% 4/1/36		1,000,000		1,001,500
(Presbyterian Homes) Series A
4.875% 11/15/36		1,000,000		1,021,670
				12,413,470
Housing Revenue Bonds – 7.36%
California State Department of
Veteran Affairs Home Purpose
Revenue Series A
4.60% 12/1/28		2,000,000		2,023,260
California Statewide Communities
Development Authority
Multifamily Housing Revenue
(Citrus Gardens Apartments)
Series D1 5.375% 7/1/32		1,800,000		1,877,994
•(Silver Ridge Apartments)
Series H 5.80% 8/1/33
(FNMA) (AMT)		1,000,000		1,063,610
Palm Springs Mobile Home Park
Revenue (Sahara Mobile Home
Park) Series A
5.75% 5/15/37		1,000,000		1,067,270
Santa Clara County Multifamily
Housing Authority Revenue
(Rivertown Apartments
Project) Series A
5.85% 8/1/31 (AMT)		1,000,000		1,064,160
Ventura County Area Multifamily
Housing Authority Revenue
(Glen Oaks Apartments)
Series A 6.35% 7/20/34 (GNMA)		990,000		1,089,020
				8,185,314
Lease Revenue Bonds – 7.18%
California State Public Works
Board Lease Revenue
(Department of Corrections)
Series A 5.00% 3/1/27 (AMBAC)		1,000,000		1,045,670
Series C 5.25% 6/1/28		1,500,000		1,603,110
(Department of General
Services - Butterfield) Series A
5.25% 6/1/30		1,000,000		1,077,270
Franklin-McKinley School District
Certificates of Participation
(Financing Project) Series B
5.00% 9/1/27 (AMBAC)		1,060,000		1,119,901
San Diego County Certificates of
Participation
5.75% 7/1/31 (MBIA)		1,000,000		1,078,560
San Juan Basin Authority (Ground
Water Recovery Project)
5.00% 12/1/34 (AMBAC)		1,000,000		1,048,090
Stockton Unified School District
Certificates of Participation
(Capital Projects)
4.50% 2/1/36 (AMBAC)		1,000,000		1,008,340
				7,980,941
Local General Obligation Bonds – 18.08%
^Anaheim School District Election
2002 4.58% 8/1/25 (MBIA)		1,250,000		562,213
Commerce Joint Powers
Financing Authority Revenue
(Redevelopment Projects)
Series A
5.00% 8/1/28 (RADIAN)		1,000,000		1,040,890
Culver City Redevelopment Agency
(Tax Allocation Redevelopment
Project) Series A
5.00% 11/1/25 (AMBAC)		1,000,000		1,064,450
Fairfield-Suisun Unified School
District Election 2002
5.50% 8/1/28 (MBIA)		500,000		554,695
Fremont Community Facilities
District #1 (Special Tax Pacific
Commons) 5.375% 9/1/36		1,000,000		1,037,300
Jurupa Community Services
Special Tax Community
Facilities District #19-Eastvale
5.00% 9/1/36		500,000		508,135
La Quinta Redevelopment Agency
(Tax Allocation Redevelopment
Project Area #1)
Series A 5.10% 9/1/31 (AMBAC)		2,000,000		2,121,760
Lake Elsinore Public Financing
Authority Tax Allocation Series A
5.50% 9/1/30		1,000,000		1,036,540

(continues) 9

Statements of net assets

Delaware Tax-Free California Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
Lammersville School District
Special Tax Community
Facilities District #2002
(Mountain House)
5.125% 9/1/35	$	500,000	$	516,725
Lawndale Elementary School
District 5.00% 8/1/32 (FSA)		1,000,000		1,048,750
Los Angeles Unified School District
Series A-2 4.25% 1/1/28 (FGIC)		1,000,000		997,890
Modesto Special Tax Community
Facilities District #04-1 Village 2
5.15% 9/1/36		1,000,000		1,027,620
Poway Unified School District
Community Facilities
District #6 5.60% 9/1/33		1,000,000		1,037,950
District #14 5.25% 9/1/36		1,000,000		1,032,100
Riverside County Redevelopment
Agency Tax Allocation
(Jurupa Valley Project)
5.25% 10/1/35 (AMBAC)		1,590,000		1,707,406
Roseville Westpark Special Tax
Public Community Facilities
District #1 5.25% 9/1/37		500,000		515,795
San Bernardino County Special
Tax Community Facilities
District #2002-1 5.90% 9/1/33		2,000,000		2,141,699
San Diego Unified School District
Series E 5.00% 7/1/28 (FSA)		2,000,000		2,146,259
				20,098,177
§Pre-Refunded Bonds – 15.03%
California Educational Facilities
Authority Revenue
(Pepperdine University) Series A
5.50% 8/1/32-09		1,000,000		1,044,950
(University of the Pacific)
5.75% 11/1/30-10 (MBIA)		690,000		743,185
California State Department
Water Reserve Power Supply
Revenue Series A
5.375% 5/1/21-12		2,000,000		2,188,239
Golden State Tobacco
Securitization Corporation
5.50% 6/1/43-13 (RADIAN)		1,000,000		1,099,970
5.625% 6/1/33-13		1,000,000		1,106,900
Oakland Industrial Revenue
(Harrison Foundation) Series B
6.00% 1/1/29-10 (AMBAC)		1,300,000		1,388,023
Poway Redevelopment Agency
Tax Allocation
5.75% 6/15/33-10 (MBIA)		1,400,000		1,523,508
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue Series K
5.00% 7/1/35-15		1,750,000		1,908,638
5.00% 7/1/45-15		1,500,000		1,635,975
San Diego County Certificates of
Participation (The Burnham
Institute) 6.25% 9/1/29-09		1,000,000		1,072,610
San Francisco Bay Area Rapid
Transit District Sales Tax Revenue
5.125% 7/1/36-11 (AMBAC)		740,000		787,242
Sequoia Unified High School
District Election 2001
5.125% 7/1/31-11 (FSA)		1,000,000		1,081,030
Southern California Logistics
Airport Authority Tax
Allocation 6.50% 12/1/31-11		1,000,000		1,131,530
				16,711,800
Resource Recovery Revenue Bonds – 3.80%
Salinas Valley Solid Waste
Authority Revenue
5.25% 8/1/27 (AMBAC) (AMT)		2,000,000		2,112,780
5.25% 8/1/31 (AMBAC) (AMT)		2,000,000		2,108,800
				4,221,580
Special Tax Revenue Bonds – 2.17%
Palm Drive Health Care District
Parcel Tax Revenue
5.25% 4/1/30		2,000,000		2,145,060
San Francisco Bay Area Rapid
Transit District Sales Tax
Revenue
5.125% 7/1/36 (AMBAC)		260,000		272,067
				2,417,127
State General Obligation Bonds – 7.37%
California State
5.00% 2/1/33		1,000,000		1,051,600
5.50% 11/1/33		2,000,000		2,187,580
California State Variable Purposes
5.00% 6/1/31		1,000,000		1,061,370
5.00% 8/1/35		1,000,000		1,060,980
California State Veterans Series B
5.70% 12/1/32 (AMT)		640,000		653,523
Puerto Rico Government
Development Bank Senior
Notes Series B 5.00% 12/1/14		1,000,000		1,072,760
Puerto Rico Public Buildings
Authority Revenue
(Guaranteed Government
Facility) Series I
5.50% 7/1/23		1,000,000		1,102,240
				8,190,053
Transportation Revenue Bonds – 4.74%
Bay Area Toll Authority Revenue
5.00% 4/1/31		1,000,000		1,076,740
Port of Oakland Revenue Series L
5.375% 11/1/27 (FGIC) (AMT)		1,000,000		1,066,780

	Principal
	Amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
Sacramento County Airport
System Revenue Series A
5.00% 7/1/32 (FSA)	$	1,000,000	$	1,045,660
San Diego Redevelopment Agency
(Centre City Redevelopment
Project) Series A
6.40% 9/1/25		1,000,000		1,049,330
San Jose Airport Revenue Series A
5.00% 3/1/31 (FGIC)		1,000,000		1,035,380
				5,273,890
Water & Sewer Revenue Bonds – 6.79%
Banning Utilities Authority Water
Enterprise Revenue
5.25% 11/1/35 (FGIC)		1,000,000		1,104,910
California State Department of
Water Resources Systems
Revenue (Central Valley
Project) Series X
5.00% 12/1/29 (FGIC)		1,000,000		1,054,080
Clovis Public Financing Authority
Wastewater Revenue
5.25% 8/1/30 (MBIA)		1,000,000		1,094,240
Metropolitan Water District
Southern California
Waterworks Authority
Revenue
Series B-1 5.00% 10/1/36
(FGIC)		1,000,000		1,058,000
Series C 5.00% 7/1/35		2,000,000		2,153,720
Sacramento County Sanitation
District Financing Authority
Revenue
5.00% 12/1/36 (FGIC)		1,000,000		1,077,080
				7,542,030
Total Municipal Bonds
(cost $103,308,090)				109,070,810

Short-Term Investments – 0.90%
•Variable Rate Demand Notes – 0.90%
Los Angeles Water & Power Revenue
Series B-1 3.55% 7/1/34		1,000,000		1,000,000
Total Short-Term Investments
(cost $1,000,000)				1,000,000

Total Value of Securities – 99.02%
(cost $104,308,090)				110,070,810
Receivables and Other Assets
Net of Liabilities – 0.98%				1,085,646
Net Assets Applicable to 9,626,442
Shares Outstanding – 100.00%			$	111,156,456
Net Asset Value – Delaware Tax-Free California Fund
Class A ($84,250,011 / 7,300,806 Shares)					$11.54
Net Asset Value – Delaware Tax-Free California Fund
Class B ($12,489,272 / 1,078,073 Shares)					$11.58
Net Asset Value – Delaware Tax-Free California Fund
Class C ($14,417,173 / 1,247,563 Shares)					$11.56

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)			$	106,060,149
Undistributed net investment income				1,300
Accumulated net realized loss on investments				(667,713		)
Net unrealized appreciation of investments				5,762,720
Total net assets			$	111,156,456

^	Zero coupon security. The rate shown is the yield at the time of purchase.

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to Financial Statements.”

•	Variable rate security. The rate shown is the rate as of February 28, 2007.

Summary of Abbreviations: ACA — Insured by American Capital Access AMBAC — Insured by the AMBAC Assurance Corporation AMT — Subject to Alternative Minimum Tax CIFG — CDC IXIS Financial Guaranty FGIC — Insured by the Financial Guaranty Insurance Company FNMA — Insured by Federal National Mortgage Association FSA — Insured by Financial Security Assurance GNMA — Insured by Government National Mortgage Association MBIA — Insured by the Municipal Bond Insurance Association RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free California Fund
Net asset value Class A (A)	$11.54
Sales charge (4.50% of offering price) (B)	0.54
Offering price	$12.08

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

(continues) 11

Statements of net assets

Delaware Tax-Free Colorado Fund

February 28, 2007 (Unaudited)

	Principal
	Amount		Value
Municipal Bonds – 98.27%
Education Revenue Bonds – 15.03%
Boulder County Development
Revenue (University
Corporation for Atmospheric
Research)
5.00% 9/1/33 (MBIA)	$	1,000,000	$	1,050,010
5.00% 9/1/35 (AMBAC)		2,000,000		2,114,780
Colorado Educational & Cultural
Facilities Authority Revenue
(Charter School Project)
5.50% 5/1/36 (XLCA)		2,280,000		2,498,059
(Johnson & Wales University
Project) Series A
5.00% 4/1/28 (XLCA)		1,000,000		1,050,520
(Liberty Common Charter
School Project)
5.125% 12/1/33 (XLCA)		2,740,000		2,902,153
(Montessori Districts Charter
School Projects) Series A
6.125% 7/15/32		5,590,000		5,833,612
(Pinnacle Charter School
Project) 5.00% 6/1/33 (XLCA)		2,170,000		2,272,446
(Regis University Project)
5.00% 6/1/22 (RADIAN)		1,820,000		1,914,240
(Renaissance Charter School
Project) 6.75% 6/1/29		2,000,000		1,964,720
(University of Northern Colorado
Student Housing Project) Series A
5.125% 7/1/37 (MBIA)		7,500,000		7,823,700
(Woodrow Wilson Charter
School Project) Series A
5.25% 12/1/34 (XLCA)		1,960,000		2,128,090
Colorado School Mines Auxiliary
Facilities Revenue
5.00% 12/1/37 (AMBAC)		3,130,000		3,292,666
Colorado State Board of
Governors University Enterprise
System Revenue
Series B 5.00% 3/1/35 (AMBAC)		2,000,000		2,106,960
University of Colorado Enterprise
System Revenue Series A
5.375% 6/1/26		1,000,000		1,054,080
University of Puerto Rico Revenue
Series Q 5.00% 6/1/36		3,750,000		3,973,500
				41,979,536
Electric Revenue Bonds – 1.86%
Colorado Springs Utilities Revenue
Series A 5.00% 11/15/29		5,000,000		5,198,400
				5,198,400
Escrowed to Maturity Bonds – 2.17%
Colorado Health Facilities
Authority Revenue (Catholic
Health Initiatives) Series A
5.50% 3/1/32		5,000,000		5,389,050
Galleria Metropolitan District
7.25% 12/1/09		645,000		674,535
				6,063,585
Health Care Revenue Bond – 14.40%
Colorado Health Facilities
Authority Revenue
•(Adventist Health Project)
Series D 5.25% 11/15/35		4,000,000		4,277,560
(Catholic Health Initiatives)
Series A 4.75% 9/1/40		3,000,000		3,062,160
(Christian Living Community
Project) Series A 5.75% 1/1/37		1,500,000		1,579,455
(Covenant Retirement
Communities) Series A
5.50% 12/1/33 (RADIAN)		5,000,000		5,359,450
(Evangelical Lutheran)
5.00% 6/1/35		2,000,000		2,083,360
Series A 5.25% 6/1/34		2,750,000		2,887,610
(Parkview Medical Center)
5.00% 9/1/25		1,000,000		1,049,800
(Porter Place) Series A
6.00% 1/20/36 (GNMA)		5,000,000		5,310,900
(Vail Valley Medical Center
Project) 5.80% 1/15/27		3,475,000		3,701,779
Delta County Memorial Hospital
District Enterprise Revenue
5.35% 9/1/17		4,000,000		4,172,160
Denver Health & Hospital Authority
Healthcare Revenue Series A
5.375% 12/1/28 (ACA)		2,770,000		2,851,604
Mesa County Residential Care
Facilities Mortgage Revenue
(Hilltop Community Resources)
Series A 5.375% 12/1/28
(RADIAN)		2,000,000		2,124,240
University of Colorado Hospital
Authority Revenue Series A
5.00% 11/15/37		1,690,000		1,746,598
				40,206,676
Housing Revenue Bonds – 3.56%
Colorado Housing & Finance
Authority Revenue (Multifamily
Housing Insured Mortgage)
Series A-3 6.25% 10/1/26 (FHA)		400,000		409,120
Series C-3 6.15% 10/1/41		1,590,000		1,653,664
Denver City & County Multifamily
Federal Housing Authority
Revenue (Insured Mortgage
Loan - Garden Court)
5.40% 7/1/39 (FHA)		2,000,000		2,055,580
Englewood Multifamily Housing
Revenue (Marks Apartments
Project) 6.65% 12/1/26		5,700,000		5,822,037
				9,940,401

	Principal
	Amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds – 5.30%
Colorado Educational & Cultural
National Conference of State
Legislatures Office Building
Facilities Authority Revenue
5.25% 6/1/21	$	2,000,000	$	2,091,280
Conejos & Alamosa Counties
School District #11J
Certificates of Participation
6.50% 4/1/11		955,000		956,270
Denver Convention Center Hotel
Authority Revenue Series A
5.00% 12/1/35 (XLCA)		3,000,000		3,192,720
El Paso County Certificates of
Participation
(Detention Facilities Project)
Series B
5.00% 12/1/27 (AMBAC)		1,500,000		1,572,060
(Judicial Building Project) Series A
5.00% 12/1/27 (AMBAC)		2,000,000		2,096,080
Fremont County Certificates of
Participation Refunding &
Improvement Series A
5.25% 12/15/24 (MBIA)		3,045,000		3,272,218
Puerto Rico Public Buildings
Authority Revenue
(Guaranteed Government
Facilities) Series I 5.25% 7/1/33		1,500,000		1,610,790
				14,791,418
Local General Obligation Bonds – 16.31%
Adams County School District #14
5.125% 12/1/31 (FSA)		1,500,000		1,633,620
Arapahoe County Water
& Wastewater Public
Improvement District
Refunding Series A
5.125% 12/1/32 (MBIA)		4,500,000		4,762,530
Bowles Metropolitan District
5.00% 12/1/33 (FSA)		2,500,000		2,640,550
Denver West Metropolitan District
5.00% 12/1/33 (RADIAN)		4,000,000		4,161,280
Douglas County School District #1
Building (Douglas & Elbert
Counties) Series B
5.125% 12/15/25 (FSA)		2,000,000		2,128,800
Eagle Bend Metropolitan District #2
5.00% 12/1/35 (RADIAN)		3,000,000		3,141,690
El Paso County School District #2
(Harrison)
5.00% 12/1/27 (MBIA)		2,115,000		2,224,917
Garfield County School District #2
5.00% 12/1/25 (FSA)		3,280,000		3,531,839
La Plata County School District #9-R
(Durango)
5.125% 11/1/24 (MBIA)		1,000,000		1,070,540
Lincoln Park Metropolitan District
7.75% 12/1/26		2,500,000		2,734,125
Loveland Special Improvements
District #1 7.50% 7/1/29		5,540,000		5,562,271
Meridian Metropolitan District
Series A 5.00% 12/1/31
(RADIAN)		7,000,000		7,206,849
North Range Metropolitan District #1
4.50% 12/15/31(ACA)		1,500,000		1,495,470
Saddle Rock Colorado
Metropolitan District
5.35% 12/1/31 (RADIAN)		1,580,000		1,657,041
Sand Creek Metropolitan District
Refunding & Improvement
5.00% 12/1/31 (XLCA)		500,000		526,145
Vista Ridge Metropolitan District
Refunding & Improvement
(Limited Tax) Series A
5.125% 12/1/40 (RADIAN)		1,000,000		1,059,880
				45,537,547
§Pre-Refunded Bonds – 22.64%
Aurora Certificates of Participation
5.50% 12/1/30-10 (AMBAC)		8,000,000		8,507,679
Boulder County Hospital Revenue
(Development Longmont
United Hospital Project)
5.60% 12/1/27-07 (RADIAN)		1,250,000		1,278,450
6.00% 12/1/30-10 (RADIAN)		5,000,000		5,400,649
Burlingame Multifamily Housing
Revenue Series A
6.00% 11/1/29-09 (MBIA)		1,250,000		1,335,325
Colorado Educational & Cultural
Facilities Authority Revenue
(Core Knowledge Charter
School Project)
7.00% 11/1/29-09		1,000,000		1,083,380
(Littleton Academy Charter
School Project)
6.125% 1/15/31-12		2,000,000		2,212,300
(Pinnacle Charter School
Project) 6.00% 12/1/21-11		1,750,000		1,922,813
(Stargate Charter School
Project) 6.125% 5/1/33-13		2,000,000		2,262,480
(University of Denver Project)
5.375% 3/1/23-11 (AMBAC)		2,000,000		2,127,940
Series A 5.00% 3/1/27-12
(MBIA)		5,000,000		5,295,850
Series B 5.25% 3/1/35-16
(FGIC)		1,750,000		1,948,398
Colorado Springs Revenue
(Colorado College Project)
5.375% 6/1/32-09		2,570,000		2,690,225
E-470 Public Highway Authority
Revenue Series A
5.75% 9/1/35-10 (MBIA)		3,100,000		3,364,492

(continues) 13

Statements of net assets

Delaware Tax-Free Colorado Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
El Paso County School District #49
(Falcon)
5.50% 12/1/21-11 (FGIC)	$	3,580,000	$	3,867,510
Fremont County School District #1
(Canon City)
5.00% 12/1/24-13 (MBIA)		1,735,000		1,872,447
Garfield Pitkin & Eagle County
School District #1 (Roaring
Fork) Series A
5.00% 12/15/27-14 (FSA)		1,500,000		1,633,710
Greeley Building Authority
Certificates of Participation
(Golf Course Lease Purchase)
6.10% 8/15/16-07		2,600,000		2,629,250
North Range Metropolitan District #1
7.25% 12/15/31-11		3,390,000		3,855,989
Pueblo County Certificates of
Participation 6.50% 12/1/24-10		5,460,000		5,992,458
University of Colorado Hospital
Authority Revenue Series A
5.60% 11/15/31-11		3,650,000		3,930,065
				63,211,410
Special Tax Revenue Bonds – 2.72%
Gypsum Sales Tax & General
Funding Revenue 5.25% 6/1/30		2,690,000		2,941,165
Puerto Rico Commonwealth
Infrastructure Financing
Authority Revenue Series B
5.00% 7/1/46		1,200,000		1,266,264
South Suburban Park & Recreation
District (Golf Course & Ice
Arena Facility) 6.00% 11/1/15		2,330,000		2,356,492
Westminster Golf Course
5.55% 12/1/23 (RADIAN)		1,000,000		1,033,840
				7,597,761
State General Obligation Bonds – 3.64%
Puerto Rico Commonwealth
Series A 5.25% 7/1/30		2,000,000		2,177,700
Series B 5.00% 7/1/35		500,000		530,025
Puerto Rico Commonwealth
Government Development
Bank Senior Notes
Series B 5.00% 12/1/14		1,000,000		1,072,760
Puerto Rico Commonwealth
Public Improvement Series A
5.25% 7/1/21		4,000,000		4,290,120
Virgin Islands Public Finance
Authority (Gross Receipts
Taxes) 5.00% 10/1/31 (ACA)		2,000,000		2,095,060
				10,165,665
Transportation Revenue Bonds – 9.53%
Denver City & County
Airport Revenue
Series A 5.00% 11/15/25 (FGIC)		2,000,000		2,155,380
Series B 5.00% 11/15/33 (XLCA)		4,000,000		4,208,000
Series E 5.25% 11/15/23 (MBIA)		8,250,000		8,409,143
Northwest Parkway Public
Highway Authority Series A
5.25% 6/15/41 (FSA)		11,100,000		11,824,830
				26,597,353
Water & Sewer Revenue Bonds – 1.11%
Ute Utility Water Conservancy
District Revenue
5.75% 6/15/20 (MBIA)		2,900,000		3,106,132
				3,106,132
Total Municipal Bonds
(cost $257,329,222)				274,395,884

Short-Term Investments – 0.68%
•Variable Rate Demand Notes – 0.68%
Colorado Springs Revenue
(Colorado College Project)
3.67% 6/1/29
(SPA – JPMorgan Chase)		200,000		200,000
Colorado Housing & Finance
Authority Class I AA3
3.53% 5/1/36
(SPA – Landesbank Hessen)		700,000		700,000
Platte River Power Authority
Electric Revenue Subordinate
Lien Series S-1 3.51% 6/1/18
(SPA – Morgan Guaranty Trust)		1,000,000		1,000,000
Total Short-Term Investments
(cost $1,900,000)				1,900,000

Total Value of Securities – 98.95%
(cost $259,229,222)				276,295,884
Receivables and Other Assets
Net of Liabilities – 1.05%				2,921,915
Net Assets Applicable to 25,098,719
Shares Outstanding – 100.00%			$	279,217,799

Net Asset Value – Delaware Tax-Free Colorado Fund
Class A ($262,342,050 / 23,583,975 Shares)					$11.12
Net Asset Value – Delaware Tax-Free Colorado Fund
Class B ($6,665,098 / 598,788 Shares)					$11.13
Net Asset Value – Delaware Tax-Free Colorado Fund
Class C ($10,210,651 / 915,956 Shares)					$11.15



Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)	$270,360,412
Accumulated net realized loss on investments	(8,209,275		)
Net unrealized appreciation of investments	17,066,662
Total net assets	$279,217,799

§Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to Financial Statements.”

•Variable rate security. The rate shown is the rate as of February 28, 2007.

Summary of Abbreviations:
ACA — Insured by American Capital Access AMBAC — Insured by the AMBAC Assurance Corporation FGIC — Insured by the Financial Guaranty Insurance Company FHA — Insured by the Federal Housing Administration FSA — Insured by Financial Security Assurance GNMA — Insured by Government National Mortgage Association MBIA — Insured by the Municipal Bond Insurance Association RADIAN — Insured by Radian Asset Assurance SPA — Stand-by Purchase Agreement XLCA — Insured by XL Capital Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Colorado Fund
Net asset value Class A (A)	$11.12
Sales charge (4.50% of offering price) (B)		0.52
Offering price		$11.64

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

Delaware Tax-Free Idaho Fund

February 28, 2007 (Unaudited)


	Principal
	Amount		Value
Municipal Bonds – 97.36%
Corporate-Backed Revenue Bonds – 7.51%
Meridian Economic Development
Corporation Revenue
(Hi-Micro Project)
5.85% 8/15/11 (AMT)	$	1,250,000	$	1,251,613
Nez Perce County Pollution
Control Revenue (Potlatch
Corporation Project)
6.00% 10/1/24		2,535,000		2,580,909
Power County Pollution Control
Revenue (FMC Corporation
Project) 5.625% 10/1/14		2,475,000		2,541,899
				6,374,421
Education Revenue Bonds – 14.95%
Boise State University Revenue
5.00% 4/1/17 (AMBAC)		500,000		532,340
5.00% 4/1/18 (FGIC)		1,500,000		1,617,015
5.375% 4/1/22 (FGIC)		15,000		16,048
Series A 4.25% 4/1/32 (MBIA)		2,250,000		2,234,475
Idaho State University Revenue
Refunding & Improvement
5.00% 4/1/20 (FSA)		1,130,000		1,204,038
5.00% 4/1/23 (FSA)		2,115,000		2,246,468
North Idaho College Dormitory
Housing Certificate of
Participation 6.45% 10/1/16		1,000,000		1,012,220
University of Idaho Revenue
Series A 5.00% 4/1/21 (AMBAC)		1,150,000		1,245,738
(Student Fee-Housing
Improvements Project)
5.25% 4/1/31 (FGIC)		2,195,000		2,305,145
University of Puerto Rico Revenue
Series Q 5.00% 6/1/36		250,000		264,900
				12,678,387
Electric Revenue Bonds – 1.88%
Puerto Rico Electric Power
Authority Revenue
Series II 5.25% 7/1/31		1,000,000		1,063,900
Series NN 5.125% 7/1/29		500,000		528,195
				1,592,095
Escrowed to Maturity Bonds – 2.20%
Puerto Rico Commonwealth
Infrastructure Financing
Authority Revenue Series A
5.375% 10/1/24		1,750,000		1,871,870
				1,871,870
Health Care Revenue Bonds – 4.39%
Idaho Health Facilities Authority
Hospital Revenue
(Idaho Elks Rehabilitation
Hospital Project)
5.30% 7/15/18		625,000		638,131
5.45% 7/15/23		2,000,000		2,044,100
(Portneuf Medical Center Project)
Series A 5.00% 9/1/35 (RADIAN)		1,000,000		1,043,900
				3,726,131

(continues) 15

Statements of net assets

Delaware Tax-Free Idaho Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds – 7.94%
Idaho Housing & Finance
Association Single Family
Mortgage
Series A Class III
4.875% 7/1/26 (AMT)	$	1,000,000	$	1,020,180
Series B Class I
5.00% 7/1/37 (AMT)		1,000,000		1,029,010
Series C Class III
5.35% 1/1/25 (AMT)		330,000		341,821
Series D Class III
5.45% 7/1/23 (AMT)		1,275,000		1,325,337
Series E Class III
4.875% 1/1/26 (AMT)		1,500,000		1,530,270
Series E Class III
5.00% 1/1/28 (AMT)		1,000,000		1,019,690
Idaho State Housing Agency
Single Family Mortgage
Series A 6.05% 7/1/13
(AMBAC) (FHA) (VA) (AMT)		45,000		45,771
Series A 6.10% 7/1/16
(FHA) (VA) (AMT)		60,000		61,058
Series A-1
6.85% 7/1/12 (AMT)		5,000		5,123
Series B 6.45% 7/1/15
(FHA) (VA) (AMT)		25,000		25,088
Series C-2
6.35% 7/1/15 (AMT)		30,000		30,036
Series E 6.35% 7/1/15
(FHA) (AMT)		55,000		55,276
Series E-1 6.60% 7/1/11		10,000		10,225
Series G-2 6.15% 7/1/15
(FHA) (VA) (AMT)		230,000		234,170
				6,733,055
Lease Revenue Bonds – 7.68%
Blaine School District #61
Certificate of Participation
5.00% 7/30/10 (AMBAC)		750,000		782,888
Boise City Certificate of
Participation 5.375% 9/1/20
(FGIC) (AMT)		2,100,000		2,189,103
Boise City Revenue Series A
5.375% 12/1/31 (MBIA)		500,000		532,165
Idaho State Building
Authority Revenue
Series A 5.00% 9/1/21 (MBIA)		1,150,000		1,170,631
Series A 5.00% 9/1/43 (XLCA)		1,000,000		1,050,210
Series B 5.00% 9/1/21 (MBIA)		750,000		786,810
				6,511,807
Local General Obligation Bonds – 24.34%
Ada & Canyon Counties Joint
School District #2 Meridian
4.75% 2/15/20		1,000,000		1,060,860
5.00% 7/30/20		2,155,000		2,278,955
5.125% 7/30/19		1,005,000		1,069,923
5.50% 7/30/16		1,305,000		1,492,959
Bannock County School District #25
(Pocatello Idaho School Board
Guaranteed Program)
5.00% 8/15/15		1,040,000		1,133,340
5.00% 8/15/16		1,100,000		1,196,470
Boise Urban Renewal Agency
Parking Revenue
(Tax Increment)
Series A 6.125% 9/1/15		1,845,000		1,873,450
Series B 6.125% 9/1/15		1,505,000		1,535,582
Bonner County Local
Improvement District #93-1
6.40% 4/30/07		195,000		195,603
6.50% 4/30/08		110,000		110,353
6.50% 4/30/10		60,000		60,191
Canyon County School District #132
(Caldwell) 5.00% 7/30/15 (FGIC)		2,000,000		2,194,659
Coeur D’Alene Local
Improvement District #6
Series 1995 6.00% 7/1/09		85,000		85,502
Series 1996 6.05% 7/1/10		90,000		90,544
Series 1997 6.10% 7/1/12		40,000		40,239
Series 1998 6.10% 7/1/14		45,000		45,275
Lemhi County 5.20% 8/1/27 (FSA)		2,145,000		2,278,354
Nampa, Idaho 5.00% 8/1/21 (FGIC)		2,475,000		2,688,270
Power & Cassia Counties Joint
School District #381 (American
Falls) 5.00% 8/1/17		1,155,000		1,213,813
				20,644,342
§Pre-Refunded Bonds – 10.00%
Ammon Urban Renewal Agency
Revenue Subordinate Lien Tax
Increment Series B
6.25% 8/1/18-07		445,000		449,859
Boise State University Revenue
Refunding & Improvement
5.125% 4/1/31-12 (FGIC)		1,000,000		1,067,700
5.375% 4/1/22-12 (FGIC)		985,000		1,063,032
Idaho Health Facilities Authority
Hospital Revenue (Bonner
General Hospital Project)
6.50% 10/1/28-07		1,500,000		1,553,775
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue
Series D 5.25% 7/1/38-12		1,000,000		1,079,740
Series Y 5.00% 7/1/36-16		2,000,000		2,194,560
Puerto Rico Commonwealth
Infrastructure Financing
Revenue Series A
5.125% 7/1/31-11		1,010,000		1,071,974
				8,480,640

	Principal
	Amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 4.31%
Idaho Board Bank Authority
Revenue Series B
4.125% 9/15/36 (MBIA)	$	755,000	$	741,063
5.00% 9/15/30 (MBIA)		725,000		782,949
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue Series W
5.50% 7/1/15		175,000		192,866
Virgin Islands Public Finance
Authority Revenue (Senior-
Lien-Matching Fund Loan
Note) Series A
5.25% 10/1/20		500,000		538,180
5.25% 10/1/21		500,000		538,520
5.25% 10/1/24		800,000		860,552
				3,654,130
State General Obligation Bonds – 4.13%
Puerto Rico Commonwealth
Public Improvement Series A
5.125% 7/1/31		2,315,000		2,401,373
Puerto Rico Public Buildings
Authority Revenue
(Guaranteed Government
Facility) Series I 5.50% 7/1/23		1,000,000		1,102,240
				3,503,613
Transportation Revenue Bonds – 5.02%
Idaho Housing & Finance
Association Highway Trust
5.00% 7/15/24 (MBIA)		2,000,000		2,168,920
Puerto Rico Commonwealth
Highway & Transportation
Authority Revenue Series G
5.00% 7/1/33		2,000,000		2,086,460
				4,255,380
Water & Sewer Revenue Bonds – 3.01%
Chubbuck Water Revenue
Certificates of Participation
6.35% 4/1/08		125,000		125,204
6.40% 4/1/10		135,000		135,224
Moscow Sewer Revenue
5.00% 11/1/22 (FSA)		2,175,000		2,292,232
				2,552,660
Total Municipal Bonds
(cost $79,491,466)				82,578,531

		Number of
		Shares
Short-Term Investments – 0.32%
Money Market Instruments – 0.32%
Federated Minnesota Municipal
Cash Trust		270,669		270,669
Total Short-Term Investments
(cost $270,669)				270,669
Total Value of Securities – 97.68%
(cost $79,762,135)			$	82,849,200
Receivables and Other Assets
Net of Liabilities – 2.32%				1,969,371
Net Assets Applicable to 7,354,046
Shares Outstanding – 100.00%			$	84,818,571

Net Asset Value – Delaware Tax-Free Idaho Fund
Class A ($64,910,649 / 5,626,642 Shares)					$11.54
Net Asset Value – Delaware Tax-Free Idaho Fund
Class B ($7,549,174 / 655,468 Shares)					$11.52
Net Asset Value – Delaware Tax-Free Idaho Fund
Class C ($12,358,748 / 1,071,936 Shares)					$11.53

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)			$	82,137,560
Distributions in excess of net investment income				(11,281		)
Accumulated net realized loss on investments				(394,773		)
Net unrealized appreciation of investments				3,087,065
Total net assets			$	84,818,571

§Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to Financial Statements.”

Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation AMT — Subject to Alternative Minimum Tax FGIC — Insured by the Financial Guaranty Insurance Company FHA — Insured by the Federal Housing Administration FSA — Insured by Financial Security Assurance MBIA — Insured by the Municipal Bond Insurance Association RADIAN — Insured by Radian Asset Assurance VA — Insured by the Veterans Administration XLCA — Insured by XL Capital Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Idaho Fund
Net asset value Class A (A)				$11.54
Sales charge (4.50% of offering price) (B)					0.54
Offering price					$12.08

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See current prospectus for purchases of $100,000 or more.

See accompanying notes

(continues) 17

Statements of operations

Six Months Ended February 28, 2007 (Unaudited)

	Delaware		Delaware		Delaware		Delaware
	Tax-Free		Tax-Free		Tax-Free		Tax-Free
	Arizona		California		Colorado		Idaho
	Fund		Fund		Fund		Fund
Investment Income:
Interest	$3,679,351		$2,552,931		$7,115,164		$1,976,364

Expenses:
Management fees	379,636		291,797		754,533		227,987
Distribution expenses – Class A	160,651		98,800		321,491		78,231
Distribution expenses – Class B	77,330		68,690		36,310		38,082
Distribution expenses – Class C	39,503		65,926		49,423		63,452
Dividend disbursing and transfer agent fees and expenses	36,535		22,004		71,340		23,733
Accounting and administration expenses	30,371		21,222		54,875		16,581
Trustees’ fees and benefits	23,673		16,024		42,434		12,747
Registration fees	11,742		12,746		5,147		2,198
Legal fees	10,118		8,101		21,420		4,059
Audit and taxes	8,771		7,500		11,428		7,246
Reports and statements to shareholders	7,673		5,455		14,375		3,138
Custodian fees	2,839		3,357		7,793		3,050
Insurance fees	1,916		1,546		3,635		2,288
Consulting fees	1,793		1,215		3,203		639
Pricing fees	1,489		1,477		1,593		1,258
Trustees’ expenses	305		207		549		204
Taxes (other than taxes on income)	268		271		534		52
Dues and services	180		142		378		126
	794,793		626,480		1,400,461		485,071
Less expenses absorbed or waived	(124,903	)	(50,206	)	(38,084	)	(49,864	)
Less expense paid indirectly	(472	)	(645	)	(811	)	(168	)
Total operating expenses	669,418		575,629		1,361,566		435,039
Net Investment Income	3,009,933		1,977,302		5,753,598		1,541,325

Net Realized and Unrealized Gain on Investments:
Net realized gain on investments	74,662		84,494		649,140		11,195
Net change in unrealized appreciation/depreciation of investments	874,122		1,233,566		1,327,910		638,321
Net Realized and Unrealized Gain on Investments	948,784		1,318,060		1,977,050		649,516

Net Increase in Net Assets Resulting from Operations	$3,958,717		$3,295,362		$7,730,648		$2,190,841


See accompanying notes

Statements of changes in net assets

	Delaware Tax-Free						Delaware Tax-Free
	Arizona Fund						California Fund
	Six Months						Six Months
	Ended			Year Ended			Ended			Year Ended
	2/28/07			8/31/06			2/28/07			8/31/06
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,009,933		$	6,300,495		$	1,977,302		$	3,593,780
Net realized gain on investments		74,662			43,501			84,494			54,668
Net change in unrealized appreciation/depreciation of investments		874,122			(2,942,259	)		1,233,566			(645,995	)
Net increase in net assets resulting from operations		3,958,717			3,401,737			3,295,362			3,002,453

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,621,569	)		(5,426,852	)		(1,551,365	)		(2,700,721	)
Class B		(257,218	)		(591,776	)		(216,941	)		(520,644	)
Class C		(131,146	)		(281,867	)		(208,996	)		(372,415	)
		(3,009,933	)		(6,300,495	)		(1,977,302	)		(3,593,780	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		7,366,846			10,957,142			10,215,792			24,239,523
Class B		40,903			142,404			133,174			930,739
Class C		575,593			1,220,741			2,273,752			4,270,651

Net asset value of shares issued upon reinvestment of dividends
and distributions:
Class A		1,356,136			2,827,580			870,133			1,330,584
Class B		133,393			284,984			134,608			319,486
Class C		74,948			181,106			143,106			245,798
		9,547,819			15,613,957			13,770,565			31,336,781
Cost of shares repurchased:
Class A		(10,775,234	)		(14,796,665	)		(3,818,394	)		(9,948,784	)
Class B		(1,651,550	)		(2,670,968	)		(2,862,327	)		(4,420,476	)
Class C		(799,489	)		(1,720,211	)		(932,077	)		(1,449,969	)
		(13,226,273	)		(19,187,844	)		(7,612,798	)		(15,819,229	)
Increase (decrease) in net assets derived from capital share transactions		(3,678,454	)		(3,573,887	)		6,157,767			15,517,552
Net Increase (Decrease) in Net Assets		(2,729,670	)		(6,472,645	)		7,475,827			14,926,225

Net Assets:
Beginning of period		155,997,847			162,470,492			103,680,629			88,754,404
End of period¹	$	153,268,177		$	155,997,847		$	111,156,456		$	103,680,629

¹Including undistributed net investment income	$	—		$	—		$	1,300		$	1,300


See accompanying notes

(continues) 19

Statements of changes in net assets

	Delaware Tax-Free						Delaware Tax-Free
	Colorado Fund						Idaho Fund
	Six Months						Six Months
	Ended			Year Ended			Ended			Year Ended
	2/28/07			8/31/06			2/28/07			8/31/06
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,753,598		$	12,314,501		$	1,541,325		$	3,239,586
Net realized gain (loss) on investments		649,140			450,227			11,195			(101,210	)
Net change in unrealized appreciation/depreciation of investments		1,327,910			(4,436,948	)		638,321			(1,375,994	)
Net increase in net assets resulting from operations		7,730,648			8,327,780			2,190,841			1,762,382

Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(5,450,967	)		(11,609,299	)		(1,220,002	)		(2,474,619	)
Class B		(126,562	)		(336,062	)		(120,141	)		(299,166	)
Class C		(171,961	)		(361,239	)		(199,908	)		(463,351	)
		(5,749,490	)		(12,306,600	)		(1,540,051	)		(3,237,136	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		7,350,603			13,799,363			5,057,460			10,429,777
Class B		21,499			33,782			330,800			124,022
Class C		752,630			2,039,444			254,587			1,701,162

Net asset value of shares issued upon reinvestment of dividends
and distributions:
Class A		3,538,744			7,376,964			795,988			1,606,348
Class B		73,868			204,522			71,069			185,231
Class C		123,738			246,055			126,399			289,646
		11,861,082			23,700,130			6,636,303			14,336,186
Cost of shares repurchased:
Class A		(9,177,246	)		(28,843,934	)		(4,240,554	)		(8,767,129	)
Class B		(1,703,197	)		(2,239,852	)		(804,690	)		(3,139,497	)
Class C		(708,582	)		(1,361,492	)		(1,553,312	)		(3,967,817	)
		(11,589,025	)		(32,445,278	)		(6,598,556	)		(15,874,443	)
Increase (decrease) in net assets derived from capital share transactions		272,057			(8,745,148	)		37,747			(1,538,257	)
Net Increase (Decrease) in Net Assets		2,253,215			(12,723,968	)		688,537			(3,013,011	)

Net Assets:
Beginning of period		276,964,584			289,688,552			84,130,034			87,143,045
End of period¹	$	279,217,799		$	276,964,584		$	84,818,571		$	84,130,034

¹Including distributions in excess of net investment income	$	—			—		$	(11,281	)	$	(11,301	)


See accompanying notes

Financial highlights

Delaware Tax-Free Arizona Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 11.350		$ 11.560		$ 11.410		$ 11.160		$ 11.530		$ 11.500

Income (loss) from investment operations:
Net investment income	0.231		0.467		0.468		0.469		0.502		0.510
Net realized and unrealized gain (loss) on investments	0.070		(0.210	)	0.174		0.308		(0.253	)	0.100
Total from investment operations	0.301		0.257		0.642		0.777		0.249		0.610

Less dividends and distributions from:
Net investment income	(0.231	)	(0.467	)	(0.468	)	(0.469	)	(0.502	)	(0.510	)
Net realized gain on investments	—		—		(0.024	)	(0.058	)	(0.117	)	(0.070	)
Total dividends and distributions	(0.231	)	(0.467	)	(0.492	)	(0.527	)	(0.619	)	(0.580	)

Net asset value, end of period	$ 11.420		$ 11.350		$ 11.560		$ 11.410		$ 11.160		$ 11.530

Total return²	2.67%		2.31%		5.74%		7.09%		2.17%		5.54%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 130,222		$ 131,468		$ 134,874		$ 122,436		$ 129,683		$ 141,424
Ratio of expenses to average net assets	0.77%		0.76%		0.80%		0.90%		0.86%		0.90%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly	0.93%		0.91%		0.91%		0.90%		0.91%		0.90%
Ratio of net investment income to average net assets	4.08%		4.12%		4.07%		4.14%		4.37%		4.50%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.92%		3.97%		3.96%		4.14%		4.32%		4.50%
Portfolio turnover	5%		8%		3%		19%		29%		46%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

(continues) 21

Financial highlights

Delaware Tax-Free Arizona Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$11.360		$11.570		$11.420		$11.170		$11.540		$11.500

Income (loss) from investment operations:
Net investment income	0.188		0.382		0.382		0.384		0.416		0.426
Net realized and unrealized gain (loss) on investments	0.070		(0.210	)	0.174		0.308		(0.253	)	0.110
Total from investment operations	0.258		0.172		0.556		0.692		0.163		0.536

Less dividends and distributions from:
Net investment income	(0.188	)	(0.382	)	(0.382	)	(0.384	)	(0.416	)	(0.426	)
Net realized gain on investments	—		—		(0.024	)	(0.058	)	(0.117	)	(0.070	)
Total dividends and distributions	(0.188	)	(0.382	)	(0.406	)	(0.442	)	(0.533	)	(0.496	)

Net asset value, end of period	$11.430		$11.360		$11.570		$11.420		$11.170		$11.540

Total return²	2.29%		1.54%		4.95%		6.28%		1.41%		4.83%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$15,028		$16,413		$19,005		$13,355		$14,666		$13,678
Ratio of expenses to average net assets	1.52%		1.51%		1.55%		1.65%		1.61%		1.65%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly	1.68%		1.66%		1.66%		1.65%		1.66%		1.65%
Ratio of net investment income to average net assets	3.33%		3.37%		3.32%		3.39%		3.62%		3.75%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.17%		3.22%		3.21%		3.39%		3.57%		3.75%
Portfolio turnover	5%		8%		3%		19%		29%		46%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

See accompanying notes

Delaware Tax-Free Arizona Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.380 $ 11.580 $ 11.430 $ 11.180 $ 11.550 $ 11.520

Income (loss) from investment operations:

Net investment income 0.188 0.381 0.382 0.384 0.415 0.426

Net realized and unrealized gain (loss) on investments 0.070 (0.200 ) 0.174 0.308 (0.253 ) 0.100

Total from investment operations 0.258 0.181 0.556 0.692 0.162 0.526

Less dividends and distributions from:

Net investment income (0.188 ) (0.381 ) (0.382 ) (0.384 ) (0.415 ) (0.426 )

Net realized gain on investments — — (0.024 ) (0.058 ) (0.117 ) (0.070 )

Total dividends and distributions (0.188 ) (0.381 ) (0.406 ) (0.442 ) (0.532 ) (0.496 )

Net asset value, end of period $ 11.450 $ 11.380 $ 11.580 $ 11.430 $ 11.180 $ 11.550

Total return² 2.28% 1.63% 4.94% 6.27% 1.40% 4.73%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $8,018 $8,117 $8,591 $6,651 $8,544 $8,115

Ratio of expenses to average net assets 1.52% 1.51% 1.55% 1.65% 1.61% 1.65%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.68% 1.66% 1.66% 1.65% 1.66% 1.65%

Ratio of net investment income to average net assets 3.33% 3.37% 3.32% 3.39% 3.62% 3.75%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.17% 3.22% 3.21% 3.39% 3.57% 3.75%

Portfolio turnover 5% 8% 3% 19% 29% 46%

¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

(continues) 23

Financial highlights

Delaware Tax-Free California Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.400 $ 11.490 $ 11.110 $ 10.750 $ 11.010 $ 10.950

Income (loss) from investment operations:

Net investment income 0.223 0.450 0.462 0.518 0.537 0.546

Net realized and unrealized gain (loss) on investments 0.140 (0.090 ) 0.380 0.360 (0.260 ) 0.060

Total from investment operations 0.363 0.360 0.842 0.878 0.277 0.606

Less dividends and distributions from:

Net investment income (0.223 ) (0.450 ) (0.462 ) (0.518 ) (0.537 ) (0.546 )

Total dividends and distributions (0.223 ) (0.450 ) (0.462 ) (0.518 ) (0.537 ) (0.546 )

Net asset value, end of period $ 11.540 $ 11.400 $ 11.490 $ 11.110 $ 10.750 $ 11.010

Total return² 3.21% 3.24% 7.72% 8.34% 2.51% 5.77%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $84,250 $75,995 $60,744 $24,797 $22,169 $23,462

Ratio of expenses to average net assets 0.90% 0.88% 0.84% 0.50% 0.50% 0.50%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 0.99% 0.97% 1.06% 0.96% 0.93% 0.97%

Ratio of net investment income to average net assets 3.91% 3.97% 4.03% 4.72% 4.84% 5.05%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.82% 3.88% 3.81% 4.26% 4.41% 4.58%

Portfolio turnover 9% 14% 11% 48% 56% 93%

¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

Delaware Tax-Free California Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.440 $ 11.530 $ 11.160 $ 10.790 $ 11.050 $ 10.990

Income (loss) from investment operations:

Net investment income 0.180 0.365 0.377 0.436 0.453 0.465

Net realized and unrealized gain (loss) on investments 0.140 (0.090 ) 0.370 0.370 (0.260 ) 0.060

Total from investment operations 0.320 0.275 0.747 0.806 0.193 0.525

Less dividends and distributions from:

Net investment income (0.180 ) (0.365 ) (0.377 ) (0.436 ) (0.453 ) (0.465 )

Total dividends and distributions (0.180 ) (0.365 ) (0.377 ) (0.436 ) (0.453 ) (0.465 )

Net asset value, end of period $ 11.580 $ 11.440 $ 11.530 $ 11.160 $ 10.790 $ 11.050

Total return² 2.82% 2.46% 6.80% 7.60% 1.73% 4.95%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $12,489 $14,918 $18,254 $14,530 $16,165 $15,105

Ratio of expenses to average net assets 1.65% 1.63% 1.59% 1.25% 1.25% 1.25%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.74% 1.72% 1.81% 1.71% 1.68% 1.72%

Ratio of net investment income to average net assets 3.16% 3.22% 3.28% 3.97% 4.09% 4.30%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.07% 3.13% 3.06% 3.51% 3.66% 3.83%

Portfolio turnover 9% 14% 11% 48% 56% 93%



¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

(continues) 25

Financial highlights

Delaware Tax-Free California Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.420 $ 11.500 $ 11.130 $ 10.760 $ 11.020 $ 10.970

Income (loss) from investment operations:

Net investment income 0.180 0.365 0.377 0.436 0.454 0.465

Net realized and unrealized gain (loss) on investments 0.140 (0.080 ) 0.370 0.370 (0.260 ) 0.050

Total from investment operations 0.320 0.285 0.747 0.806 0.194 0.515

Less dividends and distributions from:

Net investment income (0.180 ) (0.365 ) (0.377 ) (0.436 ) (0.454 ) (0.465 )

Total dividends and distributions (0.180 ) (0.365 ) (0.377 ) (0.436 ) (0.454 ) (0.465 )

Net asset value, end of period $ 11.560 $ 11.420 $ 11.500 $ 11.130 $ 10.760 $ 11.020

Total return² 2.83% 2.56% 6.81% 7.62% 1.74% 4.86%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $14,417 $12,768 $9,756 $5,595 $7,013 $7,357

Ratio of expenses to average net assets 1.65% 1.63% 1.59% 1.25% 1.25% 1.25%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.74% 1.72% 1.81% 1.71% 1.68% 1.72%

Ratio of net investment income to average net assets 3.16% 3.22% 3.28% 3.97% 4.09% 4.30%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.07% 3.13% 3.06% 3.51% 3.66% 3.83%

Portfolio turnover 9% 14% 11% 48% 56% 93%

¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.

² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

Delaware Tax-Free Colorado Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.040 $ 11.200 $ 11.070 $ 10.830 $ 11.080 $ 11.120

Income (loss) from investment operations:

Net investment income 0.233 0.488 0.495 0.510 0.527 0.532

Net realized and unrealized gain (loss) on investments 0.080 (0.160 ) 0.130 0.240 (0.250 ) (0.040 )

Total from investment operations 0.313 0.328 0.625 0.750 0.277 0.492

Less dividends and distributions from:

Net investment income (0.233 ) (0.488 ) (0.495 ) (0.510 ) (0.527 ) (0.532 )

Total dividends and distributions (0.233 ) (0.488 ) (0.495 ) (0.510 ) (0.527 ) (0.532 )

Net asset value, end of period $ 11.120 $ 11.040 $ 11.200 $ 11.070 $ 10.830 $ 11.080

Total return² 2.86% 3.03% 5.78% 7.04% 2.52% 4.60%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $262,342 $258,773 $270,149 $276,534 $299,528 $314,695

Ratio of expenses to average net assets 0.95% 0.93% 0.94% 0.95% 0.99% 0.95%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 0.98% 0.94% 0.94% 0.95% 0.99% 0.95%

Ratio of net investment income to average net assets 4.24% 4.43% 4.46% 4.63% 4.76% 4.86%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 4.21% 4.42% 4.46% 4.63% 4.76% 4.86%

Portfolio turnover 16% 8% 8% 13% 30% 36%

See accompanying notes

(continues) 27

Financial highlights

Delaware Tax-Free Colorado Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.050 $ 11.200 $ 11.080 $ 10.830 $ 11.090 $ 11,120

Income (loss) from investment operations:

Net investment income 0.192 0.405 0.412 0.427 0.444 0.450

Net realized and unrealized gain (loss) on investments 0.080 (0.150 ) 0.120 0.250 (0.260 ) (0.030 )

Total from investment operations 0.272 0.255 0.532 0.677 0.184 0.420

Less dividends and distributions from:

Net investment income (0.192 ) (0.405 ) (0.412 ) (0.427 ) (0.444 ) (0.450 )

Total dividends and distributions (0.192 ) (0.405 ) (0.412 ) (0.427 ) (0.444 ) (0.450 )

Net asset value, end of period $ 11.130 $ 11.050 $ 11.200 $ 11.080 $ 10.830 $ 11.090

Total return² 2.48% 2.35% 4.89% 6.34% 1.66% 3.92%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $6,665 $8,221 $10,370 $12,411 $13,108 $14,843

Ratio of expenses to average net assets 1.70% 1.68% 1.69% 1.70% 1.74% 1.70%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.73% 1.69% 1.69% 1.70% 1.74% 1.70%

Ratio of net investment income to average net assets 3.49% 3.68% 3.71% 3.88% 4.01% 4.11%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.46% 3.67% 3.71% 3.88% 4.01% 4.11%

Portfolio turnover 16% 8% 8% 13% 30% 36%

See accompanying notes

Delaware Tax-Free Colorado Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.070 $ 11.220 $ 11.090 $ 10.850 $ 11.100 $ 11.130

Income (loss) from investment operations:

Net investment income 0.192 0.405 0.413 0.427 0.444 0.450

Net realized and unrealized gain (loss) on investments 0.080 (0.150 ) 0.130 0.240 (0.250 ) (0.030 )

Total from investment operations 0.272 0.255 0.543 0.667 0.194 0.420

Less dividends and distributions from:

Net investment income (0.192 ) (0.405 ) (0.413 ) (0.427 ) (0.444 ) (0.450 )

Total dividends and distributions (0.192 ) (0.405 ) (0.413 ) (0.427 ) (0.444 ) (0.450 )

Net asset value, end of period $ 11.150 $ 11.070 $ 11.220 $ 11.090 $ 10.850 $ 11.100

Total return² 2.47% 2.34% 4.99% 6.23% 1.74% 3.91%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $10,211 $9,971 $9,170 $9,579 $8,606 $8,074

Ratio of expenses to average net assets 1.70% 1.68% 1.69% 1.70% 1.74% 1.70%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.73% 1.69% 1.69% 1.70% 1.74% 1.70%

Ratio of net investment income to average net assets 3.49% 3.68% 3.71% 3.88% 4.01% 4.11%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.46% 3.67% 3.71% 3.88% 4.01% 4.11%

Portfolio turnover 16% 8% 8% 13% 30% 36%

(continues) 29

Financial highlights

Delaware Tax-Free Idaho Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.450 $ 11.630 $ 11.490 $ 11.140 $ 11.320 $ 11.260

Income (loss) from investment operations:

Net investment income 0.222 0.449 0.452 0.478 0.497 0.522

Net realized and unrealized gain (loss) on investments 0.090 (0.180 ) 0.140 0.353 (0.181 ) 0.059

Total from investment operations 0.312 0.269 0.592 0.831 0.316 0.581

Less dividends and distributions from:

Net investment income (0.222 ) (0.449 ) (0.452 ) (0.481 ) (0.496 ) (0.521 )

Total dividends and distributions (0.222 ) (0.449 ) (0.452 ) (0.481 ) (0.496 ) (0.521 )

Net asset value, end of period $ 11.540 $ 11.450 $ 11.630 $ 11.490 $ 11.140 $ 11.320

Total return² 2.75% 2.40% 5.25% 7.58% 2.81% 5.36%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $64,911 $62,808 $60,554 $55,572 $51,682 $45,108

Ratio of expenses to average net assets 0.87% 0.85% 0.87% 0.97% 0.93% 1.00%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 0.99% 0.98% 0.98% 0.97% 1.00% 1.03%

Ratio of net investment income to average net assets 3.90% 3.95% 3.92% 4.21% 4.36% 4.69%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.78% 3.82% 3.81% 4.21% 4.29% 4.66%

Portfolio turnover 10% 15% 27% 13% 18% 11%

Delaware Tax-Free Idaho Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.430 $ 11.610 $ 11.480 $ 11.130 $ 11.310 $ 11.250

Income (loss) from investment operations:

Net investment income 0.180 0.364 0.366 0.393 0.412 0.439

Net realized and unrealized gain (loss) on investments 0.090 (0.180 ) 0.130 0.353 (0.181 ) (0.059

Total from investment operations 0.270 0.184 0.496 0.746 0.231 0.498

Less dividends and distributions from:

Net investment income (0.180 ) (0.364 ) (0.366 ) (0.396 ) (0.411 ) (0.438 )

Total dividends and distributions (0.180 ) (0.364 ) (0.366 ) (0.396 ) (0.411 ) (0.438 )

Net asset value, end of period $ 11.520 $ 11.430 $ 11.610 $ 11.480 $ 11.130 $ 11.310

Total return² 2.38% 1.64% 4.39% 6.79% 2.05% 4.58%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $7,549 $7,892 $10,911 $13,044 $16,801 $14,809

Ratio of expenses to average net assets 1.62% 1.60% 1.62% 1.72% 1.68% 1.75%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.74% 1.73% 1.73% 1.72% 1.75% 1.78%

Ratio of net investment income to average net assets 3.15% 3.20% 3.17% 3.46% 3.61% 3.94%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.03% 3.07% 3.06% 3.46% 3.54% 3.91%

Portfolio turnover 10% 15% 27% 13% 18% 11%

(continues) 31

Financial highlights

Delaware Tax-Free Idaho Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 11.440 $ 11.630 $ 11.490 $ 11.130 $ 11.310 $ 11.250

Income (loss) from investment operations:

Net investment income 0.180 0.364 0.366 0.393 0.413 0.439

Net realized and unrealized gain (loss) on investments 0.090 (0.190 ) 0.140 0.362 (0.181 ) (0.059

Total from investment operations 0.270 0.174 0.506 0.755 0.232 0.498

Less dividends and distributions from:

Net investment income (0.180 ) (0.364 ) (0.366 ) (0.395 ) (0.412 ) (0.438 )

Total dividends and distributions (0.180 ) (0.364 ) (0.366 ) (0.395 ) (0.412 ) (0.438 )

Net asset value, end of period $ 11.530 $ 11.440 $ 11.630 $ 11.490 $ 11.130 $ 11.310

Total return² 2.38% 1.56% 4.47% 6.87% 2.05% 4.57%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $12,359 $13,430 $15,678 $15,041 $16,296 $9,829

Ratio of expenses to average net assets 1.62% 1.60% 1.62% 1.72% 1.68% 1.75%

Ratio of expenses to average net assets

   prior to expense limitation and expenses paid indirectly 1.74% 1.73% 1.73% 1.72% 1.75% 1.78%

Ratio of net investment income to average net assets 3.15% 3.20% 3.17% 3.46% 3.61% 3.94%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.03% 3.07% 3.06% 3.46% 3.54% 3.91%

Portfolio turnover 10% 15% 27% 13% 18% 11%

Notes to financial statements

Delaware Western States Funds

February 28, 2007 (Unaudited)

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Colorado Fund. Voyageur Insured Funds is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free Arizona Fund (formerly, Delaware Tax-Free Arizona Insured Fund) and Delaware Tax-Free Minnesota Insured Fund. Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds are individually referred to as a “Trust” and collectively as the “Trusts.” These financial statements and related notes pertain to Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, and Delaware Tax-Free Idaho Fund (each a “Fund” and, collectively, the “Funds”). The above Trusts are open-end investment companies. The Funds are considered non-diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a front-end sales charge of up to 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares are sold with a contingent deferred sales charge that declines from 4% to zero depending upon the period of time the shares are held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a contingent deferred sales charge of 1%, if redeemed during the first 12 months.

The investment objective of the Funds is to seek as high a level of current income exempt from federal income tax and personal income tax in their respective states, as is consistent with preservation of capital.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by the Funds.

Security Valuation — Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Open-end investment companies are valued at their published net asset value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events).

In September 2006, Financial Accounting Standards Board (FASB) issued FASB Statement No. 157 “Fair Value Measurements” (Statement 157). Statement 157 establishes a framework for measuring fair value in generally accepted accounting principles, clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. Statement 157 is intended to increase consistency and comparability among fair value estimates used in financial reporting. Statement 157 is effective for fiscal years beginning after November 15, 2007. Management does not expect the adoption of Statement 157 to have an impact on the amounts reported in the financial statements.

Federal Income Taxes — Each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements.

On July 13, 2006, FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in Funds net asset value calculations as late as the Funds’ last net asset value calculation in the first required financial statement reporting period. As a result, the Funds will incorporate FIN 48 in their semiannual report on February 29, 2008. Although the Funds’ tax positions are currently being evaluated, management does not expect the adoption of FIN 48 to have a material impact on the Funds’ financial statements.

Class Accounting — Investment income and common expenses are allocated to the classes of each Fund on the basis of “settled shares” of each class in relation to the net assets of each Fund. Realized and unrealized gain (loss) on investments are allocated to the various classes of each Fund on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Other — Expenses directly attributable to the Funds are charged directly to the Funds. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on

(continues) 33

Notes to financial statements

Delaware Western States Funds

1. Significant Accounting Policies (continued)

the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. Each Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually.

The Funds receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. The expenses paid under this arrangement are included in custodian fees on the Statements of Operations with the corresponding expense offset shown as “expense paid indirectly.”

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

In accordance with the terms of its respective investment management agreement, each Fund pays Delaware Management Company (DMC), a series of Delaware Management Business Trust and the investment manager, an annual fee based on each Fund’s average daily net assets as follows:

	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
On the first $500 million	0.500%	0.550%	0.550%	0.550%
On the next $500 million	0.475%	0.500%	0.500%	0.500%
On the next $1.5 billion	0.450%	0.450%	0.450%	0.450%
In excess of $2.5 billion	0.425%	0.425%	0.425%	0.425%

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that annual operating expenses, exclusive of taxes, interest, brokerage commissions, 12b-1 plan expense, certain insurance costs and non-routine expenses or costs, do not exceed specified percentages of average daily net assets through December 31, 2007 as shown below:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
0.50%	0.63%	0.68%	0.60%

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides accounting, administration, dividend disbursing and transfer agent services. The Funds pay DSC a monthly fee computed at the annual rate of 0.04% of each Fund’s average daily net assets for accounting and administration services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
Investment management fees payable to DMC	$40,369	$39,544	$110,053	$26,705
Dividend disbursing, transfer agent,
accounting and administration fees,
and other expenses payable to DSC	23,386	16,013	43,514	14,717
Distribution fees payable to DDLP	89,273	76,521	132,223	57,519
Other expenses payable to DMC and affiliates*	9,580	4,239	10,170	3,303

*DMC, as part of its administrative services, pays operating expenses on behalf of each Fund and is reimbursed on a periodic basis. Such expenses include items such as printing of shareholder reports, fees for audit, legal and tax services, registration fees and trustees’ fees.

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2007, each Fund was charged internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
$4,084	$2,882	$7,391	$2,282

For the six months ended February 28, 2007, DDLP earned commissions on sales of Class A shares for each Fund as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
$8,758	$8,157	$16,250	$11,613

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

For the six months ended February 28, 2007, DDLP received gross contingent deferred sales charge commissions on redemption of each Fund’s Class B and Class C shares, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-dealers on sales of those shares. The amounts received were as follows:

	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
Class B	$9,928	$12,505	$1,474	$2,979
Class C	398	64	610	24

Trustees’ fees and benefits include expenses accrued by the Funds for each Trustee’s retainer, per meeting fees and retirement benefits. Independent Trustees with over five years of uninterrupted service were eligible to participate in a retirement plan that provides for the payment of benefits upon retirement. The amount of the retirement benefit was determined based on factors set forth in the plan, including the number of years of service. On November 16, 2006, the Board of Trustees of the Funds unanimously voted to terminate the retirement plan. Payments equal to the net present value of the earned benefits were made in 2007 to those independent trustees so entitled. The retirement benefit payouts were as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
$19,419	$13,082	$34,628	$10,469

Certain officers of DMC, DSC and DDLP are officers and/or trustees of the Trust. These officers and trustees are paid no compensation by the Funds.

3. Investments

For the six months ended February 28, 2007, the Funds made purchases and sales of investment securities other than short-term investments as follows:

	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
Purchases	$3,534,445	$11,932,383	$21,374,786	$4,222,600
Sales	6,970,307	4,674,305	22,690,190	5,535,099

At February 28, 2007, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At February 28, 2007, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

	Delaware Tax-Free	Delaware Tax-Free		Delaware Tax-Free		Delaware Tax-Free
	Arizona Fund	California Fund		Colorado Fund		Idaho Fund
Cost of investments	$ 144,426,971	$104,308,090		$259,201,354		$79,748,790
Aggregate unrealized appreciation	$ 8,452,182	$ 5,764,681		$ 17,129,810		$ 3,110,121
Aggregate unrealized depreciation	—	(1,961	)	(35,280	)	(9,711	)
Net unrealized appreciation	$ 8,452,182	$ 5,762,720		$ 17,094,530		$ 3,100,410

4. Dividend and Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Additionally, net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the six months ended February 28, 2007 and the year ended August 31, 2006 was as follows:

	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
Six Months Ended 2/28/07*
Tax-exempt income	$3,009,933	$1,977,302	$5,749,490	$1,540,051
Year Ended 8/31/06
Tax-exempt income	$6,300,495	$3,593,780	$12,306,600	$3,237,136

*Tax information for the period ended February 28, 2007 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

(continues) 35

Notes to financial statements

Delaware Western States Funds

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since the final tax characteristics cannot be determined until fiscal year end. As of February 28, 2007, the estimated components of net assets on a tax basis were as follows:

	Delaware Tax-Free		Delaware Tax-Free		Delaware Tax-Free		Delaware Tax-Free
	Arizona Fund		California Fund		Colorado Fund		Idaho Fund
Shares of beneficial interest	$147,487,298		$106,060,149		$270,360,412		$82,137,560
Undistributed tax-exempt income	—		1,300		—		—
Other temporary differences	—		—		—		(11,281	)
Realized gains (losses) 9/1/06–2/28/07	74,662		84,494		649,140		(56,876	)
Post-October losses	—		—		—		(9,381	)
Capital loss carryforwards as of 8/31/06	(2,745,965	)*	(752,207	)	(8,886,283	)	(341,861	)
Unrealized appreciation of investments	8,452,182		5,762,720		17,094,530		3,100,410
Net assets	$153,268,177		$111,156,456		$279,217,799		$84,818,571

*The amount of this loss which can be utilized in subsequent years is subject to an annual limitation in accordance with the Internal Revenue Code due to the Fund (formerly, the Delaware Tax-Free Arizona Insured Fund) reorganization with the Delaware Tax-Free Arizona Fund.

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales and tax treatment of market discount on debt instruments.

Post-October losses represent losses realized on investment transactions from November 1, 2006 through February 28, 2007 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2007, the Funds recorded an estimate of these differences since the final tax characteristics cannot be determined until fiscal year end.

	Delaware Tax-Free	Delaware Tax-Free
	Colorado Fund	Idaho Fund
Distributions in excess of net investment income	$(4,108)	$(1,254)
Accumulated net realized gain (loss)	4,108	1,254

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. Capital loss carryforwards remaining at August 31, 2006 will expire as follows:

Year of	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Expiration	Arizona Fund	California Fund	Colorado Fund	Idaho Fund
2008	$ 985,821	$ —	$ —	$ —
2009	—	746,168	$2,054,025	151,477
2010	—	—	—	166,949
2011	78,759	6,039	—	—
2012	1,681,385	—	4,571,043	—
2013	—	—	57,695	—
2014	—	—	2,203,520	23,435
Total	$2,745,965	$752,207	$8,886,283	$341,861

For the six months ended February 28, 2007, each Fund had capital gains (losses), which may reduce (increase) the capital loss carryforwards as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
$74,662	$84,494	$649,140	$(56,876)

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund
	Six Months				Six Months
	Ended		Year Ended		Ended		Year Ended
	2/28/07		8/31/06		2/28/07		8/31/06
Shares sold:
Class A	647,864		971,193		892,149		2,142,834
Class B	3,600		12,623		11,584		81,632
Class C	50,456		107,731		197,964		376,829

Shares issued upon reinvestment of dividends and distributions:
Class A	119,084		249,650		75,894		117,718
Class B	11,705		25,147		11,694		28,142
Class C	6,566		15,949		12,462		21,715
	839,275		1,382,293		1,201,747		2,768,870

Shares repurchased:
Class A	(946,127	)	(1,309,086	)	(333,438	)	(881,647	)
Class B	(145,225	)	(236,154	)	(248,760	)	(389,023	)
Class C	(69,999	)	(151,943	)	(81,320	)	(128,171	)
	(1,161,351	)	(1,697,183	)	(663,518	)	(1,398,841	)
Net increase (decrease)	(322,076	)	(314,890	)	538,229		1,370,029

	Delaware Tax-Free				Delaware Tax-Free
	Colorado Fund				Idaho Fund
	Six Months				Six Months
	Ended		Year Ended		Ended		Year Ended
	2/28/07		8/31/06		2/28/07		8/31/06
Shares sold:
Class A	663,177		1,253,924		440,234		909,746
Class B	1,943		3,073		28,858		10,946
Class C	67,705		184,841		22,206		148,802

Shares issued upon reinvestment of dividends and distributions:
Class A	319,386		669,689		69,277		140,782
Class B	6,661		18,549		6,195		16,261
Class C	11,143		22,293		11,009		25,408
	1,070,015		2,152,369		577,779		1,251,945

Shares repurchased:
Class A	(828,117	)	(2,621,749	)	(369,445	)	(770,258	)
Class B	(153,621	)	(203,332	)	(70,133	)	(276,018	)
Class C	(63,779	)	(123,594	)	(135,120	)	(348,933	)
	(1,045,517	)	(2,948,675	)	(574,698	)	(1,395,209	)
Net increase (decrease)	24,498		(796,306	)	3,081		(143,264	)

(continues) 37

Notes to financial statements

Delaware Western States Funds

6. Capital Shares (continued)

For the six months ended February 28, 2007 and the year ended August 31, 2006, the following shares and values were converted from Class B to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables on the previous page and the Statements of Changes in Net Assets.

	Six Months Ended				Year Ended
	2/28/07				8/31/06
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free Arizona Fund	34,361	34,367	$	390,301	71,582	71,646	$	812,252
Delaware Tax-Free California Fund	73,522	73,778		847,314	166,547	167,211		1,896,023
Delaware Tax-Free Colorado Fund	37,842	37,859		419,104	101,489	101,560		1,116,940
Delaware Tax-Free Idaho Fund	27,457	27,427		315,230	62,906	62,842		719,818

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments^® Family of Funds (the “Participants”), participates in a $225,000,000 revolving line of credit facility to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The Participants are charged an annual commitment fee, which is allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The Funds had no amounts outstanding as of February 28, 2007, or at any time during the period then ended.

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Statements of Net Assets.

The Funds may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a “current refunding.” Advance refunded bonds are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are “escrowed to maturity” when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates. Bonds are considered “pre-refunded” when the refunding issue’s proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s Investors Service, Inc., Standard & Poor’s Ratings Group, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

Each Fund may invest up to 15% of its total assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board of Trustees has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. At February 28, 2007, there were no Rule 144A securities and no securities have been determined to be illiquid under each Fund’s Liquidity Procedures.

9. Contractual Obligations

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.

10. Subsequent Event

At a meeting on February 16, 2007, the Board of Trustees of Delaware Investments^® Family of Funds approved the termination of new sales and most subsequent investments of Class B shares of each fund in the complex (each, a “Fund”). Effective at the close of business on May 31, 2007, no new or subsequent investments, including investments through automatic investment plans and by qualified retirement plans (such as 401(k) plans, 403(b) plans, or 457 plans), will be allowed in Class B shares of a Fund, except through a reinvestment of dividends or capital gains or permitted exchanges. Existing shareholders of Class B shares may continue to hold their Class B shares, reinvest dividends into Class B shares, and exchange their Class B shares of one Fund for Class B shares of another Fund, as permitted by existing exchange privileges. Existing Class B shareholders wishing to make subsequent purchases in a Fund’s shares will be permitted to invest in other classes of the Fund, subject to that class’ pricing structure and eligibility requirements, if any.

For Class B shares outstanding as of May 31, 2007 and Class B shares acquired upon reinvestment of dividends or capital gains, all Class B share attributes, including the contingent deferred sales charge (“CDSC”) schedules, conversion to Class A schedule, and distribution and service (12b-1) fees, will continue in their current form. However, effective at the close of business on May 31, 2007, reinvestment of redeemed shares with respect to Class B shares (which, as described in the prospectus, permits you to reinvest within 12 months of selling your shares and have any CDSC you paid on such shares credited back to your account) will be discontinued. In addition, because a Fund’s or its distributor’s ability to assess certain sales charges and fees is dependent on the sale of new shares, the termination of new purchases of Class B shares could ultimately lead to the elimination and/or reduction of such sales charges and fees. A Fund may not be able to provide shareholders with advance notice of the reduction in these sales charges and fees. You will be notified via a Prospectus Supplement if there are any changes to any attributes, sales charges, or fees.

About the organization

This semiannual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, and Delaware Tax-Free Idaho Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, and Delaware Tax-Free Idaho Fund and the Delaware Investments^® Performance Update for the most recently completed calendar quarter. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the Funds. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the Funds will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

Board of trustees

Patrick P. Coyne
Chairman, President, and
Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA

Thomas L. Bennett
Private Investor
Rosemont, PA

John A. Fry
President
Franklin & Marshall College
Lancaster, PA

Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY

Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA

Ann R. Leven
Consultant
ARL Associates
New York, NY

Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN

J. Richard Zecher
Founder
Investor Analytics
Scottsdale, AZ

Affiliated officers

David F. Connor
Vice President, Deputy General Counsel,
and Secretary
Delaware Investments Family of Funds
Philadelphia, PA

David P. O’Connor
Senior Vice President, General Counsel,
and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA

John J. O’Connor
Senior Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA

Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA

Contact information

Investment manager
Delaware Management Company, a series
of Delaware Management Business Trust
Philadelphia, PA

National distributor
Delaware Distributors, L.P.
Philadelphia, PA

Shareholder servicing, dividend
disbursing, and transfer agent
Delaware Service Company, Inc.
2005 Market Street
Philadelphia, PA 19103-7094

For shareholders
800 523-1918

For securities dealers and financial
institutions representatives only
800 362-7500

Web site
www.delawareinvestments.com

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Each Fund’s Forms N-Q, as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities are available without charge (i) upon request, by calling 800 523-1918; (ii) on each Fund’s Web site at http://www.delawareinvestments.com; and (iii) on the Commission’s Web site at http://www.sec.gov. Each Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling 800 SEC-0330.

Information (if any) regarding how each Fund voted proxies relating to portfolio securities during the most recently disclosed 12-month period ended June 30 is available without charge (i) through each Fund’s Web site at http://www.delawareinvestments.com; and (ii) on the Commission’s Web site at http://www.sec.gov.

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(1576) Printed in the USA

SA-WEST [2/07] CGI 4/07 MF-07-03-148 PO11731


	Semiannual Report	Delaware
		Tax-Free Minnesota Fund

		Delaware
		Tax-Free Minnesota
		Insured Fund

		Delaware
		Tax-Free Minnesota
		Intermediate Fund

		Delaware
		Minnesota High-Yield
		Municipal Bond Fund

		February 28, 2007

Fixed income mutual funds

Table of contents

	> Disclosure of Fund expenses		1
	> Sector allocations and credit quality breakdowns		3
	> Statements of net assets		5
	> Statements of operations		21
	> Statements of changes in net assets		22
	> Financial highlights		24
	> Notes to financial statements		36
	> About the organization		44

Disclosure of Fund expenses

For the period September 1, 2006 to February 28, 2007

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2006 to February 28, 2007.

Actual Expenses

Hypothetical Example for Comparison Purposes

“Expenses Paid During Period” are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Delaware Tax-Free Minnesota Fund
Expense Analysis of an Investment of $1,000

				Expenses
	Beginning	Ending		Paid During
	Account	Account	Annualized	Period
	Value	Value	Expense	9/1/06 to
	9/1/06	2/28/07	Ratio	2/28/07
Actual Fund Return
Class A	$1,000.00	$1,028.60	1.24%	$6.24
Class B	1,000.00	1,024.80	1.99%	9.99
Class C	1,000.00	1,024.70	1.99%	9.99
Hypothetical 5% Return (5% return before expenses)
Class A	$1,000.00	$1,018.64	1.24%	$6.21
Class B	1,000.00	1,014.93	1.99%	9.94
Class C	1,000.00	1,014.93	1.99%	9.94

The expenses in the table above includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floaters programs. See Notes 1 and 7 in “Notes to Financial Statements.”

Delaware Tax-Free Minnesota Insured Fund
Expense Analysis of an Investment of $1,000

Expenses

Beginning Ending Paid During

Account Account Annualized Period

Value Value Expense 9/1/06 to

9/1/06 2/28/07 Ratio 2/28/07

Actual Fund Return

Class A $1,000.00 $1,025.60 1.13% $5.68

Class B 1,000.00 1,020.90 1.88% 9.42

Class C 1,000.00 1,021.80 1.88% 9.42

Hypothetical 5% Return (5% return before expenses)

Class A $1,000.00 $1,019.19 1.13% $5.66

Class B 1,000.00 1,015.47 1.88% 9.39

Class C 1,000.00 1,015.47 1.88% 9.39

The expenses in the table above includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floaters programs. See Notes 1 and 7 in “Notes to Financial Statements.”

(continues) 1

Disclosure of Fund expenses

Delaware Tax-Free Minnesota Intermediate Fund
Expense Analysis of an Investment of $1,000

				Expenses
	Beginning	Ending		Paid During
	Account	Account	Annualized	Period
	Value	Value	Expense	9/1/06 to
	9/1/06	2/28/07	Ratio	2/28/07
Actual Fund Return
Class A	$1,000.00	$1,025.10	0.77%	$3.87
Class B	1,000.00	1,020.70	1.62%	8.12
Class C	1,000.00	1,020.80	1.62%	8.12
Hypothetical 5% Return (5% return before expenses)
Class A	$1,000.00	$1,020.98	0.77%	$3.86
Class B	1,000.00	1,016.76	1.62%	8.10
Class C	1,000.00	1,016.76	1.62%	8.10

Delaware Minnesota High-Yield Municipal Bond Fund
Expense Analysis of an Investment of $1,000

				Expenses
	Beginning	Ending		Paid During
	Account	Account	Annualized	Period
	Value	Value	Expense	9/1/06 to
	9/1/06	2/28/07	Ratio	2/28/07
Actual Fund Return
Class A	$1,000.00	$1,034.10	0.92%	$4.64
Class B	1,000.00	1,030.20	1.67%	8.41
Class C	1,000.00	1,030.20	1.67%	8.41
Hypothetical 5% Return (5% return before expenses)
Class A	$1,000.00	$1,020.23	0.92%	$4.61
Class B	1,000.00	1,016.51	1.67%	8.35
Class C	1,000.00	1,016.51	1.67%	8.35

Sector allocations and credit quality breakdowns

As of February 28, 2007

Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Tax-Free Minnesota Fund
	Percentage
Sector	of Net Assets
Municipal Bonds	106.04%
Corporate-Backed Revenue Bonds	6.12%
Education Revenue Bonds	6.27%
Electric Revenue Bonds	10.65%
Escrowed to Maturity Bonds	0.88%
Health Care Revenue Bonds	31.37%
Housing Revenue Bonds	8.73%
Lease Revenue Bonds	2.51%
Local General Obligation Bonds	15.46%
Pre-Refunded Bonds	12.69%
Special Tax Bonds	2.30%
State General Obligation Bonds	6.18%
Transportation Revenue Bonds	0.38%
Water & Sewer Revenue Bonds	2.50%
Short-Term Investments	0.53%
Variable Rate Demand Notes	0.53%
Total Value of Securities	106.57%
Liabilities Net of Receivables and Other Assets	(6.57%)
Total Net Assets	100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA	35.24%
AA	16.86%
A	20.32%
BBB	14.66%
BB	1.65%
Not Rated	11.27%
Total	100.00%

Delaware Tax-Free Minnesota Insured Fund
	Percentage
Sector	of Net Assets
Municipal Bonds	104.68%
Corporate-Backed Revenue Bonds	0.81%
Education Revenue Bonds	6.14%
Electric Revenue Bonds	8.05%
Escrowed to Maturity Bonds	15.83%
Health Care Revenue Bonds	17.94%
Housing Revenue Bonds	4.21%
Lease Revenue Bonds	5.47%
Local General Obligation Bonds	27.77%
Pre-Refunded Bonds	14.20%
Special Tax Bonds	0.84%
State General Obligation Bonds	2.50%
Transportation Revenue Bonds	0.92%
Total Value of Securities	104.68%
Liabilities Net of Receivables and Other Assets	(4.68%)
Total Net Assets	100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA	78.99%
AA	3.64%
A	12.99%
BBB	4.38%
Total	100.00%

(continues) 3

Sector allocations and credit quality breakdowns

As of February 28, 2007

Sector designations may be different than the sector designations presented in other Fund materials.

Delaware Tax-Free Minnesota Intermediate Fund
	Percentage
Sector	of Net Assets
Municipal Bonds	97.13%
Corporate-Backed Revenue Bonds	3.34%
Education Revenue Bonds	12.13%
Electric Revenue Bonds	1.97%
Escrowed to Maturity Bonds	2.11%
Health Care Revenue Bonds	23.29%
Housing Revenue Bonds	8.62%
Lease Revenue Bonds	3.87%
Local General Obligation Bonds	25.51%
Pre-Refunded Bonds	6.43%
Special Tax Revenue Bonds	1.54%
State General Obligation Bonds	6.86%
Transportation Revenue Bonds	1.46%
Short-Term Investments	2.28%
Money Market Instrument	0.28%
Variable Rate Demand Notes	2.00%
Total Value of Securities	99.41%
Receivables and Other Assets Net of Liabilities	0.59%
Total Net Assets	100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA	35.84%
AA	15.74%
A	18.76%
BBB	19.09%
Not Rated	10.57%
Total	100.00%

Delaware Minnesota High-Yield Municipal Bond Fund
	Percentage
Sector	of Net Assets
Municipal Bonds	97.38%
Corporate-Backed Revenue Bonds	3.80%
Education Revenue Bonds	7.71%
Electric Revenue Bonds	7.81%
Health Care Revenue Bonds	35.66%
Housing Revenue Bonds	15.59%
Lease Revenue Bonds	2.88%
Local General Obligation Bonds	11.66%
Pre-Refunded Bonds	5.96%
Special Tax Bonds	2.12%
State General Obligation Bonds	2.70%
Transportation Revenue Bonds	1.49%
Short-Term Investments	1.70%
Variable Rate Demand Notes	1.70%
Total Value of Securities	99.08%
Receivables and Other Assets Net of Liabilities	0.92%
Total Net Assets	100.00%

Credit Quality Breakdown
(as a % of fixed income investments)
AAA	17.18%
AA	18.11%
A	20.09%
BBB	16.52%
BB	1.32%
Not Rated	26.78%
Total	100.00%

Statements of net assets

Delaware Tax-Free Minnesota Fund

February 28, 2007 (Unaudited)

		Principal
		Amount		Value
Municipal Bonds – 106.04%
Corporate-Backed Revenue Bonds – 6.12%
Cloquet Pollution Control Revenue
(Potlatch Corp. Project)
5.90% 10/1/26	$	6,500,000	$	6,672,185
Laurentian Energy Authority I
Cogeneration Revenue
Series A 5.00% 12/1/21		8,000,000		8,271,760
Sartell Environmental Improvement
Revenue (International Paper)
Series A 5.20% 6/1/27		5,465,000		5,660,101
Seaway Port Authority of Duluth
Industrial Development Dock
& Wharf Revenues
(Cargill, Inc. Project) Series E
6.125% 11/1/14		4,500,000		4,598,010
				25,202,056
Education Revenue Bonds – 6.27%
Minnesota State Colleges &
Universities Revenue Fund
Series A 5.00% 10/1/29 (MBIA)		1,665,000		1,784,364
Minnesota State Higher Education
Facilities Authority Revenue
(Augsburg College)
Series 6-C 5.00% 5/1/20		1,250,000		1,313,700
Series J1 5.00% 5/1/36		2,225,000		2,311,063
(College of St. Benedict)
Series 4-G 6.20% 3/1/16		1,000,000		1,001,710
(St. Catherine College)
Series 5-N1
5.25% 10/1/22		1,500,000		1,579,230
5.375% 10/1/32		1,000,000		1,059,000
University of Minnesota
&¹5.50% 7/1/21		10,500,000		12,249,405
&²5.75% 7/1/18		3,840,000		4,534,253
				25,832,725
Electric Revenue Bonds – 10.65%
Chaska Electric Revenue
(Generating Facilities)
Series A 5.00% 10/1/30		3,000,000		3,148,320
Minnesota State Municipal
Power Agency
5.00% 10/1/35		3,000,000		3,152,700
Series A 5.00% 10/1/34		4,250,000		4,444,990
Series A 5.125% 10/1/29		3,000,000		3,167,700
Northern Minnesota Municipal
Power Agency Electric
System Revenue
^Series A 5.849% 1/1/09 (AMBAC)		3,815,000		3,563,324
Series B 4.75% 1/1/20 (AMBAC)		2,500,000		2,561,600
Rochester Electric Utilities
Revenue 5.25% 12/1/30		4,915,000		5,120,988
Shakopee Public Utilities
Commission Revenue
5.125% 2/1/26 (MBIA)		1,000,000		1,026,120
Southern Minnesota Municipal
Power Agency Supply
System Revenue Series A
^4.439% 1/1/25 (MBIA)		5,000,000		2,373,450
5.25% 1/1/15 (AMBAC)		3,000,000		3,312,780
5.75% 1/1/18 (MBIA)		1,000,000		1,095,580
Southern Minnesota Municipal
Power Agency Supply
System Revenue
&³5.25% 1/1/14 (AMBAC)		4,000,000		4,377,840
&⁴5.25% 1/1/15 (AMBAC)		5,900,000		6,515,134
				43,860,526
Escrowed to Maturity Bonds – 0.88%
Southern Minnesota Municipal
Power Agency Supply System
Revenue Series B
5.50% 1/1/15 (AMBAC)		990,000		1,027,699
University of Minnesota Series A
5.50% 7/1/21		2,000,000		2,333,240
Western Minnesota Municipal
Power Agency Supply Revenue
Series A 9.75% 1/1/16 (MBIA)		185,000		263,242
				3,624,181
Health Care Revenue Bonds – 31.37%
Aitkin Health Care Facilities
Revenue (Riverwood Health
Care Center) 5.60% 2/1/32		1,500,000		1,553,505
Apple Valley Economic
Development Authority
Health Care Revenue
(Augustana Home St. Paul
Project) Series A
6.00% 1/1/40		2,700,000		2,787,750
(Evercare Senior Living
Project) Series A
6.125% 6/1/35		4,000,000		4,073,240
Bemidji Hospital Facilities First
Meeting Revenue (North
Country Health Services)
5.00% 9/1/24 (RADIAN)		740,000		770,133
Bloomington Housing &
Redevelopment Authority
Housing Revenue (Senior
Summerhouse Bloomington
Project, Presbyterian Homes
Housing & Assisted Living)
6.125% 5/1/35		3,420,000		3,476,191
Breckenridge Catholic Health
Initiatives Series A
5.00% 5/1/30		2,500,000		2,626,600

(continues) 5

Statements of net assets

Delaware Tax-Free Minnesota Fund

		Principal
		Amount		Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
Buffalo Health Care Revenue
(Central Minnesota Senior
Housing Project) Series A
5.50% 9/1/33	$	1,270,000	$	1,287,348
Duluth Economic Development
Authority Health Care Facilities
Revenue Benedictine Health
System (St. Mary’s Hospital)
5.25% 2/15/33		10,000,000		10,507,999
5.50% 2/15/23		1,000,000		1,076,840
Maple Grove Health Care
Facilities Revenue (North
Memorial Health Care)
5.00% 9/1/29		1,000,000		1,050,890
5.00% 9/1/35		5,850,000		6,113,777
Minneapolis Health Care Facility
Revenue (Jones-Harrison
Residence Project)
5.60% 10/1/30		1,550,000		1,580,613
Minneapolis Health Care
System Revenue
(Allina Health Systems)
Series A 5.75% 11/15/32		9,500,000		10,303,224
(Fairview Health Services)
Series D
5.00% 11/15/30 (AMBAC)		2,500,000		2,664,250
5.00% 11/15/34 (AMBAC)		2,500,000		2,662,375
Minnesota Agricultural &
Economic Development
Board Revenue
(Benedictine Health Systems)
5.75% 2/1/29		1,895,000		1,937,884
(Fairview Health Care System)
Series A 6.375% 11/15/29		15,000		16,257
Northfield Hospital Revenue
5.375% 11/1/26		3,785,000		4,069,897
Northfield Housing &
Redevelopment Authority
Series A 5.375% 12/1/36		1,000,000		1,004,630
Prior Lake Senior Housing
Revenue (Shepherds Path
Senior Housing) Series B
5.70% 8/1/36		2,000,000		2,075,180
5.75% 8/1/41		1,000,000		1,026,130
Rochester Health Care
Facilities Revenue
(Mayo Clinic) 5.00% 11/15/36		7,000,000		7,415,520
(Mayo Foundation) Series B
5.50% 11/15/27		700,000		720,377
Rochester Health Care Facilities
Revenue (Mayo Foundation)
&⁵Series A 5.50% 11/15/27		4,200,000		4,322,262
&⁶Series B 5.50% 11/15/27		16,750,000		17,237,593
Shakopee Health Care Facilities
Revenue (St. Francis Regional
Medical Center)
5.10% 9/1/25		2,000,000		2,102,920
5.25% 9/1/34		7,000,000		7,379,190
Sherburne County Health Care
Facilities Revenue
(Guardian Angels Health
Services) 5.55% 10/1/36		1,500,000		1,529,955
St. Louis Park Health Care
Facilities Revenue
(Park Nicollet Health Services)
Series B 5.25% 7/1/30		9,420,000		9,992,923
St. Paul Housing &
Redevelopment Authority
Health Care Facilities Revenue
(Health Partners Obligation
Group Project) 5.25% 5/15/36		6,000,000		6,365,100
St. Paul Housing &
Redevelopment Authority
Hospital Revenue
(Health East Project)
6.00% 11/15/35		4,340,000		4,825,820
Series A 5.70% 11/1/15		1,300,000		1,336,400
Washington County Housing &
Redevelopment Authority
Hospital Facilities Revenue
(Health East Project)
5.50% 11/15/27		1,000,000		1,024,090
Woodbury Economic
Development Authority
Housing Revenue (Senior
Summerhouse Woodbury
Project) Series B
5.75% 6/1/41		2,250,000		2,324,925
				129,241,788
Housing Revenue Bonds – 8.73%
Brooklyn Center Multifamily Housing
Revenue (Shingle Creek)
5.40% 5/20/43 (GNMA) (AMT)		1,000,000		1,037,510
Hopkins Multifamily Housing
Revenue (Hopkins Renaissance
Project-Section 8) 6.375% 4/1/20		1,000,000		1,021,990
@Hutchinson Multifamily
Housing Revenue (Evergreen
Apartments Project-Section 8)
5.75% 11/1/28		870,000		849,190
Minneapolis Multifamily
Housing Revenue
(Grant Street Apartments
Project) Series A
7.25% 11/1/29		750,000		780,368
(Seward Towers Project)
5.00% 5/20/36 (GNMA)		4,000,000		4,170,920

		Principal
		Amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Minneapolis Multifamily
Housing Revenue (continued)
(Sumner Field) Series A
5.50% 11/20/26
(GNMA) (AMT)	$	980,000	$	1,030,695
(Trinity Apartments-Section 8)
Series A 6.75% 5/1/21		1,750,000		1,833,160
Minnesota State Housing Finance
Agency Residential Housing
·Series D 4.80% 7/1/38 (AMT)		2,500,000		2,524,800
Series I 5.15% 7/1/38 (AMT)		5,550,000		5,778,382
Series M 4.875% 7/1/37 (AMT)		4,500,000		4,593,734
Minnesota State Housing Finance
Agency Single Family Mortgage
Series A 5.30% 7/1/19		555,000		580,203
Series B 5.35% 1/1/33 (AMT)		2,965,000		3,061,422
Series J 5.90% 7/1/28 (AMT)		465,000		479,559
@Park Rapids Multifamily Revenue
(The Court Apartments
Project-Section 8) 6.30% 2/1/20		2,805,000		2,728,844
St. Cloud Housing &
Redevelopment Authority
Revenue (Sterling Heights
Apartments Project)
7.55% 4/1/39 (AMT)		1,000,000		1,064,400
St. Louis Park Residential
Mortgage Revenue Series A
7.25% 4/20/23 (GNMA)		13,000		13,178
Stillwater Multifamily Housing
Revenue (Stillwater
Cottages Project)
7.25% 11/1/27 (AMT)		1,540,000		1,573,233
Series A 7.00% 11/1/27		1,000,000		1,021,470
Washington County Housing &
Redevelopment Authority
Governmental Revenue
(BriarPond) Series C
7.25% 8/20/34		950,000		928,426
Willmar Housing & Redevelopment
Authority Multifamily
Housing Revenue (Highland
Apartments-Section 8)
5.85% 6/1/19		910,000		910,137
				35,981,621
Lease Revenue Bonds – 2.51%
Puerto Rico Public Buildings
Authority Revenue
(Government Facilities)
Series D 5.25% 7/1/36		1,070,000		1,129,749
St. Paul Port Authority Lease
Revenue (Cedar Street Office
Building Project)
5.00% 12/1/22		2,500,000		2,636,500
5.125% 12/1/27		1,000,000		1,067,020
St. Paul Port Authority Lease
Revenue (continued)
(Robert Street Office
Building Project)
4.75% 12/1/23		2,000,000		2,077,740
5.00% 12/1/27		2,500,000		2,650,425
Series 9 5.25% 12/1/27		725,000		776,352
				10,337,786
Local General Obligation Bonds – 15.46%
Bloomington Independent
School District #271 Series B
5.00% 2/1/17		5,300,000		5,488,467
Cambridge Independent School
District #911 Series A
4.75% 2/1/30 (MBIA)		1,035,000		1,074,061
Dakota County Capital
Improvement Series A
4.75% 2/1/26		1,000,000		1,027,150
Farmington Independent
School District #192 Series B
5.00% 2/1/27 (FSA)		6,705,000		7,172,807
^Farmington Independent
School District #192 Capital
Appreciation Series B
5.422% 2/1/20 (FSA)		1,650,000		878,757
5.34% 2/1/21 (FSA)		1,500,000		756,675
Hennepin County Regional
Railroad Authority
5.00% 12/1/31		4,030,000		4,171,937
^Lakeville Independent School
District #194 Capital
Appreciation Series B
5.45% 2/1/19 (FSA)		8,000,000		4,371,600
Lakeville Independent School
District #194 Series A
4.75% 2/1/22 (FSA)		5,500,000		5,737,654
^Mahtomedi Independent
School District #832 Capital
Appreciation Series B
5.898% 2/1/14 (MBIA)		1,540,000		1,176,175
Metropolitan Council Waste
Water Treatment Series B
5.00% 12/1/21		1,200,000		1,295,484
Minneapolis Library
5.00% 12/1/25		1,500,000		1,580,325
Minneapolis Tax Increment
Revenue (St. Anthony Falls
Project) 5.75% 2/1/27		1,000,000		1,036,590
New Brighton Tax Increment
Series A
5.00% 2/1/27 (MBIA)		1,000,000		1,084,210
5.00% 2/1/28 (MBIA)		1,000,000		1,081,650
Prior Lake Independent School
District #719 Series B
5.00% 2/1/19 (FSA)		3,145,000		3,399,745
Ramsey County State Aid
Series C 5.00% 2/1/28		1,060,000		1,121,406

(continues) 7

Statements of net assets

Delaware Tax-Free Minnesota Fund

		Principal
		Amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
&⁷Rockford Independent
School District #883
5.625% 2/1/23 (FSA)	$	7,020,000	$	7,390,165
^Rosemont Independent School
District #196 Capital
Appreciation Series B
5.931% 4/1/11 (FSA)		2,600,000		2,225,288
5.960% 4/1/12 (FSA)		1,850,000		1,521,995
6.008% 4/1/13 (FSA)		1,915,000		1,512,601
^Sartell Independent School
District #748 Capital
Appreciation Series B
5.976% 2/1/13 (MBIA)		540,000		429,916
6.10% 2/1/15 (MBIA)		1,075,000		790,609
6.15% 2/1/16 (MBIA)		1,750,000		1,236,900
St. Peter’s Hospital Series A
5.00% 9/1/24 (MBIA)		1,905,000		1,973,085
Todd Morrison Cass & Wadena
Counties United Hospital
District (Health Care
Facilities-Lakewood)
5.00% 12/1/21		2,000,000		2,083,360
5.00% 12/1/34		1,000,000		1,030,390
5.125% 12/1/24		1,000,000		1,051,170
				63,700,172
§Pre-Refunded Bonds – 12.69%
Chaska Electric Revenue Series A
6.00% 10/1/25-10		1,000,000		1,079,270
Little Canada Multifamily
Housing Revenue Alternative
Development (Montreal
Courts Apartments Project)
Series A		1,190,000		1,204,637
6.099% 12/1/17-07
6.25% 12/1/27-07		2,900,000		2,952,287
Marshall Medical Center Gross
Revenue (Weiner Memorial
Medical Center Project)
6.00% 11/1/28-09		1,000,000		1,050,320
Minneapolis Health Care
System Revenue (Fairview
Health Services) Series A
5.625% 5/15/32-12		11,525,000		12,665,630
Minneapolis Tax Increment
Revenue Series E
5.00% 3/1/13-09		6,265,000		6,432,839
Minneapolis/St. Paul Metropolitan
Airports Commission Revenue
Series A
5.00% 1/1/22-08 (AMBAC)		3,440,000		3,512,378
5.25% 1/1/32-11 (FGIC)		5,000,000		5,285,000
Series C
5.25% 1/1/32-11 (FGIC)		2,250,000		2,378,250
5.50% 1/1/17-11 (FGIC)		2,500,000		2,664,725
Minnesota Agricultural &
Economic Development
Board Revenue (Fairview
Health Care System) Series A
6.375% 11/15/29-10		485,000		534,276
Minnesota Public Facilities
Authority Water Pollution
Control Revenue
Series A 5.00% 3/1/20-10		3,000,000		3,116,550
Series B 4.75% 3/1/19-09		2,000,000		2,043,200
Puerto Rico Public Buildings
Authority Guaranteed
Government Facilities
Revenue Series D
5.25% 7/1/36-12		2,930,000		3,153,295
Rochester Multifamily
Housing Revenue (Wedum
Shorewood Campus Project)
6.60% 6/1/36-09		3,890,000		4,196,532
				52,269,189
Special Tax Bonds – 2.30%
^Minneapolis Community
Development Agency Tax
Increment Revenue
6.674% 9/1/09 (MBIA)		5,750,000		5,238,365
Puerto Rico Commonwealth
Infrastructure Financing
Authority Revenue Series B
5.00% 7/1/46		4,000,000		4,220,880
				9,459,245
State General Obligation Bonds – 6.18%
Minnesota State
5.00% 11/1/20 (FSA)		8,175,000		8,538,052
5.00% 8/1/21		2,400,000		2,536,296
Minnesota State Refunding
Various Purposes
5.00% 6/1/13		5,175,000		5,261,785
Puerto Rico Commonwealth
Public Improvement Series A
5.00% 7/1/34		4,500,000		4,720,815
5.50% 7/1/19 (MBIA)		1,500,000		1,748,475
Puerto Rico Commonwealth
Series B 5.00% 7/1/35		1,500,000		1,590,075
Puerto Rico Government
Development Bank Senior
Notes Series B 5.00% 12/1/14		1,000,000		1,072,760
				25,468,258
Transportation Revenue Bonds – 0.38%
Minneapolis/St. Paul Metropolitan
Airports Commission Revenue
Series A 5.25% 1/1/16 (MBIA)		1,460,000		1,571,077
				1,571,077

		Principal
		Amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 2.50%
&⁸Minnesota Public Facilities
Authority Water Pollution
Control Revenue
5.25% 3/1/18	$	10,000,000	$	10,312,000
				10,312,000
Total Municipal Bonds
(cost $414,695,226)				436,860,624

Short-Term Investments – 0.53%
·Variable Rate Demand Notes – 0.53%
St. Paul Housing &
Redevelopment Authority
Revenue (Pur-Cretin-Derham
Hall Project) 3.67% 2/1/26		300,000		300,000
University of Minnesota Series C
3.50% 12/1/36		1,900,000		1,900,000
Total Short-Term Investments
(cost $2,200,000)				2,200,000

Total Value of Securities – 106.57%
(cost $416,895,226)				439,060,624
Liabilities Net of Receivables and
Other Assets – (6.57%)*				(27,099,935)
Net Assets Applicable to 32,741,251
Shares Outstanding – 100.00%			$	411,960,689

Net Asset Value – Delaware Tax-Free Minnesota
Fund Class A ($385,360,481 / 30,631,114 Shares)					$12.58

Net Asset Value – Delaware Tax-Free Minnesota
Fund Class B ($10,614,930 / 843,097 Shares)					$12.59

Net Asset Value – Delaware Tax-Free Minnesota
Fund Class C ($15,985,278 / 1,267,040 Shares)					$12.62

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization - no par)			$	390,712,670
Distributions in excess of net investment income				(22,418)
Accumulated net realized loss on investments				(894,961)
Net unrealized appreciation of investments				22,165,398
Total net assets			$	411,960,689

Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FSA — Insured by Financial Security Assurance
GNMA — Insured by Government National Mortgage Association
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance

@	illiquid security. At February 28, 2007, the aggregate amount of illiquid securities equaled $3,578,034, which represented 0.87% of the Fund’s net assets. See Note 9 in “Notes to Financial Statements.”

•	Variable rate security. The rate shown is the rate as of February 28, 2007.

^	Zero coupon security. The interest rate shown is the yield at the time of purchase.

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to Financial Statements.”

&¹	Security held in a trust in connection with the Inverse Floater security $5,250,000, 7.203%, 7/1/21.

&²	Security held in a trust in connection with the Inverse Floater security $1,920,000, 7.710%, 7/1/18.

&³	Security held in a trust in connection with the Inverse Floater security $2,000,000, 7.716%, 1/1/14.

&⁴	Security held in a trust in connection with the Inverse Floater security $2,950,000, 6.716%, 1/1/15.

&⁵	Security held in a trust in connection with the Inverse Floater security $2,100,000, 7.203%, 11/15/27.

&⁶	Security held in a trust in connection with the Inverse Floater security $8,375,000, 7.203%, 11/15/27.

&⁷	Security held in a trust in connection with the Inverse Floater security $3,510,000, 7.456%, 2/1/23.

&⁸	Security held in a trust in connection with the Inverse Floater security $5,000,000, 6.696%, 3/1/18.

*	Includes $31,105,000 in liability for Inverse Floater programs. See Note 7 in “Notes to Financial Statements.”

For additional information on the Inverse Floater programs, see Note 7 in “Notes to Financial Statements.”

Net Asset Value and Offering Price per Share –
Delaware Tax-Free Minnesota Fund
Net asset value Class A (A)		$	12.58
Sales charge (4.50% of offering price) (B)			0.59
Offering price		$	13.17


(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)	See the current prospectus for purchases of $100,000 or more.

See accompanying notes

(continues) 9

Statements of net assets

Delaware Tax-Free Minnesota Insured Fund

February 28, 2007 (Unaudited)

		Principal
		Amount		Value
Municipal Bonds – 104.68%
Corporate-Backed Revenue Bonds – 0.81%
Sartell Environmental Improvement
Revenue (International Paper)
Series A 5.20% 6/1/27	$	1,800,000	$	1,864,260
				1,864,260
Education Revenue Bonds – 6.14%
Minnesota State Colleges &
Universities Revenue Fund
Series A
5.00% 10/1/22 (FSA)		5,135,000		5,408,233
5.00% 10/1/29 (MBIA)		4,000,000		4,286,760
Minnesota State Higher Education
Facilities Authority Revenue
(St. Catherine College)
Series 5-N1 5.00% 10/1/18		2,200,000		2,296,844
St. Cloud Housing &
Redevelopment Authority
Revenue (State University
Foundation Project)
5.00% 5/1/23		2,000,000		2,100,660
				14,092,497
Electric Revenue Bonds – 8.05%
Minnesota State Municipal
Power Agency Series A
5.00% 10/1/34		2,000,000		2,091,760
&¹Northern Municipal Power
Agency Electric System
Revenue 5.25% 1/1/13 (FSA)		9,170,000		9,601,861
Puerto Rico Electric Power
Authority Power Revenue
Series GG 4.75% 9/1/21 (FSA)		1,000,000		1,031,230
Series OO 5.00% 7/1/13 (CIFG)		1,315,000		1,414,243
Shakopee Public Utilities
Commission Revenue
5.125% 2/1/26 (MBIA)		1,850,000		1,898,322
Western Minnesota Municipal
Power Agency Revenue
5.00% 1/1/36 (FSA)		2,250,000		2,419,133
				18,456,549
Escrowed to Maturity Bonds – 15.83%
Dakota/Washington
Counties Housing &
Redevelopment Authority
Anoka Single Family
Residential Mortgage Revenue
8.45% 9/1/19 (GNMA) (AMT)		9,000,000		12,913,740
Bloomington Mortgage
Single Family Residential
Mortgage Revenue
8.15% 9/1/16 (MBIA)
(GNMA) (AMT)		405,000		540,691
8.375% 9/1/21 (GNMA)
(FHA) (VA) (AMT)		14,115,000		20,751,309
Western Minnesota Municipal
Power Agency Supply
Revenue Series A
6.60% 1/1/10		1,275,000		1,337,870
9.75% 1/1/16 (MBIA)		530,000		754,153
				36,297,763
Health Care Revenue Bonds – 17.94%
Duluth Economic Development
Authority Health Care
Facilities Benedictine Health
System (St. Mary’s Hospital)
5.25% 2/15/28		8,500,000		8,994,444
Minneapolis Health Care
System Revenue
(Allina Health Systems)
Series A 5.75% 11/15/32		7,800,000		8,459,490
(Fairview Health Services)
Series D 5.00% 11/15/34
(AMBAC)		8,250,000		8,785,838
Minneapolis/St. Paul Housing
& Redevelopment Authority
Health Care System Revenue
(Allina Health System)
5.00% 11/15/13 (AMBAC)		6,490,000		6,535,300
(Health Partners Obligation
Group Project)
5.625% 12/1/22		650,000		699,017
5.875% 12/1/29		1,000,000		1,089,310
Minnesota Agricultural &
Economic Development
Board Revenue (Fairview
Health Care System) Series A
5.75% 11/15/26 (MBIA)		180,000		185,852
St. Louis Park Health Care
Facilities Revenue (Park
Nicollet Health Services)
Series B 5.50% 7/1/25		2,000,000		2,167,280
St. Paul Housing & Redevelopment
Authority Health Care Facilities
Revenue (Health Partners
Obligation Group Project)
5.25% 5/15/36		2,000,000		2,121,700
Willmar (Rice Memorial
Hospital Project)
5.00% 2/1/22 (FSA)		1,000,000		1,061,740
5.00% 2/1/25 (FSA)		1,000,000		1,058,480
				41,158,451
Housing Revenue Bonds – 4.21%
Dakota County Housing &
Redevelopment Authority
Single Family Mortgage
Revenue Series B
5.85% 10/1/30 (GNMA)
(FNMA) (AMT)		221,000		225,572

	Principal
	Amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Eagan Multifamily Revenue
(Woodridge Apartments)
Series A 5.90% 8/1/20 (GNMA)	$	1,000,000	$	1,021,340
Minneapolis Multifamily
Housing Revenue
(Bottineau Commons Project)
5.45% 4/20/43 (GNMA) (AMT)		1,500,000		1,578,975
(Seward Towers Project)
5.00% 5/20/36 (GNMA)		4,000,000		4,170,920
Minnesota State Housing
Finance Agency Rental
Housing Revenue Series C-2
5.95% 2/1/15 (AMBAC)		1,642,000		1,644,299
White Bear Lake Multifamily
Revenue (Lake Square)
Series A 5.875% 2/1/15 (FHA)		1,005,000		1,026,236
				9,667,342
Lease Revenue Bonds – 5.47%
Hopkins Housing &
Redevelopment Authority
Public Works and Fire Station
Series A 5.00% 2/1/23 (MBIA)		1,210,000		1,281,414
Minneapolis Special School
District #001 Series A
5.00% 2/1/18 (FSA)		1,545,000		1,629,295
5.00% 2/1/19 (FSA)		1,535,000		1,616,631
5.00% 2/1/20 (FSA)		1,690,000		1,779,874
St. Paul Port Authority Lease
Revenue (Cedar Street Office
Building Project)
5.125% 12/1/27		2,000,000		2,134,040
5.25% 12/1/27		3,840,000		4,097,703
				12,538,957
Local General Obligation Bonds – 27.77%
Big Lake Independent School
District #727 Series A
5.00% 2/1/17 (FSA)		1,040,000		1,076,982
5.00% 2/1/20 (FSA)		1,000,000		1,035,560
Centennial Independent School
District #012 Series A
5.00% 2/1/18 (FSA)		1,270,000		1,339,291
Dakota County Community
Development Agency
Governmental Housing
Development 5.00% 1/1/21		1,275,000		1,337,131
Farmington Independent School
District #192 Series B
5.00% 2/1/27 (FSA)		4,000,000		4,279,080
Lakeville Independent School
District #194 Series A
4.75% 2/1/22 (FSA)		2,350,000		2,451,544
Morris Independent School
District #769 5.00% 2/1/24
(MBIA)		4,875,000		5,191,924
Mounds View Independent
School District #621
5.00% 2/1/20 (MBIA)		2,970,000		3,122,480
5.375% 2/1/24 (FGIC)		6,170,000		6,540,693
New Brighton Tax Increment
Series A 5.00% 2/1/26
(MBIA)		1,185,000		1,287,834
Osseo Independent School
District #279 Series A
5.00% 2/1/21 (FSA)		3,570,000		3,759,853
Robbinsdale Independent School
District #281 5.00% 2/1/21
(FSA)		1,310,000		1,379,666
&²Rockford Independent School
District #883 5.60% 2/1/21
(FSA)		3,210,000		3,377,064
^Rosemount Independent School
District #196 Series B
5.80% 4/1/09 (FSA)		1,860,000		1,720,574
5.85% 4/1/10 (FSA)		2,240,000		1,993,914
^Sauk Rapids Independent School
District #047 Series B
5.982% 2/1/15 (FSA)		2,700,000		1,829,871
6.083% 2/1/17 (FSA)		2,245,000		1,346,596
South Washington County
Independent School
District #833
&³5.60% 2/1/20 (MBIA)		6,880,000		7,238,070
&⁴5.60% 2/1/21 (MBIA)		7,290,000		7,669,408
St. Michael Independent School
District #885
5.00% 2/1/20 (FSA)		1,970,000		2,082,014
5.00% 2/1/27 (FSA)		3,435,000		3,630,314
				63,689,863
§Pre-Refunded Bonds – 14.20%
Minneapolis Community
Development Agency
(Supported Development
Revenue) Series G-3
5.45% 12/1/31-11		2,000,000		2,152,660
Minneapolis Health Care System
Revenue (Fairview Health
Services) Series A
5.625% 5/15/32-12		5,400,000		5,934,438
Minneapolis/St. Paul Metropolitan
Airports Commission Revenue
Series A
5.125% 1/1/25-09 (FGIC)		100,000		103,580
Series C
5.125% 1/1/20-11 (FGIC)		2,000,000		2,105,120
5.25% 1/1/32-11 (FGIC)		6,595,000		6,970,915

(continues) 11

Statements of net assets

Delaware Tax-Free Minnesota Insured Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
Minnesota Agricultural &
Economic Development
Board Revenue (Fairview
Health Care System) Series A
5.75% 11/15/26-07 (MBIA)	$	10,070,000	$	10,416,609
Southern Minnesota Municipal
Power Agency Supply
Revenue Series A
5.75% 1/1/18-13		3,790,000		4,152,248
5.75% 1/1/18-13 (AMBAC)		670,000		734,039
				32,569,609
Special Tax Bonds – 0.84%
Virgin Islands Public Finance
Authority Revenue (Matching
Fund Loan) Series A
5.25% 10/1/22		1,785,000		1,920,107
				1,920,107
State General Obligation Bonds – 2.50%
Minnesota State
5.00% 11/1/20 (FSA)		5,500,000		5,744,255
				5,744,255
Transportation Revenue Bonds – 0.92%
Minneapolis/St. Paul
Metropolitan Airports
Commission Revenue Series A
5.00% 1/1/22 (MBIA)		2,000,000		2,111,160
				2,111,160
Total Municipal Bonds
(cost $223,568,351)				240,110,813

Total Value of Securities – 104.68%
(cost $223,568,351)				240,110,813
Liabilities Net of Receivables and
Other Assets – (4.68%)*				(10,742,390		)
Net Assets Applicable to 20,955,147
Shares Outstanding – 100.00%			$	229,368,423

Net Asset Value – Delaware Tax-Free Minnesota Insured
Fund Class A ($208,106,704 / 19,013,548 Shares)					$10.95

Net Asset Value – Delaware Tax-Free Minnesota Insured
Fund Class B ($9,185,628 / 840,057 Shares)					$10.93

Net Asset Value – Delaware Tax-Free Minnesota Insured
Fund Class C ($12,076,091 / 1,101,542 Shares)					$10.96

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)			$	212,843,046
Accumulated net realized loss on investments				(17,085		)
Net unrealized appreciation of investments				16,542,462
Total net assets			$	229,368,423

Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
CIFG — CDC IXIS Financial Guaranty
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
FNMA — Insured by Federal National Mortgage Association
FSA — Insured by Financial Security Assurance
GNMA — Insured by Government National Mortgage Association
MBIA — Insured by the Municipal Bond Insurance Association
VA — Insured by the Veterans Administration

^	Zero coupon security. The interest rate shown is the yield at the time of purchase.

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to Financial Statements.”

&¹	Security held in a trust in connection with the Inverse Floater security $4,585,000, 6.696%, 1/1/13.

&²	Security held in a trust in connection with the Inverse Floater security $1,605,000, 7.406%, 2/1/21.

&³	Security held in a trust in connection with the Inverse Floater security $3,440,000, 7.406%, 2/1/20.

&⁴	Security held in a trust in connection with the Inverse Floater security $3,645,000, 7.406%, 2/1/21.

*	Includes $13,275,000 in liability for Inverse Floater programs. See Note 7 in “Notes to Financial Statements.”

	For additional information on the Inverse Floater programs, see Note 7 in “Notes to Financial Statements.”

Net Asset Value and Offering Price Per Share – Delaware Tax-Free Minnesota Insured Fund
Net asset value Class A (A)	$10.95
Sales charge (4.50% of offering price) (B)	0.52
Offering price	$11.47

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

Delaware Tax-Free Minnesota Intermediate Fund

February 28, 2007 (Unaudited)

	Principal
	Amount		Value
Municipal Bonds – 97.13%
Corporate-Backed Revenue Bonds – 3.34%
Laurentian Energy Authority I
Cogeneration Revenue
Series A 5.00% 12/1/21	$	750,000	$	775,478
Minneapolis Community
Development Agency
Supported Revenue
Common Bond Fund Series 4
6.20% 6/1/17		1,055,000		1,059,937
				1,835,415
Education Revenue Bonds – 12.13%
Minneapolis Art Center Facilities
Revenue (Walker Art Center
Project) 5.125% 7/1/21		2,250,000		2,356,874
Minnesota State Higher Education
Facilities Authority Revenue
(Augsburg College)
Series 6-J1 5.00% 5/1/28		750,000		783,720
(Macalester College)
Series 6-P 4.25% 3/1/27		750,000		750,908
(University of St. Thomas)
Series 5-Y 5.25% 10/1/19		1,590,000		1,717,566
St. Cloud Housing &
Redevelopment Authority
Revenue (State University
Foundation Project)
5.00% 5/1/23		1,000,000		1,050,330
				6,659,398
Electric Revenue Bonds – 1.97%
Chaska Electric Revenue
(Generating Facilities)
Series A 5.25% 10/1/25		1,000,000		1,082,160
				1,082,160
Escrowed to Maturity Bonds – 2.11%
University of Minnesota Series A
5.75% 7/1/16		1,000,000		1,158,470
				1,158,470
Health Care Revenue Bonds – 23.29%
Apple Valley Economic
Development Authority
Health Care Revenue
(Evercare Senior Living
Projects) Series A
6.00% 12/1/25		500,000		508,355
Bemidji Hospital Facilities First
Meeting Revenue (North
Country Health Services)
5.00% 9/1/24 (RADIAN)		500,000		520,360
Breckenridge Catholic Health
Initiatives Series A
5.00% 5/1/30		500,000		525,320
Glencoe Health Care Facilities
Revenue (Glencoe Regional
Health Services Project)
5.00% 4/1/20		1,250,000		1,301,963
Maple Grove Health Care
Facilities Revenue (North
Memorial Health Care)
5.00% 9/1/29		1,000,000		1,050,890
Minneapolis Health Care System
Revenue (Allina Health
Systems) Series A
5.75% 11/15/32		1,500,000		1,626,824
Minneapolis/St. Paul Housing
& Redevelopment Authority
Health Care System (Health
Partners Obligation Group
Project) 6.00% 12/1/17		1,125,000		1,240,695
Moorhead Economic Development
Authority Multifamily Revenue
(Eventide Lutheran Home
Project) 4.70% 6/1/18		475,000		475,865
Northfield Hospital Revenue
5.25% 11/1/21		1,000,000		1,066,730
Oakdale Elderly Housing
Revenue (PHM/Oakdale Inc.
Project) 5.75% 3/1/18		1,400,000		1,401,344
Sherburne County Health Care
Facilities Revenue (Guardian
Angel Health Services)
5.30% 10/1/26		250,000		254,473
St. Louis Park Health Care
Facilities Revenue (Park
Nicollet Health Services)
Series B 5.50% 7/1/25		1,500,000		1,625,459
St. Paul Housing &
Redevelopment Authority
Hospital Revenue (Health
East Project) Series B
5.85% 11/1/17		1,160,000		1,193,605
				12,791,883
Housing Revenue Bonds – 8.62%
Minneapolis Multifamily Housing
Revenue (Trinity Apartments-
Section 8) Series A
6.75% 5/1/21		1,820,000		1,906,486
Minnesota State Housing
Finance Agency
Residential Housing
Series I 5.10% 7/1/20 (AMT)		785,000		810,670
Series M 4.85% 7/1/31 (AMT)		1,000,000		1,022,380
Minnesota State Housing
Finance Agency Single Family
Mortgage Series J
5.90% 7/1/28 (AMT)		420,000		433,150
@Park Rapids Multifamily Revenue
(The Court Apartments
Project-Section 8)
6.05% 8/1/12		570,000		559,541
				4,732,227

(continues) 13

Statements of net assets

Delaware Tax-Free Minnesota Intermediate Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds – 3.87%
Edina Housing & Redevelopment
Authority Public Project
Revenue (Appropriate Lease
Obligation) 5.125% 2/1/19	$	1,000,000	$	1,054,610
Hibbing Economic Development
Authority Revenue
(Hibbing Lease Obligation)
6.10% 2/1/08		145,000		145,109
Virginia Housing &
Redevelopment Authority
Health Care Facility (Lease
Revenue) 5.25% 10/1/25		880,000		927,529
				2,127,248
Local General Obligation Bonds – 25.51%
Big Lake Independent School
District #727 Series C
5.00% 2/1/16 (FSA)		1,180,000		1,234,658
5.00% 2/1/17 (FSA)		1,000,000		1,044,090
Centennial Independent School
District #012 Series A
5.00% 2/1/18 (FSA)		1,000,000		1,054,560
5.00% 2/1/20 (FSA)		750,000		789,885
Dakota County Capital
Improvement Series A
4.75% 2/1/17		1,000,000		1,034,680
Dakota County Community
Development Agency
Governmental Housing Refunding
(Senior Housing Facilities)
Series A 5.00% 1/1/22		1,150,000		1,232,697
Hennepin County Series B
4.75% 12/1/14		1,000,000		1,037,790
Hopkins Independent
School District #270
5.125% 2/1/17 (FGIC)		2,000,000		2,124,879
Minneapolis Tax Increment
Revenue (Ivy Tower Project)
5.50% 2/1/22		415,000		422,989
Osseo Independent School
District #279 Series A
5.00% 2/1/21 (FSA)		1,500,000		1,579,770
South Washington County
Independent School
District #833 Series B
5.00% 2/1/16 (FSA)		1,560,000		1,644,036
St. Paul Independent School
District #625 Series B
5.00% 2/1/20 (FSA)		750,000		811,335
				14,011,369
§Pre-Refunded Bonds – 6.43%
Minneapolis Health Care System
Revenue (Fairview Health
Services) Series A
5.625% 5/15/32-12		1,750,000		1,923,198
Minnesota State Higher
Education Facilities Authority
Revenue (College of Art &
Design Project) Series 5-D
6.625% 5/1/20-10		1,000,000		1,067,630
Puerto Rico Commonwealth
Highway & Transportation
Authority Transportation
Refunding Series D
5.25% 7/1/38-12		500,000		539,870
				3,530,698
Special Tax Revenue Bonds – 1.54%
Puerto Rico Commonwealth
Infrastructure Financing
Authority Special Revenue
Series B 5.00% 7/1/46		800,000		844,176
				844,176
State General Obligation Bonds – 6.86%
Minnesota State 5.00% 8/1/21		2,550,000		2,694,815
•Puerto Rico Public Finance
Corporation Commonwealth
Appropriation Series A
(LOC Puerto Rico Government Bank)
5.75% 8/1/27		1,000,000		1,074,950
				3,769,765
Transportation Revenue Bonds – 1.46%
Minneapolis/St. Paul
Metropolitan Airports
Commission Series 14
5.50% 1/1/11 (AMT)		750,000		798,998
				798,998
Total Municipal Bonds
(cost $51,067,826)				53,341,807

	Number of
	Shares
Short-Term Investments – 2.28%
Money Market Instrument – 0.28%
Federated Minnesota Municipal
Cash Trust		155,375		155,375

	Principal
	Amount
•Variable Rate Demand Note – 2.00%
University of Minnesota Series C
3.50% 12/1/36	$	1,100,000		1,100,000
Total Short-Term Investments
(cost $1,255,375)				1,255,375


Total Value of Securities – 99.41%
(cost $52,323,201)	$54,597,182
Receivables and Other Assets
Net of Liabilities – 0.59%	321,502
Net Assets Applicable to 5,031,509
Shares Outstanding – 100.00%	$54,918,684

Net Asset Value – Delaware Tax-Free Minnesota
Intermediate Fund Class A
($47,945,726 / 4,393,794 Shares)		$10.91
Net Asset Value – Delaware Tax-Free Minnesota
Intermediate Fund Class B
($1,869,359 / 170,871 Shares)		$10.94
Net Asset Value – Delaware Tax-Free Minnesota
Intermediate Fund Class C
($5,103,599 / 466,844 Shares)		$10.93

Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)	$54,115,490
Accumulated net realized loss on investments	(1,470,787		)
Net unrealized appreciation of investments	2,273,981
Total net assets	$54,918,684

Summary of Abbreviations:
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FSA — Insured by Financial Security Assurance
LOC — Letter of Credit
RADIAN — Insured by Radian Asset Assurance

@	Illiquid security. At February 28, 2007, the aggregate amount of illiquid securities equaled $559,541, which represented 1.02% of the Fund’s net assets. See Note 9 in “Notes to Financial Statements.”

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to Financial Statements.”

•	Variable rate security. The rate shown is the rate as of February 28, 2007.

Net Asset Value and Offering Price Per Share – Delaware Tax-Free Minnesota Intermediate Fund
Net asset value Class A (A)	$10.91
Sales charge (2.75% of offering price) (B)	0.31
Offering price	$11.22

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

(continues) 15

Statements of net assets

Delaware Minnesota High-Yield Municipal Bond Fund

February 28, 2007 (Unaudited)

	Principal
	Amount		Value
Municipal Bonds – 97.38%
Corporate-Backed Revenue Bonds – 3.80%
Cloquet Pollution Control
Revenue (Potlatch Corp.
Project) 5.90% 10/1/26	$	1,700,000	$	1,745,033
Laurentian Energy Authority I
Cogeneration Revenue
Series A 5.00% 12/1/21		1,750,000		1,809,448
Sartell Environmental Improvement
Revenue (International Paper)
Series A 5.20% 6/1/27		1,750,000		1,812,475
				5,366,956
Education Revenue Bonds – 7.71%
Minnesota State Colleges &
Universities Revenue Funding
Series A 4.50% 10/1/26 (FSA)		1,000,000		1,026,230
Minnesota State Higher Education
Facilities Authority Revenue
(Augsburg College)
Series 6-C 5.00% 5/1/23		700,000		734,342
Series 6-J1 5.00% 5/1/36		1,000,000		1,038,680
(Macalester College)
Series 6-P 4.25% 3/1/32		1,500,000		1,480,650
(St. Catherine College)
Series 5-N1 5.375% 10/1/32		2,000,000		2,118,000
(University St. Thomas)
Series 6-I 5.00% 4/1/23		1,500,000		1,608,015
University of Minnesota Special
Purpose Revenue (Supported
Stadium Debt) 5.00% 8/1/29		2,660,000		2,861,681
				10,867,598
Electric Revenue Bonds – 7.81%
Chaska Electric Revenue
(Generating Facilities)
Series A 5.25% 10/1/25		1,000,000		1,082,160
Minnesota State Municipal Power
Agency Electric Revenue
5.00% 10/1/35		1,000,000		1,050,900
Series A 5.00% 10/1/34		2,750,000		2,876,170
Puerto Rico Electric Power
Authority Revenue Series II
5.25% 7/1/31		1,000,000		1,063,900
Southern Minnesota Municipal
Power Agency Supply System
Revenue Series A
5.25% 1/1/16 (AMBAC)		1,000,000		1,113,140
Western Minnesota Municipal
Power Agency Revenue
5.00% 1/1/36 (FSA)		2,250,000		2,419,133
Series A 5.00% 1/1/30 (MBIA)		1,335,000		1,404,580
				11,009,983
Aitkin Health Care Facilities
Revenue (Riverwood Health
Care Center) 5.50% 2/1/24		700,000		723,394
Apple Valley Economic
Development Authority
Health Care Revenue
(Augustanna Home
St. Paul Project) Series A
5.80% 1/1/30		1,000,000		1,023,650
(Evercare Senior Living
Project) Series A
6.125% 6/1/35		1,000,000		1,018,310
Bemidji Health Care Facilities
First Meeting Revenue (North
Country Health Services)
5.00% 9/1/20		1,150,000		1,222,899
5.00% 9/1/31 (RADIAN)		2,500,000		2,603,050
Breckenridge Catholic
Health Initiatives Series A
5.00% 5/1/30		2,000,000		2,101,280
Buffalo Health Care Revenue
(Central Minnesota Senior
Housing Project) Series A
5.375% 9/1/26		1,000,000		1,016,370
Detroit Lakes Housing & Health
Facilities Revenue Refunding
(Mankato Lutheran Homes)
Series D 5.50% 8/1/21		500,000		510,535
Duluth Economic Development
Authority Health Care
Facilities Revenue
(Benedictine Health System -
St. Mary’s Hospital)
5.25% 2/15/33		2,250,000		2,364,300
Glencoe Health Care Facilities
Revenue (Glencoe Regional
Health Services Project)
5.00% 4/1/31		1,965,000		2,030,945
Mahtomedi Senior Housing
Revenue (St. Andrews Village
Project) 5.75% 12/1/40		1,000,000		1,024,710
Maple Grove Health Care
Facilities Revenue (North
Memorial Health Care)
5.00% 9/1/35		3,590,000		3,751,872
Minneapolis Health Care
Facilities Revenue
(Augustana Chapel
View Homes) Series D
5.75% 6/1/29		1,000,000		1,034,830
(Jones-Harrison Residence
Project) 5.60% 10/1/30		1,500,000		1,529,625

	Principal
	Amount		Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
Minneapolis Health Care
System Revenue
(Allina Health Systems)
Series A 5.75% 11/15/32	$	2,000,000	$	2,169,100
(Fairview Health Services)
Series D 5.00% 11/15/34
(AMBAC)		1,000,000		1,064,950
Minneapolis/St. Paul Housing
& Redevelopment Authority
Health Care System (Health
Partners Obligation Group
Project) 6.00% 12/1/17		1,125,000		1,240,695
Minnesota Agricultural &
Economic Development
Board Revenue
(Benedictine Health Systems)
5.75% 2/1/29		1,000,000		1,022,630
Moorhead Economic Development
Authority Multifamily Revenue
(Eventide Project) Series A
5.15% 6/1/29		550,000		554,263
Northfield Hospital Revenue
5.375% 11/1/31		1,000,000		1,069,980
Northfield Housing &
Redevelopment Authority
(Northfield Retirement
Center) Series B
5.125% 12/1/26		750,000		748,095
Oakdale Elderly Housing
Revenue (PHM/Oakdale, Inc.
Project) 6.00% 3/1/28		1,800,000		1,802,088
Owatonna Senior Housing
Revenue (Senior Living
Project) Series A
5.80% 10/1/29		400,000		410,632
6.00% 4/1/41		1,250,000		1,295,800
Prior Lake Senior Housing
Revenue (Shepherds Path
Senior Housing) Series B
5.75% 8/1/41		1,000,000		1,026,130
Rochester Health Care Facilities
Revenue (Mayo Clinic)
5.00% 11/15/36		3,160,000		3,347,577
Shakopee Health Care Facilities
Revenue (St. Francis
Regional Medical Center)
5.25% 9/1/34		1,000,000		1,054,170
Shoreview Elderly Housing
Revenue (PHM/Shoreview
Inc. Project) 6.15% 12/1/33		1,250,000		1,275,975
St. Louis Park Health Care
Facilities Revenue (Park
Nicollet Health Services)
Series B 5.25% 7/1/30		1,000,000		1,060,820
St. Paul Housing &
Redevelopment Authority
Hospital Revenue (Health
East Project)
6.00% 11/15/25		1,000,000		1,121,230
Series A 5.70% 11/1/15		800,000		822,400
Series B 5.85% 11/1/17		250,000		257,243
St. Paul Housing &
Redevelopment Authority
Healthcare Facilities Revenue
(Health Partners Obligation
Group Project)
5.25% 5/15/36		1,000,000		1,060,850
Stillwater Health Care
Revenue (Health System
Obligation Group)
5.00% 6/1/25		2,000,000		2,099,880
5.00% 6/1/35		1,000,000		1,044,270
Twin Valley Congregate Housing
Revenue (Living Options, Inc.
Project) 5.95% 11/1/28		1,825,000		1,757,767
Woodbury Economic
Development Authority
Housing Revenue Refunding
5.65% 6/1/33		1,000,000		1,027,380
				50,289,695
Housing Revenue Bonds – 15.59%
Chanhassen Multifamily Housing
Revenue Refunding (Heritage
Park Apartments Project-
Section 8) 6.20% 7/1/30
(FHA) (AMT)		300,000		306,333
Chaska Multifamily Housing
Revenue (West Suburban
Housing Partners Project)
5.875% 3/1/31 (AMT)		1,000,000		949,520
@Hutchinson Multifamily
Housing Revenue (Evergreen
Apartments Project-
Section 8) 5.75% 11/1/28		1,910,000		1,864,313
Minneapolis Multifamily
Housing Revenue
(Grant Street Apartments
Project) Series A
7.25% 11/1/29		2,085,000		2,169,422
(Olson Townhomes Project)
6.00% 12/1/19 (AMT)		1,490,000		1,490,477
(Trinity Apartments-Section 8)
Series A 6.75% 5/1/21		665,000		696,601
Minneapolis/St. Paul Housing
Finance Board (Cityliving
Project) Series A-2
5.00% 12/1/38 (FNMA)
(GNMA) (AMT)		997,761		1,031,465

(continues) 17

Statements of net assets

Delaware Minnesota High-Yield Municipal Bond Fund

	Principal
	Amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
Minnesota State Housing Finance
Agency Rental Housing
Series A 4.875% 8/1/24 (AMT)	$	585,000	$	597,267
Series A-1 5.00% 8/1/40 (AMT)		2,265,000		2,326,811
Minnesota State Housing Finance
Agency Residential Housing
Series G 5.00% 7/1/36 (AMT)		1,000,000		1,027,740
Series M 4.875% 7/1/37 (AMT)		2,500,000		2,552,074
Minnesota State Housing Finance
Agency Single Family Mortgage
Series E 6.25% 1/1/23 (AMT)		10,000		10,113
Series J 5.90% 7/1/28 (AMT)		650,000		670,352
Series M 5.875% 1/1/17		20,000		20,449
St. Cloud Housing &
Redevelopment Authority
Revenue (Sterling Heights
Apartments Project)
7.55% 4/1/39 (AMT)		530,000		564,132
St. Paul Housing &
Redevelopment Authority
Multifamily Housing Revenue
(Shelby Grotto Housing
Project) 5.50% 9/20/44
(GNMA) (FHA) (AMT)		750,000		778,583
Stillwater Multifamily
Revenue Refunding
(Orleans Homes L P Project)
5.50% 2/1/42 (AMT)		750,000		757,680
(Stillwater Cottages Project)
7.00% 11/1/16 (AMT)		680,000		694,606
Series A 6.75% 11/1/11		205,000		209,373
Series A 7.00% 11/1/27		340,000		347,300
Washington County Housing &
Redevelopment Authority
Governmental Revenue
(Briar Pond Project) Series B
7.125% 8/20/34		835,000		808,639
(Woodland Park Apartments
Project) 4.70% 10/1/32		2,075,000		2,109,092
				21,982,342
Lease Revenue Bonds – 2.88%
Andover Economic Development
Authority Public Facilities
Lease Revenue (Andover
Community Center)
5.20% 2/1/34		1,000,000		1,060,750
Hibbing Economic Development
Authority Revenue (Hibbing
Lease Obligation Project)
6.40% 2/1/12		530,000		530,106
St. Paul Port Authority
Lease Revenue
(Regions Hospital Parking
Ramp Project) Series 1
5.00% 8/1/36		1,375,000		1,405,539
(Robert Street Office Building
Project 3-11) 5.00% 12/1/27		1,000,000		1,060,170
				4,056,565
Local General Obligation Bonds – 11.66%
Chaska Independent School
District #112 Series A
4.50% 2/1/28 (MBIA)		2,000,000		2,039,280
Farmington Independent School
District #192 Series B
5.00% 2/1/27 (FSA)		1,000,000		1,069,770
Foley Independent School
District #51(Crossover School
Building) Refunding Series A
5.00% 2/1/21		1,105,000		1,198,008
Hopkins Independent School
District #270 Facilities
5.00% 2/1/26 (MBIA)		1,055,000		1,130,833
Lakeville Independent School
District #194 Series A
4.75% 2/1/22 (FSA)		1,000,000		1,043,210
Metropolitan Council Waste
Water Treatment Series B
4.375% 12/1/27		2,500,000		2,532,550
5.00% 12/1/21		500,000		539,785
Minneapolis Tax
Increment Revenue
(Ivory Tower Project)
5.70% 2/1/29		785,000		807,043
(St. Anthony Falls Project)
Refunding 5.65% 2/1/27		500,000		515,175
Moorhead Improvement Series B
5.00% 2/1/33 (MBIA)		750,000		795,653
Perham Disposal System
6.00% 5/1/22 (AMT)		1,500,000		1,583,490
St. Michael Independent School
District #885 Refunding
Series B 4.25% 2/1/27 (MBIA)		1,000,000		1,004,770
St. Paul Independent School
District #625 Series B
5.00% 2/1/20 (FSA)		750,000		811,335

	Principal
	Amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
Todd Morrison Cass & Wadena
Counties United Hospital
District (Health Care
Facilities-Lakewood)
5.00% 12/1/21	$	610,000	$	635,425
5.125% 12/1/24		205,000		215,490
5.25% 12/1/26		490,000		518,743
				16,440,560
§Pre-Refunded Bonds – 5.96%
Little Canada Multifamily
Housing Revenue Alternative
Development (Montreal
Courts Apartments Project)
Series A 6.25% 12/1/27-07		1,250,000		1,272,538
Minneapolis Community
Development Agency
(Supported Development
Revenue) Series G-3
5.45% 12/1/31-11		1,000,000		1,076,330
Minneapolis Health Care System
Revenue (Fairview Health
Services) Series A
5.625% 5/15/32-12		2,000,000		2,197,939
Minnesota State Higher
Education Facilities Authority
Revenue (College of Art &
Design Project) Series 5-D
6.75% 5/1/26-10		500,000		534,805
Perham Hospital District Senior
Congregate Housing Facilities
Revenue (Briarwood Project)
6.25% 11/1/22-07		620,000		629,263
Puerto Rico Commonwealth
Highway & Transportation
Authority Transportation
Refunding Series D
5.25% 7/1/38-12		1,500,000		1,619,610
Rochester Multifamily
Housing Revenue (Wedum
Shorewood Campus Project)
6.60% 6/1/36-09		990,000		1,068,012
				8,398,497
Special Tax Bonds – 2.12%
Puerto Rico Commonwealth
Infrastructure Financing
Authority Special Revenue
Series B 5.00% 7/1/46		800,000		844,176
St. Paul Port Authority
(Brownfields Redevelopment
Series 2 5.00% 3/1/37		1,000,000		1,070,300
Virgin Islands Public Finance
Authority Revenue (Senior-
Lien-Matching Fund Loan
Note) Series A 5.25% 10/1/24		1,000,000		1,075,690
				2,990,166
State General Obligation Bonds – 2.70%
Minnesota State Refunding &
Various Purposes
5.625% 11/1/17		2,160,000		2,205,792
Puerto Rico Commonwealth
Public Improvement Series A
5.00% 7/1/34		500,000		524,535
Puerto Rico Government
Development Bank Senior
Notes Series B
5.00% 12/1/14		1,000,000		1,072,760
				3,803,087
Transportation Revenue Bonds – 1.49%
Minneapolis/St. Paul
Metropolitan Airports
Commission Revenue
Series A 5.00% 1/1/28
(MBIA)		2,000,000		2,099,440
				2,099,440

Total Municipal Bonds
(cost $132,776,331)				137,304,889

Short-Term Investments – 1.70%
•Variable Rate Demand Notes – 1.70%
St. Paul Port Authority Industrial
Development Revenue
(Camada Limited Partnership-
711) 3.75% 12/1/22 (AMT)		100,000		100,000
University of Minnesota Series C
3.50% 12/1/36		2,300,000		2,300,000

Total Short-Term Investments
(cost $2,400,000)				2,400,000

Total Value of Securities – 99.08%
(cost $135,176,331)				139,704,889
Receivables and Other Assets
Net of Liabilities – 0.92%				1,295,610
Net Assets Applicable to 13,208,263
Shares Outstanding – 100.00%			$	141,000,499

Net Asset Value – Delaware Minnesota High-Yield
Municipal Bond Fund Class A
($106,695,402 / 9,998,959 Shares)						$10.67

Net Asset Value – Delaware Minnesota High-Yield
Municipal Bond Fund Class B
($9,402,725 / 879,865 Shares)						$10.69

Net Asset Value – Delaware Minnesota High-Yield
Municipal Bond Fund Class C
($24,902,372 / 2,329,439 Shares)						$10.69

(continues) 19

Statements of net assets

Delaware Minnesota High-Yield Municipal Bond Fund


Components of Net Assets at February 28, 2007:
Shares of beneficial interest
(unlimited authorization – no par)	$	138,919,482
Accumulated net realized loss on investments		(2,447,541	)
Net unrealized appreciation of investments		4,528,558
Total net assets	$	141,000,499

Summary of Abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FHA — Insured by the Federal Housing Administration
FNMA — Insured by Federal National Mortgage Association
FSA — Insured by Financial Security Assurance
GNMA — Insured by Government National Mortgage Association
MBIA — Insured by the Municipal Bond Insurance Association
RADIAN — Insured by Radian Asset Assurance

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For pre-refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to Financial Statements.”

•	Variable rate security. The rate shown is the rate as of February 28, 2007.

@	Illiquid security. At February 28, 2007, the aggregate amount of illiquid securities equaled $1,864,313, which represented 1.32% of the Fund’s net assets. See Note 9 in “Notes to Financial Statements.”

Net Asset Value and Offering Price Per Share – Delaware Minnesota High-Yield Municipal Bond Fund
Net asset value Class A (A)	$10.67
Sales charge (4.50% of offering price) (B)	0.50
Offering price	$11.17

(A)		Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.

(B)		See the current prospectus for purchases of $100,000 or more.

See accompanying notes

Statements of operations

Six Months Ended February 28, 2007 (Unaudited)

							Delaware			Delaware
	Delaware			Delaware			Tax-Free			Minnesota
	Tax-Free			Tax-Free			Minnesota			High-Yield
	Minnesota			Minnesota			Intermediate			Municipal
	Fund			Insured Fund			Fund			Bond Fund
Investment Income:
Interest	$	10,749,190		$	5,907,102		$	1,313,231		$	3,158,292

Expenses:
Management fees		1,114,793			575,312			135,296			346,286
Interest and related expenses		601,905			259,321			—			6,805
Distribution expenses – Class A		473,753			260,602			58,933			117,961
Distribution expenses – Class B		53,901			47,510			9,618			46,707
Distribution expenses – Class C		77,293			60,972			25,176			108,363
Dividend disbursing and transfer agent fees and expenses		101,824			64,594			18,431			36,896
Accounting and administration expenses		81,076			46,025			10,824			25,184
Trustees’ fees and benefits		64,092			35,561			8,652			18,850
Legal fees		25,677			19,505			8,986			7,644
Audit and tax		16,274			6,842			6,523			7,708
Reports and statements to shareholders		15,588			11,884			5,795			5,924
Custodian fees		13,985			6,962			2,167			3,593
Registration fees		13,303			9,012			8,686			15,448
Insurance fees		5,172			2,724			654			1,957
Consulting fees		4,055			3,579			980			1,156
Pricing fees		2,471			662			805			1,872
Taxes (other than taxes on income)		703			438			—			208
Trustees’ expenses		684			573			79			284
Dues and services		459			141			92			123
		2,667,008			1,412,219			301,697			752,969
Less expenses absorbed or waived		(48,034	)		(28,431	)		(41,057	)		(60,186	)
Less waived distribution expenses – Class A		—			—			(23,573	)		—
Less expense paid indirectly		(2,144	)		(405	)		(255	)		(985	)
Total expenses		2,616,830			1,383,384			236,812			691,798
Net Investment Income		8,132,360			4,523,718			1,076,419			2,466,494

Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on investments		39,222			68,924			(14,575	)		94,542
Net change in unrealized appreciation/depreciation of investments		3,161,716			1,176,360			274,754			1,595,466
Net Realized and Unrealized Gain on Investments		3,200,938			1,245,284			260,179			1,690,008

Net Increase in Net Assets Resulting from Operations	$	11,333,298		$	5,769,002		$	1,336,598		$	4,156,502

See accompanying notes

Statements of changes in net assets

	Delaware Tax-Free						Delaware Tax-Free Minnesota
	Minnesota Fund						Insured Fund
	Six Months						Six Months
	Ended			Year Ended			Ended			Year Ended
	2/28/07			8/31/06			2/28/07			8/31/06
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	8,132,360		$	16,164,300		$	4,523,718		$	9,407,580
Net realized gain (loss) on investments		39,222			420,471			68,924			(191,561	)
Net change in unrealized appreciation/depreciation of investments		3,161,716			(5,618,279	)		1,176,360			(4,320,530	)
Net increase in net assets resulting from operations		11,333,298			10,966,492			5,769,002			4,895,489

Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(7,710,967	)		(15,322,571	)		(4,165,324	)		(8,597,833	)
Class B		(178,697	)		(413,101	)		(154,331	)		(363,586	)
Class C		(255,575	)		(487,162	)		(197,465	)		(397,631	)

Net realized gain on investments:
Class A		(332,881	)		(767,541	)		—			(438,581	)
Class B		(9,630	)		(26,047	)		—			(23,729	)
Class C		(13,628	)		(29,894	)		—			(24,664	)
		(8,501,378	)		(17,046,316	)		(4,517,120	)		(9,846,024	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		20,721,096			46,525,876			3,341,396			11,550,587
Class B		386,721			806,782			125,800			359,427
Class C		2,161,626			4,424,369			267,412			1,930,187

Net asset value of shares issued upon reinvestment of dividends
and distributions:
Class A		5,229,279			10,254,675			2,788,871			6,080,360
Class B		117,007			273,926			117,205			294,382
Class C		217,067			399,762			137,458			296,875
		28,832,796			62,685,390			6,778,142			20,511,818
Cost of shares repurchased:
Class A		(24,953,850	)		(33,894,118	)		(12,013,955	)		(26,983,677	)
Class B		(1,318,813	)		(2,326,335	)		(1,291,610	)		(2,559,927	)
Class C		(1,630,099	)		(3,458,556	)		(951,087	)		(1,699,163	)
		(27,902,762	)		(39,679,009	)		(14,256,652	)		(31,242,767	)
Increase (decrease) in net assets derived from capital share transactions		930,034			23,006,381			(7,478,510	)		(10,730,949	)
Net Increase (Decrease) in Net Assets		3,761,954			16,926,557			(6,226,628	)		(15,681,484	)

Net Assets:
Beginning of period		408,198,735			391,272,178			235,595,051			251,276,535
End of period	$	411,960,689		$	408,198,735		$	229,368,423		$	235,595,051

Distributions in excess of net investment income	$	(22,418	)	$	(22,418	)	$	—		$	—


See accompanying notes

	Delaware Tax-Free Minnesota						Delaware Minnesota High-Yield
	Intermediate Fund						Municipal Bond Fund
	Six Months						Six Months
	Ended			Year Ended			Ended			Year Ended
	2/28/07			8/31/06			2/28/07			8/31/06
	(Unaudited)						(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,076,419		$	2,195,840		$	2,466,494		$	4,085,620
Net realized gain (loss) on investments		(14,575	)		(181,095	)		94,542			(187,727	)
Net change in unrealized appreciation/depreciation of investments		274,754			(652,780	)		1,595,466			(226,433	)
Net increase in net assets resulting from operations		1,336,598			1,361,965			4,156,502			3,671,460

Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(964,007	)		(1,965,980	)		(1,937,397	)		(3,084,904	)
Class B		(31,056	)		(71,129	)		(156,550	)		(353,881	)
Class C		(81,356	)		(158,749	)		(362,844	)		(628,298	)
		(1,076,419	)		(2,195,858	)		(2,456,791	)		(4,067,083	)

Capital Share Transactions:
Proceeds from shares sold:
Class A		2,835,032			4,468,732			21,183,319			33,135,160
Class B		20,568			12,810			603,200			1,943,331
Class C		191,747			1,086,994			5,803,604			7,697,199

Net asset value of shares issued upon reinvestment of dividends
and distributions:
Class A		691,407			1,416,395			1,239,166			1,867,441
Class B		24,240			53,171			106,570			227,202
Class C		61,095			116,926			261,691			437,783
		3,824,089			7,155,028			29,197,550			45,308,116
Cost of shares repurchased:
Class A		(4,105,054	)		(9,830,857	)		(4,506,819	)		(11,064,882	)
Class B		(177,749	)		(841,634	)		(1,007,926	)		(3,010,441	)
Class C		(334,492	)		(1,961,559	)		(1,980,215	)		(3,355,422	)
		(4,617,295	)		(12,634,050	)		(7,494,960	)		(17,430,745	)
Increase (decrease) in net assets derived from capital share transactions		(793,206	)		(5,479,022	)		21,702,590			27,877,371
Net Increase (Decrease) in Net Assets		(533,027	)		(6,312,915	)		23,402,301			27,481,748

Net Assets:
Beginning of period		55,451,711			61,764,626			117,598,198			90,116,450
End of period (there was no undistributed income at either period end)	$	54,918,684		$	55,451,711		$	141,000,499		$	117,598,198

See accompanying notes

Financial highlights

Delaware Tax-Free Minnesota Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 12.490		$ 12.690		$ 12.620		$ 12.450		$ 12.610		$ 12.570

Income (loss) from investment operations:
Net investment income	0.252		0.511		0.527		0.590		0.622		0.634
Net realized and unrealized gain (loss) on investments	0.102		(0.172	)	0.222		0.348		(0.148	)	0.037
Total from investment operations	0.354		0.339		0.749		0.938		0.474		0.671

Less dividends and distributions from:
Net investment income	(0.253	)	(0.513	)	(0.526	)	(0.600	)	(0.625	)	(0.631	)
Net realized gain on investments	(0.011	)	(0.026	)	(0.153	)	(0.168	)	(0.009	)	—
Total dividends and distributions	(0.264	)	(0.539	)	(0.679	)	(0.768	)	(0.634	)	(0.631	)

Net asset value, end of period	$ 12.580		$ 12.490		$ 12.690		$ 12.620		$ 12.450		$ 12.610

Total return²	2.86%		2.78%		6.12%		7.72%		3.80%		5.54%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 385,361		$ 381,720		$ 364,491		$ 348,000		$ 340,029		$ 356,522
Ratio of expenses to average net assets³	1.24%		1.19%		1.12%		1.08%		1.17%		1.18%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.27%		1.20%		1.13%		1.08%		1.17%		1.18%
Ratio of net investment income to average net assets	4.06%		4.11%		4.19%		4.68%		4.90%		5.11%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	4.03%		4.10%		4.18%		4.68%		4.90%		5.11%
Portfolio turnover	9%		13%		10%		25%		27%		13%

¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

Delaware Tax-Free Minnesota Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 12.500 $ 12.700 $ 12.630 $ 12.460 $ 12.620 $ 12.580

Income (loss) from investment operations:

Net investment income 0.205 0.418 0.433 0.496 0.529 0.540

Net realized and unrealized gain (loss) on investments 0.102 (0.172 ) 0.222 0.348 (0.150 ) 0.037

Total from investment operations 0.307 0.246 0.655 0.844 0.379 0.577

Less dividends and distributions from:

Net investment income (0.206 ) (0.420 ) (0.432 ) (0.506 ) (0.530 ) (0.537 )

Net realized gain on investments (0.011 ) (0.026 ) (0.153 ) (0.168 ) (0.009 ) —

Total dividends and distributions (0.217 ) (0.446 ) (0.585 ) (0.674 ) (0.539 ) (0.537 )

Net asset value, end of period $ 12.590 $ 12.500 $ 12.700 $ 12.630 $ 12.460 $ 12.620

Total return² 2.48% 2.01% 5.33% 6.91% 3.02% 4.75%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $ 10,615 $ 11,354 $ 12,810 $ 14,588 $ 16,394 $ 17,043

Ratio of expenses to average net assets³ 1.99% 1.94% 1.87% 1.83% 1.92% 1.93%

Ratio of expenses to average net assets

     prior to expense limitation and expenses paid indirectly³ 2.02% 1.95% 1.88% 1.83% 1.92% 1.93%

Ratio of net investment income to average net assets 3.31% 3.36% 3.44% 3.93% 4.15% 4.36%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.28% 3.35% 3.43% 3.93% 4.15% 4.36%

Portfolio turnover 9% 13% 10% 25% 27% 13%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

(continues) 25

Financial highlights

Delaware Tax-Free Minnesota Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 12.530 $ 12.720 $ 12.650 $ 12.480 $ 12.640 $ 12.590

Income (loss) from investment operations:

Net investment income 0.205 0.418 0.433 0.495 0.529 0.540

Net realized and unrealized gain (loss) on investments 0.102 (0.162 ) 0.222 0.348 (0.151 ) 0.047

Total from investment operations 0.307 0.256 0.655 0.843 0.378 0.587

Less dividends and distributions from:

Net investment income (0.206 ) (0.420 ) (0.432 ) (0.505 ) (0.529 ) (0.537 )

Net realized gain on investments (0.011 ) (0.026 ) (0.153 ) (0.168 ) (0.009 ) —

Total dividends and distributions (0.217 ) (0.446 ) (0.585 ) (0.673 ) (0.538 ) (0.537 )

Net asset value, end of period $ 12.620 $ 12.530 $ 12.720 $ 12.650 $ 12.480 $ 12.640

Total return² 2.47% 2.08% 5.32% 6.90% 3.01% 4.82%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $ 15,985 $ 15,125 $ 13,971 $ 10,811 $ 10,161 $ 7,682

Ratio of expenses to average net assets³ 1.99% 1.94% 1.87% 1.83% 1.92% 1.93%

Ratio of expenses to average net assets

     prior to expense limitation and expenses paid indirectly³ 2.02% 1.95% 1.88% 1.83% 1.92% 1.93%

Ratio of net investment income to average net assets 3.31% 3.36% 3.44% 3.93% 4.15% 4.36%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.28% 3.35% 3.43% 3.93% 4.15% 4.36%

Portfolio turnover 9% 13% 10% 25% 27% 13%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

Delaware Tax-Free Minnesota Insured Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.890		$ 11.110		$ 11.020		$ 10.740		$ 10.940		$ 10.900

Income (loss) from investment operations:
Net investment income	0.216		0.438		0.446		0.479		0.498		0.514
Net realized and unrealized gain (loss) on investments	0.060		(0.200	)	0.138		0.282		(0.197	)	0.038
Total from investment operations	0.276		0.238		0.584		0.761		0.301		0.552

Less dividends and distributions from:
Net investment income	(0.216	)	(0.436	)	(0.445	)	(0.481	)	(0.501	)	(0.512	)
Net realized gain on investments	—		(0.022	)	(0.049	)	—		—		—
Total dividends and distributions	(0.216	)	(0.458	)	(0.494	)	(0.481	)	(0.501	)	(0.512	)

Net asset value, end of period	$ 10.950		$ 10.890		$ 11.110		$ 11.020		$ 10.740		$ 10.940

Total return²	2.56%		2.23%		5.42%		7.20%		2.75%		5.25%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 208,107		$ 212,859		$ 226,671		$ 227,018		$ 231,738		$ 239,763
Ratio of expenses to average net assets³	1.13%		1.08%		1.01%		0.99%		1.08%		1.14%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.16%		1.09%		1.02%		0.99%		1.08%		1.14%
Ratio of net investment income to average net assets	4.01%		4.03%		4.05%		4.37%		4.52%		4.78%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.98%		4.02%		4.04%		4.37%		4.52%		4.78%
Portfolio turnover	5%		5%		10%		15%		30%		15%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

See accompanying notes

(continues) 27

Financial highlights

Delaware Tax-Free Minnesota Insured Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.880		$ 11.100		$ 11.010		$ 10.730		$ 10.940		$ 10.890

Income (loss) from investment operations:
Net investment income	0.176		0.357		0.364		0.397		0.415		0.433
Net realized and unrealized gain (loss) on investments	0.050		(0.200	)	0.137		0.282		(0.207	)	0.048
Total from investment operations	0.226		0.157		0.501		0.679		0.208		0.481

Less dividends and distributions from:
Net investment income	(0.176	)	(0.355	)	(0.362	)	(0.399	)	(0.418	)	(0.431	)
Net realized gain on investments	—		(0.022	)	(0.049	)	—		—		—
Total dividends and distributions	(0.176	)	(0.377	)	(0.411	)	(0.399	)	(0.418	)	(0.431	)

Net asset value, end of period	$ 10.930		$ 10.880		$ 11.100		$ 11.010		$ 10.730		$ 10.940

Total return²	2.09%		1.47%		4.64%		6.41%		1.89%		4.56%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 9,185		$ 10,182		$ 12,337		$ 14,317		$ 15,647		$ 14,341
Ratio of expenses to average net assets³	1.88%		1.83%		1.76%		1.74%		1.83%		1.89%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.91%		1.84%		1.77%		1.74%		1.83%		1.89%
Ratio of net investment income to average net assets	3.26%		3.28%		3.30%		3.62%		3.77%		4.03%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.23%		3.27%		3.29%		3.62%		3.77%		4.03%
Portfolio turnover	5%		5%		10%		15%		30%		15%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

See accompanying notes

Delaware Tax-Free Minnesota Insured Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹      8/31/06      8/31/05      8/31/04      8/31/03      8/31/02

(Unaudited)

Net asset value, beginning of period $ 10.900 $ 11.120 $ 11.030 $ 10.750 $ 10.950 $ 10.910

Income (loss) from investment operations:

Net investment income 0.176 0.356 0.364 0.396 0.414 0.433

Net realized and unrealized gain (loss) on investments 0.060 (0.200 ) 0.137 0.282 (0.197 ) 0.038

Total from investment operations 0.236 0.156 0.501 0.678 0.217 0.471

Less dividends and distributions from:

Net investment income (0.176 ) (0.354 ) (0.362 ) (0.398 ) (0.417 ) (0.431 )

Net realized gain on investments — (0.022 ) (0.049 ) — — —

Total dividends and distributions (0.176 ) (0.376 ) (0.411 ) (0.398 ) (0.417 ) (0.431 )

Net asset value, end of period $ 10.960 $ 10.900 $ 11.120 $ 11.030 $ 10.750 $ 10.950

Total return² 2.18% 1.46% 4.63% 6.39% 1.97% 4.46%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $ 12,076 $ 12,554 $ 12,269 $ 12,028 $ 11,966 $ 6,083

Ratio of expenses to average net assets³ 1.88% 1.83% 1.76% 1.74% 1.83% 1.89%

Ratio of expenses to average net assets

     prior to expense limitation and expenses paid indirectly³ 1.91% 1.84% 1.77% 1.74% 1.83% 1.89%

Ratio of net investment income to average net assets 3.26% 3.28% 3.30% 3.62% 3.77% 4.03%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.23% 3.27% 3.29% 3.62% 3.77% 4.03%

Portfolio turnover 5% 5% 10% 15% 30% 15%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

(continues) 29

Financial highlights

Delaware Tax-Free Minnesota Intermediate Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.860		$ 11.010		$ 10.890		$ 10.630		$ 10.720		$ 10.580

Income (loss) from investment operations:
Net investment income	0.221		0.429		0.407		0.444		0.469		0.512
Net realized and unrealized gain (loss) on investments	0.050		(0.150	)	0.120		0.260		(0.088	)	0.138
Total from investment operations	0.271		0.279		0.527		0.704		0.381		0.650

Less dividends and distributions from:
Net investment income	(0.221	)	(0.429	)	(0.407	)	(0.444	)	(0.471	)	(0.510	)
Total dividends and distributions	(0.221	)	(0.429	)	(0.407	)	(0.444	)	(0.471	)	(0.510	)

Net asset value, end of period	$ 10.910		$ 10.860		$ 11.010		$ 10.890		$ 10.630		$ 10.720

Total return²	2.51%		2.62%		4.93%		6.73%		3.59%		6.34%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 47,946		$ 48,297		$ 52,958		$ 57,012		$ 57,635		$ 51,034
Ratio of expenses to average net assets³	0.77%		0.75%		0.79%		0.89%		0.96%		0.98%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.02%		0.97%		0.95%		1.00%		1.06%		0.98%
Ratio of net investment income to average net assets	4.08%		3.96%		3.72%		4.10%		4.32%		4.86%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.83%		3.74%		3.56%		3.99%		4.22%		4.86%
Portfolio turnover	14%		11%		25%		30%		23%		35%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager and distributor, as applicable. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly for the years ended August 31, 2004, 2003, and 2002 includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

Delaware Tax-Free Minnesota Intermediate Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.890		$ 11.040		$ 10.920		$ 10.650		$ 10.740		$ 10.600

Income (loss) from investment operations:
Net investment income	0.175		0.337		0.314		0.352		0.377		0.423
Net realized and unrealized gain (loss) on investments	0.050		(0.150	)	0.120		0.270		(0.088	)	0.137
Total from investment operations	0.225		0.187		0.434		0.622		0.289		0.560

Less dividends and distributions from:
Net investment income	(0.175	)	(0.337	)	(0.314	)	(0.352	)	(0.379	)	(0.420	)
Total dividends and distributions	(0.175	)	(0.337	)	(0.314	)	(0.352	)	(0.379	)	(0.420	)

Net asset value, end of period	$ 10.940		$ 10.890		$ 11.040		$ 10.920		$ 10.650		$ 10.740

Total return²	2.07%		1.75%		4.03%		5.91%		2.70%		5.43%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 1,869		$ 1,993		$ 2,811		$ 3,224		$ 4,002		$ 2,852
Ratio of expenses to average net assets³	1.62%		1.60%		1.64%		1.74%		1.81%		1.83%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.77%		1.72%		1.70%		1.75%		1.83%		1.83%
Ratio of net investment income to average net assets	3.23%		3.11%		2.87%		3.25%		3.47%		4.01%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.08%		2.99%		2.81%		3.24%		3.45%		4.01%
Portfolio turnover	14%		11%		25%		30%		23%		35%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

See accompanying notes

(continues) 31

Financial highlights

Delaware Tax-Free Minnesota Intermediate Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

Six Months

Ended Year Ended

2/28/07¹ 8/31/06 8/31/05 8/31/04 8/31/03 8/31/02

(Unaudited)

Net asset value, beginning of period $ 10.880 $ 11.030      $ 10.910      $ 10.640      $ 10.730      $ 10.590

Income (loss) from investment operations:

Net investment income 0.175 0.337 0.314 0.352 0.377 0.423

Net realized and unrealized gain (loss) on investments 0.050 (0.150 ) 0.120 0.270 (0.088 ) 0.137

Total from investment operations 0.225 0.187 0.434 0.622 0.289 0.560

Less dividends and distributions from:

Net investment income (0.175 ) (0.337 ) (0.314 ) (0.352 ) (0.379 ) (0.420 )

Total dividends and distributions (0.175 ) (0.337 ) (0.314 ) (0.352 ) (0.379 ) (0.420 )

Net asset value, end of period $ 10.930 $ 10.880 $ 11.030 $ 10.910 $ 10.640 $ 10.730

Total return² 2.08% 1.75% 4.04% 5.91% 2.71% 5.44%

Ratios and supplemental data:

Net assets, end of period (000 omitted) $ 5,104 $ 5,162 $ 5,996 $ 7,188 $ 6,544 $ 4,887

Ratio of expenses to average net assets³ 1.62% 1.60% 1.64% 1.74% 1.81% 1.83%

Ratio of expenses to average net assets

     prior to expense limitation and expenses paid indirectly³ 1.77% 1.72% 1.70% 1.75% 1.83% 1.83%

Ratio of net investment income to average net assets 3.23% 3.11% 2.87% 3.25% 3.47% 4.01%

Ratio of net investment income to average net assets

     prior to expense limitation and expenses paid indirectly 3.08% 2.99% 2.81% 3.24% 3.45% 4.01%

Portfolio turnover 14% 11% 25% 30% 23% 35%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly for the years ended August 31, 2004, 2003, and 2002 includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

Delaware Minnesota High-Yield Municipal Bond Fund Class A

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.530		$ 10.610		$ 10.240		$ 9.910		$ 9.950		$ 9.900

Income (loss) from investment operations:
Net investment income	0.216		0.445		0.469		0.512		0.550		0.586
Net realized and unrealized gain (loss) on investments	0.139		(0.082	)	0.372		0.328		(0.030	)	0.056
Total from investment operations	0.355		0.363		0.841		0.840		0.520		0.642

Less dividends and distributions from:
Net investment income	(0.215	)	(0.443	)	(0.471	)	(0.510	)	(0.560	)	(0.592	)
Total dividends and distributions	(0.215	)	(0.443	)	(0.471	)	(0.510	)	(0.560	)	(0.592	)

Net asset value, end of period	$ 10.670		$ 10.530		$ 10.610		$ 10.240		$ 9.910		$ 9.950

Total return²	3.41%		3.54%		8.40%		8.65%		5.33%		6.74%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 106,695		$ 87,504		$ 63,802		$ 42,636		$ 36,644		$ 34,867
Ratio of expenses to average net assets³	0.92%		0.89%		0.89%		0.75%		0.75%		0.75%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.01%		1.00%		0.98%		1.00%		1.04%		1.01%
Ratio of net investment income to average net assets	4.10%		4.26%		4.50%		5.03%		5.48%		5.98%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	4.01%		4.15%		4.41%		4.78%		5.19%		5.72%
Portfolio turnover	9%		4%		3%		24%		32%		33%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

³The ratio of expenses to average net assets and ratio of expenses to average net assets prior to expense limitation and expenses paid indirectly for the period ended February 28, 2007, includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 7 in “Notes to Financial Statements”.

See accompanying notes

(continues) 33

Financial highlights

Delaware Minnesota High-Yield Municipal Bond Fund Class B

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended		Year Ended
	2/28/07¹		8/31/06		8/31/05		8/31/04		8/31/03		8/31/02
	(Unaudited)
Net asset value, beginning of period	$ 10.550		$ 10.630		$ 10.250		$ 9.930		$ 9.970		$ 9.910

Income (loss) from investment operations:
Net investment income	0.177		0.367		0.391		0.435		0.475		0.513
Net realized and unrealized gain (loss) on investments	0.139		(0.082	)	0.381		0.318		(0.030	)	0.063
Total from investment operations	0.316		0.285		0.772		0.753		0.445		0.576

Less dividends and distributions from:
Net investment income	(0.176	)	(0.365	)	(0.392	)	(0.433	)	(0.485	)	(0.516	)
Total dividends and distributions	(0.176	)	(0.365	)	(0.392	)	(0.433	)	(0.485	)	(0.516	)

Net asset value, end of period	$ 10.690		$ 10.550		$ 10.630		$ 10.250		$ 9.930		$ 9.970

Total return³	3.02%		2.77%		7.68%		7.71%		4.55%		6.03%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$ 9,403		$ 9,578		$ 10,505		$ 12,463		$ 12,513		$ 13,379
Ratio of expenses to average net assets³	1.67%		1.64%		1.64%		1.50%		1.50%		1.50%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³	1.76%		1.75%		1.73%		1.75%		1.79%		1.76%
Ratio of net investment income to average net assets	3.35%		3.51%		3.75%		4.28%		4.73%		5.23%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly	3.26%		3.40%		3.66%		4.03%		4.44%		4.97%
Portfolio turnover	9%		4%		3%		24%		32%		33%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

Delaware Minnesota High-Yield Municipal Bond Fund Class C

Selected data for each share of the Fund outstanding throughout each period were as follows:

	Six Months
	Ended			Year Ended
	2/28/07¹			8/31/06			8/31/05			8/31/04			8/31/03			8/31/02
	(Unaudited)
Net asset value, beginning of period	$	10.550		$	10.630		$	10.250		$	9.930		$	9.970		$	9.910

Income (loss) from investment operations:
Net investment income		0.177			0.367			0.391			0.435			0.475			0.513
Net realized and unrealized gain (loss) on investments		0.139			(0.082	)		0.381			0.318			(0.030	)		0.063
Total from investment operations		0.316			0.285			0.772			0.753			0.445			0.576

Less dividends and distributions from:
Net investment income		(0.176	)		(0.365	)		(0.392	)		(0.433	)		(0.485	)		(0.516	)
Total dividends and distributions		(0.176	)		(0.365	)		(0.392	)		(0.433	)		(0.485	)		(0.516	)

Net asset value, end of period	$	10.690		$	10.550		$	10.630		$	10.250		$	9.930		$	9.970

Total return²		3.02%			2.76%			7.68%			7.71%			4.54%			6.03%

Ratios and supplemental data:
Net assets, end of period (000 omitted)	$	24,902		$	20,516		$	15,809		$	11,435		$	10,754		$	7,840
Ratio of expenses to average net assets³		1.67%			1.64%			1.64%			1.50%			1.50%			1.50%
Ratio of expenses to average net assets
prior to expense limitation and expenses paid indirectly³		1.76%			1.75%			1.73%			1.75%			1.79%			1.76%
Ratio of net investment income to average net assets		3.35%			3.51%			3.75%			4.28%			4.73%			5.23%
Ratio of net investment income to average net assets
prior to expense limitation and expenses paid indirectly		3.26%			3.40%			3.66%			4.03%			4.44%			4.97%
Portfolio turnover		9%			4%			3%			24%			32%			33%

¹Ratios and portfolio turnover have been annualized and total return has not been annualized.

²Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager. Performance would have been lower had the expense limitation not been in effect.

See accompanying notes

Notes to financial statements

Delaware Minnesota Municipal Bond Funds

February 28, 2007 (Unaudited)

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund. Voyageur Insured Funds is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free Arizona Insured Fund and Delaware Tax-Free Minnesota Insured Fund. Voyageur Tax Free Funds is organized as a Delaware statutory trust and offers the Delaware Tax-Free Minnesota Fund. Voyageur Intermediate Tax Free Funds is organized as a Delaware statutory trust and offers the Delaware Tax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, Voyageur Insured Funds, Voyageur Tax Free Funds and Voyageur Intermediate Tax Free Funds are individually referred to as “Trust” and collectively as the “the Trusts.” These financial statements and the related notes pertain to Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund (each referred to as a “Fund” or collectively as the “Funds”). The above Trusts are open-end investment companies. The Funds are considered non-diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a front-end sales charge of up to 4.50% for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund and Delaware Minnesota High-Yield Municipal Bond Fund and up to 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L. P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares are sold with a contingent deferred sales charge that declines from 4% to zero for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund and Delaware Minnesota High-Yield Municipal Bond Fund and that declines from 2% to zero for Delaware Tax-Free Minnesota Intermediate Fund, depending upon the period of time the shares are held. Class B shares will automatically convert to Class A on a quarterly basis approximately eight years after purchase for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund and Delaware Minnesota High-Yield Municipal Bond Fund and approximately five years after purchase for Delaware Tax-Free Minnesota Intermediate Fund. Class C shares are sold with a contingent deferred sales charge of 1%, if redeemed during the first twelve months.

The investment objective of Delaware Tax-Free Minnesota Fund and Delaware Tax-Free Minnesota Insured Fund is to seek as high a level of current income exempt from federal income tax and from the Minnesota state personal income tax, as is consistent with preservation of capital.

The investment objective of Delaware Tax-Free Minnesota Intermediate Fund is to seek to provide investors with preservation of capital and, secondarily, current income exempt from federal income tax and from the Minnesota state personal income tax, by maintaining a dollar-weighted average effective portfolio maturity of 10 years or less.

The investment objective of Delaware Minnesota High-Yield Municipal Bond Fund is to seek as high a level of current income exempt from federal income tax and from the Minnesota state personal income tax, primarily through investment in medium- and lower-grade municipal obligations.

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles and are consistently followed by the Funds.

Security Valuation — Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Open-end investment companies are valued at their published net asset value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events).

Federal Income Taxes — Each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements.

On July 13, 2006, FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in each Fund’s net asset value calculations as late as each Fund’s last net asset value calculation in the first required financial statement reporting period. As a result, each Fund will incorporate FIN 48 in its semiannual report on February 28, 2008. Although each Fund’s tax positions are currently being evaluated, management does not expect the adoption of FIN 48 to have a material impact on each Fund’s financial statements.

1. Significant Accounting Policies (continued)

Class Accounting — Investment income and common expenses are allocated to the classes of the Funds on the basis of “settled shares” of each class in relation to the net assets of the Funds. Realized and unrealized gain (loss) on investments are allocated to the various classes of the Funds on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Interest and Related Expenses — Interest and related expenses include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees from the Delaware Tax-Free Minnesota Fund’s, Delaware Tax-Free Minnesota Insured Fund’s, and Delaware Minnesota High-Yield Municipal Bond Fund’s participation in inverse floater programs where the Funds have transferred their own bonds to a trust that issues floating rate securities with an aggregate principal amount equal to the principal of the transferred bonds. In consideration of the conveyance of the bond, the Funds receive the inverse floating rate securities and cash from the trust. As a result of certain rights retained by the Funds, the transfer of the bond is not considered a sale, but rather a form of financing for accounting purposes whereby the cash received is recorded as a liability and interest expense is recorded based on the interest rate of the floating rate securities. Remarketing fees, liquidity fees, and trustees’ fees expenses are recorded on the accrual basis.

For the six months ended February 28, 2007, Delaware Tax-Free Minnesota Fund and Delaware Tax-Free Minnesota Insured Fund had an average daily liability from the participation in inverse floater programs of $31,105,000 and $13,275,000, respectively, and recorded interest expense at an average rate of 3.91% and 3.94%, respectively.

For the period September 1, 2006 through October 30, 2006, Delaware Minnesota High-Yield Municipal Bond Fund had an average daily liability from the participation in inverse floater programs of $1,000,000 and recorded interest expense at an average rate of 4.07%.

Other — Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. Each Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually.

The Funds receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. The expense paid under this arrangement is included in custodian fees and on the Statements of Operations with the corresponding expense offset shown as “expense paid indirectly.”

2. Investment Management, Administration Agreements and Other Transactions with Affiliates

			Delaware Tax-Free		Delaware Tax-Free		Delaware Minnesota
	Delaware Tax-Free		Minnesota		Minnesota		High-Yield Municipal
	Minnesota Fund		Insured Fund		Intermediate Fund		Bond Fund
On the first $500 million		0.550%		0.500%		0.500%		0.550%
On the next $500 million		0.500%		0.475%		0.475%		0.500%
On the next $1.5 billion		0.450%		0.450%		0.450%		0.450%
In excess of $2.5 billion		0.425%		0.425%		0.425%		0.425%

Delaware Tax-Free

Delaware Minnesota

Delaware Tax-Free

Minnesota

High-Yield Municipal

Minnesota Fund

Insured Fund

Intermediate Fund

Bond Fund

Operating expense limitation as a

percentage of average daily

net assets (per annum)

0.68%

0.64%

0.60%

0.64%

Expiration date

12/31/07

(continues) 37

Notes to financial statements

Delaware Minnesota Municipal Bond Funds

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides accounting, administration, dividend disbursing and transfer agent services. Each Fund pays DSC a monthly fee computed at the annual rate of 0.04% of such Fund’s average daily net assets for accounting and administration services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and C shares. DDLP has contracted to waive distribution and services fees through December 31, 2007 in order to prevent distribution and service fees of Class A shares from exceeding 0.15% of average daily net assets for Delaware Tax-Free Minnesota Intermediate Fund.

At February 28, 2007, each Fund had liabilities payable to affiliates as follows:

Delaware Tax-Free Delaware Tax-Free Delaware Minnesota

Delaware Tax-Free Minnesota Minnesota High-Yield Municipal

Minnesota Fund Insured Fund Intermediate Fund Bond Fund

Investment management fee payable

to DMC $173,165 $83,963 $15,208 $51,993

Dividend disbursing, transfer agent,

accounting and administration fees

and expenses payable to DSC 63,448 38,238 11,159 23,286

Distribution fee payable to DDLP 197,368 118,321 22,496 94,649

Other expenses payable to 18,874 9,474 3,376 5,219

DMC and affiliates*

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2007, the Funds were charged internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

For the six months ended February 28, 2007, DDLP earned commissions on sales of Class A shares for each Fund as follows:

For the six months ended February 28, 2007, DDLP received gross contingent deferred sales charge commissions on redemption of each Fund’s Class A, Class B and Class C shares, respectively. These commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-dealers on sales of those shares. The amounts received were as follows:

2. Investment Management, Administration Agreements and Other Transactions with Affiliates (continued)

Trustees’ fees and benefits include expenses accrued by the Funds for each Trustee’s retainer, per meeting fees and retirement benefits. Independent Trustees with over five years of uninterrupted service were eligible to participate in a retirement plan that provides for the payment of benefits upon retirement. The amount of the retirement benefit was determined based on factors set forth in the plan, including the number of years of service. On November 16, 2006, the Board of Trustees unanimously voted to terminate the retirement plan. Payments equal to the net present value of the earned benefits were made in 2007 to those independent trustees so entitled. For the six months ended February 28, 2007, the retirement benefit payouts were as follows:

Certain officers of DMC, DSC and DDLP are officers and/or trustees of the Trust. These officers and trustees are paid no compensation by the Funds.

3. Investments

For the six months ended February 28, 2007, the Funds made purchases and sales of investment securities other than short-term investments as follows:

At February 28, 2007, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At February 28, 2007 the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

Delaware Tax-Free Delaware Tax-Free Delaware Minnesota

Delaware Tax-Free Minnesota Minnesota High-Yield Municipal

Minnesota Fund Insured Fund Intermediate Fund Bond Fund

Cost of investments $386,674,594 $210,184,210 $52,323,201 $135,095,477

Aggregate unrealized appreciation $ 21,389,411 $ 16,654,244 $ 2,285,091 $ 4,799,173

Aggregate unrealized depreciation (108,381 ) (2,641 ) (11,110 ) (189,761 )

Net unrealized appreciation $ 21,281,030 $ 16,651,603 $ 2,273,981 $ 4,609,412

4. Dividend and Distribution Information

Delaware Tax-Free Delaware Tax-Free Delaware Minnesota

Delaware Tax-Free Minnesota Minnesota High-Yield Municipal

Minnesota Fund Insured Fund Intermediate Fund Bond Fund

Six Months Ended 2/28/07*

Tax-exempt income $ 8,145,239 $4,517,120 $1,076,419 $2,456,791

Long-term capital gain 356,139 — — —

Total $ 8,501,378 $4,517,120 $1,076,419 $2,456,791

Year Ended 8/31/06

Tax-exempt income $16,312,106 $9,369,886 $2,195,858 $4,067,083

Ordinary income 106,715 — — —

Long-term capital gain 627,495 476,138 — —

Total $17,046,316 $9,846,024 $2,195,858 $4,067,083

*Tax information for the period ended February 28, 2007 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

(continues) 39

Notes to financial statements

Delaware Minnesota Municipal Bond Funds

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2007, the estimated components of net assets on a tax basis were as follows:

Delaware Tax-Free Delaware Tax-Free Delaware Minnesota

Delaware Tax-Free Minnesota Minnesota High-Yield Municipal

Minnesota Fund Insured Fund Intermediate Fund Bond Fund

Shares of beneficial interest $ 390,712,670 $212,843,046 $54,115,490 $138,919,482

Accumulated tax-exempt income (22,418 ) — — —

Capital loss carryforwards as of 2/28/07 — — (1,356,875 ) (2,432,446 )

Realized gains (losses) 9/1/06-2/28/07 12,634 (126,226 ) (109,745 ) (95,949 )

Post-October losses (23,227 ) — (4,167 ) —

Unrealized appreciation of investments 21,281,030 16,651,603 2,273,981 4,609,412

Net assets $411,960,689 $229,368,423 $54,918,684 $141,000,499

The differences between book basis and tax basis components of net assets are primarily attributable to tax treatment of market discount on debt instruments and tax treatment of the inverse floater program.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2007, the Funds recorded an estimate of these differences since the final tax characteristics cannot be determined until fiscal year end.

Delaware Tax-Free Delaware Tax-Free Delaware Minnesota

Delaware Tax-Free Minnesota Minnesota High-Yield Municipal

Minnesota Fund Insured Fund Intermediate Fund Bond Fund

Undistributed (Accumulated)

net investment income (loss) $ 16,237 $ 12,956 $ — $(9,703 )

Accumulated realized gain (loss) (16,237 ) (12,956 ) — 9,703

	Delaware Tax-Free		Delaware Tax-Free
	Minnesota		Minnesota High-Yield
Year of Expiration	Intermediate Fund		Municipal Bond Fund
2008		$ —		$ 179,791
2009		1,024,839		1,267,552
2010		4,037		57,521
2011		246,659		243,334
2012		—		684,248
2014		81,340		—
Total		$1,356,875		$2,432,446

For the six months ended February 28, 2007, the Delaware Tax-Free Minnesota Fund had capital gains of $12,634, which may reduce capital loss carryforwards. Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund had capital losses of $126,226, $109,745 and $95,949 respectively, which may increase the capital loss carryforwards.

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free
	Minnesota Fund				Insured Fund
	Six Months				Six Months
	Ended		Year Ended		Ended		Year Ended
	2/28/07		8/31/06		2/28/07		8/31/06
Shares sold:
Class A	1,653,901		3,740,009		305,747		1,066,208
Class B	30,853		64,648		11,531		32,933
Class C	172,021		354,758		24,490		177,451

Shares issued upon reinvestments of dividends and distributions:
Class A	417,044		824,435		255,507		559,513
Class B	9,325		22,000		10,748		27,111
Class C	17,263		32,061		12,571		27,286
	2,300,407		5,037,911		620,594		1,890,502

Shares repurchased:
Class A	(1,992,111	)	(2,730,163	)	(1,100,358	)	(2,484,487	)
Class B	(105,102	)	(187,143	)	(118,431	)	(235,722	)
Class C	(129,556	)	(277,488	)	(86,864	)	(156,558	)
	(2,226,769	)	(3,194,794	)	(1,305,653	)	(2,876,767	)
Net increase (decrease)	73,638		1,843,117		(685,059	)	(986,265	)

	Delaware Tax-Free Minnesota				Delaware Minnesota High-Yield
	Intermediate Fund				Municipal Fund
	Six Months				Six Months
	Ended		Year Ended		Ended		Year Ended
	2/28/07		8/31/06		2/28/07		8/31/06
Shares sold:
Class A	260,561		413,224		1,998,730		3,175,962
Class B	1,884		1,162		56,884		185,827
Class C	17,547		100,419		546,952		736,336

Shares issued upon reinvestment of dividends and distributions:
Class A	63,508		130,882		116,932		178,840
Class B	2,220		4,900		10,043		21,720
Class C	5,602		10,784		24,652		41,851
	351,322		661,371		2,754,193		4,340,536

Shares repurchased:
Class A	(377,075	)	(907,954	)	(425,701	)	(1,059,998	)
Class B	(16,285	)	(77,656	)	(95,126	)	(288,064	)
Class C	(30,686	)	(180,541	)	(186,802	)	(321,249	)
	(424,046	)	(1,166,151	)	(707,629	)	(1,669,311	)
Net increase (decrease)	(72,724	)	(504,780	)	2,046,564		2,671,225

(continues) 41

Notes to financial statements

Delaware Minnesota Municipal Bond Funds

6. Capital Shares (continued)

For the six months ended February 28, 2007 and year ended August 31, 2006, the following shares and values were converted from Class B to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables on the previous page and the Statements of Changes in Net Assets.

	Six Months Ended			Year Ended
	2/28/07			8/31/06
	Class B	Class A		Class B	Class A
	Shares	Shares	Value	Shares	Shares	Value
Delaware Tax-Free Minnesota Fund	55,356	55,398	$694,909	66,784	66,836	$ 831,110
Delaware Tax-Free Minnesota
Insured Fund	53,333	53,284	582,512	80,959	80,882	878,177
Delaware Tax-Free Minnesota
Intermediate Fund	8,462	8,479	92,427	18,914	18,958	203,874
Delaware Minnesota High-Yield
Municipal Bond Fund	57,202	57,284	606,039	167,328	167,637	1,747,428

7. Inverse Floaters

The Funds may participate in inverse floater programs where a fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (“inverse floaters”) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of its portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that the Funds transferred to the trust, the Funds seek to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. Securities held in trust relating to inverse floater programs are identified on the Statements of Net Assets.

Previously, the Funds treated these transactions as a sale of the bonds and as a purchase of the inverse floating rate securities. Under Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (FAS 140), the transfer of the bonds is not considered a sale, but rather a form of financing for accounting purposes.

8. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments^® Family of Funds (the “Participants”), participates in a $225,000,000 revolving line of credit facility to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. The Participants are charged an annual commitment fee, which is allocated across the Participants on the basis of each participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The Funds had no amounts outstanding as of February 28, 2007 or at any time during the period then ended.

9. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota. The value of these investments may be adversely affected by new legislation within the state, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Statements of Net Assets.

9. Credit and Market Risk (continued)

proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become “defeased” when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract and are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s Investors Service, Inc., Standard & Poor’s Ratings Group, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement. The Tax Free Minnesota Insured Funds will purchase escrow secured bonds without additional insurance only where the escrow is invested in securities of the U.S. government or agencies or instrumentalities of the U.S. government.

Each Fund may invest up to 15% of its total assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board of Trustees has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. At February 28, 2007, there were no Rule 144A securities. Illiquid securities have been identified on the Statements of Net Assets.

10. Contractual Obligations

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed each Fund’s existing contracts and expects the risk of loss to be remote.

11. Fund Reorganization

On August 17, 2006, the Board of Trustees responsible for Delaware Tax-Free Minnesota Insured Fund (the “Reorganizing Fund”) approved a proposal to reorganize the Reorganizing Fund with and into the Delaware Tax-Free Minnesota Fund (the “Acquiring Fund”) subject to shareholder approval. The Board of Trustees responsible for the Delaware Tax-Free Minnesota Fund also approved the reorganization. On September 1, 2006, the Reorganizing Fund was closed to new investors. On March 30, 2007, the shareholders of the Reorganizing Fund approved the reorganization of their Fund. The reorganization took place on April 13, 2007.

12. Subsequent Event

At a meeting on February 16, 2007, the Board of Trustees of Delaware Investments Family of Funds approved the termination of new sales and most subsequent investments of Class B shares of each fund in the complex (each, a “Fund”). Effective at the close of business on May 31, 2007, no new or subsequent investments, including investments through automatic investment plans and by qualified retirement plans (such as 401(k) plans, 403(b) plans, or 457 plans), will be allowed in Class B shares of a Fund, except through a reinvestment of dividends or capital gains or permitted exchanges. Existing shareholders of Class B shares may continue to hold their Class B shares, reinvest dividends into Class B shares, and exchange their Class B shares of one Fund for Class B shares of another Fund, as permitted by existing exchange privileges. Existing Class B shareholders wishing to make subsequent purchases in a Fund’s shares will be permitted to invest in other classes of the Fund, subject to that class’ pricing structure and eligibility requirements, if any.

About the organization

This semiannual report is for the information of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Insured Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund and the Delaware Investments^® Performance Update for the most recently completed calendar quarter. The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the Fund. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

Board of trustees

Patrick P. Coyne
Chairman, President, and
Chief Executive Officer
Delaware Investments Family of Funds
Philadelphia, PA

Thomas L. Bennett
Private Investor
Rosemont, PA

John A. Fry
President
Franklin & Marshall College
Lancaster, PA

Anthony D. Knerr
Founder and Managing Director
Anthony Knerr & Associates
New York, NY

Lucinda S. Landreth
Former Chief Investment Officer
Assurant, Inc.
Philadelphia, PA

Ann R. Leven
Consultant
ARL Associates
New York, NY

Thomas F. Madison
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN

Janet L. Yeomans
Vice President and Treasurer
3M Corporation
St. Paul, MN

J. Richard Zecher
Founder
Investor Analytics
Scottsdale, AZ

Affiliated officers

David F. Connor
Vice President, Deputy General Counsel,
and Secretary
Delaware Investments Family of Funds
Philadelphia, PA

David P. O’Connor
Senior Vice President, General Counsel,
and Chief Legal Officer
Delaware Investments Family of Funds
Philadelphia, PA

John J. O’Connor
Senior Vice President and Treasurer
Delaware Investments Family of Funds
Philadelphia, PA

Richard Salus
Senior Vice President and
Chief Financial Officer
Delaware Investments Family of Funds
Philadelphia, PA

Contact information

Investment manager
Delaware Management Company, a series
of Delaware Management Business Trust
Philadelphia, PA

National distributor
Delaware Distributors, L.P.
Philadelphia, PA

Shareholder servicing, dividend
disbursing, and transfer agent
Delaware Service Company, Inc.
2005 Market Street
Philadelphia, PA 19103-7094

For shareholders
800 523-1918

For securities dealers and financial
institutions representatives only
800 362-7500

Web site
www.delawareinvestments.com

Delaware Investments is the marketing name of Delaware Management Holdings, Inc. and its subsidiaries.

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Please call our Shareholder Service Center at 800 523-1918 Monday through Friday from 8:00 a.m. to 7:00 p.m., Eastern Time, for assistance with any questions.

(1579) Printed in the USA

SA-MNALL [2/07] CGI 4/07 MF-07-03-147 PO11732

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

Included as part of report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

Management has made changes that have materially affected, or are reasonably likely to materially affect, registrant's internal controls over financial reporting. To seek to increase the controls' effectiveness, these changes provide for enhanced review of contracts relating to complex transactions and the applicability of generally accepted accounting principles to such transactions, including enhanced consultation with registrant's independent public accountants in connection with such reviews.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Item 12. Exhibits

(a)     (1) Code of Ethics

     Not applicable.

(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.

(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.

Not applicable.

(b)      Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.

Name of Registrant: Voyageur Insured Funds

PATRICK P. COYNE

By: Patrick P. Coyne

Title: Chief Executive Officer

Date: May 4, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

PATRICK P. COYNE

By: Patrick P. Coyne

Title: Chief Executive Officer

Date: May 4, 2007

RICHARD SALUS

By: Richard Salus

Title: Chief Financial Officer

Date: May 4, 2007

¹ Ratios and portfolio turnover have been annualized and total return has not been annualized.
² Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return reflects waivers and payment of fees by the manager, as applicable. Performance would have been lower had the expense limitation not been in effect.

(1576)	Printed in the USA
SA-WEST [2/07] CGI 4/07	MF-07-03-148 PO11731

(1579)	Printed in the USA
SA-MNALL [2/07] CGI 4/07	MF-07-03-147 PO11732

(a) (1) Code of Ethics

		Not applicable.

	(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as Exhibit 99.CERT.

	(3) Written solicitations to purchase securities pursuant to Rule 23c-1 under the Securities Exchange Act of 1934.

		Not applicable.

(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as Exhibit 99.906CERT.

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 4, 2007