N-CSR

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:	811-07742
Exact name of registrant as specified in charter:	Voyageur Mutual Funds
Address of principal executive offices:	2005 Market Street
	Philadelphia, PA 19103
Name and address of agent for service:	David F. Connor, Esq.
	2005 Market Street
	Philadelphia, PA 19103
Registrant’s telephone number, including area code:	(800) 523-1918
Date of fiscal year end:	August 31
Date of reporting period:	February 28, 2010

Item 1. Reports to Stockholders

Semiannual report

Delaware Tax-Free Minnesota Fund

Delaware Tax-Free Minnesota Intermediate Fund

Delaware Minnesota High-Yield Municipal

Bond Fund

February 28, 2010

Fixed income mutual funds

This semiannual report is for the information of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund.

The figures in the semiannual report for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund represent past results, which are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund prospectus contains this and other important information about the Fund. Prospectuses for all open-end funds in the Delaware Investments® Family of Funds are available from your financial advisor, online at www.delawareinvestments.com, or by phone at 800 523-1918. Please read the prospectus carefully before you invest or send money.

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 Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond 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

On January 4, 2010, Delaware Management Holdings, Inc., and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see your Funds’ prospectus and any supplements thereto for more complete information.

Investments in Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond 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 subsidiaries or related companies, 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
Sector allocations and credit quality breakdowns	4
Statements of net assets	7
Statements of operations	36
Statements of changes in net assets	38
Financial highlights	44
Notes to financial statements	62
Other Fund information	75
About the organization	86

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2010, and are 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.

© 2010 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the period September 1, 2009 to February 28, 2010

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2009 to February 28, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

The second section of the tables shown, “Hypothetical 5% return,” provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds 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 Minnesota Fund
Expense analysis of an investment of $1,000

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,041.10	0.93%	$4.71
Class B	1,000.00	1,037.20	1.68%	8.49
Class C	1,000.00	1,037.10	1.68%	8.49
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.18	0.93%	$4.66
Class B	1,000.00	1,016.46	1.68%	8.40
Class C	1,000.00	1,016.46	1.68%	8.40

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

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,033.80	0.79%	$3.98
Class B	1,000.00	1,029.40	1.64%	8.25
Class C	1,000.00	1,029.40	1.64%	8.25
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.88	0.79%	$3.96
Class B	1,000.00	1,016.66	1.64%	8.20
Class C	1,000.00	1,016.66	1.64%	8.20

2

Delaware Minnesota High-Yield Municipal Bond Fund
Expense analysis of an investment of $1,000

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,063.30	0.91%	$4.66
Class B	1,000.00	1,060.40	1.66%	8.48
Class C	1,000.00	1,059.30	1.66%	8.48
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.28	0.91%	$4.56
Class B	1,000.00	1,016.56	1.66%	8.30
Class C	1,000.00	1,016.56	1.66%	8.30

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

3

Sector allocations and credit quality breakdowns
Delaware Tax-Free Minnesota Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	100.51	%
Corporate-Backed Revenue Bonds	4.02	%
Education Revenue Bonds	6.06	%
Electric Revenue Bonds	5.18	%
Escrowed to Maturity Bonds	8.91	%
Health Care Revenue Bonds	21.95	%
Housing Revenue Bonds	7.15	%
Lease Revenue Bonds	3.42	%
Local General Obligation Bonds	17.56	%
Pre-Refunded Bonds	17.54	%
Special Tax Revenue Bonds	3.73	%
State General Obligation Bonds	3.49	%
Transportation Revenue Bonds	1.13	%
Water & Sewer Revenue Bonds	0.37	%
Total Value of Securities	100.51	%
Liabilities Net of Receivables and Other Assets	(0.51	%)
Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	27.65	%
AA	27.31	%
A	23.72	%
BBB	11.16	%
BB	2.52	%
Not Rated	7.64	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

4

Delaware Tax-Free Minnesota Intermediate Fund As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	101.47	%
Corporate-Backed Revenue Bonds	1.65	%
Education Revenue Bonds	9.90	%
Electric Revenue Bonds	7.56	%
Escrowed to Maturity Bonds	1.72	%
Health Care Revenue Bonds	17.24	%
Housing Revenue Bonds	4.15	%
Lease Revenue Bonds	1.94	%
Local General Obligation Bonds	26.28	%
Pre-Refunded Bonds	8.49	%
Special Tax Revenue Bonds	11.05	%
State General Obligation Bonds	5.80	%
Transportation Revenue Bonds	2.41	%
Water & Sewer Revenue Bonds	3.28	%
Short-Term Investment	0.31	%
Total Value of Securities	101.78	%
Liabilities Net of Receivables and Other Assets	(1.78	%)
Total Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	31.97	%
AA	32.62	%
A	21.87	%
BBB	7.20	%
BB	1.17	%
Not Rated	5.17	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

5

Sector allocations and credit quality breakdowns
Delaware Minnesota High-Yield Municipal Bond Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.30	%
Corporate-Backed Revenue Bonds	3.35	%
Education Revenue Bonds	9.43	%
Electric Revenue Bonds	6.04	%
Health Care Revenue Bonds	28.55	%
Housing Revenue Bonds	12.58	%
Lease Revenue Bonds	0.90	%
Local General Obligation Bonds	11.44	%
Pre-Refunded Bonds	8.69	%
Special Tax Revenue Bonds	7.76	%
State General Obligation Bonds	4.01	%
Transportation Revenue Bond	1.39	%
Water & Sewer Revenue Bonds	4.16	%
Short-Term Investments	0.55	%
Total Value of Securities	98.85	%
Receivables and Other Assets Net of Liabilities	1.15	%
Total Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	15.94	%
AA	21.19	%
A	24.34	%
BBB	17.61	%
BB	3.07	%
Not Rated	17.85	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

6

Statements of net assets
Delaware Tax-Free Minnesota Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 100.51%
Corporate-Backed Revenue Bonds – 4.02%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26		$	6,500,000	$	5,983,965
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21			8,000,000		7,743,680
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27			7,265,000		6,733,057
	Seaway Port Authority of Duluth Industrial Development
	Dock & Wharf Revenues Refunding (Cargill Project)
	Series E 6.125% 11/1/14			4,500,000		4,520,340
						24,981,042
Education Revenue Bonds – 6.06%
	Minnesota Colleges & Universities Revenue Fund Series A
	5.00% 10/1/22 (AGM)			5,135,000		5,413,985
	5.00% 10/1/28			8,900,000		9,666,556
	5.00% 10/1/29 (NATL-RE)			5,665,000		5,971,079
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/20			1,250,000		1,270,638
	Series 6-J1 5.00% 5/1/36			2,225,000		2,112,816
	(Bethel University) Refunding Series 6-R 5.50% 5/1/37			2,500,000		2,365,175
	(Carleton College) Series 6-T 5.00% 1/1/28			1,000,000		1,061,200
	(University of St. Thomas)
	Series 6-X 5.25% 4/1/39			5,000,000		5,100,600
	Series 7-A 5.00% 10/1/39			2,000,000		2,016,600
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23			2,000,000		2,059,520
	University Minnesota Series C 4.00% 2/1/16			515,000		569,441
						37,607,610
Electric Revenue Bonds – 5.18%
	Chaska Electric Revenue Refunding (Generating Facilities)
	Series A 5.00% 10/1/30			3,000,000		3,067,410
	Minnesota Municipal Power Agency Electric Revenue
	5.00% 10/1/35			3,000,000		3,033,420
	Series A
	5.00% 10/1/34			6,250,000		6,329,000
	5.125% 10/1/29			3,000,000		3,074,460

7

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Northern Municipal Power Agency Electric System
	Revenue Refunding Series B 4.75% 1/1/20 (AMBAC)		$	2,500,000	$	2,507,000
	Puerto Rico Electric Power Authority Power Revenue
	Refunding Series GG 4.75% 7/1/21 (AGM)			1,000,000		1,006,880
	Series TT 5.00% 7/1/37			2,500,000		2,388,700
	Series WW 5.50% 7/1/38			4,800,000		4,860,480
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A
	5.25% 1/1/15 (AMBAC)			2,900,000		3,304,463
	^Capital Appreciation 4.44% 1/1/25 (NATL-RE)			5,000,000		2,578,650
						32,150,463
Escrowed to Maturity Bonds – 8.91%
	Dakota-Washington Counties Housing & Redevelopment
	Authority Single Family Residential Mortgage Revenue
	8.15% 9/1/16 (GNMA) (NATL-RE) (AMT)			405,000		540,238
	(Anoka County) 8.45% 9/1/19 (GNMA) (AMT)			9,000,000		12,744,540
	(Bloomington Mortgage) Refunding Series B
	8.375% 9/1/21 (GNMA) (FHA) (VA) (AMT)			14,115,000		20,591,526
	Southern Minnesota Municipal Power Agency Power
	Supply System Revenue Refunding Series B
	5.50% 1/1/15 (AMBAC)			990,000		1,046,232
	University of Minnesota Series A
	5.50% 7/1/21			12,500,000		14,811,125
	5.75% 7/1/18			3,840,000		4,600,358
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 9.75% 1/1/16 (NATL-RE)			715,000		979,865
						55,313,884
Health Care Revenue Bonds – 21.95%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.60% 2/1/32			2,100,000		1,876,119
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40			2,700,000		2,437,884
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/24 (RADIAN)			740,000		731,719
	5.00% 9/1/31 (RADIAN)			500,000		465,705

8

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30		$	2,500,000	$	2,554,650
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital) 5.25% 5/1/37			2,950,000		2,806,483
	Minneapolis Health Care Facility Revenue
	(Jones-Harrison Residence Project) 5.60% 10/1/30			1,050,000		930,447
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28			3,000,000		3,370,170
	Series B 6.50% 11/15/38 (ASSURED GTY)			1,140,000		1,274,064
	Series D
	5.00% 11/15/30 (AMBAC)			2,500,000		2,496,600
	5.00% 11/15/34 (AMBAC)			10,750,000		10,408,365
	Minneapolis - St. Paul Housing & Redevelopment
	Authority Health Care System Revenue
	(Health Partners Obligation Group Project)
	5.875% 12/1/29			1,000,000		1,004,740
	Minnesota Agricultural & Economic
	Development Board Revenue
	(Benedictine Health Systems) 5.75% 2/1/29			1,895,000		1,742,547
	(Essentia Remarketing) Series C-1
	5.00% 2/15/30 (ASSURED GTY)			5,725,000		5,774,121
	5.25% 2/15/23 (ASSURED GTY)			5,000,000		5,372,950
	5.50% 2/15/25 (ASSURED GTY)			5,120,000		5,463,962
	(Fairview Health Care System)
	Un-Refunded Balance Series A
	5.75% 11/15/26 (NATL-RE)			180,000		180,072
	6.375% 11/15/29			15,000		15,231
	Northfield Hospital Revenue 5.375% 11/1/26			3,785,000		3,658,505
	Rochester Health Care & Housing Revenue Refunding
	(Samaritan Bethany) Series A 7.375% 12/1/41			5,220,000		5,400,716
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center)
	5.10% 9/1/25			2,000,000		1,938,920
	5.25% 9/1/34			7,000,000		6,542,900
	Sherburne County Health Care Facilities Revenue
	(Guardian Angels Health Services) 5.55% 10/1/36			1,500,000		1,288,695

9

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	St. Cloud Health Care Revenue (Centracare Health
	System Project)
	Series A
	5.00% 5/1/25		$	1,035,000	$	1,037,412
	5.125% 5/1/30			5,350,000		5,339,568
	Series D Remarketing 5.50% 5/1/39 (ASSURED GTY)			6,000,000		6,172,380
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.75% 7/1/39			15,200,000		15,231,311
	Series C
	5.50% 7/1/23			1,925,000		1,991,547
	5.625% 7/1/26			3,000,000		3,109,410
	5.75% 7/1/30			5,000,000		5,102,500
	St. Paul Housing & Redevelopment Authority
	Health Care Revenue
	(Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)			5,720,000		6,072,924
	Series A-1 5.25% 11/15/29			5,605,000		5,621,479
	(Health Partners Obligation Group Project)
	5.25% 5/15/36			7,900,000		7,287,513
	St. Paul Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/30			4,000,000		3,709,360
	6.00% 11/15/35			4,340,000		3,979,216
	Series A 5.70% 11/1/15			1,150,000		1,149,885
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue Refunding
	(Marion Center Project) Series A
	5.30% 11/1/30			500,000		421,620
	5.375% 5/1/43			500,000		416,060
	Stillwater Health Care Revenue (Health System
	Obligation Group) 5.00% 6/1/35			1,000,000		945,120
	Washington County Housing & Redevelopment
	Authority Hospital Facilities Revenue (Health East Project)
	5.50% 11/15/27			1,000,000		915,220
						136,238,090

10

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds – 7.15%
	Dakota County Housing & Redevelopment Authority
	Single Family Mortgage Revenue
	5.85% 10/1/30 (GNMA) (FNMA) (AMT)		$	113,000	$	113,069
@	Hutchinson Multifamily Housing Revenue
	(Evergreen Apartments Project)
	5.75% 11/1/28 (HUD Section 8)			740,000		747,918
	Minneapolis Multifamily Housing Revenue
	(Bottineau Commons Project)
	5.45% 4/20/43 (GNMA) (AMT)			1,500,000		1,508,340
	(Grant Street Apartments Project) Series A 7.25% 11/1/29			750,000		757,710
	(Seward Towers Project) 5.00% 5/20/36 (GNMA)			8,000,000		8,068,960
	(Sumner Field) Series A 5.50% 11/20/26 (GNMA) (AMT)			890,000		907,079
	(Trinity Apartments) Refunding Series A
	6.75% 5/1/21 (HUD Section 8)			1,535,000		1,544,578
	Minnesota Housing Finance Agency Rental Housing
	Revenue Series C-2 5.95% 2/1/15 (AMBAC)			1,495,000		1,498,304
	Minnesota Housing Finance Agency Residential Housing
	Series A 5.30% 7/1/19			440,000		447,784
	Series B-1 5.35% 1/1/33 (AMT)			2,590,000		2,599,479
	•Series D 4.80% 7/1/38 (AMT)			2,500,000		2,359,475
	Series I 4.85% 7/1/38 (AMT)			2,000,000		1,902,360
	Series I 5.15% 7/1/38 (AMT)			5,530,000		5,537,908
	Series L 5.10% 7/1/38 (AMT)			9,910,000		9,821,306
	Series M 4.875% 7/1/37 (AMT)			4,500,000		4,351,275
@	Washington County Housing & Redevelopment
	Authority Governmental Revenue Refunding
	(Briar Pond Project) Series C 7.25% 8/20/34			920,000		762,588
	White Bear Lake Multifamily Revenue Refunding
	(Lake Square) Series A 5.875% 2/1/15 (FHA)			680,000		681,448
	Willmar Housing & Redevelopment Authority
	Multifamily Housing Revenue (Highland Apartments)
	5.85% 6/1/19 (HUD Section 8)			755,000		755,000
						44,364,581

11

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds – 3.42%
	Minneapolis Special School District #001 Series A
	5.00% 2/1/18 (AGM)		$	1,545,000	$	1,653,073
	5.00% 2/1/19 (AGM)			1,535,000		1,642,373
	5.00% 2/1/20 (AGM)			1,690,000		1,808,216
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Un-Refunded Balance Series D 5.25% 7/1/36			1,070,000		1,025,756
	St. Paul Port Authority Lease Revenue
	(Cedar Street Office Building Project)
	5.00% 12/1/22			2,500,000		2,599,325
	5.25% 12/1/27			3,840,000		3,969,253
	Series 3-12 5.125% 12/1/27			3,000,000		3,120,930
	(Robert Street Office Building Project)
	Series 3-11 4.75% 12/1/23			2,000,000		2,075,320
	Series 3-11 5.00% 12/1/27			2,500,000		2,589,050
	Series 9 5.25% 12/1/27			725,000		749,404
						21,232,700
Local General Obligation Bonds – 17.56%
	Anoka County Capital Improvement Series A
	5.00% 2/1/19			1,270,000		1,488,186
	5.00% 2/1/22			500,000		570,380
	Brainerd Independent School District #181
	Refunding (School Building) Series A
	4.00% 2/1/22			3,255,000		3,425,562
	4.00% 2/1/23			5,990,000		6,247,330
	Centennial Independent School District #012
	Series A 5.00% 2/1/18 (AGM)			1,270,000		1,360,703
	Dakota County Capital Improvement
	Series A 4.75% 2/1/26			1,000,000		1,012,190
	Dakota County Community Development Agency
	(Senior Housing Facilities) 5.00% 1/1/21			1,275,000		1,312,319
	Farmington Independent School District #192 Series B
	5.00% 2/1/27 (AGM)			10,705,000		11,363,892
	^Capital Appreciation 5.34% 2/1/21 (AGM)			1,500,000		894,540
	^Capital Appreciation 5.424% 2/1/20 (AGM)			1,650,000		1,037,834
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)			6,850,000		7,137,425

12

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
^	Mahtomedi Independent School District #832 Capital
	Appreciation Series B 5.90% 2/1/14 (NATL-RE)		$	1,540,000	$	1,444,135
	Metropolitan Council Minneapolis-St. Paul
	Metropolitan Area Waste Water Treatment
	Series B 5.00% 12/1/21			1,200,000		1,332,420
	Series C
	5.00% 3/1/16			2,440,000		2,867,781
	5.00% 3/1/28			5,000,000		5,362,900
	Minneapolis Library 5.00% 12/1/25			1,500,000		1,563,375
	Morris Independent School District #769 Building
	5.00% 2/1/24 (NATL-RE)			4,875,000		5,348,948
	Mounds View Independent School District #621 Series A
	5.00% 2/1/20 (NATL-RE)			2,970,000		3,176,207
	5.375% 2/1/24 (FGIC)			6,170,000		6,423,649
	New Brighton Tax Increment
	Series A 5.00% 2/1/27 (NATL-RE)			1,000,000		1,077,860
	Osseo Independent School District #279
	Series A 5.00% 2/1/21 (AGM)			3,570,000		3,819,722
	Prior Lake Independent School District #719
	Series B 5.00% 2/1/19 (AGM)			3,145,000		3,425,503
	Ramsey County State Aid Series C 5.00% 2/1/28			1,060,000		1,100,746
	Robbinsdale Independent School District #281
	5.00% 2/1/21 (AGM)			1,310,000		1,407,110
^	Rosemount Independent School District #196
	Capital Appreciation Series B
	5.931% 4/1/11 (AGM)			2,600,000		2,582,970
	5.961% 4/1/12 (AGM)			1,850,000		1,810,188
	6.008% 4/1/13 (AGM)			1,915,000		1,837,404
^	Sartell Independent School District #748
	Capital Appreciation Refunding Series B
	5.976% 2/1/13 (NATL-RE)			540,000		511,202
	6.10% 2/1/15 (NATL-RE)			1,075,000		944,044
	6.15% 2/1/16 (NATL-RE)			1,750,000		1,460,813
^	Sauk Rapids Independent School District #047 Series B
	5.983% 2/1/15 (AGM)			2,700,000		2,109,618
	6.083% 2/1/17 (AGM)			2,245,000		1,552,440

13

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	South Washington County Independent School
	District #833 Series A
	4.75% 2/1/25		$	2,500,000	$	2,695,675
	4.75% 2/1/26			3,600,000		3,851,280
	4.75% 2/1/27			2,300,000		2,442,669
	St. Michael Independent School District #885
	5.00% 2/1/20 (AGM)			1,970,000		2,110,697
	5.00% 2/1/27 (AGM)			3,435,000		3,680,328
	St. Peter’s Hospital Series A 5.00% 9/1/24 (NATL-RE)			1,905,000		1,942,757
	Todd Morrison Cass & Wadena Counties Staples United
	Hospital District (Health Care Facilities-Lakewood)
	5.00% 12/1/21			2,000,000		2,099,120
	5.125% 12/1/24			1,000,000		1,044,770
	Willmar (Rice Memorial Hospital Project)
	5.00% 2/1/22 (AGM)			1,000,000		1,067,570
	5.00% 2/1/25 (AGM)			1,000,000		1,029,850
						108,974,112
§Pre-Refunded Bonds – 17.54%
	Chaska Electric Revenue Series A 6.00% 10/1/25-10			1,000,000		1,034,810
	Duluth Economic Development Authority
	Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/33-14			10,000,000		11,539,200
	5.50% 2/15/23-14			1,000,000		1,163,570
	Hennepin County Regional Railroad Authority
	5.00% 12/1/31-10			4,030,000		4,064,457
	Hopkins Housing & Redevelopment Authority
	(Public Works & Fire Station) Series A
	5.00% 2/1/23-13 (NATL-RE)			1,210,000		1,355,067
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			17,300,000		19,581,351
	(Fairview Health Services) Series A 5.625% 5/15/32-12			16,925,000		18,916,396
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue
	Series A 5.25% 1/1/32-11 (FGIC)			5,000,000		5,211,650
	Series C 5.25% 1/1/32-11 (FGIC)			6,845,000		7,129,341

14

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Minnesota Agricultural & Economic Development
	Revenue (Fairview Health Care System)
	Series A 6.375% 11/15/29-10		$	485,000	$	511,287
	Minnesota State 5.00% 11/1/20-10 (AGM)			13,675,000		14,125,728
	Rochester Electric Utilities Revenue 5.25% 12/1/30-10			4,915,000		5,102,065
	Southern Minnesota Municipal Power Agency Power Supply
	Revenue Series A
	5.75% 1/1/18-13			3,790,000		4,099,529
	5.75% 1/1/18-13 (NATL-RE)			1,000,000		1,081,670
	5.75% 1/1/18-13 (AMBAC)			670,000		724,719
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B
	5.25% 7/1/30-14			9,420,000		10,903,273
	5.50% 7/1/25-14			2,000,000		2,335,880
						108,879,993
Special Tax Revenue Bonds – 3.73%
	Hennepin County Sales Revenue
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/19			2,100,000		2,397,696
	5.00% 12/15/20			1,000,000		1,132,750
	5.00% 12/15/24			1,150,000		1,271,463
	Minneapolis Tax Increment Revenue Refunding
	(St. Anthony Falls Project) 5.75% 2/1/27			1,000,000		889,780
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			5,605,000		5,316,567
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series B 5.00% 7/1/46			4,000,000		3,549,400
	Puerto Rico Sales Tax Financing Sales Tax Revenue
	First Subordinate Series A
	•5.00% 8/1/39			925,000		971,315
	5.75% 8/1/37			5,620,000		5,809,787
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan) Series A
	5.25% 10/1/22			1,785,000		1,812,917
						23,151,675

15

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds – 3.49%
	Minnesota State
	5.00% 10/1/15		$	5,000,000	$	5,884,649
	5.00% 8/1/21			2,400,000		2,619,432
	Series A 5.00% 12/1/21			5,000,000		5,853,200
	Puerto Rico Commonwealth Public Improvement
	Series C 6.00% 7/1/39			4,045,000		4,164,125
	Un-Refunded Balance
	Series A 5.00% 7/1/34			1,670,000		1,545,936
	Series B 5.00% 7/1/35			575,000		530,001
	Puerto Rico Government Development Bank
	Senior Notes Series B 5.00% 12/1/14			1,000,000		1,062,760
						21,660,103
Transportation Revenue Bonds – 1.13%
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue Series A
	5.00% 1/1/15 (AMT)			3,095,000		3,375,128
	5.00% 1/1/22 (NATL-RE)			2,000,000		2,055,380
	5.25% 1/1/16 (NATL-RE)			1,460,000		1,585,575
						7,016,083
Water & Sewer Revenue Bonds – 0.37%
	Minnesota Public Facilities Authority Drinking Water
	Revenue Series B 5.25% 3/1/13			1,000,000		1,130,620
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series B 5.00% 3/1/19			1,000,000		1,184,160
						2,314,780
Total Municipal Bonds (cost $595,508,886)						623,885,116
		Number of shares
Short-Term Investment – 0.00%
Money Market Instrument – 0.00%
	Federated Minnesota Municipal Cash Trust			1,532		1,532
Total Short-Term Investment (cost $1,532)						1,532

16

Total Value of Securities – 100.51%
(cost $595,510,418)	$	623,886,648
Liabilities Net of Receivables and
Other Assets – (0.51%)		(3,151,625	)
Net Assets Applicable to 49,898,379
Shares Outstanding – 100.00%	$	620,735,023
Net Asset Value – Delaware Tax-Free Minnesota Fund
Class A ($575,674,206 / 46,285,234 Shares)		$12.44
Net Asset Value – Delaware Tax-Free Minnesota Fund
Class B ($8,474,379 / 680,871 Shares)		$12.45
Net Asset Value – Delaware Tax-Free Minnesota Fund
Class C ($36,586,438 / 2,932,274 Shares)		$12.48
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	591,374,256
Distributions in excess of net investment income		(145,617	)
Accumulated net realized gain on investments		1,130,154
Net unrealized appreciation of investments		28,376,230
Total net assets	$	620,735,023

^	Zero coupon security. The rate shown is the yield at the time of purchase.
•	Variable rate security. The rate shown is the rate as of February 28, 2010.
§	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 9 in ”Notes to financial statements.”
@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $1,510,506, which represented 0.24% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”

17

Statements of net assets
Delaware Tax-Free Minnesota Fund

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
FNMA — Federal National Mortgage Association Collateral
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
VA — Veterans Administration Collateral

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Fund
Net asset value Class A (A)	$	12.44
Sales charge (4.50% of offering price) (B)		0.59
Offering price	$	13.03

(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

18

Delaware Tax-Free Minnesota Intermediate Fund February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 101.47%
Corporate-Backed Revenue Bonds – 1.65%
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		$	750,000	$	725,970
	Minneapolis Community Development Agency
	(Limited Tax Common Bond Fund)
	Series 4 6.20% 6/1/17 (AMT)			870,000		874,124
						1,600,094
Education Revenue Bonds – 9.90%
	Minnesota Colleges & Universities Revenue Fund
	Series A 5.00% 10/1/28			1,000,000		1,086,130
	Minnesota Higher Education Facilities Authority Revenue
	(Carleton College) Series 6-T 4.75% 1/1/23			1,000,000		1,074,430
	(Macalester College) Series 6-P 4.25% 3/1/27			750,000		753,615
	(St. Johns University) Series 6-U
	4.40% 10/1/21			325,000		335,585
	4.50% 10/1/23			265,000		271,890
	(University of St. Thomas)
	Series 5-Y 5.25% 10/1/19			1,590,000		1,694,145
	Series 6-X 5.00% 4/1/24			1,000,000		1,056,160
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23			1,000,000		1,029,760
	University of Minnesota
	Series A 4.00% 4/1/15			310,000		345,228
	Series C 4.00% 2/1/14			250,000		276,908
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt) 5.00% 8/1/18			1,500,000		1,683,090
						9,606,941
Electric Revenue Bonds – 7.56%
	Chaska Electric Revenue Refunding (Generating Facilities)
	Series A 5.25% 10/1/25			1,000,000		1,046,770
	Minnesota Municipal Power Agency Electric Revenue
	5.25% 10/1/21			1,000,000		1,070,890
	Northern Municipal Power Agency Electric System
	Revenue Series A
	5.00% 1/1/13 (ASSURED GTY)			1,200,000		1,318,020
	5.00% 1/1/14 (ASSURED GTY)			510,000		570,588
	5.00% 1/1/15 (ASSURED GTY)			1,000,000		1,129,510

19

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Southern Minnesota Municipal Power Agency Supply System
	Revenue Series A
	5.25% 1/1/15 (AMBAC)		$	1,000,000	$	1,139,470
	5.25% 1/1/30			1,000,000		1,054,180
						7,329,428
Escrowed to Maturity Bonds – 1.72%
	University of Minnesota Series A
	5.75% 7/1/16			1,000,000		1,189,620
	5.75% 7/1/18			400,000		479,204
						1,668,824
Health Care Revenue Bonds – 17.24%
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/31 (RADIAN)			650,000		605,417
	Glencoe Health Care Facilities Revenue (Glencoe Regional
	Health Services Project) 5.00% 4/1/31			1,000,000		911,230
	Minneapolis Health Care System Revenue
	(Fairview Health Services) Series A 6.625% 11/15/28			1,500,000		1,685,085
	Minneapolis-St. Paul Housing & Redevelopment Authority
	(Health Partners Obligation Group Project)
	6.00% 12/1/17			850,000		890,333
	Minnesota Agricultural & Economic Development Board
	Health Care Revenue (Essentia Remarketing)
	Series C-1 5.50% 2/15/25 (ASSURED GTY)			2,500,000		2,667,949
	Moorhead Economic Development Authority Multifamily
	Housing Revenue Refunding
	(Eventide Lutheran Home Project) 4.70% 6/1/18			475,000		435,879
	Rochester Minnesota Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A 6.875% 12/1/29			950,000		978,785
	St. Cloud Minnesota Health Care Revenue (Centracare Health
	System Project) 5.375% 5/1/31 (ASSURED GTY)			1,000,000		1,036,200
	Series A 5.125% 5/1/30			750,000		748,538
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.50% 7/1/29			1,000,000		1,016,730
	Series C 5.625% 7/1/26			2,500,000		2,586,424
	St. Paul Housing & Redevelopment Authority Health Care
	Revenue (Allina Health System)
	Series A-2 5.25% 11/15/28			2,000,000		2,011,782

20

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project) Series B 5.85% 11/1/17		$	1,160,000	$	1,152,820
						16,727,172
Housing Revenue Bonds – 4.15%
	Minneapolis Multifamily Housing Revenue Refunding
	(Trinity Apartments)
	Series A 6.75% 5/1/21 (HUD Section 8)			1,595,000		1,604,952
	Minnesota Housing Finance Agency Residential Housing
	•Series D 4.75% 7/1/32 (AMT)			750,000		719,048
	Series I 5.10% 7/1/20 (AMT)			705,000		714,278
	Series M 4.85% 7/1/31 (AMT)			1,000,000		982,970
						4,021,248
Lease Revenue Bonds – 1.94%
	Edina Housing & Redevelopment Authority Public Project
	Revenue (Appropriate Lease Obligation)
	5.125% 2/1/19			1,000,000		1,038,100
	Virginia Housing & Redevelopment Authority Health Care
	Facility Lease Revenue 5.25% 10/1/25			880,000		843,339
						1,881,439
Local General Obligation Bonds – 26.28%
	Anoka County Capital Improvements
	Series A 4.00% 2/1/17			1,175,000		1,301,559
	Series C 5.00% 2/1/27			500,000		543,770
	Anoka-Hennepin Independent School District #11
	Refunding 5.00% 2/1/17			1,000,000		1,173,510
	Big Lake Independent School District #727
	Series C Refunding
	5.00% 2/1/16 (AGM)			1,180,000		1,224,333
	5.00% 2/1/17 (AGM)			1,000,000		1,037,570
	Brainerd Independent School District #181 Refunding
	(School Building) Series A 4.00% 2/1/22			2,500,000		2,631,000
	Centennial Independent School District #012 Series A
	5.00% 2/1/18 (AGM)			1,000,000		1,071,420
	5.00% 2/1/20 (AGM)			750,000		803,565
	Dakota County Capital Improvement Series A
	4.75% 2/1/17			1,000,000		1,036,510

21

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Duluth Independent School District #709 Revenue
	Certificates of Participation Series A 4.25% 2/1/20 (AGM)		$	1,710,000	$	1,863,746
	Hopkins Independent School District #270
	5.125% 2/1/17 (FGIC)			2,000,000		2,147,600
	Mankato Independent School District #77 (Formerly Blue
	Earth County Independent School District #10)
	4.125% 2/1/22			1,000,000		1,060,400
	Metropolitan Council Minneapolis-St. Paul Metropolitan
	Area Waste Water Treatment Series C
	5.00% 3/1/16			560,000		658,179
	5.00% 3/1/28			1,000,000		1,072,580
	Minneapolis Various Purposes 4.00% 12/1/23			1,500,000		1,561,920
	Osseo Independent School District #279
	Series A 5.00% 2/1/21 (AGM)			1,500,000		1,604,925
	South Washington County Independent School District #833
	Series A 4.00% 2/1/22			750,000		784,380
	Series B 5.00% 2/1/16 (AGM)			1,560,000		1,670,635
	St. Paul Independent School District #625
	(School Building) Series A 4.00% 2/1/15			1,020,000		1,137,351
	White Bear Lake Independent School District #624
	(Formerly Joint Independent Consolidated Ramsey
	County School District #39 & Washington & Anoka
	Counties School District #103) Series B 4.75% 2/1/22			1,000,000		1,109,270
						25,494,223
§Pre-Refunded Bonds – 8.49%
	Hennepin County Series B 4.75% 12/1/14-10			1,000,000		1,034,720
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			1,500,000		1,697,805
	(Fairview Health Services) Series A 5.625% 5/15/32-12			1,750,000		1,955,905
	Minneapolis -St. Paul Metropolitan Airports Commission
	Revenue Series C 5.125% 1/1/20-11 (FGIC)			750,000		780,368
	Minnesota Higher Education Facilities Authority Revenue
	(College of Art & Design) Series 5-D 6.625% 5/1/20-10			1,000,000		1,011,490
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services)
	Series B 5.50% 7/1/25-14			1,500,000		1,751,910
						8,232,198

22

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 11.05%
	Hennepin County Sales Tax Revenue (Second Lien-Ballpark)
	Series B 5.00% 12/15/17		$	1,740,000	$	2,042,794
	Minneapolis Art Center Facilities Revenue (Walker Art
	Center Project) 5.125% 7/1/21			2,250,000		2,301,637
@	Minneapolis Tax Increment Revenue (Ivy Tower Project)
	5.50% 2/1/22			415,000		314,288
	Minnesota 911 Revenue (Public Safety Radio
	Communication System Project)
	4.00% 6/1/14 (ASSURED GTY)			1,370,000		1,515,234
	4.25% 6/1/18 (ASSURED GTY)			1,170,000		1,284,836
	4.50% 6/1/25 (ASSURED GTY)			1,000,000		1,063,910
	Puerto Rico Sales Tax Financing Sales Tax Revenue
	First Subordinate Series A
	•5.00% 8/1/39			500,000		525,035
	5.25% 8/1/27			1,000,000		1,023,110
	6.125% 8/1/29			250,000		258,473
	Ω(Capital Appreciation) 6.75% 8/1/32			510,000		388,156
						10,717,473
State General Obligation Bonds – 5.80%
	Minnesota State
	Refunding 5.00% 8/1/15			2,000,000		2,347,540
	Various Purposes Series A 5.00% 12/1/21			1,000,000		1,170,640
	Puerto Rico Commonwealth Public Improvement
	Refunding Series A 5.25% 7/1/15			1,000,000		1,068,820
•	Puerto Rico Public Finance (Commonwealth Appropriation)
	Series A 5.75% 8/1/27
	(LOC - Puerto-Rico Government Bank)			1,000,000		1,034,750
						5,621,750
Transportation Revenue Bonds – 2.41%
	Minneapolis-St. Paul Metropolitan Airports
	Commission Refunding
	Series 14 5.50% 1/1/11 (AMT)			750,000		777,608
	Series A 5.00% 1/1/13 (AMT)			500,000		539,140
	Series B 5.00% 1/1/22 (AMT)			1,000,000		1,022,900
						2,339,648

23

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 3.28%
	Minnesota Public Facilities Authority Water
	Pollution Control Revenue Refunding
	Series C 5.00% 3/1/18		$	1,000,000	$	1,141,420
	Series D 5.00% 3/1/14			500,000		576,000
	St. Paul Sewer Revenue Series D 5.00% 12/1/20			1,275,000		1,463,279
						3,180,699
Total Municipal Bonds (cost $94,141,771)						98,421,137
		Number of shares
Short-Term Investment – 0.31%
Money Market Instrument – 0.31%
	Federated Minnesota Municipal Cash Trust			305,097		305,097
Total Short-Term Investment (cost $305,097)						305,097
Total Value of Securities – 101.78%
	(cost $94,446,868)					98,726,234
Liabilities Net of Receivables
	and Other Assets – (1.78%)					(1,729,873		)
Net Assets Applicable to 8,819,362
	Shares Outstanding – 100.00%				$	96,996,361
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class A ($83,801,578 / 7,621,778 Shares)						$11.00
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class B ($157,178 / 14,255 Shares)						$11.03
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class C ($13,037,605 / 1,183,329 Shares)						$11.02
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	93,577,105
Undistributed net investment income						2,522
Accumulated net realized loss on investments						(862,632		)
Net unrealized appreciation of investments						4,279,366
Total net assets					$	96,996,361

24

@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $314,288, which represented 0.32% of the Fund’s net assets. See Note 9 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. See Note 9 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.
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:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
HUD — Housing and Urban Development
LOC — Letter of Credit
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Intermediate Fund
Net asset value Class A (A)	$11.00
Sales charge (2.75% of offering price) (B)	0.31
Offering price	$11.31

(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

25

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 98.30%
Corporate-Backed Revenue Bonds – 3.35%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26		$	1,700,000	$	1,565,037
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21			1,750,000		1,693,930
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27			1,750,000		1,621,865
						4,880,832
Education Revenue Bonds – 9.43%
	Baytown Township Lease Revenue (St. Croix
	Preparatory Academy) Series A 7.00% 8/1/38			500,000		475,795
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/23			700,000		703,619
	Series 6-J1 5.00% 5/1/36			1,000,000		949,580
	(Bethel University) Series 6-R 5.50% 5/1/37			1,500,000		1,419,105
	(Macalester College) Series 6-P 4.25% 3/1/32			1,000,000		955,870
	(St. John’s University) Series 6-U 4.75% 10/1/33			825,000		806,636
	(St. Olaf) Series 6-O
	4.50% 10/1/32			1,000,000		926,210
	5.00% 10/1/22			1,000,000		1,062,510
	(University of St. Thomas)
	Series 6-I 5.00% 4/1/23			1,500,000		1,580,220
	Series 7-A 5.00% 10/1/39			1,000,000		1,008,300
	University of Minnesota Series A 5.125% 4/1/34			1,000,000		1,068,290
	University of Minnesota Special Purpose Revenue
	(Supported Stadium Debt) 5.00% 8/1/29			2,660,000		2,784,860
						13,740,995
Electric Revenue Bonds – 6.04%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25			1,000,000		1,046,770
	Minnesota Municipal Power Agency Electric Revenue
	Series A 5.00% 10/1/34			2,750,000		2,784,760
	Northern Municipal Power Agency Electric System Revenue
	Series A
	5.00% 1/1/16 (ASSURED GTY)			1,200,000		1,352,472
	5.00% 1/1/18 (ASSURED GTY)			1,000,000		1,124,000
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A 5.25% 1/1/16 (AMBAC)			1,000,000		1,139,360

26

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 5.00% 1/1/30 (NATL-RE)		$	1,335,000	$	1,351,154
						8,798,516
Health Care Revenue Bonds – 28.55%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.50% 2/1/24			700,000		680,736
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustanna Home St. Paul Project)
	Series A 5.80% 1/1/30			1,000,000		916,220
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/31 (RADIAN)			1,350,000		1,257,404
	Refunding 5.00% 9/1/20			1,150,000		1,171,091
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30			2,000,000		2,043,719
	Detroit Lakes Housing & Health Facilities Revenue
	Refunding (Mankato Lutheran Homes)
	Series D 5.50% 8/1/21			500,000		498,010
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project)
	5.00% 4/1/20			1,100,000		1,105,346
	5.00% 4/1/31			1,965,000		1,790,567
	Mahtomedi Senior Housing Revenue Refunding
	(St. Andrews Village Project) 5.75% 12/1/40			1,000,000		824,720
	Maple Grove Health Care Facilities Revenue
	(North Memorial Health Care) 5.00% 9/1/35			1,880,000		1,718,264
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital)
	5.25% 5/1/28			2,200,000		2,252,667
	5.25% 5/1/37			1,000,000		951,350
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28			1,900,000		2,134,440
	Series B 6.50% 11/15/38 (ASSURED GTY)			250,000		279,400
	Series D 5.00% 11/15/34 (AMBAC)			1,000,000		968,220
	Minneapolis-St. Paul Housing & Redevelopment Authority
	(Health Partners Obligation Group Project)
	6.00% 12/1/17			525,000		549,911

27

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Minnesota Agricultural & Economic Development
	Board Revenue (Benedictine Health Systems)
	5.75% 2/1/29		$	1,000,000	$	919,550
	Moorhead Economic Development Authority
	Multifamily Housing Revenue Refunding
	(Eventide Project) Series A 5.15% 6/1/29			550,000		473,787
	Northfield Hospital Revenue 5.375% 11/1/31			1,000,000		929,230
	Owatonna Senior Housing Revenue
	(Senior Living Project) Series A
	5.80% 10/1/29			400,000		368,488
	6.00% 4/1/41			1,250,000		1,119,750
	Rochester Minnesota Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A
	6.875% 12/1/29			1,000,000		1,030,300
	7.375% 12/1/41			375,000		387,983
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center) 5.25% 9/1/34			1,000,000		934,700
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.50% 5/1/39 (ASSURED GTY)			1,500,000		1,543,095
	Series A 5.125% 5/1/30			1,125,000		1,122,806
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	Series C 5.50% 7/1/23			1,000,000		1,036,470
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Allina Health System) Series A 5.00% 11/15/18 (NATL-RE)			1,900,000		2,017,230
	(Health Partners Obligation Group Project)
	5.25% 5/15/36			1,000,000		922,470
	St. Paul Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/25			1,000,000		977,040
	6.00% 11/15/30			1,000,000		927,340
	Series A 5.70% 11/1/15			705,000		704,930
	Series B 5.85% 11/1/17			250,000		248,453
	St. Paul Housing and Redevelopment Authority
	Multifamily Housing Revenue Refunding
	(Marion Center Project) Series A 5.375% 5/1/43			1,000,000		832,120

28

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Stillwater Health Care Revenue
	(Health System Obligation Group)
	5.00% 6/1/25		$	2,000,000	$	2,010,140
	5.00% 6/1/35			1,000,000		945,120
@	Twin Valley Congregate Housing Revenue
	(Living Options Project) 5.95% 11/1/28			1,825,000		1,667,831
	Winona Health Care Facilities Revenue Refunding
	(Winona Health Obligation Group) 5.15% 7/1/31			1,500,000		1,347,540
						41,608,438
Housing Revenue Bonds – 12.58%
	Chanhassen Multifamily Housing Revenue Refunding
	(Heritage Park Apartments Project)
	6.20% 7/1/30 (FHA) (AMT) (HUD Section 8)			300,000		300,264
	Chaska Multifamily Housing Revenue (West Suburban
	Housing Partners Project) 5.875% 3/1/31 (AMT)			1,000,000		769,650
@	Hutchinson Multifamily Housing Revenue (Evergreen
	Apartments Project) 5.75% 11/1/28 (HUD Section 8)			1,600,000		1,617,120
	Minneapolis Multifamily Housing Revenue
	(Grant Street Apartments Project)
	Refunding Series A 7.25% 11/1/29			2,085,000		2,106,434
	(Olson Townhomes Project) 6.00% 12/1/19 (AMT)			1,265,000		1,265,228
	(Trinity Apartments) Refunding
	Series A 6.75% 5/1/21 (HUD Section 8)			590,000		593,682
	Minneapolis-St. Paul Housing Finance Board Single
	Family Mortgage (City Living Project)
	Series A-2 5.00% 12/1/38 (GNMA) (FNMA) (AMT)			839,784		841,506
	Minnesota Housing Finance Agency
	(Rental Housing)
	Series A 4.875% 8/1/24 (AMT)			585,000		586,351
	Series A-1 5.00% 8/1/40 (AMT)			2,265,000		2,192,700
	(Residential Housing)
	Series G 5.00% 7/1/36 (AMT)			1,000,000		982,680
	Series I 4.85% 7/1/38 (AMT)			1,145,000		1,089,101
	Series L 5.10% 7/1/38 (AMT)			1,500,000		1,486,575
	Series M 4.875% 7/1/37 (AMT)			2,500,000		2,417,374
	(Single Family Mortgage) Series E 6.25% 1/1/23 (AMT)			5,000		5,006

29

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue (Shelby Grotto Housing
	Project) 5.50% 9/20/44 (GNMA) (FHA) (AMT)		$	750,000	$	763,065
	Stillwater Multifamily Housing Revenue
	(Orleans Homes Project) 5.50% 2/1/42 (AMT)			750,000		606,300
@	Washington County Housing & Redevelopment
	Authority Revenue Refunding
	(Briar Pond Project) Series B 7.125% 8/20/34			805,000		704,319
						18,327,355
Lease Revenue Bonds – 0.90%
	Hibbing Economic Development Authority Revenue
	(Public Project - Hibbing Lease Obligation)
	6.40% 2/1/12			275,000		275,160
	St. Paul Port Authority Lease Revenue (Robert Street
	Office Building Project) Series 3-11 5.00% 12/1/27			1,000,000		1,035,620
						1,310,780
Local General Obligation Bonds – 11.44%
	Chaska Independent School District #112
	Series A 4.50% 2/1/28 (NATL-RE)			1,000,000		1,030,280
	Farmington Independent School District #192
	Series B 5.00% 2/1/27 (AGM)			1,000,000		1,061,550
	Foley Independent School District #51 (School Building)
	Refunding Series A 5.00% 2/1/21			1,105,000		1,221,191
	Hopkins Independent School District #270 Facilities
	5.00% 2/1/26 (NATL-RE)			1,055,000		1,118,216
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)			1,000,000		1,041,960
	Metropolitan Council Minneapolis-St. Paul
	Metropolitan Area Waste Water Treatment
	Series B 5.00% 12/1/21			500,000		555,175
	Series C 5.00% 3/1/28			1,000,000		1,072,580
	Minneapolis Various Purposes 4.00% 12/1/23			1,500,000		1,561,920
	Moorhead Improvement Series B 5.00% 2/1/33 (NATL-RE)			750,000		768,780
	Perham Disposal System 6.00% 5/1/22 (AMT)			1,500,000		1,517,205
	South Washington County Independent School District #833
	Series A 4.75% 2/1/27			1,500,000		1,593,045

30

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Todd Morrison Cass & Wadena Counties United
	Hospital District (Health Care Facilities-Lakewood)
	5.00% 12/1/21		$	610,000	$	640,232
	5.125% 12/1/24			205,000		214,178
	5.25% 12/1/26			1,540,000		1,610,409
	White Bear Lake Independent School District #624
	(Formerly Joint Independent Consolidated
	Ramsey County School District #39 & Washington &
	Anoka Counties School District #103)
	Series B 4.75% 2/1/22			1,500,000		1,663,904
						16,670,625
§Pre-Refunded Bonds – 8.69%
	Andover Economic Development Authority Public
	Facilities Lease Revenue (Andover Community Center)
	5.20% 2/1/34-14			1,000,000		1,114,590
	Duluth Economic Development Authority
	Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/28-14			1,000,000		1,153,920
	5.25% 2/15/33-14			2,250,000		2,596,320
	Minneapolis Community Development Agency Supported
	Development Revenue (Limited Tax Common Bond Fund)
	Series G-3 5.45% 12/1/31-11			1,000,000		1,081,360
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			1,500,000		1,697,805
	(Fairview Health Services) Series A 5.625% 5/15/32-12			2,000,000		2,235,320
	Minnesota Higher Education Facilities Authority Revenue
	(College of Art & Design Project)
	Series 5-D 6.75% 5/1/26-10			500,000		505,855
	Puerto Rico Electric Power Authority Revenue Series II
	5.25% 7/1/31-12			1,000,000		1,117,450
	St. Louis Park Health Care Facilities Revenue (Park
	Nicollet Health Services) Series B 5.25% 7/1/30-14			1,000,000		1,157,460
						12,660,080
Special Tax Revenue Bonds – 7.76%
	Hennepin County Sales Tax Revenue
	(First Lien - Ball Park Project)
	Series B 5.00% 12/15/24			1,000,000		1,112,130

31

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Hennepin County Sales Tax Revenue (continued)
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/20		$	1,500,000	$	1,699,124
	5.00% 12/15/24			1,000,000		1,105,620
	Minneapolis Supported Development Revenue
	(Limited Tax-Common Bond Fund)
	Series 2A 5.00% 6/1/28 (AMT)			1,170,000		1,103,018
	Minneapolis Tax Increment Revenue
	@(Ivy Tower Project) 5.70% 2/1/29			785,000		537,011
	(St. Anthony Falls Project) 5.65% 2/1/27			500,000		439,930
	Minnesota 911 Revenue (Public Safety Radio Commission
	System Project) 5.00% 6/1/24 (ASSURED GTY)			1,000,000		1,094,160
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series B 5.00% 7/1/46			800,000		709,880
	Puerto Rico Sales Tax Financing Revenue First Subordinate
	Series A 5.75% 8/1/37			930,000		961,406
	St. Paul Port Authority (Brownsfields Redevelopment Tax)
	Series 2 5.00% 3/1/37			1,500,000		1,538,325
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note)
	Series A 5.25% 10/1/24			1,000,000		1,012,560
						11,313,164
State General Obligation Bonds – 4.01%
	Minnesota State
	5.00% 6/1/14			1,000,000		1,158,240
	5.00% 8/1/21 (AGM)			1,250,000		1,390,375
	Puerto Rico Commonwealth Public Improvement Series A
	5.25% 7/1/22			1,000,000		1,015,010
	Un-Refunded Balance 5.00% 7/1/34			185,000		171,256
	Puerto Rico Commonwealth Refunding Public Improvement
	Series C 6.00% 7/1/39			1,010,000		1,039,745
	Puerto Rico Government Development Bank Senior Notes
	Series B 5.00% 12/1/14			1,000,000		1,062,760
						5,837,386
Transportation Revenue Bond – 1.39%
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue Series A 5.00% 1/1/28 (NATL-RE)			2,000,000		2,021,540
						2,021,540

32

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 4.16%
	Minnesota Public Facilities Authority Clean Water
	Revenue Series B 5.00% 3/1/18		$	2,000,000	$	2,351,700
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding
	Series C 5.00% 3/1/18			1,000,000		1,141,420
	Series D 5.00% 3/1/14			1,000,000		1,152,000
	St. Paul Sewer Revenue Series D 5.00% 12/1/19			1,220,000		1,411,955
						6,057,075
Total Municipal Bonds (cost $141,743,534)						143,226,786
		Number of shares
Short-Term Investments – 0.55%
Money Market Instrument – 0.07%
	Federated Minnesota Municipal Cash Trust			98,648		98,648
						98,648
		Principal amount
•Variable Rate Demand Note – 0.48%
	Minneapolis & St. Paul Minnesota Housing &
	Redevelopment Authority Health Care System Revenue
	(Allina Health System) Series B-2 0.14% 11/15/35
	(LOC - JPMorgan Chase Bank)		$	700,000		700,000
						700,000
Total Short-Term Investments (cost $798,648)						798,648
Total Value of Securities – 98.85%
	(cost $142,542,182)					144,025,434
Receivables and Other Assets
	Net of Liabilities – 1.15%					1,681,898
Net Assets Applicable to 14,094,931
	Shares Outstanding – 100.00%				$	145,707,332
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class A ($114,087,435 / 11,040,662 Shares)					$10.33
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class B ($4,897,103 / 473,244 Shares)					$10.35
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class C ($26,722,794 / 2,581,025 Shares)					$10.35

33

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund

Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	148,984,462
Undistributed net investment income		97
Accumulated net realized loss on investments		(4,760,479	)
Net unrealized appreciation of investments		1,483,252
Total net assets	$	145,707,332

§	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 9 in “Notes to financial statements.”
@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $4,526,281, which represented 3.11% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
FHA — Insured by the Federal Housing Administration
FNMA — Federal National Mortgage Association Collateral
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development
LOC — Letter of Credit
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Minnesota High-Yield Municipal Bond Fund
Net asset value Class A (A)	$	10.33
Sales charge (4.50% of offering price) (B)		0.49
Offering price	$	10.82

(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

34

Statements of operations
	Six Months Ended February 28, 2010 (Unaudited)

				Delaware			Delaware
	Delaware			Tax-Free			Minnesota
	Tax-Free			Minnesota			High-Yield
	Minnesota			Intermediate			Municipal
	Fund			Fund			Bond Fund
Investment Income:
Interest	$	14,576,928		$	1,965,938		$	3,521,242
Expenses:
Management fees		1,645,868			235,447			390,265
Distribution expenses – Class A		706,024			101,843			138,959
Distribution expenses – Class B		43,733			886			24,465
Distribution expenses – Class C		174,967			61,200			128,689
Dividend disbursing and transfer agent fees
and expenses		151,215			32,850			52,452
Accounting and administration expenses		121,542			18,803			28,334
Legal fees		42,669			9,149			12,787
Reports and statements to shareholders		32,112			7,354			8,521
Registration fees		25,247			14,957			3,785
Audit and tax		25,006			8,103			9,877
Trustees’ fees		20,265			2,833			4,268
Insurance fees		10,100			1,360			2,264
Pricing fees		6,615			3,518			4,770
Custodian fees		6,194			1,270			1,501
Consulting fees		4,122			522			909
Dues and services		1,690			169			342
Trustees’ expenses		1,436			213			310
		3,018,805			500,477			812,498
Less fees waived		(34,681	)		(34,611	)		(51,786	)
Less waived distribution expenses – Class A		—			(40,737	)		—
Total operating expenses		2,984,124			425,129			760,712
Net Investment Income		11,592,804			1,540,809			2,760,530

36

			Delaware		Delaware
	Delaware		Tax-Free		Minnesota
	Tax-Free		Minnesota		High-Yield
	Minnesota		Intermediate		Municipal
	Fund		Fund		Bond Fund
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on investments	$	1,058,752	$	146,313	$	(10,939	)
Net change in unrealized appreciation/
depreciation of investments		11,472,358		1,299,557		5,959,399
Net Realized and Unrealized Gain
on Investments		12,531,110		1,445,870		5,948,460
Net Increase in Net Assets
Resulting from Operations	$	24,123,914	$	2,986,679	$	8,708,990

See accompanying notes

37

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase in Net Assets from Operations:
Net investment income	$	11,592,804		$	23,410,864
Net realized gain on investments		1,058,752			398,012
Net change in unrealized
appreciation/depreciation of investments		11,472,358			4,329,928
Net increase in net assets resulting from operations		24,123,914			28,138,804
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(10,908,175	)		(22,065,961	)
Class B		(136,865	)		(336,274	)
Class C		(547,431	)		(964,553	)
Net realized gain on investments:
Class A		—			(2,257,248	)
Class B		—			(43,630	)
Class C		—			(114,457	)
		(11,592,471	)		(25,782,123	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		25,986,906			42,839,664
Class B		—			137,140
Class C		3,861,093			9,478,506
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		7,086,591			15,962,228
Class B		93,906			264,058
Class C		399,106			810,983
		37,427,602			69,492,579

38

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(28,415,895	)	$	(76,315,603	)
Class B		(1,318,569	)		(2,471,909	)
Class C		(2,562,063	)		(4,080,940	)
		(32,296,527	)		(82,868,452	)
Increase (decrease) in net assets derived from
capital share transactions		5,131,075			(13,375,873	)
Net Increase (Decrease) in Net Assets		17,662,518			(11,019,192	)
Net Assets:
Beginning of period		603,072,505			614,091,697
End of period	$	620,735,023		$	603,072,505
Distributions in excess of net investment income	$	(145,617	)	$	(144,872	)

See accompanying notes

39

Statements of changes in net assets
Delaware Tax-Free Minnesota Intermediate Fund

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,540,809		$	2,618,389
Net realized gain (loss) on investments		146,313			(536,519	)
Net change in unrealized
appreciation/depreciation of investments		1,299,557			1,614,867
Net increase in net assets resulting from operations		2,986,679			3,696,737
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(1,379,872	)		(2,352,412	)
Class B		(2,241	)		(16,198	)
Class C		(155,251	)		(247,432	)
		(1,537,364	)		(2,616,042	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		14,068,670			25,615,997
Class B		13,787			23,351
Class C		3,042,918			5,125,080
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		928,937			1,512,023
Class B		2,026			12,783
Class C		107,255			170,452
		18,163,593			32,459,686

40

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(10,476,638	)	$	(8,485,220	)
Class B		(180,255	)		(608,734	)
Class C		(1,573,232	)		(1,331,367	)
		(12,230,125	)		(10,425,321	)
Increase in net assets derived from
capital share transactions		5,933,468			22,034,365
Net Increase in Net Assets		7,382,783			23,115,060
Net Assets:
Beginning of period		89,613,578			66,498,518
End of period	$	96,996,361		$	89,613,578
Undistributed net investment income	$	2,522		$	2,522

See accompanying notes

41

Statements of changes in net assets
Delaware Minnesota High-Yield Municipal Bond Fund

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,760,530		$	5,743,736
Net realized loss on investments		(10,939	)		(3,479,426	)
Net change in unrealized
appreciation/depreciation of investments		5,959,399			509,407
Net increase in net assets resulting from operations		8,708,990			2,773,717
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(2,242,248	)		(4,628,073	)
Class B		(80,365	)		(192,230	)
Class C		(422,601	)		(911,013	)
		(2,745,214	)		(5,731,316	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		7,793,594			15,056,968
Class B		—			73,695
Class C		2,058,183			2,660,111
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,454,637			2,988,359
Class B		54,952			121,542
Class C		300,003			647,117
		11,661,369			21,547,792

42

	Six Months				Year
	Ended				Ended
	2/28/10				8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A		$	(7,791,548	)		$	(24,926,201	)
Class B			(365,145	)			(992,296	)
Class C			(1,447,518	)			(6,740,684	)
			(9,604,211	)			(32,659,181	)
Increase (decrease) in net assets derived from
capital share transactions			2,057,158				(11,111,389	)
Net Increase (Decrease) in Net Assets			8,020,934				(14,068,988	)
Net Assets:
Beginning of period			137,686,398				151,755,386
End of period		$	145,707,332			$	137,686,398
Undistributed net investment income		$	97			$	97

See accompanying notes

43

Financial highlights
Delaware Tax-Free Minnesota 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 excluding interest and fees on short-term floating

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

Ratio of expenses to average net assets excluding interest and fees on short-term floating

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

44

 

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$12.180		$12.120		$12.170		$12.490		$12.690		$12.620
	0.237		0.474		0.495		0.511		0.511		0.527
	0.260		0.107		(0.041	)	(0.313	)	(0.172	)	0.222
	0.497		0.581		0.454		0.198		0.339		0.749
	(0.237	)	(0.473	)	(0.502	)	(0.507	)	(0.513	)	(0.526	)
	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)	(0.153	)
	(0.237	)	(0.521	)	(0.504	)	(0.518	)	(0.539	)	(0.679	)
	$12.440		$12.180		$12.120		$12.170		$12.490		$12.690
	4.11%		5.04%		3.77%		1.58%		2.78%		6.12%
	$575,674		$559,393		$574,914		$578,194		$381,720		$364,491
	0.93%		0.92%		0.93%		0.94%		0.93%		0.93%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	0.93%		0.93%		1.11%		1.23%		1.19%		1.12%
	0.94%		0.94%		0.93%		0.96%		0.94%		0.94%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	0.94%		0.95%		1.11%		1.25%		1.20%		1.13%
	3.86%		4.03%		4.05%		4.12%		4.11%		4.19%
	3.85%		4.01%		4.05%		4.10%		4.10%		4.18%
	22%		20%		17%		7%		13%		10%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Note 8 in “Notes to financial statements”.

45

Financial highlights
Delaware Tax-Free Minnesota 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 excluding interest and fees on short-term floating

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

Ratio of expenses to average net assets excluding interest and fees on short-term floating

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

46

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$12.190		$12.130		$12.180		$12.500		$12.700		$12.630
	0.191		0.386		0.403		0.419		0.418		0.433
	0.260		0.107		(0.041	)	(0.314	)	(0.172	)	0.222
	0.451		0.493		0.362		0.105		0.246		0.655
	(0.191	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)	(0.432	)
	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)	(0.153	)
	(0.191	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)	(0.585	)
	$12.450		$12.190		$12.130		$12.180		$12.500		$12.700
	3.72%		4.26%		2.99%		0.82%		2.01%		5.33%
	$8,474		$9,506		$11,593		$15,674		$11,354		$12,810
	1.68%		1.67%		1.68%		1.69%		1.68%		1.68%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	1.68%		1.68%		1.86%		1.98%		1.94%		1.87%
	1.69%		1.69%		1.68%		1.71%		1.69%		1.69%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	1.69%		1.70%		1.86%		2.00%		1.95%		1.88%
	3.11%		3.28%		3.30%		3.37%		3.36%		3.44%
	3.10%		3.26%		3.30%		3.35%		3.35%		3.43%
	22%		20%		17%		7%		13%		10%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Note 8 in “Notes to financial statements”.

47

Financial highlights
Delaware Tax-Free Minnesota 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 excluding interest and fees on short-term floating

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

Ratio of expenses to average net assets excluding interest and fees on short-term floating

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

48

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$12.220		$12.160		$12.200		$12.530		$12.720		$12.650
	0.191		0.386		0.403		0.418		0.418		0.433
	0.261		0.107		(0.031	)	(0.323	)	(0.162	)	0.222
	0.452		0.493		0.372		0.095		0.256		0.655
	(0.192	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)	(0.432	)
	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)	(0.153	)
	(0.192	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)	(0.585	)
	$12.480		$12.220		$12.160		$12.200		$12.530		$12.720
	3.71%		4.25%		3.06%		0.73%		2.08%		5.32%
	$36,587		$34,174		$27,585		$26,830		$15,125		$13,971
	1.68%		1.67%		1.68%		1.69%		1.68%		1.68%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	1.68%		1.68%		1.86%		1.98%		1.94%		1.87%
	1.69%		1.69%		1.68%		1.71%		1.69%		1.69%
	—		0.01%		0.18%		0.29%		0.26%		0.19%
	1.69%		1.70%		1.86%		2.00%		1.95%		1.88%
	3.11%		3.28%		3.30%		3.37%		3.36%		3.44%
	3.10%		3.26%		3.30%		3.35%		3.35%		3.43%
	22%		20%		17%		7%		13%		10%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Note 8 in “Notes to financial statements”.

49

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class A

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

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

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

See accompanying notes

50

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.820		$10.720		$10.610		$10.860		$11.010		$10.890
	0.184		0.384		0.414		0.445		0.429		0.407
	0.179		0.100		0.110		(0.250	)	(0.150	)	0.120
	0.363		0.484		0.524		0.195		0.279		0.527
	(0.183	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)	(0.407	)
	(0.183	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)	(0.407	)
	$11.000		$10.820		$10.720		$10.610		$10.860		$11.010
	3.38%		4.67%		5.00%		1.80%		2.62%		4.93%
	$83,801		$78,021		$58,465		$48,477		$48,297		$52,958
	0.79%		0.75%		0.75%		0.76%		0.75%		0.79%
	0.96%		0.97%		0.95%		1.00%		0.97%		0.95%
	3.38%		3.62%		3.83%		4.11%		3.96%		3.72%
	3.21%		3.40%		3.63%		3.87%		3.74%		3.56%
	21%		12%		27%		15%		11%		25%

51

Financial highlights
Delaware Tax-Free Minnesota Intermediate 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 and portfolio turnover have been annualized and total return has not been annualized.

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

See accompanying notes

52

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.850		$10.750		$10.640		$10.890		$11.040		$10.920
	0.138		0.295		0.322		0.353		0.337		0.314
	0.180		0.100		0.110		(0.250	)	(0.150	)	0.120
	0.318		0.395		0.432		0.103		0.187		0.434
	(0.138	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)	(0.314	)
	(0.138	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)	(0.314	)
	$11.030		$10.850		$10.750		$10.640		$10.890		$11.040
	2.94%		3.79%		4.10%		0.94%		1.75%		4.03%
	$157		$317		$908		$1,713		$1,993		$2,811
	1.64%		1.60%		1.60%		1.61%		1.60%		1.64%
	1.71%		1.72%		1.70%		1.75%		1.72%		1.70%
	2.53%		2.77%		2.98%		3.26%		3.11%		2.87%
	2.46%		2.65%		2.88%		3.12%		2.99%		2.81%
	21%		12%		27%		15%		11%		25%

53

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class C

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

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

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

See accompanying notes

54

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.840		$10.740		$10.630		$10.880		$11.030		$10.910
	0.138		0.295		0.322		0.353		0.337		0.314
	0.179		0.100		0.110		(0.250	)	(0.150	)	0.120
	0.317		0.395		0.432		0.103		0.187		0.434
	(0.137	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)	(0.314	)
	(0.137	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)	(0.314	)
	$11.020		$10.840		$10.740		$10.630		$10.880		$11.030
	2.94%		3.78%		4.10%		0.94%		1.75%		4.04%
	$13,038		$11,276		$7,126		$4,936		$5,162		$5,996
	1.64%		1.60%		1.60%		1.61%		1.60%		1.64%
	1.71%		1.72%		1.70%		1.75%		1.72%		1.70%
	2.53%		2.77%		2.98%		3.26%		3.11%		2.87%
	2.46%		2.65%		2.88%		3.12%		2.99%		2.81%
	21%		12%		27%		15%		11%		25%

55

Financial highlights
Delaware Minnesota High-Yield Municipal Bond 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 and portfolio turnover have been annualized and total return has not been annualized.

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

See accompanying notes

56

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$ 9.910		$10.000		$10.180		$10.530		$10.610		$10.240
	0.205		0.422		0.418		0.430		0.445		0.469
	0.419		(0.091	)	(0.180	)	(0.350	)	(0.082	)	0.372
	0.624		0.331		0.238		0.080		0.363		0.841
	(0.204	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)	(0.471	)
	(0.204	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)	(0.471	)
	$10.330		$9.910		$10.000		$10.180		$10.530		$10.610
	6.33%		3.63%		2.35%		0.71%		3.54%		8.40%
	$114,087		$107,951		$116,999		$109,807		$87,504		$63,802
	0.91%		0.89%		0.89%		0.90%		0.89%		0.89%
	0.98%		0.97%		0.97%		1.00%		1.00%		0.98%
	4.05%		4.49%		4.11%		4.09%		4.26%		4.50%
	3.98%		4.41%		4.03%		3.99%		4.15%		4.41%
	4%		12%		10%		10%		4%		3%

57

Financial highlights
Delaware Minnesota High-Yield Municipal Bond Fund Class B

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

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

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

See accompanying notes

58

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$9.920		$10.010		$10.190		$10.550		$10.630		$10.250
	0.168		0.352		0.341		0.351		0.367		0.391
	0.429		(0.091	)	(0.179	)	(0.360	)	(0.082	)	0.381
	0.597		0.261		0.162		(0.009	)	0.285		0.772
	(0.167	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)	(0.392	)
	(0.167	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)	(0.392	)
	$10.350		$9.920		$10.010		$10.190		$10.550		$10.630
	6.04%		2.86%		1.58%		(0.13%	)	2.77%		7.68%
	$4,897		$4,995		$5,907		$7,334		$9,578		$10,505
	1.66%		1.64%		1.64%		1.65%		1.64%		1.64%
	1.73%		1.72%		1.72%		1.75%		1.75%		1.73%
	3.30%		3.74%		3.36%		3.34%		3.51%		3.75%
	3.23%		3.66%		3.28%		3.24%		3.40%		3.66%
	4%		12%		10%		10%		4%		3%

59

Financial highlights
Delaware Minnesota High-Yield Municipal Bond 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 and portfolio turnover have been annualized and total return has not been annualized.

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

See accompanying notes

60

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$9.930		$10.020		$10.200		$10.550		$10.630		$10.250
	0.168		0.352		0.342		0.351		0.367		0.391
	0.419		(0.091	)	(0.181	)	(0.350	)	(0.082	)	0.381
	0.587		0.261		0.161		0.001		0.285		0.772
	(0.167	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)	(0.392	)
	(0.167	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)	(0.392	)
	$10.350		$ 9.930		$10.020		$10.200		$10.550		$10.630
	5.93%		2.85%		1.58%		(0.04%	)	2.76%		7.68%
	$26,723		$24,740		$28,849		$26,016		$20,516		$15,809
	1.66%		1.64%		1.64%		1.65%		1.64%		1.64%
	1.73%		1.72%		1.72%		1.75%		1.75%		1.73%
	3.30%		3.74%		3.36%		3.34%		3.51%		3.75%
	3.23%		3.66%		3.28%		3.24%		3.40%		3.66%
	4%		12%		10%		10%		4%		3%

61

Notes to financial statements
Delaware Minnesota Municipal Bond Funds	February 28, 2010 (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 Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Fund. Voyageur Intermediate Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, Voyageur Tax-Free Funds and Voyageur Intermediate Tax-Free Funds are individually referred to as a “Trust” and collectively as “Trusts”. These financial statements and the related notes pertain to Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund (each referred to as a “Fund” or collectively as the “Funds”). The above Trusts are open-end investment companies. The Funds are considered 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% for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and up to 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year for the Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 0.75% for the Delaware Tax-Free Minnesota Intermediate Fund if redeemed within the first 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 for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and declined from 2% to zero for Delaware Tax-Free Minnesota Intermediate Fund 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 for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and approximately five years after purchase for Delaware Tax-Free Minnesota Intermediate Fund. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

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

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

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

62

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 by an independent pricing service or broker. 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. Short-term debt securities are valued at market value. Open-end investment companies are valued at their published net asset 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” and 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.

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, 2006 – August 31, 2009), 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 the Funds on the basis of “settled shares” of each class in relation to the net assets of the Funds. Realized and unrealized gain (loss) on investments are allocated to the various classes of the Funds on the basis of daily net assets of each class. Distribution expenses relating to a specific class are charged directly to that class.

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

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

63

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

1. Significant Accounting Policies (continued)

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

The Funds 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 28, 2010.

On July 1, 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (Codification). The Codification became the single source of authoritative nongovernmental U.S. GAAP, superseding existing literature of the FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other sources. The Codification is effective for interim and annual periods ending after September 15, 2009. The Funds adopted the Codification for the six months ended February 28, 2010. There was no impact to financial statements as the Codification requirements are disclosure-only in nature.

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

DMC has voluntarily agreed to waive that portion, if any, of its management fee and reimburse Delaware Minnesota High-Yield Municipal Bond Fund to the extent necessary to ensure that total annual 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 (collectively, nonroutine expenses)), do not exceed 0.70% of average daily net assets from January 1, 2010 until such time as the waiver is discontinued. For purposes of this waiver and reimbursement, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by Delaware Minnesota High-Yield

64

Municipal Bond Fund’s Board and DMC. This expense waiver and reimbursement applies only to expenses paid directly by the Fund, and may be discontinued at any time because it is voluntary. Prior to January 1, 2010, DMC had contractually agreed to waive that portion, if any, of each Fund’s management fees and reimburse the Funds to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, brokerage fees, certain insurance costs and nonroutine expenses) did not exceed the specified percentages of average daily net assets as shown below:

		Delaware Tax-Free	Delaware Minnesota
	Delaware Tax-Free	Minnesota	High-Yield Municipal
	Minnesota Fund	Intermediate Fund	Bond Fund
Through December 31, 2009
Operating expense limitation
as a percentage of average
daily net assets (per annum)	0.67%	0.60%	0.64%
Expiration Date	12/31/09	12/31/09	12/31/09

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 28, 2010, each Fund was charged for these services as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$15,219	$2,354	$3,548

DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and C shares. DDLP has contracted to limit Delaware Tax-Free Minnesota Intermediate Fund’s Class A shares 12b-1 fees through December 31, 2010 to no more than 0.15% of average daily net assets.

65

Notes to financial statements
Delaware Minnesota Municipal Bond Funds 

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

At February 28, 2010, the Funds had liabilities payable to affiliates as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Investment management fee
payable to DMC		$	256,403		$	37,253		$	55,994
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC			20,314			3,981			6,156
Distribution fees payable
to DDLP			144,229			19,591			45,908
Other expenses payable to
DMC and affiliates*			23,830			3,793			5,567

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

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2010, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$22,290	$3,066	$4,618

For the six months ended February 28, 2010, DDLP earned commissions on sales of Class A shares for each Fund as follows:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$40,036	$9,173	$13,477

66

For the six months ended February 28, 2010, DDLP received gross CDSC commissions on redemption 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			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Class A		$	—		$	—		$	—
Class B			465			—			1,009
Class C			1,333			1,123			283

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 28, 2010, the Funds made purchases and sales of investment securities other than short-term investments as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Purchases		$	78,768,690		$	19,163,907		$	5,568,368
Sales			66,263,369			9,733,171			3,001,084

At February 28, 2010, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2010, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Cost of investments		$	595,243,001			$	94,444,924			$	142,408,844
Aggregate unrealized appreciation		$	35,500,477			$	4,572,699			$	5,293,031
Aggregate unrealized depreciation			(6,856,830	)			(291,389	)			(3,676,441	)
Net unrealized appreciation		$	28,643,647			$	4,281,310			$	1,616,590

U.S. GAAP defines fair value as the price that each Fund 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

67

Notes to financial statements
Delaware Minnesota Municipal Bond Funds 

3. Investments (continued)

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-tier hierarchy of inputs is summarized below.

Level 1 – inputs are quoted prices in active markets

Level 2 – inputs are observable, directly or indirectly

Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity

The following table summarizes the valuation of the Funds’ investments by the fair value hierarchy levels as of February 28, 2010:

	Delaware Tax-Free Minnesota Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	623,885,116	$	623,885,116
Short-Term		1,532		—		1,532
Total	$	1,532	$	623,885,116	$	623,886,648

	Delaware Tax-Free Minnesota Intermediate Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	98,421,137	$	98,421,137
Short-Term		305,097		—		305,097
Total	$	305,097	$	98,421,137	$	98,726,234

	Delaware Minnesota High-Yield Municipal Bond Fund
	Level 1		Level 2			Total
Municipal Bonds	$	—		$	143,226,786		$	143,226,786
Short-Term		98,648			700,000			798,648
Total	$	98,648		$	143,926,786		$	144,025,434

There were no Level 3 securities at the beginning or end of the period.

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented above. The new disclosures and clarifications of existing disclosures are generally effective for the Funds’ year ending August 31, 2011 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

68

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 28, 2010 and the year ended August 31, 2009 was as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Six Months Ended 2/28/10*
Ordinary income		$	25,263		$	12,151		$	—
Tax-exempt income			11,567,208			1,525,213			2,745,214
Total		$	11,592,471		$	1,537,364		$	2,745,214
Year Ended 8/31/09
Ordinary income		$	71,606		$	—		$	5,947
Tax-exempt income			23,418,382			2,616,042			5,725,369
Long-term capital gain			2,292,135			—			—
Total		$	25,782,123		$	2,616,042		$	5,731,316

*Tax information for the period ended February 28, 2010 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2010, the estimated components of net assets on a tax basis were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Shares of beneficial interest		$	591,374,256			$	93,577,105			$	148,984,462
Distributions payable			(395,449	)			(53,714	)			(91,965	)
Undistributed long-term capital gains			555,102				—				—
Undistributed tax-exempt income			249,832				56,236				92,062
Undistributed ordinary income			307,635				—				—
Realized losses 9/1/09-2/28/10			—				(88,807	)			(3,472,773	)
Post-October losses			—				—				(11,312	)
Capital loss carryforwards
as of 8/31/09			—				(775,769	)			(1,409,732	)
Unrealized appreciation of investments			28,643,647				4,281,310				1,616,590
Net assets		$	620,735,023			$	96,996,361			$	145,707,332

69

Notes to financial statements
Delaware Minnesota Municipal Bond Funds 

5. Components of Net Assets on a Tax Basis (continued)

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

Post-October losses represent losses realized on investment transactions from November 1, 2009 through February 28, 2010 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2010, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Undistributed (distributions in excess of)
net investment income		$	(1,078	)		$	(3,445	)		$	(15,316	)
Accumulated realized gain (loss)			1,078				3,445				15,316

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, 2009 will expire as follows:

	Delaware Tax-Free			Delaware Minnesota
	Minnesota			High-Yield Municipal
Year of Expiration	Intermediate Fund			Bond Fund
2010		$	4,037		$	57,521
2011			246,659			243,334
2012			—			684,248
2014			81,340			—
2015			109,745			96,079
2016			—			198,826
2017			333,988			129,724
Total		$	775,769		$	1,409,732

For the six months ended February 28, 2010, the Funds had capital losses which may increase capital loss carryforwards as follows:

Delaware Tax-Free	Delaware Minnesota
Minnesota	High-Yield Municipal
Intermediate Fund	Bond Fund
$88,807	$3,472,773

70

6. Capital Shares

Transactions in capital shares were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/28/10		8/31/09		2/28/10		8/31/09		2/28/10		8/31/09
Shares sold:
Class A	2,069,163		3,674,457		1,283,071		2,423,967		755,166		1,614,974
Class B	—		11,946		1,264		2,214		—		7,863
Class C	306,151		807,342		277,034		486,526		199,072		281,808
Shares issued upon reinvestment of dividends and distributions:
Class A	603,135		1,360,233		88,191		143,180		148,182		317,830
Class B	7,579		22,511		185		1,215		5,358		12,919
Class C	36,962		68,882		10,019		16,111		31,006		68,762
	3,022,990		5,945,371		1,659,764		3,073,213		1,138,784		2,304,156
Shares repurchased:
Class A	(2,296,773	)	(6,565,859	)	(959,150	)	(810,239	)	(759,895	)	(2,739,090	)
Class B	(106,233	)	(210,875	)	(16,425	)	(58,625	)	(35,680	)	(107,260	)
Class C	(206,368	)	(349,626	)	(143,488	)	(126,181	)	(141,633	)	(738,199	)
	(2,609,374	)	(7,126,360	)	(1,119,063	)	(995,045	)	(937,208	)	(3,584,549	)
Net increase (decrease)	413,616		(1,180,989	)	540,701		2,078,168		201,576		(1,280,393	)

For the six months ended February 28, 2010 and the year ended August 31, 2009, the following shares and values were converted from Class B shares to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the table above and the statements of changes in net assets.

	Six Months Ended				Year Ended
	2/28/10				8/31/09
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Minnesota Fund	66,864	66,918	$	831,340	97,466	97,549	$	1,145,062
Delaware Tax-Free Minnesota
Intermediate Fund	11,945	11,977		131,502	39,832	39,916		410,681
Delaware Minnesota High-Yield
Municipal Bond Fund	19,945	19,964		204,598	38,299	38,350		356,368

71

Notes to financial statements
Delaware Minnesota Municipal Bond Funds 

7. Line of Credit

The Funds, along with certain other funds in the Delaware Investments® Family of Funds (Participants), participate in a $35,000,000 revolving line of credit with The Bank of New York Mellon (BNY Mellon) 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 are charged an annual commitment fee, which is allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The agreement expires on November 16, 2010. The Funds had no amounts outstanding as of February 28, 2010 or at any time during the period then ended.

8. Derivatives

U.S. GAAP requires enhanced disclosures that enable investors to understand: 1) how and why an entity uses derivatives, 2) how they are accounted for, and 3) how they affect an entity’s results of operations and financial position.

Inverse Floaters — Each Fund may participate in inverse floater programs where a fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. At February 28, 2010, the Funds held no investments in inverse floaters.

9. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities, mainly in Minnesota. The value of these investments may be adversely affected by new legislation within the state, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market 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 impact on the value of insured bonds held in each Fund. At February 28, 2010, the percentages of each Fund’s net assets insured by insurers are listed and these securities have been identified in the statements of net assets.

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
24%	24%	14%

72

The Funds invest a portion of their assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor’s Ratings Group (S&P) and/or Ba or lower by Moody’s Investors Service, Inc. (Moody’s). Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

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 and are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, 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 Funds’ 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 assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Funds’ 15% limit on investments in illiquid securities. As of February 28, 2010, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

73

Notes to financial statements
Delaware Minnesota Municipal Bond Funds 

10. Contractual Obligations

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

11. Sale of Delaware Investments to Macquarie Group

On August 18, 2009, Lincoln National Corporation (parent company of Delaware Investments) and Macquarie Group (Macquarie) entered into an agreement pursuant to which Delaware Investments, including DMC, DDLP, and DSC, would be acquired by Macquarie, an Australia-based global provider of banking, financial, advisory, investment and funds management services (Transaction). The Transaction was completed on January 4, 2010. DMC, DDLP and DSC are now wholly owned subsidiaries of Macquarie.

The Transaction resulted in a change of control of DMC which, in turn, caused the termination of the investment management agreement between DMC and the Funds. On January 4, 2010, the new investment management agreement between DMC and the Funds that was approved by the shareholders became effective.

12. Subsequent Events

Management has evaluated whether any events or transactions occurred subsequent to February 28, 2010 through April 15, 2010, the date of issuance of the Funds’ financial statements, and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.

74

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Proxy Results

At Joint Special Meetings of Shareholders of Voyageur Tax-Free Funds, on behalf of Delaware Tax-Free Minnesota Fund; Voyageur Intermediate Tax-Free Funds, on behalf of Delaware Tax-Free Minnesota Intermediate Fund; and Voyageur Mutual Funds, on behalf of Delaware Minnesota High-Yield Municipal Bond Fund (Voyageur Tax-Free Funds, Voyageur Intermediate Tax-Free Funds, and Voyageur Mutual Fund hereinafter each, a “Trust” and collectively, the “Trusts” and Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund hereinafter each, a “Fund” and collectively, the “Funds”) held on November 12, 2009 and reconvened on December 4, 2009 for Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund only and March 16, 2010, the shareholders of each Fund voted to (i) elect a Board of Trustees for each Trust; and to (ii) approve new investment advisory agreements between each Trust, on behalf of the respective Fund, and Delaware Management Company, respectively. At the meeting, the following people were elected to serve as Independent Trustees: Thomas L. Bennett, John A. Fry, Anthony D. Knerr, Lucinda S. Landreth, Ann R. Leven, Thomas F. Madison, Janet L. Yeomans, and J. Richard Zecher. In addition, Patrick P. Coyne was elected to serve as an Interested Trustee.

The following proposals were submitted for a vote of the shareholders:

1. To elect a Board of Trustees for each Trust.

Voyageur Tax-Free Funds

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	34,658,325.107	70.064	96.985	1,077,535.235	2.178	3.015
Patrick P. Coyne	34,637,532.827	70.022	96.927	1,098,327.515	2.220	3.073
John A. Fry	34,678,965.504	70.106	97.042	1,056,894.838	2.136	2.958
Anthony D. Knerr	34,658,281.949	70.064	96.985	1,077,578.393	2.178	3.015
Lucinda S. Landreth	34,690,535.224	70.129	97.075	1,045,325.118	2.113	2.925
Ann R. Leven	34,683,926.638	70.116	97.056	1,051,933.704	2.126	2.944
Thomas F. Madison	34,602,190.932	69.950	96.828	1,133,669.410	2.292	3.172
Janet L. Yeomans	34,292,557.980	70.133	97.081	1,043,302.362	2.109	2.919
J. Richard Zecher	34,643,543.675	70.034	96.943	1,092,316.667	2.208	3.057

Voyageur Intermediate Tax-Free Funds

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	6,484,566.470	77.047	97.545	163,206.620	1.939	2.455
Patrick P. Coyne	6,484,949.955	77.052	97.551	162,823.125	1.934	2.449
John A. Fry	6,483,192.193	77.031	97.524	164,580.897	1.955	2.476
Anthony D. Knerr	6,485,116.711	77.054	97.553	162,656.379	1.932	2.447
Lucinda S. Landreth	6,487,230.281	77.079	97.585	160,542.809	1.907	2.415
Ann R. Leven	6,485,837.612	77.062	97.564	161,935.478	1.924	2.436
Thomas F. Madison	6,485,116.711	77.054	97.553	162,656.379	1.932	2.447
Janet L. Yeomans	6,487,230.281	77.079	97.585	160,542.809	1.907	2.415
J. Richard Zecher	6,482,808.708	77.026	97.519	164,964.382	1.960	2.481

75

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Proxy Results (continued)

1. To elect a Board of Trustees for each Trust. (continued)

Voyageur Mutual Funds

			% of		% of				% of		% of
			outstanding		shares				outstanding		shares
	Shares voted for		shares		voted		Shares withheld		shares		voted
Thomas L. Bennett		27,534,201.174		64.687		94.418		1,627,955.392		3.825		5.582
Patrick P. Coyne		27,538,840.631		64.698		94.433		1,623,315.935		3.814		5.567
John A. Fry		27,541,310.882		64.704		94.442		1,620,845.684		3.808		5.558
Anthony D. Knerr		27,543,108.286		64.708		94.448		1,619,048.280		3.804		5.552
Lucinda S. Landreth		27,542,973.819		64.708		94.448		1,619,182.747		3.804		5.552
Ann R. Leven		27,540,505.439		64.702		94.439		1,621,651.127		3.810		5.561
Thomas F. Madison		27,534,959.779		64.689		94.420		1,627,196.787		3.823		5.580
Janet L. Yeomans		27,539,087.174		64.698		94.434		1,623,069.392		3.814		5.566
J. Richard Zecher		27,532,297.843		64.683		94.411		1,629,858.723		3.829		5.589

2. To approve a new investment advisory agreement between each Trust, on behalf of the respective Fund, and Delaware Management Company.

Delaware Tax-Free Minnesota Fund
Shares Voted For	25,635,126.154
Percentage of Outstanding Shares	51.823%
Percentage of Shares Voted	71.790%
Shares Voted Against	570,789.999
Percentage of Outstanding Shares	1.154%
Percentage of Shares Voted	1.599%
Shares Abstained	1,400,776.175
Percentage of Outstanding Shares	2.832%
Percentage of Shares Voted	3.922%
Broker Non-Votes	8,101,614.624

Delaware Tax-Free Minnesota Intermediate Fund
Shares Voted For	4,242,203.541
Percentage of Outstanding Shares	50.404%
Percentage of Shares Voted	64.304%
Shares Voted Against	70,842.414
Percentage of Outstanding Shares	0.842%
Percentage of Shares Voted	1.073%
Shares Abstained	130,166.113
Percentage of Outstanding Shares	1.547%
Percentage of Shares Voted	1.974%
Broker Non-Votes	2,153,938.780

76

Delaware Minnesota High-Yield Municipal Bond Fund
Shares Voted For	6,910,587.530
Percentage of Outstanding Shares	49.779%
Percentage of Shares Voted	68.802%
Shares Voted Against	194,397.369
Percentage of Outstanding Shares	1.401%
Percentage of Shares Voted	1.935%
Shares Abstained	315,809.744
Percentage of Outstanding Shares	2.274%
Percentage of Shares Voted	3.145%
Broker Non-Votes	2,623,411.893

77

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Board Consideration of New Investment Advisory Agreement

At a meeting held on September 3, 2009 (the “Meeting”), the Board of Trustees of the Delaware Investments® Family of Funds (the “Board”), including the independent Trustees, unanimously approved a new investment advisory agreement between each registrant on behalf of each series (each, a “Fund” and together, the “Funds”) and Delaware Management Company (“DMC”) in connection with the sale of Delaware Investments’ advisory business to Macquarie Bank Limited (the “Macquarie Group”) (the “Transaction”). In making its decision, the Board considered information furnished specifically in connection with the approval of the new investment advisory agreements with DMC (the “New Investment Advisory Agreements”) which included extensive materials about the Transaction and matters related to the proposed approvals. To assist the Board in considering the New Investment Advisory Agreements, Macquarie Group provided materials and information about Macquarie Group, including detailed written responses to the questions posed by the independent Trustees. DMC also provided materials and information about the Transaction, including detailed written responses to the questions posed by the independent Trustees.

At the Meeting, the Trustees discussed the Transaction with DMC management and with key Macquarie Group representatives. The Meeting included discussions of the strategic rationale for the Transaction and Macquarie Group’s general plans and intentions regarding the Funds and DMC. The Board members also inquired about the plans for, and anticipated roles and responsibilities of, key employees and officers of Delaware Management Holdings Inc. and DMC in connection with the Transaction.

In connection with the Trustees’ review of the New Investment Advisory Agreements for the Funds, DMC and/or Macquarie Group emphasized that:

• They expected that there would be no adverse changes as a result of the Transaction, in the nature, quality, or extent of services currently provided to the Funds and their shareholders, including investment management, distribution, or other shareholder services.
• No material changes in personnel or operations were contemplated in the operation of DMC under Macquarie Group as a result of the Transaction and no material changes were currently contemplated in connection with third party service providers to the Funds.
• Macquarie Group had no intention to cause DMC to alter the voluntary expense waivers and reimbursements currently in effect for the Funds.
• Under the agreement between Macquarie Group and Lincoln National Corporation (“LNC”) (the “Transaction Agreement”), Macquarie Group has agreed to conduct, and to cause its affiliates to conduct, their respective businesses in compliance with the conditions of Section 15(f) of the Investment Company Act of 1940 (the “1940 Act”) with respect to the Funds, to the extent within its control, including maintaining Board composition of at least 75% of the Board members qualifying as independent Trustees and not imposing any “unfair burden” on the Funds for at least two years from the closing of the Transaction (the “Closing”).

78

In addition to the information provided by DMC and Macquarie Group as described above, the Trustees also considered all other factors they believed to be relevant to evaluating the New Investment Advisory Agreements, including the specific matters discussed below. In their deliberations, the Trustees did not identify any particular information that was controlling, and different Trustees may have attributed different weights to the various factors. However, for each Fund, the Trustees determined that the overall arrangements between the Fund and DMC, as provided in the respective New Investment Advisory Agreement, including the proposed advisory fee and the related administration arrangements between the Fund and DMC, were fair and reasonable in light of the services to be performed, expenses incurred, and such other matters as the Trustees considered relevant. Factors evaluated included:

• The potential for expanding distribution of Fund shares through access to Macquarie Group’s existing distribution channels;
• Delaware Investments’ acquisition of an exclusive wholesaling sales force from a subsidiary of LNC;
• The reputation, financial strength, and resources of Macquarie Group as well as its historic and ongoing commitment to the asset management business in Australia as well as other parts of the world;
• The terms and conditions of the New Investment Advisory Agreements, including that each Fund’s total contractual fee rate under the New Investment Advisory Agreement will remain the same;
• The Board’s full annual review (or initial approval) of the current investment advisory agreements at their in-person meeting in May 2009 as required by the 1940 Act and its determination that (i) DMC had the capabilities, resources, and personnel necessary to provide the satisfactory advisory and administrative services currently provided to each Fund and (ii) the advisory and/or management fees paid by each Fund, taking into account any applicable fee waivers and breakpoints, represented reasonable compensation to DMC in light of the services provided, the costs to DMC of providing those services, economies of scale, and the fees and other expenses paid by similar funds and such other matters that the Board considered relevant in the exercise of its reasonable judgment;
• The portfolio management teams for the Funds are not currently expected to change as a result of the Transaction;
• LNC and Macquarie Group were expected to execute a reimbursement agreement pursuant to which LNC and Macquarie Group would agree to pay (or reimburse) all reasonable out-of-pocket costs and expenses of the Funds in connection with the Board’s consideration of the Transaction, the New Investment Advisory Agreements and related agreements, and all costs related to the proxy solicitation (the “Expense Agreement”);

79

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Board Consideration of New Investment Advisory Agreement (continued)

• The likelihood that Macquarie Group would invest additional amounts in Delaware Investments, including DMC, which could result in increased assets under management, which in turn would allow some Funds the potential opportunity to achieve economies of scale and lower fees payable by Fund shareholders; and
• The compliance and regulatory history of Macquarie Group and its affiliates.

In making their decision relating to the approval of each Fund’s New Investment Advisory Agreement, the independent Trustees gave attention to all information furnished. The following discussion, however, identifies the primary factors taken into account by the Trustees and the conclusions reached in approving the New Investment Advisory Agreements.

Nature, Extent, and Quality of Service. The Trustees considered the services historically provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered that the New Investment Advisory Agreements would be substantially similar to the current investment advisory agreements between the Funds and DMC (the “Current Investment Advisory Agreements”), and therefore, considered the many reports furnished to them throughout 2008 and 2009 at regular Board meetings covering matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; the compliance of management personnel with the code of ethics adopted throughout the Delaware Investments® Family of Funds complex; and the adherence to fair value pricing procedures as established by the Board. The Trustees were pleased with the current staffing of DMC and the emphasis placed on research and risk management in the investment process. Favorable consideration was given to DMC’s efforts to maintain expenditures and, in some instances, increase financial and human resources committed to Fund matters.

The Board also considered the transfer agent and shareholder services that would continue to be provided to Fund shareholders by DMC’s affiliate, Delaware Service Company, Inc. (“DSC”). The Trustees noted, in particular, DSC’s commitment to maintain a high level of service as well as DMC’s expenditures to improve the delivery of shareholder services. The Board was assured that shareholders would continue to receive the benefits provided to Fund shareholders by being part of the Delaware Investments Family of Funds, including each shareholder’s ability to exchange an investment in one Delaware Investments Fund for the same class of shares in another Delaware Investments Fund without a sales charge, to reinvest Fund dividends into additional shares of any of the Funds, and the privilege to combine holdings in other Funds to obtain a reduced sales charge.

Based on the information provided by DMC and Macquarie Group, including that Macquarie Group and DMC currently expected no material changes as a result of the Transaction in (i) personnel or operations of DMC or (ii) third party service providers to the Funds, the Board concluded that the satisfactory nature, extent, and quality of services currently provided to the Funds and their shareholders were very likely to continue under the New Investment Advisory Agreements. Moreover, the Board concluded that the Funds would probably benefit from the expanded distribution resources that would become available to Delaware Investments following the Transaction. The Board also

80

concluded that it was very unlikely that any “unfair burden” would be imposed on any of the Funds for the first two years following the Closing as a result of the Transaction. Consequently, the Board concluded that it did not expect the Transaction to result in any adverse changes in the nature, quality, or extent of services (including investment management, distribution or other shareholder services) currently provided to the Funds and their shareholders.

Investment Performance. The Board considered the overall investment performance of DMC and the Funds. The Trustees placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Trustees gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Trustees gave particular weight to their review of investment performance in connection with the approval of the Current Investment Advisory Agreements at the Board meeting held in May 2009. At that meeting, the Trustees reviewed reports prepared by Lipper, Inc., an independent statistical compilation organization (“Lipper”), which showed each Fund’s investment performance as of December 31, 2008 in comparison to a group of funds selected by Lipper as being similar to the Fund (the “Performance Universe”). During the May 2009 agreement review process, the Trustees observed the significant improvements to relative investment performance of the Funds compared to the Funds’ performance as of December 31, 2007.

At their meeting on September 3, 2009, the Trustees, including the independent Trustees in consultation with their independent counsel, reviewed the investment performance of each Fund. The Trustees compared the performance of each Fund relative to that of its respective Performance Universe for the 1-, 3-, 5-, and 10-year periods ended June 30, 2009 and compared its relative investment performance against the corresponding relative investment performance of each Fund for such time periods ended December 31, 2008, to the extent applicable. As of June 30, 2009, 30 of the Funds had investment performance relative to that of the respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for all applicable time periods. At June 30, 2009, an additional 6 Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for a majority of the applicable time periods. At June 30, 2009, 15 additional Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative performance at December 31, 2008 and only 29 Funds had poorer relative investment performance at June 30, 2009 compared to that at December 31, 2008.

The Board therefore concluded that the investment performance of the Funds, on an aggregate basis, had continued to improve relative to their respective Performance Universe since the data reviewed at the May 2009 meeting. Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreement would likely have an adverse effect on the investment performance of any Fund because (i) DMC and Macquarie Group did not currently expect the Transaction to cause any material change to the Funds’ portfolio management teams responsible for investment performance, which the Board found to be satisfactory and improving; and (ii) as discussed in more detail below, the Funds’ expenses were not expected to increase as a result of the Transaction.

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Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Board Consideration of New Investment Advisory Agreement (continued)

Comparative Expenses. The Trustees also considered expense comparison data for the Funds previously provided in May 2009. At that meeting, DMC had provided the Board with information on pricing levels and fee structures for the Funds and comparative funds. The Trustees focused on the comparative analysis of the effective management fees and total expense ratios of each Fund versus the effective management fees and expense ratios of a group of funds selected by Lipper as being similar to each Fund (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) of other funds within the Expense Group, taking into account any applicable breakpoints and fee limitations. Each Fund’s total expenses were also compared with those of its Expense Group. The Trustees also considered fees paid to Delaware Investments for nonmanagement services. At the September 3, 2009 meeting, DMC advised the Board that the more recent comparative expenses for the Funds remained consistent with the previous review in May 2009 and, consequently, the Trustees concluded that expenses of the Funds were satisfactory.

The Board also considered the Expense Agreement under negotiation in evaluating Fund expenses. The Trustees expected that the Expense Agreement would provide that LNC and Macquarie Group would pay or reimburse the Trusts for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the consideration of the New Investment Advisory Agreements (subject to certain limited exceptions).

Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreements likely would have an adverse effect on the Funds’ expenses because (i) each Fund’s contractual fee rates under the New Investment Advisory Agreement would remain the same; (ii) under the Expense Agreement, the Funds would be reimbursed for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the related proxy solicitation (subject to certain limited exceptions); and (iii) the expense ratios of certain Funds might decline as a result of the possible increased investment in Delaware Investments by Macquarie Group, as discussed below under “Economies of Scale.”

Management Profitability. At their meeting on September 3, 2009, the Board evaluated DMC’s profitability in connection with the operation of the Funds. The Board had previously considered DMC’s profitability in connection with the operation of the Funds at its May 2009 meeting. At that meeting, the Board reviewed an analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the Funds and the Delaware Investments® Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability.

At the May 2009 meeting, representatives of DMC had stated that the level of profits of DMC, to a certain extent, reflect operational cost savings and efficiencies initiated by Delaware Investments (including DMC and its affiliates that provide services to the Funds). The Board considered

82

Delaware Investments’ efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide U.S. Securities and Exchange Commission initiatives. At that meeting, the Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC. At the September 3, 2009 meeting, DMC advised the Board that DMC did not expect the Transaction to affect materially the profitability of Delaware Investments compared to the level of profitability considered during the May 2009 review. Moreover, the Trustees reviewed pro forma balance sheets of certain key companies in Delaware Investments as of June 30, 2009 (which were provided by Macquarie Group and DMC in response to the Trustees’ requests) and evaluated the projections of Delaware Investments’ capitalization following the Transaction for purposes of evaluating the financial ability of Delaware Investments to continue to provide the nature, extent, and quality of services as it had under the Current Investment Advisory Agreement.

Based on information provided by DMC and Macquarie Group, the Board concluded that DMC and Delaware Investments would be sufficiently capitalized following the Transaction to continue the same level and quality of services to the Funds under the New Investment Advisory Agreements as was the case under the Current Investment Advisory Agreements. The Board also concluded that Macquarie Group had sufficient financial strength and resources, as well as an ongoing commitment to a global asset management business, to continue investing in Delaware Investments, including DMC, to the extent that Macquarie Group determined it was appropriate. Finally, because services and costs were expected to be substantially the same (and DMC had represented that, correspondingly, profitability would be about the same), under the New Investment Advisory Agreements as under the Current Investment Advisory Agreements, the Trustees concluded that the profitability of Delaware Investments would not result in an inequitable charge on the Funds or their shareholders. Accordingly, the Board concluded that the fees charged under the New Investment Advisory Agreements would be reasonable in light of the services to be provided and the expected profitability of DMC.

Economies of Scale. The Trustees considered whether economies of scale would be realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale would be reflected in the management fees charged. The Trustees took into account DMC’s practice of maintaining the competitive nature of management fees based on its analysis of fees charged by comparable funds. DMC management believed, and the Board agreed, that the Funds were priced with breakpoints and relatively low management fees to reflect potential economies of scale to Fund shareholders.

The Board also acknowledged Macquarie Group’s statement that the Transaction would not by itself immediately provide additional economies of scale given Macquarie Group’s limited presence in the U.S. mutual fund market. Nonetheless, the Trustees concluded that additional economies of scale could potentially be achieved in the future if DMC were owned by Macquarie Group as a result of Macquarie Group’s willingness to invest further in Delaware Investments if appropriate opportunities arise. The Board further concluded that potential economies of scale could be achieved as a result of Delaware Investments’ expanded distribution capabilities arising from the Transaction, as well as opportunities that might arise from Macquarie Group’s global asset management business.

83

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Board Consideration of New Investment Advisory Agreement (continued)

Fall-Out Benefits. The Board acknowledged that DMC would continue to benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities and that DMC’s profitability would likely be somewhat lower without the benefit of practices with respect to allocating Fund portfolio brokerage for brokerage and research services. The Board also considered that Macquarie Group and Delaware Investments may derive reputational, strategic, and other benefits from their association with the Delaware Investments Family of Funds, including service relationships with DMC, DSC, and Delaware Distributors, L.P., and evaluated the extent to which Delaware Investments might derive ancillary benefits from Fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of Fund brokerage to improve trading efficiencies. However, the Board concluded that (i) any such benefits under the New Investment Advisory Agreements would not be dissimilar from those existing under the Current Investment Advisory Agreements; (ii) such benefits did not impose a cost or burden on the Funds or their shareholders; and (iii) such benefits would probably have an indirectly beneficial effect on the Funds and their shareholders because of the added importance that DMC and Macquarie Group might attach to the Funds as a result of the fall-out benefits that the Funds conveyed.

Board Review of Macquarie Group. The Trustees reviewed detailed information supplied by Macquarie Group about its operations as well as other information regarding Macquarie Group provided by independent legal counsel to the independent Trustees. Based on this review, the Trustees concluded that Delaware Investments would continue to have the financial ability to maintain the high quality of services required by the Funds. The Trustees noted that there would be a limited transition period during which some services previously provided by LNC to Delaware Investments would continue to be provided by LNC after the Closing, and concluded that this arrangement would help minimize disruption in Delaware Investments’ provision of services to the Funds following the Transaction.

The Board considered Macquarie Group’s support for Delaware Investments’ plans for Fund distribution by transferring wholesalers from Lincoln Financial Distributors, Inc., LNC’s retail distributor, to Delaware Investments, and Macquarie Group’s current intention to leave the Funds’ other service providers in place. The Board also considered Macquarie Group’s current strategic plans to increase its asset management activities, one of its core businesses, particularly in North America, and its statement that its acquisition of DMC is an important component of this strategic growth and the establishment of a significant presence in the United States. Based in part on the information provided by DMC and Macquarie Group, the Board concluded that Macquarie Group’s acquisition of Delaware Investments could potentially enhance the nature, quality, and extent of services provided to the Funds and their shareholders.

84

Conclusion. The Board concluded that the advisory fee rate under each New Investment Advisory Agreement was reasonable in relation to the services provided and that execution of the New Investment Advisory Agreement would be in the best interests of the shareholders. For each Fund, the Trustees noted that they had concluded in their most recent advisory agreement continuance considerations in May 2009 that the management fees and total expense ratios were at acceptable levels in light of the quality of services provided to the Funds and in comparison to those of the Funds’ respective peer groups; that the advisory fee schedule would not be increased and would stay the same for all of the Funds; that the total expense ratio had not changed materially since that determination; and that DMC had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction. The Trustees also noted, with respect to the Funds that currently had the benefit of voluntary fee limitations, that Macquarie Group had no present intention to cause DMC to alter any voluntary expense limitations or reimbursements currently in effect. On that basis, the Trustees concluded that the total expense ratios and proposed advisory fees for the Funds anticipated to result from the Transaction were acceptable. In approving each New Investment Advisory Agreement, the Board stated that it anticipated reviewing the continuance of the New Investment Advisory Agreement in advance of the expiration of the initial two-year period.

85

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 Franklin & Marshall College Lancaster, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Thomas F. Madison President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ
Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	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 Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund, and Delaware Minnesota High-Yield Municipal Bond Fund and the Delaware Investments Fund profile for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

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 Web site 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 each Fund’s Web site 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 each Fund’s Web site at www.delawareinvestments.com; and (ii) on the SEC’s Web site at www.sec.gov.

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Semiannual report

Delaware Tax-Free USA Fund

Delaware Tax-Free USA Intermediate Fund

Delaware National High-Yield Municipal

Bond Fund

February 28, 2010

Fixed income mutual funds

This semiannual report is for the information of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund.

The figures in the semiannual report for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund represent past results, which are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund prospectus contains this and other important information about the Fund. Prospectuses for all open-end funds in the Delaware Investments® Family of Funds are available from your financial advisor, online at www.delawareinvestments.com, or by phone at 800 523-1918. Please read the prospectus carefully before you invest or send money.

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 USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond 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

On January 4, 2010, Delaware Management Holdings, Inc., and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see your Funds’ prospectus and any supplements thereto for more complete information.

Investments in Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond 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 subsidiaries or related companies, 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
Sector allocations and credit quality breakdowns	4
Statements of net assets	7
Statements of operations	48
Statements of changes in net assets	50
Financial highlights	56
Notes to financial statements	79
Other Fund information	92
About the organization	102

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2010, and are 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.

© 2010 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the period September 1, 2009 to February 28, 2010

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2009 to February 28, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 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 USA Fund Expense analysis of an investment of $1,000
	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,056.10	0.80%	$4.08
Class B	1,000.00	1,052.10	1.56%	7.94
Class C	1,000.00	1,052.10	1.56%	7.94
Institutional Class	1,000.00	1,063.50	0.56%	2.87
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.83	0.80%	$4.01
Class B	1,000.00	1,017.06	1.56%	7.80
Class C	1,000.00	1,017.06	1.56%	7.80
Institutional Class	1,000.00	1,022.02	0.56%	2.81
Delaware Tax-Free USA Intermediate Fund Expense analysis of an investment of $1,000
	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,043.30	0.75%	$3.80
Class B	1,000.00	1,039.00	1.60%	8.09
Class C	1,000.00	1,039.00	1.60%	8.09
Institutional Class	1,000.00	1,053.20	0.60%	3.05
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,021.08	0.75%	$3.76
Class B	1,000.00	1,016.86	1.60%	8.00
Class C	1,000.00	1,016.86	1.60%	8.00
Institutional Class	1,000.00	1,021.82	0.60%	3.01

2

Delaware National High-Yield Municipal Bond Fund Expense analysis of an investment of $1,000
	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	9/1/09	2/28/10	Expense Ratio	9/1/09 to 2/28/10*
Actual Fund return
Class A	$1,000.00	$1,102.60	0.85%	$4.43
Class B	1,000.00	1,098.40	1.60%	8.32
Class C	1,000.00	1,098.20	1.60%	8.32
Institutional Class	1,000.00	1,113.70	0.60%	3.14
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.58	0.85%	$4.26
Class B	1,000.00	1,016.86	1.60%	8.00
Class C	1,000.00	1,016.86	1.60%	8.00
Institutional Class	1,000.00	1,021.82	0.60%	3.01

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

3

Sector allocations and credit quality breakdowns
Delaware Tax-Free USA Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.87	%
Corporate Revenue Bonds	17.53	%
Education Revenue Bonds	7.24	%
Electric Revenue Bonds	1.70	%
Escrowed to Maturity Bonds	6.75	%
Health Care Revenue Bonds	12.13	%
Housing Revenue Bonds	0.92	%
Lease Revenue Bonds	3.36	%
Local General Obligation Bonds	5.38	%
Pre-Refunded Bonds	13.18	%
Special Tax Revenue Bonds	10.51	%
State General Obligation Bonds	6.29	%
Transportation Revenue Bonds	10.57	%
Water & Sewer Revenue Bonds	3.31	%
Short-Term Investments	0.31	%
Total Value of Securities	99.18	%
Receivables and Other Assets Net of Liabilities	0.82	%
Total Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	24.31	%
AA	11.67	%
A	24.34	%
BBB	27.62	%
BB	1.74	%
B	2.46	%
CCC	1.45	%
Not Rated	6.41	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

4

Delaware Tax-Free USA Intermediate Fund As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	97.41	%
Corporate Revenue Bonds	9.40	%
Education Revenue Bonds	5.19	%
Electric Revenue Bonds	2.41	%
Escrowed to Maturity Bonds	0.08	%
Health Care Revenue Bonds	11.79	%
Housing Revenue Bonds	1.28	%
Lease Revenue Bonds	2.24	%
Local General Obligation Bonds	7.62	%
Pre-Refunded Bonds	5.78	%
Resource Recovery Revenue Bonds	0.20	%
Special Tax Revenue Bonds	12.03	%
State General Obligation Bonds	22.30	%
Transportation Revenue Bonds	10.42	%
Water & Sewer Revenue Bonds	6.67	%
Short-Term Investments	1.33	%
Total Value of Securities	98.74	%
Receivables and Other Assets Net of Liabilities	1.26	%
Total Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	23.76	%
AA	24.94	%
A	27.11	%
BBB	17.85	%
BB	1.34	%
B	0.39	%
CCC	0.57	%
Not Rated	4.04	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

5

Sector allocations and credit quality breakdowns
Delaware National High-Yield Municipal Bond Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.31	%
Corporate Revenue Bonds	22.87	%
Education Revenue Bonds	17.48	%
Health Care Revenue Bonds	31.17	%
Housing Revenue Bonds	0.97	%
Lease Revenue Bonds	2.81	%
Pre-Refunded Bonds	1.55	%
Special Tax Revenue Bonds	11.46	%
State General Obligation Bonds	5.61	%
Transportation Revenue Bonds	4.39	%
Short-Term Investments	2.74	%
Total Value of Securities	101.05	%
Liabilities Net of Receivables and Other Assets	(1.05	%)
Total Net Assets	100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA	6.93	%
AA	2.27	%
A	13.75	%
BBB	41.33	%
BB	7.43	%
B	4.79	%
CCC	1.45	%
Not Rated	22.05	%
Total	100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

6

Statements of net assets
Delaware Tax-Free USA Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 98.87%
Corporate Revenue Bonds – 17.53%
	Alliance Airport Authority, Texas Special
	Facilities Revenue (American Airlines Project)
	Series B 5.25% 12/1/29 (AMT)		$	2,250,000	$	1,422,270
•	Brazos, Texas Harbor Industrial Development
	Environmental Facilities Revenue
	(Dow Chemical Co. Project) 5.90% 5/1/38 (AMT)			1,940,000		1,910,085
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)			3,000,000		1,444,800
	•(TXU Energy Co. Project) Series B 6.30% 7/1/32 (AMT)			3,500,000		1,872,640
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2 5.875% 6/1/47			8,040,000		6,047,768
	Clayton County, Georgia Development Authority
	Special Facilities Revenue (Delta Airlines)
	Series B 9.00% 6/1/35 (AMT)			3,800,000		3,855,366
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26			1,695,000		1,560,434
	Harris County, Texas Industrial Development
	Corporation Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23			2,880,000		2,939,818
	Hawaii State Department Budget & Finance Special
	Purpose Revenue (Hawaiian Electric Co. Subsidiary)
	6.50% 7/1/39			5,350,000		5,768,905
	Indianapolis, Indiana Airport Authority Revenue Special
	Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)			2,750,000		2,846,635
	Series 1998 5.50% 5/1/29 (AMT)			2,000,000		1,913,320
	Iowa Finance Authority Pollution Control Facility Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)			3,640,000		3,911,435
	Mason County, West Virginia Pollution Control Revenue
	(Appalachian Power Co. Project) Series K
	6.05% 12/1/24 (AMBAC)			3,000,000		3,036,600
	Mississippi Business Finance Corporation Pollution Control
	Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22			3,000,000		2,999,730
	Missouri State Environmental Improvement & Energy
	Resource Authority Pollution Control Revenue
	Refunding (St. Joseph Light & Power Company Project)
	5.85% 2/1/13 (AMBAC)			2,200,000		2,205,082

7

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
•	Mobile, Alabama Industrial Development Board
	Pollution Control Revenue (Alabama Power Co.)
	Series B 4.875% 6/1/34		$	4,750,000	$	5,098,413
	M-S-R Energy Authority, California Gas Revenue Series A
	6.125% 11/1/29			1,915,000		1,991,868
	6.50% 11/1/39			3,915,000		4,161,762
	Nassau County, New York Tobacco Settlement
	Asset-Backed Series A-3 5.125% 6/1/46			2,215,000		1,789,698
	New Jersey Economic Development Authority Special
	Facility Revenue (Continental Airlines, Inc. Project)
	6.25% 9/15/29 (AMT)			2,000,000		1,771,660
•	New York City, New York Industrial Development
	Agency Special Facilities Revenue
	(American Airlines - JFK International Airport)
	7.625% 8/1/25 (AMT)			4,620,000		4,554,673
	7.75% 8/1/31 (AMT)			2,000,000		2,007,180
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy Generation)
	Series A 5.70% 8/1/20			4,750,000		5,045,308
	Owen County, Kentucky Waterworks System Revenue
	(American Water Co.) Series B 5.625% 9/1/39			3,300,000		3,399,198
	Pennsylvania Economic Development
	Financing Authority Exempt Facilities Revenue
	(Allegheny Energy Supply Co.) 7.00% 7/15/39			6,340,000		7,093,635
	Petersburg, Indiana Pollution Control Revenue
	(Indianapolis Power & Light Co. Project)
	6.375% 11/1/29 (AMT)			5,000,000		5,049,600
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco
	Corp. Project) Series A 6.35% 5/15/35 (AMT)			3,000,000		2,759,880
	Richmond County, Georgia Development Authority
	Environmental Improvement Revenue (International
	Paper Co.) Series B 5.95% 11/15/25 (AMT)			5,000,000		4,911,950
	Salt Verde Financial Corporation, Arizona Gas
	Revenue Senior 5.00% 12/1/37			5,500,000		4,707,725
	South Carolina Jobs-Economic Development Authority
	Industrial Revenue (South Carolina Electric & Gas Co.
	Project) Series B 5.45% 11/1/32 (AMBAC) (AMT)			500,000		494,825

8

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Sugar Creek, Missouri Industrial Development
	Revenue (Lafarge North America Project)
	Series A 5.65% 6/1/37 (AMT)		$	500,000	$	454,075
	Sweetwater County, Wyoming Solid Waste Disposal
	Revenue (FMC Corp. Project) 5.60% 12/1/35 (AMT)			3,250,000		3,025,588
	Tobacco Settlement Financing Corporation, Virginia Senior
	ΩConvertible Series B-2 5.20% 6/1/46			2,500,000		1,530,375
	Series B-1 5.00% 6/1/47			2,020,000		1,387,922
						104,970,223
Education Revenue Bonds – 7.24%
	Amherst, New York Industrial Development Agency
	Civic Facilities Revenue (UBF Faculty Student Housing)
	Series A 5.75% 8/1/30 (AMBAC)			1,300,000		1,319,630
	Broward County, Florida Educational Facilities Authority
	Revenue (Nova Southeastern Project)
	5.25% 4/1/27 (RADIAN)			1,000,000		948,060
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)			3,400,000		3,258,458
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25			3,000,000		3,371,670
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37			3,735,000		2,324,851
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39			4,200,000		3,918,936
	Massachusetts State Health & Educational
	Facilities Authority Revenue
	(Harvard University) Series A 5.50% 11/15/36			4,515,000		5,042,578
	(Nichols College Project) Series C 6.125% 10/1/29			4,350,000		4,175,000
	Missouri State Health & Educational Facilities Authority
	Educational Facilities Revenue (Washington University)
	Series A 5.375% 3/15/39			5,000,000		5,445,899
	New Hampshire Higher Educational & Health Facilities
	Authority Revenue (New Hampton School Issue)
	5.375% 10/1/28			3,070,000		2,755,079

9

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	New Jersey State Educational Facilities Authority Revenue
	(University of Medical & Dentistry)
	Series B 7.50% 12/1/32		$	1,435,000	$	1,626,472
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37			1,750,000		1,322,895
	Saint Louis, Missouri Industrial Development Authority
	Revenue (Confluence Academy Project) Series A
	5.25% 6/15/25			1,150,000		923,841
	5.35% 6/15/32			2,300,000		1,724,011
	Texas A & M University Revenue Financing System
	5.00% 5/15/17			4,060,000		4,745,775
	University of the Virgin Islands Series A 5.375% 6/1/34			500,000		476,840
						43,379,995
Electric Revenue Bonds – 1.70%
	Chelan County, Washington Public Utilities District #001
	Consolidated Revenue (Chelan Hydro System)
	Series A 5.45% 7/1/37 (AMBAC) (AMT)			5,000,000		4,929,700
	Puerto Rico Electric Power Authority Revenue
	Series PP 5.00% 7/1/25 (NATL-RE) (FGIC)			1,000,000		1,008,870
	Series TT 5.00% 7/1/37			1,105,000		1,055,805
	Series WW 5.50% 7/1/38			2,100,000		2,126,460
	Sikeston, Missouri Electric Revenue Refunding
	6.00% 6/1/13 (NATL-RE)			1,000,000		1,063,740
						10,184,575
Escrowed to Maturity Bonds – 6.75%
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue (Southeast
	Missouri Hospital) 5.25% 6/1/16 (NATL-RE)			440,000		496,910
^	Greene County, Missouri Single Family Mortgage Revenue
	Municipal Multiplier (Private Mortgage Insurance)
	6.10% 3/1/16			1,225,000		1,046,995
	Louisiana Public Facilities Authority Hospital Revenue
	(Southern Baptist Hospital, Inc. Project) 8.00% 5/15/12			2,715,000		2,943,141
	New Jersey State Highway Authority Garden State
	Parkway General Revenue (Senior Parkway)
	5.50% 1/1/14 (FGIC)			5,000,000		5,821,300
	5.50% 1/1/15 (FGIC)			7,310,000		8,696,488
	5.50% 1/1/16 (FGIC)			1,000,000		1,201,070

10

		Principal amount			Value
Municipal Bonds (continued)
Escrowed to Maturity Bonds (continued)
	Oklahoma State Turnpike Authority Revenue
	(First Senior) 6.00% 1/1/22		$	13,535,000	$	17,487,224
	Virgin Islands Public Finance Authority Revenue
	Series A 7.30% 10/1/18			2,200,000		2,744,368
						40,437,496
Health Care Revenue Bonds – 12.13%
	Arizona Health Facilities Authority Revenue
	(Banner Health) Series D 5.375% 1/1/32			2,500,000		2,555,175
	Brevard County, Florida Health Facilities Authority Health
	Care Facilities Revenue (Heath First Inc. Project)
	Series B 7.00% 4/1/39			1,610,000		1,759,247
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			2,250,000		2,503,778
	California Municipal Finance Authority Certificates
	of Participation (Community Hospital Center)
	5.50% 2/1/39			4,380,000		3,862,853
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue Unrefunded
	Balance (St. Francis Medical Center)
	Series A 5.50% 6/1/32			1,000,000		1,002,570
	Chatham County, Georgia Hospital Authority Revenue
	(Memorial Health Medical Center)
	Series A 6.125% 1/1/24			1,805,000		1,806,967
@	Cleveland-Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38			1,500,000		1,259,880
	Colorado Health Facilities Authority Revenue (Evangelical
	Lutheran) Series A 5.25% 6/1/34			4,275,000		3,892,901
	Cuyahoga County, Ohio Revenue (Cleveland Clinic Health
	Systems) Series A 5.50% 1/1/29			4,000,000		4,154,240
	Fairfax County, Virginia Industrial Development
	Authority Revenue (Inova Health Services)
	Series A 5.50% 5/15/35			2,500,000		2,619,450
	Gainesville & Hall County, Georgia Development Authority
	Revenue Senior Living Facilities (Lanier Village Estates
	Project) Series C 7.25% 11/15/29			1,000,000		1,020,850
	Illinois Finance Authority Revenue (Silver Cross & Medical
	Centers) 7.00% 8/15/44			5,500,000		5,721,980

11

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28		$	2,000,000	$	1,924,700
	Lucas County, Ohio Health Care Facility Revenue (Sunset
	Retirement Communities) Series A 6.625% 8/15/30			2,000,000		2,018,120
	Maricopa County, Arizona Industrial Development
	Authority Health Facilities Revenue (Catholic Healthcare
	West) Series A 6.00% 7/1/39			3,690,000		3,850,515
	Michigan State Hospital Finance Authority Revenue
	(Ascension Health Credit Group) Series B 5.25% 11/15/26			3,500,000		3,619,000
	(Trinity Health Credit) Series C 5.375% 12/1/30			6,000,000		6,050,760
	New York State Dormitory Authority Revenue
	Non State Supported Debt
	(North Shore LI Jewish Health System)
	Series A 5.50% 5/1/37			3,500,000		3,552,605
	(Orange Regional Medical Center) 6.50% 12/1/21			2,745,000		2,801,547
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian
	Homes) 5.40% 10/1/27			3,260,000		3,096,511
	Ohio State Higher Educational Facility Community
	Revenue (Cleveland Clinic Health System Obligation
	Group) Series A 5.25% 1/1/33			2,000,000		2,062,100
	Oregon Health Science University Revenue
	^(Capital Appreciation Insured) Series A
	5.50% 7/1/21 (NATL-RE)			2,000,000		1,078,180
	Series A 5.75% 7/1/39			3,700,000		3,907,755
	Oregon State Facilities Authority Revenue
	(Samaritan Health Services) Series A 5.25% 10/1/40			2,775,000		2,777,081
	Puerto Rico Industrial, Tourist, Educational, Medical &
	Environmental Control Facilities Revenue
	(Hospital Auxilio Mutuo Obligated Group)
	Series A 6.25% 7/1/24 (NATL-RE)			1,200,000		1,201,140
	Tallahassee, Florida Health Facilities Revenue
	(Tallahassee Memorial Regional Medical Center)
	Series B 6.00% 12/1/15 (NATL-RE)			2,500,000		2,504,600
						72,604,505

12

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds – 0.92%
	Florida Housing Finance Agency
	(Landings at Sea Forest Apartments) Series T
	5.85% 12/1/18 (AMBAC) (FHA) (AMT)		$	300,000	$	300,198
	6.05% 12/1/36 (AMBAC) (FHA) (AMT)			700,000		700,147
	(Spinnaker Cove Apartments) Series G
	6.50% 7/1/36 (AMBAC) (FHA) (AMT)			500,000		500,285
	Missouri State Housing Development Commission
	Mortgage Revenue Single Family Homeowner Loan A
	5.20% 9/1/33 (GNMA) (FNMA) (AMT)			190,000		191,064
	Missouri State Housing Development Commission
	Multifamily Housing Revenue
	(Hyder) Series 3 5.60% 7/1/34 (FHA) (AMT)			1,435,000		1,457,600
	(San Remo) Series 5 5.45% 1/1/36 (FHA) (AMT)			500,000		506,320
	New Mexico Mortgage Finance Authority Revenue
	Series B Class III 6.75% 7/1/25 (GNMA) (FNMA)			90,000		93,694
	Series E 6.95% 1/1/26 (GNMA) (AMT)			105,000		107,837
	Orange County, Florida Housing Finance Authority
	Homeowner Revenue Series B
	5.25% 3/1/33 (GNMA) (FNMA) (AMT)			135,000		135,914
	Oregon Health, Housing, Educational, & Cultural
	Facilities Authority Revenue (Pier Park Project)
	Series A 6.05% 4/1/18 (GNMA) (AMT)			890,000		891,193
	Santa Fe, New Mexico Single Family Mortgage Revenue
	Series B-1 6.20% 11/1/16 (GNMA) (FNMA) (AMT)			135,000		135,184
	Volusia County, Florida Multifamily Housing Finance
	Authority (San Marco Apartments)
	Series A 5.60% 1/1/44 (AGM) (AMT)			500,000		503,450
						5,522,886
Lease Revenue Bonds – 3.36%
	Capital Trust Agency Florida Revenue
	(Fort Lauderdale/Cargo Acquisition Project)
	5.75% 1/1/32 (AMT)			3,750,000		3,151,799
	(Orlando/Cargo Acquisition Project)
	6.75% 1/1/32 (AMT)			2,395,000		2,057,018
	Golden State Tobacco Securitization Corporation
	Settlement Revenue Enhanced Asset-Backed
	Series A 5.00% 6/1/45			3,450,000		2,915,354

13

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Grapevine, Texas Industrial Development Corporation
	Revenue (Air Cargo) 6.50% 1/1/24 (AMT)		$	905,000	$	846,790
	Houston, Texas Industrial Development Corporation
	Revenue (Air Cargo) 6.375% 1/1/23 (AMT)			1,990,000		1,828,671
	Loudoun County, Virginia Industrial Development
	Authority Public Safety Facility Lease Revenue
	Series A 5.25% 12/15/23 (AGM)			700,000		768,145
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue
	(Branson Landing Project) Series A
	5.25% 12/1/19			1,435,000		1,470,631
	5.625% 12/1/28			2,430,000		2,450,339
	(Sewer System Improvement Project)
	Series C 5.00% 3/1/25			605,000		605,163
	(Triumph Foods Project) Series A 5.25% 3/1/25			500,000		502,455
	Puerto Rico Commonwealth Industrial Development
	Company General Purpose Revenue
	Series B 5.375% 7/1/16			1,000,000		1,000,950
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series F 5.25% 7/1/25			930,000		925,090
^	St. Louis, Missouri Industrial Development Authority
	Leasehold Revenue (Convention Center Hotel)
	5.80% 7/15/20 (AMBAC)			3,035,000		1,576,015
						20,098,420
Local General Obligation Bonds – 5.38%
	Boerne, Texas Independent School District Building
	5.25% 2/1/27 (PSF)			4,000,000		4,176,800
	Desert, California Community College District Election
	2004 Series C 5.00% 8/1/37 (AGM)			4,785,000		4,841,080
	Los Angeles, California Unified School District Election of
	2005 Series F 5.00% 1/1/34			6,180,000		6,211,702
	Melrose Park, Illinois Tax Increment
	Series B 6.00% 12/15/19 (AGM)			1,250,000		1,293,463
	New York City, New York
	Series I 5.125% 3/1/23			5,875,000		6,091,259
	Series I-1 5.375% 4/1/36			5,000,000		5,369,800
	Series J 5.25% 6/1/28			2,055,000		2,123,843
	Powell, Ohio 5.50% 12/1/32 (NATL-RE)			2,000,000		2,109,800
						32,217,747

14

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds – 13.18%
	Alexandria, Virginia Industrial Development Authority
	Revenue (Institute for Defense Analyses)
	Series A 5.90% 10/1/30-10 (AMBAC)		$	6,000,000	$	6,266,340
	Deschutes County, Oregon Hospital Facilities Authority
	Hospital Revenue (Cascade Health Services)
	5.60% 1/1/32-12			1,250,000		1,364,025
	Duluth, Minnesota Economic Development Authority
	Health Care Facilities Revenue (Benedictine Health
	System - St. Mary’s Hospital) 5.25% 2/15/33-14			4,000,000		4,615,680
	Florida State Board of Education (Lottery Revenue)
	Series A 6.00% 7/1/14-10 (FGIC)			1,000,000		1,030,380
	Golden State, California Tobacco Securitization
	Corporation Settlement Revenue
	Series B 5.625% 6/1/38-13			7,500,000		8,570,699
	Henrico County, Virginia Economic Development Authority
	Revenue (Bon Secours Health System)
	Series A 5.60% 11/15/30-11			130,000		146,619
	Highlands County, Florida Health Facilities Authority
	(Adventist Health System/Sunbelt)
	Series A 6.00% 11/15/31-11			1,500,000		1,645,665
	Illinois Educational Facilities Authority Student Housing
	Revenue (Educational Advancement Fund - University
	Center Project) 6.25% 5/1/30-12			5,000,000		5,641,850
	Jackson, Ohio Local School District (Stark & Summit
	Counties) School Facilities Construction & Improvement
	5.625% 12/1/25-10 (AGM)			1,000,000		1,041,630
	Jackson, Oregon School District #6 Central Point
	5.25% 6/15/20-10 (FGIC)			1,175,000		1,193,224
	Lee County, Florida Airport Revenue
	Series B 5.75% 10/1/33-10 (AGM)			3,000,000		3,129,930
	Linn County, Oregon Community School District #9
	Lebanon 5.60% 6/15/30-13 (FGIC)			2,000,000		2,304,480
	Maryland State Economic Development Corporation,
	Student Housing Revenue (University of Maryland
	College Park Project) 5.625% 6/1/35-13			1,125,000		1,296,281
	Milledgeville-Baldwin County, Georgia Development
	Authority Revenue (Georgia College & State University
	Foundation Student Housing Project) 6.00% 9/1/33-14			1,000,000		1,211,590

15

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	New Jersey State Educational Facilities Authority
	Revenue (Stevens Institute of Technology)
	Series B 5.25% 7/1/24-14		$	2,085,000	$	2,435,343
	New York City, New York Series J 5.25% 6/1/28-13			2,895,000		3,305,656
	North Carolina Medical Care Commission Hospital
	Revenue (Northeast Medical Center Project)
	5.125% 11/1/34-14			1,250,000		1,465,663
	Osceola County, Florida School Board Certificates of
	Participation Series A 5.25% 6/1/27-12 (AMBAC)			4,000,000		4,422,280
	Payne County, Oklahoma Economic Development
	Authority Student Housing Revenue (Collegiate
	Housing Foundation - Oklahoma State University)
	Series A 6.375% 6/1/30-11			4,000,000		4,300,720
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series G 5.00% 7/1/42-13			525,000		595,718
	Puerto Rico Electric Power Authority Revenue
	Series II 5.25% 7/1/31-12			6,000,000		6,704,700
	Series NN 5.125% 7/1/29-13			1,105,000		1,255,645
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33-14			175,000		202,715
	Richmond, Virginia Public Utilities Revenue
	5.00% 1/15/27-12 (AGM)			10,000,000		10,830,999
	St. Louis, Missouri Airport Revenue (Capital Improvement
	Project) Series A 5.375% 7/1/21-12 (NATL-RE)			1,635,000		1,807,558
	Vancouver, Washington Limited Tax
	5.50% 12/1/25-10 (AMBAC)			1,250,000		1,300,850
	Wisconsin Housing & Economic Developing Authority
	Revenue 6.10% 6/1/21-17 (FHA)			690,000		828,449
						78,914,689
Special Tax Revenue Bonds – 10.51%
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30			8,230,000		8,938,849
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21			3,130,000		3,482,814
	Florida Enterprise Community Development District Special
	Assessment 6.10% 5/1/16 (NATL-RE)			695,000		697,836

16

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35		$	2,315,000	$	921,393
	Hollywood, Florida Community Redevelopment Agency
	Revenue (Beach CRA) 5.625% 3/1/24			1,200,000		1,157,736
	Jacksonville, Florida Excise Taxes Revenue
	Series B 5.00% 10/1/26 (AMBAC)			1,000,000		1,025,640
	Lammersville, California School District Community
	Facilities District #2002 (Mountain House)
	5.125% 9/1/35			4,125,000		3,167,051
	Middlesex County, New Jersey Improvement Authority
	Senior Revenue (Heldrich Center
	Hotel/Conference Project) Series A
	5.00% 1/1/32			1,500,000		846,525
	5.125% 1/1/37			1,500,000		848,415
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Crackerneck Creek Project)
	Series C 5.00% 3/1/26			500,000		500,715
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.50% 6/15/31			1,000,000		944,810
	5.75% 6/15/34			1,935,000		1,866,153
	New York City, New York Transitional Finance Authority
	Series D 5.00% 2/1/31			5,000,000		5,113,200
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)			1,000,000		1,112,690
	New York State Dormitory Authority State
	Personal Income Tax Revenue
	Series A 5.00% 3/15/38			4,545,000		4,732,936
	Series B 5.25% 3/15/38			6,000,000		6,381,900
	Puerto Rico Sales Tax Financing Corporation
	Sales Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32			10,780,000		8,204,550
	•Series A 5.00% 8/1/39			5,500,000		5,775,385
	Series A 5.75% 8/1/37			5,905,000		6,104,412
	Tampa, Florida Sports Authority Revenue Sales Tax
	(Tampa Bay Arena Project) 5.75% 10/1/20 (NATL-RE)			1,000,000		1,092,040
						62,915,050

17

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds – 6.29%
	California State
	6.00% 4/1/38		$	4,060,000	$	4,194,711
	6.50% 4/1/33			2,570,000		2,782,462
	Connecticut State Economic Recovery
	Series A 5.00% 1/1/16			1,960,000		2,278,794
	Guam Government Series A 7.00% 11/15/39			4,295,000		4,600,117
	Maryland State & Local Facilities Land Capital
	Improvement Second Series 5.00% 8/1/16			4,000,000		4,729,400
	Massachusetts State Consolidated Loan
	Series C 5.50% 11/1/15			1,860,000		2,226,308
	Puerto Rico Commonwealth Public Improvement
	Series A 5.125% 7/1/31			7,880,000		7,529,891
	Series A 5.25% 7/1/23			500,000		504,215
	Series A 5.50% 7/1/19 (NATL-RE)			5,000,000		5,350,200
	Series C 6.00% 7/1/39			3,370,000		3,469,247
						37,665,345
Transportation Revenue Bonds – 10.57%
	Bay Area, California Toll Bridge Authority Revenue
	(San Francisco Bay Area) Series F-1 5.625% 4/1/44			4,265,000		4,557,366
	Branson, Missouri Regional Airport Transportation
	Development District Revenue (Branson Airport Project)
	Series B 6.00% 7/1/37 (AMT)			1,500,000		981,585
	Dallas-Fort Worth, Texas International Airport Revenue
	Series A 5.50% 11/1/31 (NATL-RE) (FGIC) (AMT)			1,500,000		1,509,420
	Maryland State Economic Development Corporation
	Revenue (Transportation Facilities Project)
	Series A 5.75% 6/1/35			5,075,000		5,188,985
	Missouri State Highways & Transportation Commission
	State Road Revenue Series B 5.00% 5/1/24			9,000,000		9,888,300
	New York State Thruway Authority General Revenue
	Series H 5.00% 1/1/19 (NATL-RE)			6,240,000		6,931,392
	North Texas Tollway Authority Revenue (First Tier)
	Series A 6.00% 1/1/24			3,345,000		3,638,825
	Series E-3 5.75% 1/1/38			4,320,000		4,898,102
Ω	Pennsylvania State Turnpike Commission Turnpike
	Revenue (Capital Appreciation) Subordinate
	Series E 6.375% 12/1/38			10,000,000		6,400,000

18

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series G 5.00% 7/1/42		$	275,000	$	250,833
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series C 6.00% 7/1/41			6,500,000		6,989,190
	Saint Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.625% 7/1/34			5,995,000		6,351,882
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien Note (Mobility Partners)
	6.875% 12/31/39			5,500,000		5,716,535
						63,302,415
Water & Sewer Revenue Bonds – 3.31%
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.25% 11/1/39			5,500,000		5,852,604
	Missouri State Environmental Improvement & Energy
	Resource Authority Water Pollution Control Revenue
	Unrefunded Balance (State Revolving Fund Project)
	Series A 6.05% 7/1/16 (AGM)			1,060,000		1,064,643
	New York City, New York Municipal Water Finance
	Authority Water & Sewer System Revenue
	Fiscal 2009 Series A 5.75% 6/15/40			4,000,000		4,484,160
	Series A 5.25% 6/15/34			3,705,000		3,781,953
	Tampa, Florida Water and Sewer Revenue
	6.00% 10/1/16 (AGM)			1,000,000		1,203,870
	Virgin Islands Water & Power Authority Water System
	Revenue 5.50% 7/1/17			510,000		512,183
	West Virginia State Water Development Authority
	Revenue (Loan Program III) Series A
	6.375% 7/1/39 (AMBAC) (AMT)			2,890,000		2,926,848
						19,826,261
Total Municipal Bonds (cost $566,886,890)						592,039,607
Short-Term Investments – 0.31%
•Variable Rate Demand Notes – 0.31%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Zoological Society) Series A
	0.29% 6/1/19 (LOC – PNC Bank)			550,000		550,000

19

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Short-Term Investments (continued)
Variable Rate Demand Notes (continued)
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System) Series B-2 0.14% 11/15/35
	(LOC – JPMorgan Chase Bank)		$	400,000	$	400,000
	Pennsylvania State Higher Educational Facilities Authority
	Revenue (Association of Independent Colleges &
	Universities) Series G3 0.24% 11/1/20 (LOC – PNC Bank)			900,000		900,000
Total Short-Term Investments (cost $1,850,000)						1,850,000
Total Value of Securities – 99.18%
	(cost $568,736,890)					593,889,607
Receivables and Other Assets
	Net of Liabilities – 0.82%					4,927,676
Net Assets Applicable to 53,282,571
	Shares Outstanding – 100.00%				$	598,817,283
Net Asset Value – Delaware Tax-Free USA Fund
	Class A ($568,139,835 / 50,553,120 Shares)					$11.24
Net Asset Value – Delaware Tax-Free USA Fund
	Class B ($6,830,173 / 608,068 Shares)					$11.23
Net Asset Value – Delaware Tax-Free USA Fund
	Class C ($23,837,538 / 2,120,523 Shares)					$11.24
Net Asset Value – Delaware Tax-Free USA Fund
	Institutional Class ($9,737 / 860 Shares)					$11.32
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	583,884,892
Undistributed net investment income						66,906
Accumulated net realized loss on investments						(10,287,232	)
Net unrealized appreciation of investments						25,152,717
Total net assets					$	598,817,283

20

§	Pre-Refunded Bonds. Municipals 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.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.
@	Illiquid security. At February 28, 2009, the aggregate amount of illiquid securities was $1,259,880, which represented 0.21% 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.
^	Zero coupon security. The rate shown is the yield at the time of purchase.

Summary of Abbreviations:

ACA — Insured by American Capital Access
AMBAC — Insured by the AMBAC Assurance Corporation
AGM — Insured by Assured Guaranty Municipal Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
FNMA — Federal National Mortgage Association collateral
GNMA — Government National Mortgage Association collateral
LOC — Letter of Credit
NATL-RE — Insured by the National Public Finance Guarantee Corporation
PSF — Insured by the Permanent School Fund
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free USA Fund
Net asset value Class A (A)	$	11.24
Sales charge (4.50% of offering price) (B)		0.53
Offering price	$	11.77

(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

21

Statements of net assets
Delaware Tax-Free USA Intermediate Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 97.41%
Corporate Revenue Bonds – 9.40%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement - U.S.
	Steel Corp. Project) 6.50% 5/1/17		$	2,315,000	$	2,448,321
	Alliance Airport Authority, Texas Special Facilities Revenue
	(Federal Express Corp. Project) 4.85% 4/1/21 (AMT)			2,000,000		1,985,340
•	Brazos, Texas Harbor Industrial Development Environmental
	Facilities Revenue (Dow Chemical Co. Project)
	5.90% 5/1/38 (AMT)			1,010,000		994,426
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)			1,000,000		481,600
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.125% 6/1/24			5,000,000		4,615,700
	5.875% 6/1/47			5,645,000		4,246,225
•	Chesapeake, Virginia Economic Development Authority
	Pollution Control Revenue (Electric & Power Co. Project)
	Series A 3.60% 2/1/32			1,150,000		1,196,863
	Chesterfield County, Virginia Economic Development
	Authority Pollution Control Revenue
	(Virginia Electric & Power) Series A 5.00% 5/1/23			1,460,000		1,568,858
	Clayton County, Georgia Development Authority Special
	Facilities Revenue (Delta Air Lines)
	Series A 8.75% 6/1/29			1,770,000		1,835,419
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23			2,750,000		2,807,118
	Indianapolis, Indiana Airport Authority Revenue Special
	Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)			750,000		776,355
	Iowa Finance Authority Pollution Control Facilities Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)			2,000,000		2,149,140
	Maryland Economic Development Corporation Pollution
	Control Revenue (Potomac Electric Project)
	6.20% 9/1/22			1,780,000		2,043,404
	Memphis-Shelby County, Tennessee Airport Authority
	Special Facilities Revenue (Federal Express Corp. Project)
	5.05% 9/1/12			1,000,000		1,067,550
	Michigan State Strategic Fund Limited Obligation Revenue
	(Dow Chemical Project) Series B-2 6.25% 6/1/14			4,500,000		5,084,865

22

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.)
	Series B 4.875% 6/1/34		$	2,840,000	$	3,048,314
	M-S-R Energy Authority, California Gas Revenue
	Series A 6.125% 11/1/29			3,640,000		3,786,110
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy)
	Series A 5.70% 2/1/14			2,225,000		2,381,128
	Series A 5.70% 8/1/20			4,320,000		4,588,574
	Series C 5.625% 6/1/18			2,370,000		2,534,241
	(USX Project) 5.00% 11/1/15			1,000,000		1,049,230
•	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Exelon Generation Co.
	Project) 5.00% 12/1/42			1,355,000		1,437,370
	Prattville, Alabama Industrial Development Board
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.70% 3/1/24 (AMT)			1,000,000		1,010,490
•	Sabine, Texas River Authority Pollution Control Revenue
	(TXU Electric Co. Project) Series A 5.50% 5/1/22			1,000,000		951,570
	Sugar Creek, Missouri Industrial Development Revenue
	(Lafarge North America Project)
	Series A 5.65% 6/1/37 (AMT)			500,000		454,075
						54,542,286
Education Revenue Bonds – 5.19%
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/26			1,000,000		894,940
	California Statewide Communities Development
	Authority Student Housing Revenue
	(Irvine, LLC - UCI East Campus) 6.00% 5/15/23			3,150,000		3,333,803
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Series B 5.50% 10/1/20			1,030,000		939,391
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25			8,500,000		9,553,064
	Fulton County, Georgia Development Authority Revenue
	(Molecular Science Building Project)
	5.25% 5/1/21 (NATL-RE)			1,000,000		1,098,800

23

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Grand Traverse, Michigan Public School Academy Revenue
	5.00% 11/1/36		$	1,000,000	$	758,780
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 6.25% 6/15/20			1,180,000		1,114,829
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Nichols College Project) Series C 6.125% 10/1/29			1,000,000		959,770
	•(Northeastern University) 4.125% 10/1/37			2,360,000		2,455,792
	Michigan Higher Education Facilities Authority Revenue
	(Kalamazoo College Project) 5.50% 12/1/19			500,000		521,455
	Nassau County, New York Industrial Development Agency
	Civic Facility Revenue (New York Institute of Technology
	Project) Series A 4.75% 3/1/26			1,710,000		1,694,849
	New York State Dormitory Authority Revenue
	(Brooklyn Law School) Series A 5.50% 7/1/18 (RADIAN)			1,000,000		1,037,610
	(Non State Supported Debt - Rockefeller University)
	Series A 5.00% 7/1/27			1,055,000		1,173,519
	Ohio State Higher Educational Facility Revenue
	(John Carroll University) 5.50% 11/15/18			335,000		357,676
	Ohio State University General Receipts Revenue
	Series B 5.25% 6/1/21			180,000		198,936
	University of California Revenue
	Series A 5.125% 5/15/20 (AMBAC)			250,000		269,928
	University of Oklahoma Research Facilities Revenue
	5.00% 3/1/23 (AMBAC)			1,065,000		1,098,217
	University of Virginia General Revenue Series B
	5.00% 6/1/20			1,250,000		1,337,738
	5.00% 6/1/21			1,250,000		1,333,425
						30,132,522
Electric Revenue Bonds – 2.41%
•	Burke County, Georgia Development Authority Pollution
	Control Revenue (Oglethorpe Power)
	Series C-2 4.625% 1/1/37 (AMBAC)			3,320,000		3,333,247
	Metropolitan Government Nashville & Davidson County,
	Tennessee Electric Revenue Series B 5.50% 5/15/14			1,000,000		1,168,470
	Orlando, Florida Utilities Commission Water & Electric
	Revenue 5.25% 10/1/20			555,000		596,769

24

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Rochester, Minnesota Electric Utilities Revenue
	Series C 5.00% 12/1/18 (NATL-RE)		$	2,000,000	$	2,275,800
	South Carolina State Public Service Authority Revenue
	Series A 5.125% 1/1/21 (AGM)			1,000,000		1,078,660
	Texas Municipal Power Agency Revenue
	4.00% 9/1/11 (AMBAC)			750,000		751,845
	Vernon, California Electric System Revenue
	Series A 5.125% 8/1/21			4,500,000		4,761,225
						13,966,016
Escrowed to Maturity Bonds – 0.08%
	California State Economic Recovery Series A 5.25% 7/1/14			225,000		265,104
	Southcentral, Pennsylvania General Authority Revenue
	(Wellspan Health Obligated Project) 5.625% 5/15/26			180,000		192,596
						457,700
Health Care Revenue Bonds – 11.79%
	Allegheny County, Pennsylvania Municipal Development
	Authority Revenue (University of Pittsburgh Medical
	Center) Series A 5.00% 9/1/14			4,000,000		4,519,160
	Berks County, Pennsylvania Hospital Authority Revenue
	(Reading Hospital & Medical Center Project)
	Series A-3 5.25% 11/1/24			4,405,000		4,591,376
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			2,250,000		2,503,778
	California Municipal Finance Authority Certificates of
	Participation (Community Hospitals Center)
	5.25% 2/1/24			1,695,000		1,588,198
	California Statewide Communities Development Authority
	Revenue (Kaiser Permanente) Series A 5.00% 4/1/19			5,325,000		5,760,478
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue
	(St. Francis Medical Center) Series A 5.50% 6/1/34			640,000		640,902
	Chatham County, Georgia Hospital Authority Revenue
	(Memorial Health Medical Center)
	Series A 6.125% 1/1/24			905,000		905,986
@	Cleveland-Cuyahoga County, Ohio Port Authority
	Revenue (Saint Clarence - Geac) Series A
	6.125% 5/1/26			715,000		642,778

25

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Social Ministries)
	6.25% 1/1/24		$	2,625,000	$	2,740,684
	Cuyahoga County, Ohio Revenue
	(Cleveland Clinic Health System) Series A 6.00% 1/1/21			1,000,000		1,080,560
	Dauphin County, Pennsylvania General Authority Health
	System Revenue (Pinnacle Health System Project)
	Series A 6.00% 6/1/29			4,500,000		4,711,050
	Georgia Medical Center Hospital Authority Revenue
	(Spring Harbor Green Island Project) 5.25% 7/1/37			2,300,000		1,817,023
	Lycoming County, Pennsylvania Authority Health System
	Revenue (Susquehanna Health System Project)
	5.50% 7/1/28			2,500,000		2,494,075
	Maryland State Health & Higher Education Facilities
	Authority Revenue
	•(John Hopkins Health Systems) 5.00% 5/15/46			790,000		869,387
	(Union Hospital of Cecil County) 5.625% 7/1/32			500,000		505,260
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Caregroup) Series E-2 5.375% 7/1/21			1,970,000		2,037,433
	Michigan State Hospital Finance Authority Revenue
	(Oakwood Obligation Group) 5.50% 11/1/14			2,230,000		2,369,420
	Minneapolis, Minnesota Health Care System Revenue
	(Fairview Health) Series A 6.375% 11/15/23			3,710,000		4,161,322
	New York State Dormitory Authority Revenue Non State
	Supported Debt
	(North Shore LI Jewish Health System) Series A 5.50% 5/1/30			1,700,000		1,754,247
	(Orange Regional Medical Center) 6.50% 12/1/21			2,000,000		2,041,200
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.40% 10/1/27			780,000		740,883
	Ohio State Higher Educational Facilities Commission
	Revenue (Cleveland Clinic Health System
	Obligation Group) Series A
	5.00% 1/1/17			2,000,000		2,224,920
	5.00% 1/1/18			1,000,000		1,104,270
	Oregon State Facilities Authority Revenue (Samaritan
	Health Services) Series A 5.25% 10/1/40			1,685,000		1,686,264

26

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Scottsdale, Arizona Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.00% 9/1/19		$	3,065,000	$	3,155,540
	South Carolina Jobs-Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.50% 8/1/26			5,000,000		4,993,349
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Nicollet Health Services) Series C 5.50% 7/1/18			4,240,000		4,556,516
	St. Mary Hospital Authority, Pennsylvania Health System
	Revenue (Catholic Health East) Series A 5.25% 11/15/16			1,200,000		1,278,360
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/25			1,000,000		977,040
						68,451,459
Housing Revenue Bonds – 1.28%
	California Housing Finance Agency Revenue
	(Home Mortgage) Series M 5.95% 8/1/25 (AMT)			2,700,000		2,810,538
	Puerto Rico Housing Finance Authority Subordinate
	(Capital Fund Modernization) 5.50% 12/1/16			4,120,000		4,623,299
						7,433,837
Lease Revenue Bonds – 2.24%
	Capital Trust Agency Florida Revenue (Fort Lauderdale/
	Cargo Acquisition Project) 5.75% 1/1/32 (AMT)			1,750,000		1,470,840
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Refunding Asset-Backed Series A			1,170,000		1,169,988
	5.00% 6/1/18
	5.00% 6/1/21 (AMBAC)			1,000,000		982,530
	Michigan State Building Authority Revenue Series I
	5.00% 10/15/24			2,860,000		2,906,990
	5.50% 10/15/18			2,050,000		2,157,994
	New York State Municipal Bond Bank Agency Special
	School Purpose Revenue Series C 5.25% 6/1/22			1,000,000		1,052,660
•	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series J 5.00% 7/1/28			1,000,000		1,028,920
	Tobacco Settlement Financing New York Revenue
	(Asset-Backed) Series B 5.00% 6/1/12			2,060,000		2,240,806
						13,010,728

27

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds – 7.62%
	Chicago, Illinois Board of Education Refunding Dedicated
	Revenue Series B 5.00% 12/1/23 (AMBAC)		$	3,500,000	$	3,717,245
	Chicago, Illinois Modern Schools Across Chicago
	Series J 5.00% 12/1/23 (AMBAC)			2,865,000		3,056,239
	Chicago, Illinois Project & Refunding
	Series C 5.50% 1/1/40 (NATL-RE) (FGIC)			2,940,000		2,994,831
	Dallas, Texas 5.125% 2/15/15			3,000,000		3,507,120
	Fairfax County, Virginia Refunding & Public Improvement
	5.25% 4/1/14			3,500,000		4,081,840
	Gwinnett County, Georgia School District
	5.00% 2/1/11			3,000,000		3,132,780
	5.00% 2/1/21			4,975,000		5,923,434
	Lansing, Michigan Community College
	(College Building and Site)
	5.00% 5/1/21 (NATL-RE)			1,325,000		1,426,137
	Los Angeles, California Unified School District
	(Election 1997) Series F
	5.00% 7/1/21 (FGIC)			2,880,000		2,993,040
	(Election 2004) Series G
	5.00% 7/1/13 (AMBAC)			2,000,000		2,227,640
	5.00% 7/1/31 (AMBAC)			3,870,000		3,880,178
	Middlesex County, New Jersey Improvement Authority
	Revenue (County Guaranteed Open Space Trust)
	5.25% 9/15/20			1,000,000		1,122,250
	New York City, New York
	Series A-1 5.00% 8/1/19			3,500,000		3,886,995
	Series G 5.25% 8/1/15			1,000,000		1,114,950
	Series I 5.00% 8/1/21			1,000,000		1,065,610
	Series J 5.50% 6/1/23			100,000		105,260
						44,235,549
§Pre-Refunded Bonds – 5.78%
	Benton & Linn Counties, Oregon School District #509J
	5.00% 6/1/21-13 (AGM)			1,000,000		1,131,050
	Cook County, Illinois Series A 5.375% 11/15/21-11 (FGIC)			2,160,000		2,291,695
	Duluth, Minnesota Economic Development
	Authority Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)			1,000,000		1,153,920
	5.25% 2/15/28-14
	5.50% 2/15/23-14			1,000,000		1,163,570

28

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Forest Grove, Oregon Revenue Campus
	(Pacific University) 6.30% 5/1/25-10 (RADIAN)		$	1,000,000	$	1,011,140
	Illinois Educational Facilities Authority Student
	Housing Revenue (Educational Advancement -
	University Center Project) 6.00% 5/1/22-12			750,000		842,235
	Lancaster County, Pennsylvania Hospital Authority
	Revenue (Lancaster General Hospital Project)
	5.75% 3/15/21-13			1,000,000		1,151,630
	Lunenburg County, Virginia
	Series B 5.25% 2/1/29-13 (NATL-RE)			715,000		813,684
	Miami-Dade County, Florida Educational Facilities
	Authority Revenue (University of Miami)
	Series A 5.00% 4/1/34-14 (AMBAC)			3,500,000		4,018,071
	Michigan State Building Authority Revenue
	(Facilities Program)
	Series I 5.00% 10/15/24-11			140,000		150,130
	Series I 5.50% 10/15/18-11			125,000		135,061
	Minneapolis, Minnesota Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			500,000		565,935
	New Jersey State Educational Facilities Authority
	Revenue (Georgian Court College Project)
	Series C 6.50% 7/1/33-13			500,000		590,385
	New Jersey State Transportation Trust Fund Authority
	(Transportation System) Series C 5.50% 6/15/22-13			1,700,000		1,952,688
	New York City, New York Series J 5.50% 6/1/23-13			900,000		1,034,892
	North Texas Health Facilities Development Corporation
	Hospital Revenue (United Regional Health Care System,
	Inc. Project) 6.00% 9/1/23-13			1,000,000		1,158,980
•	Ohio State Higher Educational Facility Revenue
	Adjustable Medium Term (Kenyon College Project)
	4.70% 7/1/37-13			1,000,000		1,119,910
	Ohio State University General Receipts
	(Ohio State University) Series B 5.25% 6/1/21-13			820,000		933,185
	Pennsylvania State First Series 5.125% 1/15/19-11			3,515,000		3,699,643
	Pennsylvania State Higher Educational Facilities Authority
	College & University Revenue (Geneva College Project)
	6.125% 4/1/22-12			1,000,000		1,111,960

29

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series J 5.50% 7/1/21-14		$	1,000,000	$	1,165,190
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.50% 7/1/23-14			2,000,000		2,337,720
	Southcentral, Pennsylvania General Authority Revenue
	(Welllspan Health Obligated Project)
	5.625% 5/15/26-11			820,000		880,967
	University of North Carolina Revenue (Chapel Hill)
	Series A 5.375% 12/1/14-11			2,000,000		2,127,280
	Virginia State Resource Authority Clean Water Revenue
	(State Revolving Fund) 6.00% 10/1/16-10			1,000,000		1,034,810
						33,575,731
Resource Recovery Revenue Bonds – 0.20%
	Pennsylvania Economic Development Financing
	Authority Resource Recovery Revenue
	(Subordinate Colver Project)
	Series G 5.125% 12/1/15 (AMT)			1,300,000		1,174,069
						1,174,069
Special Tax Revenue Bonds – 12.03%
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.00% 9/1/16			1,200,000		1,074,408
	Brooklyn Arena Local Development Corporation
	New York Pilot Revenue (Barclays Center Project)
	6.50% 7/15/30			5,500,000		5,973,714
	California State Economic Recovery Series A
	5.25% 7/1/14			775,000		883,864
	5.25% 7/1/21			2,740,000		3,048,853
	Casa Grande, Arizona Excise Tax Revenue
	5.00% 4/1/22 (AMBAC)			1,600,000		1,633,760
	Columbia County, Georgia Sales Tax 5.00% 4/1/16			1,265,000		1,478,241
	Dallas, Texas Convention Center Hotel Development
	Revenue Series A
	5.00% 1/1/24			3,420,000		3,513,298
	5.25% 1/1/23			5,375,000		5,682,288

30

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Guam Government Limited Obligation Revenue
	(Section 30) Series A
	5.375% 12/1/24		$	1,750,000	$	1,774,413
	5.625% 12/1/29			1,185,000		1,203,119
	Hampton, Virginia Convention Center Revenue
	5.25% 1/15/23 (AMBAC)			1,000,000		1,045,620
	Louisiana State Citizens Property Insurance
	Corporation Assessment Revenue
	Series C-2 6.75% 6/1/26 (ASSURED GTY)			3,600,000		4,215,348
	Metropolitan Pier & Exposition Authority, Illinois
	Dedicate State Tax Revenue
	(McCormick Place Expansion Project)
	Series A 5.50% 12/15/24 (NATL-RE) (FGIC)			2,000,000		2,027,300
	Middlesex County, New Jersey Improvement Authority
	Senior Revenue (Heldrich Center Hotel/Conference
	Project) Series A 5.00% 1/1/32			1,000,000		564,350
@	Modesto, California Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36			1,500,000		1,103,475
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.00% 6/15/11 (FGIC)			2,750,000		2,809,345
	5.50% 6/15/31			1,000,000		944,810
	5.625% 6/15/18			1,000,000		1,000,250
•	New York City, New York Transitional Finance Authority
	Revenue Refunding - Future Tax Secured
	Series A 5.50% 11/1/26			1,000,000		1,075,890
	New York State Urban Development Corporation Revenue
	(State Personal Income Tax) Series A-1 5.00% 12/15/28			4,000,000		4,300,280
	Oregon Department of Administrative Services Lottery
	Revenue Series A 5.25% 4/1/26			2,000,000		2,253,180
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A
	•5.00% 8/1/39			4,500,000		4,725,315
	5.25% 8/1/27			4,685,000		4,793,270
	6.125% 8/1/29			2,500,000		2,584,725
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement
	(Francis Place Redevelopment Project) 5.625% 11/1/25			1,000,000		860,860

31

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
@	St. Joseph, Missouri Industrial Development Authority Tax
	Increment Revenue (Shoppes at North Village Project)
	Series A 5.10% 11/1/19		$	250,000	$	230,938
	Series B 5.375% 11/1/23			1,000,000		891,470
	Washington State Motor Vehicle Fuel Tax
	Series B 5.00% 7/1/16			4,250,000		4,949,890
	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue Refunding-
	Sales Tax-2nd Lien-Area B 5.00% 12/1/20			1,500,000		1,533,015
	Wyoming State Loan & Investment Board Facilities
	Revenue 5.00% 10/1/24			1,550,000		1,635,421
						69,810,710
State General Obligation Bonds – 22.30%
	California State 5.25% 11/1/17			1,000,000		1,068,090
	California State Various Purpose
	5.00% 10/1/18			5,000,000		5,393,750
	6.50% 4/1/33			4,500,000		4,872,015
	California Statewide Communities Development Authority
	Revenue (Purchase Proposition 1A Receivables Program)
	5.00% 6/15/13			2,690,000		2,898,636
	Connecticut State Economic Recovery
	Series A 5.00% 1/1/16			4,700,000		5,464,455
	Connecticut State Series C 5.00% 11/1/24			2,000,000		2,252,800
	Florida State Board Education Capital Outlay Public
	Education Series D 5.75% 6/1/22			2,000,000		2,045,200
	Georgia State
	5.00% 8/1/12			3,125,000		3,452,750
	5.00% 7/1/17			4,810,000		5,711,779
	Series D 5.00% 7/1/11			6,865,000		7,292,848
	Guam Government Series A 7.00% 11/15/39			1,560,000		1,670,822
	Illinois State Refunding Series B 5.00% 1/1/13			3,475,000		3,797,411
	Maryland State 5.00% 8/1/17			1,500,000		1,754,265
	Maryland State & Local Facilities Loan Capital Improvement
	First Series 5.00% 3/15/19			3,675,000		4,222,355
	Second Series 5.00% 7/15/14			975,000		1,134,422
	Series C 5.00% 11/1/17			2,750,000		3,276,323

32

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Massachusetts State Consolidated Loan
	Series A 5.25% 8/1/13		$	5,000,000	$	5,716,650
	Series C 5.50% 11/1/15			4,090,000		4,895,485
	Minnesota State 5.00% 6/1/14			900,000		1,042,416
	Mississippi State Series A 5.00% 10/1/17			4,860,000		5,690,331
	North Carolina State Public Improvement Series A
	5.00% 3/1/12			4,000,000		4,357,000
	5.00% 3/1/15			1,200,000		1,403,772
	North Carolina State Refunding Series B 5.00% 4/1/15			4,000,000		4,684,480
	Ohio State
	Series A 5.00% 6/15/13			3,750,000		4,219,763
	Series D 5.00% 9/15/14			3,500,000		4,060,735
	Pennsylvania State
	5.50% 2/1/13			3,200,000		3,628,160
	Second Series A 5.00% 8/1/13			4,000,000		4,545,480
	Puerto Rico Commonwealth Government Development
	Bank 4.75% 12/1/15 (NATL-RE)			4,765,000		4,904,757
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/16 (ASSURED GTY)			2,110,000		2,329,060
	5.25% 7/1/22			3,470,000		3,499,391
	5.25% 7/1/23			1,125,000		1,134,484
	5.50% 7/1/17			4,415,000		4,728,244
•	Puerto Rico Commonwealth Series A 5.00% 7/1/30			1,000,000		1,043,350
•	Puerto Rico Public Finance Corporation Commonwealth
	Appropriation (LOC-Puerto Rico Government Bank)
	Series A 5.75% 8/1/27			1,000,000		1,034,750
	Virginia State
	5.00% 6/1/23			2,000,000		2,277,720
	Series D 5.00% 6/1/19			5,715,000		6,809,537
	Washington State Variable Purpose Series A 5.00% 7/1/16			1,000,000		1,164,680
						129,478,166
Transportation Revenue Bonds – 10.42%
	Broward County, Florida Airport System Revenue
	Series O 5.375% 10/1/29			3,895,000		4,020,068
	Charlotte, North Carolina Airport Revenue
	(Charlotte Douglas) Series A
	5.00% 7/1/13			2,375,000		2,640,881
	5.00% 7/1/15			750,000		848,738

33

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Chicago, Illinois O’ Hare International Airport
	Revenue General-Airport-Third Lien
	Series A-2 5.75% 1/1/20 (AGM) (AMT)		$	1,000,000	$	1,050,850
	Dallas-Fort Worth, Texas International Airport Revenue
	Series A
	5.00% 11/1/22			680,000		722,024
	5.00% 11/1/23			750,000		792,285
	5.00% 11/1/24			400,000		420,352
	Georgia Federal Highway Road and Tollway Authority
	Revenue Bonds 5.00% 6/1/10 (NATL-RE)			2,000,000		2,025,500
	Idaho Housing & Finance Association Grant Revenue
	(Antic Federal Highway Transportation)
	Series A 5.25% 7/15/21 (ASSURED GTY)			2,760,000		3,124,154
	Maryland State Economic Development Revenue
	(Transportation Facilities Project)
	Series A 5.375% 6/1/25			2,470,000		2,511,694
	Metropolitan, New York Transportation Authority Revenue
	Series A 5.00% 11/15/18			2,500,000		2,812,375
	Series C 6.50% 11/15/28			2,860,000		3,288,571
	Metropolitan, Washington D.C. Airport Authority Systems
	Revenue Series A 5.50% 10/1/19 (NATL-RE) (FGIC) (AMT)			1,000,000		1,042,160
	New York State Thruway Authority Revenue
	(General Highway and Bridge Trust Fund)
	Series B 5.25% 4/1/13 (AMBAC)			3,300,000		3,721,773
	North Texas Tollway Authority Revenue System (First Tier)
	Series A 6.00% 1/1/20			3,925,000		4,401,260
	•Series E-3 5.75% 1/1/38			2,470,000		2,800,535
	Pennsylvania State Turnpike Commission Revenue
	Series A 5.25% 12/1/20 (AMBAC)			1,230,000		1,360,515
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series D
	5.50% 7/1/28			2,020,000		2,172,247
	5.625% 7/1/29			1,685,000		1,816,801
	Saint Louis, Missouri Airport Revenue
	(Lambert-St. Louis International)
	Series A-1 6.125% 7/1/24			3,780,000		4,050,119
	Texas Private Activity Bond Surface Transportation
	Corporate Senior Note (Mobility Partners)
	7.50% 12/31/31			3,565,000		3,872,695

34

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Texas State Transportation Commission Highway Fund
	Revenue (First Tier) 5.00% 4/1/18		$	1,700,000	$	1,960,202
	Triborough, New York Bridge & Tunnel Authority Revenue
	Series A 5.00% 11/15/17			1,720,000		2,003,181
	•Series B-1 5.00% 11/15/25			4,000,000		4,453,040
	•Series B-3 5.00% 11/15/38			1,800,000		2,021,526
	Virginia Port Authority Commonwealth Port Fund Revenue
	Resolution 5.00% 7/1/12 (AMT)			500,000		536,600
						60,470,146
Water & Sewer Revenue Bonds – 6.67%
	Alabama Water Pollution Control Authority Revenue
	5.50% 8/15/23 (AMBAC)			1,000,000		1,001,980
	Arizona Water Infrastructure Finance Authority Revenue
	Water Quality) Series A 5.00% 10/1/21			2,430,000		2,788,279
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.00% 11/1/25			2,925,000		3,172,777
	Series B 5.50% 11/1/23 (AGM)			3,000,000		3,300,390
	Dallas, Texas Waterworks & Sewer System Revenue
	5.00% 10/1/24 (AGM)			6,500,000		6,520,865
	Florida Water Pollution Control Financing Corporation
	Revenue (Water Pollution Control)
	Series A 5.00% 1/15/25			5,000,000		5,401,700
	King County, Washington Sewer Revenue Refunding
	Series B 5.00% 1/1/14 (NATL-RE)			3,500,000		3,985,065
	Massachusetts State Water Pollution Abatement Trust
	5.00% 8/1/16			2,170,000		2,545,388
	New York State Environmental Facilities Corporation
	Revenue (State Clean Water & Drinking Water
	Revolving Foundation)
	Series A 5.00% 6/15/22			1,405,000		1,588,170
	Series D 5.00% 9/15/23			3,360,000		3,730,978
	Portland, Oregon Sewer System Revenue (First Lien)
	Series A 5.00% 6/15/18			4,000,000		4,662,880
						38,698,472
Total Municipal Bonds (cost $541,154,180)						565,437,391

35

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Short-Term Investments – 1.33%
•Variable Rate Demand Notes – 1.33%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Zoological Society)
	Series A 0.29% 6/1/19 (LOC – PNC Bank)		$	100,000	$	100,000
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System)
	Series B-2 0.14% 11/15/35 (LOC – JPMorgan Chase Bank)			700,000		700,000
	Pittsburgh, Pennsylvania Water & Sewer Authority Water &
	Sewer Systems Revenue First Lien
	Series B2 0.16% 9/1/39 (LOC – PNC Bank)			500,000		500,000
	Robbinsdale, Minnesota Revenue (North Memorial)
	Series A-3 0.14% 5/1/33 (LOC – Wells Fargo Bank)			4,800,000		4,800,000
	University of Minnesota
	Series C 0.23% 12/1/36 (SPA – JPMorgan Chase Bank)			1,600,000		1,600,000
Total Short-Term Investments (cost $7,700,000)						7,700,000
Total Value of Securities – 98.74%
	(cost $548,854,180)					573,137,391
Receivables and Other Assets
	Net of Liabilities – 1.26%					7,342,504
Net Assets Applicable to 49,441,743
	Shares Outstanding – 100.00%				$	580,479,895
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class A ($528,683,883 / 45,028,348 Shares)						$11.74
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class B ($675,102 / 57,555 Shares)						$11.73
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class C ($50,502,968 / 4,303,717 Shares)						$11.73
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Institutional Class ($617,942 / 52,123 Shares)						$11.86

36

Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	561,570,141
Undistributed net investment income		16,225
Accumulated net realized loss on investments		(5,389,682	)
Net unrealized appreciation of investments		24,283,211
Total net assets	$	580,479,895

§	Pre-Refunded Bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.
@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $2,868,661, which represented 0.49% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”

Summary of abbreviations:
AMBAC — Insured by the AMBAC Assurance Corporation
AGM — Insured by Assured Guaranty Municipal Corporation
AMT — Subject to Alternative Minimum Tax

ASSURED GTY — Insured by the Assured Guaranty Corporation
CDFI — Community Development Financial Institutions
FGIC — Insured by the Financial Guaranty Insurance Company
LOC — Letter of Credit
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
SPA — Stand-by Purchase Agreement

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free USA Intermediate Fund
Net asset value Class A (A)	$	11.74
Sales charge (2.75% of offering price) (B)		0.33
Offering price	$	12.07

(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

37

Statements of net assets
Delaware National High-Yield Municipal Bond Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 98.31%
Corporate Revenue Bonds – 22.87%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp.) 6.875% 5/1/30		$	1,000,000	$	1,035,800
•	Beaver County, Pennsylvania Industrial Development
	Authority Pollution Control Revenue (First Energy
	General Corp. Project) Series C 7.125% 6/1/28 (AMT)			1,000,000		1,047,920
•	Brazos, Texas Harbor Industrial Development
	Environmental Facilities Revenue (Dow Chemical Co.
	Project) 5.90% 5/1/38 (AMT)			190,000		187,070
•	Brazos, Texas River Authority Pollution Control Revenue
	(TXU Energy Co. Project) Series B 6.30% 7/1/32 (AMT)			1,000,000		535,040
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2 6.50% 6/1/47			1,000,000		826,430
	Clayton County, Georgia Development Authority Special
	Facilities Revenue (Delta Airlines)
	Series B 9.00% 6/1/35 (AMT)			1,000,000		1,014,570
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26			750,000		690,458
	De Soto Parish, Louisiana Environmental Improvement
	Revenue (International Paper Co. Project)
	Series A 6.35% 2/1/25 (AMT)			1,650,000		1,663,464
	Golden State, California Tobacco Securitization Settlement
	Revenue Refunding Asset-Backed Senior Series A-1
	5.75% 6/1/47			3,000,000		2,212,109
	Gulf Coast, Texas Waste Disposal Authority Revenue
	(Valero Energy Corp. Project) 6.65% 4/1/32 (AMT)			1,000,000		1,010,210
	Hawaii State Department Budget & Finance Special Purpose
	Revenue (Hawaiian Electric Co. Subsidiary) 6.50% 7/1/39			970,000		1,045,951
	Michigan Tobacco Settlement Finance Authority
	Revenue Asset-Backed Series A 6.00% 6/1/48			555,000		439,971
	Mississippi Business Finance Corporation Pollution
	Control Revenue (System Energy Resources, Inc.
	Project) 5.90% 5/1/22			900,000		899,919
	M-S-R Energy Authority, California Gas Revenue
	Series C 6.50% 11/1/39			1,000,000		1,063,030
	Nassau County, New York Tobacco Settlement
	Asset-Backed Series A-3 5.125% 6/1/46			525,000		424,195
	New Jersey Economic Development Authority Special
	Facility Revenue (Continental Airlines Inc. Project)
	6.40% 9/15/23 (AMT)			1,000,000		917,680

38

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	New York City, New York Industrial Development Agency
	Special Facilities Revenue
	•(American Airlines - JFK International Airport)
	7.75% 8/1/31 (AMT)		$	1,000,000	$	1,003,590
	(JetBlue Airways Corp. Project) 5.125% 5/15/30 (AMT)			1,000,000		759,690
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39			1,000,000		1,118,870
	Petersburg, Indiana Pollution Control Revenue (Indianapolis
	Power & Light Co. Project) 6.375% 11/1/29 (AMT)			1,000,000		1,009,920
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco
	Corp. Project) Series A 6.35% 5/15/35 (AMT)			500,000		459,980
	Salt Verde Financial Corporation, Arizona Gas Revenue
	Senior 5.00% 12/1/37			1,000,000		855,950
	St. John Baptist Parish, Louisiana Revenue (Marathon
	Oil Corp.) Series A 5.125% 6/1/37			1,000,000		938,950
	Sugar Creek, Missouri Industrial Development Revenue
	(Lafarge North America Project)
	Series A 5.65% 6/1/37 (AMT)			500,000		454,075
	Sweetwater County, Wyoming Solid Waste Disposal
	Revenue (FMC Corp. Project) 5.60% 12/1/35 (AMT)			1,000,000		930,950
	Tobacco Settlement Financing Corporation, Virginia
	Senior Series B-1 5.00% 6/1/47			1,000,000		687,090
	Toledo, Lucas County, Ohio Port Authority Development
	Revenue (Toledo Express Airport Project) Series C
	6.375% 11/15/32 (AMT)			1,000,000		946,310
						24,179,192
Education Revenue Bonds – 17.48%
	California Statewide Communities Development
	Authority Revenue (California Baptist University
	Project) Series A 5.50% 11/1/38			1,000,000		810,170
	California Statewide Communities Development
	Authority Student Housing Revenue (East Campus
	Apartments, LLC) Series A 5.625% 8/1/34 (ACA)			1,000,000		958,370
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Subordinate Series B 6.00% 10/1/35			1,000,000		855,360

39

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Idaho Housing & Finance Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		$	1,000,000	$	1,142,630
	Indiana State Finance Authority Revenue Educational Facilities
	(Drexel Foundation - Thea Bowman Academy
	Charter School) 7.00% 10/1/39			1,000,000		1,030,170
	(Irvington Community) Series A 9.00% 7/1/39			1,000,000		1,159,989
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39			1,000,000		933,080
	Maryland State Economic Development Corporation
	Student Housing Revenue (University of Maryland
	College Park Projects) 5.75% 6/1/33			930,000		943,950
@	Maryland State Health & Higher Educational
	Facilities Authority Revenue (Washington
	Christian Academy Project) Series A 5.50% 7/1/38			1,170,000		561,612
	Massachusetts State Health & Educational
	Facilities Authority Revenue
	(Nichols College Project) Series C 6.125% 10/1/29			1,000,000		959,770
	(Springfield College) 5.625% 10/15/40			1,000,000		999,200
	Michigan Public Education Facilities Authority Revenue
	(Limited Obligation - Landmark Academy)
	7.00% 12/1/39			1,000,000		1,014,460
	Minnesota State Higher Education Facilities Authority
	Revenue (Bethel University) Series 6-R 5.50% 5/1/37			1,000,000		946,070
	New Jersey State Educational Facilities Authority Revenue
	(Fairleigh Dickinson Project) Series C 5.50% 7/1/23			750,000		751,088
	(University of Medical & Dentistry) Series B 7.50% 12/1/32			1,000,000		1,133,430
	Ohio State Higher Educational Facility Revenue
	(Otterbein College Project) Series A 5.50% 12/1/28			950,000		1,015,265
	Oregon State Facilities Authority Revenue
	(College Housing Northwest Project)
	Series A 5.45% 10/1/32			1,000,000		874,320
	Pennsylvania State Higher Educational Facilities
	Authority Revenue (Edinboro University Foundation
	Student Housing) 6.00% 7/1/42			1,000,000		957,360
	Philadelphia, Pennsylvania Authority for Industrial
	Development Revenue (First Philadelphia Charter
	Project) Series A 5.75% 8/15/32			745,000		673,756

40

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37		$	1,000,000	$	755,940
						18,475,990
Health Care Revenue Bonds – 31.17%
	Alhambra, California Revenue (Atherton Baptist Homes)
	Series A 7.625% 1/1/40			1,000,000		1,010,660
	Apple Valley, Minnesota Economic Development
	Authority Health Care Revenue (Augustana Home
	St. Paul Project) Series A 6.00% 1/1/40			1,000,000		902,920
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence
	Project) 5.875% 7/1/30			1,000,000		998,140
	Brevard County, Florida Healthcare Facilities Authority
	Health Care Facilities Revenue (Heath First Inc. Project)
	Series B 7.00% 4/1/39			1,000,000		1,092,700
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			900,000		1,001,511
	California Municipal Finance Authority Certificates of
	Participation (Community Hospital Center) 5.50% 2/1/39			730,000		643,809
	California Statewide Communities Development
	Authority Revenue (Senior Living - Southern California)
	7.25% 11/15/41			500,000		533,320
	Chatham County, Georgia Hospital Authority Revenue
	(Memorial Health Medical Center)
	Series A 6.125% 1/1/24			750,000		750,818
@	Cleveland-Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38			1,000,000		839,920
	Colorado Health Facilities Authority Revenue
	(Christian Living Community Project)
	Series A 5.75% 1/1/37			500,000		425,805
	East Rochester, New York Housing Authority Revenue
	Refunding (Senior Living - Woodland Village Project)
	5.50% 8/1/33			500,000		414,700
	Gainesville & Hall County, Georgia Development
	Authority Revenue Senior Living Facilities
	(Lanier Village Estates Project) Series C 7.25% 11/15/29			1,000,000		1,020,850
	Hamden, Connecticut Facilities Revenue
	(Whitney Center Project) Series A 7.75% 1/1/43			1,000,000		1,041,400

41

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount		Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Hawaii State Department Budget & Finance Special
	Purpose Senior Living Revenue
	(Craigside Project) Series A 9.00% 11/15/44	$	1,000,000	$	1,085,470
	Illinois Finance Authority Revenue
	(Provena Health) Series A 7.75% 8/15/34		1,000,000		1,128,860
	(Silver Cross & Medical Centers) 7.00% 8/15/44		1,000,000		1,040,360
	Illinois Health Facilities Authority Revenue
	(Elmhurst Memorial Healthcare Project) 5.625% 1/1/28		1,000,000		962,350
	Kentucky Economic Development Finance Authority
	Hospital Revenue (Owensboro Medical Health System)
	Series A 6.50% 3/1/45		1,000,000		995,880
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Brethren Village Project) Series A 6.375% 7/1/30		725,000		690,461
	Lebanon County, Pennsylvania Health Facilities Authority
	Center Revenue (Pleasant View Retirement)
	Series A 5.30% 12/15/26		1,000,000		854,590
	Medford, Oregon Hospital Facilities Authority Revenue
	(Asante Health System) Series A 5.00% 8/15/40 (AGM)		1,000,000		996,570
	New Jersey Health Care Facilities Financing Authority
	Revenue (St. Josephs Healthcare System) 6.625% 7/1/38		860,000		867,843
	New York State Dormitory Authority Revenue Non State
	Supported Debt (Orange Regional Medical Center)
	6.25% 12/1/37		1,000,000		906,330
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.60% 10/1/36		1,000,000		898,330
	Orange County, Florida Health Facilities Authority
	Revenue (Orlando Regional Healthcare)
	Series C 5.25% 10/1/35		1,000,000		984,720
	Oregon State Facilities Authority Revenue
	(Samaritan Health Services) Series A 5.25% 10/1/40		1,000,000		1,000,750
	Pennsylvania Economic Development Financing Authority
	Health System Revenue (Evalbert Einstein Healthcare)
	Series A 6.25% 10/15/23		1,000,000		1,065,450
	Pennsylvania State Higher Educational Facilities Authority
	Revenue (University of Pittsburgh Medical Center)
	Series E 5.00% 5/15/31		1,000,000		1,003,100

42

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Richland County, Ohio Hospital Facilities Revenue
	(Medcentral Health System Project)
	Series B 6.375% 11/15/30		$	500,000	$	508,260
	South Carolina Jobs-Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.75% 8/1/39			1,000,000		976,390
@	St. Joseph County, Indiana Industrial Economic
	Development Revenue (Madison Center Project)
	5.50% 2/15/21			1,150,000		1,150,138
	St. Paul, Minnesota Housing & Redevelopment
	Authority Hospital Revenue (Healtheast Project)
	6.00% 11/15/30			1,000,000		927,340
	Travis County, Texas Health Facilities Development
	Corporation Revenue (Westminister Manor Project)
	7.125% 11/1/40			1,000,000		1,005,790
	Washington State Health Care Facilities Authority Revenue
	(Multicare Health System)
	Series B 6.00% 8/15/39 (ASSURED GTY)			1,250,000		1,328,237
	Winchester, Virginia Industrial Development Authority
	Residential Care Facility Revenue (Westminster -
	Canterbury Project) Series A 5.30% 1/1/35			1,000,000		890,060
	Yavapai County, Arizona Industrial Development Authority
	Hospital Revenue (Yavapai Regional Medical Center)
	Series A 6.00% 8/1/33			1,000,000		1,004,860
						32,948,692
Housing Revenue Bonds – 0.97%
	North Carolina Housing Finance Agency Homeownership
	Revenue Series 27-A 5.55% 7/1/38 (AMT)			1,000,000		1,028,150
						1,028,150
Lease Revenue Bonds – 2.81%
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Branson Landing Project)
	Series A 5.50% 12/1/24			720,000		730,577
	New York, New York City Industrial Development Agency
	Special Airport Facilities (Airis JFK I, LLC Project)
	Series A 5.50% 7/1/28 (AMT)			905,000		749,593
	Oklahoma City, Oklahoma Industrial & Cultural Facilities
	Subordinated (Air Cargo - Obligated Group)
	6.75% 1/1/23 (AMT)			1,160,000		1,035,358

43

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Onondaga County, New York Industrial Development
	Authority Revenue Subordinated (Air Cargo Project)
	7.25% 1/1/32 (AMT)		$	500,000	$	456,240
						2,971,768
§Pre-Refunded Bonds – 1.55%
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence
	Project) 6.30% 7/1/32-12			1,000,000		1,127,270
	Minnesota State Higher Education Facilities Authority
	Revenue (College of Art & Design Project)
	Series 5-D 6.75% 5/1/26-10			500,000		505,855
						1,633,125
Special Tax Revenue Bonds – 11.46%
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.875% 9/1/39			1,000,000		806,990
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30			1,000,000		1,086,130
	Chicago, Illinois Tax Increment Allocation
	(Chatham Ridge Redevelopment Project)
	5.95% 12/15/12			750,000		764,430
	Farms New Kent, Virginia Community Development
	Authority Special Assessment Series C 5.80% 3/1/36			1,000,000		735,090
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35			665,000		264,677
	Lancaster, California Redevelopment Agency Tax Allocation
	(Combined Redevelopment Project Areas) 6.875% 8/1/39			500,000		534,475
	Middlesex County, New Jersey Improvement Authority
	Senior Revenue (Heldrich Center Hotel/Conference
	Project) Series A
	5.00% 1/1/32			500,000		282,175
	5.125% 1/1/37			870,000		492,081
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax) 5.75% 6/15/34			965,000		930,665
	Prescott Valley, Arizona Improvement District Special
	Assessment (Sewer Collection System Roadway Repair
	Project) 7.90% 1/1/12			80,000		83,364
	Puerto Rico Sales Tax Financing Corporation Sales Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32			2,030,000		1,545,012
	Series A 5.75% 8/1/37			940,000		971,744

44

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement
	(Francis Place Redevelopment Project) 5.625% 11/1/25		$	1,200,000	$	1,033,032
@	Southwestern Illinois Development Authority Revenue
	(Local Government Program - Collinsville Limited Project)
	5.35% 3/1/31			500,000		376,485
@	St. Joseph, Missouri Industrial Development Authority Tax
	Increment Revenue (Shoppes at North Village Project) Series A
	5.375% 11/1/24			1,000,000		878,990
	5.50% 11/1/27			500,000		433,200
	Winter Garden Village at Fowler Groves Community
	Development District, Florida Special Assessment Revenue
	5.65% 5/1/37			975,000		895,304
						12,113,844
State General Obligation Bonds – 5.61%
	Georgia State Series I 5.00% 7/1/20			3,000,000		3,577,320
	Guam Government Series A 6.75% 11/15/29			1,565,000		1,659,776
	Puerto Rico Commonwealth Refunding
	(Public Improvement) Series C 6.00% 7/1/39			675,000		694,879
						5,931,975
Transportation Revenue Bonds – 4.39%
	Branson, Missouri Regional Airport Transportation Development
	District (Airport Project) Series A 6.00% 7/1/37			500,000		343,435
	Maryland State Economic Development Corporation
	Revenue (Transportation Facilities Project) Series A
	5.75% 6/1/35			1,000,000		1,022,460
	Sacramento County, California Airport Services Revenue
	(PFC/Grant) Series C 6.00% 7/1/41			1,000,000		1,075,260
	Saint Louis, Missouri Airport Revenue (Lambert - St. Louis
	International) Series A-1 6.625% 7/1/34			1,090,000		1,154,888
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien Note (Mobility Partners)
	6.875% 12/31/39			1,000,000		1,039,370
						4,635,413
Total Municipal Bonds (cost $105,045,685)						103,918,149

45

Statements of net assets
Delaware National High-Yield Municipal Bond Fund

		Principal amount			Value
Short-Term Investments – 2.74%
•Variable Rate Demand Notes – 2.74%
	Colorado Educational & Cultural Facilities Authority
	Revenue (National Jewish Federal Bond Program)
	0.17% 2/1/35 (LOC – Bank of America)		$	400,000	$	400,000
	Lincoln County, Wyoming Pollution Control Revenue
	(Exxon Project) 0.09% 8/1/15			1,000,000		1,000,000
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System) Series B-2 0.14% 11/15/35
	(LOC – JPMorgan Chase Bank)			1,000,000		1,000,000
	Pittsburgh, Pennsylvania Water & Sewer Authority
	Water & Sewer System Revenue First Lien
	Series B2 0.16% 9/1/39 (LOC – PNC Bank)			500,000		500,000
Total Short-Term Investments (cost $2,900,000)						2,900,000
Total Value of Securities – 101.05%
	(cost $107,945,685)					106,818,149
Liabilities Net of Receivables
	and Other Assets – (1.05%)					(1,107,181		)
Net Assets Applicable to 11,034,719
	Shares Outstanding – 100.00%				$	105,710,968
Net Asset Value – Delaware National High-Yield Municipal
	Bond Fund Class A ($88,480,462 / 9,242,211 Shares)						$9.57
Net Asset Value – Delaware National High-Yield Municipal
	Bond Fund Class B ($1,483,006 / 154,620 Shares)						$9.59
Net Asset Value – Delaware National High-Yield Municipal
	Bond Fund Class C ($15,727,307 / 1,635,800 Shares)						$9.61
Net Asset Value – Delaware National High-Yield Municipal
	Bond Fund Institutional Class ($20,193 / 2,088 Shares)						$9.67
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	109,461,683
Distributions in excess of net investment income						(3,573		)
Accumulated net realized loss on investments						(2,619,606		)
Net unrealized depreciation of investments						(1,127,536		)
Total net assets					$	105,710,968

46

§	Pre-Refunded Bonds. Municipals 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.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.
@	Illiquid security. At February 28, 2009, the aggregate amount of illiquid securities was $4,240,345, which represented 4.01% 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.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
CDFI — Community Development Financial Institutions
LOC — Letter of Credit

Net Asset Value and Offering Price Per Share –
Delaware National High-Yield Municipal Bond Fund
Net asset value Class A (A)	$	9.57
Sales charge (4.50% of offering price) (B)		0.45
Offering price	$	10.02

(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

47

Statements of operations
	Six Months Ended February 28, 2010 (Unaudited)

	Delaware			Delaware				Delaware
	Tax-Free			Tax-Free USA				National High-Yield
	USA Fund			Intermediate Fund				Municipal Bond Fund
Investment Income:
Interest	$	15,823,075			$	11,932,099			$	2,878,338
Expenses:
Management fees		1,580,586				1,339,967				248,614
Distribution expenses – Class A		659,364				736,117				96,787
Distribution expenses – Class B		37,298				3,942				7,333
Distribution expenses – Class C		110,388				221,646				54,835
Dividend disbursing and transfer
agent fees and expenses		211,714				281,972				41,307
Accounting and administration expenses		116,327				107,428				18,047
Registration fees		46,063				55,250				27,271
Legal fees		35,657				35,312				6,798
Reports and statements to shareholders		32,674				40,832				3,625
Audit and tax		23,485				20,392				7,802
Trustees’ fees		17,519				16,108				2,696
Pricing fees		9,756				8,739				4,473
Insurance fees		9,179				7,847				1,226
Custodian fees		6,410				6,322				973
Consulting fees		3,741				3,077				464
Due and services		1,503				1,305				172
Trustees’ expenses		1,353				1,208				186
		2,903,017				2,887,464				522,609
Less expenses absorbed or waived		(456,714	)			(311,068	)			(91,794	)
Less waived distribution expenses – Class A		—				(368,058	)			—
Total operating expenses		2,446,303				2,208,338				430,815
Net Investment Income		13,376,772				9,723,761				2,447,523

48

	Delaware		Delaware			Delaware
	Tax-Free		Tax-Free USA			National High-Yield
	USA Fund		Intermediate Fund			Municipal Bond Fund
Net Realized and Unrealized Gain
on Investments:
Net realized gain on investments	$	2,540,203		$	3,410,910		$	695,527
Net change in unrealized appreciation/
depreciation of investments		15,634,707			9,666,141			5,309,989
Net Realized and Unrealized Gain
on Investments		18,174,910			13,077,051			6,005,516
Net Increase in Net Assets
Resulting from Operations	$	31,551,682		$	22,800,812		$	8,453,039

See accompanying notes

49

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	13,376,772		$	24,505,230
Net realized gain (loss) on investments		2,540,203			(2,838,744	)
Net change in unrealized
appreciation/depreciation of investments		15,634,707			1,152,242
Net increase in net assets resulting from operations		31,551,682			22,818,728
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(12,804,772	)		(23,405,639	)
Class B		(144,406	)		(352,615	)
Class C		(427,491	)		(681,841	)
Institutional Class		(90	)		(32	)
		(13,376,759	)		(24,440,127	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		38,339,077			118,535,984
Class B		86,533			70,203
Class C		3,686,170			6,869,985
Institutional Class		8,470			1,022
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		6,835,343			12,514,345
Class B		64,405			172,056
Class C		314,296			484,088
Institutional Class		29			32
		49,334,323			138,647,715

50

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(30,689,671	)	$	(104,004,049	)
Class B		(1,740,782	)		(3,624,046	)
Class C		(1,392,772	)		(3,541,888	)
Institutional Class		(15	)		—
		(33,823,240	)		(111,169,983	)
Increase in net assets derived from
capital share transactions		15,511,083			27,477,732
Net Increase in Net Assets		33,686,006			25,856,333
Net Assets:
Beginning of period		565,131,277			539,274,944
End of period	$	598,817,283		$	565,131,277
Undistributed net investment income	$	66,906		$	66,893

See accompanying notes

51

Statements of changes in net assets
Delaware Tax-Free USA Intermediate Fund

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	9,723,761		$	15,162,112
Net realized gain (loss) on investments		3,410,910			(2,348,573	)
Net change in unrealized
appreciation/depreciation of investments		9,666,141			11,254,947
Net increase in net assets resulting from operations		22,800,812			24,068,486
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(9,079,674	)		(14,270,823	)
Class B		(11,234	)		(25,400	)
Class C		(631,171	)		(817,862	)
Institutional Class		(1,682	)		(26	)
		(9,723,761	)		(15,114,111	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		131,573,672			235,187,166
Class B		—			184,940
Class C		13,312,641			19,373,068
Institutional Class		611,565			1,022
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		6,222,993			9,817,928
Class B		8,086			18,329
Class C		469,170			581,579
Institutional Class		1,374			24
		152,199,501			265,164,056

52

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(80,877,568	)	$	(201,015,285	)
Class B		(213,474	)		(616,595	)
Class C		(4,580,396	)		(5,491,621	)
Institutional Class		(789	)		—
		(85,672,227	)		(207,123,501	)
Increase in net assets derived from
capital share transactions		66,527,274			58,040,555
Net Increase in Net Assets		79,604,325			66,994,930
Net Assets:
Beginning of period		500,875,570			433,880,640
End of period	$	580,479,895		$	500,875,570
Undistributed net investment income	$	16,225		$	16,225

See accompanying notes

53

Statements of changes in net assets
Delaware National High-Yield Municipal Bond Fund

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,447,523		$	4,135,883
Net realized gain (loss) on investments		695,527			(898,271	)
Net change in unrealized
appreciation/depreciation of investments		5,309,989			(3,755,920	)
Net increase (decrease) in net assets resulting
from operations		8,453,039			(518,308	)
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,151,324	)		(3,657,847	)
Class B		(35,511	)		(110,366	)
Class C		(263,855	)		(335,892	)
Institutional Class		(161	)		(47	)
		(2,450,851	)		(4,104,152	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		22,562,529			12,889,514
Class B		14,560			289,157
Class C		8,164,964			2,516,187
Institutional Class		18,454			1,016
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,310,493			2,236,012
Class B		16,927			50,724
Class C		167,611			220,675
Institutional Class		158			45
		32,255,696			18,203,330

54

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(9,428,997	)	$	(10,110,767	)
Class B		(100,818	)		(1,746,311	)
Class C		(1,048,199	)		(1,588,149	)
Institutional Class		(15	)		—
		(10,578,029	)		(13,445,227	)
Increase in net assets derived from
capital share transactions		21,677,667			4,758,103
Net Increase in Net Assets		27,679,855			135,643
Net Assets:
Beginning of period		78,031,113			77,895,470
End of period	$	105,710,968		$	78,031,113
Undistributed (distributions in excess of)
net investment income	$	(3,573	)	$	13,405

See accompanying notes

55

Financial highlights
Delaware Tax-Free USA 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 and portfolio turnover have been annualized and total return has not been annualized.

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

See accompanying notes

56

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.890		$10.970		$11.230		$11.570		$11.760		$11.460
	0.257		0.479		0.462		0.466		0.458		0.512
	0.350		(0.081	)	(0.260	)	(0.337	)	(0.186	)	0.300
	0.607		0.398		0.202		0.129		0.272		0.812
	(0.257	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)	(0.512	)
	(0.257	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)	(0.512	)
	$11.240		$10.890		$10.970		$11.230		$11.570		$11.760
	5.61%		3.91%		1.82%		1.08%		2.42%		7.23%
	$568,140		$536,420		$510,822		$735,584		$656,813		$453,982
	0.80%		0.84%		0.85%		0.87%		0.86%		0.86%
	0.96%		0.97%		0.94%		0.95%		1.00%		0.98%
	4.63%		4.60%		4.13%		4.03%		3.97%		4.43%
	4.47%		4.47%		4.04%		3.95%		3.83%		4.31%
	28%		66%		28%		36%		41%		47%

57

Financial highlights
Delaware Tax-Free USA 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

58

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.880		$10.960		$11.230		$11.570		$11.760		$11.460
	0.214		0.399		0.378		0.378		0.370		0.423
	0.350		(0.080	)	(0.270	)	(0.337	)	(0.186	)	0.300
	0.564		0.319		0.108		0.041		0.184		0.723
	(0.214	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)	(0.423	)
	(0.214	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)	(0.423	)
	$11.230		$10.880		$10.960		$11.230		$11.570		$11.760
	5.21%		3.13%		0.96%		0.32%		1.63%		6.42%
	$6,830		$8,168		$11,812		$17,286		$22,189		$16,507
	1.56%		1.60%		1.61%		1.63%		1.63%		1.63%
	1.72%		1.73%		1.70%		1.71%		1.73%		1.71%
	3.87%		3.84%		3.37%		3.27%		3.20%		3.66%
	3.71%		3.71%		3.28%		3.19%		3.10%		3.58%
	28%		66%		28%		36%		41%		47%

59

Financial highlights
Delaware Tax-Free USA 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

60

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.890		$10.970		$11.230		$11.570		$11.760		$11.460
	0.214		0.399		0.377		0.378		0.370		0.423
	0.350		(0.080	)	(0.260	)	(0.337	)	(0.186	)	0.300
	0.564		0.319		0.117		0.041		0.184		0.723
	(0.214	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)	(0.423	)
	(0.214	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)	(0.423	)
	$11.240		$10.890		$10.970		$11.230		$11.570		$11.760
	5.21%		3.13%		0.96%		0.41%		1.63%		6.42%
	$23,837		$20,542		$16,641		$16,871		$15,110		$5,963
	1.56%		1.60%		1.61%		1.63%		1.63%		1.63%
	1.72%		1.73%		1.70%		1.71%		1.73%		1.71%
	3.87%		3.84%		3.37%		3.27%		3.20%		3.66%
	3.71%		3.71%		3.28%		3.19%		3.10%		3.58%
	28%		66%		28%		36%		41%		47%

61

Financial highlights
Delaware Tax-Free USA Fund Institutional Class

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

	Six Months Ended			12/31/082
	2/28/101			to
	(Unaudited)			8/31/09
Net asset value, beginning of period		$10.890		$10.020
Income from investment operations:
Net investment income		0.267		0.322
Net realized and unrealized gain on investments		0.430		0.870
Total from investment operations		0.697		1.192
Less dividends and distributions from:
Net investment income		(0.267	)	(0.322	)
Total dividends and distributions		(0.267	)	(0.322	)
Net asset value, end of period		$11.320		$10.890
Total return3		6.35%		12.15%
Ratios and supplemental data:
Net assets, end of period (000 omitted)		$10		$1
Ratio of expenses to average net assets		0.56%		0.60%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		0.72%		0.73%
Ratio of net investment income to average net assets		4.87%		4.84%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		4.71%		4.71%
Portfolio turnover		28%		66%	4

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

2 Date of commencement of operations; ratios have been annualized and total return has not been annualized.

3 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. 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.

4 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

62

Financial highlights
Delaware Tax-Free USA Intermediate 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 and portfolio turnover have been annualized and total return has not been annualized.

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

See accompanying notes

64

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.460		$11.250		$11.210		$11.470		$11.610		$11.390
	0.213		0.388		0.383		0.414		0.408		0.410
	0.280		0.210		0.041		(0.260	)	(0.140	)	0.220
	0.493		0.598		0.424		0.154		0.268		0.630
	(0.213	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)	(0.410	)
	(0.213	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)	(0.410	)
	$11.740		$11.460		$11.250		$11.210		$11.470		$11.610
	4.33%		5.49%		3.83%		1.34%		2.38%		5.63%
	$528,684		$459,782		$407,729		$306,215		$204,525		$120,273
	0.75%		0.75%		0.75%		0.76%		0.75%		0.79%
	1.02%		1.03%		1.03%		1.03%		1.07%		1.11%
	3.69%		3.51%		3.38%		3.60%		3.56%		3.55%
	3.42%		3.23%		3.10%		3.33%		3.24%		3.23%
	30%		47%		28%		40%		37%		18%

65

Financial highlights
Delaware Tax-Free USA Intermediate 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

66

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.450		$11.240		$11.200		$11.460		$11.610		$11.380
	0.164		0.294		0.287		0.317		0.311		0.313
	0.280		0.210		0.041		(0.260	)	(0.150	)	0.230
	0.444		0.504		0.328		0.057		0.161		0.543
	(0.164	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)	(0.313	)
	(0.164	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)	(0.313	)
	$11.730		$11.450		$11.240		$11.200		$11.460		$11.610
	3.90%		4.61%		2.95%		0.48%		1.43%		4.83%
	$675		$861		$1,272		$1,786		$2,413		$3,203
	1.60%		1.60%		1.60%		1.61%		1.60%		1.64%
	1.72%		1.73%		1.73%		1.73%		1.77%		1.81%
	2.84%		2.66%		2.53%		2.75%		2.71%		2.70%
	2.72%		2.53%		2.40%		2.63%		2.54%		2.53%
	30%		47%		28%		40%		37%		18%

67

Financial highlights
Delaware Tax-Free USA Intermediate 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

68

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.450		$11.240		$11.200		$11.470		$11.610		$11.390
	0.164		0.294		0.287		0.317		0.311		0.313
	0.280		0.210		0.041		(0.270	)	(0.140	)	0.220
	0.444		0.504		0.328		0.047		0.171		0.533
	(0.164	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)	(0.313	)
	(0.164	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)	(0.313	)
	$11.730		$11.450		$11.240		$11.200		$11.470		$11.610
	3.90%		4.60%		2.95%		0.39%		1.52%		4.74%
	$50,503		$40,232		$24,880		$28,237		$28,004		$25,125
	1.60%		1.60%		1.60%		1.61%		1.60%		1.64%
	1.72%		1.73%		1.73%		1.73%		1.77%		1.81%
	2.84%		2.66%		2.53%		2.75%		2.71%		2.70%
	2.72%		2.53%		2.40%		2.63%		2.54%		2.53%
	30%		47%		28%		40%		37%		18%

69

Financial highlights
Delaware Tax-Free USA Intermediate Fund Institutional Class

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

	Six Months Ended			12/31/082
	2/28/101			to
	(Unaudited)			8/31/09
Net asset value, beginning of period		$11.460		$10.800
Income from investment operations:
Net investment income		0.205		0.269
Net realized and unrealized gain on investments		0.400		0.660
Total from investment operations		0.605		0.929
Less dividends and distributions from:
Net investment income		(0.205	)	(0.269	)
Total dividends and distributions		(0.205	)	(0.269	)
Net asset value, end of period		$11.860		$11.460
Total return3		5.32%		8.68%
Ratios and supplemental data:
Net assets, end of period (000 omitted)		$618		$1
Ratio of expenses to average net assets		0.60%		0.60%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		0.72%		0.73%
Ratio of net investment income to average net assets		3.84%		3.65%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		3.72%		3.52%
Portfolio turnover		30%		47%	4

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

2 Date of commencement of operations; ratios have been annualized and total return has not been annualized.

3 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. 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.

4 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

70

Financial highlights
Delaware National High-Yield Municipal Bond 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

72

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$8.920		$9.510		$10.030		$10.320		$10.380		$10.010
	0.257		0.505		0.484		0.482		0.477		0.503
	0.652		(0.595	)	(0.520	)	(0.290	)	(0.060	)	0.371
	0.909		(0.090	)	(0.036	)	0.192		0.417		0.874
	(0.259	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)	(0.504	)
	(0.259	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)	(0.504	)
	$9.570		$8.920		$9.510		$10.030		$10.320		$10.380
	10.26%		(0.38%	)	(0.37%	)	1.82%		4.15%		8.93%
	$88,481		$68,812		$67,762		$65,143		$68,663		$66,451
	0.85%		0.90%		0.90%		0.91%		0.90%		0.93%
	1.06%		1.08%		1.04%		1.03%		1.02%		1.01%
	5.52%		6.06%		4.94%		4.66%		4.66%		4.92%
	5.31%		5.88%		4.80%		4.54%		4.54%		4.84%
	37%		67%		24%		37%		73%		36%

73

Financial highlights
Delaware National High-Yield Municipal Bond 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

74

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$8.940		$9.530		$10.050		$10.350		$10.400		$10.030
	0.223		0.440		0.410		0.404		0.400		0.426
	0.652		(0.592	)	(0.520	)	(0.300	)	(0.050	)	0.371
	0.875		(0.152	)	(0.110	)	0.104		0.350		0.797
	(0.225	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)	(0.427	)
	(0.225	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)	(0.427	)
	$9.590		$8.940		$9.530		$10.050		$10.350		$10.400
	9.84%		(1.11%	)	(1.12%	)	0.96%		3.47%		8.10%
	$1,483		$1,448		$3,135		$5,972		$9,519		$13,046
	1.60%		1.65%		1.65%		1.66%		1.65%		1.68%
	1.81%		1.83%		1.79%		1.78%		1.77%		1.76%
	4.77%		5.31%		4.19%		3.91%		3.91%		4.17%
	4.56%		5.13%		4.05%		3.79%		3.79%		4.09%
	37%		67%		24%		37%		73%		36%

75

Financial highlights
Delaware National High-Yield Municipal Bond 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 and portfolio turnover have been annualized and total return has not been annualized.

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

76

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$8.960		$9.550		$10.070		$10.360		$10.420		$10.040
	0.223		0.441		0.410		0.404		0.400		0.426
	0.652		(0.592	)	(0.520	)	(0.290	)	(0.060	)	0.381
	0.875		(0.151	)	(0.110	)	0.114		0.340		0.807
	(0.225	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)	(0.427	)
	(0.225	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)	(0.427	)
	$9.610		$8.960		$9.550		$10.070		$10.360		$10.420
	9.82%		(1.11%	)	(1.12%	)	1.06%		3.36%		8.19%
	$15,727		$7,770		$6,998		$4,848		$5,332		$5,234
	1.60%		1.65%		1.65%		1.66%		1.65%		1.68%
	1.81%		1.83%		1.79%		1.78%		1.77%		1.76%
	4.77%		5.31%		4.19%		3.91%		3.91%		4.17%
	4.56%		5.13%		4.05%		3.79%		3.79%		4.09%
	37%		67%		24%		37%		73%		36%

77

Financial highlights
Delaware National High-Yield Municipal Bond Fund Institutional Class

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

	Six Months Ended			12/31/082
	2/28/101			to
	(Unaudited)			8/31/09
Net asset value, beginning of period		$8.930		$7.590
Income from investment operations:
Net investment income		0.265		0.342
Net realized and unrealized gain on investments		0.742		1.338
Total from investment operations		1.007		1.680
Less dividends and distributions from:
Net investment income		(0.267	)	(0.340	)
Total dividends and distributions		(0.267	)	(0.340	)
Net asset value, end of period		$9.670		$8.930
Total return3		11.37%		22.55%
Ratios and supplemental data:
Net assets, end of period (000 omitted)		$20		$1
Ratio of expenses to average net assets		0.60%		0.65%
Ratio of expenses to average net assets
prior to fees waived and expense paid indirectly		0.81%		0.85%
Ratio of net investment income to average net assets		5.77%		6.41%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		5.56%		6.21%
Portfolio turnover		37%		67%	4

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

2 Date of commencement of operations; ratios have been annualized and total return has not been annualized.

3 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. 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.

4 Portfolio turnover is representative of the Fund for the entire year.

See accompanying notes

78

Notes to financial statements
Delaware National Tax-Free Funds	February 28, 2010 (Unaudited)

Delaware Group® Tax-Free Fund is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund and Delaware Tax-Free New York Fund. Delaware Group Tax-Free Fund and Voyageur Mutual Funds are individually referred to as a “Trust” and collectively as the “Trusts”. These financial statements and the related notes pertain to Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund (each referred to as a “Fund” or, collectively, as the “Funds”). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended. The Funds offer Class A, Class B, Class C and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and up to 2.75% for Delaware Tax-Free USA Intermediate Fund. 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 for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund; and of 0.75% for Delaware Tax-Free USA Intermediate Fund if redeemed within the first 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 of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class B shares of Delaware Tax-Free USA Intermediate Fund were sold with a CDSC that declines from 2% to zero depending upon the period of time the shares were held. Class B shares of the Delaware Tax-Free USA Intermediate Fund will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months. Institutional Class shares are not subject to a sales charge and are offered for sale exclusively to certain eligible investors.

The investment objective of the Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund is to seek as high a level of current interest income exempt from federal income tax as is available from municipal obligations and as is consistent with prudent investment management and preservation of capital.

The investment objective of Delaware National Municipal Bond Fund is to seek a high level of current income exempt from federal income tax primarily through investment in medium- and lower-grade municipal obligations.

79

Notes to financial statements
Delaware National Tax-Free Funds

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 by an independent pricing service or broker. 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. 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” and 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.

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 each Fund’s tax positions taken on federal income tax returns for all open tax years (August 31, 2006 – August 31, 2009), and has concluded that no provision for federal income tax is required for each Fund’s 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 reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

80

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

The Funds 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 period ended February 28, 2010.

On July 1, 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (Codification). The Codification became the single source of authoritative nongovernmental U.S. GAAP, superseding existing literature of the FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other sources. The Codification is effective for interim and annual periods ending after September 15, 2009. The Funds adopted the Codification for the six months ended February 28, 2010. There was no impact to financial statements as the Codification requirements are disclosure-only in nature.

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

Effective January 1, 2010, DMC has voluntarily agreed to waive that portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure that total annual 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), do not exceed 0.56%, 0.60%, and 0.60% of average daily net assets of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund, respectively. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by the Funds’ Boards and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Funds and may be discontinued at any time because they are voluntary. Prior to January 1, 2010, DMC had contractually agreed to waive that portion, if any, of its management fee

81

Notes to financial statements
Delaware National Tax-Free Funds

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

and reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, brokerage fees, certain insurance costs, and nonroutine expenses), did not exceed 0.60%, 0.60%, and 0.65% of average daily net assets of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund, respectively.

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, each Fund pays 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 28, 2010, each Fund was charged for these services as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$14,566	$13,452	$2,260

DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.30% of the average daily net assets of the Class A shares for Delaware Tax-Fee USA Intermediate Fund, 0.25% of the average daily net assets of the Class A shares for the Delaware National High-Yield Municipal Bond Fund and 1.00% of the average daily net assets of the Class B and C shares for all the Funds. The Board for Delaware Tax-Free USA Fund has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares that went into effect on June 1, 1992. The total 12b-1 fees to be paid by Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.30% of the average daily net assets representing shares that were acquired on or after June 1, 1992. Effective April 21, 2006, the maximum amount of the Class A 12b-1 fees was reduced to 0.25% and the total 12b-1 fees to be paid to Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.25% of the average daily net assets representing shares that were acquired on or after June 1, 1992. All Class A shareholders will bear 12b-1 fees at the same rate, the blended rate based upon the allocation of the rates described above. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to waive distribution and service fees through January 1, 2010 in order to prevent distribution and service fees of Class A shares from exceeding 0.15% of average daily net assets for the Delaware Tax-Free USA Intermediate Fund.

82

At February 28, 2010, each Fund had liabilities payable to affiliates as follows:

	Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
	USA Fund	USA Intermediate Fund	Municipal Bond Fund
Investment management fees
payable to DMC	$175,722	$175,161	$27,920
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC	27,704	39,920	5,181
Distribution fees payable
to DDLP	128,858	97,693	29,071
Other expenses payable to
DMC and affiliates*	22,991	21,586	3,823

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

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2010, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$18,938	$17,605	$3,000

For the six months ended February 28, 2010, DDLP earned commissions on sales of Class A shares for each Fund as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$21,932	$28,344	$27,367

83

Notes to financial statements
Delaware National Tax-Free Funds

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

For the six months ended February 28, 2010, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A, Class B and Class C shares, respectively. These commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-dealer on sales of those shares. The amounts received were as follows:

	Delaware Tax-Free		Delaware Tax-Free		Delaware National High-Yield
	USA Fund		USA Intermediate Fund		Municipal Bond Fund
Class A	$	—	$	—	$	—
Class B		3,393		1,110		372
Class C		516		3,694		370

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 28, 2010, the Funds made purchases and sales of investment securities other than short-term investments as follows:

	Delaware Tax-Free		Delaware Tax-Free		Delaware National High-Yield
	USA Fund		USA Intermediate Fund		Municipal Bond Fund
Purchases	$	98,834,212	$	133,570,531	$	35,717,071
Sales		79,978,707		77,731,939		16,184,970

At February 28, 2010, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2010, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

	Delaware Tax-Free			Delaware Tax-Free				Delaware National High-Yield
	USA Fund			USA Intermediate Fund				Municipal Bond Fund
Cost of investments	$	568,736,890			$	548,854,180			$	107,916,548
Aggregate unrealized
appreciation	$	40,171,659			$	28,056,038			$	4,526,685
Aggregate unrealized
depreciation		(15,018,942	)			(3,772,827	)			(5,625,084	)
Net unrealized appreciation
(depreciation)	$	25,152,717			$	24,283,211			$	(1,098,399	)

84

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-tier hierarchy of inputs is summarized below.

Level 1 – inputs are quoted prices in active markets

Level 2 – inputs are observable, directly or indirectly

Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of February 28, 2010:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
Municipal Bonds	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Level 1		$	—		$	—		$	—
Level 2			593,889,607			573,137,391			106,818,149
Level 3			—			—			—
Total		$	593,889,607		$	573,137,391		$	106,818,149

There were no Level 3 securities at the beginning or end of the period.

In January 2010, the FASB issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented above. The new disclosures and clarifications of existing disclosures are generally effective for each Fund’s year ending August 31, 2011 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

85

Notes to financial statements
Delaware National Tax-Free Funds

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 28, 2010 and the year ended August 31, 2009 was as follows:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Six months ended 2/28/10*
Tax-exempt income		$	13,102,897		$	9,589,762		$	2,399,406
Ordinary income			273,862			133,999			51,445
Total		$	13,376,759		$	9,723,761		$	2,450,851
Year ended 8/31/09
Tax-exempt income		$	24,389,642		$	15,114,111		$	4,103,777
Ordinary income			50,485			—			375
Total		$	24,440,127		$	15,114,111		$	4,104,152

*Tax information for the period ended February 28, 2010 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2010, the estimated components of net assets on a tax basis were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
Shares of beneficial interest		$	583,884,892			$	561,570,141			$	109,461,683
Distributions payable			(451,446	)			(329,190	)			(88,396	)
Undistributed tax-exempt
income			518,352				345,415				84,823
Realized gains
9/1/09 – 2/28/10			1,266,695				2,885,468				131,614
Post-October losses			(237,351	)			—				(787	)
Capital loss carryforward
as of 8/31/09			(11,316,576	)			(8,275,150	)			(2,779,570	)
Unrealized appreciation
(depreciation)
of investments			25,152,717				24,283,211				(1,098,399	)
Net assets		$	598,817,283			$	580,479,895			$	105,710,968

86

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

Post-October losses represent losses realized on investment transactions from November 1, 2009 through February 28, 2010 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2010, the Delaware National High-Yield Municipal Bond Fund recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

Undistributed net investment income	$	(13,650	)
Accumulated net realized gain		13,650

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, 2009 will expire as follows:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
Year of Expiration	USA Fund			USA Intermediate Fund			Municipal Bond Fund
2010		$	—		$	—		$	70,671
2011			—			249,429			997,721
2012			—			5,791			980,742
2014			—			119,427			—
2015			—			—			355,701
2016			797,494			2,127,384			—
2017			10,519,082			5,773,119			374,735
Total		$	11,316,576		$	8,275,150		$	2,779,570

For the six months ended February 28, 2010, the Funds had capital gains which may decrease the capital loss carryforwards.

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$1,266,695	$2,885,468	$131,614

87

Notes to financial statements
Delaware National Tax-Free Funds

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/28/10		8/31/09		2/28/10		8/31/09		2/28/10		8/31/09
Shares sold:
Class A	3,392,790		11,607,343		11,139,618		21,288,665		2,381,296		1,543,457
Class B	7,080		7,042		—		16,760		1,252		36,455
Class C	314,636		662,828		1,116,341		1,748,249		857,127		298,334
Institutional Class	754		102		51,976		95		1,934		134
Shares issued upon reinvestment of dividends and distributions:
Class A	647,660		1,198,786		709,961		885,386		147,002		269,659
Class B	6,408		16,525		920		1,659		2,108		6,137
Class C	43,446		46,310		67,913		52,363		22,443		26,475
Institutional Class	2		3		117		2		17		5
	4,412,776		13,538,939		13,086,846		23,993,179		3,413,179		2,180,656
Shares repurchased:
Class A	(2,746,932	)	(10,115,087	)	(6,948,986	)	(18,287,462	)	(996,919	)	(1,230,554	)
Class B	(155,877	)	(350,505	)	(18,562	)	(56,382	)	(10,685	)	(209,703	)
Class C	(123,463	)	(339,849	)	(393,834	)	(500,042	)	(110,599	)	(190,984	)
Institutional Class	(1	)	—		(67	)	—		(2	)	—
	(3,026,273	)	(10,805,441	)	(7,361,449	)	(18,843,886	)	(1,118,205	)	(1,631,241	)
Net increase	1,386,503		2,733,498		5,725,397		5,149,293		2,294,974		549,415

For the six months ended February 28, 2010 and the year ended August 31, 2009, 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 above and the statements of changes in net assets.

	Six Months Ended			Year Ended
	2/28/10			8/31/09
	Class B	Class A		Class B	Class A
	Shares	Shares	Value	Shares	Shares	Value
Delaware Tax-Free
USA Fund	45,747	45,706	$511,497	161,252	161,199	$1,668,006
Delaware Tax-Free
USA Intermediate Fund	5,747	5,742	66,938	23,056	23,046	253,527
Delaware National High-Yield
Municipal Bond Fund	6,867	6,882	64,710	26,693	26,746	211,723

88

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), participates in a $35,000,000 revolving line of credit with The Bank of New York Mellon (BNY Mellon) 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 are charged an annual commitment fee, which is allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The agreement expires on November 16, 2010. The Funds had no amounts outstanding as of February 28, 2010, or at any time during the period then ended.

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, 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 impact on the value of insured bonds held in the Funds. At February 28, 2010, 10.43% of the Delaware Tax-Free USA Fund’s net assets, 14.30% of the Delaware Tax-Free USA Intermediate Fund’s net assets, and 3.11% of the Delaware National High-Yield Municipal Bond Fund’s net assets were insured by bond insurers. These securities have been identified in the statements of net assets.

Each Fund may invest a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor’s Ratings Group (S&P) and/or Ba or lower by Moody’s Investors Service, Inc. (Moody’s). Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

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

89

Notes to financial statements
Delaware National Tax-Free Funds

8. Credit and Market Risk (continued)

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 and are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody’s, S&P, 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 assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. As of February 28, 2010, 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 each Fund’s existing contracts and expects the risk of loss to be remote.

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10. Sale of Delaware Investments to Macquarie Group

On August 18, 2009, Lincoln National Corporation (parent company of Delaware Investments) and Macquarie Group (Macquarie) entered into an agreement pursuant to which Delaware Investments, including DMC, DDLP and DSC, would be acquired by Macquarie, an Australia-based global provider of banking, financial, advisory, investment and funds management services (Transaction). The Transaction was completed on January 4, 2010. DMC, DDLP and DSC are now wholly owned subsidiaries of Macquarie.

The Transaction resulted in a change of control of DMC which, in turn, caused the termination of the investment management agreements between DMC and the Funds. On January 4, 2010, the new investment management agreements between DMC and the Funds that were approved by the shareholders became effective.

11. Subsequent Event

Management has evaluated whether any events or transactions occurred subsequent to February 28, 2010 through April 15, 2010, the date of issuance of each Fund’s financial statements, and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.

91

Other Fund information
(Unaudited)
Delaware National Tax-Free Funds

Proxy Results

At Joint Special Meetings of Shareholders of Delaware Group® Tax-Free Fund, on behalf of Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund, and Voyageur Mutual Funds, on behalf of Delaware National High-Yield Municipal Bond Fund (Delaware Group Tax-Free Fund and Voyageur Mutual Fund hereinafter each, a “Trust” and collectively, the “Trusts” and Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund hereinafter each, a “Fund” and collectively, the “Funds”) held on November 12, 2009 and reconvened on December 4, 2009 for Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund only and March 16, 2010, the shareholders of each Fund voted to (i) elect a Board of Trustees for each Trust; and to (ii) approve new investment advisory agreements between each Trust, on behalf of the respective Fund(s), and Delaware Management Company, respectively. At the meeting, the following people were elected to serve as Independent Trustees: Thomas L. Bennett, John A. Fry, Anthony D. Knerr, Lucinda S. Landreth, Ann R. Leven, Thomas F. Madison, Janet L. Yeomans, and J. Richard Zecher. In addition, Patrick P. Coyne was elected to serve as an Interested Trustee.

The following proposals were submitted for a vote of the shareholders:

1. To elect a Board of Trustees for each Trust.

Delaware Group Tax-Free Fund

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	57,663,480.933	59.738	93.260	4,167,443.865	4.317	6.740
Patrick P. Coyne	57,670,502.981	59.745	93.271	4,160,421.817	4.310	6.729
John A. Fry	57,765,224.307	59.750	93.279	4,155,700.491	4.305	6.721
Anthony D. Knerr	57,615,106.318	59.688	93.182	4,215,818.480	4.367	6.818
Lucinda S. Landreth	57,681,544.675	59.757	93.289	4,149,380.123	4.298	6.711
Ann R. Leven	57,665,095.874	59.740	93.263	4,165,828.924	4.315	6.737
Thomas F. Madison	57,580,216.101	59.652	93.125	4,250,708.697	4.403	6.875
Janet L. Yeomans	57,681,074.073	59.756	93.288	4,149,850.725	4.299	6.712
J. Richard Zecher	57,636,553.113	59.710	93.216	4,194,371.685	4.345	6.784

Voyageur Mutual Fund

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	27,534,201.174	64.687	94.418	1,627,955.392	3.825	5.582
Patrick P. Coyne	27,538,840.631	64.698	94.433	1,623,315.935	3.814	5.567
John A. Fry	27,541,310.882	64.704	94.442	1,620,845.684	3.808	5.558
Anthony D. Knerr	27,543,108.286	64.708	94.448	1,619,048.280	3.804	5.552
Lucinda S. Landreth	27,542,973.819	64.708	94.448	1,619,182.747	3.804	5.552
Ann R. Leven	27,540,505.439	64.702	94.439	1,621,651.127	3.810	5.561
Thomas F. Madison	27,534,959.779	64.689	94.420	1,627,196.787	3.823	5.580
Janet L. Yeomans	27,539,087.174	64.698	94.434	1,623,069.392	3.814	5.566
J. Richard Zecher	27,532,297.843	64.683	94.411	1,629,858.723	3.829	5.589

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2. To approve a new investment advisory agreement between each Trust, on behalf of the respective Fund(s), and Delaware Management Company.

Delaware Tax-Free USA Fund
Shares Voted For	24,966,636.809
Percentage of Outstanding Shares	48.161%
Percentage of Shares Voted	70.120%
Shares Voted Against	541,765.486
Percentage of Outstanding Shares	1.045%
Percentage of Shares Voted	1.521%
Shares Abstained	1,698,792.191
Percentage of Outstanding Shares	3.277%
Percentage of Shares Voted	4.772%
Broker Non-Votes	8,398,482.448

Delaware Tax-Free USA Intermediate Fund
Shares Voted For	17,330,532.228
Percentage of Outstanding Shares	38.782%
Percentage of Shares Voted	67.129%
Shares Voted Against	177,979.836
Percentage of Outstanding Shares	0.398%
Percentage of Shares Voted	0.689%
Shares Abstained	545,651.634
Percentage of Outstanding Shares	1.221%
Percentage of Shares Voted	2.114%
Broker Non-Votes	7,762,659.315

Delaware National High-Yield Municipal Bond Fund
Shares Voted For	3,610,477.879
Percentage of Outstanding Shares	40.739%
Percentage of Shares Voted	67.476%
Shares Voted Against	94,516.225
Percentage of Outstanding Shares	1.066%
Percentage of Shares Voted	1.766%
Shares Abstained	127,978.565
Percentage of Outstanding Shares	1.445%
Percentage of Shares Voted	2.392%
Broker Non-Votes	1,517,805.114

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Other Fund information
(Unaudited)
Delaware National Tax-Free Funds

Board Consideration of New Investment Advisory Agreement

At a meeting held on September 3, 2009 (the “Meeting”), the Board of Trustees of the Delaware Investments® Family of Funds (the “Board”), including the independent Trustees, unanimously approved a new investment advisory agreement between each registrant on behalf of each series (each, a “Fund” and together, the “Funds”) and Delaware Management Company (“DMC”) in connection with the sale of Delaware Investments’ advisory business to Macquarie Bank Limited (the “Macquarie Group”) (the “Transaction”). In making its decision, the Board considered information furnished specifically in connection with the approval of the new investment advisory agreements with DMC (the “New Investment Advisory Agreements”) which included extensive materials about the Transaction and matters related to the proposed approvals. To assist the Board in considering the New Investment Advisory Agreements, Macquarie Group provided materials and information about Macquarie Group, including detailed written responses to the questions posed by the independent Trustees. DMC also provided materials and information about the Transaction, including detailed written responses to the questions posed by the independent Trustees.

At the Meeting, the Trustees discussed the Transaction with DMC management and with key Macquarie Group representatives. The Meeting included discussions of the strategic rationale for the Transaction and Macquarie Group’s general plans and intentions regarding the Funds and DMC. The Board members also inquired about the plans for, and anticipated roles and responsibilities of, key employees and officers of Delaware Management Holdings Inc. and DMC in connection with the Transaction.

In connection with the Trustees’ review of the New Investment Advisory Agreements for the Funds, DMC and/or Macquarie Group emphasized that:

• They expected that there would be no adverse changes as a result of the Transaction, in the nature, quality, or extent of services currently provided to the Funds and their shareholders, including investment management, distribution, or other shareholder services.
   
• No material changes in personnel or operations were contemplated in the operation of DMC under Macquarie Group as a result of the Transaction and no material changes were currently contemplated in connection with third party service providers to the Funds.
   
• Macquarie Group had no intention to cause DMC to alter the voluntary expense waivers and reimbursements currently in effect for the Funds.
   
• Under the agreement between Macquarie Group and Lincoln National Corporation (“LNC”) (the “Transaction Agreement”), Macquarie Group has agreed to conduct, and to cause its affiliates to conduct, their respective businesses in compliance with the conditions of Section 15(f) of the Investment Company Act of 1940 (the “1940 Act”) with respect to the Funds, to the extent within its control, including maintaining Board composition of at least 75% of the Board members qualifying as independent Trustees and not imposing any “unfair burden” on the Funds for at least two years from the closing of the Transaction (the “Closing”).

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In addition to the information provided by DMC and Macquarie Group as described above, the Trustees also considered all other factors they believed to be relevant to evaluating the New Investment Advisory Agreements, including the specific matters discussed below. In their deliberations, the Trustees did not identify any particular information that was controlling, and different Trustees may have attributed different weights to the various factors. However, for each Fund, the Trustees determined that the overall arrangements between the Fund and DMC, as provided in the respective New Investment Advisory Agreement, including the proposed advisory fee and the related administration arrangements between the Fund and DMC, were fair and reasonable in light of the services to be performed, expenses incurred, and such other matters as the Trustees considered relevant. Factors evaluated included:

• The potential for expanding distribution of Fund shares through access to Macquarie Group’s existing distribution channels;
   
• Delaware Investments’ acquisition of an exclusive wholesaling sales force from a subsidiary of LNC;
   
• The reputation, financial strength, and resources of Macquarie Group as well as its historic and ongoing commitment to the asset management business in Australia as well as other parts of the world;
   
• The terms and conditions of the New Investment Advisory Agreements, including that each Fund’s total contractual fee rate under the New Investment Advisory Agreement will remain the same;
   
• The Board’s full annual review (or initial approval) of the current investment advisory agreements at their in-person meeting in May 2009 as required by the 1940 Act and its determination that (i) DMC had the capabilities, resources, and personnel necessary to provide the satisfactory advisory and administrative services currently provided to each Fund and (ii) the advisory and/or management fees paid by each Fund, taking into account any applicable fee waivers and breakpoints, represented reasonable compensation to DMC in light of the services provided, the costs to DMC of providing those services, economies of scale, and the fees and other expenses paid by similar funds and such other matters that the Board considered relevant in the exercise of its reasonable judgment;
   
• The portfolio management teams for the Funds are not currently expected to change as a result of the Transaction;
   
• LNC and Macquarie Group were expected to execute a reimbursement agreement pursuant to which LNC and Macquarie Group would agree to pay (or reimburse) all reasonable out-of-pocket costs and expenses of the Funds in connection with the Board’s consideration of the Transaction, the New Investment Advisory Agreements and related agreements, and all costs related to the proxy solicitation (the “Expense Agreement”);

95

Other Fund information
(Unaudited)
Delaware National Tax-Free Funds

Board Consideration of New Investment Advisory Agreement (continued)

• The likelihood that Macquarie Group would invest additional amounts in Delaware Investments, including DMC, which could result in increased assets under management, which in turn would allow some Funds the potential opportunity to achieve economies of scale and lower fees payable by Fund shareholders; and
   
• The compliance and regulatory history of Macquarie Group and its affiliates.

In making their decision relating to the approval of each Fund’s New Investment Advisory Agreement, the independent Trustees gave attention to all information furnished. The following discussion, however, identifies the primary factors taken into account by the Trustees and the conclusions reached in approving the New Investment Advisory Agreements.

Nature, Extent, and Quality of Service. The Trustees considered the services historically provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered that the New Investment Advisory Agreements would be substantially similar to the current investment advisory agreements between the Funds and DMC (the “Current Investment Advisory Agreements”), and therefore, considered the many reports furnished to them throughout 2008 and 2009 at regular Board meetings covering matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; the compliance of management personnel with the code of ethics adopted throughout the Delaware Investments® Family of Funds complex; and the adherence to fair value pricing procedures as established by the Board. The Trustees were pleased with the current staffing of DMC and the emphasis placed on research and risk management in the investment process. Favorable consideration was given to DMC’s efforts to maintain expenditures and, in some instances, increase financial and human resources committed to Fund matters.

The Board also considered the transfer agent and shareholder services that would continue to be provided to Fund shareholders by DMC’s affiliate, Delaware Service Company, Inc. (“DSC”). The Trustees noted, in particular, DSC’s commitment to maintain a high level of service as well as DMC’s expenditures to improve the delivery of shareholder services. The Board was assured that shareholders would continue to receive the benefits provided to Fund shareholders by being part of the Delaware Investments Family of Funds, including each shareholder’s ability to exchange an investment in one Delaware Investments Fund for the same class of shares in another Delaware Investments Fund without a sales charge, to reinvest Fund dividends into additional shares of any of the Funds, and the privilege to combine holdings in other Funds to obtain a reduced sales charge.

Based on the information provided by DMC and Macquarie Group, including that Macquarie Group and DMC currently expected no material changes as a result of the Transaction in (i) personnel or operations of DMC or (ii) third party service providers to the Funds, the Board concluded that the satisfactory nature, extent, and quality of services currently provided to the Funds and their shareholders were very likely to continue under the New Investment Advisory

96

Agreements. Moreover, the Board concluded that the Funds would probably benefit from the expanded distribution resources that would become available to Delaware Investments following the Transaction. The Board also concluded that it was very unlikely that any “unfair burden” would be imposed on any of the Funds for the first two years following the Closing as a result of the Transaction. Consequently, the Board concluded that it did not expect the Transaction to result in any adverse changes in the nature, quality, or extent of services (including investment management, distribution or other shareholder services) currently provided to the Funds and their shareholders.

Investment Performance. The Board considered the overall investment performance of DMC and the Funds. The Trustees placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Trustees gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Trustees gave particular weight to their review of investment performance in connection with the approval of the Current Investment Advisory Agreements at the Board meeting held in May 2009. At that meeting, the Trustees reviewed reports prepared by Lipper, Inc., an independent statistical compilation organization (“Lipper”), which showed each Fund’s investment performance as of December 31, 2008 in comparison to a group of funds selected by Lipper as being similar to the Fund (the “Performance Universe”).During the May 2009 agreement review process, the Trustees observed the significant improvements to relative investment performance of the Funds compared to the Funds’ performance as of December 31, 2007.

At their meeting on September 3, 2009, the Trustees, including the independent Trustees in consultation with their independent counsel, reviewed the investment performance of each Fund. The Trustees compared the performance of each Fund relative to that of its respective Performance Universe for the 1-, 3-, 5-, and 10-year periods ended June 30, 2009 and compared its relative investment performance against the corresponding relative investment performance of each Fund for such time periods ended December 31, 2008, to the extent applicable. As of June 30, 2009, 30 of the Funds had investment performance relative to that of the respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for all applicable time periods. At June 30, 2009, an additional 6 Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for a majority of the applicable time periods. At June 30, 2009, 15 additional Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative performance at December 31, 2008 and only 29 Funds had poorer relative investment performance at June 30, 2009 compared to that at December 31, 2008.

The Board therefore concluded that the investment performance of the Funds, on an aggregate basis, had continued to improve relative to their respective Performance Universe since the data reviewed at the May 2009 meeting. Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreement

97

Other Fund information
(Unaudited)
Delaware National Tax-Free Funds

Board Consideration of New Investment Advisory Agreement (continued)

would likely have an adverse effect on the investment performance of any Fund because (i) DMC and Macquarie Group did not currently expect the Transaction to cause any material change to the Funds’ portfolio management teams responsible for investment performance, which the Board found to be satisfactory and improving; and (ii) as discussed in more detail below, the Funds’ expenses were not expected to increase as a result of the Transaction.

Comparative Expenses. The Trustees also considered expense comparison data for the Funds previously provided in May 2009. At that meeting, DMC had provided the Board with information on pricing levels and fee structures for the Funds and comparative funds. The Trustees focused on the comparative analysis of the effective management fees and total expense ratios of each Fund versus the effective management fees and expense ratios of a group of funds selected by Lipper as being similar to each Fund (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) of other funds within the Expense Group, taking into account any applicable breakpoints and fee limitations. Each Fund’s total expenses were also compared with those of its Expense Group. The Trustees also considered fees paid to Delaware Investments for nonmanagement services. At the September 3, 2009 meeting, DMC advised the Board that the more recent comparative expenses for the Funds remained consistent with the previous review in May 2009 and, consequently, the Trustees concluded that expenses of the Funds were satisfactory.

The Board also considered the Expense Agreement under negotiation in evaluating Fund expenses. The Trustees expected that the Expense Agreement would provide that LNC and Macquarie Group would pay or reimburse the Trusts for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the consideration of the New Investment Advisory Agreements (subject to certain limited exceptions).

Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreements likely would have an adverse effect on the Funds’ expenses because (i) each Fund’s contractual fee rates under the New Investment Advisory Agreement would remain the same; (ii) under the Expense Agreement, the Funds would be reimbursed for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the related proxy solicitation (subject to certain limited exceptions); and (iii) the expense ratios of certain Funds might decline as a result of the possible increased investment in Delaware Investments by Macquarie Group, as discussed below under “Economies of Scale.”

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Management Profitability. At their meeting on September 3, 2009, the Board evaluated DMC’s profitability in connection with the operation of the Funds. The Board had previously considered DMC’s profitability in connection with the operation of the Funds at its May 2009 meeting. At that meeting, the Board reviewed an analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the Funds and the Delaware Investments® Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability.

At the May 2009 meeting, representatives of DMC had stated that the level of profits of DMC, to a certain extent, reflect operational cost savings and efficiencies initiated by Delaware Investments (including DMC and its affiliates that provide services to the Funds). The Board considered Delaware Investments’ efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide U.S. Securities and Exchange Commission initiatives. At that meeting, the Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC. At the September 3, 2009 meeting, DMC advised the Board that DMC did not expect the Transaction to affect materially the profitability of Delaware Investments compared to the level of profitability considered during the May 2009 review. Moreover, the Trustees reviewed pro forma balance sheets of certain key companies in Delaware Investments as of June 30, 2009 (which were provided by Macquarie Group and DMC in response to the Trustees’ requests) and evaluated the projections of Delaware Investments’ capitalization following the Transaction for purposes of evaluating the financial ability of Delaware Investments to continue to provide the nature, extent, and quality of services as it had under the Current Investment Advisory Agreement.

Based on information provided by DMC and Macquarie Group, the Board concluded that DMC and Delaware Investments would be sufficiently capitalized following the Transaction to continue the same level and quality of services to the Funds under the New Investment Advisory Agreements as was the case under the Current Investment Advisory Agreements. The Board also concluded that Macquarie Group had sufficient financial strength and resources, as well as an ongoing commitment to a global asset management business, to continue investing in Delaware Investments, including DMC, to the extent that Macquarie Group determined it was appropriate. Finally, because services and costs were expected to be substantially the same (and DMC had represented that, correspondingly, profitability would be about the same), under the New Investment Advisory Agreements as under the Current Investment Advisory Agreements, the Trustees concluded that the profitability of Delaware Investments would not result in an inequitable charge on the Funds or their shareholders. Accordingly, the Board concluded that the fees charged under the New Investment Advisory Agreements would be reasonable in light of the services to be provided and the expected profitability of DMC.

99

Other Fund information
(Unaudited)
Delaware National Tax-Free Funds

Board Consideration of New Investment Advisory Agreement (continued)

Economies of Scale. The Trustees considered whether economies of scale would be realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale would be reflected in the management fees charged. The Trustees took into account DMC’s practice of maintaining the competitive nature of management fees based on its analysis of fees charged by comparable funds. DMC management believed, and the Board agreed, that the Funds were priced with breakpoints and relatively low management fees to reflect potential economies of scale to Fund shareholders.

The Board also acknowledged Macquarie Group’s statement that the Transaction would not by itself immediately provide additional economies of scale given Macquarie Group’s limited presence in the U.S. mutual fund market. Nonetheless, the Trustees concluded that additional economies of scale could potentially be achieved in the future if DMC were owned by Macquarie Group as a result of Macquarie Group’s willingness to invest further in Delaware Investments if appropriate opportunities arise. The Board further concluded that potential economies of scale could be achieved as a result of Delaware Investments’ expanded distribution capabilities arising from the Transaction, as well as opportunities that might arise from Macquarie Group’s global asset management business.

Fall-Out Benefits. The Board acknowledged that DMC would continue to benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities and that DMC’s profitability would likely be somewhat lower without the benefit of practices with respect to allocating Fund portfolio brokerage for brokerage and research services. The Board also considered that Macquarie Group and Delaware Investments may derive reputational, strategic, and other benefits from their association with the Delaware Investments Family of Funds, including service relationships with DMC, DSC, and Delaware Distributors, L.P., and evaluated the extent to which Delaware Investments might derive ancillary benefits from Fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of Fund brokerage to improve trading efficiencies. However, the Board concluded that (i) any such benefits under the New Investment Advisory Agreements would not be dissimilar from those existing under the Current Investment Advisory Agreements; (ii) such benefits did not impose a cost or burden on the Funds or their shareholders; and (iii) such benefits would probably have an indirectly beneficial effect on the Funds and their shareholders because of the added importance that DMC and Macquarie Group might attach to the Funds as a result of the fall-out benefits that the Funds conveyed.

100

Board Review of Macquarie Group.The Trustees reviewed detailed information supplied by Macquarie Group about its operations as well as other information regarding Macquarie Group provided by independent legal counsel to the independent Trustees. Based on this review, the Trustees concluded that Delaware Investments would continue to have the financial ability to maintain the high quality of services required by the Funds. The Trustees noted that there would be a limited transition period during which some services previously provided by LNC to Delaware Investments would continue to be provided by LNC after the Closing, and concluded that this arrangement would help minimize disruption in Delaware Investments’ provision of services to the Funds following the Transaction.

The Board considered Macquarie Group’s support for Delaware Investments’ plans for Fund distribution by transferring wholesalers from Lincoln Financial Distributors, Inc., LNC’s retail distributor, to Delaware Investments, and Macquarie Group’s current intention to leave the Funds’ other service providers in place. The Board also considered Macquarie Group’s current strategic plans to increase its asset management activities, one of its core businesses, particularly in North America, and its statement that its acquisition of DMC is an important component of this strategic growth and the establishment of a significant presence in the United States. Based in part on the information provided by DMC and Macquarie Group, the Board concluded that Macquarie Group’s acquisition of Delaware Investments could potentially enhance the nature, quality, and extent of services provided to the Funds and their shareholders.

Conclusion. The Board concluded that the advisory fee rate under each New Investment Advisory Agreement was reasonable in relation to the services provided and that execution of the New Investment Advisory Agreement would be in the best interests of the shareholders. For each Fund, the Trustees noted that they had concluded in their most recent advisory agreement continuance considerations in May 2009 that the management fees and total expense ratios were at acceptable levels in light of the quality of services provided to the Funds and in comparison to those of the Funds’ respective peer groups; that the advisory fee schedule would not be increased and would stay the same for all of the Funds; that the total expense ratio had not changed materially since that determination; and that DMC had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction. The Trustees also noted, with respect to the Funds that currently had the benefit of voluntary fee limitations, that Macquarie Group had no present intention to cause DMC to alter any voluntary expense limitations or reimbursements currently in effect. On that basis, the Trustees concluded that the total expense ratios and proposed advisory fees for the Funds anticipated to result from the Transaction were acceptable. In approving each New Investment Advisory Agreement, the Board stated that it anticipated reviewing the continuance of the New Investment Advisory Agreement in advance of the expiration of the initial two-year period.

101

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 Franklin & Marshall College Lancaster, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Thomas F. Madison President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ
Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	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 USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund and the Delaware Investments Fund profile for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

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 Web site 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 each Fund’s Web site 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 each Fund’s Web site at www.delawareinvestments.com; and (ii) on the SEC’s Web site at www.sec.gov.

102

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 28, 2010

Fixed income mutual funds

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 a current 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.

The figures in the semiannual report 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 represent past results, which are not a guarantee of future results. The return and principal value of an investment in the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the Funds carefully before investing. The 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 prospectus contains this and other important information about the Funds. Prospectuses for all open-end funds in the Delaware Investments® Family of Funds are available from your financial advisor, online at www.delawareinvestments.com, or by phone at 800 523-1918. Please read the prospectus carefully before you invest or send money.

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

On January 4, 2010, Delaware Management Holdings, Inc., and its subsidiaries (collectively known by the marketing name of Delaware Investments) were sold by a subsidiary of Lincoln National Corporation to Macquarie Group Limited, a global provider of banking, financial, advisory, investment and funds management services. Please see your Funds’ prospectus and any supplements thereto for more complete information.

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 subsidiaries or related companies, 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 Fund, the repayment of capital from the Fund, or any particular rate of return.

Table of contents
Disclosure of Fund expenses	1
Sector allocations and credit quality breakdowns	4
Statements of net assets	9
Statements of operations	48
Statements of changes in net assets	50
Financial highlights	60
Notes to financial statements	90
Other Fund information	104
About the organization	115

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2010, and are 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.

© 2010 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the period September 1, 2009 to February 28, 2010

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2009 to February 28, 2010.

Actual expenses

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

Hypothetical example for comparison purposes

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

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 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 Account Value 9/1/09			Ending Account Value 2/28/10			Annualized Expense Ratio			Expenses Paid During Period 9/1/09 to 2/28/10*
Actual Fund return
Class A		$	1,000.00		$	1,042.70		0.81	%		$	4.10
Class B			1,000.00			1,038.80		1.56	%			7.89
Class C			1,000.00			1,038.80		1.56	%			7.89
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.78		0.81	%		$	4.06
Class B			1,000.00			1,017.06		1.56	%			7.80
Class C			1,000.00			1,017.06		1.56	%			7.80

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

	Beginning Account Value 9/1/09			Ending Account Value 2/28/10			Annualized Expense Ratio			Expenses Paid During Period 9/1/09 to 2/28/10*
Actual Fund return
Class A		$	1,000.00		$	1,063.20		0.82	%		$	4.19
Class B			1,000.00			1,059.10		1.57	%			8.02
Class C			1,000.00			1,059.20		1.57	%			8.02
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.73		0.82	%		$	4.11
Class B			1,000.00			1,017.01		1.57	%			7.85
Class C			1,000.00			1,017.01		1.57	%			7.85

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

	Beginning Account Value 9/1/09			Ending Account Value 2/28/10			Annualized Expense Ratio			Expenses Paid During Period 9/1/09 to 2/28/10*
Actual Fund return
Class A		$	1,000.00		$	1,048.20		0.91	%		$	4.62
Class B			1,000.00			1,043.30		1.66	%			8.41
Class C			1,000.00			1,043.30		1.66	%			8.41
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.28		0.91	%		$	4.56
Class B			1,000.00			1,016.56		1.66	%			8.30
Class C			1,000.00			1,016.56		1.66	%			8.30

2

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

	Beginning Account Value 9/1/09			Ending Account Value 2/28/10			Annualized Expense Ratio			Expenses Paid During Period 9/1/09 to 2/28/10*
Actual Fund return
Class A		$	1,000.00		$	1,040.00		0.93	%		$	4.70
Class B			1,000.00			1,036.20		1.68	%			8.48
Class C			1,000.00			1,036.20		1.68	%			8.48
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.18		0.93	%		$	4.66
Class B			1,000.00			1,016.46		1.68	%			8.40
Class C			1,000.00			1,016.46		1.68	%			8.40

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

	Beginning Account Value 9/1/09			Ending Account Value 2/28/10			Annualized Expense Ratio			Expenses Paid During Period 9/1/09 to 2/28/10*
Actual Fund return
Class A		$	1,000.00		$	1,049.80		0.80	%		$	4.07
Class B			1,000.00			1,046.00		1.55	%			7.86
Class C			1,000.00			1,046.00		1.55	%			7.86
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.83		0.80	%		$	4.01
Class B			1,000.00			1,017.11		1.55	%			7.75
Class C			1,000.00			1,017.11		1.55	%			7.75

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

3

Sector allocations and credit quality breakdowns
Delaware Tax-Free Arizona Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds		99.00	%
Corporate Revenue Bonds		6.78	%
Education Revenue Bonds		10.23	%
Electric Revenue Bonds		5.38	%
Health Care Revenue Bonds		13.09	%
Housing Revenue Bond		0.01	%
Lease Revenue Bonds		12.93	%
Local General Obligation Bonds		5.14	%
Pre-Refunded Bonds		9.42	%
Special Tax Revenue Bonds		15.41	%
State General Obligation Bonds		7.52	%
Transportation Revenue Bonds		5.37	%
Water & Sewer Revenue Bonds		7.72	%
Total Value of Securities		99.00	%
Receivables and Other Assets Net of Liabilities		1.00	%
Total Net Assets		100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA		12.20	%
AA		29.67	%
A		26.42	%
BBB		29.64	%
B		1.22	%
Not Rated		0.85	%
Total		100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

4

Delaware Tax-Free California Fund As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds		98.78	%
Corporate Revenue Bonds		5.70	%
Education Revenue Bonds		9.32	%
Electric Revenue Bonds		4.18	%
Health Care Revenue Bonds		16.82	%
Housing Revenue Bonds		7.26	%
Lease Revenue Bonds		7.83	%
Local General Obligation Bonds		6.29	%
Pre-Refunded Bonds		3.01	%
Resource Recovery Revenue Bond		1.26	%
Special Tax Revenue Bonds		19.66	%
State General Obligation Bonds		7.32	%
Transportation Revenue Bonds		6.17	%
Water & Sewer Revenue Bonds		3.96	%
Short-Term Investments		0.62	%
Money Market Instrument		0.38	%
Variable Rate Demand Note		0.24	%
Total Value of Securities		99.40	%
Receivables and Other Assets Net of Liabilities		0.60	%
Total Net Assets		100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA		10.79	%
AA		15.33	%
A		43.82	%
BBB		16.16	%
BB		1.93	%
B		2.29	%
Not Rated		9.68	%
Total		100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

5

Sector allocations and credit quality breakdowns
Delaware Tax-Free Colorado Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds		99.07	%
Corporate Revenue Bond		2.17	%
Education Revenue Bonds		11.42	%
Electric Revenue Bonds		5.86	%
Escrowed to Maturity Bond		2.23	%
Health Care Revenue Bonds		21.12	%
Housing Revenue Bonds		2.11	%
Lease Revenue Bonds		3.62	%
Local General Obligation Bonds		15.03	%
Pre-Refunded Bonds		15.11	%
Special Tax Revenue Bonds		8.56	%
State General Obligation Bonds		6.09	%
Transportation Revenue Bonds		3.49	%
Water & Sewer Revenue Bonds		2.26	%
Short-Term Investment		1.02	%
Total Value of Securities		100.09	%
Liabilities Net of Receivables and Other Assets		(0.09	%)
Total Net Assets		100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA		13.37	%
AA		27.92	%
A		29.16	%
BBB		18.55	%
B		1.09	%
Not Rated		9.91	%
Total		100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

6

Delaware Tax-Free Idaho Fund As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds		97.33	%
Corporate Revenue Bonds		4.52	%
Education Revenue Bonds		9.56	%
Electric Revenue Bonds		1.38	%
Health Care Revenue Bonds		1.81	%
Housing Revenue Bonds		7.00	%
Lease Revenue Bonds		3.61	%
Local General Obligation Bonds		21.59	%
Pre-Refunded Bonds		14.42	%
Special Tax Revenue Bonds		17.08	%
State General Obligation Bonds		5.70	%
Transportation Revenue Bonds		7.93	%
Water & Sewer Revenue Bonds		2.73	%
Short-Term Investment		1.41	%
Total Value of Securities		98.74	%
Receivables and Other Assets Net of Liabilities		1.26	%
Total Net Assets		100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA		19.31	%
AA		34.49	%
A		29.15	%
BBB		12.46	%
BB		2.98	%
B		1.40	%
Not Rated		0.21	%
Total		100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

7

Sector allocations and credit quality breakdowns
Delaware Tax-Free New York Fund	As of February 28, 2010

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

Sector	Percentage of net assets
Municipal Bonds		95.98	%
Corporate Revenue Bonds		7.93	%
Education Revenue Bonds		22.90	%
Electric Revenue Bonds		2.97	%
Health Care Revenue Bonds		8.54	%
Housing Revenue Bonds		1.95	%
Lease Revenue Bonds		8.94	%
Local General Obligation Bonds		3.17	%
Pre-Refunded Bonds		6.27	%
Special Tax Revenue Bonds		20.51	%
State General Obligation Bonds		4.70	%
Transportation Revenue Bonds		6.22	%
Water & Sewer Revenue Bonds		1.88	%
Short-Term Investments		4.16	%
Total Value of Securities		100.14	%
Liabilities Net of Receivables and Other Assets		(0.14	%)
Total Net Assets		100.00	%
Credit quality breakdown (as a % of fixed income investments)*
AAA		12.55	%
AA		27.41	%
A		30.76	%
BBB		22.38	%
BB		2.98	%
B		2.39	%
Not Rated		1.53	%
Total		100.00	%

*Bond ratings are determined by independent, nationally recognized statistical rating organizations.

8

Statements of net assets
Delaware Tax-Free Arizona Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 99.00%
Corporate Revenue Bonds – 6.78%
	Maricopa County Pollution Control (Palo Verde Project)
	Series A 5.05% 5/1/29 (AMBAC)		$	2,000,000	$	1,875,980
•	Navajo County Pollution Control Revenue Refunding
	(Arizona Public Services Company-Cholla)
	Series D 5.75% 6/1/34			1,500,000		1,577,670
	Pima County Industrial Development Authority Pollution
	Control Revenue (Tucson Electric Power Company-San
	Juan) Series A 4.95% 10/1/20			1,500,000		1,507,305
	Pima County Industrial Development Authority Revenue
	Remarketed (Tucson Electric Power)
	5.75% 9/1/29			750,000		758,190
	Salt Verde Financial Corporation Gas Revenue Senior
	5.00% 12/1/37			2,895,000		2,477,975
						8,197,120
Education Revenue Bonds – 10.23%
	Arizona Health Facilities Authority Healthcare
	Education Revenue (Kirksville College)
	5.125% 1/1/30			1,500,000		1,497,120
	Arizona State Board of Regents
	(University of Arizona System Revenue)
	Series A 5.00% 6/1/21			1,255,000		1,400,266
	Series A 5.00% 6/1/39			1,500,000		1,539,045
	Arizona State University Certificates of Participation
	(Research Infrastructure Project)
	5.00% 9/1/30 (AMBAC)			2,000,000		2,027,380
	Arizona State University Energy Management Revenue
	(Arizona State University-Tempe Campus II Project)
	4.50% 7/1/24			1,385,000		1,416,786
	Energy Management Services Energy Conservation Revenue
	(Arizona State University-Main Campus Project)
	5.25% 7/1/17 (NATL-RE)			1,500,000		1,633,950
	Pima County Industrial Development Authority Educational
	Revenue Refunding (Tucson Country Day School Project)
	5.00% 6/1/37			1,000,000		754,060
	South Campus Group Student Housing Revenue
	(Arizona State University-South Campus Project)
	5.625% 9/1/35 (NATL-RE)			1,000,000		1,003,620

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	$	1,007,540
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series A 5.125% 6/1/21 (AMBAC)			85,000		90,480
						12,370,247
Electric Revenue Bonds – 5.38%
	Mesa Utilities System Revenue Refunding
	5.00% 7/1/18 (NATL-RE) (FGIC)			2,150,000		2,428,920
	Puerto Rico Electric Power Authority Revenue Series WW
	5.00% 7/1/28			1,430,000		1,428,198
	5.50% 7/1/38			600,000		607,560
	Salt River Project Agricultural Improvement &
	Power District Electric System Revenue
	Series B 5.00% 1/1/31 (NATL-RE) (IBC)			2,000,000		2,042,680
						6,507,358
Health Care Revenue Bonds – 13.09%
	Arizona Health Facilities Authority Revenue
	(Catholic Healthcare West) Series D 5.00% 7/1/28			1,500,000		1,482,165
	Glendale Industrial Development Authority Hospital
	Revenue (John C. Lincoln Health) 5.00% 12/1/42			2,500,000		2,171,925
	Maricopa County Industrial Development Authority Health
	Facilities Revenue (Catholic Healthcare West) Series A
	5.50% 7/1/26			1,000,000		1,020,030
	6.00% 7/1/39			2,500,000		2,608,750
	Scottsdale Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.25% 9/1/30			1,250,000		1,236,063
	University Medical Center Hospital Revenue
	5.00% 7/1/24			800,000		790,272
	5.00% 7/1/35			2,000,000		1,864,000
	6.50% 7/1/39			2,500,000		2,659,899
	Yavapai County Industrial Development Authority
	Revenue (Yavapai Regional Medical Center)
	Series A 5.25% 8/1/21 (RADIAN)			2,000,000		1,991,420
						15,824,524

10

		Principal amount				Value
Municipal Bonds (continued)
Housing Revenue Bond – 0.01%
	Pima County Industrial Development Authority
	Single Family Housing Revenue
	Series A-1 6.125% 11/1/33
	(GNMA) (FNMA) (FHLMC) (AMT)		$	15,000	$	15,026
						15,026
Lease Revenue Bonds – 12.93%
	Arizona Game & Fish Department &
	Community Beneficial Interest Certificates
	(Administration Building Project) 5.00% 7/1/32			1,300,000		1,294,722
	Arizona State Certificates of Participation Department
	Administration Series A 5.25% 10/1/25 (AGM)			1,500,000		1,598,880
	Marana Municipal Property Facilities Revenue
	5.00% 7/1/28 (AMBAC)			575,000		590,278
	Maricopa County Industrial Development Authority
	Correctional Contract Revenue (Phoenix West Prison)
	Series B 5.375% 7/1/22 (ACA)			1,000,000		980,930
	Phoenix Industrial Development Authority Lease
	Revenue (Capitol Mall II, LLC Project)
	5.00% 9/15/28 (AMBAC)			2,000,000		2,002,260
	Pima County Industrial Development Authority Lease
	Revenue Metro Police Facility (Nevada Project) Series A
	5.25% 7/1/31			1,500,000		1,543,425
	5.375% 7/1/39			1,500,000		1,525,800
	Pinal County Certificates of Participation
	5.00% 12/1/29			1,300,000		1,293,435
	5.125% 6/1/21 (AMBAC)			3,000,000		3,074,039
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series D
	5.25% 7/1/27			470,000		463,129
	5.25% 7/1/36			270,000		258,836
	University of Arizona Certificates of Participation
	Prerefunded (University of Arizona Project)
	Series B 5.00% 6/1/31 (AMBAC)			1,000,000		1,003,210
						15,628,944

11

Statements of net assets
Delaware Tax-Free Arizona Fund 

		Principal amount				Value
Municipal Bonds (continued)
Local General Obligation Bonds – 5.14%
	Cochise County Unified School District #68
	(Sierra Vista) 7.50% 7/1/10 (NATL-RE) (FGIC)		$	1,000,000	$	1,022,960
	Coconino & Yavapai Counties Joint Unified School
	District #9 (Sedona Oak Creek Project of 2007)
	Series A 4.50% 7/1/18 (AGM)			1,520,000		1,728,073
	Series B 5.375% 7/1/28			1,350,000		1,453,113
	DC Ranch Community Facilities
	5.00% 7/15/27 (AMBAC)			1,000,000		971,670
•	Gila County Unified School District #10
	(Payson School Improvement Project of 2006)
	Series A 5.25% 7/1/27 (AMBAC)			1,000,000		1,032,520
						6,208,336
§Pre-Refunded Bonds – 9.42%
	Phoenix Variable Purpose Series B 5.00% 7/1/27-12			2,435,000		2,507,904
	Puerto Rico Commonwealth Highway &
	Transportation Authority Revenue Series K
	5.00% 7/1/35-15			750,000		882,060
	Puerto Rico Electric Power Authority Revenue
	Series NN 5.00% 7/1/32-13 (NATL-RE)			1,750,000		1,981,385
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series D 5.25% 7/1/27-12			1,280,000		1,408,230
	Series I 5.25% 7/1/33-14			5,000		5,792
	Southern Arizona Capital Facilities Finance
	Revenue (University of Arizona Project)
	5.10% 9/1/33-12 (NATL-RE)			3,250,000		3,603,568
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series A 5.125% 6/1/21-12 (AMBAC)			915,000		1,002,904
						11,391,843
Special Tax Revenue Bonds – 15.41%
	Arizona State Transportation Board Excise Tax Revenue
	(Maricopa County Regional Area Road Foundation)
	5.00% 7/1/19			1,500,000		1,695,390
	Arizona Tourism & Sports Authority Tax Revenue
	(Multipurpose Stadium Facilities)
	Series A 5.00% 7/1/28 (NATL-RE)			1,345,000		1,355,626

12

		Principal amount				Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Flagstaff Aspen Place Sawmill Improvement District
	Revenue 5.00% 1/1/32		$	1,350,000	$	1,350,162
	Gilbert Public Facilities Municipal Property
	Revenue 5.00% 7/1/25			1,250,000		1,331,563
	Marana Tangerine Farm Road Improvement District
	Revenue 4.60% 1/1/26			924,000		836,728
	Mesa Street & Highway Revenue 5.00% 7/1/20 (AGM)			1,000,000		1,144,650
	Peoria Municipal Development Authority Transition
	Sales Tax, Excise Tax & State Shared Revenue
	(Senior Lien & Subordinated Lien) 4.50% 1/1/16			1,000,000		1,122,600
	Phoenix Civic Improvement Transition Excise Tax Revenue
	(Light Rail Project) 5.00% 7/1/20 (AMBAC)			2,270,000		2,443,586
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Refunding
	Series C 5.50% 7/1/25 (AMBAC)			1,955,000		2,003,836
	Puerto Rico Sales Tax Financing Corporation
	Revenue Series A
	ΩCapital Appreciation-First Subordinate 6.75% 8/1/32			3,045,000		2,317,518
	First Subordinate
	•5.00% 8/1/39			1,500,000		1,575,105
	5.75% 8/1/37			1,405,000		1,452,447
						18,629,211
State General Obligation Bonds – 7.52%
	Guam Government Series A
	6.75% 11/15/29			115,000		121,964
	7.00% 11/15/39			1,250,000		1,338,800
	Puerto Rico Commonwealth Public Improvement
	Refunding Series A
	5.50% 7/1/17			1,765,000		1,890,227
	5.50% 7/1/19			1,300,000		1,384,942
	Series C 6.00% 7/1/39			1,010,000		1,039,745
	Un-Refunded Balance Series A
	5.125% 7/1/30 (FSA)			480,000		481,920
	5.125% 7/1/31			2,000,000		1,911,140
	Virgin Islands Public Finance Authority
	(Gross Receipts Taxes Loan Note)
	5.00% 10/1/31 (ACA)			1,000,000		927,670
						9,096,408

13

Statements of net assets
Delaware Tax-Free Arizona Fund 

		Principal amount				Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 5.37%
	Arizona State Transportation Board Grant Anticipation
	Notes Series A 5.00% 7/1/14		$	1,250,000	$	1,423,250
	Arizona State Transportation Board Highway
	Revenue Subordinated Series A 5.00% 7/1/23			1,000,000		1,079,130
	Phoenix Civic Improvement Airport
	Revenue (Senior Lien) Series B
	5.25% 7/1/27 (NATL-RE) (FGIC) (AMT)			1,000,000		1,005,620
	5.25% 7/1/32 (NATL-RE) (FGIC) (AMT)			3,000,000		2,980,260
						6,488,260
Water & Sewer Revenue Bonds – 7.72%
	Phoenix Civic Improvement Corporation
	Waste System Revenue (Junior Lien)
	5.00% 7/1/26 (NATL-RE) (FGIC)			3,750,000		3,806,785
	Phoenix Civic Improvement Wastewater Corporation
	Systems Revenue (Junior Lien)
	5.00% 7/1/19 (NATL-RE)			2,750,000		3,072,658
	Refunding 5.00% 7/1/24 (NATL-RE) (FGIC)			1,000,000		1,034,570
	Scottsdale Water & Sewer Revenue 5.25% 7/1/22			1,150,000		1,418,652
						9,332,665
Total Municipal Bonds (cost $115,787,713)						119,689,942
Total Value of Securities – 99.00%
	(cost $115,787,713)					119,689,942
Receivables and Other Assets
	Net of Liabilities – 1.00%					1,208,111
Net Assets Applicable to 10,660,132
	Shares Outstanding – 100.00%				$	120,898,053
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class A ($108,625,920 / 9,579,914 Shares)						$11.34
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class B ($4,708,051 / 414,923 Shares)						$11.35
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class C ($7,564,082 / 665,295 Shares)						$11.37

14

Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	117,512,086
Undistributed net investment income		26,197
Accumulated net realized loss on investments		(542,459	)
Net unrealized appreciation of investments		3,902,229
Total net assets	$	120,898,053

§	Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in ”Notes to financial statements.”
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.
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FHLMC — Insured by the Federal Home Loan Mortgage Corporation
FNMA — Federal National Mortgage Association collateral
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association collateral
IBC — Insured by Integrity Building Corporation
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Arizona Fund
Net asset value Class A (A)	$	11.34
Sales charge (4.50% of offering price) (B)		0.53
Offering price	$	11.87

(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

15

Statements of net assets
Delaware Tax-Free California Fund	February 28, 2010 (Unaudited)

		Principal amount				Value
Municipal Bonds – 98.78%
Corporate Revenue Bonds – 5.70%
	Chula Vista Industrial Development Revenue
	(San Diego Gas & Electric) Series D
	5.875% 1/1/34		$	1,000,000	$	1,099,970
	Golden State Tobacco Securitization Corporation
	Settlement Revenue (Asset-Backed Senior Notes)
	Series A-1
	5.125% 6/1/47			1,075,000		722,873
	5.75% 6/1/47			1,000,000		737,370
	M-S-R Energy Authority Gas Revenue Series A
	6.50% 11/1/39			2,000,000		2,126,060
						4,686,273
Education Revenue Bonds – 9.32%
	California Educational Facilities Authority Revenue
	(University of the Pacific) 5.50% 11/1/39			1,000,000		1,013,400
	(Woodbury University) 5.00% 1/1/36			1,000,000		826,280
	California Municipal Finance Authority
	Educational Revenue
	(American Heritage Foundation Project)
	Series A 5.25% 6/1/36			1,000,000		837,940
	California Statewide Communities Development
	Authority Revenue
	(California Baptist University Project)
	Series A 5.50% 11/1/38			1,000,000		810,170
	(Viewpoint School Project) 5.75% 10/1/33 (ACA)			1,000,000		882,710
	(Windrush School Project) 5.50% 7/1/37			1,000,000		784,130
	California Statewide Communities Development
	Authority Student Housing Revenue
	(East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)			1,000,000		958,370
	San Diego County Certificates of Participation
	(University of San Diego) 5.375% 10/1/41			1,000,000		988,700
	University of California Revenue
	(Multiple Purpose Projects)
	Series L 5.00% 5/15/19			500,000		563,490
						7,665,190

16

		Principal amount				Value
Municipal Bonds (continued)
Electric Revenue Bonds – 4.18%
	Chino Basin Regional Financing Authority Revenue
	Series A 5.00% 11/1/24 (AMBAC)		$	845,000	$	882,729
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.50% 7/1/38			400,000		405,040
	Southern California Public Power Authority Revenue
	(Transmission Project) Series A 5.00% 7/1/22			1,000,000		1,090,330
	Vernon Electric System Revenue Series A 5.125% 8/1/21			1,000,000		1,058,050
						3,436,149
Health Care Revenue Bonds – 16.82%
	Association Bay Area Governments Finance Authority
	for California Nonprofit Corporations
	(San Diego Hospital Association)
	Series A 6.125% 8/15/20			1,250,000		1,277,776
	(Sharp Health Care) Series B 6.25% 8/1/39			1,000,000		1,081,310
	California Health Facilities Financing Authority Revenue
	(Adventist Health System West) Series A 5.75% 9/1/39			1,000,000		1,017,580
	(Catholic Health Care West)
	Series A 6.00% 7/1/39			1,000,000		1,048,740
	Series E 5.625% 7/1/25			1,000,000		1,047,670
	Series G 5.25% 7/1/23			1,000,000		1,018,580
	(Children’s Hospital Orange County)
	Series A 6.50% 11/1/38			1,000,000		1,054,220
	(St. Joseph Health System) Series A 5.75% 7/1/39			1,000,000		1,035,740
	(The Episcopal Home) Series A 5.30% 2/1/32 (RADIAN)			1,000,000		917,930
	California Infrastructure & Economic Development Bank
	Revenue (Kaiser Hospital Associates I, LLC)
	Series A 5.55% 8/1/31			1,000,000		1,011,140
	California Municipal Finance Authority Certificates of
	Participation (Community Hospital of Central California)
	5.50% 2/1/39			1,000,000		881,930
	California Statewide Communities Development
	Authority Revenue
	(Kaiser Permanente) Series A 5.00% 4/1/19			1,000,000		1,081,780
	(Southern California Senior Living) 7.25% 11/15/41			500,000		533,320
	(Valleycare Health Systems) Series A 5.125% 7/15/31			1,000,000		818,360
						13,826,076

17

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount				Value
Municipal Bonds (continued)
Housing Revenue Bonds – 7.26%
	California Housing Finance Agency Revenue
	(Home Mortgage)
	Series K 5.30% 8/1/23 (AMT)		$	1,000,000	$	988,610
	Series M 5.95% 8/1/25 (AMT)			1,000,000		1,040,940
	California Statewide Communities Development
	Multifamily Housing Authority Revenue
	(Citrus Gardens Apartments) Series D-1 5.375% 7/1/32			1,000,000		942,290
	(Silver Ridge Apartments) Series H 5.80% 8/1/33
	(FNMA) (AMT)			1,000,000		1,031,240
	Palm Springs Mobile Home Park Revenue (Sahara
	Mobile Home Park) Series A 5.75% 5/15/37			1,000,000		957,530
	Santa Clara County Multifamily Housing Authority
	Revenue (Rivertown Apartments Project)
	Series A 5.85% 8/1/31 (AMT)			1,000,000		1,004,540
						5,965,150
Lease Revenue Bonds – 7.83%
	California State Public Works Board Lease Revenue
	(General Services) Series A 6.25% 4/1/34			1,000,000		1,024,300
	Elsinore Valley Municipal Water District Certificates
	of Participation Series A 5.00% 7/1/24 (BHAC)			1,000,000		1,084,730
	Franklin-McKinley School District Certificates
	of Participation (Financing Project)
	Series B 5.00% 9/1/27 (AMBAC)			1,060,000		1,072,232
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series M-2 5.50% 7/1/35 (AMBAC)			700,000		719,950
	San Diego County Certificates of Participation
	5.75% 7/1/31 (NATL-RE)			1,000,000		1,009,290
	San Mateo Joint Powers Financing Authority Lease
	Revenue Refunding (Capital Projects)
	Series A 5.25% 7/15/26			1,000,000		1,085,880
Ω	San Mateo Unified High School District Certificates
	of Participation Capital Appreciation
	(Partnership Phase I Projects)
	Series B 5.00% 12/15/43 (AMBAC)			1,000,000		437,480
						6,433,862

18

		Principal amount				Value
Municipal Bonds (continued)
Local General Obligation Bonds – 6.29%
^	Anaheim School District Election 2002
	4.58% 8/1/25 (NATL-RE)		$	1,000,000	$	376,380
	Central Unified School District Election 2008
	Series A 5.625% 8/1/33 (ASSURED GTY)			1,000,000		1,066,640
	Fairfield-Suisun Unified School District Election 2002
	5.50% 8/1/28 (NATL-RE)			500,000		533,925
	Grossmont Union High School District Election 2004
	5.00% 8/1/23 (NATL-RE)			1,000,000		1,062,040
	Santa Barbara Community College District Election 2008
	Series A 5.25% 8/1/33			1,000,000		1,044,250
	Sierra Joint Community College Improvement
	District #2 (Western Nevada)
	Series A 5.25% 8/1/21 (BHAC) (FGIC)			1,000,000		1,083,520
						5,166,755
§Pre-Refunded Bonds – 3.01%
	California Department of Water Resources
	(Central Valley Project) Series X
	5.00% 12/1/29-12 (NATL-RE) (FGIC)			5,000		5,581
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Series A
	5.00% 8/1/28-13 (RADIAN)			60,000		68,209
	Golden State Tobacco Securitization Corporation Settlement
	Revenue (Asset-Backed Senior Notes) Series B
	5.50% 6/1/43-13 (RADIAN)			1,000,000		1,138,760
	5.625% 6/1/33-13			1,000,000		1,142,759
	Port Oakland Revenue Series L 5.375% 11/1/27-12
	(NATL-RE) (FGIC) (AMT)			110,000		123,272
						2,478,581
Resource Recovery Revenue Bond – 1.26%
	South Bayside Waste Management Authority
	Revenue (Shoreway Environmental Center)
	Series A 6.00% 9/1/36			1,000,000		1,032,910
						1,032,910

19

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount				Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 19.66%
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21		$	1,000,000	$	1,112,720
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Un-Refunded Balance
	Series A 5.00% 8/1/28 (RADIAN)			940,000		817,997
	Fremont Community Facilities District #1
	(Special Tax Pacific Commons) 5.375% 9/1/36			1,000,000		804,280
	Glendale Redevelopment Agency Tax Allocation Revenue
	(Central Glendale Redevelopment Project)
	5.50% 12/1/24			1,000,000		996,910
	Lake Elsinore Public Financing Authority Tax Allocation
	Series A 5.50% 9/1/30			1,000,000		985,490
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35			500,000		383,885
	Lancaster Redevelopment Agency Tax Allocation
	Combined Revenue (Combined Redevelopment
	Project Areas) 6.875% 8/1/39			500,000		534,475
@	Modesto Special Tax Community Facilities District #04-1
	(Village 2) 5.15% 9/1/36			1,000,000		735,650
@	Palm Drive Health Care District Parcel Tax Revenue
	5.25% 4/1/30			2,000,000		1,572,040
	Poway Redevelopment Agency Tax Allocation Revenue
	5.75% 6/15/33 (NATL-RE)			270,000		270,043
	Poway Unified School District Community Facilities
	District #1 Special Tax Refunding
	5.00% 10/1/17 (AGM)			1,000,000		1,142,750
	Puerto Rico Sales Tax Financing Corporation Revenue Series A
	5.25% 8/1/27			1,000,000		1,023,110
	ΩCapital Appreciation-First Subordinate 6.75% 8/1/32			2,040,000		1,552,624
	First Subordinate
	•5.00% 8/1/39			1,000,000		1,050,070
	5.75% 8/1/37			930,000		961,406
	Roseville Westpark Special Tax Public Community
	Facilities District #1 5.25% 9/1/37			500,000		377,215
	San Bernardino County Special Tax Community
	Facilities District #2002-1 5.90% 9/1/33			2,000,000		1,842,861
						16,163,526

20

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds – 7.32%
	California State Various Purposes 6.00% 4/1/38		$	515,000	$	532,088
	Guam Government Series A 6.75% 11/15/29			1,755,000		1,861,283
	Puerto Rico Commonwealth Government Development
	Bank Senior Notes Series B 5.00% 12/1/15			1,000,000		1,056,080
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/15			1,750,000		1,870,434
	Series C 6.00% 7/1/39			675,000		694,879
						6,014,764
Transportation Revenue Bonds – 6.17%
	Bay Area Toll Bridge Authority Revenue
	(San Francisco Bay Area)
	Series F-1 5.625% 4/1/44			2,000,000		2,137,100
	Port Oakland Revenue Series L 5.375% 11/1/27
	(NATL-RE) (FGIC) (AMT)			890,000		855,094
	Sacramento County Airport Services Revenue (PFC/Grant)
	Series C 6.00% 7/1/41			1,000,000		1,075,260
	San Diego Redevelopment Agency
	(Centre City Redevelopment Project)
	Series A 6.40% 9/1/25			1,000,000		1,002,120
						5,069,574
Water & Sewer Revenue Bonds – 3.96%
	California Department of Water Resources Systems
	Revenue (Central Valley Project) Series A
	5.00% 12/1/22			1,000,000		1,129,520
	5.00% 12/1/24			1,000,000		1,103,540
	Un-Refunded Balance Series X
	5.00% 12/1/29 (NATL-RE) (FGIC)			995,000		1,019,029
						3,252,089
Total Municipal Bonds (cost $81,269,253)						81,190,899

21

Statements of net assets
Delaware Tax-Free California Fund

		Number of shares			Value
Short-Term Investments – 0.62%
Money Market Instrument – 0.38%
	Federated California Municipal Cash Trust			311,090	$	311,090
						311,090
		Principal amount
•Variable Rate Demand Note – 0.24%
	California Infrastructure & Economic Development Bank
	Revenue (Asian Art Museum Foundation)
	0.11% 6/1/34 (LOC, JP Morgan Chase Bank) (NATL-RE)		$	200,000		200,000
						200,000
Total Short-Term Investments (cost $511,090)						511,090
Total Value of Securities – 99.40%
	(cost $81,780,343)					81,701,989
Receivables and Other Assets
	Net of Liabilities – 0.60%					490,237
Net Assets Applicable to 7,438,115
	Shares Outstanding – 100.00%				$	82,192,226
Net Asset Value – Delaware Tax-Free California Fund
	Class A ($64,722,850 / 5,859,945 Shares)						$11.04
Net Asset Value – Delaware Tax-Free California Fund
	Class B ($3,942,847 / 355,519 Shares)						$11.09
Net Asset Value – Delaware Tax-Free California Fund
	Class C ($13,526,529 / 1,222,651 Shares)						$11.06
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	82,343,166
Undistributed net investment income						18,787
Accumulated net realized loss on investments						(91,373		)
Net unrealized depreciation of investments						(78,354		)
Total net assets					$	82,192,226

22

^	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.
§	Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $2,307,690, which represented 2.81% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
BHAC — Insured by the Berkshire Hathaway Assurance Company
FGIC — Insured by the Financial Guaranty Insurance Company
FNMA — Federal National Mortgage Association collateral
LOC — Letter of Credit
NATL-RE — Insured by the 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)	$	11.04
Sales charge (4.50% of offering price) (B)		0.52
Offering price	$	11.56

(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

23

Statements of net assets
Delaware Tax-Free Colorado Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 99.07%
Corporate Revenue Bond – 2.17%
	Public Authority Energy National Gas Purpose
	Revenue Series 2008 6.50% 11/15/38		$	5,000,000	$	5,383,050
						5,383,050
Education Revenue Bonds – 11.42%
	Boulder County Development Revenue
	(University Corporation for Atmospheric Research)
	5.00% 9/1/33 (NATL-RE)			1,000,000		1,001,390
	5.00% 9/1/35 (AMBAC)			1,000,000		1,005,750
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Charter School Project) 5.50% 5/1/36 (XLCA)			2,280,000		2,283,169
	(Johnson & Wales University Project)
	Series A 5.00% 4/1/28 (XLCA)			1,000,000		949,690
	(Liberty Common Charter School Project)
	5.125% 12/1/33 (XLCA)			2,740,000		2,653,827
	(Montessori Districts Charter School Projects)
	6.125% 7/15/32			5,590,000		5,532,479
	(Pinnacle Charter School Project)
	5.00% 6/1/33 (XLCA)			2,170,000		2,066,643
	(University of Northern Colorado Student
	Housing Project) 5.125% 7/1/37 (NATL-RE)			4,000,000		3,730,040
	(Woodrow Wilson Charter School Project)
	5.25% 12/1/34 (XLCA)			1,960,000		1,891,420
	Colorado School Mines Auxiliary Facilities
	5.00% 12/1/37 (AMBAC)			425,000		418,693
	Colorado State Board Governors University Enterprise
	System Revenue Series A 5.00% 3/1/39			2,300,000		2,375,808
	University of Colorado Enterprise System
	Revenue Series A 5.00% 6/1/30 (AMBAC)			2,000,000		2,070,480
	University of Puerto Rico Revenue Series Q
	5.00% 6/1/36			2,750,000		2,401,520
						28,380,909
Electric Revenue Bonds – 5.86%
	Colorado Springs Utilities Revenue
	Series A 5.00% 11/15/29			5,000,000		5,065,350
	Platte River Power Authority Revenue Series HH
	5.00% 6/1/27			2,795,000		3,046,718
	5.00% 6/1/29			2,355,000		2,530,942

24

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37		$	525,000	$	501,627
	Series WW 5.00% 7/1/28			2,400,000		2,396,976
	Series WW 5.50% 7/1/38			1,000,000		1,012,600
						14,554,213
Escrowed to Maturity Bond – 2.23%
	Colorado Health Facilities Authority Revenue
	(Catholic Health Initiatives) Series A 5.50% 3/1/32			5,000,000		5,529,550
						5,529,550
Health Care Revenue Bonds – 21.12%
	Aurora Hospital Revenue (Childrens Hospital)
	Series D 5.00% 12/1/23 (AGM) (FSA)			2,775,000		2,925,988
	Colorado Health Facilities Authority Revenue
	•(Adventist Health/Sunbelt) 5.125% 11/15/24			1,375,000		1,413,816
	(Catholic Health Initiatives)
	Series A 4.75% 9/1/40			1,000,000		985,720
	Series A 5.00% 7/1/39			2,500,000		2,531,500
	Series D 6.25% 10/1/33			2,000,000		2,221,540
	(Christian Living Community Project)
	Series A 5.75% 1/1/37			1,500,000		1,277,415
	(Covenant Retirement Communities)
	Series A 5.50% 12/1/33 (RADIAN)			5,000,000		4,459,250
	(Evangelical Lutheran)
	5.00% 6/1/35			2,000,000		1,750,720
	6.125% 6/1/38			5,250,000		5,279,662
	Series A 5.25% 6/1/34			2,750,000		2,504,205
	(Parkview Medical Center) 5.00% 9/1/25			1,000,000		996,470
	(Porter Place) Series A 6.00% 1/20/36 (GNMA)			5,000,000		5,067,250
	(Vail Valley Medical Center Project) 5.80% 1/15/27			3,475,000		3,490,116
	(Valley View Hospital Association) 5.50% 5/15/28			1,000,000		993,090
	Colorado Springs Hospital Revenue 6.25% 12/15/33			2,500,000		2,650,100
	Delta County Memorial Hospital District Enterprise
	Revenue 5.35% 9/1/17			4,000,000		4,051,480
	Denver Health & Hospital Authority Health Care Revenue
	Series A 4.75% 12/1/36			1,500,000		1,212,510

25

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	University of Colorado Hospital Authority
	Revenue Series A
	5.00% 11/15/37		$	2,690,000	$	2,580,786
	5.25% 11/15/39			3,500,000		3,473,645
	6.00% 11/15/29			2,460,000		2,594,980
						52,460,243
Housing Revenue Bonds – 2.11%
	Colorado Housing & Finance Authority
	(Multifamily Housing Insured Mortgage)
	Series C3 6.15% 10/1/41			1,590,000		1,591,431
	(Single Family Mortgage)
	Series A 5.50% 11/1/29 (FHA)			1,500,000		1,580,535
	Puerto Rico Housing Finance Authority
	Subordinate (Capital Foundation of Modernization)
	5.125% 12/1/27			2,040,000		2,060,645
						5,232,611
Lease Revenue Bonds – 3.62%
	Aurora Certificates of Participation Refunding
	Series A 5.00% 12/1/30			2,370,000		2,479,802
	Colorado Educational & Cultural National
	Conference of State Legislatures Office Building
	Facilities Authority Revenue 5.25% 6/1/21			2,000,000		2,022,500
@	Conejos & Alamosa Counties School #11J
	Certificates of Participation 6.50% 4/1/11			520,000		520,629
	El Paso County Certificates of Participation (Detention
	Facilities Project) Series B 5.00% 12/1/27 (AMBAC)			1,500,000		1,527,780
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33			1,475,000		1,415,499
	•Series M-2 5.50% 7/1/35 (AMBAC)			1,000,000		1,028,500
						8,994,710
Local General Obligation Bonds – 15.03%
	Adams & Arapahoe Counties Joint School
	District #28J (Aurora) 6.00% 12/1/28			2,500,000		2,882,375
	Arapahoe County Water & Wastewater
	Public Improvement District Refunding
	Series A 5.125% 12/1/32 (NATL-RE)			2,555,000		2,561,643

26

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Boulder Larimer & Weld Counties
	(St. Vrain Valley School District #1J)
	5.00% 12/15/33		$	2,500,000	$	2,597,225
	Denver City & County Justice System
	5.50% 8/1/16			5,000,000		5,974,702
	(Facilities & Zoo) 5.00% 8/1/19			1,020,000		1,146,245
	Denver City & County School District #1
	Series A 5.00% 12/1/29			960,000		1,034,035
	Denver West Metropolitan District
	5.00% 12/1/33 (RADIAN)			1,400,000		1,111,838
	Douglas County School District #1
	(Douglas & Elbert Counties) Series B
	5.00% 12/15/24			2,355,000		2,547,969
	El Paso County School District #2 (Harrison)
	5.00% 12/1/27 (NATL-RE)			2,115,000		2,204,020
	Garfield County School District #2
	5.00% 12/1/25 (AGM) (FSA)			3,280,000		3,526,128
	Grand County School District #2 (East Grand)
	5.25% 12/1/25 (FSA)			2,485,000		2,716,577
	Gunnison Watershed School District #1J
	Series 2009 5.25% 12/1/33			1,400,000		1,479,408
	Jefferson County School District #R-001
	5.25% 12/15/24			2,500,000		2,952,950
	La Plata County School District #9-R (Durango)
	5.125% 11/1/24 (NATL-RE)			1,000,000		1,067,620
@	North Range Metropolitan
	District #1 4.50% 12/15/31 (ACA)			1,500,000		1,040,025
	District #2 5.50% 12/15/37			1,200,000		839,160
	Sand Creek Metropolitan District Refunding & Improvement
	5.00% 12/1/31 (XLCA)			500,000		422,480
	Weld County School District #4
	5.00% 12/1/19 (AGM) (FSA)			1,085,000		1,245,667
						37,350,067
§Pre-Refunded Bonds – 15.11%
	Boulder County Hospital Revenue
	(Development Longmont United Hospital Project)
	6.00% 12/1/30-10 (RADIAN)			1,500,000		1,564,710

27

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Littleton Academy Charter School Project)
	6.125% 1/15/31-12		$	2,000,000	$	2,201,620
	(Stargate Charter School Project) 6.125% 5/1/33-13			2,000,000		2,314,740
	(University of Denver Project)
	Series A 5.00% 3/1/27-12 (NATL-RE)			5,000,000		5,433,599
•	Colorado Health Facilities Authority Revenue
	(Adventist Health/Sunbelt) 5.125% 11/15/24-16			75,000		89,043
	Douglas County School District #1
	(Douglas & Elbert Counties)
	Series B 5.125% 12/15/25-12 (AGM) (FSA)			2,000,000		2,236,400
	El Paso County Certificates of Participation
	(Judicial Building Project)
	Series A 5.00% 12/1/27-12 (AMBAC)			2,000,000		2,216,240
	Fremont County School District #1 (Canon City)
	5.00% 12/1/24-13 (NATL-RE)			1,735,000		1,989,178
	Garfield Pitkin & Eagle County School
	District #1 (Roaring Fork County)
	Series A 5.00% 12/15/27-14 (AGM) (FSA)			1,500,000		1,752,075
	Lincoln Park Metropolitan District 7.75% 12/1/26-11			2,500,000		2,816,575
	Loveland Special Improvements District #1
	7.50% 7/1/29-10			4,980,000		5,196,778
	North Range Metropolitan District #1
	7.25% 12/15/31-11			3,385,000		3,761,514
	Northwest Parkway Public Highway Authority
	Series A 5.25% 6/15/41-11 (AGM) (FSA)			3,150,000		3,405,371
	Puerto Rico Commonwealth Series A 5.25% 7/1/30-16			1,235,000		1,473,516
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33-14			25,000		28,959
	University of Colorado Enterprise System Revenue
	Refunding Series 2001A 5.375% 6/1/26-11			1,000,000		1,062,980
						37,543,298

28

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 8.56%
	Aspen Sales Tax Revenue (Parks & Open Spaces)
	Series B 5.25% 11/1/23 (AGM) (FSA)		$	2,040,000	$	2,209,565
@	Baptist Road Rural Transportation Authority
	Sales & Use Tax Revenue 5.00% 12/1/26			2,000,000		1,300,080
	Park Meadows Business Improvement District
	Shared Sales Tax Revenue
	5.30% 12/1/27			950,000		834,452
	5.35% 12/1/31			720,000		610,870
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			2,200,000		2,086,788
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series B 5.00% 7/1/46			1,200,000		1,064,820
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate Series A
	•5.00% 8/1/39			2,500,000		2,625,175
	5.25% 8/1/27			1,100,000		1,125,421
	5.75% 8/1/37			3,095,000		3,199,518
	ΩCapital Appreciation 6.75% 8/1/32			5,075,000		3,862,531
	Regional Transportation District Sales Tax Revenue
	Series A 5.25% 11/1/18			2,000,000		2,346,580
						21,265,800
State General Obligation Bonds – 6.09%
	Guam Government Series A 7.00% 11/15/39			2,500,000		2,677,600
	Puerto Rico Commonwealth Government Development
	Bank Senior Notes Series B
	5.00% 12/1/14			1,000,000		1,062,760
	5.00% 12/1/15			1,000,000		1,056,080
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/21			4,000,000		4,048,640
	Series C 6.00% 7/1/39			1,685,000		1,734,623
	Refunding Series A 5.25% 7/1/15			1,650,000		1,763,553
	Puerto Rico Commonwealth
	Series A 5.25% 7/1/30			765,000		749,034
	Series B 5.00% 7/1/35			190,000		175,131
	Virgin Islands Public Finance Authority Revenue
	(Gross Receipts Taxes Loan Note)
	5.00% 10/1/31 (ACA)			2,000,000		1,855,340
						15,122,761

29

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 3.49%
	Denver City & County Airport Revenue
	5.25% 11/15/36		$	2,500,000	$	2,576,575
	Series A 5.00% 11/15/25 (NATL-RE) (FGIC)			2,000,000		2,102,260
	Series B 5.00% 11/15/33 (XLCA)			4,000,000		3,988,680
						8,667,515
Water & Sewer Revenue Bonds – 2.26%
	Colorado Springs Utilities Systems Improvement Revenue
	Series C 5.50% 11/15/48			3,250,000		3,411,004
	Eagle River Water & Sanitation District Enterprise Revenue
	5.00% 12/1/29 (ASSURED GTY)			250,000		263,003
	5.125% 12/1/39 (ASSURED GTY)			850,000		872,602
	Pueblo Board Waterworks Revenue
	5.00% 11/1/21 (AGM) (FSA)			1,000,000		1,069,070
						5,615,679
Total Municipal Bonds (cost $239,825,572)						246,100,406
		Number of shares
Short-Term Investment – 1.02%
Money Market Instrument – 1.02%
	Dreyfus Cash Management Fund			2,536,650		2,536,650
Total Short-Term Investment (cost $2,536,650)						2,536,650
Total Value of Securities – 100.09%
	(cost $242,362,222)					248,637,056
Liabilities Net of Receivables and
	Other Assets – (0.09%)					(219,936		)
Net Assets Applicable to 22,838,222
	Shares Outstanding – 100.00%				$	248,417,120
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class A ($232,516,628 / 21,379,748 Shares)						$10.88
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class B ($2,023,024 / 185,865 Shares)						$10.88
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class C ($13,877,468 / 1,272,609 Shares)						$10.90

30

Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	246,563,644
Undistributed net investment income		6,252
Accumulated net realized loss on investments		(4,427,610	)
Net unrealized appreciation of investments		6,274,834
Total net assets	$	248,417,120

@	Illiquid security. At February 28, 2010, the aggregate amount of illiquid securities was $3,699,894, which represented 1.49% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
§	Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 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.
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
ASSURED GTY — Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
FSA — Insured by Financial Security Assurance
GNMA — Government National Mortgage Association collateral
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
XLCA — Insured by XL Capital Assurance

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)	$	10.88
Sales charge (4.50% of offering price) (B)		0.51
Offering price	$	11.39

(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

32

Delaware Tax-Free Idaho Fund February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 97.33%
Corporate Revenue Bonds – 4.52%
	Meridian Economic Industrial Development Revenue
	(Hi-Micro Project) 5.85% 8/15/11 (AMT)		$	660,000	$	662,132
	Nez Perce County Pollution Control Revenue
	(Potlatch Project) 6.00% 10/1/24			2,535,000		2,407,312
	Power County Pollution Control Revenue
	(FMC Project) 5.625% 10/1/14			2,475,000		2,462,501
						5,531,945
Education Revenue Bonds – 9.56%
	Boise State University Revenue
	5.00% 4/1/17 (AMBAC)			500,000		533,215
	Series A 4.25% 4/1/32 (NATL-RE)			1,500,000		1,455,960
	Series A 5.00% 4/1/18 (NATL-RE) (FGIC)			1,500,000		1,601,265
	Series A 5.00% 4/1/39			1,000,000		1,042,260
	Un-Refunded Series 07 5.375% 4/1/22 (FGIC)			15,000		15,805
	Idaho Housing & Financing Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39			1,000,000		1,142,630
	Idaho State University Revenue Refunding & Improvement
	5.00% 4/1/20 (AGM)			1,130,000		1,214,400
	5.00% 4/1/23 (AGM)			2,115,000		2,193,740
	University of Idaho (General Refunding)
	Series A 5.00% 4/1/21 (AMBAC)			1,150,000		1,219,932
	•Series B 4.50% 4/1/41 (AGM)			1,000,000		1,052,140
	University of Puerto Rico Revenue
	Series Q 5.00% 6/1/36			250,000		218,320
						11,689,667
Electric Revenue Bonds – 1.38%
	Boise-Kuna Irrigation District Revenue
	(Arrowrock Hydroelectric Project) 6.30% 6/1/31			1,000,000		1,075,120
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37			210,000		200,651
	Series WW 5.50% 7/1/38			400,000		405,040
						1,680,811
Health Care Revenue Bonds – 1.81%
	Idaho Health Facilities Authority Revenue
	(St. Luke’s Medical Center Project) 6.75% 11/1/37			1,000,000		1,100,480
	(Trinity Health Credit Group) Series B 6.125%12/1/28			1,000,000		1,113,470
						2,213,950

33

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds – 7.00%
	Idaho Housing Agency Single Family Mortgage Revenue
	Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT)		$	15,000	$	15,022
	Series A 6.10% 7/1/16 (FHA) (VA) (AMT)			25,000		25,034
	Series B 6.45% 7/1/15 (AMT)			10,000		10,016
	Series C-2 6.35% 7/1/15 (AMT)			10,000		10,015
	Series E 6.35% 7/1/15 (FHA) (AMT)			20,000		20,030
	Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT)			75,000		75,105
	Idaho Housing & Finance Association
	Single Family Mortgage Revenue
	Series B Class I 5.00% 7/1/37 (AMT)			815,000		815,293
	Series B Class I 5.50% 7/1/38			985,000		1,023,582
	Series C Class II 4.95% 7/1/31			1,000,000		1,011,130
	Series C Class III 5.35% 1/1/25 (AMT)			225,000		229,082
	Series D Class III 5.45% 7/1/23 (AMT)			795,000		814,454
	Series E 4.85% 7/1/28 (AMT)			1,500,000		1,483,739
	Series E Class III 4.875% 1/1/26 (AMT)			145,000		145,207
	Series E Class III 5.00% 1/1/28 (AMT)			885,000		860,406
	Series I Class I 5.45% 1/1/39 (AMT)			1,000,000		1,018,440
	Puerto Rico Housing Finance Authority Subordinate-
	Capital Foundation Modernization
	5.125% 12/1/27			1,000,000		1,010,120
						8,566,675
Lease Revenue Bonds – 3.61%
	Boise City Certificate of Participation
	5.375% 9/1/20 (NATL-RE) (FGIC) (AMT)			2,100,000		2,106,573
	Boise City Revenue Series A 5.375% 12/1/31 (NATL-RE)			500,000		513,515
	Idaho State Building Authority Revenue
	Series A 5.00% 9/1/43 (XLCA)			1,000,000		1,005,260
	Series B 5.00% 9/1/21 (NATL-RE)			750,000		790,568
						4,415,916
Local General Obligation Bonds – 21.59%
	Ada & Canyon Counties Joint School District #2 Meridian
	(School Board Guaranteed Program)
	4.50% 7/30/22			1,500,000		1,663,695
	4.75% 2/15/20			1,000,000		1,084,990
	5.50% 7/30/16			1,305,000		1,565,426

34

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Bannock County School District #025
	(Pocatello School Board Guaranteed Program)
	5.00% 8/15/15		$	1,040,000	$	1,189,510
	5.00% 8/15/16			1,100,000		1,239,315
	Boise City Independent School District
	5.00% 8/1/24 (AGM)			1,500,000		1,661,895
	Canyon County School District #132 Caldwell
	5.00% 7/30/15 (NATL-RE) (FGIC)			2,000,000		2,273,700
	Class A 5.00% 9/15/22 (AGM)			1,725,000		1,953,149
	Class A 5.00% 9/15/23 (AGM)			1,810,000		2,037,046
	Idaho Bond Bank Authority Revenue Series A
	5.00% 9/15/28			1,000,000		1,093,980
	5.25% 9/15/26			2,000,000		2,267,020
	Lemhi County 5.20% 8/1/27 (AGM)			2,145,000		2,239,595
	Nampa Series B 5.00% 8/1/21 (NATL-RE) (FGIC)			2,475,000		2,634,414
	Power & Cassia Counties Joint School District #381
	American Falls 5.00% 8/1/17			1,155,000		1,225,143
	Twin Falls County School District #413 Filer
	5.25% 9/15/25			2,000,000		2,280,200
						26,409,078
§Pre-Refunded Bonds – 14.42%
	Ada & Canyon Counties Joint School District #2 Meridian
	(School Board Guaranteed Program)
	5.00% 7/30/20-12			1,555,000		1,714,325
	5.125% 7/30/19-12			1,005,000		1,093,510
	Un-Refunded 5.00% 7/30/20-12			600,000		651,060
	Boise State University Revenue Refunding & Improvement
	5.125% 4/1/31-12 (FGIC)			1,000,000		1,093,830
	5.375% 4/1/22-12 (FGIC)			985,000		1,082,545
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series D 5.25% 7/1/38-12			1,000,000		1,098,220
	Series Y 5.00% 7/1/36-16			1,250,000		1,472,863
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series A 5.375% 10/1/24-10			1,750,000		1,822,100
	Puerto Rico Commonwealth Public Improvement Revenue
	Series A 5.125% 7/1/31-11			1,010,000		1,075,822

35

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Puerto Rico Electric Power Authority Revenue
	Series II 5.25% 7/1/31-12		$	1,000,000	$	1,117,450
	Series NN 5.125% 7/1/29-13			105,000		119,315
	Series RR 5.00% 7/1/35-15 (FGIC)			1,545,000		1,810,987
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.50% 7/1/23-14			1,000,000		1,168,860
	University of Idaho Revenue
	(Student Fee Housing Improvements Project)
	5.25% 4/1/31-11 (FGIC)			2,195,000		2,312,805
						17,633,692
Special Tax Revenue Bonds – 17.08%
	Boise Urban Renewal Agency Parking Revenue
	(Tax Increment)
	Series A 6.125% 9/1/15			1,160,000		1,174,535
	Series B 6.125% 9/1/15			950,000		961,904
	Bonner County Local Improvement District #93-1
	6.50% 4/30/10			60,000		60,226
	Coeur D’Alene Local Improvement District #6
	Series 1996 6.05% 7/1/10			90,000		91,246
	Series 1997 6.10% 7/1/12			40,000		40,488
	Series 1998 6.10% 7/1/14			45,000		45,452
	Idaho Bond Bank Authority Revenue
	Series B 4.125% 9/15/36 (NATL-RE)			755,000		715,967
	Series B 5.00% 9/15/30 (NATL-RE)			725,000		766,630
	Series C 4.00% 9/15/29			1,320,000		1,316,423
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series K 5.00% 7/1/30			890,000		844,201
	Series W 5.50% 7/1/15			175,000		189,142
	Puerto Rico Sales Tax Financing Corporation Revenue Series A
	5.25% 8/1/57			1,000,000		992,860
Ω	Capital Appreciation-First Subordinate 6.75% 8/1/32			5,040,000		3,835,893
	First Subordinate
	5.25% 8/1/27			3,000,000		3,069,329
	5.50% 8/1/42			1,500,000		1,502,204
	5.75% 8/1/37			3,350,000		3,463,129

36

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note) Series A
	5.25% 10/1/20		$	500,000	$	510,190
	5.25% 10/1/21			500,000		509,325
	5.25% 10/1/24			800,000		810,048
						20,899,192
State General Obligation Bonds – 5.70%
	Guam Government Series A 6.75% 11/15/29			1,565,000		1,659,776
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed
	4.75% 12/1/15 (NATL-RE)			1,000,000		1,029,330
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/22			1,000,000		1,008,470
	Series C 6.00% 7/1/39			1,500,000		1,544,175
	Un-Refunded Series A 5.125% 7/1/31			1,815,000		1,734,360
						6,976,111
Transportation Revenue Bonds – 7.93%
	Idaho Housing & Finance Association Grant Revenue
	(Anticipated Federal Highway Trust)
	4.00% 7/15/17			500,000		546,545
	4.75% 7/15/19			1,410,000		1,583,881
	5.00% 7/15/24 (NATL-RE)			2,000,000		2,141,780
	5.25% 7/15/20 (ASSURED GTY)			2,750,000		3,136,266
	5.25% 7/15/25 (ASSURED GTY)			1,500,000		1,652,055
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Un-Refunded
	Series G 5.00% 7/1/33			690,000		641,472
						9,701,999
Water & Sewer Revenue Bonds – 2.73%
	Idaho Bond Bank Authority Revenue
	Series C 5.375% 9/15/38			1,000,000		1,077,340
	Moscow Sewer Revenue 5.00% 11/1/22 (AGM)			2,175,000		2,265,828
						3,343,168
Total Municipal Bonds (cost $113,787,659)						119,062,204

37

Statements of net assets
Delaware Tax-Free Idaho Fund

	Number of shares		Value
Short-Term Investment – 1.41%
Money Market Instrument – 1.41%
Dreyfus Cash Management Fund	1,727,684	$	1,727,684
Total Short-Term Investment (cost $1,727,684)			1,727,684
Total Value of Securities – 98.74%
(cost $115,515,343)			120,789,888
Receivables and Other Assets
Net of Liabilities – 1.26%			1,544,617
Net Assets Applicable to 10,430,836
Shares Outstanding – 100.00%		$	122,334,505
Net Asset Value – Delaware Tax-Free Idaho Fund
Class A ($93,004,765 / 7,928,338 Shares)			$11.73
Net Asset Value – Delaware Tax-Free Idaho Fund
Class B ($3,014,065 / 257,425 Shares)			$11.71
Net Asset Value – Delaware Tax-Free Idaho Fund
Class C ($26,315,675 / 2,245,073 Shares)			$11.72
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)		$	117,058,432
Distributions in excess of net investment income			(11,301	)
Accumulated net realized gain on investments			12,829
Net unrealized appreciation of investments			5,274,545
Total net assets		$	122,334,505

§	Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
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.
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

38

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to the Alternative Minimum Tax
ASSURED GTY — Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
NATL-RE — Insured by the National Public Finance Guarantee Corporation
VA — Insured by the Veterans Administration
XLCA — Insured by XL Capital Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Idaho Fund
Net asset value Class A (A)	$	11.73
Sales charge (4.50% of offering price) (B)		0.55
Offering price	$	12.28

(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

39

Statements of net assets
Delaware Tax-Free New York Fund	February 28, 2010 (Unaudited)

		Principal amount			Value
Municipal Bonds – 95.98%
Corporate Revenue Bonds – 7.93%
	Jefferson County Industrial Development Agency
	Solid Waste Disposal (International Paper)
	Series A 5.20% 12/1/20 (AMT)		$	350,000	$	343,473
	Liberty Development Corporation Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35			500,000		507,539
	Nassau County Tobacco Settlement Refunding
	(Asset-Backed) Series A-3 5.125% 6/1/46			500,000		403,995
	New York City Industrial Development Agency Revenue
	(Brooklyn Navy Yard Cogen Partners)
	5.75% 10/1/36 (AMT)			450,000		346,001
•	New York City Industrial Development Agency
	Special Facilities Revenue
	(American Airlines-JFK International Airport)
	7.625% 8/1/25 (AMT)			250,000		246,465
	7.75% 8/1/31 (AMT)			250,000		250,898
	New York Energy Research & Development Authority
	Pollution Control Revenue Refunding
	(Central Hudson Gas)
	Series A 5.45% 8/1/27 (AMBAC)			500,000		505,224
	Suffolk County Industrial Development Agency Revenue
	(Keyspan-Port Jefferson Energy Center)
	5.25% 6/1/27 (AMT)			250,000		246,078
	TSASC Tobacco Settlement Refunding (Asset-Backed)
	Series 1 5.125% 6/1/42			250,000		203,520
						3,053,193
Education Revenue Bonds – 22.90%
	Albany Industrial Development Agency Civic Facilities
	Revenue (Brighter Choice Charter School)
	Series A 5.00% 4/1/37			250,000		199,810
	Amherst Industrial Development Agency Civic Facilities
	Revenue (UBF Faculty Student Housing)
	Series A 5.75% 8/1/30 (AMBAC)			200,000		203,020
	Dutchess County Industrial Development Agency
	(Marist College) 5.00% 7/1/20			500,000		509,840
	Hempstead Town Local Development Corporation
	Revenue (Molloey College Project) 5.75% 7/1/23			400,000		424,916

40

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Madison County Industrial Development Agency Civic
	Facility Revenue (Colgate University Project)
	Series A 5.00% 7/1/39 (NATL-RE)		$	400,000	$	405,588
	New York State Dormitory Authority Revenue
	(Columbia University) Series A 5.00% 7/1/23			500,000		528,739
	(Pratt Institute) Series C 5.125% 7/1/39 (ASSURED GTY)			300,000		309,078
	•Series B 5.25% 11/15/23			250,000		271,738
	Un-Refunded Series B 7.50% 5/15/11			125,000		135,018
	New York State Dormitory Authority Revenue
	Non-State Supported Debt
	(Brooklyn Law School) 5.75% 7/1/33			340,000		348,367
	(Cornell University) Series A
	4.75% 7/1/29			100,000		104,960
	5.00% 7/1/34			170,000		180,078
	5.00% 7/1/39			500,000		525,304
	(Ithaca College) 5.00% 7/1/16			400,000		441,108
	(Manhattan Marymount) 5.00% 7/1/24			350,000		354,148
	(Mt. Sinai School Medicine) 5.125% 7/1/39			500,000		501,255
	(New York University) Series A 5.25% 7/1/48			400,000		411,680
	(Rockefeller University) Series A 5.00% 7/1/27			250,000		278,085
	(Teachers College) 5.50% 3/1/39			250,000		261,008
	(University of Rochester)
	Series A 5.125% 7/1/39			250,000		258,713
	ΩSeries A-2 4.375% 7/1/20			250,000		242,690
	Onondaga County Trust for Cultural Resources Revenue
	(Syracuse University Project)
	Series B 5.00% 12/1/19			350,000		406,473
	St. Lawrence County Industrial Development Agency
	Civic Faculty Revenue
	(St. Lawrence University) Series A 5.00% 10/1/16			500,000		566,794
	Suffolk County Industrial Development Agency
	Civic Faculty Revenue Refunding
	(New York Institute of Technology Project)
	Series A 5.00% 3/1/26			600,000		601,841
	Yonkers Industrial Development Agency
	Civic Faculty Revenue
	(Sarah Lawrence) Series A 6.00% 6/1/29			325,000		340,243
						8,810,494

41

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds – 2.97%
	Long Island Power Authority New York Electric System Revenue
	Series A 5.75% 4/1/39		$	350,000	$	381,531
	Series B 5.75% 4/1/33			250,000		272,133
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37			100,000		95,548
	Series WW 5.00% 7/1/28			190,000		189,761
	Series WW 5.50% 7/1/38			200,000		202,520
						1,141,493
Health Care Revenue Bonds – 8.54%
	Albany Industrial Development Agency Civic Facility
	Revenue (St. Peter’s Hospital Project)
	Series A 5.25% 11/15/32			500,000		472,705
	East Rochester Housing Authority Revenue Refunding
	(Senior Living-Woodland Village Project) 5.50% 8/1/33			200,000		165,880
	New York Dormitory Authority Revenue
	(Catholic Health Long Island Obligation Group)
	5.00% 7/1/27			400,000		380,368
	(Chapel Oaks) 5.45% 7/1/26 (LOC, Allied Irish Bank)			450,000		452,043
	(Millard Fillmore Hospital) 5.375% 2/1/32 (AMBAC) (FHA)			225,000		225,005
	(Winthrop South Nassau Hospital) Series B 5.50% 7/1/23			500,000		507,275
	New York Dormitory Authority Revenue
	Non-State Supported Debt (Memorial Sloan-Kettering)
	Series 1 5.00% 7/1/35			225,000		229,397
	(North Shore Long Island Jewish Group)
	Series A 5.50% 5/1/37			500,000		507,514
	(Orange Regional Medical Center) 6.125% 12/1/29			365,000		346,352
						3,286,539
Housing Revenue Bonds – 1.95%
	New York City Housing Development Multifamily Housing
	Revenue Series G-1 4.875% 11/1/39 (AMT)			250,000		242,543
	New York State Housing Finance Agency Revenue
	(Affordable Housing) Series A 5.25% 11/1/41			500,000		507,235
						749,778
Lease Revenue Bonds – 8.94%
	Battery Park City Authority Revenue Series A 5.00% 11/1/26			250,000		264,428
	Erie County Industrial Development Agency
	School Faculty Revenue (City School District of Buffalo)
	Series A 5.25% 5/1/25			500,000		545,995

42

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Hudson Yards Infrastructure Revenue
	Series A 5.00% 2/15/47		$	500,000	$	478,430
	New York City Industrial Development Agency
	Special Airport Facility Revenue
	(Airis JFK I Project) Series A 5.50% 7/1/28 (AMT)			500,000		414,140
	Onondaga County Industrial Development Authority
	Revenue Subordinated
	(Air Cargo) 7.25% 1/1/32 (AMT)			500,000		456,240
	Tobacco Settlement Financing Authority
	Revenue (Asset-Backed) Series B-1C
	5.50% 6/1/20			200,000		215,122
	5.50% 6/1/21			500,000		536,790
	United Nations Development Corporation
	Revenue Refunding Series A 5.00% 7/1/26			500,000		527,465
						3,438,610
Local General Obligation Bonds – 3.17%
	New York City
	Series D 5.00% 11/1/34			125,000		127,498
	Subordinated Series C-1 5.00% 10/1/19			500,000		556,085
	Subordinated Series I-1 5.375% 4/1/36			500,000		536,980
						1,220,563
§Pre-Refunded Bonds – 6.27%
	Albany Parking Authority Revenue
	Series A 5.625% 7/15/25-11			280,000		303,100
	New York Dormitory Authority Revenue
	(North Shore Long Island Jewish Group Project)
	5.50% 5/1/33-13			500,000		572,085
	Pre-Refunding Series B 7.50% 5/15/11-10			75,000		76,128
	Puerto Rico Commonwealth Highway &
	Transportation Authority Revenue
	Series Y 5.50% 7/1/36-16			475,000		573,781
	Puerto Rico Commonwealth Series B 5.25% 7/1/32-16			155,000		184,935
	Puerto Rico Electric Power Authority Revenue
	Series II 5.25% 7/1/31-12			500,000		558,725
	Series NN 5.125% 7/1/29-13			125,000		142,041
						2,410,795

43

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 20.51%
	Brooklyn Arena Local Development Corporation Pilot
	Revenue (Barclays Center Project) 6.50% 7/15/30		$	500,000	$	543,065
	Metropolitan Transportation Authority Revenue
	(Dedicated Tax Fund) Series B 5.00% 11/15/34			500,000		521,875
	New York City Industrial Development Agency Revenue
	(Yankee Stadium Project-Pilot) 5.00% 3/1/46 (FGIC)			300,000		280,587
	New York City Transitional Finance Authority Revenue
	(Subordinated Future Tax Secured)
	Series B 5.00% 11/1/18			500,000		568,989
	New York City Trust for Cultural Resources Revenue Refunding
	(American Museum of National History)
	Series A 5.00% 7/1/44 (NATL-RE)			250,000		253,788
	(Museum of Modern Art) Series 1A 5.00% 4/1/31			250,000		263,928
	New York Dormitory Authority State Personal Income Tax
	Revenue Series C 5.00% 3/15/15			250,000		290,018
	New York Dormitory Authority State Supported Debt
	Revenue (Consolidated Services Contract)
	5.00% 7/1/17 (AGM) (FSA)			500,000		569,544
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)			500,000		556,344
	New York State Thruway Authority
	(State Personal Income Tax Revenue-Education)
	Series A 5.00% 3/15/38			500,000		520,675
	New York State Urban Development Revenue
	Personal Income Tax Series A-1 5.00% 12/15/22			250,000		277,760
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			235,000		222,907
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series B 5.00% 7/1/15			250,000		261,915
	Puerto Rico Sales Tax Financing Corporation Revenue Series A
	5.25% 8/1/57			325,000		322,680
	ΩCapital Appreciation-First Subordinate 6.75% 8/1/32			510,000		388,156
	First Subordinate
	•5.00% 8/1/39			500,000		525,035
	5.50% 8/1/42			500,000		500,735
	5.75% 8/1/37			485,000		501,378
	Schenectady Metroplex Development Authority Revenue
	Series A 5.375% 12/15/21			500,000		523,040
						7,892,419

44

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds – 4.70%
	Guam Government Series A 7.00% 11/15/39		$	395,000	$	423,061
	New York State Series A
	5.00% 3/1/38			500,000		519,730
	5.00% 2/15/39			250,000		260,825
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed 4.75% 12/1/15 (NATL-RE)			230,000		236,746
	Puerto Rico Commonwealth Public Improvement
	Refunding Series C 6.00% 7/1/39			270,000		277,952
	Puerto Rico Commonwealth Series B 5.25% 7/1/32			95,000		91,840
						1,810,154
Transportation Revenue Bonds – 6.22%
	Albany Parking Authority Revenue Series A 5.625% 7/15/25			220,000		223,984
	Metropolitan Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28			200,000		229,970
	•Series B 5.00% 11/15/27			200,000		222,348
	Series F 5.00% 11/15/15			150,000		170,541
	New York State Thruway Authority General Revenue Series H
	5.00% 1/1/14 (NATL-RE)			500,000		560,590
	5.00% 1/1/15 (NATL-RE)			250,000		282,010
	Port Authority New York & New Jersey
	(Consolidated-One Hundred Fifty-Third) 5.00% 7/15/35			250,000		260,235
	Triborough Bridge & Tunnel Authority Revenue
	Series C 5.00% 11/15/24			200,000		220,516
	•Subordinated Series B-1 5.00% 11/15/25			200,000		222,652
						2,392,846
Water & Sewer Revenue Bonds – 1.88%
	New York City Municipal Water Finance Authority
	Water & Sewer System Revenue
	(Fiscal 2009) Series A 5.75% 6/15/40			200,000		224,208
	(Second General Resolution) Series FF-2 5.50% 6/15/40			250,000		275,203
	New York State Environmental Facilities Corporation
	State Clean Water & Drinking Water Revolving Funds
	(New York City Municipal Project)
	Subordinated Series B 5.00% 6/15/21			200,000		222,594
						722,005
	Total Municipal Bonds (cost $35,086,159)					36,928,889

45

Statements of net assets
Delaware Tax-Free New York Fund

	Principal amount			Value
Short-Term Investments – 4.16%
•Variable Rate Demand Notes – 4.16%
New York City Industrial Development Agency Civic Facility
Revenue Remarketed (New York Law School Project)
Series B-2 0.40% 7/1/36		$	300,000	$	300,000
New York City Subseries A-7 0.14% 8/1/20			1,300,000		1,300,000
Total Short-Term Investments (cost $1,600,000)					1,600,000
Total Value of Securities – 100.14%
(cost $36,686,159)					38,528,889
Liabilities Net of Receivables
and Other Assets – (0.14%)					(53,637		)
Net Assets Applicable to 3,582,593
Shares Outstanding – 100.00%				$	38,475,252
Net Asset Value – Delaware Tax-Free New York Fund
Class A ($28,593,584 / 2,660,807 Shares)						$10.75
Net Asset Value – Delaware Tax-Free New York Fund
Class B ($829,666 / 77,373 Shares)						$10.72
Net Asset Value – Delaware Tax-Free New York Fund
Class C ($9,052,002 / 844,413 Shares)						$10.72
Components of Net Assets at February 28, 2010:
Shares of beneficial interest (unlimited authorization – no par)				$	36,641,785
Distributions in excess of net investment income					(651		)
Accumulated net realized loss on investments					(8,612		)
Net unrealized appreciation of investments					1,842,730
Total net assets				$	38,475,252

 

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.
§	Pre-Refunded bonds. Municipals that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
•	Variable rate security. The rate shown is the rate as of February 28, 2010.

46

Summary of abbreviations:

AGM — Insured by Assured Guaranty Municipal Corporation

AMBAC — Insured by the AMBAC Assurance Corporation

AMT — Subject to Alternative Minimum Tax

ASSURED GTY — Insured by the Assured Guaranty Corporation

FHA — Insured by the Federal Housing Administration

FGIC — Insured by the Financial Guaranty Insurance Company

FSA — Insured by Financial Security Assurance

LOC — Letter of Credit

NATL-RE — Insured by the 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)		$	10.75
Sales charge (4.50% of offering price) (B)			0.51
Offering price		$	11.26

 

(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

47

Statements of operations
	Six Months Ended February 28, 2010 (Unaudited)

  

	Delaware Tax-Free			Delaware Tax-Free			Delaware Tax-Free
	Arizona Fund			California Fund			Colorado Fund
Investment Income:
Interest	$	2,963,871		$	2,172,084		$	6,324,731
Expenses:
Management fees		310,592			222,222			677,425
Distribution expenses – Class A		139,312			78,761			288,697
Distribution expenses – Class B		26,633			22,247			12,146
Distribution expenses – Class C		37,629			66,524			63,967
Dividend disbursing and transfer agent
fees and expenses		33,733			27,902			65,802
Accounting and administration expenses		25,374			16,134			49,183
Legal fees		11,783			7,175			17,875
Audit and tax		9,525			8,107			13,117
Reports and statements to shareholders		8,557			5,956			17,109
Registration fees		7,457			3,302			4,231
Pricing fees		3,910			3,842			4,390
Trustees’ fees		3,744			2,424			7,405
Insurance fees		2,112			1,356			4,016
Custodian fees		1,318			862			2,509
Consulting fees		857			544			1,607
Dues and services		308			216			641
Trustees’ expenses		276			177			573
		623,120			467,751			1,230,693
Less fees waived		(70,644	)		(68,268	)		(48,381	)
Total operating expenses		552,476			399,483			1,182,312
Net Investment Income		2,411,395			1,772,601			5,142,419
Net Realized and Unrealized Gain
on Investments:
Net realized gain on investments		853,830			123,716			677,070
Net change in unrealized appreciation/
depreciation of investments		1,943,371			3,067,593			5,605,838
Net Realized and Unrealized Gain
on Investments		2,797,201			3,191,309			6,282,908
Net Increase in Net Assets
Resulting from Operations	$	5,208,596		$	4,963,910		$	11,425,327

See accompanying notes

48

	Delaware Tax-Free			Delaware Tax-Free
	Idaho Fund			New York Fund
Investment Income:
Interest	$	2,655,253		$	814,825
Expenses:
Management fees		315,318			92,277
Distribution expenses – Class A		111,007			31,748
Distribution expenses – Class B		16,033			4,165
Distribution expenses – Class C		111,704			35,503
Dividend disbursing and transfer agent
fees and expenses		30,265			18,673
Accounting and administration expenses		22,891			6,699
Legal fees		10,304			3,264
Audit and tax		8,661			6,283
Reports and statements to shareholders		7,947			3,094
Pricing fees		4,380			4,468
Trustees’ fees		3,447			1,004
Registration fees		3,010			5,194
Insurance fees		1,650			426
Custodian fees		1,337			494
Consulting fees		644			168
Trustees’ expenses		257			71
Dues and services		203			55
		649,058			213,586
Less fees waived		(22,204	)		(49,598	)
Total operating expenses		626,854			163,988
Net Investment Income		2,028,399			650,837
Net Realized and Unrealized Gain
on Investments:
Net realized gain on investments		99,017			4,710
Net change in unrealized appreciation/
depreciation of investments		2,239,984			910,946
Net Realized and Unrealized Gain
on Investments		2,339,001			915,656
Net Increase in Net Assets
Resulting from Operations	$	4,367,400		$	1,566,493

See accompanying notes

49

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase in Net Assets from Operations:
Net investment income	$	2,411,395		$	4,979,083
Net realized gain on investments		853,830			676,245
Net change in unrealized
appreciation/depreciation of investments		1,943,371			283,443
Net increase in net assets resulting from operations		5,208,596			5,938,771
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,197,987	)		(4,473,743	)
Class B		(85,095	)		(247,800	)
Class C		(120,160	)		(235,244	)
		(2,403,242	)		(4,956,787	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		2,806,733			8,072,718
Class B		—			20,443
Class C		665,269			1,098,183
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,087,466			2,209,302
Class B		45,031			128,925
Class C		74,068			146,249
		4,678,567			11,675,820

50

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(11,453,562	)	$	(19,633,059	)
Class B		(1,993,380	)		(3,235,890	)
Class C		(593,873	)		(2,787,126	)
		(14,040,815	)		(25,656,075	)
Decrease in net assets derived from
capital share transactions		(9,362,248	)		(13,980,255	)
Net Decrease in Net Assets		(6,556,894	)		(12,998,271	)
Net Assets:
Beginning of period		127,454,947			140,453,218
End of period1	$	120,898,053		$	127,454,947
1Including undistributed net investment income	$	26,197		$	26,196

See accompanying notes

51

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,772,601		$	3,401,520
Net realized gain on investments		123,716			709,018
Net change in unrealized
appreciation/depreciation of investments		3,067,593			(2,723,629	)
Net increase in net assets resulting from operations		4,963,910			1,386,909
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,434,393	)		(2,701,738	)
Class B		(84,594	)		(195,352	)
Class C		(253,021	)		(487,982	)
		(1,772,008	)		(3,385,072	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		5,441,784			8,313,126
Class B		72,778			90,914
Class C		1,073,161			2,115,521
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		816,057			1,547,832
Class B		63,142			137,850
Class C		175,416			358,106
		7,642,338			12,563,349

52

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(5,113,300	)	$	(14,448,671	)
Class B		(1,322,228	)		(1,676,431	)
Class C		(1,806,384	)		(3,594,180	)
		(8,241,912	)		(19,719,282	)
Decrease in net assets derived from
capital share transactions		(599,574	)		(7,155,933	)
Net Increase (Decrease) in Net Assets		2,592,328			(9,154,096	)
Net Assets:
Beginning of period		79,599,898			88,753,994
End of period1	$	82,192,226		$	79,599,898
1Including undistributed net investment income	$	18,787		$	18,763

See accompanying notes

53

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,142,419		$	10,196,318
Net realized gain on investments		677,070			3,397,919
Net change in unrealized
appreciation/depreciation of investments		5,605,838			(4,848,204	)
Net increase in net assets resulting from operations		11,425,327			8,746,033
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,905,642	)		(9,697,369	)
Class B		(42,369	)		(116,434	)
Class C		(223,889	)		(355,221	)
		(5,171,900	)		(10,169,024	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		9,384,375			14,183,751
Class B		—			10,613
Class C		2,684,725			2,881,769
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		3,094,932			6,074,319
Class B		19,977			50,248
Class C		162,038			248,362
		15,346,047			23,449,062

54

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(12,231,987	)	$	(27,122,635	)
Class B		(756,040	)		(1,264,891	)
Class C		(822,583	)		(1,437,234	)
		(13,810,610	)		(29,824,760	)
Increase (decrease) in net assets derived from
capital share transactions		1,535,437			(6,375,698	)
Net Increase (Decrease) in Net Assets		7,788,864			(7,798,689	)
Net Assets:
Beginning of period		240,628,256			248,426,945
End of period1	$	248,417,120		$	240,628,256
1Including undistributed net investment income	$	6,252		$	43,501

See accompanying notes

55

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase in Net Assets from Operations:
Net investment income	$	2,028,399		$	3,502,126
Net realized gain on investments		99,017			242,232
Net change in unrealized
appreciation/depreciation of investments		2,239,984			2,073,940
Net increase in net assets resulting from operations		4,367,400			5,818,298
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,677,579	)		(2,944,277	)
Class B		(48,447	)		(136,217	)
Class C		(339,141	)		(403,213	)
		(2,065,167	)		(3,483,707	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		7,385,655			17,915,127
Class B		9,917			63,569
Class C		8,084,516			8,501,134
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,146,361			1,894,609
Class B		34,269			98,426
Class C		234,546			249,454
		16,895,264			28,722,319

56

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(3,775,749	)	$	(7,521,138	)
Class B		(457,355	)		(1,954,363	)
Class C		(1,610,323	)		(1,450,880	)
		(5,843,427	)		(10,926,381	)
Increase in net assets derived from
capital share transactions		11,051,837			17,795,938
Net Increase in Net Assets		13,354,070			20,130,529
Net Assets:
Beginning of period		108,980,435			88,849,906
End of period1	$	122,334,505		$	108,980,435
1Including undistributed (distributions in excess of)
net investment income	$	(11,301	)	$	5,851

See accompanying notes

57

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

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Increase in Net Assets from Operations:
Net investment income	$	650,837		$	900,508
Net realized gain on investments		4,710			190,585
Net change in unrealized
appreciation/depreciation of investments		910,946			482,416
Net increase in net assets resulting from operations		1,566,493			1,573,509
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(519,354	)		(738,485	)
Class B		(13,901	)		(39,735	)
Class C		(118,423	)		(116,762	)
		(651,678	)		(894,982	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		6,618,707			10,366,325
Class B		9,343			47,828
Class C		4,419,871			3,939,824
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		305,790			403,783
Class B		8,181			22,930
Class C		77,572			62,861
		11,439,464			14,843,551

58

	Six Months			Year
	Ended			Ended
	2/28/10			8/31/09
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(1,808,898	)	$	(3,831,875	)
Class B		(235,092	)		(593,493	)
Class C		(1,284,034	)		(585,220	)
		(3,328,024	)		(5,010,588	)
Increase in net assets derived from
capital share transactions		8,111,440			9,832,963
Net Increase in Net Assets		9,026,255			10,511,490
Net Assets:
Beginning of period		29,448,997			18,937,507
End of period1	$	38,475,252		$	29,448,997
1Including undistributed (distributions in excess of)
net investment income	$	(651	)	$	3,746

See accompanying notes

59

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

60

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.090		$10.930		$11.070		$11.350		$11.560		$11.410
	0.222		0.431		0.444		0.465		0.467		0.468
	0.249		0.158		(0.140	)	(0.280	)	(0.210	)	0.174
	0.471		0.589		0.304		0.185		0.257		0.642
	(0.221	)	(0.429	)	(0.444	)	(0.465	)	(0.467	)	(0.468	)
	—		—		—		—		—		(0.024	)
	(0.221	)	(0.429	)	(0.444	)	(0.465	)	(0.467	)	(0.492	)
	$11.340		$11.090		$10.930		$11.070		$11.350		$11.560
	4.27%		5.64%		2.78%		1.63%		2.31%		5.74%
	$108,626		$113,689		$122,027		$125,636		$131,468		$134,874
	0.81%		0.75%		0.75%		0.76%		0.76%		0.80%
	0.93%		0.91%		0.91%		0.91%		0.91%		0.91%
	3.96%		4.07%		4.02%		4.11%		4.12%		4.07%
	3.84%		3.91%		3.86%		3.96%		3.97%		3.96%
	15%		27%		29%		9%		8%		3%

61

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

62

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.100		$10.940		$11.070		$11.360		$11.570		$11.420
	0.180		0.352		0.361		0.380		0.382		0.382
	0.249		0.158		(0.130	)	(0.290	)	(0.210	)	0.174
	0.429		0.510		0.231		0.090		0.172		0.556
	(0.179	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)	(0.382	)
	—		—		—		—		—		(0.024	)
	(0.179	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)	(0.406	)
	$11.350		$11.100		$10.940		$11.070		$11.360		$11.570
	3.88%		4.85%		2.10%		0.78%		1.54%		4.95%
	$4,708		$6,509		$9,620		$12,407		$16,413		$19,005
	1.56%		1.50%		1.50%		1.51%		1.51%		1.55%
	1.68%		1.66%		1.66%		1.66%		1.66%		1.66%
	3.21%		3.32%		3.27%		3.36%		3.37%		3.32%
	3.09%		3.16%		3.11%		3.21%		3.22%		3.21%
	15%		27%		29%		9%		8%		3%

63

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

64

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.120		$10.960		$11.090		$11.380		$11.580		$11.430
	0.180		0.352		0.361		0.380		0.381		0.382
	0.249		0.158		(0.130	)	(0.290	)	(0.200	)	0.174
	0.429		0.510		0.231		0.090		0.181		0.556
	(0.179	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)	(0.382	)
	—		—		—		—		—		(0.024	)
	(0.179	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)	(0.406	)
	$11.370		$11.120		$10.960		$11.090		$11.380		$11.580
	3.88%		4.84%		2.09%		0.77%		1.63%		4.94%
	$7,564		$7,257		$8,806		$7,609		$8,117		$8,591
	1.56%		1.50%		1.50%		1.51%		1.51%		1.55%
	1.68%		1.66%		1.66%		1.66%		1.66%		1.66%
	3.21%		3.32%		3.27%		3.36%		3.37%		3.32%
	3.09%		3.16%		3.11%		3.21%		3.22%		3.21%
	15%		27%		29%		9%		8%		3%

65

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

66

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.620		$10.800		$11.010		$11.400		$11.490		$11.110
	0.248		0.448		0.449		0.454		0.450		0.462
	0.420		(0.182	)	(0.210	)	(0.390	)	(0.090	)	0.380
	0.668		0.266		0.239		0.064		0.360		0.842
	(0.248	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)	(0.462	)
	(0.248	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)	(0.462	)
	$11.040		$10.620		$10.800		$11.010		$11.400		$11.490
	6.32%		2.74%		2.21%		0.51%		3.24%		7.72%
	$64,723		$61,132		$67,174		$76,537		$75,995		$60,744
	0.82%		0.88%		0.88%		0.89%		0.88%		0.84%
	0.99%		0.97%		0.97%		0.97%		0.97%		1.06%
	4.55%		4.42%		4.11%		3.98%		3.97%		4.03%
	4.38%		4.33%		4.02%		3.90%		3.88%		3.81%
	21%		59%		34%		21%		14%		11%

67

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

68

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.670		$10.840		$11.060		$11.440		$11.530		$11.160
	0.208		0.373		0.367		0.368		0.365		0.377
	0.420		(0.172	)	(0.220	)	(0.380	)	(0.090	)	0.370
	0.628		0.201		0.147		(0.012	)	0.275		0.747
	(0.208	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)	(0.377	)
	(0.208	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)	(0.377	)
	$11.090		$10.670		$10.840		$11.060		$11.440		$11.530
	5.91%		2.07%		1.34%		(0.15%	)	2.46%		6.80%
	$3,943		$4,938		$6,589		$9,384		$14,918		$18,254
	1.57%		1.63%		1.63%		1.64%		1.63%		1.59%
	1.74%		1.72%		1.72%		1.72%		1.72%		1.81%
	3.80%		3.67%		3.36%		3.23%		3.22%		3.28%
	3.63%		3.58%		3.27%		3.15%		3.13%		3.06%
	21%		59%		34%		21%		14%		11%

69

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

70

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.640		$10.810		$11.030		$11.420		$11.500		$11.130
	0.207		0.373		0.367		0.368		0.365		0.377
	0.420		(0.172	)	(0.220	)	(0.390	)	(0.080	)	0.370
	0.627		0.201		0.147		(0.022	)	0.285		0.747
	(0.207	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)	(0.377	)
	(0.207	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)	(0.377	)
	$11.060		$10.640		$10.810		$11.030		$11.420		$11.500
	5.92%		2.07%		1.35%		(0.24%	)	2.56%		6.81%
	$13,526		$13,530		$14,991		$13,453		$12,768		$9,756
	1.57%		1.63%		1.63%		1.64%		1.63%		1.59%
	1.74%		1.72%		1.72%		1.72%		1.72%		1.81%
	3.80%		3.67%		3.36%		3.23%		3.22%		3.28%
	3.63%		3.58%		3.27%		3.15%		3.13%		3.06%
	21%		59%		34%		21%		14%		11%

71

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

72

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.600		$10.640		$10.730		$11.040		$11.200		$11.070
	0.220		0.452		0.448		0.464		0.488		0.495
	0.288		(0.041	)	(0.089	)	(0.310	)	(0.160	)	0.130
	0.508		0.411		0.359		0.154		0.328		0.625
	(0.228	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)	(0.495	)
	(0.228	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)	(0.495	)
	$10.880		$10.600		$10.640		$10.730		$11.040		$11.200
	4.82%		4.11%		3.38%		1.38%		3.03%		5.78%
	$232,517		$226,393		$234,630		$246,695		$258,773		$270,149
	0.91%		0.90%		0.93%		0.94%		0.93%		0.94%
	0.95%		0.95%		0.95%		0.96%		0.94%		0.94%
	4.22%		4.43%		4.16%		4.22%		4.43%		4.46%
	4.18%		4.38%		4.14%		4.20%		4.42%		4.46%
	9%		27%		15%		12%		8%		8%

73

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

74

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.610		$10.640		$10.730		$11.050		$11.200		$11.080
	0.181		0.375		0.367		0.382		0.405		0.412
	0.277		(0.031	)	(0.089	)	(0.320	)	(0.150	)	0.120
	0.458		0.344		0.278		0.062		0.255		0.532
	(0.188	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)	(0.412	)
	(0.188	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)	(0.412	)
	$10.880		$10.610		$10.640		$10.730		$11.050		$11.200
	4.33%		3.43%		2.60%		0.53%		2.35%		4.89%
	$2,023		$2,693		$3,961		$5,326		$8,221		$10,370
	1.66%		1.65%		1.68%		1.69%		1.68%		1.69%
	1.70%		1.70%		1.70%		1.71%		1.69%		1.69%
	3.47%		3.68%		3.41%		3.47%		3.68%		3.71%
	3.43%		3.63%		3.39%		3.45%		3.67%		3.71%
	9%		27%		15%		12%		8%		8%

75

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return during some 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

76

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.630		$10.660		$10.750		$11.070		$11.220		$11.090
	0.181		0.375		0.367		0.382		0.405		0.413
	0.277		(0.031	)	(0.089	)	(0.320	)	(0.150	)	0.130
	0.458		0.344		0.278		0.062		0.255		0.543
	(0.188	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)	(0.413	)
	(0.188	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)	(0.413	)
	$10.900		$10.630		$10.660		$10.750		$11.070		$11.220
	4.33%		3.43%		2.60%		0.53%		2.34%		4.99%
	$13,877		$11,542		$9,836		$10,152		$9,971		$9,170
	1.66%		1.65%		1.68%		1.69%		1.68%		1.69%
	1.70%		1.70%		1.70%		1.71%		1.69%		1.69%
	3.47%		3.68%		3.41%		3.47%		3.68%		3.71%
	3.43%		3.63%		3.39%		3.45%		3.67%		3.71%
	9%		27%		15%		12%		8%		8%

77

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

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

78

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.490		$11.260		$11.260		$11.450		$11.630		$11.490
	0.217		0.436		0.437		0.448		0.449		0.452
	0.240		0.228		—		(0.190	)	(0.180	)	0.140
	0.457		0.664		0.437		0.258		0.269		0.592
	(0.217	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)	(0.452	)
	(0.217	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)	(0.452	)
	$11.730		$11.490		$11.260		$11.260		$11.450		$11.630
	4.00%		6.12%		3.93%		2.27%		2.40%		5.25%
	$93,005		$86,445		$72,237		$69,931		$62,808		$60,554
	0.93%		0.88%		0.85%		0.86%		0.85%		0.87%
	0.97%		0.96%		0.96%		0.98%		0.98%		0.98%
	3.70%		3.94%		3.87%		3.92%		3.95%		3.92%
	3.66%		3.86%		3.76%		3.80%		3.82%		3.81%
	7%		10%		11%		8%		15%		27%

79

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

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

80

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.470		$11.240		$11.240		$11.430		$11.610		$11.480
	0.175		0.353		0.353		0.363		0.364		0.366
	0.239		0.228		—		(0.190	)	(0.180	)	0.130
	0.414		0.581		0.353		0.173		0.184		0.496
	(0.174	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)	(0.366	)
	(0.174	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)	(0.366	)
	$11.710		$11.470		$11.240		$11.240		$11.430		$11.610
	3.62%		5.34%		3.17%		1.51%		1.64%		4.39%
	$3,014		$3,359		$5,123		$6,003		$7,892		$10,911
	1.68%		1.63%		1.60%		1.61%		1.60%		1.62%
	1.72%		1.71%		1.71%		1.73%		1.73%		1.73%
	2.95%		3.19%		3.12%		3.17%		3.20%		3.17%
	2.91%		3.11%		3.01%		3.05%		3.07%		3.06%
	7%		10%		11%		8%		15%		27%

81

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

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

82

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$11.480		$11.250		$11.250		$11.440		$11.630		$11.490
	0.175		0.353		0.352		0.363		0.364		0.366
	0.239		0.228		—		(0.190	)	(0.190	)	0.140
	0.414		0.581		0.352		0.173		0.174		0.506
	(0.174	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)	(0.366	)
	(0.174	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)	(0.366	)
	$11.720		$11.480		$11.250		$11.250		$11.440		$11.630
	3.62%		5.34%		3.16%		1.51%		1.56%		4.47%
	$26,316		$19,176		$11,490		$11,535		$13,430		$15,678
	1.68%		1.63%		1.60%		1.61%		1.60%		1.62%
	1.72%		1.71%		1.71%		1.73%		1.73%		1.73%
	2.95%		3.19%		3.12%		3.17%		3.20%		3.17%
	2.91%		3.11%		3.01%		3.05%		3.07%		3.06%
	7%		10%		11%		8%		15%		27%

83

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

84

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.450		$10.300		$10.300		$10.550		$10.700		$10.470
	0.217		0.409		0.411		0.435		0.449		0.453
	0.300		0.148		—		(0.250	)	(0.150	)	0.230
	0.517		0.557		0.411		0.185		0.299		0.683
	(0.217	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)	(0.453	)
	(0.217	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)	(0.453	)
	$10.750		$10.450		$10.300		$10.300		$10.550		$10.700
	4.98%		5.65%		4.04%		1.75%		2.90%		6.65%
	$28,593		$22,780		$15,340		$14,817		$13,519		$13,153
	0.80%		0.85%		0.85%		0.79%		0.65%		0.66%
	1.10%		1.10%		1.09%		1.10%		1.09%		1.12%
	4.06%		4.10%		3.97%		4.13%		4.28%		4.29%
	3.76%		3.85%		3.73%		3.82%		3.84%		3.83%
	2%		36%		28%		14%		20%		13%

85

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

86

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.420		$10.270		$10.280		$10.530		$10.670		$10.450
	0.177		0.334		0.333		0.357		0.370		0.374
	0.300		0.148		(0.010	)	(0.250	)	(0.140	)	0.220
	0.477		0.482		0.323		0.107		0.230		0.594
	(0.177	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)	(0.374	)
	(0.177	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)	(0.374	)
	$10.720		$10.420		$10.270		$10.280		$10.530		$10.670
	4.60%		4.88%		3.17%		0.99%		2.23%		5.77%
	$830		$1,018		$1,549		$2,164		$2,858		$3,023
	1.55%		1.60%		1.60%		1.54%		1.40%		1.41%
	1.85%		1.85%		1.84%		1.85%		1.84%		1.87%
	3.31%		3.35%		3.22%		3.38%		3.53%		3.54%
	3.01%		3.10%		2.98%		3.07%		3.09%		3.08%
	2%		36%		28%		14%		20%		13%

87

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

2 Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value and does not reflect the impact of a sales charge. Total investment return 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

88

Six Months Ended			Year Ended
2/28/101			8/31/09		8/31/08		8/31/07		8/31/06		8/31/05
(Unaudited)
	$10.420		$10.270		$10.280		$10.530		$10.670		$10.450
	0.177		0.333		0.333		0.357		0.370		0.376
	0.300		0.148		(0.010	)	(0.250	)	(0.140	)	0.220
	0.477		0.481		0.323		0.107		0.230		0.596
	(0.177	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)	(0.376	)
	(0.177	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)	(0.376	)
	$10.720		$10.420		$10.270		$10.280		$10.530		$10.670
	4.60%		4.88%		3.17%		0.99%		2.23%		5.80%
	$9,052		$5,651		$2,049		$2,131		$2,068		$886
	1.55%		1.60%		1.60%		1.54%		1.40%		1.41%
	1.85%		1.85%		1.84%		1.85%		1.84%		1.87%
	3.31%		3.35%		3.22%		3.38%		3.53%		3.54%
	3.01%		3.10%		2.98%		3.07%		3.09%		3.08%
	2%		36%		28%		14%		20%		13%

89

Notes to financial statements
Delaware multiple state tax-free funds	Six Months Ended February 28, 2010 (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 only be purchased 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 personal income tax in their respective states, as is consistent with preservation of capital.

1. Significant Accounting Policies

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

Security Valuation — Debt securities are valued by an independent pricing service or broker. 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. 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” and 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.

90

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, 2006 – August 31, 2009), 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 reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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

The Funds 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 28, 2010.

On July 1, 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (Codification). The Codification became the single source of authoritative nongovernmental U.S. GAAP, superseding existing literature of the FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force and other sources. The Codification is effective for interim and annual periods ending after September 15, 2009. The Funds adopted the Codification for the six months ended February 28, 2010. There was no impact to financial statements as the Codification requirements are disclosure-only in nature.

91

Notes to financial statements
Delaware multiple state tax-free funds

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		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
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 voluntarily agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that total annual operating expenses, (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program 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 (collectively, nonroutine expenses)), do not exceed specified percentages of average daily net assets as shown below until such time as the waivers are discontinued. For purposes of these waivers and reimbursements, nonroutine expenses may also include such additional costs and expenses, as may be agreed upon from time to time by each Fund’s Board and DMC. These expense waivers and reimbursements apply only to expenses paid directly by the Funds.

	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
Effective September 11, 2009
and renewed January 1, 2010
operating expense limitation
as a percentage of
average daily net assets
(per annum)		—%		0.57%		—%		—%		0.55%
Through December 31, 2009,
operating expense limitation
as a percentage of
average daily net assets
(per annum)		0.50%		0.63%		0.64%		0.65%		0.60%
Expiration date		12/31/09		12/31/09		12/31/09		12/31/09		12/31/09

92

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to each Fund. 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 28, 2010, each Fund was charged for these services 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
$3,106	$2,020	$6,158	$2,867	$839

DSC also provides dividend disbursing and transfer agency services. Each Fund pays DSC a monthly fee based on the number of shareholder accounts for dividend disbursing and transfer agent services.

Pursuant to a distribution agreement and distribution plan, each Fund pays DDLP, the distributor and an affiliate of DMC, an annual distribution and service fee not to exceed 0.25% of the average daily net assets of the Class A shares and 1.00% of the average daily net assets of the Class B and C shares.

At February 28, 2010, each Fund had liabilities payable to affiliates 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
Investment management
fee payable to DMC		$46,305		$21,848		$104,795		$51,238		$  5,791
Dividend disbursing,
transfer agent, fund
accounting oversight
fees and other expenses
payable to DSC		4,154		3,149		8,487		3,804		2,097
Distribution fees
payable to DDLP		30,211		25,734		56,655		39,848		12,517
Other expenses payable to
DMC and affiliates*		4,729		3,153		9,579		4,627		1,367

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

93

Notes to financial statements
Delaware multiple 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 28, 2010, each Fund was charged for internal legal and tax services provided by DMC and/or its affiliates’ employees 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
$4,005	$2,617	$7,991	$3,747	$1,108

For the six months ended February 28, 2010, DDLP earned commissions on sales of Class A shares for each Fund 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
$4,906	$2,932	$13,520	$27,227	$18,569

For the six months ended February 28, 2010, DDLP received gross CDSC commissions on redemption 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		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
Class A	$	—	$	—	$	—	$	—	$	—
Class B		860		230		303		462		—
Class C		445		308		459		7,192		828

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 28, 2010, the Funds made purchases and sales of investment securities other than short-term investments 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
Purchases	$	8,990,919	$8,485,477	$	15,582,684	$	16,827,186	$7,591,797
Sales		17,881,010	9,960,648		11,352,945		3,794,625	339,868

94

At February 28, 2010, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2010, 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	$	115,735,553		$	81,772,727		$	242,364,999		$	115,511,902		$	36,683,112
Aggregate
unrealized
appreciation	$	5,072,610		$	3,193,249		$	11,315,281		$	5,689,613		$	2,166,170
Aggregate
unrealized
depreciation		(1,118,221	)		(3,263,987	)		(5,043,224	)		(411,627	)		(320,393	)
Net unrealized
appreciation
(depreciation)	$	3,954,389		$	(70,738	)	$	6,272,057		$	5,277,986		$	1,845,777

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-tier hierarchy of inputs is summarized below.

Level 1 – inputs are quoted prices in active markets

Level 2 – inputs are observable, directly or indirectly

Level 3 – inputs are unobservable and reflect assumptions on the part of the reporting entity

95

Notes to financial statements
Delaware multiple state tax-free funds

3. Investments (continued)

The following table summarizes the valuation of the Funds’ investments by fair value hierarchy levels as of February 28, 2010:

	Delaware Tax-Free Arizona Fund
	Level 2
Municipal Bonds	$119,689,942
	Delaware Tax-Free California Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	81,190,899	$	81,190,899
Short-Term		311,090		200,000		511,090
Total	$	311,090	$	81,390,899	$	81,701,989
	Delaware Tax-Free Colorado Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	246,100,406	$	246,100,406
Short-Term		2,536,650		—		2,536,650
Total	$	2,536,650	$	246,100,406	$	248,637,056
	Delaware Tax-Free Idaho Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	119,062,204	$	119,062,204
Short-Term		1,727,684		—		1,727,684
Total	$	1,727,684	$	119,062,204	$	120,789,888
	Delaware Tax-Free New York Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	36,928,889	$	36,928,889
Short-Term		—		1,600,000		1,600,000
Total	$	—	$	38,528,889	$	38,528,889

There were no Level 3 securities at the beginning or end of the period.

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented above. The new disclosures and clarifications of existing disclosures are generally effective for the Funds’ year ending August 31, 2011 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

96

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 28, 2010 and the year ended August 31, 2009 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 2/28/10*
Tax-exempt income	$	2,329,053		$	1,721,593		$	5,049,157	$	1,969,503		$	639,398
Ordinary income		74,189			50,415			122,743		95,664			12,280
Total	$	2,403,242		$	1,772,008		$	5,171,900	$	2,065,167		$	651,678
Year Ended 8/31/09
Tax-exempt income	$	4,956,787		$	3,385,072		$	10,156,494	$	3,483,707		$	894,982
Ordinary income		—			—			12,530		—			—
Total	$	4,956,787		$	3,385,072		$	10,169,024	$	3,483,707		$	894,982

*Tax information for the period ended February 28, 2010 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

97

Notes to financial statements
Delaware multiple 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 28, 2010, 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	$	117,512,086		$	82,343,166		$	246,563,644		$	117,058,432		$	36,641,785
Distributions
payable		(76,597	)		(59,199	)		(170,577	)		(81,767	)		(22,704	)
Undistributed
tax-exempt
income		102,794			77,986			176,829			70,466			22,053
Realized gains
9/1/09 –
2/28/10		853,852			217,477			677,120			99,011			3,270
Post-October
losses		—			(88,772	)		—			—			—
Capital loss
carryforwards as
of 8/31/09		(1,448,471	)		(227,694	)		(5,101,953	)		(89,623	)		(14,929	)
Unrealized
appreciation
(depreciation) of
investments		3,954,389			(70,738	)		6,272,057			5,277,986			1,845,777
Net assets	$	120,898,053		$	82,192,226		$	248,417,120		$	122,334,505		$	38,475,252

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

Post-October losses represent losses realized on investment transactions from November 1, 2009 through February 28, 2010 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following fiscal year.

98

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on certain debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2010, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end:

	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	$	(8,152	)	$	(569	)	$	(7,768	)	$	19,616		$	(3,556	)
Accumulated net realized
gain (loss)		8,152			569			7,768			(19,616	)		3,556

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, 2009 will expire as follows:

	Delaware		Delaware			Delaware			Delaware			Delaware
Year of	Tax-Free		Tax-Free			Tax-Free			Tax-Free			Tax-Free
Expiration	Arizona Fund		California Fund			Colorado Fund			Idaho Fund			New York Fund
2010	$	—		$	—		$	—		$	9,312		$	—
2011		—			6,039			—			—			—
2012		1,448,471			—			2,796,560			—			—
2013		—			—			57,695			—			—
2014		—			—			2,203,520			23,435			—
2015		—			—			—			56,876			—
2016		—			221,655			44,178			—			14,929
Total	$	1,448,471		$	227,694		$	5,101,953		$	89,623		$	14,929

For the six months ended February 28, 2010, the Funds had capital gains which may reduce capital loss carryforwards.

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
$853,852	$217,477	$677,120	$99,011	$3,270

99

Notes to financial statements
Delaware multiple 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
	2/28/10		8/31/09		2/28/10		8/31/09		2/28/10		8/31/09
Shares sold:
Class A	238,804		756,808		490,841		825,013		852,300		1,387,638
Class B	—		1,968		6,562		9,030		—		1,049
Class C	55,074		102,547		91,322		208,816		243,575		281,038
Shares issued upon reinvestment of dividends and distributions:
Class A	105,105		207,965		79,230		152,565		295,109		595,084
Class B	4,646		12,138		5,784		13,524		1,884		4,925
Class C	10,074		13,735		22,204		35,227		18,459		24,239
	413,703		1,095,161		695,943		1,244,175		1,411,327		2,293,973
Shares repurchased:
Class A	(1,014,731	)	(1,879,717	)	(465,208	)	(1,444,076	)	(1,128,914	)	(2,677,810	)
Class B	(176,171	)	(307,293	)	(119,828	)	(167,397	)	(69,963	)	(124,079	)
Class C	(52,384	)	(267,390	)	(162,564	)	(358,482	)	(75,544	)	(141,654	)
	(1,243,286	)	(2,454,400	)	(747,600	)	(1,969,955	)	(1,274,421	)	(2,943,543	)
Net increase
(decrease)	(829,583	)	(1,359,239	)	(51,657	)	(725,780	)	136,906		(649,570	)

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
	Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended
	2/28/10		8/31/09		2/28/10		8/31/09
Shares sold:
Class A	622,761		1,615,020		617,416		1,035,723
Class B	727		5,765		880		4,787
Class C	691,613		758,087		408,631		396,933
Shares issued upon reinvestment of dividends and distributions:
Class A	107,707		171,510		32,700		40,258
Class B	3,065		8,957		768		2,303
Class C	22,010		22,570		14,843		6,249
	1,447,883		2,581,909		1,075,238		1,486,253
Shares repurchased:
Class A	(324,505	)	(679,777	)	(169,691	)	(385,163	)
Class B	(39,213	)	(177,717	)	(21,974	)	(60,185	)
Class C	(138,424	)	(131,937	)	(121,254	)	(60,407	)
	(502,142	)	(989,431	)	(312,919	)	(505,755	)
Net increase	945,741		1,592,478		762,319		980,498

100

For the six months ended February 28, 2010 and the year ended August 31, 2009, 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 above and the statements of changes in net assets.

	Six Months Ended				Year Ended
	2/28/10				8/31/09
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Arizona Fund	108,371	108,467	$	1,231,308	126,754	126,825	$	1,338,820
Delaware Tax-Free
California Fund	58,900	59,124		649,036	92,283	92,659		913,283
Delaware Tax-Free
Colorado Fund	29,504	29,506		319,777	28,997	29,016		288,928
Delaware Tax-Free
Idaho Fund	20,438	20,403		238,806	58,929	58,820		644,988
Delaware Tax-Free
New York Fund	21,600	21,539		231,114	33,488	33,413		327,019

7. Line of Credit

The Funds, along with certain other funds in the Delaware Investments® Family of Funds (Participants), participate in a $35,000,000 revolving line of credit with The Bank of New York Mellon (BNY Mellon) 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 are charged an annual commitment fee, which is allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants may borrow up to a maximum of one third of their net assets under the agreement. The agreement expires on November 16, 2010. The Funds had no amounts outstanding as of February 28, 2010 or at any time during the period then ended.

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, 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

101

Notes to financial statements
Delaware multiple state tax-free funds

8. Credit and Market Risk (continued)

impact on the value of insured bonds held in the Funds. At February 28, 2010, 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
40%	20%	23%	31%	11%

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 assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. As of February 28, 2010, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

102

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. Sale of Delaware Investments to Macquarie Group

On August 18, 2009, Lincoln National Corporation (parent company of Delaware Investments) and Macquarie Group (Macquarie) entered into an agreement pursuant to which Delaware Investments, including DMC, DDLP and DSC, would be acquired by Macquarie, an Australia-based global provider of banking, financial, advisory, investment and funds management services (Transaction). The Transaction was completed on January 4, 2010. DMC, DDLP, and DSC are now wholly owned subsidiaries of Macquarie.

The Transaction resulted in a change of control of DMC which, in turn, caused the termination of the investment management agreement between DMC and the Funds. On January 4, 2010, the new investment management agreement between DMC and the Funds that was approved by the shareholders became effective.

11. Subsequent Events

Management has evaluated whether any events or transactions occurred subsequent to February 28, 2010 through April 15, 2010, the date of issuance of the Funds’ financial statements, and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.

103

Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Proxy Results

At Joint Special Meetings of Shareholders of Voyageur Insured Funds, on behalf of Delaware Tax-Free Arizona Fund; Voyageur Mutual Funds, on behalf of Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund; and Voyageur Mutual Funds II, on behalf of Delaware Tax-Free Colorado Fund (Voyageur Insured Funds, Voyageur Mutual Fund, and Voyageur Mutual Funds II hereinafter each, a “Trust” and collectively, the “Trusts” and 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 hereinafter each, a “Fund” and collectively, the “Funds”) held on November 12, 2009 and reconvened on December 17, 2009 for Delaware Tax-Free California Fund, December 4, 2009 for Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund only and March 16, 2010, the shareholders of each Fund voted to (i) elect a Board of Trustees for each Trust; and to (ii) approve new investment advisory agreements between each Trust, on behalf of the respective Fund(s), and Delaware Management Company, respectively. At the meeting, the following people were elected to serve as Independent Trustees: Thomas L. Bennett, John A. Fry, Anthony D. Knerr, Lucinda S. Landreth, Ann R. Leven, Thomas F. Madison, Janet L. Yeomans, and J. Richard Zecher. In addition, Patrick P. Coyne was elected to serve as an Interested Trustee.

The following proposals were submitted for a vote of the shareholders:

1. To elect a Board of Trustees for each Trust.

Voyageur Insured Funds

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	7,510,444.878	65.587	94.052	474,979.649	4.148	5.948
Patrick P. Coyne	7,510,706.365	65.589	94.055	474,718.162	4.146	5.945
John A. Fry	7,512,009.667	65.600	94.072	473,414.860	4.135	5.928
Anthony D. Knerr	7,512,519.072	65.605	94.078	472,905.455	4.130	5.922
Lucinda S. Landreth	7,506,669.072	65.554	94.005	478,755.455	4.181	5.995
Ann R. Leven	7,506,669.072	65.554	94.005	478,755.455	4.181	5.995
Thomas F. Madison	7,510,196.960	65.585	94.049	475,227.567	4.150	5.951
Janet L. Yeomans	7,506,669.072	65.554	94.005	478,755.455	4.181	5.995
J. Richard Zecher	7,512,009.667	65.600	94.072	473,414.860	4.135	5.928

104

Voyageur Mutual Funds

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	27,534,201.174	64.687	94.418	1,627,955.392	3.825	5.582
Patrick P. Coyne	27,538,840.631	64.698	94.433	1,623,315.935	3.814	5.567
John A. Fry	27,541,310.882	64.704	94.442	1,620,845.684	3.808	5.558
Anthony D. Knerr	27,543,108.286	64.708	94.448	1,619,048.280	3.804	5.552
Lucinda S. Landreth	27,542,973.819	64.708	94.448	1,619,182.747	3.804	5.552
Ann R. Leven	27,540,505.439	64.702	94.439	1,621,651.127	3.810	5.561
Thomas F. Madison	27,534,959.779	64.689	94.420	1,627,196.787	3.823	5.580
Janet L. Yeomans	27,539,087.174	64.698	94.434	1,623,069.392	3.814	5.566
J. Richard Zecher	27,532,297.843	64.683	94.411	1,629,858.723	3.829	5.589

Voyageur Mutual Funds II

		% of	% of		% of	% of
		outstanding	shares		outstanding	shares
	Shares voted for	shares	voted	Shares withheld	shares	voted
Thomas L. Bennett	14,479,703.149	63.926	97.135	427,065.079	1.885	2.865
Patrick P. Coyne	14,469,317.651	63.880	97.065	437,450.577	1.931	2.935
John A. Fry	14,488,749.660	63.966	97.196	418,018.568	1.845	2.804
Anthony D. Knerr	14,482,486.274	63.938	97.154	424,281.954	1.873	2.846
Lucinda S. Landreth	14,488,816.962	63.966	97.196	417,951.266	1.845	2.804
Ann R. Leven	14,478,371.695	63.920	97.126	428,396.533	1.891	2.874
Thomas F. Madison	14,378,358.428	63.478	96.455	528,409.800	2.333	3.545
Janet L. Yeomans	14,486,139.464	63.954	97.178	420,628.764	1.857	2.822
J. Richard Zecher	14,486,180.936	63.954	97.179	420,587.292	1.857	2.821

2. To approve a new investment advisory agreement between each Trust, on behalf of the respective Fund(s), and Delaware Management Company.

Delaware Tax-Free Arizona Fund
Shares Voted For	5,503,268.604
Percentage of Outstanding Shares	48.059%
Percentage of Shares Voted	68.305%
Shares Voted Against	318,946.724
Percentage of Outstanding Shares	2.785%
Percentage of Shares Voted	3.958%
Shares Abstained	303,633.649
Percentage of Outstanding Shares	2.651%
Percentage of Shares Voted	3.769%
Broker Non-Votes	1,931,085.658

105

Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Proxy Results (continued)

Delaware Tax-Free California Fund
Shares Voted For	3,161,738.551
Percentage of Outstanding Shares	42.260%
Percentage of Shares Voted	67.222%
Shares Voted Against	113,090.044
Percentage of Outstanding Shares	1.512%
Percentage of Shares Voted	2.404%
Shares Abstained	269,836.501
Percentage of Outstanding Shares	3.606%
Percentage of Shares Voted	5.737%
Broker Non-Votes	1,158,761.563
Delaware Tax-Free Colorado Fund
Shares Voted For	10,641,098.445
Percentage of Outstanding Shares	46.979%
Percentage of Shares Voted	70.809%
Shares Voted Against	394,714.534
Percentage of Outstanding Shares	1.742%
Percentage of Shares Voted	2.627%
Shares Abstained	468,241.663
Percentage of Outstanding Shares	2.068%
Percentage of Shares Voted	3.115%
Broker Non-Votes	3,523,768.881
Delaware Tax-Free Idaho Fund
Shares Voted For	4,722,925.538
Percentage of Outstanding Shares	50.058%
Percentage of Shares Voted	67.836%
Shares Voted Against	490,745.060
Percentage of Outstanding Shares	5.202%
Percentage of Shares Voted	7.049%
Shares Abstained	198,509.218
Percentage of Outstanding Shares	2.104%
Percentage of Shares Voted	2.851%
Broker Non-Votes	1,550,081.012
Delaware Tax-Free New York Fund
Shares Voted For	1,323,953.644
Percentage of Outstanding Shares	45.593%
Percentage of Shares Voted	67.540%
Shares Voted Against	18,938.743
Percentage of Outstanding Shares	0.652%
Percentage of Shares Voted	0.966%
Shares Abstained	60,164.796
Percentage of Outstanding Shares	2.072%
Percentage of Shares Voted	3.069%
Broker Non-Votes	557,205.446

106

Board Consideration of New Investment Advisory Agreement

At a meeting held on September 3, 2009 (the “Meeting”), the Board of Trustees of the Delaware Investments® Family of Funds (the “Board”), including the independent Trustees, unanimously approved a new investment advisory agreement between each registrant on behalf of each series (each, a “Fund” and together, the “Funds”) and Delaware Management Company (“DMC”) in connection with the sale of Delaware Investments’ advisory business to Macquarie Bank Limited (the “Macquarie Group”) (the “Transaction”). In making its decision, the Board considered information furnished specifically in connection with the approval of the new investment advisory agreements with DMC (the “New Investment Advisory Agreements”), which included extensive materials about the Transaction and matters related to the proposed approvals. To assist the Board in considering the New Investment Advisory Agreements, Macquarie Group provided materials and information about Macquarie Group, including detailed written responses to the questions posed by the independent Trustees. DMC also provided materials and information about the Transaction, including detailed written responses to the questions posed by the independent Trustees.

At the Meeting, the Trustees discussed the Transaction with DMC management and with key Macquarie Group representatives. The Meeting included discussions of the strategic rationale for the Transaction and Macquarie Group’s general plans and intentions regarding the Funds and DMC. The Board members also inquired about the plans for, and anticipated roles and responsibilities of, key employees and officers of Delaware Management Holdings Inc. and DMC in connection with the Transaction.

In connection with the Trustees’ review of the New Investment Advisory Agreements for the Funds, DMC and/or Macquarie Group emphasized that:

• They expected that there would be no adverse changes as a result of the Transaction, in the nature, quality, or extent of services currently provided to the Funds and their shareholders, including investment management, distribution, or other shareholder services.
   
• No material changes in personnel or operations were contemplated in the operation of DMC under Macquarie Group as a result of the Transaction and no material changes were currently contemplated in connection with third party service providers to the Funds.
   
• Macquarie Group had no intention to cause DMC to alter the voluntary expense waivers and reimbursements currently in effect for the Funds.
   
• Under the agreement between Macquarie Group and Lincoln National Corporation (“LNC”) (the “Transaction Agreement”), Macquarie Group has agreed to conduct, and to cause its affiliates to conduct, their respective businesses in compliance with the conditions of Section 15(f) of the Investment Company Act of 1940 (the “1940 Act”) with respect to the Funds, to the extent within its control, including maintaining Board composition of at least 75% of the Board members qualifying as independent Trustees and not imposing any “unfair burden” on the Funds for at least two years from the closing of the Transaction (the “Closing”).

107

Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Board Consideration of New Investment Advisory Agreement (continued)

In addition to the information provided by DMC and Macquarie Group as described above, the Trustees also considered all other factors they believed to be relevant to evaluating the New Investment Advisory Agreements, including the specific matters discussed below. In their deliberations, the Trustees did not identify any particular information that was controlling, and different Trustees may have attributed different weights to the various factors. However, for each Fund, the Trustees determined that the overall arrangements between the Fund and DMC, as provided in the respective New Investment Advisory Agreement, including the proposed advisory fee and the related administration arrangements between the Fund and DMC, were fair and reasonable in light of the services to be performed, expenses incurred, and such other matters as the Trustees considered relevant. Factors evaluated included:

• The potential for expanding distribution of Fund shares through access to Macquarie Group’s existing distribution channels;
   
• Delaware Investments’ acquisition of an exclusive wholesaling sales force from a subsidiary of LNC;
   
• The reputation, financial strength, and resources of Macquarie Group as well as its historic and ongoing commitment to the asset management business in Australia as well as other parts of the world;
   
• The terms and conditions of the New Investment Advisory Agreements, including that each Fund’s total contractual fee rate under the New Investment Advisory Agreement will remain the same;
   
• The Board’s full annual review (or initial approval) of the current investment advisory agreements at their in-person meeting in May 2009 as required by the 1940 Act and its determination that (i) DMC had the capabilities, resources, and personnel necessary to provide the satisfactory advisory and administrative services currently provided to each Fund and (ii) the advisory and/or management fees paid by each Fund, taking into account any applicable fee waivers and breakpoints, represented reasonable compensation to DMC in light of the services provided, the costs to DMC of providing those services, economies of scale, and the fees and other expenses paid by similar funds and such other matters that the Board considered relevant in the exercise of its reasonable judgment;
   
• The portfolio management teams for the Funds are not currently expected to change as a result of the Transaction;
   
• LNC and Macquarie Group were expected to execute a reimbursement agreement pursuant to which LNC and Macquarie Group would agree to pay (or reimburse) all reasonable out-of-pocket costs and expenses of the Funds in connection with the Board’s consideration of the Transaction, the New Investment Advisory Agreements and related agreements, and all costs related to the proxy solicitation (the “Expense Agreement”);

108

• The likelihood that Macquarie Group would invest additional amounts in Delaware Investments, including DMC, which could result in increased assets under management, which in turn would allow some Funds the potential opportunity to achieve economies of scale and lower fees payable by Fund shareholders; and
   
• The compliance and regulatory history of Macquarie Group and its affiliates.

In making their decision relating to the approval of each Fund’s New Investment Advisory Agreement, the independent Trustees gave attention to all information furnished. The following discussion, however, identifies the primary factors taken into account by the Trustees and the conclusions reached in approving the New Investment Advisory Agreements.

Nature, Extent, and Quality of Service. The Trustees considered the services historically provided by DMC to the Funds and their shareholders. In reviewing the nature, extent, and quality of services, the Board considered that the New Investment Advisory Agreements would be substantially similar to the current investment advisory agreements between the Funds and DMC (the “Current Investment Advisory Agreements”), and therefore, considered the many reports furnished to them throughout 2008 and 2009 at regular Board meetings covering matters such as the relative performance of the Funds; compliance of portfolio managers with the investment policies, strategies, and restrictions for the Funds; the compliance of management personnel with the code of ethics adopted throughout the Delaware Investments® Family of Funds complex; and the adherence to fair value pricing procedures as established by the Board. The Trustees were pleased with the current staffing of DMC and the emphasis placed on research and risk management in the investment process. Favorable consideration was given to DMC’s efforts to maintain expenditures and, in some instances, increase financial and human resources committed to Fund matters.

The Board also considered the transfer agent and shareholder services that would continue to be provided to Fund shareholders by DMC’s affiliate, Delaware Service Company, Inc. (“DSC”). The Trustees noted, in particular, DSC’s commitment to maintain a high level of service as well as DMC’s expenditures to improve the delivery of shareholder services. The Board was assured that shareholders would continue to receive the benefits provided to Fund shareholders by being part of the Delaware Investments Family of Funds, including each shareholder’s ability to exchange an investment in one Delaware Investments Fund for the same class of shares in another Delaware Investments Fund without a sales charge, to reinvest Fund dividends into additional shares of any of the Funds, and the privilege to combine holdings in other Funds to obtain a reduced sales charge.

Based on the information provided by DMC and Macquarie Group, including that Macquarie Group and DMC currently expected no material changes as a result of the Transaction in (i) personnel or operations of DMC or (ii) third party service providers to the Funds, the Board concluded that the satisfactory nature, extent, and quality of services currently provided to the Funds and their shareholders were very likely to continue under the New Investment Advisory

109

Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Board Consideration of New Investment Advisory Agreement (continued)

Agreements. Moreover, the Board concluded that the Funds would probably benefit from the expanded distribution resources that would become available to Delaware Investments following the Transaction. The Board also concluded that it was very unlikely that any “unfair burden” would be imposed on any of the Funds for the first two years following the Closing as a result of the Transaction. Consequently, the Board concluded that it did not expect the Transaction to result in any adverse changes in the nature, quality, or extent of services (including investment management, distribution or other shareholder services) currently provided to the Funds and their shareholders.

Investment Performance. The Board considered the overall investment performance of DMC and the Funds. The Trustees placed significant emphasis on the investment performance of the Funds in view of its importance to shareholders. Although the Trustees gave appropriate consideration to performance reports and discussions with portfolio managers at Board meetings throughout the year, the Trustees gave particular weight to their review of investment performance in connection with the approval of the Current Investment Advisory Agreements at the Board meeting held in May 2009. At that meeting, the Trustees reviewed reports prepared by Lipper, Inc., an independent statistical compilation organization (“Lipper”), which showed each Fund’s investment performance as of December 31, 2008 in comparison to a group of funds selected by Lipper as being similar to the Fund (the “Performance Universe”). During the May 2009 agreement review process, the Trustees observed the significant improvements to relative investment performance of the Funds compared to the Funds’ performance as of December 31, 2007.

At their meeting on September 3, 2009, the Trustees, including the independent Trustees in consultation with their independent counsel, reviewed the investment performance of each Fund. The Trustees compared the performance of each Fund relative to that of its respective Performance Universe for the 1-, 3-, 5-, and 10-year periods ended June 30, 2009 and compared its relative investment performance against the corresponding relative investment performance of each Fund for such time periods ended December 31, 2008, to the extent applicable. As of June 30, 2009, 30 of the Funds had investment performance relative to that of the respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for all applicable time periods. At June 30, 2009, an additional 6 Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative investment performance at December 31, 2008 for a majority of the applicable time periods. At June 30, 2009, 15 additional Funds had investment performance relative to that of their respective Performance Universe that was better than the corresponding relative performance at December 31, 2008 and only 29 Funds had poorer relative investment performance at June 30, 2009 compared to that at December 31, 2008.

The Board therefore concluded that the investment performance of the Funds, on an aggregate basis, had continued to improve relative to their respective Performance Universe since the data reviewed at the May 2009 meeting. Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreement would likely have an adverse effect on the investment performance of any Fund because (i) DMC

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and Macquarie Group did not currently expect the Transaction to cause any material change to the Funds’ portfolio management teams responsible for investment performance, which the Board found to be satisfactory and improving; and (ii) as discussed in more detail below, the Funds’ expenses were not expected to increase as a result of the Transaction.

Comparative Expenses. The Trustees also considered expense comparison data for the Funds previously provided in May 2009. At that meeting, DMC had provided the Board with information on pricing levels and fee structures for the Funds and comparative funds. The Trustees focused on the comparative analysis of the effective management fees and total expense ratios of each Fund versus the effective management fees and expense ratios of a group of funds selected by Lipper as being similar to each Fund (the “Expense Group”). In reviewing comparative costs, each Fund’s contractual management fee and the actual management fee incurred by the Fund were compared with the contractual management fees (assuming all funds in the Expense Group were similar in size to the Fund) and actual management fees (as reported by each fund) of other funds within the Expense Group, taking into account any applicable breakpoints and fee limitations. Each Fund’s total expenses were also compared with those of its Expense Group. The Trustees also considered fees paid to Delaware Investments for nonmanagement services. At the September 3, 2009 meeting, DMC advised the Board that the more recent comparative expenses for the Funds remained consistent with the previous review in May 2009 and, consequently, the Trustees concluded that expenses of the Funds were satisfactory.

The Board also considered the Expense Agreement under negotiation in evaluating Fund expenses. The Trustees expected that the Expense Agreement would provide that LNC and Macquarie Group would pay or reimburse the Trusts for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the consideration of the New Investment Advisory Agreements (subject to certain limited exceptions).

Based on information provided by DMC and Macquarie Group, the Board concluded that neither the Transaction nor the New Investment Advisory Agreements likely would have an adverse effect on the Funds’ expenses because (i) each Fund’s contractual fee rates under the New Investment Advisory Agreement would remain the same; (ii) under the Expense Agreement, the Funds would be reimbursed for all reasonable out-of-pocket costs and expenses in connection with the Transaction and the related proxy solicitation (subject to certain limited exceptions); and (iii) the expense ratios of certain Funds might decline as a result of the possible increased investment in Delaware Investments by Macquarie Group, as discussed below under “Economies of Scale.”

Management Profitability. At their meeting on September 3, 2009, the Board evaluated DMC’s profitability in connection with the operation of the Funds. The Board had previously considered DMC’s profitability in connection with the operation of the Funds at its May 2009 meeting. At that meeting, the Board reviewed an analysis that addressed the overall profitability of Delaware Investments’ business in providing management and other services to each of the Funds and the Delaware Investments® Family of Funds as a whole. Specific attention was given to the methodology followed in allocating costs for the purpose of determining profitability.

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Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Board Consideration of New Investment Advisory Agreement (continued)

At the May 2009 meeting, representatives of DMC had stated that the level of profits of DMC, to a certain extent, reflect operational cost savings and efficiencies initiated by Delaware Investments (including DMC and its affiliates that provide services to the Funds). The Board considered Delaware Investments’ efforts to improve services provided to Fund shareholders and to meet additional regulatory and compliance requirements resulting from recent industry-wide U.S. Securities and Exchange Commission initiatives. At that meeting, the Board found that the management fees were reasonable in light of the services rendered and the level of profitability of DMC. At the September 3, 2009 meeting, DMC advised the Board that DMC did not expect the Transaction to affect materially the profitability of Delaware Investments compared to the level of profitability considered during the May 2009 review. Moreover, the Trustees reviewed pro forma balance sheets of certain key companies in Delaware Investments as of June 30, 2009 (which were provided by Macquarie Group and DMC in response to the Trustees’ requests) and evaluated the projections of Delaware Investments’ capitalization following the Transaction for purposes of evaluating the financial ability of Delaware Investments to continue to provide the nature, extent, and quality of services as it had under the Current Investment Advisory Agreement.

Based on information provided by DMC and Macquarie Group, the Board concluded that DMC and Delaware Investments would be sufficiently capitalized following the Transaction to continue the same level and quality of services to the Funds under the New Investment Advisory Agreements as was the case under the Current Investment Advisory Agreements. The Board also concluded that Macquarie Group had sufficient financial strength and resources, as well as an ongoing commitment to a global asset management business, to continue investing in Delaware Investments, including DMC, to the extent that Macquarie Group determined it was appropriate. Finally, because services and costs were expected to be substantially the same (and DMC had represented that, correspondingly, profitability would be about the same), under the New Investment Advisory Agreements as under the Current Investment Advisory Agreements, the Trustees concluded that the profitability of Delaware Investments would not result in an inequitable charge on the Funds or their shareholders. Accordingly, the Board concluded that the fees charged under the New Investment Advisory Agreements would be reasonable in light of the services to be provided and the expected profitability of DMC.

Economies of Scale. The Trustees considered whether economies of scale would be realized by Delaware Investments as each Fund’s assets increase and the extent to which any economies of scale would be reflected in the management fees charged. The Trustees took into account DMC’s practice of maintaining the competitive nature of management fees based on its analysis of fees charged by comparable funds. DMC management believed, and the Board agreed, that the Funds were priced with breakpoints and relatively low management fees to reflect potential economies of scale to Fund shareholders.

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The Board also acknowledged Macquarie Group’s statement that the Transaction would not by itself immediately provide additional economies of scale given Macquarie Group’s limited presence in the U.S. mutual fund market. Nonetheless, the Trustees concluded that additional economies of scale could potentially be achieved in the future if DMC were owned by Macquarie Group as a result of Macquarie Group’s willingness to invest further in Delaware Investments if appropriate opportunities arise. The Board further concluded that potential economies of scale could be achieved as a result of Delaware Investments’ expanded distribution capabilities arising from the Transaction, as well as opportunities that might arise from Macquarie Group’s global asset management business.

Fall-Out Benefits. The Board acknowledged that DMC would continue to benefit from soft dollar arrangements using portfolio brokerage of each Fund that invests in equity securities and that DMC’s profitability would likely be somewhat lower without the benefit of practices with respect to allocating Fund portfolio brokerage for brokerage and research services. The Board also considered that Macquarie Group and Delaware Investments may derive reputational, strategic, and other benefits from their association with the Delaware Investments® Family of Funds, including service relationships with DMC, DSC, and Delaware Distributors, L.P., and evaluated the extent to which Delaware Investments might derive ancillary benefits from Fund operations, including the potential for procuring additional business as a result of the prestige and visibility associated with its role as service provider to the Delaware Investments Family of Funds and the benefits from allocation of Fund brokerage to improve trading efficiencies. However, the Board concluded that (i) any such benefits under the New Investment Advisory Agreements would not be dissimilar from those existing under the Current Investment Advisory Agreements; (ii) such benefits did not impose a cost or burden on the Funds or their shareholders; and (iii) such benefits would probably have an indirectly beneficial effect on the Funds and their shareholders because of the added importance that DMC and Macquarie Group might attach to the Funds as a result of the fall-out benefits that the Funds conveyed.

Board Review of Macquarie Group.The Trustees reviewed detailed information supplied by Macquarie Group about its operations as well as other information regarding Macquarie Group provided by independent legal counsel to the independent Trustees. Based on this review, the Trustees concluded that Delaware Investments would continue to have the financial ability to maintain the high quality of services required by the Funds. The Trustees noted that there would be a limited transition period during which some services previously provided by LNC to Delaware Investments would continue to be provided by LNC after the Closing, and concluded that this arrangement would help minimize disruption in Delaware Investments’ provision of services to the Funds following the Transaction.

113

Other Fund information
(Unaudited)
Delaware multiple state tax-free funds

Board Consideration of New Investment Advisory Agreement (continued)

The Board considered Macquarie Group’s support for Delaware Investments’ plans for Fund distribution by transferring wholesalers from Lincoln Financial Distributors, Inc., LNC’s retail distributor, to Delaware Investments, and Macquarie Group’s current intention to leave the Funds’ other service providers in place. The Board also considered Macquarie Group’s current strategic plans to increase its asset management activities, one of its core businesses, particularly in North America, and its statement that its acquisition of DMC is an important component of this strategic growth and the establishment of a significant presence in the United States. Based in part on the information provided by DMC and Macquarie Group, the Board concluded that Macquarie Group’s acquisition of Delaware Investments could potentially enhance the nature, quality, and extent of services provided to the Funds and their shareholders.

Conclusion. The Board concluded that the advisory fee rate under each New Investment Advisory Agreement was reasonable in relation to the services provided and that execution of the New Investment Advisory Agreement would be in the best interests of the shareholders. For each Fund, the Trustees noted that they had concluded in their most recent advisory agreement continuance considerations in May 2009 that the management fees and total expense ratios were at acceptable levels in light of the quality of services provided to the Funds and in comparison to those of the Funds’ respective peer groups; that the advisory fee schedule would not be increased and would stay the same for all of the Funds; that the total expense ratio had not changed materially since that determination; and that DMC had represented that the overall expenses for each Fund were not expected to be adversely affected by the Transaction. The Trustees also noted, with respect to the Funds that currently had the benefit of voluntary fee limitations, that Macquarie Group had no present intention to cause DMC to alter any voluntary expense limitations or reimbursements currently in effect. On that basis, the Trustees concluded that the total expense ratios and proposed advisory fees for the Funds anticipated to result from the Transaction were acceptable. In approving each New Investment Advisory Agreement, the Board stated that it anticipated reviewing the continuance of the New Investment Advisory Agreement in advance of the expiration of the initial two-year period.

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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 Franklin & Marshall College Lancaster, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY Thomas F. Madison President and Chief Executive Officer MLM Partners, Inc. Minneapolis, MN	Janet L. Yeomans Vice President and Treasurer 3M Corporation St. Paul, MN J. Richard Zecher Founder Investor Analytics Scottsdale, AZ
Affiliated officers
David F. Connor Vice President, Deputy General Counsel, and Secretary Delaware Investments Family of Funds Philadelphia, PA	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 a current 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 and the Delaware Investments Fund profile for the most recently completed calendar quarter. These documents are available at www.delawareinvestments.com.

The prospectus sets forth details about charges, expenses, investment objectives, and operating policies of the investment company. You should read the prospectus carefully before you invest. The figures in this report represent past results that are not a guarantee of future results. The return and principal value of an investment in the investment company will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

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 Web site 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 each Fund’s Web site 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 each Fund’s Web site at www.delawareinvestments.com; and (ii) on the SEC’s Web site at www.sec.gov.

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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 MUTUAL FUNDS

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 5, 2010

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

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 5, 2010

RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	May 5, 2010

EX-99.CERT

EXHIBIT 99.CERT

CERTIFICATION

I, Patrick P. Coyne certify that:

1.	I have reviewed this report on Form N-CSR of Voyageur Mutual Funds;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2010

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer

CERTIFICATION

I, Richard Salus, certify that:

1.	I have reviewed this report on Form N-CSR of Voyageur Mutual Funds;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2010 

RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer

EX-99.906 CERT

EXHIBIT 99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the attached report of the registrant on Form N-CSR to be filed with the Securities and Exchange Commission (the “Report”), each of the undersigned officers of the registrant does hereby certify, to the best of such officer’s knowledge, that:

1.	The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented in the Report.

Date: May 5, 2010

PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer

RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the registrant and will be retained by the registrant and furnished to the SEC or its staff upon request.