Exhibit 99.1        

Newark, DE, August 7, 2006 – (ARTNA) Artesian Resources Corporation (Artesian) today announced that basic and diluted net income per common share for the quarter ended June 30, 2006 were $0.22 for both as compared to $0.20 for the quarter ended June 30, 2005. Revenues for the quarter were $12.0 million, up 4.4% from $11.5 million in 2005. Net income was $1.4 million, compared to $1.2 million last year, a 13.0% increase.

Basic and diluted net income per common share for the six months ended June 30, 2006 were $0.39 and $0.38, respectively, as compared to $0.36 and $0.35 for the comparable period in 2005. Revenues for the six-month period were $22.5 million, up 5.1% from $21.4 million in 2005. Net income available to common stockholders was $2.4 million, compared to $2.2 million last year, a 9.1% increase.

The increase in net income for both the three months and the six months ended June 30, 2006 was primarily due to improved operating income margins from our non-utility subsidiaries compared to the same period a year ago. Although non-utility operating revenues for the six months ended June 30, 2006 decreased $282,000 compared to the same period a year ago as a result of decreased wastewater design and construction activity, non-utility operating expenses decreased $540,000, resulting in a $258,000 improvement in the gross operating margin.

Utility operating revenues increased $1.4 million, or 6.8% for the six months ended June 30, 2006 primarily as the result of a 6.7%, or $1.3 million increase in water sales revenues compared to the same period last year. A portion of the increase in water sales revenue reflects a 2.8% increase in the number of customers served and slightly higher volumes of water delivered to customers compared to the same period last year. In addition, we recorded $154,000 in water sales revenues in the first quarter of 2006 associated with a remanded issue in our April 2004 rate filing. These revenues were collected in rates from September 2004 through March 2006 and held in reserve until the Delaware Public Service Commission reached a final decision on April 11, 2006. The remainder of the increase is primarily due to additional revenues of $258,000 generated by our Distribution System Improvement Charge in the first six months of 2006 compared to the first six months of 2005. This charge permits more timely recovery of investments made by Artesian related to specific types of distribution system improvements assuring reliable water service.

Utility operating expenses, excluding depreciation and taxes, were $12.0 million for the six months ended June 30, 2006, compared to $10.8 million for the same period in 2005 an increase of 10.7%. The increase in utility operating expense is comprised of:

• Payroll and employee benefit expense increased $662,000, compared to the same period in 2005, primarily due to a decrease in the capitalization of payroll and benefits associated with our internal staff efforts in 2005 to convert our customer information system, which was placed into service on January 2, 2006. Additional staffing and wage increases also contributed to the increase.

• Administration expense increased $266,000, primarily as a result of additional legal and consultant expenses related to water utility rate matters.

• Purchased power expense, purchased water costs and water treatment expense increased $213,000. Purchased power increased $107,000, due primarily to an increase in electric rates. Purchased water costs increased $48,000, primarily as a result of increased rates charged under minimum take agreements. Water treatment expense increased $58,000, as a result of increases in the cost of chemicals used in the water treatment process.

Artesian Resources Corporation, through our wholly owned subsidiary Artesian Water Company, is the largest investor owned regulated public water utility in the State of Delaware and has been providing water within the state since 1905. About $174 million has been invested in Artesian’s utility plant over the last 10 years to provide sufficient treated supply, new water mains and additional storage capacity to meet peak demands and provide fire protection for Delaware residents. We distribute and sell water to residential, commercial, industrial, governmental, municipal and utility customers throughout the state. As of June 30, 2006, Artesian was serving approximately 73,000-metered customers, providing water service to about 242,000 residents (including contract services), approximately 29% of Delaware’s total population. Last year, Artesian distributed 7.5 billion gallons of water. Artesian serves its customers through 107 operating wells. Artesian’s water supply is treated at 50 different locations statewide. Artesian owns and maintains approximately 1,000 miles of water main throughout the state.

Contact: Nicki Taylor
Investor Relations
(302) 453-6943 ntaylor@artesianwater.com

Artesian Resources Corporation
Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)

			(Unaudited)
	Three months ended June 30, 2006		Three months ended June 30, 2005			Six months ended June 30, 2006		Six months ended June 30, 2005
Operating Revenues
Utility Operating Revenue		11,296		10,636			21,537		20,156
Non-Utility Operating Revenue		717		866			966		1,248
	$	12,013	$	11,502		$	22,503	$	21,404
Operating Expenses
Utility Operating Expenses		6,167		5,431			11,969		10,808
Non-Utility Operating Expenses		421		888			604		1,144
Depreciation and Amortization		1,021		1,080			2,185		2,122
State & Federal Taxes		874		805			1,528		1,445
Property and Other Taxes		640		591			1,275		1,172
		9,123		8,795			17,561		16,691
Operating Income		2,890		2,707			4,942		4,713
Other Income, net		53		41			498		470
Income Before Interest Charges		2,943		2,748			5,440		5,183
Interest Charges		1,583		1,544			3,085		3,025
Net Income Applicable to Common Stock	$	1,360	$	1,204		$	2,355	$	2,158
Weighted Average Common Shares Outstanding - Basic		6,049		5,963	*		6,037		5,960	*
Net Income per Common Share - Basic	$	0.22	$	0.20	*	$	0.39	$	0.36	*
Weighted Average Common Shares Outstanding - Diluted		6,238		6,160	*		6,228		6,160	*
Net Income per Common Share - Diluted	$	0.22	$	0.20	*	$	0.38	$	0.35	*

* Shares outstanding and per share amounts restated to reflect a three for two common stock split effective May 30, 2006.

Artesian Resources Corporation
Condensed Consolidated Balance Sheet
(In thousands)
(Unaudited)

	June 30, 2006		December 31, 2005
ASSETS
Utility Plant, at original cost less
accumulated depreciation	$	242,092	$	227,566
Current Assets		11,198		10,406
Regulatory and Other Assets		6,003		5,882
	$	259,293	$	243,854
CAPITALIZATION AND LIABILITIES
Stockholders' Equity	$	59,008	$	57,813
Long Term Debt, Net of Current Portion		92,229		92,379
Current Liabilities		16,973		12,238
Advances for Construction		25,014		24,404
Contributions in Aid of Construction		44,546		37,350
Other Liabilities		21,523		19,670
	$	259,293	$	243,854