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:	811-04973
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 29, 2012

Item 1. Reports to Stockholders

Semiannual report

Delaware Tax-Free Arizona Fund
Delaware Tax-Free California Fund
Delaware Tax-Free Colorado Fund
Delaware Tax-Free Idaho Fund
Delaware Tax-Free New York Fund

February 29, 2012

Fixed income mutual funds 

Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting www.delawareinvestments.com or calling 800 523-1918. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

You can obtain shareholder reports and prospectuses online instead of in the mail.
Visit www.delawareinvestments.com/edelivery.

Experience Delaware Investments

Delaware Investments is committed to the pursuit of consistently superior asset management and unparalleled client service. We believe in our investment processes, which seek to deliver consistent results, and in convenient services that help add value for our clients.

If you are interested in learning more about creating an investment plan, contact your financial advisor.

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund at www.delawareinvestments.com.

Manage your investments online

• 24-hour access to your account information
• Obtain share prices
• Check your account balance and recent transactions
• Request statements or literature
• Make purchases and redemptions

Delaware Management Holdings, Inc. and its subsidiaries (collectively known by the marketing name of Delaware Investments) are wholly owned subsidiaries of Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services.

Investments in Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46 008 583 542 and its holding companies, including their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Disclosure of Fund expenses	1
Security type/sector allocations	4
Statements of net assets	9
Statements of operations	50
Statements of changes in net assets	52
Financial highlights	62
Notes to financial statements	92
Other Fund information	106
About the organization	108

Unless otherwise noted, views expressed herein are current as of Feb. 29, 2012, and subject to change.

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. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

© 2012 Delaware Management Holdings, Inc.

All third-party trademarks cited are the property of their respective owners.

Disclosure of Fund expenses
For the six-month period from September 1, 2011 to February 29, 2012

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 six-month period from September 1, 2011 to February 29, 2012.

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 a 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. The Funds’ expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.

1

Disclosure of Fund expenses

Delaware Tax-Free Arizona Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/11		2/29/12		Expense Ratio		9/1/11 to 2/29/12*
Actual Fund return
Class A	$	1,000.00	$	1,062.10	0.84	%		$	4.31
Class B		1,000.00		1,058.20	1.59	%			8.14
Class C		1,000.00		1,058.10	1.59	%			8.14
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.69	0.84	%		$	4.22
Class B		1,000.00		1,016.96	1.59	%			7.97
Class C		1,000.00		1,016.96	1.59	%			7.97

Delaware Tax-Free California Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/11		2/29/12		Expense Ratio		9/1/11 to 2/29/12*
Actual Fund return
Class A	$	1,000.00	$	1,084.40	0.82	%		$	4.25
Class B		1,000.00		1,080.20	1.57	%			8.12
Class C		1,000.00		1,080.30	1.57	%			8.12
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.79	0.82	%		$	4.12
Class B		1,000.00		1,017.06	1.57	%			7.87
Class C		1,000.00		1,017.06	1.57	%			7.87

Delaware Tax-Free Colorado Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/11		2/29/12		Expense Ratio		9/1/11 to 2/29/12*
Actual Fund return
Class A	$	1,000.00	$	1,076.40	0.84	%		$	4.34
Class B		1,000.00		1,072.40	1.59	%			8.19
Class C		1,000.00		1,073.20	1.59	%			8.20
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.69	0.84	%		$	4.22
Class B		1,000.00		1,016.96	1.59	%			7.97
Class C		1,000.00		1,016.96	1.59	%			7.97

2

Delaware Tax-Free Idaho Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/11		2/29/12		Expense Ratio		9/1/11 to 2/29/12*
Actual Fund return
Class A	$	1,000.00	$	1,053.00	0.88	%		$	4.49
Class B		1,000.00		1,048.30	1.63	%			8.30
Class C		1,000.00		1,049.10	1.63	%			8.30
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.49	0.88	%		$	4.42
Class B		1,000.00		1,016.76	1.63	%			8.17
Class C		1,000.00		1,016.76	1.63	%			8.17

Delaware Tax-Free New York Fund
Expense analysis of an investment of $1,000

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/11		2/29/12		Expense Ratio		9/1/11 to 2/29/12*
Actual Fund return
Class A	$	1,000.00	$	1,073.90	0.80	%		$	4.13
Class B		1,000.00		1,070.00	1.55	%			7.98
Class C		1,000.00		1,070.00	1.55	%			7.98
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.89	0.80	%		$	4.02
Class B		1,000.00		1,017.16	1.55	%			7.77
Class C		1,000.00		1,017.16	1.55	%			7.77

* “Expenses Paid During Period” are equal to the relevant Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

3

Security type/sector allocations
Delaware Tax-Free Arizona Fund	As of February 29, 2012

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

Security type/sector	Percentage of net assets
Municipal Bonds	100.57	%
Corporate Revenue Bonds	12.57	%
Education Revenue Bonds	13.81	%
Electric Revenue Bonds	4.81	%
Healthcare Revenue Bonds	17.87	%
Lease Revenue Bonds	10.19	%
Local General Obligation Bonds	3.41	%
Pre-Refunded Bonds	2.53	%
Special Tax Revenue Bonds	23.91	%
State & Territory General Obligation Bonds	2.65	%
Transportation Revenue Bonds	6.05	%
Water & Sewer Revenue Bonds	2.77	%
Total Value of Securities	100.57	%
Liabilities Net of Receivables and Other Assets	(0.57	%)
Total Net Assets	100.00	%

4

Delaware Tax-Free California Fund As of February 29, 2012

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

Security type/sector	Percentage of net assets
Municipal Bonds	98.44	%
Corporate Revenue Bonds	8.62	%
Education Revenue Bonds	9.32	%
Electric Revenue Bonds	5.33	%
Healthcare Revenue Bonds	17.96	%
Housing Revenue Bonds	4.49	%
Lease Revenue Bonds	6.17	%
Local General Obligation Bonds	7.60	%
Pre-Refunded Bonds	5.12	%
Resource Recovery Revenue Bond	1.21	%
Special Tax Revenue Bonds	19.07	%
State & Territory General Obligation Bonds	7.48	%
Transportation Revenue Bonds	3.13	%
Water & Sewer Revenue Bonds	2.94	%
Short-Term Investment	0.12	%
Total Value of Securities	98.56	%
Receivables and Other Assets Net of Liabilities	1.44	%
Total Net Assets	100.00	%

5

Security type/sector allocations
Delaware Tax-Free Colorado Fund	As of February 29, 2012

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

Security type/sector	Percentage of net assets
Municipal Bonds	98.95	%
Corporate Revenue Bond	1.30	%
Education Revenue Bonds	8.51	%
Electric Revenue Bonds	6.65	%
Healthcare Revenue Bonds	27.45	%
Housing Revenue Bonds	2.76	%
Lease Revenue Bonds	3.87	%
Local General Obligation Bonds	14.10	%
Pre-Refunded Bonds	6.02	%
Special Tax Revenue Bonds	15.96	%
State & Territory General Obligation Bonds	4.59	%
Transportation Revenue Bonds	7.15	%
Water & Sewer Revenue Bonds	0.59	%
Short-Term Investments	0.67	%
Total Value of Securities	99.62	%
Receivables and Other Assets Net of Liabilities	0.38	%
Total Net Assets	100.00	%

6

Delaware Tax-Free Idaho Fund As of February 29, 2012

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

Security type/sector	Percentage of net assets
Municipal Bonds	99.25	%
Corporate Revenue Bonds	6.29	%
Education Revenue Bonds	10.24	%
Electric Revenue Bonds	4.55	%
Healthcare Revenue Bonds	6.37	%
Housing Revenue Bonds	3.33	%
Lease Revenue Bonds	7.11	%
Local General Obligation Bonds	20.92	%
Pre-Refunded Bonds	3.37	%
Special Tax Revenue Bonds	23.48	%
State & Territory General Obligation Bonds	3.90	%
Transportation Revenue Bonds	8.51	%
Water & Sewer Revenue Bonds	1.18	%
Short-Term Investments	1.51	%
Total Value of Securities	100.76	%
Liabilities Net of Receivables and Other Assets	(0.76	%)
Total Net Assets	100.00	%

7

Security type/sector allocations
Delaware Tax-Free New York Fund	As of February 29, 2012

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

Security type/sector	Percentage of net assets
Municipal Bonds	96.87	%
Corporate Revenue Bonds	7.60	%
Education Revenue Bonds	21.78	%
Electric Revenue Bonds	3.11	%
Healthcare Revenue Bonds	14.65	%
Housing Revenue Bonds	1.18	%
Lease Revenue Bonds	14.31	%
Local General Obligation Bonds	5.54	%
Pre-Refunded Bonds	1.19	%
Special Tax Revenue Bonds	15.14	%
State & Territory General Obligation Bonds	4.05	%
Transportation Revenue Bonds	5.73	%
Water & Sewer Revenue Bonds	2.59	%
Short-Term Investment	0.77	%
Total Value of Securities	97.64	%
Receivables and Other Assets Net of Liabilities	2.36	%
Total Net Assets	100.00	%

8

Statements of net assets
Delaware Tax-Free Arizona Fund	February 29, 2012 (Unaudited)

		Principal amount		Value
Municipal Bonds – 100.57%
Corporate Revenue Bonds – 12.57%
	Maricopa County Pollution Control (Palo Verde Project)
	Series A 5.05% 5/1/29 (AMBAC)	$	2,000,000	$	2,014,540
	•Series B 5.20% 6/1/43		1,500,000		1,653,105
•	Navajo County Pollution Control Revenue
	(Arizona Public Services-Cholla)
	Series D 5.75% 6/1/34		1,500,000		1,714,485
	Pima County Industrial Development Authority Pollution
	Control Revenue (Tucson Electric Power San Juan)
	5.75% 9/1/29		750,000		784,335
	Series A 4.95% 10/1/20		1,450,000		1,555,792
	Series A 5.25% 10/1/40		3,400,000		3,489,658
	Salt Verde Financial Senior Gas Revenue 5.00% 12/1/37		2,250,000		2,253,195
					13,465,110
Education Revenue Bonds – 13.81%
	Arizona Health Facilities Authority
	Healthcare Education Revenue (Kirksville College)
	5.125% 1/1/30		1,500,000		1,623,525
	Arizona State University Certificates of Participation
	(Research Infrastructure Project)
	5.00% 9/1/30 (AMBAC)		2,000,000		2,097,080
	Arizona State University Energy Management Revenue
	(Arizona State University Tempe Campus II Project)
	4.50% 7/1/24		1,000,000		1,091,230
	Arizona State University Series C 5.50% 7/1/25		330,000		401,455
	Glendale Industrial Development Authority Revenue
	(Midwestern University) 5.125% 5/15/40		1,305,000		1,364,495
	Northern Arizona University
	5.00% 6/1/36		475,000		512,748
	5.00% 6/1/41		1,240,000		1,328,610
	Phoenix Industrial Development Authority
	(Greater Hearts Academies Project)
	6.30% 7/1/42		500,000		505,075
	6.40% 7/1/47		500,000		505,475
	Pima County Industrial Development Authority Educational
	Revenue (Tucson Country Day School Project)
	5.00% 6/1/37		1,500,000		1,227,300
	South Campus Group Student Housing Revenue
	(Arizona State University-South Campus Project)
	5.625% 9/1/35 (NATL-RE)		2,000,000		2,026,720

9

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Tucson Industrial Development Authority Lease Revenue
	(University of Arizona-Marshall Foundation)
	Series A 5.00% 7/15/27 (AMBAC)	$	1,000,000	$	1,005,850
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series A 5.125% 6/1/21 (AMBAC)		85,000		85,817
	Series B 5.00% 6/1/31 (AMBAC)		1,000,000		1,019,270
					14,794,650
Electric Revenue Bonds – 4.81%
	Mesa Utilities System Revenue 5.00% 7/1/18
	(NATL-RE) (FGIC)		1,500,000		1,809,240
	Pinal County Electric District #3 Refunding 5.25% 7/1/41		2,000,000		2,161,540
	Salt River Project Agricultural Improvement &
	Power District Electric System Revenue
	Series A 5.00% 12/1/30		1,000,000		1,186,160
					5,156,940
Healthcare Revenue Bonds – 17.87%
	Arizona Health Facilities Authority Revenue
	(Catholic Healthcare West) Series D 5.00% 7/1/28		1,500,000		1,615,755
	Glendale Industrial Development Authority Hospital
	Revenue (John C. Lincoln Health) 5.00% 12/1/42		2,205,000		2,175,828
	Maricopa County Industrial Development Authority Health
	Facilities Revenue (Catholic Healthcare West) Series A
	5.25% 7/1/32		1,250,000		1,313,638
	5.50% 7/1/26		1,000,000		1,054,970
	6.00% 7/1/39		2,500,000		2,809,200
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	(Auxilio Mutuo) Series A 6.00% 7/1/33		2,135,000		2,370,832
	Scottsdale Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.25% 9/1/30		1,250,000		1,269,775
	University of Arizona Medical Center Hospital Revenue
	6.00% 7/1/39		1,500,000		1,664,475
	6.50% 7/1/39		2,500,000		2,840,324
	Yavapai County Industrial Development Authority
	Revenue (Yavapai Regional Medical Center)
	Series A 5.25% 8/1/21 (RADIAN)		2,000,000		2,030,180
					19,144,977

10

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds – 10.19%
	Arizona Game & Fish Department & Community
	Beneficial Interest Certificates (Administration
	Building Project) 5.00% 7/1/32	$	1,000,000	$	1,044,480
	Arizona State Certificates of Participation Department
	Administration Series A 5.25% 10/1/25 (AGM)		1,500,000		1,738,530
	Marana Municipal Property Facilities Revenue
	5.00% 7/1/28 (AMBAC)		575,000		589,461
	Maricopa County Industrial Development Authority
	Correctional Contract Revenue (Phoenix West Prison)
	Series B 5.375% 7/1/22 (ACA)		1,000,000		1,002,490
	Phoenix Industrial Development Authority Lease Revenue
	(Capitol Mall II, LLC Project) 5.00% 9/15/28 (AMBAC)		2,000,000		2,001,540
	Pima County Industrial Development Authority Lease
	Revenue Metro Police Facility (Nevada Project) Series A
	5.25% 7/1/31		1,500,000		1,599,960
	5.375% 7/1/39		1,500,000		1,606,815
	Pinal County Certificates of Participation 5.00% 12/1/29		1,300,000		1,337,453
					10,920,729
Local General Obligation Bonds – 3.41%
	Coconino & Yavapai Counties Joint Unified School
	District #9 (Sedona Oak Creek Project of 2007)
	Series B 5.375% 7/1/28		1,350,000		1,539,216
	DC Ranch Community Facilities 5.00% 7/15/27 (AMBAC)		1,000,000		1,018,470
•	Gila County Unified School District #10
	(Payson School Improvement Project of 2006) Series A
	5.25% 7/1/27 (AMBAC)		1,000,000		1,093,410
					3,651,096
§Pre-Refunded Bonds – 2.53%
	Arizona Water Infrastructure Finance Authority
	(Water Quality) Series A 5.00% 10/1/21-16		1,000,000		1,199,360
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I
	5.25% 7/1/33-14		5,000		5,542
	Salt River Project Agricultural Improvement &
	Power District Electric System Revenue
	Series B 5.00% 1/1/31-13 (NATL-RE) (IBC)		1,460,000		1,505,085
					2,709,987

11

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 23.91%
	Arizona Tourism & Sports Authority Tax Revenue
	(Multipurpose Stadium Facilities) Series A
	5.00% 7/1/28 (NATL-RE)	$	1,345,000	$	1,401,920
	Arizona Transportation Board
	(Maricopa County Regional Area Road)
	5.00% 7/1/25		1,000,000		1,186,170
	Series A 5.00% 7/1/29		1,115,000		1,278,492
	Flagstaff Aspen Place Sawmill Improvement District
	Revenue 5.00% 1/1/32		875,000		875,910
	Gilbert Public Facilities Municipal Property Revenue
	5.00% 7/1/25		1,250,000		1,413,975
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		545,000		591,897
	5.25% 1/1/36		705,000		784,249
	Marana Tangerine Farm Road Improvement District
	Revenue 4.60% 1/1/26		823,000		853,640
	Mesa Street & Highway Revenue 5.00% 7/1/20 (AGM)		1,000,000		1,196,660
	Phoenix Civic Improvement Excise Tax Revenue
	(Solid Waste Improvements)
	Series A 5.00% 7/1/19 (NATL-RE)		1,000,000		1,132,780
	Phoenix Civic Improvement Transition Excise Tax
	Revenue (Light Rail Project)
	5.00% 7/1/20 (AMBAC)		1,570,000		1,719,214
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series C
	5.50% 7/1/25 (AMBAC)		455,000		511,934
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate
	Ω(Convertible Capital Appreciation) Series A 6.75% 8/1/32		960,000		939,917
	Series A 5.00% 8/1/26		1,100,000		1,213,267
	Series A 5.00% 8/1/40		1,250,000		1,355,975
	Series A 5.00% 8/1/46		1,500,000		1,613,580
	^Series A 5.03% 8/1/44 (NATL-RE)		3,885,000		658,508
	^Series A 5.04% 8/1/45 (NATL-RE)		3,980,000		634,730
	Series A 5.375% 8/1/39		850,000		919,964
	Series A 5.50% 8/1/42		1,000,000		1,089,970
	Series A 5.75% 8/1/37		580,000		649,148
	Series A 6.50% 8/1/44		1,250,000		1,472,200
	Series A-1 5.00% 8/1/43		1,060,000		1,128,359

12

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Queen Creek Improvement District #1 5.00% 1/1/32	$	1,000,000	$	1,001,990
					25,624,449
State & Territory General Obligation Bonds – 2.65%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.75% 7/1/41		2,000,000		2,192,780
	Series E 5.375% 7/1/30		600,000		644,130
					2,836,910
Transportation Revenue Bonds – 6.05%
	Arizona State Transportation Board Highway Revenue
	Subordinated Series A 5.00% 7/1/23		1,000,000		1,093,570
	Phoenix Civic Improvement Airport Revenue
	(Junior Lien) Series A 5.25% 7/1/33		1,250,000		1,374,213
	(Senior Lien) Series B
	5.25% 7/1/27 (NATL-RE) (FGIC) (AMT)		1,000,000		1,004,950
	5.25% 7/1/32 (NATL-RE) (FGIC) (AMT)		3,000,000		3,011,640
					6,484,373
Water & Sewer Revenue Bonds – 2.77%
	Arizona Water Infrastructure Finance Authority
	(Water Quality) Series A 5.00% 10/1/25		1,000,000		1,249,780
	Phoenix Civic Improvement Wastewater Corporation
	Systems Revenue (Junior Lien)
	5.00% 7/1/19 (NATL-RE)		1,000,000		1,172,460
	Puerto Rico Commonwealth Aqueduct & Sewer Authority
	(Senior Lien) Series A
	5.25% 7/1/42		220,000		220,315
	6.00% 7/1/47		305,000		328,982
					2,971,537
Total Municipal Bonds (cost $100,638,560)					107,760,758
Total Value of Securities – 100.57%
	(cost $100,638,560)				107,760,758
Liabilities Net of Receivables and
	Other Assets – (0.57%)				(614,181	)
Net Assets Applicable to 9,074,040
	Shares Outstanding – 100.00%			$	107,146,577

13

Statements of net assets
Delaware Tax-Free Arizona Fund

Net Asset Value – Delaware Tax-Free Arizona Fund
Class A ($99,737,520 / 8,448,051 Shares)			$11.81
Net Asset Value – Delaware Tax-Free Arizona Fund
Class B ($625,435 / 52,937 Shares)			$11.81
Net Asset Value – Delaware Tax-Free Arizona Fund
Class C ($6,783,622 / 573,052 Shares)			$11.84
Components of Net Assets at February 29, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	99,701,505
Undistributed net investment income		25,308
Accumulated net realized gain on investments		297,566
Net unrealized appreciation of investments		7,122,198
Total net assets	$	107,146,577

•	Variable rate security. The rate shown is the rate as of February 29, 2012. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds 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.”
^	Zero coupon security. The rate shown is the yield at the time of purchase.
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by Financial Guaranty Insurance Company
IBC — Insured Bond Certificate
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

14

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Arizona Fund
Net asset value Class A (A)	$	11.81
Sales charge (4.50% of offering price) (B)		0.56
Offering price	$	12.37

(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, which are an integral part of the financial statements.

15

Statements of net assets
Delaware Tax-Free California Fund	February 29, 2012 (Unaudited)

		Principal amount		Value
Municipal Bonds – 98.44%
Corporate Revenue Bonds – 8.62%
•	California Pollution Control Financing Authority
	Environmental Improvement Revenue
	(BP West Coast Products, LLC) 2.60% 12/1/46	$	500,000	$	521,735
	Chula Vista Industrial Development Revenue
	(San Diego Gas & Electric) Series D 5.875% 1/1/34		1,000,000		1,154,070
	Golden State Tobacco Securitization Corporate
	Settlement Revenue
	5.00% 6/1/45 (AMBAC)		950,000		953,183
	(Asset-Backed Senior Notes) Series A-1
	5.125% 6/1/47		2,000,000		1,384,640
	5.75% 6/1/47		2,500,000		1,920,325
	M-S-R Energy Authority Gas Revenue
	Series A 6.50% 11/1/39		1,000,000		1,233,620
	Series C 6.50% 11/1/39		500,000		616,810
					7,784,383
Education Revenue Bonds – 9.32%
	California Educational Facilities Authority Revenue
	(Chapman University) 5.00% 4/1/31		500,000		546,335
	(Woodbury University) 5.00% 1/1/36		1,000,000		875,120
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/36		1,000,000		871,370
	California Municipal Finance Authority Revenue
	(Southwestern Law School) 6.50% 11/1/41		1,140,000		1,228,065
	California Statewide Communities Development Authority
	Charter School Revenue
	(Green Dot Public Schools) Series A 7.25% 8/1/41		800,000		850,704
	California Statewide Communities Development
	Authority Revenue
	(California Baptist University Project)
	Series A 5.50% 11/1/38		1,000,000		950,350
	(Irvine Campus) 5.375% 5/15/38		1,000,000		1,044,600
	(Viewpoint School Project) 5.75% 10/1/33 (ACA)		1,000,000		1,015,160
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40		1,000,000		1,039,050
					8,420,754

16

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds – 5.33%
	Anaheim Public Financing Authority Electric System District
	Facilities Series A 5.00% 10/1/25	$	800,000	$	944,008
	Chino Basin Regional Financing Authority Revenue
	Series A 5.00% 11/1/24 (AMBAC)		845,000		958,289
	Imperial Irrigation District Electric System Revenue
	Series A 5.25% 11/1/24		500,000		587,535
	Series B 5.00% 11/1/36		250,000		269,008
	Southern California Public Power Authority Revenue
	(Transmission Project) Series A 5.00% 7/1/22		1,000,000		1,159,019
	Turlock Irrigation District Revenue Series A 5.00% 1/1/30		830,000		901,920
					4,819,779
Healthcare Revenue Bonds – 17.96%
	Abag Finance Authority for Nonprofit Corporations
	Refunding (Episcopal Senior Communities)
	6.125% 7/1/41		850,000		911,090
	(Sharp Health Care)
	6.25% 8/1/39		1,000,000		1,164,499
	Series A 5.00% 8/1/26		300,000		339,132
	Series A 5.00% 8/1/27		300,000		336,771
	Series A 5.00% 8/1/28		250,000		278,648
	California Health Facilities Financing Authority Revenue
	(Catholic Health Care West)
	Series A 6.00% 7/1/39		855,000		980,625
	Series E 5.625% 7/1/25		1,000,000		1,142,690
	Series G 5.25% 7/1/23		1,000,000		1,078,760
	(Scripps Health Care) Series A 5.00% 11/15/40		850,000		925,293
	(St. Joseph Health System) Series A 5.75% 7/1/39		1,000,000		1,108,610
	(Stanford Hospital) Series A-2 5.25%11/15/40		600,000		661,098
	(Sutter Health Care) Series D 5.25% 8/15/31		1,000,000		1,144,670
	(The Episcopal Home) Series A 5.30% 2/1/32 (RADIAN)		475,000		475,318
	California Statewide Communities Development
	Authority Revenue
	(Kaiser Permanente)
	Series A 5.00% 4/1/19		1,000,000		1,197,339
	Series B 5.25% 3/1/45		1,000,000		1,037,780
	(Southern California Senior Living) 7.25% 11/15/41		500,000		556,490
	(Trinity Health) 5.00% 12/1/41		1,000,000		1,080,480
	(Valleycare Health Systems) Series A 5.125% 7/15/31		1,000,000		919,260

17

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	San Buenaventura Community Memorial Health Systems
	7.50% 12/1/41	$	785,000	$	885,135
					16,223,688
Housing Revenue Bonds – 4.49%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45		995,000		1,028,273
•	California Statewide Communities Development
	Multifamily Housing Authority Revenue
	(Silver Ridge Apartments)
	Series H 5.80% 8/1/33 (FNMA) (AMT)		1,000,000		1,011,620
	Palm Springs Mobile Home Park Revenue
	(Sahara Mobile Home Park) Series A 5.75% 5/15/37		1,000,000		1,012,090
	Santa Clara County Multifamily Housing Authority Revenue
	(Rivertown Apartments Project)
	Series A 5.85% 8/1/31 (AMT)		1,000,000		1,003,870
					4,055,853
Lease Revenue Bonds – 6.17%
	California State Public Works Board Lease Revenue
	(General Services) Series A 6.25% 4/1/34		1,000,000		1,153,980
	Elsinore Valley Municipal Water District Certificates of
	Participation Series A 5.00% 7/1/24 (BHAC)		1,000,000		1,140,960
	Franklin-McKinley School District Certificates of
	Participation (Financing Project)
	Series B 5.00% 9/1/27 (AMBAC)		1,060,000		1,068,014
	San Diego Public Facilities Financing Authority Lease
	Revenue (Master Project) Series A 5.25% 3/1/40		1,000,000		1,048,550
	San Mateo Joint Powers Financing Authority Lease
	Revenue (Capital Projects) Series A 5.25% 7/15/26		1,000,000		1,163,950
					5,575,454
Local General Obligation Bonds – 7.60%
^	Anaheim School District Election 2002
	4.58% 8/1/25 (NATL-RE)		1,000,000		539,430
	Bonita Unified School District Election 2008
	Series B 5.25% 8/1/28		800,000		947,848
	Central Unified School District Election 2008
	Series A 5.625% 8/1/33 (ASSURED GTY)		1,000,000		1,138,870
	Fairfield-Suisun Unified School District Election 2002
	5.50% 8/1/28 (NATL-RE)		500,000		545,005

18

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Grossmont Union High School District Election 2004
	5.00% 8/1/23 (NATL-RE)	$	500,000	$	564,375
	Pittsburg Unified School District Financing Authority Revenue
	(Pittsburg Unified School District Building Program)
	5.50% 9/1/46 (AGM)		800,000		881,672
	Santa Barbara Community College District Election 2008
	Series A 5.25% 8/1/33		1,000,000		1,141,240
	Sierra Joint Community College District #2
	(Western Nevada) Series A 5.25% 8/1/21 (BHAC) (FGIC)		1,000,000		1,111,130
					6,869,570
§Pre-Refunded Bonds – 5.12%
	California Department of Water Resources
	(Central Valley Project) Series X
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		5,000		5,183
	Prerefunded 2010 (Water System)
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		255,000		264,338
	California Statewide Communities Development
	Authority Revenue
	(Citrus Gardens Apartments Project)
	Series D1 5.375% 7/1/32-12		1,000,000		1,037,810
	(East Campus Apartments, LLC)
	Series A 5.625% 8/1/34-12 (ACA)		985,000		1,007,872
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Series A
	5.00% 8/1/28-13 (RADIAN)		60,000		64,075
	Golden State Tobacco Securitization
	Corporation Settlement Revenue
	(Asset-Backed Senior Notes) Series B
	5.50% 6/1/43-13 (RADIAN)		1,000,000		1,065,570
	5.625% 6/1/33-13		1,000,000		1,067,139
	Port Oakland Revenue Series L 5.375% 11/1/27-12
	(NATL-RE) (FGIC) (AMT)		110,000		113,724
					4,625,711
Resource Recovery Revenue Bond – 1.21%
	South Bayside Waste Management Authority Revenue
	(Shoreway Environmental Center) Series A 6.00% 9/1/36		1,000,000		1,088,340
					1,088,340

19

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 19.07%
	Bonita Canyon Public Facilities Financing Authority Revenue
	(Community Facilities District #98-1) 5.00% 9/1/28	$	800,000	$	825,200
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Un-Refunded Balance
	Series A 5.00% 8/1/28 (RADIAN)		940,000		941,109
	Fremont Community Facilities District #1
	(Special Tax Pacific Commons) 5.375% 9/1/36		1,000,000		944,770
	Glendale Redevelopment Agency Tax Allocation Revenue
	(Central Glendale Redevelopment Project) 5.50% 12/1/24		1,000,000		1,050,690
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35		500,000		466,695
	Lancaster Redevelopment Agency Tax Allocation Revenue
	(Combined Redevelopment Project Areas) 6.875% 8/1/39		500,000		535,250
@	Modesto Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36		1,000,000		921,660
	Poway Redevelopment Agency Tax Allocation Revenue
	5.75% 6/15/33 (NATL-RE)		270,000		271,504
	Puerto Rico Sales Tax Financing Revenue
	First Subordinate Series A
	5.00% 8/1/40		945,000		1,025,117
	5.25% 8/1/27		1,000,000		1,132,690
	5.50% 8/1/37		835,000		910,709
	Ω(Convertible Capital Appreciation) 6.75% 8/1/32		660,000		646,193
	Rancho Santa Fe Community Services District Financing
	Authority Revenue Superior Lien Series A 5.75% 9/1/30		800,000		863,160
	Riverside County Redevelopment Agency Tax Allocation
	Housing Series A 6.00% 10/1/39		1,000,000		1,060,130
	Roseville Westpark Special Tax Public Community Facilities
	District #1 5.25% 9/1/37		500,000		466,130
	San Bernardino County Special Tax Community Facilities
	District #2002-1 5.90% 9/1/33		2,000,000		2,024,539
	San Diego Redevelopment Agency Tax Allocation Revenue
	(Naval Training Center) Series A 5.75% 9/1/40		1,000,000		1,043,350
	San Mateo Special Tax Revenue
	(Community Facilities District #200) 6.00% 9/1/42		800,000		819,408
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note)
	Series A 5.00% 10/1/29		715,000		754,018

20

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Yucaipa Special Tax Refunding Community Facilities
	District #98-1 (Chapman Heights) 5.375% 9/1/30	$	500,000	$	526,810
					17,229,132
State & Territory General Obligation Bonds – 7.48%
	California State Various Purposes
	5.00% 9/1/41		1,525,000		1,630,286
	5.00% 10/1/41		225,000		240,638
	5.25% 3/1/30		1,000,000		1,122,380
	5.25% 11/1/40		1,000,000		1,091,170
	6.00% 3/1/33		1,000,000		1,199,100
	6.00% 4/1/38		515,000		597,472
	Puerto Rico Commonwealth Public Improvement Series A
	5.75% 7/1/41		800,000		877,112
					6,758,158
Transportation Revenue Bonds – 3.13%
	Bay Area Toll Authority Bridge Revenue
	(San Francisco Bay Area) Series F-1 5.25% 4/1/27		800,000		922,600
	Port Oakland Revenue Un-Refunded Series L
	5.375% 11/1/27 (NATL-RE) (FGIC) (AMT)		890,000		906,607
	San Diego Redevelopment Agency (Centre City
	Redevelopment Project) Series A 6.40% 9/1/25		1,000,000		1,001,070
					2,830,277
Water & Sewer Revenue Bonds – 2.94%
	California State Department of Water Resources
	Systems Revenue (Central Valley Project)
	Series AG 5.00% 12/1/28		815,000		960,633
	Un-Refunded 2010 Series X
	5.00% 12/1/29 (NATL-RE) (FGIC)		740,000		761,667
	San Francisco City & County Public Utilities Commission
	Water Revenue Series B 5.00% 11/1/26		800,000		937,408
					2,659,708
Total Municipal Bonds (cost $82,870,493)					88,940,807

21

Statements of net assets
Delaware Tax-Free California Fund

		Number of shares	Value
Short-Term Investment – 0.12%
Money Market Mutual Fund – 0.12%
	Federated California Municipal Cash Trust	108,950	$	108,950
Total Short-Term Investment (cost $108,950)				108,950
Total Value of Securities – 98.56%
	(cost $82,979,443)			89,049,757
Receivables and Other Assets
	Net of Liabilities – 1.44%			1,304,011
Net Assets Applicable to 7,618,820
	Shares Outstanding – 100.00%		$	90,353,768
Net Asset Value – Delaware Tax-Free California Fund
	Class A ($72,753,238 / 6,136,824 Shares)				$11.86
Net Asset Value – Delaware Tax-Free California Fund
	Class B ($922,286 / 77,474 Shares)				$11.90
Net Asset Value – Delaware Tax-Free California Fund
	Class C ($16,678,244 / 1,404,522 Shares)				$11.87
Components of Net Assets at February 29, 2012:
Shares of beneficial interest (unlimited authorization – no par)			$	84,919,181
Undistributed net investment income				18,780
Accumulated net realized loss on investments				(654,507		)
Net unrealized appreciation of investments				6,070,314
Total net assets			$	90,353,768

•	Variable rate security. The rate shown is the rate as of February 29, 2012. Interest rates reset periodically.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
§	Pre-Refunded bonds. Municipal bonds 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.”
@	Illiquid security. At February 29, 2012, the aggregate value of illiquid securities was $921,660, which represented 1.02% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.

22

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
BHAC — Insured by Berkshire Hathaway Assurance Company
FGIC — Insured by Financial Guaranty Insurance Company
FNMA — Federal National Mortgage Association collateral
NATL-RE — Insured by National Public Finance Guarantee Corporation
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)	$	11.86
Sales charge (4.50% of offering price) (B)		0.56
Offering price	$	12.42

(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, which are an integral part of the financial statements.

23

Statements of net assets

Delaware Tax-Free Colorado Fund February 29, 2012 (Unaudited)

		Principal amount		Value
Municipal Bonds – 98.95%
Corporate Revenue Bond – 1.30%
	Public Authority Energy Natural Gas Revenue
	Series 2008 6.50% 11/15/38	$	2,500,000	$	3,126,700
					3,126,700
Education Revenue Bonds – 8.51%
	Boulder County Development Revenue
	(University Corporation for Atmospheric Research)
	5.00% 9/1/33 (NATL-RE)		1,000,000		1,006,130
	5.00% 9/1/35 (AMBAC)		1,000,000		1,018,500
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Charter School Project) 5.50% 5/1/36 (SGI)		2,280,000		2,312,148
	(Johnson & Wales University Project)
	Series A 5.00% 4/1/28 (SGI)		1,000,000		1,003,690
	(Liberty Common Charter School Project)
	5.125% 12/1/33 (SGI)		2,740,000		2,757,591
	(Montessori Districts Charter School Projects)
	6.125% 7/15/32		5,590,000		5,597,267
	(Pinnacle Charter School Project) 5.00% 6/1/33 (SGI)		2,170,000		2,176,770
	(Woodrow Wilson Charter School Project)
	5.25% 12/1/34 (SGI)		1,960,000		1,988,832
	Colorado School Mines Auxiliary Facilities
	5.00% 12/1/37 (AMBAC)		425,000		428,281
	University of Colorado Enterprise System Revenue
	Series A 5.00% 6/1/30 (AMBAC)		2,000,000		2,229,600
					20,518,809
Electric Revenue Bonds – 6.65%
	Colorado Springs Utilities System Improvement Revenue
	Series C 5.50% 11/15/48		3,250,000		3,639,513
	Platte River Power Authority Revenue Series HH
	5.00% 6/1/27		2,795,000		3,244,045
	5.00% 6/1/29		2,355,000		2,705,448
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28		2,400,000		2,557,296
	Series ZZ 5.25% 7/1/26		3,500,000		3,905,964
					16,052,266

24

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 27.45%
	Aurora Hospital Revenue
	(Children’s Hospital Association Project)
	Series A 5.00% 12/1/40	$	400,000	$	416,296
	Series D 5.00% 12/1/23 (AGM)		2,775,000		3,077,919
	Colorado Health Facilities Authority Revenue
	•(Adventist Health/Sunbelt) 5.125% 11/15/24		1,375,000		1,511,620
	(Catholic Health Initiatives)
	Series A 4.75% 9/1/40		1,000,000		1,019,690
	Series A 5.00% 7/1/39		1,540,000		1,619,510
	Series A 5.00% 2/1/41		2,250,000		2,383,583
	Series A 5.25% 2/1/33		1,000,000		1,108,430
	Series C-1 5.10% 10/1/41 (AGM)		2,000,000		2,101,780
	Series D 6.25% 10/1/33		2,000,000		2,324,260
	(Christian Living Community Project)
	6.375% 1/1/41		1,000,000		1,046,140
	Series A 5.75% 1/1/37		1,500,000		1,501,740
	(Covenant Retirement Communities)
	Series A 5.50% 12/1/33 (RADIAN)		5,000,000		5,032,849
	(Evangelical Lutheran)
	5.00% 6/1/35		2,000,000		2,010,120
	Series A 5.25% 6/1/34		2,750,000		2,780,333
	Series A 6.125% 6/1/38		5,250,000		5,411,857
	(Parkview Medical Center) 5.00% 9/1/25		1,000,000		1,036,110
	(Sisters Leavenworth)
	Series A 5.00% 1/1/40		1,000,000		1,049,840
	Series B 5.25% 1/1/25		2,500,000		2,908,250
	(Total Long-Term Care) Series A
	6.00% 11/15/30		2,365,000		2,622,643
	6.25% 11/15/40		750,000		816,863
	(Vail Valley Medical Center Project) 5.80% 1/15/27		3,475,000		3,479,969
	(Valley View Hospital Association) 5.50% 5/15/28		1,000,000		1,063,330
	Colorado Springs Hospital Revenue 6.25% 12/15/33		2,500,000		2,782,150
	Delta County Memorial Hospital District Enterprise
	Revenue 5.35% 9/1/17		4,000,000		4,127,920
	Denver Health & Hospital Authority Health Care Revenue
	(Recovery Zone Facilities) 5.625% 12/1/40		2,500,000		2,633,950
	Series A 4.75% 12/1/36		1,500,000		1,466,775
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	Auxilio Mutuo Series A 6.00% 7/1/33		2,950,000		3,275,857

25

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	University of Colorado Hospital Authority Revenue Series A
	5.00% 11/15/37	$	2,690,000	$	2,755,932
	6.00% 11/15/29		2,460,000		2,833,748
					66,199,464
Housing Revenue Bonds – 2.76%
	Colorado Housing & Finance Authority
	(Multifamily Housing Insured Mortgage)
	Series C3 6.15% 10/1/41		1,590,000		1,592,162
	(Single Family Mortgage) Series A 5.50% 11/1/29
	(FHA) (VA) (HUD)		1,195,000		1,241,127
	(Single Family Program) Series AA
	4.50% 5/1/23 (FHLMC)		720,000		785,729
	4.50% 11/1/23 (FHLMC)		740,000		805,964
	Puerto Rico Housing Finance Authority
	Subordinate (Capital Fund Modernization)
	5.125% 12/1/27		2,040,000		2,222,049
					6,647,031
Lease Revenue Bonds – 3.87%
	Aurora Certificates of Participation Refunding
	Series A 5.00% 12/1/30		2,370,000		2,635,867
	Colorado Building Excellent Schools Today Certificates of
	Participation Series G 5.00% 3/15/32		2,000,000		2,234,940
	Pueblo County Certificates of Participation
	(County Judicial Complex Project)
	5.00% 9/15/42 (AGM)		2,500,000		2,730,200
	Regional Transportation District Certificates of
	Participation Series A 5.375% 6/1/31		1,540,000		1,727,202
					9,328,209
Local General Obligation Bonds – 14.10%
	Arapahoe County Water & Wastewater Public
	Improvement District
	Series A 5.125% 12/1/32 (NATL-RE)		2,555,000		2,583,539
	Denver City & County
	(Better Denver & Zoo) Series A 5.00% 8/1/25		3,215,000		3,839,964
	(Justice System Facilities & Zoo) 5.00% 8/1/19		1,020,000		1,159,801
	Denver City & County School Refunding District #1
	4.00% 12/1/28		2,500,000		2,731,025

26

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Denver International Business Center Metropolitan
	District #1 5.00% 12/1/30	$	350,000	$	363,167
	Denver West Metropolitan District
	5.00% 12/1/33 (RADIAN)		1,400,000		1,411,354
	Douglas County School District #1
	(Douglas & Elbert Counties)
	5.00% 12/15/22		1,175,000		1,466,835
	Garfield County School District #2
	5.00% 12/1/25 (AGM)		2,280,000		2,638,439
	Grand County School District #2 (East Grand)
	5.25% 12/1/25 (AGM)		2,485,000		2,837,522
	Gunnison Watershed School District #1J
	Series 2009 5.25% 12/1/33		1,400,000		1,601,852
	Ignacio School District #11JT
	5.00% 12/1/28		1,420,000		1,679,022
	5.00% 12/1/29		820,000		963,467
	5.00% 12/1/31		835,000		969,552
	Jefferson County School District #1 5.25% 12/15/24		2,500,000		3,276,650
@	North Range Metropolitan
	District #1 4.50% 12/15/31 (ACA)		1,500,000		1,016,640
	District #2 5.50% 12/15/37		1,200,000		1,089,588
	Rangely Hospital District 6.00% 11/1/26		2,250,000		2,576,385
	Sand Creek Metropolitan District Refunding & Improvement
	5.00% 12/1/31 (SGI)		500,000		501,835
	Weld County School District #4 5.00% 12/1/19 (AGM)		1,085,000		1,294,481
					34,001,118
§Pre-Refunded Bonds – 6.02%
	Adams & Arapahoe Counties Joint School
	District #28J (Aurora) 6.00% 12/1/28-18		2,500,000		3,307,249
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Stargate Charter School Project) 6.125% 5/1/33-13		2,000,000		2,134,860
	Colorado Health Facilities Authority Revenue
	(Adventist Health) 5.125% 11/15/24-16		75,000		90,947
	Douglas County School District #1
	(Douglas & Elbert Counties)
	Series B 5.00% 12/15/24-16		2,355,000		2,748,544

27

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	El Paso County Certificates of Participation
	(Detention Facilities Project)
	Series B 5.00% 12/1/27-12 (AMBAC)	$	1,500,000	$	1,554,825
	Fremont County School District #1 (Canon City)
	5.00% 12/1/24-13 (NATL-RE)		1,735,000		1,878,884
	Garfield Pitkin & Eagle Counties School District #1
	(Roaring Fork)
	Series A 5.00% 12/15/27-14 (AGM)		1,500,000		1,692,930
	La Plata County School District #9 (Durango)
	5.125% 11/1/24-13 (NATL-RE)		1,000,000		1,081,160
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33-14		25,000		27,711
					14,517,110
Special Tax Revenue Bonds – 15.96%
	Aspen Sales Tax Revenue (Parks & Open Spaces)
	Series B 5.25% 11/1/23 (AGM)		2,040,000		2,327,048
@	Baptist Road Rural Transportation Authority Sales &
	Use Tax Revenue 5.00% 12/1/26		1,860,000		1,354,378
	Denver City & County Justice System Facilities
	5.00% 8/1/21		1,500,000		1,757,340
	Denver Convention Center Hotel Authority Revenue
	5.00% 12/1/35 (SGI)		3,495,000		3,480,286
	Denver International Business Center
	Metropolitan District #1
	5.375% 12/1/35		1,750,000		1,831,935
	Guam Government Business Privilege Tax Revenue
	Series A
	5.125% 1/1/42		1,250,000		1,357,563
	5.25% 1/1/36		1,675,000		1,863,287
	Park Meadows Business Improvement District Shared
	Sales Tax Revenue
	5.30% 12/1/27		950,000		950,380
	5.35% 12/1/31		720,000		707,018

28

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate
	Series A 5.25% 8/1/27	$	1,100,000	$	1,245,959
	Series A 5.50% 8/1/42		1,500,000		1,634,955
	Series A 5.75% 8/1/37		2,620,000		2,932,356
	Series A-1 5.00% 8/1/43		1,770,000		1,884,147
	Series C 5.00% 8/1/40		2,500,000		2,711,950
	Series C 5.00% 8/1/46		5,500,000		5,916,460
	Series C 5.50% 8/1/40		1,000,000		1,095,470
	Ω(Convertible Capital Appreciation Bonds)
	Series A 6.75% 8/1/32		1,345,000		1,316,863
	Regional Transportation District Sales Tax Revenue
	(Fastracks Project)
	Series 5.00% 11/1/28 (AMBAC)		2,500,000		2,879,300
	Series A 5.25% 11/1/18		1,000,000		1,252,370
					38,499,065
State & Territory General Obligation Bonds – 4.59%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/21		4,000,000		4,125,360
	Series A 5.50% 7/1/19 (NATL-RE) (IBC)		1,220,000		1,391,483
	Series A 5.75% 7/1/41		3,850,000		4,221,101
	Series E 5.375% 7/1/30		1,250,000		1,341,938
					11,079,882
Transportation Revenue Bonds – 7.15%
	Denver City & County Airport System Revenue
	Series A 5.00% 11/15/25 (NATL-RE) (FGIC)		2,000,000		2,195,440
	Series A 5.25% 11/15/36		2,500,000		2,772,800
	Series B 5.00% 11/15/33 (SGI)		2,000,000		2,039,780
	E-470 Public Highway Authority Series C
	5.25% 9/1/25		690,000		737,803
	5.375% 9/1/26		2,000,000		2,138,580
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30		4,700,000		4,785,681
	Regional Transportation District Revenue
	(Denver Transit Partners) 6.00% 1/15/41		2,400,000		2,588,016
					17,258,100

29

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 0.59%
	Eagle River Water & Sanitation District Enterprise Revenue
	5.00% 12/1/29 (ASSURED GTY)	$	250,000	$	289,888
	Pueblo Board Waterworks Revenue 5.00% 11/1/21 (AGM)		1,000,000		1,141,450
					1,431,338
Total Municipal Bonds (cost $222,553,474)					238,659,092
		Number of shares
Short-Term Investments – 0.67%
Money Market Mutual Fund – 0.59%
	Dreyfus Cash Management Fund		1,408,470		1,408,470
					1,408,470
		Principal amount
¤Variable Rate Demand Notes – 0.08%
	Colorado Educational & Cultural Facilities Authority
	(Various National Jewish Federal) Series C4
	0.10% 6/1/37 (LOC-U.S. Bank N.A.)	$	200,000		200,000
					200,000
Total Short-Term Investments (cost $1,608,470)					1,608,470
Total Value of Securities – 99.62%
	(cost $224,161,944)				240,267,562
Receivables and Other Assets
	Net of Liabilities – 0.38%				924,100
Net Assets Applicable to 20,998,240
	Shares Outstanding – 100.00%			$	241,191,662
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class A ($227,337,455 / 19,795,104 Shares)					$11.48
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class B ($260,795 / 22,688 Shares)					$11.49
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class C ($13,593,412 / 1,180,448 Shares)					$11.52

30

Components of Net Assets at February 29, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	226,932,360
Undistributed net investment income		352,563
Accumulated net realized loss on investments		(2,198,879	)
Net unrealized appreciation of investments		16,105,618
Total net assets	$	241,191,662

•	Variable rate security. The rate shown is the rate as of February 29, 2012. Interest rates reset periodically.
@	Illiquid security. At February 29, 2012, the aggregate value of illiquid securities was $3,460,606, which represented 1.43% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
§	Pre-Refunded bonds. Municipal bonds 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. Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of February 29, 2012.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
FHLMC — Federal Home Loan Mortgage Corporation collateral
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration collateral

31

Statements of net assets
Delaware Tax-Free Colorado Fund

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Colorado Fund
Net asset value Class A (A)	$	11.48
Sales charge (4.50% of offering price) (B)		0.54
Offering price	$	12.02

(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, which are an integral part of the financial statements.

32

Delaware Tax-Free Idaho Fund February 29, 2012 (Unaudited)

 

		Principal amount		Value
Municipal Bonds – 99.25%
Corporate Revenue Bonds – 6.29%
	Nez Perce County Pollution Control Revenue
	(Potlatch Project) 6.00% 10/1/24	$	5,035,000	$	5,036,561
	Power County Industrial Development Revenue
	(FMC Project) 6.45% 8/1/32 (AMT)		2,000,000		2,002,520
	Power County Pollution Control Revenue (FMC Project)
	5.625% 10/1/14		2,475,000		2,476,064
					9,515,145
Education Revenue Bonds – 10.24%
	Boise State University Revenue
	(General Project) Series A
	4.00% 4/1/37		1,250,000		1,260,825
	5.00% 4/1/42		1,300,000		1,446,393
	(General Refunding) Series A
	4.25% 4/1/32 (NATL-RE)		750,000		779,723
	5.00% 4/1/39		1,000,000		1,091,120
	Un-Refunded Series 07 5.375% 4/1/22 (FGIC)		5,000		5,021
	Idaho Housing & Financing Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		1,000,000		1,088,220
	Idaho State University Revenue Refunding & Improvement
	5.00% 4/1/20 (AGM)		1,130,000		1,182,037
	5.00% 4/1/23 (AGM)		2,115,000		2,169,440
	University of Idaho (General Refunding)
	•Series 2011 5.25% 4/1/41		2,000,000		2,399,639
	Series A 5.00% 4/1/21 (AMBAC)		1,150,000		1,241,264
	•Series B 4.50% 4/1/41 (AGM)		1,000,000		1,139,430
	Series B 5.00% 4/1/28		1,000,000		1,129,260
	Series B 5.00% 4/1/32		500,000		553,725
					15,486,097
Electric Revenue Bonds – 4.55%
	Boise-Kuna Irrigation District Revenue
	(Arrowrock Hydroelectric Project) 6.30% 6/1/31		1,000,000		1,132,310
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/32		3,170,000		3,303,077
	Series TT 5.00% 7/1/37		210,000		214,074
	Series ZZ 5.25% 7/1/26		2,000,000		2,231,980
					6,881,441

33

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 6.37%
	Idaho Health Facilities Authority Revenue
	(St. Luke’s Health System Project) Series A
	6.50% 11/1/23	$	250,000	$	298,585
	6.75% 11/1/37		1,250,000		1,460,225
	(St. Luke’s Regional Medical Center Project)
	5.00% 7/1/35 (AGM)		2,500,000		2,698,650
	(Trinity Health Center Group)
	Series B 6.125% 12/1/28		1,000,000		1,192,790
	Series D 4.50% 12/1/37		1,205,000		1,266,804
	Puerto Rico Industrial Tourist Educational Medical &
	Environmental Control Facilities Financing Authority
	(Auxilio Mutuo) Series A 6.00% 7/1/33		2,455,000		2,726,180
					9,643,234
Housing Revenue Bonds – 3.33%
	Idaho Housing & Finance Association Single Family
	Mortgage Revenue
	Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT)		10,000		10,025
	Series A 6.10% 7/1/16 (FHA) (VA) (AMT)		10,000		10,022
	Series A Class II 4.375% 7/1/32		1,000,000		1,028,820
	Series B 6.45% 7/1/15 (AMT)		10,000		10,025
	Series B Class I 5.00% 7/1/37 (AMT)		435,000		440,999
	Series B Class I 5.50% 7/1/38		310,000		332,577
	Series C Class II 4.95% 7/1/31		1,000,000		1,057,630
	Series E 6.35% 7/1/15 (FHA) (AMT)		5,000		5,012
	Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT)		25,000		25,059
	Series I-1 Class I 5.45% 1/1/39 (AMT)		1,000,000		1,023,070
	Puerto Rico Housing Finance Authority Subordinated-
	Capital Fund Modernization 5.125% 12/1/27		1,000,000		1,089,240
					5,032,479
Lease Revenue Bonds – 7.11%
	Idaho Housing & Finance Association Revenue
	(TDF Facilities PJ-Recovery Zone)
	Series A 6.50% 2/1/26		1,370,000		1,522,645
	Series A 7.00% 2/1/36		1,500,000		1,644,705
	Idaho State Building Authority Revenue
	Series A 5.00% 9/1/33 (SGI)		1,000,000		1,015,140
	Series A 5.00% 9/1/43 (SGI)		5,750,000		5,829,638
	Series B 5.00% 9/1/21 (NATL-RE)		750,000		752,655
					10,764,783

34

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 20.92%
	Ada & Canyon Counties Joint School District #2 Meridian
	(School Board Guaranteed Program)
	4.50% 7/30/22	$	1,500,000	$	1,845,735
	4.75% 2/15/20		1,000,000		1,104,660
	5.50% 7/30/16		1,305,000		1,574,274
	Bannock County School District #25 Pocatello/Chubbuck
	(School Board Guaranteed Program)
	5.00% 8/15/15		1,040,000		1,154,733
	5.00% 8/15/16		1,100,000		1,216,578
	Boise City Independent School District 5.00% 8/1/24 (AGM)		1,500,000		1,708,275
	Canyon County School District #131 Nampa
	(School Board Guaranteed Program)
	Series B 5.00% 8/15/23		1,295,000		1,619,553
	Canyon County School District #132 Caldwell
	5.00% 7/30/15 (NATL-RE) (FGIC)		2,000,000		2,260,960
	Series A 5.00% 9/15/22 (AGM)		1,725,000		2,004,795
	Series A 5.00% 9/15/23 (AGM)		1,810,000		2,091,908
	Idaho Bond Bank Authority Revenue
	Series A 5.00% 9/15/28		1,250,000		1,438,925
	Series A 5.00% 9/15/31		1,025,000		1,213,846
	Series A 5.00% 9/15/33		1,125,000		1,313,021
	Series A 5.25% 9/15/26		2,000,000		2,362,840
	Series C 4.00% 9/15/29		1,320,000		1,454,878
	Lemhi County 5.20% 8/1/27 (AGM)		2,145,000		2,216,429
	Nampa City Series B 5.00% 8/1/21 (NATL-RE) (FGIC)		2,475,000		2,692,304
	Twin Falls County School District #413 Filer
	(School Board Guaranteed Program) 5.25% 9/15/25		2,000,000		2,370,419
					31,644,133
§Pre-Refunded Bonds – 3.37%
	Ada & Canyon Counties Joint School District #3 Kuna
	(School Board Guaranteed Program) 4.75% 8/15/22-14		600,000		664,764
	Boise State University Revenue
	(General Refunding) Series A
	5.00% 4/1/18-14 (NATL-RE) (FGIC)		1,500,000		1,645,530
	(Student Union & Housing System)
	5.00% 4/1/17-13 (AMBAC)		500,000		525,835
	Moscow Sewer Revenue 5.00% 11/1/22-12 (AGM)		2,175,000		2,242,251
	Puerto Rico Sales Tax Financing Revenue First Subordinate
	Series A 5.50% 8/1/28-19		15,000		19,568
					5,097,948

35

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 23.48%
	Coeur d’Alene Local Improvement District #6
	Series 1997 6.10% 7/1/12	$	40,000	$	40,568
	Series 1998 6.10% 7/1/14		45,000		45,592
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		545,000		591,897
	5.25% 1/1/36		705,000		784,249
	Idaho Bond Bank Authority Revenue Series B
	5.00% 9/15/30 (NATL-RE)		725,000		791,156
	Idaho Water Resource Board
	(Ground Water Rights Mitigation) 5.00% 9/1/32		2,565,000		2,599,525
	Ketchum Urban Renewal Agency 5.50% 10/15/34		1,500,000		1,576,080
	Nampa Development Revenue 5.90% 3/1/30		3,000,000		3,191,580
	Puerto Rico Sales Tax Financing Revenue
	^(Capital Appreciation) Series A
	5.73% 8/1/44 (NATL-RE)		5,125,000		868,688
	5.82% 8/1/45 (NATL-RE)		5,280,000		842,054
	First Subordinate
	Ω(Convertible Capital Appreciation) Series A 6.75% 8/1/32		735,000		719,624
	Series A 5.00% 8/1/26		1,300,000		1,433,861
	Series A 5.25% 8/1/27		3,000,000		3,398,071
	Series A 5.50% 8/1/28		1,385,000		1,581,656
	Series A 5.50% 8/1/42		2,000,000		2,179,940
	Series A 5.75% 8/1/37		2,660,000		2,977,125
	Series A-1 5.00% 8/1/43		1,060,000		1,128,359
	Series C 5.00% 8/1/40		2,500,000		2,711,950
	Series C 5.25% 8/1/40		2,000,000		2,225,300
	Series C 5.50% 8/1/40		1,960,000		2,147,121
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note) Series A
	5.00% 10/1/29		2,220,000		2,341,145
	5.25% 10/1/20		500,000		523,570
	5.25% 10/1/24		800,000		828,656
					35,527,767
State & Territory General Obligation Bonds – 3.90%
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/22		1,000,000		1,030,940
	Series A 5.75% 7/1/41		3,850,000		4,221,102
	Series E Refunding 5.375% 7/1/30		600,000		644,130
					5,896,172

36

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 8.51%
	Boise Airport Revenue (Air Terminal Facilities Project)
	5.75% 9/1/19 (AGM) (AMT)	$	1,000,000	$	1,206,560
	5.75% 9/1/20 (AGM) (AMT)		1,000,000		1,211,950
	Idaho Housing & Finance Association Grant Revenue
	(Anticipated Federal Highway Trust)
	5.00% 7/15/24 (NATL-RE)		2,000,000		2,191,100
	Series A 4.75% 7/15/19		1,410,000		1,694,101
	Series A 5.25% 7/15/20 (ASSURED GTY)		2,750,000		3,274,617
	Series A 5.25% 7/15/25 (ASSURED GTY)		1,500,000		1,754,565
	Series A-1 4.00% 7/15/17		500,000		572,610
	Puerto Rico Highway & Transportation Authority Revenue
	Series K 5.00% 7/1/30		890,000		906,225
	Un-Refunded Series W 5.50% 7/1/15		55,000		61,092
					12,872,820
Water & Sewer Revenue Bonds – 1.18%
	Idaho Bond Bank Authority Revenue
	Series C 5.375% 9/15/38		1,000,000		1,120,910
	Puerto Rico Commonwealth Aqueduct &
	Sewer Authority Senior Lien Series A
	5.25% 7/1/42		265,000		265,379
	6.00% 7/1/47		365,000		393,700
					1,779,989
Total Municipal Bonds (cost $139,303,367)					150,142,008
		Number of shares
Short-Term Investments – 1.51%
Money Market Mutual Fund – 1.17%
	Dreyfus Cash Management Fund		1,768,271		1,768,271
					1,768,271
		Principal amount
¤Variable Rate Demand Note – 0.34%
	Idaho State University Foundation Revenue
	(L.E. & Thelma Stephens Project) 0.15% 5/1/21
	(LOC-Wells Fargo Bank N.A.)	$	520,000		520,000
					520,000
Total Short-Term Investments (cost $2,288,271)					2,288,271

37

Statements of net assets
Delaware Tax-Free Idaho Fund

Total Value of Securities – 100.76%
(cost $141,591,638)	$	152,430,279
Liabilities Net of Receivables
and Other Assets – (0.76%)		(1,154,839		)
Net Assets Applicable to 12,477,387
Shares Outstanding – 100.00%	$	151,275,440
Net Asset Value – Delaware Tax-Free Idaho Fund
Class A ($112,232,046 / 9,255,173 Shares)			$12.13
Net Asset Value – Delaware Tax-Free Idaho Fund
Class B ($635,705 / 52,519 Shares)			$12.10
Net Asset Value – Delaware Tax-Free Idaho Fund
Class C ($38,407,689 / 3,169,695 Shares)			$12.12
Components of Net Assets at February 29, 2012:
Shares of beneficial interest (unlimited authorization – no par)	$	141,792,798
Distributions in excess of net investment income		(16,644		)
Accumulated net realized loss on investments		(1,339,355		)
Net unrealized appreciation of investments		10,838,641
Total net assets	$	151,275,440

•	Variable rate security. The rate shown is the rate as of February 29, 2012. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds 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.”
^	Zero coupon security. The rate shown is the yield at the time of purchase.
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of February 29, 2012.

38

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
SGI — Insured by Syncora Guarantee Inc.
VA — Veterans Administration collateral

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Idaho Fund
Net asset value Class A (A)	$	12.13
Sales charge (4.50% of offering price) (B)		0.57
Offering price	$	12.70

(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, which are an integral part of the financial statements.

39

Statements of net assets
Delaware Tax-Free New York Fund February 29, 2012 (Unaudited)

 

		Principal amount		Value
Municipal Bonds – 96.87%
Corporate Revenue Bonds – 7.60%
	Chautauqua County Industrial Development Agency
	Exempt Facilities Revenue (NRG Dunkirk Power Project)
	5.875% 4/1/42	$	1,000,000	$	1,076,929
	Jefferson County Industrial Development Agency
	Solid Waste Disposal (International Paper)
	Series A 5.20% 12/1/20 (AMT)		350,000		353,479
	Nassau County Tobacco Settlement Revenue
	(Asset-Backed) Series A-3 5.125% 6/1/46		600,000		390,696
•	New York City Industrial Development
	Agency Special Facilities Revenue
	(American Airlines-JFK International Airport)
	7.75% 8/1/31 (AMT)		250,000		237,168
	New York Liberty Development Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35		625,000		693,163
	(Second Priority-Bank of America Tower)
	5.625% 7/15/47		500,000		528,275
	6.375% 7/15/49		600,000		652,728
	Suffolk County Industrial Development Agency Revenue
	(Keyspan-Port Jefferson Energy Center)
	5.25% 6/1/27 (AMT)		250,000		255,850
	TSASC Revenue (Asset-Backed) Series 1
	5.00% 6/1/34		500,000		372,150
	5.125% 6/1/42		500,000		359,495
					4,919,933
Education Revenue Bonds – 21.78%
	Albany Industrial Development Agency Civic Facilities
	Revenue (Brighter Choice Charter School)
	Series A 5.00% 4/1/37		250,000		218,945
	Buffalo & Erie County Industrial Land Development
	(Buffalo State College Foundation Housing) 6.00% 10/1/31		525,000		617,684
	Dutchess County Industrial Development Agency
	(Marist College) Series A 5.00% 7/1/20		500,000		509,645
	Hempstead Town Local Development
	Revenue (Molloy College Project)
	5.75% 7/1/23		400,000		461,560
	Madison County Capital Resource Revenue
	(Colgate University Project)
	Series A 5.00% 7/1/28		400,000		464,220

40

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Monroe County Industrial Development Revenue
	(Nazareth College Rochester Project)
	5.25% 10/1/31		$	500,000	$	542,920
	5.50% 10/1/41			500,000		542,015
	New York City Trust for Cultural Resources
	(Whitney Museum of American Art) 5.00% 7/1/31			500,000		551,575
	New York State Dormitory Authority Revenue
	(Brooklyn Law School) 5.75% 7/1/33			340,000		385,937
	(Columbia University) Series A 5.00% 7/1/23			500,000		528,150
	(Cornell University) Series A
	4.75% 7/1/29			100,000		113,669
	5.00% 7/1/34			170,000		191,823
	(Manhattan Marymount) 5.00% 7/1/24			350,000		376,894
	(Mt. Sinai School Medicine) 5.125% 7/1/39			500,000		539,565
	(New York University) Series A 5.25% 7/1/34			500,000		564,980
	(Rockefeller University) Series A
	5.00% 7/1/27			250,000		291,298
	5.00% 7/1/37			600,000		681,107
	(Skidmore College) Series A 5.00% 7/1/21			325,000		400,507
	(St. Joseph’s College) 5.25% 7/1/25			500,000		543,390
	(Teachers College) 5.50% 3/1/39			250,000		277,793
	(University of Rochester)
	Series A 5.125% 7/1/39			250,000		273,625
	Series A-2 4.375% 7/1/20			250,000		273,380
	(Yeshiva University) Series A 5.00% 11/1/40			1,000,000		1,067,499
	Onondaga Civic Development Revenue
	(Le Moyne College Project) 5.20% 7/1/29			500,000		537,210
	Onondaga County Trust for Cultural Research
	Revenue (Syracuse University Project)
	Series B 5.00% 12/1/19			350,000		426,339
	St. Lawrence County Industrial Development Agency
	Civic Facility Revenue (St. Lawrence University)
	Series A 5.00% 10/1/16			500,000		577,965
	Suffolk County Industrial Development Agency
	Civic Facility Revenue (New York Institute of
	Technology Project) 5.00% 3/1/26			600,000		619,182

41

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Troy Industrial Development Authority Civic Facility
	Revenue (Rensselaer Polytechnic)
	Series E 5.20% 4/1/37		$	500,000	$	539,465
	Yonkers Economic Development Education Revenue
	(Charter School Educational Excellence)
	6.25% 10/15/40			600,000		604,314
	Yonkers Industrial Development Agency Civic Facility
	Revenue (Sarah Lawrence College Project)
	Series A 6.00% 6/1/29			325,000		369,616
						14,092,272
Electric Revenue Bonds – 3.11%
	Long Island Power Authority Electric System Revenue
	Series A 5.75% 4/1/39			350,000		401,058
	Series B 5.75% 4/1/33			250,000		290,570
	New York Power Authority Series A 5.00% 11/15/38			500,000		562,805
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28			190,000		202,453
	Series ZZ 5.25% 7/1/26			500,000		557,995
						2,014,881
Healthcare Revenue Bonds – 14.65%
	Albany Industrial Development Agency Civic Facility
	Revenue (St. Peter’s Hospital Project)
	Series A 5.25% 11/15/32			500,000		527,550
	East Rochester Housing Authority Revenue
	(Senior Living-Woodland Village Project)
	5.50% 8/1/33			500,000		452,205
	Monroe County Industrial Development
	Insured Mortgage Revenue (University Hospital of
	Rochester Project) 5.50% 8/15/40 (FHA)			585,000		660,634
	New York City Health & Hospital Revenue
	(Health System) Series A 5.00% 2/15/30			500,000		551,165
	New York Dormitory Authority Revenue
	(Catholic Health Long Island Obligation Group)
	5.00% 7/1/27			400,000		410,760
	(Chapel Oaks) 5.45% 7/1/26 (LOC-Allied Irish Bank)			450,000		451,004
	(Winthrop South Nassau Hospital)
	Series B 5.50% 7/1/23			500,000		512,545

42

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	New York Dormitory Authority Revenue
	Non-State Supported Debt
	(Memorial Sloan-Kettering)
	5.00% 7/1/41		$	180,000	$	198,128
	Series 1 4.375% 7/1/34			600,000		635,916
	Series 1 5.00% 7/1/23			600,000		725,147
	Series 1 5.00% 7/1/35			225,000		237,956
	Subordinate Series A2 5.00% 7/1/26			500,000		559,920
	(Mt. Sinai Hospital) Series A 5.00% 7/1/26			600,000		657,528
	(North Shore Long Island Jewish Group) Series A
	5.00% 5/1/41			500,000		532,315
	5.50% 5/1/37			500,000		556,380
	(Orange Regional Medical Center) 6.125% 12/1/29			540,000		559,300
	Suffolk County Economic Development Revenue
	(Catholic Health Services) 5.00% 7/1/28			500,000		554,450
	(Peconic Landing Southland) 6.00% 12/1/40			650,000		699,152
						9,482,055
Housing Revenue Bonds – 1.18%
	New York City Housing Development Multifamily Housing
	Revenue Series G-1 4.875% 11/1/39 (AMT)			250,000		253,108
	New York Mortgage Agency Revenue 44th
	Series 4.35% 10/1/24 (AMT)			500,000		509,865
						762,973
Lease Revenue Bonds – 14.31%
	Battery Park City Authority Revenue
	Series A 5.00% 11/1/26			250,000		267,123
	Erie County Industrial Development Agency
	School Facility Revenue (Buffalo City School District)
	Series A 5.25% 5/1/25			500,000		577,255
	Hudson Yards Infrastructure Revenue Series A
	5.00% 2/15/47			500,000		515,075
	5.25% 2/15/47			600,000		650,130
	5.75% 2/15/47			1,000,000		1,131,890
	New York City Industrial Development Agency
	Special Airport Facility Revenue (Airis JFK I Project)
	Series A 5.50% 7/1/28 (AMT)			500,000		464,900
	New York Liberty Development (World Trade Center Project)
	5.00% 11/15/31			500,000		554,100
	5.75% 11/15/51			1,055,000		1,200,927

43

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	New York State Dormitory Authority
	Revenue (Third Generation Resolution)
	Series A 5.00% 5/15/30		$	1,000,000	$	1,167,560
	Onondaga County Industrial Development Agency Revenue
	(Air Cargo) 7.25% 1/1/32 (AMT)			500,000		476,260
	Puerto Rico Public Finance (Commonwealth Appropriation)
	Series B 5.50% 8/1/31			870,000		946,282
	Tobacco Settlement Financing Authority
	Revenue (Asset-Backed) Series B-1C
	5.50% 6/1/20			200,000		212,486
	5.50% 6/1/21			500,000		531,280
	United Nations Development
	Revenue Series A 5.00% 7/1/26			500,000		565,590
						9,260,858
Local General Obligation Bonds – 5.54%
	New York City
	Series C-1 5.00% 10/1/19			500,000		593,240
	Series D 5.00% 11/1/34			125,000		130,828
	Series D-1 5.00% 10/1/36			1,000,000		1,121,700
	Series I-1 5.375% 4/1/36			500,000		570,000
	New York State Dormitory Authority
	Revenue Non-State Supported Debt
	(School Districts-Financing Program) Series A
	5.00% 10/1/23			500,000		593,320
	5.00% 10/1/25 (AGM)			500,000		577,255
						3,586,343
§Pre-Refunded Bonds – 1.19%
	Puerto Rico Commonwealth Highway &
	Transportation Authority Revenue
	Series Y 5.50% 7/1/36-16			475,000		580,588
	Puerto Rico Commonwealth Series B 5.25% 7/1/32-16			155,000		187,043
						767,631
Special Tax Revenue Bonds – 15.14%
	Brooklyn Arena Local Development Revenue
	(Barclays Center Project)
	6.375% 7/15/43			500,000		541,575
	6.50% 7/15/30			500,000		554,140

44

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Guam Government Business Privilege Tax Revenue Series A
	5.125% 1/1/42		$	185,000	$	200,919
	5.25% 1/1/36			240,000		266,978
	Metropolitan Transportation Authority Revenue
	Series B 5.00% 11/15/34			500,000		551,875
	New York City Transitional Finance Authority Revenue
	(Building Aid Revenue) Series S-1A 5.25% 7/15/37			1,000,000		1,132,419
	(Future Tax Secured)
	Fiscal 2011 5.00% 2/1/26			250,000		297,805
	Fiscal 2011 5.25% 2/1/29			500,000		599,345
	Series A 5.00% 11/1/26			500,000		602,355
	Series B 5.00% 11/1/18			500,000		594,945
	Series C 5.25% 11/1/25			500,000		609,680
	Series D-1 5.00% 11/1/22			500,000		621,854
	New York City Trust for Cultural Resources Revenue
	(Museum Modern Art) Series A1 5.00% 4/1/31			250,000		278,343
	New York Dormitory Authority State Personal Income Tax
	Revenue Series C 5.00% 3/15/34			500,000		567,875
	New York Dormitory Authority State Supported Debt
	Revenue (Consolidated Services Contract)
	5.00% 7/1/17 (AGM)			500,000		593,125
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)			500,000		552,590
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series B 5.00% 7/1/15			250,000		271,073
Ω	Puerto Rico Sales Tax Financing Revenue First Subordinate
	(Convertible Capital Appreciation)
	Series A 6.75% 8/1/32			185,000		181,130
	Schenectady Metroplex Development Authority Revenue
	Series A 5.375% 12/15/21			500,000		516,355
	Virgin Islands Public Finance Authority Revenue
	(Matching Fund Loan Note-Senior Lien)
	Series A 5.00% 10/1/29			250,000		263,643
						9,798,024
State & Territory General Obligation Bonds – 4.05%
	New York City Series E 5.00% 8/1/28			125,000		144,336
	New York State Series A 5.00% 3/1/38			500,000		547,245

45

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
State & Territory General Obligation Bonds (continued)
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed
	4.75% 12/1/15 (NATL-RE)		$	230,000	$	237,259
	Puerto Rico Commonwealth Public Improvement Series A
	5.50% 7/1/19 (NATL-RE) (IBC)			520,000		593,091
	5.75% 7/1/41			1,000,000		1,096,390
						2,618,321
Transportation Revenue Bonds – 5.73%
	Metropolitan Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28			200,000		249,122
	Series A 5.00% 11/15/41			500,000		545,135
	Series D 5.25% 11/15/27			500,000		579,795
	Series F 5.00% 11/15/15			150,000		171,632
	New York State Thruway Authority General Revenue
	(Bond Antics Notes) Series H
	5.00% 1/1/15 (NATL-RE)			250,000		279,225
	Port Authority New York & New Jersey
	(Consolidated-One Hundred Fifty-Third) 5.00% 7/15/35			250,000		274,480
	(JFK International Air Terminal)
	6.00% 12/1/42			700,000		783,188
	6.50% 12/1/28			550,000		594,473
	Triborough Bridge & Tunnel Authority Revenue
	Series C 5.00% 11/15/24			200,000		234,510
						3,711,560
Water & Sewer Revenue Bonds – 2.59%
	New York City Municipal Water Finance Authority
	Water & Sewer System Revenue
	(Second General Resolution) 5.25% 6/15/44			500,000		566,900
	Series A 5.75% 6/15/40			200,000		232,506
	Series FF 5.50% 6/15/40			250,000		288,803
	New York State Environmental Facilities Revenue
	Clean Water & Drinking Revolving Funds
	5.00% 6/15/30			500,000		586,545
						1,674,754
Total Municipal Bonds (cost $58,020,565)						62,689,605

46

		Principal amount		Value
Short-Term Investment – 0.77%
¤Variable Rate Demand Note – 0.77%
	City of New York Various Subordinate
	Series A-8 0.08% 8/1/18
	(LOC-JP Morgan Chase Bank N.A.)	$500,000	$	500,000
Total Short-Term Investment (cost $500,000)				500,000
Total Value of Securities – 97.64%
	(cost $58,520,565)			63,189,605
Receivables and Other Assets
	Net of Liabilities – 2.36%			1,525,936
Net Assets Applicable to 5,688,634
	Shares Outstanding – 100.00%		$	64,715,541
Net Asset Value – Delaware Tax-Free New York Fund
	Class A ($46,402,930 / 4,076,130 Shares)				$11.38
Net Asset Value – Delaware Tax-Free New York Fund
	Class B ($522,464 / 45,991 Shares)				$11.36
Net Asset Value – Delaware Tax-Free New York Fund
	Class C ($17,790,147 / 1,566,513 Shares)				$11.36
Components of Net Assets at February 29, 2012:
Shares of beneficial interest (unlimited authorization – no par)			$	60,026,860
Distributions in excess of net investment income				(657		)
Accumulated net realized gain on investments				20,298
Net unrealized appreciation of investments				4,669,040
Total net assets			$	64,715,541

•	Variable rate security. The rate shown is the rate as of February 29, 2012. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds 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.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument. The rate shown is the rate as of February 29, 2012.

47

Statements of net assets
Delaware Tax-Free New York Fund

Summary of abbreviations:

AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FHA — Federal Housing Administration
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free New York Fund
Net asset value Class A (A)	$	11.38
Sales charge (4.50% of offering price) (B)		0.54
Offering price	$	11.92

(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, which are an integral part of the financial statements.

48

Statements of operations

Six Months Ended February 29, 2012 (Unaudited)

	Delaware Tax Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
Investment Income:
Interest		$	2,487,085			$	2,186,734			$	5,680,255
Expenses:
Management fees			260,181				235,712				639,149
Distribution expenses – Class A			120,836				86,215				273,518
Distribution expenses – Class B			3,260				4,952				2,071
Distribution expenses – Class C			33,877				78,529				65,779
Dividend disbursing and transfer agent
fees and expenses			26,572				28,160				59,851
Accounting and administration expenses			20,460				16,850				45,692
Legal fees			10,172				4,927				15,014
Registration fees			9,661				4,167				4,932
Reports and statements to shareholders			6,518				5,400				10,172
Audit and tax			5,577				6,051				6,289
Pricing fees			3,951				4,878				5,351
Trustees’ fees			2,750				2,264				6,136
Insurance fees			1,365				739				2,483
Custodian fees			1,009				1,042				2,329
Dues and services			885				711				176
Consulting fees			389				318				870
Trustees’ expenses			241				197				536
			507,704				481,112				1,140,348
Less fees waived			(42,775	)			(67,192	)			(113,438	)
Less expense paid indirectly			(13	)			(9	)			(27	)
Total operating expenses			464,916				413,911				1,026,883
Net Investment Income			2,022,169				1,772,823				4,653,372
Net Realized and Unrealized Gain:
Net realized gain on investments			518,561				552,926				1,862,832
Net change in unrealized appreciation
of investments			3,784,088				4,656,728				10,727,079
Net Realized and Unrealized Gain			4,302,649				5,209,654				12,589,911
Net Increase in Net Assets
Resulting from Operations		$	6,324,818			$	6,982,477			$	17,243,283

See accompanying notes, which are an integral part of the financial statements.

50

	Delaware Tax Free				Delaware Tax-Free
	Idaho Fund				New York Fund
Investment Income:
Interest		$	3,188,277			$	1,314,898
Expenses:
Management fees			385,820				156,089
Distribution expenses – Class A			129,711				50,418
Distribution expenses – Class B			3,284				2,421
Distribution expenses – Class C			178,649				78,640
Dividend disbursing and transfer agent
fees and expenses			36,451				22,242
Accounting and administration expenses			27,580				11,157
Legal fees			8,340				2,496
Reports and statements to shareholders			7,621				4,239
Audit and tax			6,539				6,117
Registration fees			5,216				7,184
Pricing fees			4,674				5,525
Trustees’ fees			3,697				1,481
Custodian fees			1,519				641
Insurance fees			1,177				484
Dues and services			734				667
Consulting fees			510				202
Trustees’ expenses			321				127
			801,843				350,130
Less fees waived			(48,518	)			(62,770	)
Less expense paid indirectly			(16	)			(6	)
Total operating expenses			753,309				287,354
Net Investment Income			2,434,968				1,027,544
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on investments			(328,309	)			507,834
Net change in unrealized appreciation
of investments			5,063,828				2,538,936
Net Realized and Unrealized Gain			4,735,519				3,046,770
Net Increase in Net Assets
Resulting from Operations		$	7,170,487			$	4,074,314

See accompanying notes, which are an integral part of the financial statements.

51

Statements of changes in net assets
Delaware Tax-Free Arizona Fund

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,022,169		$	4,224,609
Net realized gain on investments		518,561			26,324
Net change in unrealized appreciation
(depreciation) of investments		3,784,088			(4,245,010	)
Net increase in net assets resulting from operations		6,324,818			5,923
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,893,015	)		(3,935,696	)
Class B		(10,330	)		(48,023	)
Class C		(107,319	)		(229,913	)
Net realized gain on investments:
Class A		(25,133	)		(250,507	)
Class B		(172	)		(5,139	)
Class C		(1,764	)		(18,335	)
		(2,037,733	)		(4,487,613	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		3,329,525			9,590,092
Class B		—			468
Class C		229,342			802,573
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,345,732			2,229,671
Class B		9,363			31,965
Class C		88,644			152,719
		5,002,606			12,807,488

52

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(4,408,791	)	$	(20,506,737	)
Class B		(167,311	)		(2,067,231	)
Class C		(612,379	)		(1,832,935	)
		(5,188,481	)		(24,406,903	)
Decrease in net assets derived from
capital share transactions		(185,875	)		(11,599,415	)
Net Increase (Decrease) in Net Assets		4,101,210			(16,081,105	)
Net Assets:
Beginning of period		103,045,367			119,126,472
End of period1	$	107,146,577		$	103,045,367
1Including undistributed net investment income	$	25,308		$	25,309

See accompanying notes, which are an integral part of the financial statements.

53

Statements of changes in net assets
Delaware Tax-Free California Fund

	Six Months				Year
	Ended				Ended
	2/29/12				8/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,772,823		$	3,588,094
Net realized gain (loss) on investments		552,926			(718,355	)
Net change in unrealized appreciation
(depreciation) of investments		4,656,728			(2,957,481	)
Net increase (decrease) in net assets
resulting from operations		6,982,477			(87,742	)
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,473,008	)		(2,970,212	)
Class B		(17,462	)		(71,308	)
Class C		(276,540	)		(536,304	)
		(1,767,010	)		(3,577,824	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		5,241,444			13,966,047
Class B		—			446
Class C		1,688,727			3,882,265
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		949,700			1,792,877
Class B		12,405			53,523
Class C		219,340			389,108
		8,111,616			20,084,266

54

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(4,687,159	)	$	(18,652,984	)
Class B		(455,314	)		(1,868,698	)
Class C		(1,047,439	)		(4,362,004	)
		(6,189,912	)		(24,883,686	)
Increase (decrease) in net assets derived from
capital share transactions		1,921,704			(4,799,420	)
Net Increase (Decrease) in Net Assets		7,137,171			(8,464,986	)
Net Assets:
Beginning of period		83,216,597			91,681,583
End of period1	$	90,353,768		$	83,216,597
1Including undistributed net investment income	$	18,780		$	18,763

See accompanying notes, which are an integral part of the financial statements.

55

Statements of changes in net assets
Delaware Tax-Free Colorado Fund

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	4,653,372		$	9,935,304
Net realized gain (loss) on investments		1,862,832			(1,090,497	)
Net change in unrealized appreciation
(depreciation) of investments		10,727,079			(8,167,863	)
Net increase in net assets resulting from operations		17,243,283			676,944
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,419,449	)		(9,065,106	)
Class B		(6,886	)		(32,264	)
Class C		(216,417	)		(473,556	)
		(4,642,752	)		(9,570,926	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		5,739,753			9,661,260
Class B		—			304
Class C		584,604			1,768,344
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		3,294,430			5,999,728
Class B		4,017			21,271
Class C		181,062			348,473
		9,803,866			17,799,380

56

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(9,721,848	)	$	(28,796,246	)
Class B		(371,470	)		(776,210	)
Class C		(1,132,160	)		(3,449,371	)
		(11,225,478	)		(33,021,827	)
Decrease in net assets derived from
capital share transactions		(1,421,612	)		(15,222,447	)
Net Increase (Decrease) in Net Assets		11,178,919			(24,116,429	)
Net Assets:
Beginning of period		230,012,743			254,129,172
End of period1	$	241,191,662		$	230,012,743
1Including undistributed net investment income	$	352,563		$	352,563

See accompanying notes, which are an integral part of the financial statements.

57

Statements of changes in net assets
Delaware Tax-Free Idaho Fund

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,434,968		$	4,747,970
Net realized loss on investments		(328,309	)		(974,509	)
Net change in unrealized appreciation
(depreciation) of investments		5,063,828			(3,975,375	)
Net increase (decrease) in net assets
resulting from operations		7,170,487			(201,914	)
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,897,636	)		(3,594,235	)
Class B		(9,569	)		(47,733	)
Class C		(519,686	)		(1,085,338	)
Net realized gain on investments:
Class A		—			(58,688	)
Class B		—			(1,213	)
Class C		—			(22,123	)
		(2,426,891	)		(4,809,330	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		12,841,878			22,046,186
Class B		—			—
Class C		4,700,743			9,226,467
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,321,166			2,621,700
Class B		7,788			38,486
Class C		441,119			841,625
		19,312,694			34,774,464

58

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(4,283,498	)	$	(26,491,952	)
Class B		(307,226	)		(1,483,183	)
Class C		(3,720,309	)		(8,585,502	)
		(8,311,033	)		(36,560,637	)
Increase (decrease) in net assets derived from
capital share transactions		11,001,661			(1,786,173	)
Net Increase (Decrease) in Net Assets		15,745,257			(6,797,417	)
Net Assets:
Beginning of period		135,530,183			142,327,600
End of period1	$	151,275,440		$	135,530,183
1Including distributions in excess of net investment income	$	(16,644	)	$	(16,644	)

See accompanying notes, which are an integral part of the financial statements.

59

Statements of changes in net assets
Delaware Tax-Free New York Fund

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,027,544		$	1,848,243
Net realized gain (loss) on investments		507,834			(461,636	)
Net change in unrealized appreciation
(depreciation) of investments		2,538,936			(1,450,553	)
Net increase (decrease) in net assets
resulting from operations		4,074,314			(63,946	)
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(773,329	)		(1,400,126	)
Class B		(7,478	)		(17,505	)
Class C		(242,580	)		(425,309	)
		(1,023,387	)		(1,842,940	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		9,424,981			10,714,054
Class B		36,995			—
Class C		2,894,236			3,902,137
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		627,315			1,022,817
Class B		5,389			12,841
Class C		183,808			315,491
		13,172,724			15,967,340

60

	Six Months			Year
	Ended			Ended
	2/29/12			8/31/11
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(2,867,600	)	$	(10,992,437	)
Class B		(21,938	)		(243,301	)
Class C		(381,209	)		(2,976,393	)
		(3,270,747	)		(14,212,131	)
Increase in net assets derived from
capital share transactions		9,901,977			1,755,209
Net Increase (Decrease) in Net Assets		12,952,904			(151,677	)
Net Assets:
Beginning of period		51,762,637			51,914,314
End of period1	$	64,715,541		$	51,762,637
1Including distributions in excess of net investment income	$	(657	)	$	(657	)

See accompanying notes, which are an integral part of the financial statements.

61

Financial highlights
Delaware Tax-Free Arizona Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

62

Six Months Ended							Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.340		$11.760		$11.090		$10.930		$11.070		$11.350
	0.225		0.445		0.447		0.431		0.444		0.465
	0.472		(0.394	)	0.668		0.158		(0.140	)	(0.280	)
	0.697		0.051		1.115		0.589		0.304		0.185
	(0.224	)	(0.444	)	(0.445	)	(0.429	)	(0.444	)	(0.465	)
	(0.003	)	(0.027	)	—		—		—		—
	(0.227	)	(0.471	)	(0.445	)	(0.429	)	(0.444	)	(0.465	)
	$11.810		$11.340		$11.760		$11.090		$10.930		$11.070
	6.21%		0.57%		10.27%		5.64%		2.78%		1.63%
	$99,738		$95,487		$108,214		$113,689		$122,027		$125,636
	0.84%		0.87%		0.86%		0.75%		0.75%		0.76%
	0.92%		0.93%		0.92%		0.91%		0.91%		0.91%
	3.94%		3.98%		3.94%		4.07%		4.02%		4.11%
	3.86%		3.92%		3.88%		3.91%		3.86%		3.96%
	22%		32%		15%		27%		29%		9%

63

Financial highlights
Delaware Tax-Free Arizona Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

64

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.340		$11.760		$11.100		$10.940		$11.070		$11.360
	0.182		0.361		0.362		0.352		0.361		0.380
	0.472		(0.394	)	0.658		0.158		(0.130	)	(0.290	)
	0.654		(0.033	)	1.020		0.510		0.231		0.090
	(0.181	)	(0.360	)	(0.360	)	(0.350	)	(0.361	)	(0.380	)
	(0.003	)	(0.027	)	—		—		—		—
	(0.184	)	(0.387	)	(0.360	)	(0.350	)	(0.361	)	(0.380	)
	$11.810		$11.340		$11.760		$11.100		$10.940		$11.070
	5.82%		(0.18%	)	9.35%		4.85%		2.10%		0.78%
	$625		$757		$2,917		$6,509		$9,620		$12,407
	1.59%		1.62%		1.61%		1.50%		1.50%		1.51%
	1.67%		1.68%		1.67%		1.66%		1.66%		1.66%
	3.19%		3.23%		3.19%		3.32%		3.27%		3.36%
	3.11%		3.17%		3.13%		3.16%		3.11%		3.21%
	22%		32%		15%		27%		29%		9%

65

Financial highlights
Delaware Tax-Free Arizona Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

66

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.370		$11.790		$11.120		$10.960		$11.090		$11.380
	0.183		0.362		0.363		0.352		0.361		0.380
	0.472		(0.394	)	0.668		0.158		(0.130	)	(0.290	)
	0.655		(0.032	)	1.031		0.510		0.231		0.090
	(0.182	)	(0.361	)	(0.361	)	(0.350	)	(0.361	)	(0.380	)
	(0.003	)	(0.027	)	—		—		—		—
	(0.185	)	(0.388	)	(0.361	)	(0.350	)	(0.361	)	(0.380	)
	$11.840		$11.370		$11.790		$11.120		$10.960		$11.090
	5.81%		(0.17%	)	9.43%		4.84%		2.09%		0.77%
	$6,784		$6,801		$7,995		$7,257		$8,806		$7,609
	1.59%		1.62%		1.61%		1.50%		1.50%		1.51%
	1.67%		1.68%		1.67%		1.66%		1.66%		1.66%
	3.19%		3.23%		3.19%		3.32%		3.27%		3.36%
	3.11%		3.17%		3.13%		3.16%		3.11%		3.21%
	22%		32%		15%		27%		29%		9%

67

Financial highlights
Delaware Tax-Free California Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

68

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.170		$11.570		$10.620		$10.800		$11.010		$11.400
	0.245		0.476		0.497		0.448		0.449		0.454
	0.688		(0.401	)	0.950		(0.182	)	(0.210	)	(0.390	)
	0.933		0.075		1.447		0.266		0.239		0.064
	(0.243	)	(0.475	)	(0.497	)	(0.446	)	(0.449	)	(0.454	)
	(0.243	)	(0.475	)	(0.497	)	(0.446	)	(0.449	)	(0.454	)
	$11.860		$11.170		$11.570		$10.620		$10.800		$11.010
	8.44%		0.83%		13.92%		2.74%		2.21%		0.51%
	$72,753		$67,047		$72,902		$61,132		$67,174		$76,537
	0.82%		0.82%		0.82%		0.88%		0.88%		0.89%
	0.98%		0.98%		0.98%		0.97%		0.97%		0.97%
	4.28%		4.36%		4.48%		4.42%		4.11%		3.98%
	4.12%		4.20%		4.32%		4.33%		4.02%		3.90%
	24%		44%		35%		59%		34%		21%

69

Financial highlights
Delaware Tax-Free California Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

70

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.210		$11.610		$10.670		$10.840		$11.060		$11.440
	0.203		0.395		0.416		0.373		0.367		0.368
	0.688		(0.401	)	0.940		(0.172	)	(0.220	)	(0.380	)
	0.891		(0.006	)	1.356		0.201		0.147		(0.012	)
	(0.201	)	(0.394	)	(0.416	)	(0.371	)	(0.367	)	(0.368	)
	(0.201	)	(0.394	)	(0.416	)	(0.371	)	(0.367	)	(0.368	)
	$11.900		$11.210		$11.610		$10.670		$10.840		$11.060
	8.02%		0.09%		12.93%		2.07%		1.34%		(0.15%	)
	$923		$1,307		$3,254		$4,938		$6,589		$9,384
	1.57%		1.57%		1.57%		1.63%		1.63%		1.64%
	1.73%		1.73%		1.73%		1.72%		1.72%		1.72%
	3.53%		3.61%		3.73%		3.67%		3.36%		3.23%
	3.37%		3.45%		3.57%		3.58%		3.27%		3.15%
	24%		44%		35%		59%		34%		21%

71

Financial highlights
Delaware Tax-Free California Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

72

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.180		$11.590		$10.640		$10.810		$11.030		$11.420
	0.203		0.394		0.415		0.373		0.367		0.368
	0.688		(0.411	)	0.950		(0.172	)	(0.220	)	(0.390	)
	0.891		(0.017	)	1.365		0.201		0.147		(0.022	)
	(0.201	)	(0.393	)	(0.415	)	(0.371	)	(0.367	)	(0.368	)
	(0.201	)	(0.393	)	(0.415	)	(0.371	)	(0.367	)	(0.368	)
	$11.870		$11.180		$11.590		$10.640		$10.810		$11.030
	8.03%		(0.01%	)	13.06%		2.07%		1.35%		(0.24%	)
	$16,678		$14,863		$15,526		$13,530		$14,991		$13,453
	1.57%		1.57%		1.57%		1.63%		1.63%		1.64%
	1.73%		1.73%		1.73%		1.72%		1.72%		1.72%
	3.53%		3.61%		3.73%		3.67%		3.36%		3.23%
	3.37%		3.45%		3.57%		3.58%		3.27%		3.15%
	24%		44%		35%		59%		34%		21%

73

Financial highlights
Delaware Tax-Free Colorado Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

74

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.880			$11.260		$10.600		$10.640		$10.730		$11.040
	0.224			0.460		0.455		0.452		0.448		0.464
	0.599			(0.397	)	0.661		(0.041	)	(0.089	)	(0.310	)
	0.823			0.063		1.116		0.411		0.359		0.154
	(0.223	)		(0.443	)	(0.456	)	(0.451	)	(0.449	)	(0.464	)
	(0.223	)		(0.443	)	(0.456	)	(0.451	)	(0.449	)	(0.464	)
	$11.480			$10.880		$11.260		$10.600		$10.640		$10.730
	7.64%			0.71%		10.74%		4.11%		3.38%		1.38%
	$227,338			$216,151		$237,545		$226,393		$234,630		$246,695
	0.84%			0.88%		0.93%		0.90%		0.93%		0.94%
	0.94%			0.95%		0.95%		0.95%		0.95%		0.96%
	4.05%			4.30%		4.16%		4.43%		4.16%		4.22%
	3.95%			4.23%		4.14%		4.38%		4.14%		4.20%
	16%			26%		17%		27%		15%		12%

75

Financial highlights
Delaware Tax-Free Colorado Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

¹ Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

76

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.890			$11.270		$10.610		$10.640		$10.730		$11.050
	0.183			0.380		0.373		0.375		0.367		0.382
	0.599			(0.397	)	0.661		(0.031	)	(0.089	)	(0.320	)
	0.782			(0.017	)	1.034		0.344		0.278		0.062
	(0.182	)		(0.363	)	(0.374	)	(0.374	)	(0.368	)	(0.382	)
	(0.182	)		(0.363	)	(0.374	)	(0.374	)	(0.368	)	(0.382	)
	$11.490			$10.890		$11.270		$10.610		$10.640		$10.730
	7.24%			(0.04%	)	9.91%		3.43%		2.60%		0.53%
	$261			$609		$1,429		$2,693		$3,961		$5,326
	1.59%			1.63%		1.68%		1.65%		1.68%		1.69%
	1.69%			1.70%		1.70%		1.70%		1.70%		1.71%
	3.30%			3.55%		3.41%		3.68%		3.41%		3.47%
	3.20%			3.48%		3.39%		3.63%		3.39%		3.45%
	16%			26%		17%		27%		15%		12%

77

Financial highlights
Delaware Tax-Free Colorado Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

¹ Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

78

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.910			$11.290		$10.630		$10.660		$10.750		$11.070
	0.183			0.381		0.374		0.375		0.367		0.382
	0.609			(0.397	)	0.661		(0.031	)	(0.089	)	(0.320	)
	0.792			(0.016	)	1.035		0.344		0.278		0.062
	(0.182	)		(0.364	)	(0.375	)	(0.374	)	(0.368	)	(0.382	)
	(0.182	)		(0.364	)	(0.375	)	(0.374	)	(0.368	)	(0.382	)
	$11.520			$10.910		$11.290		$10.630		$10.660		$10.750
	7.32%			(0.03%	)	9.90%		3.43%		2.60%		0.53%
	$13,593			$13,253		$15,155		$11,542		$9,836		$10,152
	1.59%			1.63%		1.68%		1.65%		1.68%		1.69%
	1.69%			1.70%		1.70%		1.70%		1.70%		1.71%
	3.30%			3.55%		3.41%		3.68%		3.41%		3.47%
	3.20%			3.48%		3.39%		3.63%		3.39%		3.45%
	16%			26%		17%		27%		15%		12%

79

Financial highlights
Delaware Tax-Free Idaho Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

¹ Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

80

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.730			$12.120		$11.490		$11.260		$11.260		$11.450
	0.217			0.438		0.431		0.436		0.437		0.448
	0.399			(0.385	)	0.633		0.228		—		(0.190	)
	0.616			0.053		1.064		0.664		0.437		0.258
	(0.216	)		(0.436	)	(0.434	)	(0.434	)	(0.437	)	(0.448	)
	—			(0.007	)	—		—		—		—
	(0.216	)		(0.443	)	(0.434	)	(0.434	)	(0.437	)	(0.448	)
	$12.130			$11.730		$12.120		$11.490		$11.260		$11.260
	5.30%			0.56%		9.44%		6.12%		3.93%		2.27%
	$112,232			$98,821		$104,287		$86,445		$72,237		$69,931
	0.88%			0.90%		0.94%		0.88%		0.85%		0.86%
	0.95%			0.96%		0.96%		0.96%		0.96%		0.98%
	3.67%			3.78%		3.66%		3.94%		3.87%		3.92%
	3.60%			3.72%		3.64%		3.86%		3.76%		3.80%
	11%			32%		7%		10%		11%		8%

81

Financial highlights
Delaware Tax-Free Idaho Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

¹ Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

82

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.710			$12.100		$11.470		$11.240		$11.240		$11.430
	0.173			0.350		0.343		0.353		0.353		0.363
	0.389			(0.385	)	0.633		0.228		—		(0.190	)
	0.562			(0.035	)	0.976		0.581		0.353		0.173
	(0.172	)		(0.348	)	(0.346	)	(0.351	)	(0.353	)	(0.363	)
	—			(0.007	)	—		—		—		—
	(0.172	)		(0.355	)	(0.346	)	(0.351	)	(0.353	)	(0.363	)
	$12.100			$11.710		$12.100		$11.470		$11.240		$11.240
	4.83%			(0.19%	)	8.64%		5.34%		3.17%		1.51%
	$636			$912		$2,450		$3,359		$5,123		$6,003
	1.63%			1.65%		1.69%		1.63%		1.60%		1.61%
	1.70%			1.71%		1.71%		1.71%		1.71%		1.73%
	2.92%			3.03%		2.91%		3.19%		3.12%		3.17%
	2.85%			2.97%		2.89%		3.11%		3.01%		3.05%
	11%			32%		7%		10%		11%		8%

83

Financial highlights
Delaware Tax-Free Idaho Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

¹ Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

84

Six Months Ended			Year Ended
2/29/121				8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$11.720			$12.110		$11.480		$11.250		$11.250		$11.440
	0.173			0.351		0.342		0.353		0.352		0.363
	0.399			(0.385	)	0.633		0.228		—		(0.190	)
	0.572			(0.034	)	0.975		0.581		0.352		0.173
	(0.172	)		(0.349	)	(0.345	)	(0.351	)	(0.352	)	(0.363	)
	—			(0.007	)	—		—		—		—
	(0.172	)		(0.356	)	(0.345	)	(0.351	)	(0.352	)	(0.363	)
	$12.120			$11.720		$12.110		$11.480		$11.250		$11.250
	4.91%			(0.20%	)	8.63%		5.34%		3.16%		1.51%
	$38,407			$35,797		$35,591		$19,176		$11,490		$11,535
	1.63%			1.65%		1.69%		1.63%		1.60%		1.61%
	1.70%			1.71%		1.71%		1.71%		1.71%		1.73%
	2.92%			3.03%		2.91%		3.19%		3.12%		3.17%
	2.85%			2.97%		2.89%		3.11%		3.01%		3.05%
	11%			32%		7%		10%		11%		8%

85

Financial highlights
Delaware Tax-Free New York Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets
       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets
       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

86

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.800		$11.150		$10.450		$10.300		$10.300		$10.550
	0.211		0.406		0.429		0.409		0.411		0.435
	0.579		(0.351	)	0.700		0.148		—		(0.250	)
	0.790		0.055		1.129		0.557		0.411		0.185
	(0.210	)	(0.405	)	(0.429	)	(0.407	)	(0.411	)	(0.435	)
	(0.210	)	(0.405	)	(0.429	)	(0.407	)	(0.411	)	(0.435	)
	$11.380		$10.800		$11.150		$10.450		$10.300		$10.300
	7.39%		0.63%		11.02%		5.65%		4.04%		1.75%
	$46,403		$37,051		$37,716		$22,780		$15,340		$14,817
	0.80%		0.80%		0.80%		0.85%		0.85%		0.79%
	1.02%		1.05%		1.07%		1.10%		1.09%		1.10%
	3.83%		3.82%		3.94%		4.10%		3.97%		4.13%
	3.61%		3.57%		3.67%		3.85%		3.73%		3.82%
	29%		54%		15%		36%		28%		14%

87

Financial highlights
Delaware Tax-Free New York Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets
       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets
       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

88

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.780		$11.120		$10.420		$10.270		$10.280		$10.530
	0.170		0.326		0.347		0.334		0.333		0.357
	0.579		(0.341	)	0.700		0.148		(0.010	)	(0.250	)
	0.749		(0.015	)	1.047		0.482		0.323		0.107
	(0.169	)	(0.325	)	(0.347	)	(0.332	)	(0.333	)	(0.357	)
	(0.169	)	(0.325	)	(0.347	)	(0.332	)	(0.333	)	(0.357	)
	$11.360		$10.780		$11.120		$10.420		$10.270		$10.280
	7.00%		(0.04%	)	10.21%		4.88%		3.17%		0.99%
	$523		$477		$736		$1,018		$1,549		$2,164
	1.55%		1.55%		1.55%		1.60%		1.60%		1.54%
	1.77%		1.80%		1.82%		1.85%		1.84%		1.85%
	3.08%		3.07%		3.19%		3.35%		3.22%		3.38%
	2.86%		2.82%		2.92%		3.10%		2.98%		3.07%
	29%		54%		15%		36%		28%		14%

89

Financial highlights
Delaware Tax-Free New York Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return²

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets
       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets
       prior to fees waived and expense paid indirectly

Portfolio turnover

1 Ratios have been annualized and total return and portfolio turnover have 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 during all of the periods shown reflects a waiver by the manager. Performance would have been lower had the waiver not been in effect.

See accompanying notes, which are an integral part of the financial statements.

90

Six Months Ended			Year Ended
2/29/121			8/31/11		8/31/10		8/31/09		8/31/08		8/31/07
(Unaudited)
	$10.780		$11.120		$10.420		$10.270		$10.280		$10.530
	0.170		0.326		0.346		0.333		0.333		0.357
	0.579		(0.341	)	0.700		0.148		(0.010	)	(0.250	)
	0.749		(0.015	)	1.046		0.481		0.323		0.107
	(0.169	)	(0.325	)	(0.346	)	(0.331	)	(0.333	)	(0.357	)
	(0.169	)	(0.325	)	(0.346	)	(0.331	)	(0.333	)	(0.357	)
	$11.360		$10.780		$11.120		$10.420		$10.270		$10.280
	7.00%		(0.04%	)	10.20%		4.88%		3.17%		0.99%
	$17,790		$14,235		$13,462		$5,651		$2,049		$2,131
	1.55%		1.55%		1.55%		1.60%		1.60%		1.54%
	1.77%		1.80%		1.82%		1.85%		1.84%		1.85%
	3.08%		3.07%		3.19%		3.35%		3.22%		3.38%
	2.86%		2.82%		2.92%		3.10%		2.98%		3.07%
	29%		54%		15%		36%		28%		14%

91

Notes to financial statements
Delaware Investments® state tax-free funds	February 29, 2012 (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 one series: Delaware Tax-Free Arizona 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, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund (each, a Fund or, collectively, the Funds). The above Trusts are open-end investment companies. The Funds are considered 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 maximum 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 (CDSC) 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 may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were 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 CDSC of 1%, if redeemed during the first twelve months.

The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and from personal income tax in its respective state 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 (U.S. GAAP) and are consistently followed by the Funds.

Security Valuation — Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Open-end investment companies are valued at their published net asset value. Short-term debt securities are valued at market value. Generally, 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 (each, a Board or, collectively, the Boards). 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 or suspension of trading in a security.

92

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate 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 are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (August 31, 2008–August 31, 2011), and has concluded that no provision for federal income tax is required in the Funds’ financial statements.

Class Accounting — Investment income and common expenses are allocated to the various 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. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent 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 and the differences could be material.

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 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 the dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended February 29, 2012.

93

Notes to financial statements
Delaware Investments^® state tax-free funds

1. Significant Accounting Policies (continued)

The Funds receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the six months ended February 29, 2012, the Funds earned the following under this agreement:

Delaware Tax-Free Arizona Fund	Delaware Tax-Free California Fund	Delaware Tax-Free Colorado Fund	Delaware Tax-Free Idaho Fund	Delaware Tax-Free New York Fund
$13	$9	$27	$16	$6

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, which is calculated based on each Fund’s average daily net assets as follows:

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

DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse the Funds to the extent necessary to prevent total annual fund operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding the following percentages of each Fund’s average daily net assets through December 28, 2012. These waivers and reimbursements may only be terminated by agreement of the Manager and the Funds.

	Delaware Tax-Free Arizona Fund	Delaware Tax-Free California Fund	Delaware Tax-Free Colorado Fund	Delaware Tax-Free Idaho Fund	Delaware Tax-Free New York Fund
Operating expense
limitation as a percentage
of average daily net assets
(per annum)	0.59%	0.57%	0.59%	0.63%	0.55%

94

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments^® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the six months ended February 29, 2012, each Fund was charged for these services as follows:

Delaware Tax-Free Arizona Fund	Delaware Tax-Free California Fund	Delaware Tax-Free Colorado Fund	Delaware Tax-Free Idaho Fund	Delaware Tax-Free New York Fund
$2,573	$2,119	$5,745	$3,468	$1,403

DSC also provides dividend disbursing and transfer agency services. The Funds pay DSC a monthly asset-based fee for these 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 Class C shares.

At February 29, 2012, each Fund had liabilities payable to affiliates as follows:

	Delaware Tax-Free Arizona Fund			Delaware Tax-Free California Fund			Delaware Tax-Free Colorado Fund			Delaware Tax-Free Idaho Fund			Delaware Tax-Free New York Fund
Investment management
fees payable to DMC		$	37,253		$	28,253		$	87,652		$	57,247		$	16,058
Dividend disbursing,
transfer agent and fund
accounting oversight
fees and other expenses
payable to DSC			2,384			2,004			5,339			3,313			1,405
Distribution fees
payable to DDLP			25,690			28,239			55,726			52,170			23,001
Other expenses payable to
DMC and affiliates*			2,929			3,468			5,536			3,969			3,695

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

95

Notes to financial statements
Delaware Investments^® state tax-free funds

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

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 29, 2012, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

Delaware Tax-Free Arizona Fund	Delaware Tax-Free California Fund	Delaware Tax-Free Colorado Fund	Delaware Tax-Free Idaho Fund	Delaware Tax-Free New York Fund
$1,491	$1,228	$3,335	$2,010	$808

For the six months ended February 29, 2012, DDLP earned commissions on sales of Class A shares for each Fund as follows:

Delaware Tax-Free Arizona Fund	Delaware Tax-Free California Fund	Delaware Tax-Free Colorado Fund	Delaware Tax-Free Idaho Fund	Delaware Tax-Free New York Fund
$3,002	$3,741	$11,310	$23,690	$9,181

For the six months ended February 29, 2012, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A, 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 California Fund			Delaware Tax-Free Idaho Fund			Delaware Tax-Free New York Fund
Class A		$	2,717		$	31		$	0
Class B			26			0			0
Class C			0			2,794			240

Trustees’ fees include expenses accrued by the Funds for each Trustee’s retainer and meeting fees. Certain officers of DMC, DSC and DDLP are officers and/or Trustees of the Trusts. These officers and Trustees are paid no compensation by the Funds.

3. Investments

For the six months ended February 29, 2012, the Funds made purchases and sales of investment securities other than short-term investments as follows:

	Delaware Tax-Free Arizona Fund		Delaware Tax-Free California Fund		Delaware Tax-Free Colorado Fund		Delaware Tax-Free Idaho Fund		Delaware Tax-Free New York Fund
Purchases		$24,389,630		$22,658,894		$37,307,522		$27,290,596		$25,080,225
Sales		22,305,504		20,812,162		38,979,040		15,451,206		16,144,124

96

At February 29, 2012, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until the fiscal year end. At February 29, 2012, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

	Delaware			Delaware			Delaware			Delaware		Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free		Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund		New York Fund
Cost of
investments	$	100,568,610		$	82,971,104		$	224,142,822		$	141,575,311	$	58,504,816
Aggregate
unrealized
appreciation	$	7,396,691		$	6,661,792		$	17,254,090		$	10,854,968	$	4,786,888
Aggregate
unrealized
depreciation		(204,543	)		(583,139	)		(1,129,350	)		—		(102,099	)
Net unrealized
appreciation	$	7,192,148		$	6,078,653		$	16,124,740		$	10,854,968	$	4,684,789

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1	–	inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)
Level 2	–	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)

97

Notes to financial statements
Delaware Investments^® state tax-free funds

3. Investments (continued)

Level 3   –  inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of February 29, 2012:

	Delaware Tax-Free Arizona Fund
			Level 2
Municipal Bonds			$	107,760,758
	Delaware Tax-Free California Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	88,940,807	$	88,940,807
Short-Term Investment		108,950		—		108,950
Total	$	108,950	$	88,940,807	$	89,049,757
	Delaware Tax-Free Colorado Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	238,659,092	$	238,659,092
Short-Term Investments		1,408,470		200,000		1,608,470
Total	$	1,408,470	$	238,859,092	$	240,267,562
	Delaware Tax-Free Idaho Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	150,142,008	$	150,142,008
Short-Term Investments		1,768,271		520,000		2,288,271
Total	$	1,768,271	$	150,662,008	$	152,430,279
	Delaware Tax-Free New York Fund
			Level 2
Municipal Bonds			$	62,689,605
Short-Term Investment				500,000
Total			$	63,189,605

There were no unobservable inputs used to value investments at the beginning or end of the period.

During the six months ended February 29, 2012, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Funds. Each Fund’s policy is to recognize transfers between levels at the end of the reporting period.

98

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. GAAP. Additionally, distributions from 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 29, 2012 and the year ended August 31, 2011 was as follows:

	Delaware		Delaware	Delaware	Delaware		Delaware
	Tax-Free		Tax-Free	Tax-Free	Tax-Free		Tax-Free
	Arizona Fund		California Fund	Colorado Fund	Idaho Fund		New York Fund
Six Months Ended 2/29/12*
Tax-exempt income	$	2,010,660	$1,767,010	$4,642,752	$	2,426,865	$1,022,535
Ordinary income		4	—	—		26	852
Long-term capital gains		27,069	—	—		—	—
Total	$	2,037,733	$1,767,010	$4,642,752	$	2,426,891	$1,023,387
Year Ended 8/31/11
Tax-exempt income	$	4,112,014	$3,499,954	$9,447,544	$	4,647,399	$1,832,508
Ordinary income		101,505	77,870	123,382		137,722	16,404
Long-term capital gains		273,094	—	—		24,209	—
Total	$	4,486,613	$3,577,824	$9,570,926	$	4,809,330	$1,842,940

*Tax information for the six months ended February 29, 2012 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

99

Notes to financial statements
Delaware Investments^® state tax-free 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 29, 2012, the estimated components of net assets on a tax basis were as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Shares of beneficial
interest	$	99,701,505		$	84,919,181		$	226,932,360		$	141,792,798		$	60,026,860
Undistributed
long-term capital
gains		227,616			—			—			—			4,549
Distributions
payable		(79,091	)		(70,448	)		(174,112	)		(98,144	)		(42,808	)
Undistributed
tax-exempt
income		104,399			89,228			526,675			81,500			42,151
Realized gains
(losses)
9/1/11–2/29/12		—			(153,536	)		594,701			(1,355,682	)		28,006
Capital loss
carryforwards as
of 8/31/11		—			(509,310	)		(2,812,702	)		—			(28,006	)
Unrealized
appreciation
(depreciation)
of investments		7,192,148			6,078,653			16,124,740			10,854,968			4,684,789
Net assets	$	107,146,577		$	90,353,768		$	241,191,662		$	151,275,440		$	64,715,541

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

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 debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 29, 2012, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

100

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Undistributed
(distributions in excess of)
net investment income	$	(11,506	)	$	(5,796	)	$	(10,620	)	$	(8,077	)	$	(4,157	)
Accumulated net realized
gain (loss)		11,506			5,796			10,620			8,077			4,157

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, 2011 will expire as follows:

	Delaware			Delaware			Delaware
Year of	Tax-Free			Tax-Free			Tax-Free
Expiration	California Fund			Colorado Fund			New York Fund
2012		$	—		$	507,309		$	—
2013			—			57,695			—
2014			—			2,203,520			—
2016			10,217			44,178			14,929
2018			—			—			8,253
2019			499,093			—			4,824
Total		$	509,310		$	2,812,702		$	28,006

For the six months ended February 29, 2012, the Funds had capital gains (losses) which may reduce (increase) capital loss carryforwards.

Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free
California Fund	Colorado Fund	New York Fund
$(153,536)	$594,701	$28,006

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

101

Notes to financial statements
Delaware Investments^® state tax-free funds

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/29/12		8/31/11		2/29/12		8/31/11		2/29/12		8/31/11
Shares sold:
Class A	290,765		866,329		457,849		1,260,131		513,203		905,561
Class B	—		40		—		41		—		27
Class C	19,810		71,073		146,737		355,660		51,804		162,405
Shares issued upon reinvestment of dividends and distributions:
Class A	116,746		199,470		82,756		164,198		295,648		560,364
Class B	812		2,852		1,079		4,880		362		1,985
Class C	7,672		13,627		19,087		35,603		16,208		32,471
	435,805		1,153,391		707,508		1,820,513		877,225		1,662,813
Shares repurchased:
Class A	(383,223	)	(1,847,336	)	(408,446	)	(1,722,598	)	(872,633	)	(2,700,759	)
Class B	(14,624	)	(184,115	)	(40,138	)	(168,581	)	(33,598	)	(72,932	)
Class C	(52,769	)	(164,691	)	(90,204	)	(402,444	)	(101,856	)	(322,740	)
	(450,616	)	(2,196,142	)	(538,788	)	(2,293,623	)	(1,008,087	)	(3,096,431	)
Net increase
(decrease)	(14,811	)	(1,042,751	)	168,720		(473,110	)	(130,862	)	(1,433,618	)

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
	Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended
	2/29/12		8/31/11		2/29/12		8/31/11
Shares sold:
Class A	1,079,323		1,900,076		848,509		1,003,049
Class B	—		—		3,283		—
Class C	393,642		788,345		263,296		364,898
Shares issued upon reinvestment of dividends and distributions:
Class A	110,991		226,583		56,720		96,410
Class B	656		3,332		489		1,212
Class C	37,089		72,898		16,659		29,809
	1,621,701		2,991,234		1,188,956		1,495,378
Shares repurchased:
Class A	(360,496	)	(2,303,200	)	(259,425	)	(1,052,715	)
Class B	(26,071	)	(127,823	)	(1,997	)	(23,226	)
Class C	(315,411	)	(744,786	)	(34,536	)	(284,284	)
	(701,978	)	(3,175,809	)	(295,958	)	(1,360,225	)
Net increase (decrease)	919,723		(184,575	)	892,998		135,153

102

For the six months ended February 29, 2012 and the year ended August 31, 2011, 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 page 102 and the statements of changes in net assets.

	Six Months Ended				Year Ended
	2/29/12				8/31/11
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Arizona Fund	1,729	1,734	$	19,871	114,565	114,667	$	1,289,672
Delaware Tax-Free
California Fund	20,157	20,286		228,855	111,060	111,540		1,237,217
Delaware Tax-Free
Colorado Fund	13,799	13,838		152,836	53,647	53,698		571,670
Delaware Tax-Free
Idaho Fund	10,526	10,532		124,277	92,109	91,931		1,068,723
Delaware Tax-Free
New York Fund	1,327	1,327		14,601	12,407	12,373		130,210

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments^® Family of Funds (Participants), was a participant in a $100,000,000 revolving line of credit to be used for temporary or emergency purposes as an additional source of liquidity to fund redemptions of investor shares. Under the agreement, the Participants were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The line of credit under the agreement expired on November 15, 2011.

On November 15, 2011, the Funds, along with the other Participants, entered into an amendment to the agreement for a $125,000,000 revolving line of credit. The agreement is to be used as described above and operates in substantially the same manner as the original agreement. The agreement expires on November 13, 2012. The Funds had no amounts outstanding as of February 29, 2012 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 values of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, as applicable, 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. A real or perceived decline in creditworthiness of a bond insurer can have an adverse

103

Notes to financial statements
Delaware Investments^® state tax-free funds

8. Credit and Market Risk (continued)

impact on the value of insured bonds held in the Funds. At February 29, 2012, the percentages of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified in the statements of net assets.

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
29.84%	14.69%	23.17%	27.72%	4.38%

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 Rating 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 net 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 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 securities. Securities eligible for resale pursuant to Rule 144A, which are determined

104

to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. As of February 29, 2012, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

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 Events

Management has determined that no material events or transactions occurred subsequent to February 29, 2012 that would require recognition or disclosure in the Funds’ financial statements.

105

Other Fund information
(Unaudited)
Delaware Investments^® state tax-free funds

Change in Independent Registered Public Accounting Firm

Due to independence matters under the Securities and Exchange Commission’s auditor independence rules relating to the January 4, 2010 acquisition of Delaware Investments (including DMC, DDLP and DSC) by Macquarie Group, Ernst & Young LLP (E&Y) has resigned as the independent registered public accounting firm for Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds (the Trusts) effective May 20, 2010. At a meeting held on May 20, 2010, the Board of Trustees of the Trusts, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLP (PwC) to serve as the independent registered public accounting firm for the Trusts for the fiscal year ending August 31, 2010. During the fiscal years ended August 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trusts did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trusts and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trusts nor anyone on their behalf has consulted with PwC at any time prior to their selection with respect to the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Trusts’ financial statements.

106

About the organization

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 Drexel University Philadelphia, 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 Frances A. Sevilla-Sacasa Executive Advisor to Dean, University of Miami School of Business Administration Coral Gables, FL	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	Daniel V. Geatens Vice President and Treasurer 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	Richard Salus Senior Vice President and Chief Financial Officer Delaware Investments Family of Funds Philadelphia, PA

This semiannual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund shareholders, but it may be used with prospective investors when preceded or accompanied by the Delaware Investments Fund fact sheet for the most recently completed calendar quarter. These documents are available at 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 (SEC) 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; and (ii) on the SEC’s website at www.sec.gov. In addition, a description of the policies and procedures that each Fund uses to determine how to vote proxies (if any) relating to portfolio securities and each Fund’s Schedule of Investments are available without charge on the Funds’ website at www.delawareinvestments.com. Each Fund’s Forms N-Q may be reviewed and copied at the SEC’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 the Funds’ website at www.delawareinvestments.com; and (ii) on the SEC’s website at www.sec.gov.

108

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. Investments

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

(b) Divestment of securities in accordance with Section 13(c) of the Investment Company Act of 1940.

Not applicable.

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.

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by the report to stockholders included herein (i.e., the registrant’s second fiscal quarter) that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 2, 2012

     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.

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 2, 2012
/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	May 2, 2012