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:	August 31, 2010

Item 1. Reports to Stockholders

Annual report

Delaware Tax-Free Minnesota Fund

Delaware Tax-Free Minnesota Intermediate Fund

Delaware Minnesota High-Yield Municipal Bond Fund

August 31, 2010

Fixed income mutual funds

This annual 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 annual 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 Funds 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 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 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 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

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

Investments in Delaware Tax-Free 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 their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Portfolio management review	1
Performance summaries	6
Disclosure of Fund expenses	16
Sector allocations	19
Statements of net assets	22
Statements of operations	50
Statements of changes in net assets	52
Financial highlights	58
Notes to financial statements	76
Report of independent registered
public accounting firm	90
Other Fund information	91
Board of trustees/directors and
officers addendum	92
About the organization	102

Unless otherwise noted, views expressed herein are current as of August 31, 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.

Portfolio management review
Delaware Minnesota Municipal Bond Funds	September 7, 2010

Performance preview (for the year ended August 31, 2010)
Delaware Tax-Free Minnesota Fund (Class A shares)	1-year return	+8.66%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper Minnesota Municipal Debt Funds Average	1-year return	+10.08%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota Fund, please see the table on page 6.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Minnesota (double tax-exempt) or a city in Minnesota (triple tax-exempt).
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Tax-Free Minnesota Intermediate Fund (Class A shares)	1-year return	+7.96%
Barclays Capital 3–15 Year Blend Municipal Bond Index (benchmark)	1-year return	+8.99%
Lipper Other States Intermediate Municipal Debt Funds Average	1-year return	+7.54%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Minnesota Intermediate Fund, please see the table on page 9.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Other States Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years and are exempt from taxation on a specified city or state basis.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Minnesota High-Yield Municipal Bond Fund (Class A shares)	1-year return	+12.46%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper Minnesota Municipal Debt Funds Average	1-year return	+10.08%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Minnesota High-Yield Municipal Bond Fund, please see the table on page 12.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
The Lipper Minnesota Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Minnesota (double tax-exempt) or a city in Minnesota (triple tax-exempt).
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

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Portfolio management review
Delaware Minnesota Municipal Bond Funds

Economic environment

The Funds’ fiscal year, which ended Aug. 31, 2010, was one of continued economic challenges. When the period began, however, financial markets were bolstered by a broad-based sense of optimism about the economy:

• During the third quarter of 2009, the U.S. economy, as measured by gross domestic product (GDP), rose by an annualized 1.6%, marking the economy’s first quarterly expansion in more than a year.
• Growth in the fourth quarter of 2009 was even stronger. Annualized GDP expansion of 5.0% during those three months represented the fastest quarterly growth for the U.S. economy since early 2006. Source: U.S. Commerce Department.

As the reporting period progressed, however, indications began to mount that the U.S. economic environment was slowing once again. For example:

• Unemployment in the United States remained stubbornly high. The jobless rate peaked at 10.1% in October 2009 and finished the Fund’s fiscal period at a still-elevated 9.6%. (Source: U.S. Labor Department.)
• The rate of expansion in GDP decreased to 3.7% in the first three months of 2010, followed by a sluggish 1.6% in the year’s second quarter. This trend led some economists to worry about the potential for a “double-dip” recession. (Source: U.S. Commerce Department.)
• Investors focused their attention on the high levels of sovereign debt across the developed world (and particularly in Greece), fearing that reductions in government spending could exacerbate declining economic growth.
• The U.S. housing market, weighed down by significant foreclosure activity and declining sales, continued to struggle.

Encouragingly, inflation remained low throughout the reporting period, with the Consumer Price Index rising by just 1.2% for the 12 months ending July 31, 2010 (the most recent data available as this report was being prepared). With inflation well under control, the Federal Reserve Board (the Fed) kept its benchmark short-term interest rate under 1% where it has stood since the depths of the financial crisis in late 2008. The low rates were part of the Fed’s ongoing effort to stimulate economic growth — an effort that included a program announced late in the period to buy significant quantities of U.S. government debt.

Minnesota economic environment

We believe Minnesota has a fundamentally sound economy that is not dependent on any one sector. That being said, the state’s fiscal budget was not spared from the lingering effects of the national recession:

• The state’s budget deficit reached $3 billion after the Minnesota Supreme Court ruled that prior budget cuts enacted by the governor were unconstitutional. While the ruling only applied to $5.3 million in prior cuts, political and legal pressure apparently resulted in the restoration of much more funding, thus expanding the deficit. Minnesota lawmakers approved a budget compromise that closed the gap, relying primarily on delaying $1.8 billion in payments to elementary and secondary schools.

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• Preliminary estimates of tax revenues were down 4.3% from the state’s fiscal 2009 and 12.7% from fiscal 2008. The state expects to end fiscal 2011 with a depleted General Fund balance, and is currently projecting a $5.8 billion deficit in the 2012-2013 biennium. (Data: www.bls.gov; Minnesota Management & Budget; www.twincities.com; Moody’s Investors Service.)

Broad municipal bond market environment

While the sluggish economic backdrop hampered the U.S. equity market, we believe the effect on the municipal market was relatively muted because of a favorable balance between supply and demand. Despite concerns about state and local government finances, tax-exempt bonds of all maturity lengths and credit-quality ratings gained ground throughout most of the reporting period.

Overall, investor demand for tax-exempt securities remained generally strong, driven in part by a growing expectation of higher income-tax rates in the future, while at the same time, supply of municipal bonds became increasingly limited. A major factor behind this shift between supply and demand can be attributed to the introduction of the Build America Bond program, a feature of the February 2009 federal economic stimulus package. As a result of this program, many bond issues that traditionally would have come to market as tax-exempt municipal bonds were instead issued as taxable debt. This left far fewer new issues in the traditional tax-exempt municipal bond market, providing a very positive backdrop for the municipal bond asset class and driving the Funds’ returns throughout the fiscal period. (Source: Barclays Capital.)

Although all types of municipal bonds earned positive returns during the reporting period, those with longer maturity dates and lower credit ratings generally outperformed their shorter-maturity and higher-rated counterparts by a wide margin, as investors tended to favor longer-dated securities — despite their higher interest rate risk — for the potential to earn more income.

A similar situation occurred with regard to creditquality. Many investors increasingly exhibited a willingness to buy higher-yielding bonds, even if it meant taking on more credit risk.

Commitment to our longtime approach

In all three Funds profiled in this report, we continued to follow our basic investment philosophy and approach. We believe successful bond investing requires rigorous credit analysis. In our opinion, there is no substitute for thorough credit research. On a bond-by-bond basis, we scrutinize each security the Funds hold — or might consider holding. It is important to us to ensure our comfort level with a bond issue’s financial outlook and to feel confident that any potential risks are likely offset by the income the security provides. Through this strategy, we believe we can find opportunities that other investors with less experience and research diligence might overlook.

Our investment approach often leads us to an increased focus on bonds with credit ratings of BBB and A — which represent the lower tier of the investment grade bond universe — and a relative de-emphasis of higher-rated bonds, such as those rated AAA and AA. We generally feel that there tends to be an opportunity for us to obtain the most value for shareholders from the lower-rated types of investment grade municipal bonds.

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Portfolio management review
Delaware Minnesota Municipal Bond Funds

As the Funds’ fiscal year progressed, our tactics for managing the Funds became more selective as credit spreads narrowed — meaning that the premium paid to investors for buying riskier, lower-rated bonds declined — and bond prices rose. As these trends continued and interest rates on municipal bonds fell during the period, many of the bonds the Funds already held offered considerably higher levels of income than bonds that became available during the reporting period. For example, the Funds had purchased a number of bonds at the peak of the financial crisis, when tax-exempt municipal bond yields were extremely high because of investors’ concerns about the solvency of bond issuers. Careful research allowed us to eventually get comfortable with the credit quality of these issues. As a result, we were able to add some highly rated municipal bonds paying yields that, at the end of the Funds’ fiscal year, were comparable to what lower-rated A and even some BBB securities were offering.

Because bonds in the marketplace were paying the lower prevailing yields, we felt it was important to look at potential new purchases with an even more discerning eye. It often made little sense to us to sell higher-yielding bonds already in a Fund’s portfolio holdings in favor of new bonds reflecting the lower-interest-rate environment. We often said throughout 2010 that new bonds had to “fight their way into the portfolio.” In other words, we had to feel confident that new bonds offered sufficient value opportunities relative to their potential risks.

When we did add new securities to the Funds’ portfolio holdings as a result of Fund inflows (to accommodate cash generated by maturing bonds, for instance) we continued to follow our “bottom-up” investment strategy, carefully evaluating each issuer to become familiar with its financial position and to assess whether the bond’s return potential was commensurate with the risks involved with holding the securities.

Notable sectors and securities

As mentioned above, lower-rated bonds generally outperformed higher-rated issues throughout the majority of the Funds’ fiscal year. As a result, many of the individual bonds that made the strongest performance contributions across all three Funds were lower-rated issues. The best-performing sectors were often those with a significant amount of lower-rated bond issuance.

In a favorable market environment for tax-exempt debt, even the weakest performers tended to earn modestly positive returns during the reporting period. Generally speaking, the bonds that lagged the overall municipal market on a total return basis were those with higher credit ratings (meaning less credit risk) and shorter maturities (meaning less interest rate risk). With interest rates declining, municipal bond investors looked for ways to capture additional levels of income, leading them toward lower-rated, longer-dated bonds and away from higher-rated, shorter-maturity credits.

In Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, the best-performing group was industrial development revenue bonds, a sector that featured a number of securities benefiting from their lower credit ratings and relatively higher yields. Typically, much of the tax-exempt bond issuance that comes to market in Minnesota is of high credit quality,

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so the relative scarcity of lower-rated, higher-yielding bonds helped boost these securities’ performance in a time of strong demand.

In fact, the best individual performer in Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund during the reporting period was a Cloquet, Minnesota, Pollution Control Revenue bond whose interest payments were backed by forest-products company Potlatch Corporation. As many investors apparently became more optimistic about Potlatch’s finances, this lower-rated bond performed well. Another strong portfolio holding in Delaware Minnesota High-Yield Municipal Bond Fund was a Hutchinson, Minnesota, multifamily housing bond. This nonrated bond was supported by the favorable market conditions for riskier, higher-yielding debt.

Delaware Tax-Free Minnesota Fund also saw strong results from its holdings in nonrated continuing care retirement community (CCRC) bonds issued for Apple Valley, Minnesota. CCRCs are residential communities for seniors, ranging from independent-living to skilled-nursing-care facilities. This Minnesota CCRC is an established community with strong occupancy that has done reasonably well from a financial perspective.

Meanwhile, the top-performing sector in Delaware Tax-Free Minnesota Intermediate Fund was hospital bonds, which make up a sizeable portion of the marketplace for tax-exempt debt. The Fund’s leading contributors included a revenue bond issue for Glencoe Regional Health Services, which benefited from its presence in a sector that excelled during the Funds’ fiscal period. In addition, its BBB credit rating (lower medium grade) was a positive in an environment favoring lower-rated securities.

The best-performing security overall in Delaware Tax-Free Minnesota Intermediate Fund was a Puerto Rico sales-tax bond. Bonds issued by U.S. territories are generally fully tax-exempt for residents of all 50 states. Particularly in a state such as Minnesota, with reasonably homogenous bond issuance, we feel that investing in Puerto Rico debt provides a good opportunity to help diversify the Fund’s portfolio. We were attracted to the relatively high yields offered by this bond and generally felt confident about the territory’s financial situation.

As mentioned above, even the weakest-performing bonds in all three Funds posted modestly positive results — an indication of the favorable market conditions witnessed by municipal bond investors during the Funds’ fiscal year. The sector making the smallest performance contribution within the Funds was prerefunded bonds. These bonds have very short maturities, and because they are typically backed by U.S. Treasury bonds (or other high-quality securities), they are considered high in credit quality. In an environment in which investors preferred lower-quality to higher-quality bonds, and longer-dated to shorter-dated issues, prerefunded bonds were somewhat left behind.

In Delaware Tax-Free Minnesota Fund, the weakest contributor to overall total return included prerefunded Chaska, Minnesota, electric revenue bonds due in 2025. Within Delaware Tax-Free Minnesota Intermediate Fund, the weakest contributor to overall return included a Minneapolis / St. Paul airport bond due in January 2020, while Minnesota Community Development Authority bonds coming due in December 2031 brought up the rear in Delaware Minnesota High-Yield Municipal Bond Fund.

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Performance summaries
Delaware Tax-Free Minnesota Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Delaware Tax-Free Minnesota Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com. Read the prospectus carefully before you invest or send money.

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year	5 years	10 years
Class A (Est. Feb. 27, 1984)
Excluding sales charge	+8.66%	+4.34%	+5.37%
Including sales charge	+3.80%	+3.38%	+4.89%
Class B (Est. March 11, 1995)
Excluding sales charge	+7.85%	+3.56%	+4.74%
Including sales charge	+3.85%	+3.29%	+4.74%
Class C (Est. May 4, 1994)
Excluding sales charge	+7.91%	+3.58%	+4.60%
Including sales charge	+6.91%	+3.58%	+4.60%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 6 through 8.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

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Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart.

Fund expense ratios	Class A		Class B		Class C
Total annual operating expenses		0.95%		1.70%		1.70%
(without fee waivers)
Net expenses		0.95%		1.70%		1.70%
(including fee waivers, if any)
Type of waiver		n/a		n/a		n/a

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Performance summaries
Delaware Tax-Free Minnesota Fund

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free Minnesota Fund — Class A Shares	$9,550	$16,105

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 6 through 8.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	DEFFX	928918101
Class B	DMOBX	928928696
Class C	DMOCX	928918408

8

Delaware Tax-Free Minnesota Intermediate Fund August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Delaware Tax-Free Minnesota Intermediate Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com. Read the prospectus carefully before you invest or send money.

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year	5 years	10 years
Class A (Est. Oct. 27, 1985)
Excluding sales charge	+7.96%	+4.39%	+5.10%
Including sales charge	+4.95%	+3.81%	+4.81%
Class B (Est. Aug. 15, 1995)
Excluding sales charge	+7.14%	+3.52%	+4.65%
Including sales charge	+5.14%	+3.52%	+4.65%
Class C (Est. May 4, 1994)
Excluding sales charge	+7.14%	+3.52%	+4.22%
Including sales charge	+6.14%	+3.52%	+4.22%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 9 through 11.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 2.75%, and have an annual distribution and service fee of up to 0.25% of average daily net assets. This fee has been contractually limited to 0.15% of average daily net assets from Jan. 1, 2010, through Dec. 31, 2010.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional

9

Performance summaries
Delaware Tax-Free Minnesota Intermediate Fund

information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 2.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately five years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has agreed to reimburse certain expenses and/or waive certain fees from Jan. 1, 2010, through Dec. 31, 2010. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.97%	1.72%	1.72%
(without fee waivers)
Net expenses	0.87%	1.72%	1.72%
(including fee waivers, if any)
Type of waiver	Contractual	n/a	n/a

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Performance of a $10,000 investment

Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

 

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital 3–15 Year Blend Municipal Bond Index	$10,000	$17,312
	Delaware Tax-Free Minnesota Intermediate Fund — Class A Shares	$9,725	$15,973

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 2.75% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 9 through 11.

The chart also assumes $10,000 invested in the Barclays Capital 3–15 Year Blend Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital 3–15 Year Blend Municipal Bond Index, sometimes also referred to as the Barclays Capital 3–15 Year Municipal Bond Index, measures the total return performance of investment grade, U.S. tax-exempt bonds with maturities from 2 to 17 years.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	DXCCX	928930106
Class B	DVSBX	928928399
Class C	DVSCX	928930205

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Performance summaries
Delaware Minnesota High-Yield Municipal Bond Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

You should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The Delaware Minnesota High-Yield Municipal Bond Fund prospectus contains this and other important information about the investment company. Please request a prospectus through your financial advisor or by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com. Read the prospectus carefully before you invest or send money.

Fund performance	Average annual total returns through Aug. 31, 2010
		1 year	5 years	10 years
Class A (Est. June 4, 1996)
Excluding sales charge		+12.46%	+4.46%	+6.01%
Including sales charge		+7.37%	+3.50%	+5.53%
Class B (Est. June 12, 1996)
Excluding sales charge		+11.62%	+3.66%	+5.37%
Including sales charge		+7.62%	+3.40%	+5.37%
Class C (Est. June 7, 1996)
Excluding sales charge		+11.61%	+3.68%	+5.23%
Including sales charge		+10.61%	+3.68%	+5.23%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 12 through 14.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00%

12

to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has voluntarily agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses from exceeding 0.70% of the Fund’s average daily net assets. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.97%	1.72%	1.72%
(without fee waivers)
Net expenses	0.95%	1.70%	1.70%
(including fee waivers, if any)
Type of waiver	Voluntary	Voluntary	Voluntary

13

Performance summaries
Delaware Minnesota High-Yield Municipal Bond Fund

Performance of a $10,000 investment

Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

 

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Minnesota High-Yield Municipal Bond Fund — Class A Shares	$9,550	$17,102

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 12 through 14.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	DVMHX	928928316
Class B	DVMYX	928928290
Class C	DVMMX	928928282

14

Disclosure of Fund expenses
For the six-month period March 1, 2010 to August 31, 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 six-month period from March 1, 2010 to August 31, 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.

16

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

	Beginning	Ending		Expenses
	Account Value	Account Value	Annualized	Paid During Period
	3/1/10	8/31/10	Expense Ratio	3/1/10 to 8/31/10*
Actual Fund return
Class A	$1,000.00	$1,043.70	0.93%	$4.79
Class B	1,000.00	1,039.80	1.68%	8.64
Class C	1,000.00	1,040.50	1.68%	8.64
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.52	0.93%	$4.74
Class B	1,000.00	1,016.74	1.68%	8.54
Class C	1,000.00	1,016.74	1.68%	8.54

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
	3/1/10	8/31/10	Expense Ratio	3/1/10 to 8/31/10*
Actual Fund return
Class A	$1,000.00	$1,044.30	0.85%	$4.38
Class B	1,000.00	1,040.70	1.70%	8.74
Class C	1,000.00	1,040.70	1.70%	8.74
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.92	0.85%	$4.33
Class B	1,000.00	1,016.64	1.70%	8.64
Class C	1,000.00	1,016.64	1.70%	8.64

17

Disclosure of Fund expenses

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
	3/1/10	8/31/10	Expense Ratio	3/1/10 to 8/31/10*
Actual Fund return
Class A	$1,000.00	$1,057.60	0.95%	$4.93
Class B	1,000.00	1,052.60	1.70%	8.80
Class C	1,000.00	1,053.60	1.70%	8.80
Hypothetical 5% return (5% return before expenses)
Class A	$1,000.00	$1,020.42	0.95%	$4.84
Class B	1,000.00	1,016.64	1.70%	8.64
Class C	1,000.00	1,016.64	1.70%	8.64

* “Expenses Paid During Period” are equal to the Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

18

Sector allocations
Delaware Tax-Free Minnesota Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds		100.25%
Corporate-Backed Revenue Bonds		4.17%
Education Revenue Bonds		6.99%
Electric Revenue Bonds		5.52%
Healthcare Revenue Bonds		24.50%
Housing Revenue Bonds		6.96%
Lease Revenue Bonds		3.22%
Local General Obligation Bonds		18.22%
Pre-Refunded/Escrowed to Maturity Bonds		23.67%
Special Tax Revenue Bonds		1.75%
State General Obligation Bonds		3.01%
Transportation Revenue Bonds		1.87%
Water & Sewer Revenue Bonds		0.37%
Short-Term Investment		0.11%
Total Value of Securities		100.36%
Liabilities Net of Receivables and Other Assets		(0.36%)
Total Net Assets		100.00%

19

Sector allocations
Delaware Tax-Free Minnesota Intermediate Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.82%
Corporate-Backed Revenue Bonds	1.48%
Education Revenue Bonds	10.66%
Electric Revenue Bonds	7.61%
Healthcare Revenue Bonds	21.83%
Housing Revenue Bonds	3.58%
Lease Revenue Bonds	2.71%
Local General Obligation Bonds	25.27%
Pre-Refunded/Escrowed to Maturity Bonds	9.01%
Special Tax Revenue Bonds	6.60%
State General Obligation Bonds	3.76%
Transportation Revenue Bonds	3.39%
Water & Sewer Revenue Bonds	2.92%
Short-Term Investments	0.61%
Total Value of Securities	99.43%
Receivables and Other Assets Net of Liabilities	0.57%
Total Net Assets	100.00%

20

Delaware Minnesota High-Yield Municipal Bond Fund As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.45%
Corporate-Backed Revenue Bonds	4.22%
Education Revenue Bonds	7.58%
Electric Revenue Bonds	7.08%
Healthcare Revenue Bonds	33.87%
Housing Revenue Bonds	11.25%
Lease Revenue Bonds	2.76%
Local General Obligation Bonds	11.21%
Pre-Refunded/Escrowed to Maturity Bonds	7.23%
Special Tax Revenue Bonds	7.69%
State General Obligation Bonds	1.64%
Transportation Revenue Bond	1.34%
Water & Sewer Revenue Bonds	2.58%
Short-Term Investments	0.60%
Total Value of Securities	99.05%
Receivables and Other Assets Net of Liabilities	0.95%
Total Net Assets	100.00%

21

Statements of net assets
Delaware Tax-Free Minnesota Fund	August 31, 2010

		Principal amount		Value
Municipal Bonds – 100.25%
Corporate-Backed Revenue Bonds – 4.17%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26	$	6,500,000	$	6,364,280
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		8,000,000		8,233,600
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27		7,265,000		7,295,731
	Seaway Port Authority of Duluth Industrial
	Development Dock & Wharf Revenues Refunding
	(Cargill Project) Series E 6.125% 11/1/14		4,500,000		4,520,205
					26,413,816
Education Revenue Bonds – 6.99%
	Minnesota Colleges & Universities Revenue Fund Series A
	5.00% 10/1/22 (AGM)		5,135,000		5,500,047
	5.00% 10/1/28		8,900,000		10,015,971
	5.00% 10/1/29 (NATL-RE)		5,665,000		6,110,779
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/20		1,250,000		1,298,225
	Series 6-J1 5.00% 5/1/36		2,225,000		2,239,574
	(Bethel University) Series 6-R 5.50% 5/1/37		2,500,000		2,517,800
	(Carleton College)
	Series 6-T 5.00% 1/1/28		1,000,000		1,115,050
	Series 7-D 5.00% 3/1/40		3,000,000		3,251,490
	St. Olaf College Series 7-F 4.50% 10/1/30		2,000,000		2,077,020
	(University of St. Thomas)
	Series 6-X 5.25% 4/1/39		5,000,000		5,291,700
	Series 7-A 5.00% 10/1/39		2,000,000		2,114,300
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23		2,000,000		2,109,900
	University of Minnesota Series C 4.00% 2/1/16		515,000		585,184
					44,227,040
Electric Revenue Bonds – 5.52%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.00% 10/1/30		3,000,000		3,133,860
	Minnesota Municipal Power Agency Electric Revenue
	5.00% 10/1/35		3,000,000		3,100,410
	Series A
	5.00% 10/1/34		6,250,000		6,433,250
	5.125% 10/1/29		3,000,000		3,138,540

22

		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	$	2,507,825
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.50% 7/1/38		4,800,000		5,087,616
	Series XX 5.25% 7/1/40		5,000,000		5,242,350
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A
	5.25% 1/1/15 (AMBAC)		2,900,000		3,362,492
	^Capital Appreciation 4.44% 1/1/25 (NATL-RE)		5,000,000		2,919,150
					34,925,493
Healthcare Revenue Bonds – 24.50%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.60% 2/1/32		2,100,000		1,972,887
	Alexandria Senior Housing Revenue
	(Knute Nelson Senior Living)
	6.00% 7/1/35		1,500,000		1,536,540
	6.20% 7/1/45		2,000,000		2,054,660
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40		2,700,000		2,720,169
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/24 (RADIAN)		740,000		745,735
	5.00% 9/1/31 (RADIAN)		500,000		497,425
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30		2,500,000		2,586,925
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care)
	5.15% 8/1/35		1,250,000		1,232,675
	5.40% 8/1/40		1,000,000		999,950
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital) 5.25% 5/1/37		2,950,000		2,992,834
	Minneapolis Health Care Facilities Revenue
	(Jones-Harrison Residence Project) 5.60% 10/1/30		1,050,000		976,994
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28		3,000,000		3,480,000
	Series B 6.50% 11/15/38 (ASSURED GTY)		1,140,000		1,313,907

23

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Minneapolis Health Care System Revenue (continued)
	Series D
	5.00% 11/15/30 (AMBAC)	$	2,500,000	$	2,570,125
	5.00% 11/15/34 (AMBAC)		4,750,000		4,838,968
	Minneapolis National Marrow Donor Program
	Project Revenue 4.875% 8/1/25		4,000,000		4,056,240
	Minneapolis - St. Paul Housing & Redevelopment
	Authority Health Care Revenue
	(Children’s Hospital) Series A
	5.00% 8/15/30		2,750,000		2,814,075
	5.25% 8/15/35		2,085,000		2,176,990
	(Health Partners Obligation Group Project)
	5.875% 12/1/29		1,000,000		1,018,360
	Minnesota Agricultural & Economic
	Development Board Revenue
	(Benedictine Health Systems) 5.75% 2/1/29		1,895,000		1,819,276
	(Essential Remarketing) Series C-1
	5.00% 2/15/30 (ASSURED GTY)		5,725,000		6,031,288
	5.25% 2/15/23 (ASSURED GTY)		5,000,000		5,670,700
	5.50% 2/15/25 (ASSURED GTY)		5,120,000		5,773,363
	(Fairview Health Care System)
	Un-Refunded Balance Series A
	5.75% 11/15/26 (NATL-RE)		180,000		180,162
	6.375% 11/15/29		15,000		15,189
	Northfield Hospital Revenue 5.375% 11/1/26		3,785,000		3,845,598
	Rochester Health Care & Housing Revenue Refunding
	(Samaritan Bethany) Series A 7.375% 12/1/41		5,220,000		5,555,437
	Rochester Health Care Facilities Revenue
	(Mayo Clinic) Remarketing Series D 5.00% 11/15/38		3,240,000		3,457,987
	(Olmsted Medical Center) 5.875% 7/1/30		1,850,000		1,910,495
	Sartell Health Care Facilities Revenue
	(Country Manor Campus) Series A 6.375% 9/1/42		2,435,000		2,480,583
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center)
	5.10% 9/1/25		2,000,000		2,010,560
	5.25% 9/1/34		7,000,000		6,943,369
	Sherburne County Health Care Facilities Revenue
	(Guardian Angels Health Services) 5.55% 10/1/36		1,500,000		1,362,075

24

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	Series A
	5.00% 5/1/25	$	1,035,000	$	1,074,723
	5.125% 5/1/30		5,350,000		5,656,716
	Series D Remarketing 5.50% 5/1/39 (ASSURED GTY)		6,000,000		6,418,260
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services)
	Refunding 5.75% 7/1/39		15,200,000		15,611,463
	Series C
	5.50% 7/1/23		3,000,000		3,201,120
	5.625% 7/1/26		1,925,000		2,016,649
	5.75% 7/1/30		5,000,000		5,223,750
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project)
	5.25% 5/15/36		4,900,000		4,818,121
	(Senior Carondelet Village Project)
	Series A 6.00% 8/1/42		3,075,000		3,100,738
	St. Paul Housing & Redevelopment Authority
	Health Care Revenue (Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)		5,720,000		6,404,970
	Series A-1 5.25% 11/15/29		5,605,000		5,897,021
	St. Paul Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/30		4,000,000		3,999,560
	Series A 5.70% 11/1/15		1,150,000		1,150,449
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue Refunding
	(Marion Center Project) Series A
	5.30% 11/1/30		500,000		457,040
	5.375% 5/1/43		500,000		441,715
	Stillwater Health Care Revenue (Health System
	Obligation Group) 5.00% 6/1/35		1,000,000		1,003,700
	Washington County Housing & Redevelopment
	Authority Hospital Facilities Revenue
	(Health East Project) 5.50% 11/15/27		1,000,000		961,210
					155,078,746

25

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds – 6.96%
	Minneapolis Multifamily Housing Revenue
	(Bottineau Commons Project)
	5.45% 4/20/43 (GNMA) (AMT)	$	1,500,000	$	1,515,300
	(Grant Street Apartments Project) Series A 7.25% 11/1/29		750,000		758,685
	(Seward Towers Project) 5.00% 5/20/36 (GNMA)		8,000,000		8,174,640
	(Sumner Field) Series A 5.50% 11/20/26 (GNMA) (AMT)		875,000		894,521
	(Trinity Apartments) Refunding Series A
	6.75% 5/1/21 (HUD)		1,495,000		1,512,566
	Minnesota Housing Finance Agency Rental Housing
	Revenue Series C-2 5.95% 2/1/15 (AMBAC)		1,490,000		1,493,978
	Minnesota Housing Finance Agency (Residential Housing)
	Series A 5.30% 7/1/19		425,000		431,311
	Series B-1 5.35% 1/1/33 (AMT)		2,450,000		2,460,903
	•Series D 4.80% 7/1/38 (AMT)		2,500,000		2,480,850
	Series I 4.85% 7/1/38 (AMT)		2,000,000		1,999,880
	Series I 5.15% 7/1/38 (AMT)		5,530,000		5,617,153
	Series L 5.10% 7/1/38 (AMT)		9,910,000		10,043,091
	Series M 4.875% 7/1/37 (AMT)		4,500,000		4,509,135
@	Washington County Housing & Redevelopment
	Authority Governmental Revenue Refunding
	(Briar Pond Project) Series C 7.25% 8/20/34		915,000		809,674
	White Bear Lake Multifamily Revenue Refunding
	(Lake Square Apartments) Series A 5.875% 2/1/15 (FHA)		620,000		621,600
	Willmar Housing & Redevelopment Authority
	Multifamily Housing Revenue
	(Highland Apartments) 5.85% 6/1/19 (HUD)		730,000		730,460
					44,053,747
Lease Revenue Bonds – 3.22%
	Minneapolis Special School District #001 Series A
	5.00% 2/1/18 (AGM)		1,545,000		1,635,243
	5.00% 2/1/19 (AGM)		1,535,000		1,624,659
	5.00% 2/1/20 (AGM)		1,690,000		1,788,713
	St. Paul Port Authority Lease Revenue
	(Cedar Street Office Building Project)
	5.00% 12/1/22		2,500,000		2,681,475
	5.25% 12/1/27		3,840,000		3,994,522
	Series 3-12 5.125% 12/1/27		3,000,000		3,159,210

26

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	St. Paul Port Authority Lease Revenue
	(Robert Street Office Building Project)
	Series 3-11 4.75% 12/1/23	$	2,000,000	$	2,107,980
	Series 3-11 5.00% 12/1/27		2,500,000		2,622,350
	Series 9 5.25% 12/1/27		725,000		754,174
					20,368,326
Local General Obligation Bonds – 18.22%
	Anoka County Capital Improvement Series A
	5.00% 2/1/19		1,270,000		1,560,894
	5.00% 2/1/22		500,000		593,630
	Brainerd Independent School District #181 Refunding
	(School Building) Series A
	4.00% 2/1/22		3,255,000		3,587,856
	4.00% 2/1/23		5,990,000		6,531,676
	Centennial Independent School District #012
	Series A 5.00% 2/1/18 (AGM)		1,270,000		1,341,285
	Dakota County Capital Improvement
	Series A 4.75% 2/1/26		1,000,000		1,007,670
	Farmington Independent School District #192 Series B
	5.00% 2/1/27 (AGM)		10,705,000		11,531,319
	^Capital Appreciation 5.34% 2/1/21 (AGM)		1,500,000		909,135
	^Capital Appreciation 5.424% 2/1/20 (AGM)		1,650,000		1,054,779
	Hennepin County Series B 4.00% 12/1/20		5,255,000		6,144,934
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)		6,850,000		7,194,829
^	Mahtomedi Independent School District #832
	Capital Appreciation Series B 5.90% 2/1/14 (NATL-RE)		1,540,000		1,481,234
	Metropolitan Council Minneapolis-St. Paul
	Metropolitan Area Waste Water Treatment
	Series B 5.00% 12/1/21		1,200,000		1,375,476
	Series C
	5.00% 3/1/16		2,440,000		2,926,170
	5.00% 3/1/28		5,000,000		5,486,300
	Minneapolis Library 5.00% 12/1/25		1,500,000		1,571,580
	Morris Independent School District #769 Building
	5.00% 2/1/24 (NATL-RE)		4,875,000		5,304,390
	Mounds View Independent School District #621 Series A
	5.00% 2/1/20 (NATL-RE)		2,970,000		3,165,070
	5.375% 2/1/24 (FGIC) (TCRS)		6,170,000		6,289,081

27

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	New Brighton Tax Increment Series A
	5.00% 2/1/27 (NATL-RE)	$	1,000,000	$	1,108,840
	Osseo Independent School District #279 Series A
	5.00% 2/1/21 (AGM)		3,570,000		3,766,243
	Prior Lake Independent School District #719 Series B
	5.00% 2/1/19 (AGM)		3,145,000		3,549,290
	Ramsey County State Aid Series C 5.00% 2/1/28		1,060,000		1,139,118
	Robbinsdale Independent School District #281
	5.00% 2/1/21 (AGM)		1,310,000		1,387,670
^	Rosemount Independent School District #196
	Capital Appreciation Series B
	5.931% 4/1/11 (AGM)		2,600,000		2,592,746
	5.961% 4/1/12 (AGM)		1,850,000		1,827,911
	6.008% 4/1/13 (AGM)		1,915,000		1,868,197
^	Sartell Independent School District #748
	Capital Appreciation Refunding Series B
	5.976% 2/1/13 (NATL-RE)		540,000		523,201
	6.10% 2/1/15 (NATL-RE)		1,075,000		987,785
	6.15% 2/1/16 (NATL-RE)		1,750,000		1,547,525
^	Sauk Rapids Independent School District #047 Series B
	5.983% 2/1/15 (AGM)		2,700,000		2,128,842
	6.083% 2/1/17 (AGM)		2,245,000		1,566,583
	South Washington County Independent School
	District #833 Series A
	4.75% 2/1/25		2,500,000		2,788,050
	4.75% 2/1/26		3,600,000		3,976,992
	4.75% 2/1/27		2,300,000		2,523,307
	St. Michael Independent School District #885
	5.00% 2/1/20 (AGM)		1,970,000		2,080,576
	5.00% 2/1/27 (AGM)		3,435,000		3,627,807
	St. Peter’s Hospital Series A 5.00% 9/1/24 (NATL-RE)		1,905,000		1,905,000
	Todd Morrison Cass & Wadena Counties Staples United
	Hospital District (Health Care Facilities-Lakewood)
	5.00% 12/1/21		2,000,000		2,139,440
	5.125% 12/1/24		1,000,000		1,060,360
	Willmar (Rice Memorial Hospital Project)
	5.00% 2/1/22 (AGM)		1,000,000		1,087,260
	5.00% 2/1/25 (AGM)		1,000,000		1,039,270
					115,279,321

28

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds – 23.67%
	Dakota County Community Development Agency
	(Senior Housing Facilities) 5.00% 1/1/21-12	$	1,275,000	$	1,353,884
	Dakota-Washington Counties Housing & Redevelopment
	Authority Single Family Residential Mortgage Revenue
	8.15% 9/1/16 (GNMA) (NATL-RE) (IBC) (AMT)		405,000		530,364
	(Anoka County) 8.45% 9/1/19 (GNMA) (AMT)		9,000,000		12,591,450
	(Bloomington Mortgage) Refunding Series B
	8.375% 9/1/21 (GNMA) (FHA) (VA) (AMT)		14,115,000		20,040,195
	Duluth Economic Development Authority
	Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/33-14		10,000,000		11,579,700
	5.50% 2/15/23-14		1,000,000		1,166,500
	Hennepin County Regional Railroad Authority
	5.00% 12/1/31-10		4,030,000		4,078,481
	Hopkins Housing & Redevelopment Authority
	(Public Works & Fire Station) Series A
	5.00% 2/1/23-13 (NATL-RE)		1,210,000		1,342,737
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12		17,300,000		19,330,155
	(Fairview Health Services) Series A 5.625% 5/15/32-12		16,925,000		18,626,978
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue
	Series A 5.25% 1/1/32-11 (FGIC)		5,000,000		5,084,150
	Series C 5.25% 1/1/32-11 (FGIC)		6,845,000		6,959,517
	Minnesota Agricultural & Economic Development Revenue
	(Fairview Health Care System)
	Series A 6.375% 11/15/29-10		485,000		495,980
	Rochester Electric Utilities Revenue 5.25% 12/1/30-10		4,915,000		4,976,044
	Southern Minnesota Municipal Power Agency Power
	Supply Revenue Series A
	5.75% 1/1/18-13		3,790,000		4,132,123
	5.75% 1/1/18-13 (AMBAC) (TCRS)		670,000		730,481
	5.75% 1/1/18-13 (NATL-RE) (IBC)		1,000,000		1,090,270
	Refunding Series B 5.50% 1/1/15 (AMBAC)		990,000		1,036,332
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B
	5.25% 7/1/30-14		9,420,000		10,943,026
	5.50% 7/1/25-14		2,000,000		2,342,140

29

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	University of Minnesota Series A
	5.50% 7/1/21		$	12,500,000	$	15,574,875
	5.75% 7/1/18			3,840,000		4,809,562
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 9.75% 1/1/16 (NATL-RE)			715,000		971,428
						149,786,372
Special Tax Revenue Bonds – 1.75%
	Hennepin County Sales Tax Revenue
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/19			2,100,000		2,494,086
	5.00% 12/15/20			1,000,000		1,174,920
	5.00% 12/15/24			1,150,000		1,316,210
	Minneapolis Tax Increment Revenue Refunding
	(St. Anthony Falls Project) 5.75% 2/1/27			1,000,000		958,960
	Puerto Rico Sales Tax Financing Sales Tax Revenue
	First Subordinate Series A 5.75% 8/1/37			4,760,000		5,102,529
						11,046,705
State General Obligation Bonds – 3.01%
	Minnesota State
	5.00% 10/1/15			5,000,000		5,975,100
	5.00% 8/1/21			2,400,000		2,593,104
	Series A 5.00% 12/1/21			5,000,000		6,112,850
	Puerto Rico Commonwealth Public Improvement
	Refunding Series C 6.00% 7/1/39			4,045,000		4,390,807
						19,071,861
Transportation Revenue Bonds – 1.87%
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue Series A
	5.00% 1/1/15 (AMT)			3,095,000		3,447,830
	5.00% 1/1/22 (NATL-RE)			2,000,000		2,081,160
	5.25% 1/1/16 (NATL-RE)			1,460,000		1,574,902
	St. Paul Housing & Redevelopment Authority Parking
	Revenue Refunding (Parking Facilities Project)
	Series A
	5.00% 8/1/30			1,870,000		1,984,014
	5.00% 8/1/35			1,500,000		1,550,910
	Series B 5.00% 8/1/35			1,145,000		1,173,877
						11,812,693

30

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 0.37%
	Minnesota Public Facilities Authority Drinking Water
	Revenue Series B 5.25% 3/1/13		$	1,000,000	$	1,120,310
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series B
	5.00% 3/1/19			1,000,000		1,240,850
						2,361,160
Total Municipal Bonds (cost $592,091,766)						634,425,280
				Number of shares
Short-Term Investment – 0.11%
Money Market Instrument – 0.11%
	Federated Minnesota Municipal Cash Trust			723,114		723,114
Total Short-Term Investment (cost $723,114)						723,114
Total Value of Securities – 100.36%
	(cost $592,814,880)					635,148,394
Liabilities Net of Receivables and
	Other Assets – (0.36%)					(2,282,329	)
Net Assets Applicable to 49,686,578
	Shares Outstanding – 100.00%				$	632,866,065
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class A ($586,651,076 / 46,067,569 Shares)					$12.73
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class B ($7,234,221 / 567,690 Shares)					$12.74
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class C ($38,980,768 / 3,051,319 Shares)					$12.78
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	588,778,170
Distributions in excess of net investment income						(144,194	)
Accumulated net realized gain on investments						1,898,575
Net unrealized appreciation of investments						42,333,514
Total net assets					$	632,866,065

31

Statements of net assets
Delaware Tax-Free Minnesota Fund

^	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 August 31, 2010. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”
@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $809,674, which represented 0.13% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”

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
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
NATL-RE — Insured by the National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
TCRS — Temporary Custodial Receipts
VA — Veterans Administration

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Fund
Net asset value Class A (A)	$	12.73
Sales charge (4.50% of offering price) (B)		0.60
Offering price	$	13.33

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

32

Delaware Tax-Free Minnesota Intermediate Fund August 31, 2010

		Principal amount			Value
Municipal Bonds – 98.82%
Corporate-Backed Revenue Bonds – 1.48%
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		$	750,000	$	771,900
	Minneapolis Community Development Agency (Limited Tax
	Common Bond Fund) Series 4 6.20% 6/1/17 (AMT)			870,000		875,707
						1,647,607
Education Revenue Bonds – 10.66%
	Minnesota Colleges & Universities Revenue Fund
	Series A 5.00% 10/1/28			1,000,000		1,125,390
	Minnesota Higher Education Facilities Authority Revenue
	(Carleton College)
	Series 6-T 4.75% 1/1/23			1,000,000		1,131,620
	Series 7-D 5.00% 3/1/30			1,500,000		1,675,290
	(Hamline University) Series 7-E 5.00% 10/1/29			250,000		259,008
	(Macalester College) Series 6-P 4.25% 3/1/27			750,000		777,810
	(St. Johns University) Series 6-U
	4.40% 10/1/21			325,000		353,954
	4.50% 10/1/23			265,000		284,825
	(University of St. Thomas)
	Series 5-Y 5.25% 10/1/19			1,590,000		1,742,497
	Series 6-X 5.00% 4/1/24			1,000,000		1,097,660
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23			1,000,000		1,054,950
	University of Minnesota
	Series A 4.00% 4/1/15			310,000		350,591
	Series C 4.00% 2/1/14			250,000		278,128
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt) 5.00% 8/1/18			1,500,000		1,744,259
						11,875,982
Electric Revenue Bonds – 7.61%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25			1,000,000		1,071,670
	Minnesota Municipal Power Agency Electric Revenue
	5.25% 10/1/21			1,000,000		1,106,170
	Northern Municipal Power Agency Electric
	System Revenue Series A
	5.00% 1/1/13 (ASSURED GTY)			1,200,000		1,314,804
	5.00% 1/1/14 (ASSURED GTY)			510,000		576,351
	5.00% 1/1/15 (ASSURED GTY)			1,000,000		1,145,840

33

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Puerto Rico Electric Power Authority Revenue
	Series XX 5.75% 7/1/36		$	2,000,000	$	2,171,900
	Southern Minnesota Municipal Power Agency
	Supply System Revenue Series A 5.25% 1/1/30			1,000,000		1,089,270
						8,476,005
Healthcare Revenue Bonds – 21.83%
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services) 5.00% 9/1/31 (RADIAN)			650,000		646,653
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care) 4.75% 8/1/25			500,000		507,755
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project) 5.00% 4/1/31			1,000,000		972,400
	Minneapolis Health Care System Revenue (Fairview Health
	Services) Series A 6.625% 11/15/28			1,500,000		1,740,000
	Minneapolis National Marrow Donor Program
	Project Revenue 5.00% 8/1/17			1,205,000		1,309,751
	Minneapolis - St. Paul Housing & Redevelopment
	Authority Health Care Revenue
	(Children’s Hospital) Series A 5.25% 8/15/25			1,000,000		1,088,770
	(Health Partners Obligation Group Project) 6.00% 12/1/17			850,000		908,489
	Minnesota Agricultural & Economic Development Board
	Health Care Revenue (Essentia Remarketing) Series C-1
	5.50% 2/15/25 (ASSURED GTY)			2,500,000		2,819,024
	Moorhead Economic Development Authority
	Multifamily Housing Revenue Refunding
	(Eventide Lutheran Home Project) 4.70% 6/1/18			475,000		466,802
	Rochester Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A 6.875% 12/1/29			950,000		1,004,093
	Rochester Health Care Facilities Revenue
	(Olmsted Medical Center) 5.125% 7/1/20			1,000,000		1,069,260
	Sartell Health Care Facilities (Country Manor Campus)
	Series A 6.125% 9/1/30			845,000		864,029
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.375% 5/1/31 (ASSURED GTY)			1,000,000		1,078,910
	Series A 5.125% 5/1/30			1,750,000		1,850,328

34

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.50% 7/1/29		$	1,000,000	$	1,030,960
	Series C 5.625% 7/1/26			2,500,000		2,619,024
	St. Paul Housing & Redevelopment Authority Health
	Care Revenue (Allina Health System) Series A-2
	5.25% 11/15/28			2,000,000		2,138,339
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project) Series B 5.85% 11/1/17			1,160,000		1,160,499
	St. Paul Housing & Redevelopment Authority Housing &
	Health Care Facilities Revenue (Senior Carondelet
	Village Project) Series A 6.25% 8/1/30			1,000,000		1,046,700
						24,321,786
Housing Revenue Bonds – 3.58%
	Minneapolis Multifamily Housing Revenue Refunding
	(Trinity Apartments) Series A 6.75% 5/1/21 (HUD)			1,555,000		1,573,272
	Minnesota Housing Finance Agency Residential Housing
	•Series D 4.75% 7/1/32 (AMT)			750,000		747,930
	Series I 5.10% 7/1/20 (AMT)			645,000		656,700
	Series M 4.85% 7/1/31 (AMT)			1,000,000		1,007,410
						3,985,312
Lease Revenue Bonds – 2.71%
	Edina Housing & Redevelopment Authority Public Project
	Revenue (Appropriate Lease Obligation) 5.125% 2/1/19			1,000,000		1,047,390
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Un-Refunded Balance Series D 5.25% 7/1/36			1,070,000		1,077,158
	Virginia Housing & Redevelopment Authority Health
	Care Facility Lease Revenue 5.25% 10/1/25			880,000		897,046
						3,021,594
Local General Obligation Bonds – 25.27%
	Anoka County Capital Improvements
	Series A 4.00% 2/1/17			1,175,000		1,346,538
	Series C 5.00% 2/1/27			500,000		561,975
	Anoka-Hennepin Independent School District #11
	Refunding 5.00% 2/1/17			1,000,000		1,208,780

35

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Big Lake Independent School District #727 Series C Refunding
	5.00% 2/1/16 (AGM)		$	1,180,000	$	1,200,272
	5.00% 2/1/17 (AGM)			1,000,000		1,017,180
	Brainerd Independent School District #181 Refunding
	(School Building) Series A 4.00% 2/1/22			2,500,000		2,755,649
	Centennial Independent School District #012 Series A
	5.00% 2/1/18 (AGM)			1,000,000		1,056,130
	5.00% 2/1/20 (AGM)			750,000		792,098
	Dakota County Capital Improvement Series A 4.75% 2/1/17			1,000,000		1,016,890
	Duluth Independent School District #709 Revenue
	Certificates of Participation Series A 4.25% 2/1/20 (AGM)			1,710,000		1,933,651
	Hopkins Independent School District #270 5.125% 2/1/17 (FGIC)			2,000,000		2,115,780
	Mankato Independent School District #77 (Formerly
	Blue Earth County Independent School District #10)
	4.125% 2/1/22			1,000,000		1,111,640
	Metropolitan Council Minneapolis-St. Paul Metropolitan
	Area Waste Water Treatment Series C
	5.00% 3/1/16			560,000		671,580
	5.00% 3/1/28			1,000,000		1,097,260
	Minneapolis Various Purposes 4.00% 12/1/23			1,500,000		1,614,720
	Osseo Independent School District #279 Series A
	5.00% 2/1/21 (AGM)			1,500,000		1,582,455
	Robbinsdale Independent School District #281
	Series A 5.00% 2/1/20			1,850,000		2,276,000
	South Washington County Independent School District #833
	Series A 4.00% 2/1/22			750,000		818,445
	Series B 5.00% 2/1/16 (AGM)			1,560,000		1,663,381
	St. Paul Independent School District #625 (School Building)
	Series A 4.00% 2/1/15			1,020,000		1,150,366
	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		1,152,380
						28,143,170
§Pre-Refunded/Escrowed to Maturity Bonds – 9.01%
	Hennepin County Series B 4.75% 12/1/14-10			1,000,000		1,011,330
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			1,500,000		1,676,025
	(Fairview Health Services) Series A 5.625% 5/15/32-12			1,750,000		1,925,980

36

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	Minneapolis -St. Paul Metropolitan Airports Commission
	Revenue Series C 5.125% 1/1/20-11 (FGIC)		$	750,000	$	762,233
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series C 5.00% 3/1/18-15			1,000,000		1,181,970
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B 5.50% 7/1/25-14			1,500,000		1,756,605
	University of Minnesota Series A
	5.75% 7/1/16			1,000,000		1,222,430
	5.75% 7/1/18			400,000		500,996
						10,037,569
Special Tax Revenue Bonds – 6.60%
	Minneapolis Art Center Facilities Revenue
	(Walker Art Center Project) 5.125% 7/1/21			2,250,000		2,324,700
@	Minneapolis Tax Increment Revenue
	(Ivy Tower Project) 5.50% 2/1/22			415,000		328,730
	Minnesota 911 Revenue (Public Safety Radio
	Communication System Project)
	4.00% 6/1/14 (ASSURED GTY)			1,370,000		1,530,550
	4.25% 6/1/18 (ASSURED GTY)			1,170,000		1,351,104
	4.50% 6/1/25 (ASSURED GTY)			1,000,000		1,108,550
	Puerto Rico Sales Tax Financing Sales Tax Revenue First
	Subordinate Series A
	6.125% 8/1/29			250,000		265,160
	Ω(Capital Appreciation) 6.75% 8/1/32			510,000		440,722
						7,349,516
State General Obligation Bonds – 3.76%
	Minnesota State
	Refunding 5.00% 8/1/15			2,000,000		2,382,120
	Various Purposes Series A 5.00% 12/1/21			1,000,000		1,222,570
	Puerto Rico Commonwealth Public Improvement
	Un-Refunded Balance Series B 5.00% 7/1/35			575,000		581,337
						4,186,027
Transportation Revenue Bonds – 3.39%
	Minneapolis-St. Paul Metropolitan Airports Commission
	5.00% 1/1/13 (AMT)			500,000		540,510
	Refunding Series 14 5.50% 1/1/11 (AMT)			750,000		761,513
	Refunding Series B 5.00% 1/1/22 (AMT)			1,000,000		1,087,580
	Series A 5.00% 1/1/28			1,250,000		1,384,487
						3,774,090

37

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 2.92%
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series D 5.00% 3/1/14		$	1,500,000	$	1,729,156
	St. Paul Sewer Revenue Series D 5.00% 12/1/20			1,275,000		1,519,048
						3,248,204
Total Municipal Bonds (cost $102,972,266)						110,066,862
				Number of shares
Short-Term Investments – 0.61%
Money Market Instrument – 0.16%
	Federated Minnesota Municipal Cash Trust			183,602		183,602
						183,602
				Principal amount
Variable Rate Demand Note – 0.45%
•	Brooklyn Center Revenue Refunding (Brookdale II Project)
	0.25% 12/1/14 (LOC – U.S. Bank N.A.)		$	500,000		500,000
						500,000
Total Short-Term Investments (cost $683,602)						683,602
Total Value of Securities – 99.43%
	(cost $103,655,868)					110,750,464
Receivables and Other Assets
	Net of Liabilities – 0.57%					636,517
Net Assets Applicable to 9,858,986
	Shares Outstanding – 100.00%				$	111,386,981
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class A ($96,567,614 / 8,549,679 Shares)					$11.29
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class B ($170,640 / 15,064 Shares)					$11.33
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class C ($14,648,727 / 1,294,243 Shares)					$11.32

38

Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	105,025,082
Undistributed net investment income		2,522
Accumulated net realized loss on investments		(735,219	)
Net unrealized appreciation of investments		7,094,596
Total net assets	$	111,386,981

@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $328,730, which represented 0.30% 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 August 31, 2010. Interest rates reset periodically.
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
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 Section 8
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)	$	11.29
Sales charge (2.75% of offering price) (B)		0.32
Offering price	$	11.61

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

39

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund	August 31, 2010

		Principal amount				Value
Municipal Bonds – 98.45%
Corporate-Backed Revenue Bonds – 4.22%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26		$	1,700,000	$	1,664,504
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21			1,750,000		1,801,100
	Puerto Rico Ports Authority Revenue Special Facilities
	(American Airlines) Series A 6.25% 6/1/26 (AMT)			1,390,000		1,192,968
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27			1,750,000		1,757,403
						6,415,975
Education Revenue Bonds – 7.58%
	Baytown Township Lease Revenue
	(St. Croix Preparatory Academy) Series A 7.00% 8/1/38			500,000		511,525
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/23			700,000		716,177
	Series 6-J1 5.00% 5/1/36			1,000,000		1,006,550
	(Bethel University) Series 6-R 5.50% 5/1/37			1,500,000		1,510,680
	(Macalester College) Series 6-P 4.25% 3/1/32			1,000,000		1,011,610
	(St. John’s University) Series 6-U 4.75% 10/1/33			825,000		848,678
	(St. Olaf) Series 6-O
	4.50% 10/1/32			1,000,000		1,002,290
	5.00% 10/1/22			1,000,000		1,103,990
	(University of St. Thomas)
	Series 6-I 5.00% 4/1/23			1,500,000		1,636,455
	Series 7-A 5.00% 10/1/39			1,000,000		1,057,150
	University of Minnesota Series A 5.125% 4/1/34			1,000,000		1,102,170
						11,507,275
Electric Revenue Bonds – 7.08%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25			1,000,000		1,071,670
	Minnesota Municipal Power Agency Electric Revenue
	Series A 5.00% 10/1/34			2,750,000		2,830,630
	Northern Municipal Power Agency Electric System Revenue
	Refunding Series A
	5.00% 1/1/16 (ASSURED GTY)			1,200,000		1,395,072
	5.00% 1/1/18 (ASSURED GTY)			1,000,000		1,176,790

40

		Principal amount				Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Puerto Rico Electric Power Authority Revenue
	Series XX 5.25% 7/1/40		$	1,665,000	$	1,745,703
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A 5.25% 1/1/16 (AMBAC)			1,000,000		1,176,340
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 5.00% 1/1/30 (NATL-RE)			1,335,000		1,363,796
						10,760,001
Healthcare Revenue Bonds – 33.87%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.50% 2/1/24			700,000		700,616
	Anoka County Housing & Redevelopment Authority
	Revenue Series A 6.875% 5/1/40			1,000,000		1,031,910
	Apple Valley Economic Development Authority
	Health Care Revenue
	(Augustanna Home St. Paul Project)
	Series A 5.80% 1/1/30			1,000,000		1,008,570
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/31 (RADIAN)			1,350,000		1,343,048
	Refunding 5.00% 9/1/20			1,150,000		1,207,684
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30			2,000,000		2,069,540
	Detroit Lakes Housing & Health Facilities
	Revenue Refunding (Mankato Lutheran Homes)
	Series D 5.50% 8/1/21			500,000		500,095
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project)
	5.00% 4/1/20			1,100,000		1,129,271
	5.00% 4/1/31			1,965,000		1,910,766
	Mahtomedi Senior Housing Revenue Refunding
	(St. Andrews Village Project) 5.75% 12/1/40			1,000,000		912,190
	Maple Grove Health Care Facilities Revenue
	(North Memorial Health Care) 5.00% 9/1/35			1,880,000		1,882,463
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital)
	5.25% 5/1/28			2,200,000		2,273,501
	5.25% 5/1/37			1,000,000		1,014,520

41

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

		Principal amount				Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28		$	1,900,000	$	2,203,999
	Series B 6.50% 11/15/38 (ASSURED GTY)			250,000		288,138
	Series D 5.00% 11/15/34 (AMBAC)			3,000,000		3,056,189
	Minneapolis-St. Paul Housing & Redevelopment Authority
	(Health Partners Obligation Group Project) 6.00% 12/1/17			525,000		561,125
	Minnesota Agricultural & Economic Development Board
	Revenue (Benedictine Health Systems) 5.75% 2/1/29			1,000,000		960,040
	Moorhead Economic Development Authority Multifamily
	Housing Revenue Refunding
	(Eventide Project) Series A 5.15% 6/1/29			550,000		511,071
	Northfield Hospital Revenue 5.375% 11/1/31			1,000,000		1,004,350
	Oak Park Heights Housing Revenue
	(Oakgreen Commons Project) 7.00% 8/1/45			1,500,000		1,524,510
	Owatonna Senior Housing Revenue
	(Senior Living Project) Series A
	5.80% 10/1/29			400,000		394,980
	6.00% 4/1/41			1,250,000		1,197,688
	Rochester Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A
	6.875% 12/1/29			1,000,000		1,056,940
	7.375% 12/1/41			375,000		399,098
	Sartell Health Care Facilities Revenue
	(Country Manor Campus) Series A 6.25% 9/1/36			925,000		940,697
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center) 5.25% 9/1/34			1,000,000		991,910
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.50% 5/1/39 (ASSURED GTY)			1,500,000		1,604,565
	Series A 5.125% 5/1/30			1,125,000		1,189,496
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.75% 7/1/39			1,500,000		1,540,605
	Series C 5.50% 7/1/23			1,000,000		1,067,040
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project) 5.25% 5/15/36			1,000,000		983,290
	(Senior Carondelet Village Project) Series A 6.00% 8/1/42			770,000		776,445

42

		Principal amount				Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority Health Care
	Revenue (Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)		$	1,900,000	$	2,127,525
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project)
	6.00% 11/15/25			1,000,000		1,012,800
	6.00% 11/15/30			1,000,000		999,890
	Series A 5.70% 11/1/15			705,000		705,275
	Series B 5.85% 11/1/17			250,000		250,108
	St. Paul Housing & Redevelopment Authority Multifamily
	Housing Revenue Refunding
	(Marion Center Project) Series A 5.375% 5/1/43			1,000,000		883,430
	Stillwater Health Care Revenue
	(Health System Obligation Group)
	5.00% 6/1/25			2,000,000		2,051,840
	5.00% 6/1/35			1,000,000		1,003,700
@	Twin Valley Congregate Housing Revenue
	(Living Options Project) 5.95% 11/1/28			1,825,000		1,743,368
	Winona Health Care Facilities Revenue Refunding
	(Winona Health Obligation Group) 5.15% 7/1/31			1,500,000		1,437,045
						51,451,331
Housing Revenue Bonds – 11.25%
	Chanhassen Multifamily Housing Revenue Refunding
	(Heritage Park Apartments Project)
	6.20% 7/1/30 (FHA) (AMT) (HUD)			300,000		300,336
	Chaska Multifamily Housing Revenue (West Suburban
	Housing Partners Project) 5.875% 3/1/31 (AMT)			1,000,000		830,320
	Minneapolis Multifamily Housing Revenue
	(Grant Street Apartments Project) Refunding
	Series A 7.25% 11/1/29			2,085,000		2,109,144
	(Olson Townhomes Project) 6.00% 12/1/19 (AMT)			1,265,000		1,265,822
	(Trinity Apartments) Refunding
	Series A 6.75% 5/1/21 (HUD)			575,000		581,756
	Minneapolis-St. Paul Housing Finance Board Single
	Family Mortgage (City Living Project)
	Series A-2 5.00% 12/1/38 (GNMA) (FNMA) (AMT)			782,218		795,305

43

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

		Principal amount				Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	Minnesota Housing Finance Agency
	(Rental Housing)
	Series A 4.875% 8/1/24 (AMT)		$	585,000	$	590,751
	Series A-1 5.00% 8/1/40 (AMT)			2,265,000		2,278,635
	(Residential Housing)
	Series G 5.00% 7/1/36 (AMT)			1,000,000		1,007,180
	Series I 4.85% 7/1/38 (AMT)			1,145,000		1,144,931
	Series L 5.10% 7/1/38 (AMT)			1,500,000		1,520,145
	Series M 4.875% 7/1/37 (AMT)			2,500,000		2,505,075
	(Single Family Mortgage) Series E 6.25% 1/1/23 (AMT)			5,000		5,007
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue (Shelby Grotto Housing Project)
	5.50% 9/20/44 (AMT) (GNMA) (FHA)			750,000		769,433
	Stillwater Multifamily Housing Revenue
	(Orleans Homes Project) 5.50% 2/1/42 (AMT)			750,000		623,280
@	Washington County Housing & Redevelopment Authority
	Revenue Refunding (Briar Pond Project)
	Series B 7.125% 8/20/34			800,000		761,712
						17,088,832
Lease Revenue Bonds – 2.76%
	Hibbing Economic Development Authority Revenue
	(Public Project - Hibbing Lease Obligation) 6.40% 2/1/12			275,000		275,242
	St. Paul Port Authority Lease Revenue (Robert Street Office
	Building Project) Series 3-11 5.00% 12/1/27			1,000,000		1,048,940
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt) 5.00% 8/1/29			2,660,000		2,863,383
						4,187,565
Local General Obligation Bonds – 11.21%
	Chaska Independent School District #112
	Series A 4.50% 2/1/28 (NATL-RE)			1,000,000		1,058,470
	Farmington Independent School District #192
	Series B 5.00% 2/1/27 (AGM)			1,000,000		1,077,190
	Foley Independent School District #51 (School Building)
	Refunding Series A 5.00% 2/1/21			1,105,000		1,246,020
	Hopkins Independent School District #270 Facilities
	5.00% 2/1/26 (NATL-RE)			1,055,000		1,140,972
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)			1,000,000		1,050,340

44

		Principal amount				Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Metropolitan Council Minneapolis-St. Paul Metropolitan
	Area Waste Water Treatment
	Series B 5.00% 12/1/21		$	500,000	$	573,115
	Series C 5.00% 3/1/28			1,000,000		1,097,260
	Minneapolis Various Purposes 4.00% 12/1/23			1,500,000		1,614,720
	Moorhead Improvement Series B 5.00% 2/1/33 (NATL-RE)			750,000		777,833
	Perham Disposal System 6.00% 5/1/22 (AMT)			1,500,000		1,515,690
	South Washington County Independent
	School District #833 Series A 4.75% 2/1/27			1,500,000		1,645,635
	Todd Morrison Cass & Wadena Counties United
	Hospital District (Health Care Facilities-Lakewood)
	5.00% 12/1/21			610,000		652,529
	5.125% 12/1/24			205,000		217,374
	5.25% 12/1/26			1,540,000		1,632,369
	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		1,728,570
						17,028,087
§Pre-Refunded/Escrowed to Maturity Bonds – 7.23%
	Andover Economic Development Authority Public Facilities
	Lease Revenue (Andover Community Center)
	5.20% 2/1/34-14			1,000,000		1,110,090
	Duluth Economic Development Authority Health
	Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/28-14			1,000,000		1,157,970
	5.25% 2/15/33-14			2,250,000		2,605,433
	Minneapolis Community Development Agency
	Supported Development Revenue
	(Limited Tax Common Bond Fund)
	Series G-3 5.45% 12/1/31-11			1,000,000		1,062,570
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			1,500,000		1,676,025
	(Fairview Health Services) Series A 5.625% 5/15/32-12			2,000,000		2,201,120
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B 5.25% 7/1/30-14			1,000,000		1,161,680
						10,974,888

45

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

		Principal amount				Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 7.69%
	Hennepin County Sales Tax Revenue
	(First Lien - Ball Park Project) Series B 5.00% 12/15/24		$	1,000,000	$	1,150,220
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/20			1,500,000		1,762,381
	5.00% 12/15/24			1,000,000		1,144,530
	Minneapolis Supported Development Revenue
	(Limited Tax Common Bond Fund)
	Series 2-A 5.00% 6/1/28 (AMT)			1,170,000		1,177,909
	Minneapolis Tax Increment Revenue
	@(Ivy Tower Project) 5.70% 2/1/29			785,000		563,897
	(St. Anthony Falls Project) 5.65% 2/1/27			500,000		474,360
	Minnesota 911 Revenue (Public Safety Radio Commission
	System Project) 5.00% 6/1/24 (ASSURED GTY)			1,000,000		1,134,160
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series B 5.00% 7/1/46			800,000		800,584
	Puerto Rico Sales Tax Financing Sales Tax Revenue
	First Subordinate Series A 5.75% 8/1/37			790,000		846,848
	St. Paul Port Authority (Brownsfields Redevelopment Tax)
	Series 2 5.00% 3/1/37			1,500,000		1,581,165
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien Matching Fund Loan Note)
	Series A 5.25% 10/1/24			1,000,000		1,042,420
						11,678,474
State General Obligation Bonds – 1.64%
	Minnesota State 5.00% 8/1/21 (AGM)			1,250,000		1,393,062
	Puerto Rico Commonwealth Public Improvement
	Refunding Series C 6.00% 7/1/39			1,010,000		1,096,345
						2,489,407
Transportation Revenue Bond – 1.34%
	Minneapolis - St. Paul Metropolitan Airports Commission
	Revenue Series A 5.00% 1/1/28 (NATL-RE)			2,000,000		2,041,780
						2,041,780
Water & Sewer Revenue Bonds – 2.58%
	Minnesota Public Facilities Authority Clean Water Revenue
	Series B 5.00% 3/1/18			2,000,000		2,450,900
	St. Paul Sewer Revenue Series D 5.00% 12/1/19			1,220,000		1,470,429
						3,921,329
	Total Municipal Bonds (cost $143,274,492)					149,544,944

46

		Number of shares		Value
Short-Term Investments – 0.60%
Money Market Instrument – 0.40%
	Federated Minnesota Municipal Cash Trust	600,795	$	600,795
				600,795
		Principal amount
Variable Rate Demand Note – 0.20%
•	Minneapolis-St. Paul Housing & Redevelopment Authority
	Health Care Revenue (Allina Health System) Series B-1
	0.26% 11/15/35 (LOC – JP Morgan Chase Bank)	$300,000		300,000
				300,000
Total Short-Term Investments (cost $900,795)				900,795
Total Value of Securities – 99.05%
	(cost $144,175,287)			150,445,739
Receivables and Other Assets
	Net of Liabilities – 0.95%			1,449,334
Net Assets Applicable to 14,177,234
	Shares Outstanding – 100.00%		$	151,895,073
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class A ($119,038,255 / 11,115,048 Shares)				$10.71
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class B ($4,130,374 / 385,136 Shares)				$10.72
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class C ($28,726,444 / 2,677,050 Shares)				$10.73
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)			$	149,800,038
Undistributed net investment income				37
Accumulated net realized loss on investments				(4,175,454		)
Net unrealized appreciation of investments				6,270,452
Total net assets			$	151,895,073

47

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

§	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 August 31, 2010, the aggregate amount of illiquid securities was $3,068,977, which represented 2.02% 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 August 31, 2010. Interest rates reset periodically.

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 Section 8
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)	$	10.71
Sales charge (4.50% of offering price) (B)		0.50
Offering price	$	11.21

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

48

Statements of operations

Year Ended August 31, 2010

				Delaware			Delaware
	Delaware			Tax-Free			Minnesota
	Tax-Free			Minnesota			High-Yield
	Minnesota			Intermediate			Municipal
	Fund			Fund			Bond Fund
Investment Income:
Interest	$	29,739,974		$	4,205,202		$	7,181,048
Expenses:
Management fees		3,333,077			495,572			797,746
Distribution expenses – Class A		1,429,728			214,424			284,175
Distribution expenses – Class B		81,800			1,751			46,021
Distribution expenses – Class C		363,559			130,038			266,649
Dividend disbursing and transfer agent
fees and expenses		296,404			66,847			102,947
Accounting and administration expenses		245,393			39,439			57,721
Legal fees		64,167			17,739			18,477
Reports and statements to shareholders		55,532			11,542			16,181
Registration fees		47,503			27,906			8,605
Audit and tax		42,494			16,232			18,419
Trustees’ fees		37,342			5,667			8,316
Insurance fees		24,021			3,573			5,535
Dues and services		20,772			3,668			4,926
Pricing fees		14,101			7,264			10,069
Custodian fees		10,832			1,974			2,756
Consulting fees		9,130			1,420			2,118
Trustees’ expenses		2,688			413			583
		6,078,543			1,045,469			1,651,244
Less fees waived		(34,681	)		(34,611	)		(65,807	)
Less waived distribution expenses – Class A		—			(85,694	)		—
Less expense paid indirectly		(357	)		(73	)		(115	)
Total operating expenses		6,043,505			925,091			1,585,322
Net Investment Income		23,696,469			3,280,111			5,595,726

50

			Delaware		Delaware
	Delaware		Tax-Free		Minnesota
	Tax-Free		Minnesota		High-Yield
	Minnesota		Intermediate		Municipal
	Fund		Fund		Bond Fund
Net Realized and Unrealized Gain
on Investments:
Net realized gain on investments	$	1,833,214	$	269,806	$	498,563
Net change in unrealized appreciation/
depreciation of investments		25,429,642		4,114,787		10,746,599
Net Realized and Unrealized Gain
on Investments		27,262,856		4,384,593		11,245,162
Net Increase in Net Assets
Resulting from Operations	$	50,959,325	$	7,664,704	$	16,840,888

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

51

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

	Year Ended
	8/31/10			8/31/09
Increase in Net Assets from Operations:
Net investment income	$	23,696,469		$	23,410,864
Net realized gain on investments		1,833,214			398,012
Net change in unrealized
appreciation/depreciation of investments		25,429,642			4,329,928
Net increase in net assets resulting from operations		50,959,325			28,138,804
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(22,294,999	)		(22,065,961	)
Class B		(258,145	)		(336,274	)
Class C		(1,147,610	)		(964,553	)
Net realized gain on investments:
Class A		—			(2,257,248	)
Class B		—			(43,630	)
Class C		—			(114,457	)
		(23,700,754	)		(25,782,123	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		46,342,217			42,839,664
Class B		307			137,140
Class C		7,044,823			9,478,506
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		14,438,208			15,962,228
Class B		171,205			264,058
Class C		866,714			810,983
		68,863,474			69,492,579

52

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(58,794,667	)	$	(76,315,603	)
Class B		(2,806,931	)		(2,471,909	)
Class C		(4,726,887	)		(4,080,940	)
		(66,328,485	)		(82,868,452	)
Increase (decrease) in net assets derived from
capital share transactions		2,534,989			(13,375,873	)
Net Increase (Decrease) in Net Assets		29,793,560			(11,019,192	)
Net Assets:
Beginning of year		603,072,505			614,091,697
End of year	$	632,866,065		$	603,072,505
Distributions in excess of
net investment income	$	(144,194	)	$	(144,872	)

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

53

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,280,111		$	2,618,389
Net realized gain (loss) on investments		269,806			(536,519	)
Net change in unrealized
appreciation/depreciation of investments		4,114,787			1,614,867
Net increase in net assets resulting from operations		7,664,704			3,696,737
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(2,934,175	)		(2,352,412	)
Class B		(4,488	)		(16,198	)
Class C		(334,083	)		(247,432	)
		(3,272,746	)		(2,616,042	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		26,843,282			25,615,997
Class B		71,813			23,351
Class C		5,693,861			5,125,080
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,875,774			1,512,023
Class B		4,120			12,783
Class C		241,743			170,452
		34,730,593			32,459,686

54

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(13,988,840	)	$	(8,485,220	)
Class B		(231,461	)		(608,734	)
Class C		(3,128,847	)		(1,331,367	)
		(17,349,148	)		(10,425,321	)
Increase in net assets derived from
capital share transactions		17,381,445			22,034,365
Net Increase in Net Assets		21,773,403			23,115,060
Net Assets:
Beginning of year		89,613,578			66,498,518
End of year	$	111,386,981		$	89,613,578
Undistributed net investment income	$	2,522		$	2,522

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

55

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,595,726		$	5,743,736
Net realized gain (loss) on investments		498,563			(3,479,426	)
Net change in unrealized
appreciation/depreciation of investments		10,746,599			509,407
Net increase in net assets resulting from operations		16,840,888			2,773,717
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(4,546,424	)		(4,628,073	)
Class B		(149,738	)		(192,230	)
Class C		(866,306	)		(911,013	)
		(5,562,468	)		(5,731,316	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		14,818,477			15,056,968
Class B		157			73,695
Class C		4,061,927			2,660,111
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,929,971			2,988,359
Class B		104,474			121,542
Class C		629,003			647,117
		22,544,009			21,547,792

56

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(15,506,059	)	$	(24,926,201	)
Class B		(1,328,942	)		(992,296	)
Class C		(2,778,753	)		(6,740,684	)
		(19,613,754	)		(32,659,181	)
Increase (decrease) in net assets derived from
capital share transactions		2,930,255			(11,111,389	)
Net Increase (Decrease) in Net Assets		14,208,675			(14,068,988	)
Net Assets:
Beginning of year		137,686,398			151,755,386
End of year	$	151,895,073		$	137,686,398
Undistributed net investment income	$	37		$	97

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

57

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 return1

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 expenses2

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 indirectly2

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 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, which are an integral part of the financial statements.

58

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$12.180		$12.120		$12.170		$12.490		$12.690
0.484		0.474		0.495		0.511		0.511
0.550		0.107		(0.041	)	(0.313	)	(0.172	)
1.034		0.581		0.454		0.198		0.339
(0.484	)	(0.473	)	(0.502	)	(0.507	)	(0.513	)
—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
(0.484	)	(0.521	)	(0.504	)	(0.518	)	(0.539	)
$12.730		$12.180		$12.120		$12.170		$12.490
8.66%		5.04%		3.77%		1.58%		2.78%
$586,651		$559,393		$574,914		$578,194		$381,720
0.93%		0.92%		0.93%		0.94%		0.93%
—		0.01%		0.18%		0.29%		0.26%
0.93%		0.93%		1.11%		1.23%		1.19%
0.93%		0.94%		0.93%		0.96%		0.94%
—		0.01%		0.18%		0.29%		0.26%
0.93%		0.95%		1.11%		1.25%		1.20%
3.89%		4.03%		4.05%		4.12%		4.11%
3.89%		4.01%		4.05%		4.10%		4.10%
20%		20%		17%		7%		13%

2 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 Notes 1 and 8 in “Notes to financial statements.”

59

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 return1

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 expenses2

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 indirectly2

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 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, which are an integral part of the financial statements.

60

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$12.190		$12.130		$12.180		$12.500		$12.700
0.391		0.386		0.403		0.419		0.418
0.550		0.107		(0.041	)	(0.314	)	(0.172	)
0.941		0.493		0.362		0.105		0.246
(0.391	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)
—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
(0.391	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)
$12.740		$12.190		$12.130		$12.180		$12.500
7.85%		4.26%		2.99%		0.82%		2.01%
$7,234		$9,506		$11,593		$15,674		$11,354
1.68%		1.67%		1.68%		1.69%		1.68%
—		0.01%		0.18%		0.29%		0.26%
1.68%		1.68%		1.86%		1.98%		1.94%
1.68%		1.69%		1.68%		1.71%		1.69%
—		0.01%		0.18%		0.29%		0.26%
1.68%		1.70%		1.86%		2.00%		1.95%
3.14%		3.28%		3.30%		3.37%		3.36%
3.14%		3.26%		3.30%		3.35%		3.35%
20%		20%		17%		7%		13%

2 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 Notes 1 and 8 in “Notes to financial statements.”

61

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 return1

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 expenses2

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 indirectly2

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 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, which are an integral part of the financial statements.

62

Year Ended
	8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
	$12.220		$12.160		$12.200		$12.530		$12.720
	0.392		0.386		0.403		0.418		0.418
	0.560		0.107		(0.031	)	(0.323	)	(0.162	)
	0.952		0.493		0.372		0.095		0.256
	(0.392	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)
	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
	(0.392	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)
	$12.780		$12.220		$12.160		$12.200		$12.530
	7.91%		4.25%		3.06%		0.73%		2.08%
	$38,981		$34,174		$27,585		$26,830		$15,125
	1.68%		1.67%		1.68%		1.69%		1.68%
	—		0.01%		0.18%		0.29%		0.26%
	1.68%		1.68%		1.86%		1.98%		1.94%
	1.68%		1.69%		1.68%		1.71%		1.69%
	—		0.01%		0.18%		0.29%		0.26%
	1.68%		1.70%		1.86%		2.00%		1.95%
	3.14%		3.28%		3.30%		3.37%		3.36%
	3.14%		3.26%		3.30%		3.35%		3.35%
	20%		20%		17%		7%		13%

2 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 Notes 1 and 8 in “Notes to financial statements.”

63

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 return1

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 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, which are an integral part of the financial statements.

64

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.820		$10.720		$10.610		$10.860		$11.010
0.376		0.384		0.414		0.445		0.429
0.469		0.100		0.110		(0.250	)	(0.150	)
0.845		0.484		0.524		0.195		0.279
(0.375	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)
(0.375	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)
$11.290		$10.820		$10.720		$10.610		$10.860
7.96%		4.67%		5.00%		1.80%		2.62%
$96,568		$78,021		$58,465		$48,477		$48,297
0.82%		0.75%		0.75%		0.76%		0.75%
0.96%		0.97%		0.95%		1.00%		0.97%
3.42%		3.62%		3.83%		4.11%		3.96%
3.28%		3.40%		3.63%		3.87%		3.74%
22%		12%		27%		15%		11%

65

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 return1

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

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

66

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.850		$10.750		$10.640		$10.890		$11.040
0.284		0.295		0.322		0.353		0.337
0.479		0.100		0.110		(0.250	)	(0.150	)
0.763		0.395		0.432		0.103		0.187
(0.283	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
(0.283	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
$11.330		$10.850		$10.750		$10.640		$10.890
7.14%		3.79%		4.10%		0.94%		1.75%
$170		$317		$908		$1,713		$1,993
1.67%		1.60%		1.60%		1.61%		1.60%
1.71%		1.72%		1.70%		1.75%		1.72%
2.57%		2.77%		2.98%		3.26%		3.11%
2.53%		2.65%		2.88%		3.12%		2.99%
22%		12%		27%		15%		11%

67

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 return1

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

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

68

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.840		$10.740		$10.630		$10.880		$11.030
0.283		0.295		0.322		0.353		0.337
0.479		0.100		0.110		(0.250	)	(0.150	)
0.762		0.395		0.432		0.103		0.187
(0.282	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
(0.282	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
$11.320		$10.840		$10.740		$10.630		$10.880
7.14%		3.78%		4.10%		0.94%		1.75%
$14,649		$11,276		$7,126		$4,936		$5,162
1.67%		1.60%		1.60%		1.61%		1.60%
1.71%		1.72%		1.70%		1.75%		1.72%
2.57%		2.77%		2.98%		3.26%		3.11%
2.53%		2.65%		2.88%		3.12%		2.99%
22%		12%		27%		15%		11%

69

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 return1

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

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

70

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$9.910		$10.000		$10.180		$10.530		$10.610
0.415		0.422		0.418		0.430		0.445
0.798		(0.091	)	(0.180	)	(0.350	)	(0.082	)
1.213		0.331		0.238		0.080		0.363
(0.413	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)
(0.413	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)
$10.710		$ 9.910		$10.000		$10.180		$10.530
12.46%		3.63%		2.35%		0.71%		3.54%
$119,038		$107,951		$116,999		$109,807		$87,504
0.93%		0.89%		0.89%		0.90%		0.89%
0.98%		0.97%		0.97%		1.00%		1.00%
4.02%		4.49%		4.11%		4.09%		4.26%
3.97%		4.41%		4.03%		3.99%		4.15%
11%		12%		10%		10%		4%

71

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 return1

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

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

72

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$9.920		$10.010		$10.190		$10.550		$10.630
0.338		0.352		0.341		0.351		0.367
0.798		(0.091	)	(0.179	)	(0.360	)	(0.082	)
1.136		0.261		0.162		(0.009	)	0.285
(0.336	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)
(0.336	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)
$10.720		$9.920		$10.010		$10.190		$10.550
11.62%		2.86%		1.58%		(0.13%	)	2.77%
$4,130		$4,995		$5,907		$7,334		$9,578
1.68%		1.64%		1.64%		1.65%		1.64%
1.73%		1.72%		1.72%		1.75%		1.75%
3.27%		3.74%		3.36%		3.34%		3.51%
3.22%		3.66%		3.28%		3.24%		3.40%
11%		12%		10%		10%		4%

73

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 return1

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

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

74

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$9.930		$10.020		$10.200		$10.550		$10.630
0.338		0.352		0.342		0.351		0.367
0.798		(0.091	)	(0.181	)	(0.350	)	(0.082	)
1.136		0.261		0.161		0.001		0.285
(0.336	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)
(0.336	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)
$10.730		$9.930		$10.020		$10.200		$10.550
11.61%		2.85%		1.58%		(0.04%	)	2.76%
$28,727		$24,740		$28,849		$26,016		$20,516
1.68%		1.64%		1.64%		1.65%		1.64%
1.73%		1.72%		1.72%		1.75%		1.75%
3.27%		3.74%		3.36%		3.34%		3.51%
3.22%		3.66%		3.28%		3.24%		3.40%
11%		12%		10%		10%		4%

75

Notes to financial statements
Delaware Minnesota Municipal Bond Funds	August 31, 2010

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.

76

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.

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. These securities will generally be categorized as Level 2 investments. Open-end investment companies are valued at their published net asset value. These securities will generally be categorized as Level 1 investments. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. These securities will generally be categorized as Level 3 investments.

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, 2007 – August 31, 2010), 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.

77

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

1. Significant Accounting Policies (continued)

Interest and Related Expenses — Interest and related expenses include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees from the Funds’ participation in inverse floater programs where a Fund has transferred its own bonds to a trust that issues floating rate securities with an aggregate principal amount equal to the principal of the transferred bonds. In conveyance of the bond, the Funds receive the inverse floating rate securities and cash from the trust. As a result of certain rights retained by the Funds, the transfer of the bond is not considered a sale, but rather a form of financing for accounting purposes whereby the cash received is recorded as a liability and interest expense is recorded based on the interest rate of the floating rate securities. Remarketing fees, liquidity fees, and trustees’ expenses are recorded on the accrual basis. There were no interest and related expenses for the year ended August 31, 2010.

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. Such dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the year ended August 31, 2010.

The Funds may receive earnings credits from their transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statement of operations with the corresponding offset shown as “expense paid indirectly.” For the year ended August 31, 2010, the Funds earned the following under this agreement:

	Delaware Tax-Free	Delaware Minnesota
Delaware Tax-Free	Minnesota	High-Yield Municipal
Minnesota Fund	Intermediate Fund	Bond Fund
$357	$73	$115

78

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) 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 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

79

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

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

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides 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 year ended August 31, 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
$30,831	$4,956	$7,252

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.

At August 31, 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		$	287,984		$	46,652		$	70,763
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC			13,066			2,579			3,816
Distribution fees payable
to DDLP			162,547			24,485			52,545
Other expenses payable to
DMC and affiliates*			17,777			3,810			5,434

*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.

80

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 year ended August 31, 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
$26,635	$4,225	$5,824

For the year ended August 31, 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
$87,187	$18,674	$26,494

For the year ended August 31, 2010 DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, respectively, 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	$	0	$	0	$	0
Class B		1,355		0		3,969
Class C		1,877		1,972		471

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 year ended August 31, 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	$129,078,299	$40,066,852	$19,834,598
Sales	120,700,410	21,747,149	16,114,275

81

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

3. Investments (continued)

At August 31, 2010, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes 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		$	592,553,572			$	103,650,005			$	144,024,018
Aggregate unrealized appreciation		$	43,544,336			$	7,195,034			$	7,691,438
Aggregate unrealized depreciation			(949,514	)			(94,575	)			(1,269,717	)
Net unrealized appreciation		$	42,594,822			$	7,100,459			$	6,421,721

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

Level 1	–	inputs are quoted prices in active markets for identical investments
Level 2	–	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3	–	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments.)

82

The following table summarizes the valuation of the Funds’ investments by fair value hierarchy levels as of August 31, 2010:

	Delaware Tax-Free Minnesota Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	634,425,280	$	634,425,280
Short-Term		723,114		—		723,114
Total	$	723,114	$	634,425,280	$	635,148,394

	Delaware Tax-Free Minnesota Intermediate Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	110,066,862	$	110,066,862
Short-Term		183,602		500,000		683,602
Total	$	183,602	$	110,566,862	$	110,750,464

	Delaware Minnesota High-Yield Municipal Bond Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	149,544,944	$	149,544,944
Short-Term		600,795		300,000		900,795
Total	$	600,795	$	149,844,944	$	150,445,739

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

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduced new disclosure requirements and clarified 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’ fiscal year ending August 31, 2010 and interim periods therein. During the year ended August 31, 2010, there were no transfers between Level 1 investments and Level 2 investments and Level 3 investments that had a material impact to the Funds.

83

Notes to financial statements
Delaware Minnesota Municipal Bond 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 years ended August 31, 2010 and 2009 was as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Year Ended 8/31/10
Ordinary income		$	45,305		$	17,672		$	9,495
Tax-exempt income			23,655,449			3,255,074			5,552,973
Total		$	23,700,754		$	3,272,746		$	5,562,468
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

5. Components of Net Assets on a Tax Basis

As of August 31, 2010 the 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		$	588,778,170			$	105,025,082			$	149,800,038
Distributions payable			(598,987	)			(89,337	)			(138,105	)
Undistributed ordinary income			971,790				—				—
Undistributed long-term capital gain			665,477				—				—
Undistributed tax-exempt income			454,793				91,859				138,142
Capital loss carryforwards			—				(741,082	)			(4,326,723	)
Unrealized appreciation of investments			42,594,822				7,100,459				6,421,721
Net assets		$	632,866,065			$	111,386,981			$	151,895,073

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

84

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 and expiration of capital loss carryforwards. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2010 the Funds recorded the following reclassifications:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Undistributed net investment income		$	4,963			$	(7,365	)		$	(33,318	)
Accumulated realized gain			(4,963	)			7,365				90,839
Paid-in capital			—				—				(57,521	)

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. In 2010, $57,521 of capital loss carryforwards expired for the Delaware Minnesota High-Yield Municipal Bond Fund. In 2010, $34,687 of capital loss carryforwards was utilized for the Delaware Tax-Free Minnesota Intermediate Fund. Capital loss carryforwards remaining at August 31, 2010 will expire as follows:

	Delaware Tax-Free			Delaware Minnesota
	Minnesota			High-Yield Municipal
Year of Expiration	Intermediate Fund			Bond Fund
2011		$	216,009		$	243,334
2012			—			684,248
2014			81,340			—
2015			109,745			96,079
2016			—			198,826
2017			333,988			129,724
2018			—			2,974,512
Total		$	741,082		$	4,326,723

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Notes to financial statements
Delaware Minnesota Municipal Bond Funds

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware				Delaware Tax-Free				Delaware Minnesota
	Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
	Year Ended				Year Ended				Year Ended
	8/31/10		8/31/09		8/31/10		8/31/09		8/31/10		8/31/09
Shares sold:
Class A	3,733,307		3,674,457		2,446,624		2,423,967		1,436,037		1,614,974
Class B	25		11,946		6,542		2,214		15		7,863
Class C	565,348		807,342		516,889		486,526		393,200		281,808
Shares issued upon reinvestment of dividends and distributions:
Class A	1,161,269		1,360,233		170,638		143,180		283,278		317,830
Class B	13,769		22,511		374		1,215		10,093		12,919
Class C	69,468		68,882		21,937		16,111		60,655		68,762
	5,543,186		5,945,371		3,163,004		3,073,213		2,183,278		2,304,156
Shares repurchased:
Class A	(4,736,716	)	(6,565,859	)	(1,277,249	)	(810,239	)	(1,501,476	)	(2,739,090	)
Class B	(225,629	)	(210,875	)	(21,083	)	(58,625	)	(128,538	)	(107,260	)
Class C	(379,026	)	(349,626	)	(284,347	)	(126,181	)	(269,385	)	(738,199	)
	(5,341,371	)	(7,126,360	)	(1,582,679	)	(995,045	)	(1,899,399	)	(3,584,549	)
Net increase (decrease)	201,815		(1,180,989	)	1,580,325		2,078,168		283,879		(1,280,393	)

For the year ended August 31, 2010 and 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 table above and the statements of changes in net assets.

	Year Ended			Year Ended
	8/31/10			8/31/09
	Class B	Class A		Class B	Class A
	Shares	Shares	Value	Shares	Shares	Value
Delaware Tax-Free
Minnesota Fund	143,907	144,023	$1,790,535	97,466	97,549	$1,145,062
Delaware Tax-Free Minnesota
Intermediate Fund	16,599	16,648	182,669	39,832	39,916	410,681
Delaware Minnesota High-Yield
Municipal Bond Fund	77,229	77,360	799,041	38,299	38,350	356,368

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7. Line of Credit

Each Fund, 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 August 31, 2010 or at any time during the year 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 August 31, 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 August 31, 2010, the percentages of each Fund’s net assets insured by insurers are listed below 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
22%	21%	15%

87

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

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 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 the Funds’ 15% limit on investments in illiquid securities. As of August 31, 2010, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

88

10. Contractual Obligations

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

11. Subsequent Events

Management has determined no material events or transactions occurred subsequent to August 31, 2010 that would require recognition or disclosure in the Funds’ financial statements.

12. Tax Information (Unaudited)

The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a Fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.

For the fiscal year ended August 31, 2010, each Fund designates distributions paid during the year as follows:

	(A)	(B)
	Ordinary Income	Tax-Exempt	Total
	Distributions	Distributions	Distributions
	(Tax Basis)	(Tax Basis)	(Tax Basis)
Delaware Tax-Free Minnesota Fund	0.19%	99.81%	100.00%
Delaware Tax-Free Minnesota Intermediate Fund	0.54%	99.46%	100.00%
Delaware Minnesota High-Yield Municipal Bond Fund	0.17%	99.83%	100.00%

(A) and (B) are based on a percentage of each Fund’s total distributions.

89

Report of independent
registered public accounting firm

To the Board of Trustees of Voyageur Tax-Free Funds, Voyageur Intermediate Tax-Free Funds and Voyageur Mutual Funds and the Shareholders of Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free Minnesota Fund (constituting Voyageur Tax-Free Funds), Delaware Tax-Free Minnesota Intermediate Fund (constituting Voyageur Intermediate Tax-Free Funds) and Delaware Minnesota High-Yield Municipal Bond Fund (one of the series constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) at August 31, 2010, and the results of their operations, the changes in each of their net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights for each of the four years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 19, 2010

90

Other Fund information
(Unaudited)
Delaware Minnesota Municipal Bond Funds

Change in Independent Registered Public Accounting Firm

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

91

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees
Patrick P. Coyne1	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

1 Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

92

for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Patrick P. Coyne has served in	81	Director
various executive capacities		Kaydon Corp.
at different times at
Delaware Investments.2		Board of Governors Member
		Investment Company
		Institute (ICI)
		Finance Committee Member
		St. John Vianney Roman
		Catholic Church
		Board of Trustees
		Agnes Irwin School
		Member of Investment
		Committee
		Cradle of Liberty Council,
		BSA
		(2007 – 2010)

2 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent.

93

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees
Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947
John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960
Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938
Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

94

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Private Investor	81	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
Investment Manager		Chairman of Investment
Morgan Stanley & Co.		Committee
(January 1984–March 2004)		Pennsylvania Academy of
		Fine Arts
		Investment Committee and
		Governance Committee
		Member
		Pennsylvania Horticultural
		Society
President	81	Director
Drexel University		Community Health Systems
(August 2010–Present)
		Director — Ecore
President		International
Franklin & Marshall College		(2009-2010)
(July 2002–July 2010)
		Director — Allied
Executive Vice President		Barton Securities Holdings
University of Pennsylvania		(2005 to 2008)
(April 1995–June 2002)
Founder and	81	None
Managing Director
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)
Chief Investment Officer	81	None
Assurant, Inc. (Insurance)
(2002–2004)

95

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Ann R. Leven	Trustee	Since October 1989
2005 Market Street
Philadelphia, PA 19103
November 1940
Thomas F. Madison	Trustee	Since May 19973
2005 Market Street
Philadelphia, PA 19103
February 1936

3 In 1997, several funds managed by Voyageur Fund Managers, Inc. (the “Voyageur Funds”) were incorporated into the Delaware Investments Family of Funds. Mr. Madison served as a director of the Voyageur Funds from 1993 until 1997.

96

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Consultant	81	Director and Audit
ARL Associates		Committee Chair –
(Financial Planning)		Systemax Inc.
(1983–Present)		(2001 – 2009)
		Director and Audit
		Committee Chairperson –
		Andy Warhol Foundation
		(1999 – 2007)
President and	81	Director and Chair of
Chief Executive Officer		Compensation Committee,
MLM Partners, Inc.		Governance Committee
(Small Business Investing		Member
and Consulting)		CenterPoint Energy
(January 1993–Present)
		Lead Director and Chair of
		Audit and Governance
		Committees, Member of
		Compensation Committee
		Digital River, Inc.
		Director and Chair of
		Governance Committee,
		Audit Committee
		Member
		Rimage Corporation
		Director and Chair of
		Compensation Committee
		Spanlink Communications
		Lead Director and Member of
		Compensation and
		Governance Committees
		Valmont Industries, Inc.
		(1987 – 2010)

97

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Thomas F. Madison
2005 Market Street
Philadelphia, PA 19103
February 1936
Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948
J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

98

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
		Director
		Banner Health
		(1996 to 2007)
Vice President and Treasurer	81	Director
(January 2006–Present)		Okabena Company
Vice President — Mergers & Acquisitions
(January 2003–January 2006), and
Vice President
(July 1995–January 2003)
3M Corporation
Founder	81	Director and Audit
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
Founder		Director
Sutton Asset Management		Oxigene, Inc.
(Hedge Fund)		(2003 to 2008)
(September 1996–Present)

99

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers
David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005
Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 25, 2007
Philadelphia, PA 19103
October 1972
David P. O’Connor	Senior Vice President,	Senior Vice President,
2005 Market Street	General Counsel,	General Counsel, and
Philadelphia, PA 19103	and Chief Legal Officer	Chief Legal Officer
February 1966		since October 2005
Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

100

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
David F. Connor has served as	81	None4
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.
Daniel V. Geatens has served	81	None4
in various capacities at
different times at
Delaware Investments.
David P. O’Connor has served in	81	None4
various executive and legal
capacities at different times
at Delaware Investments.
Richard Salus has served in	81	None4
various executive capacities
at different times at
Delaware Investments.

4 David F. Connor, Daniel V. Geatens, David P. O’Connor, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant.

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 Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY 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 annual 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 fact sheet 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

Annual report

Delaware Tax-Free USA Fund

Delaware Tax-Free USA Intermediate Fund

Delaware National High-Yield Municipal Bond Fund

August 31, 2010

Fixed income mutual funds 

This annual 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 annual 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 Funds 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 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 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 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

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

Investments in Delaware Tax-Free 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 their subsidiaries or related companies (Macquarie Group), and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Funds, the repayment of capital from the Funds, or any particular rate of return.

Table of contents
Portfolio management review	1
Performance summaries	6
Disclosure of Fund expenses	18
Sector allocations	21
Statements of net assets	24
Statements of operations	68
Statements of changes in net assets	70
Financial highlights	76
Notes to financial statements	100
Report of independent registered
public accounting firm	112
Other Fund information	113
Board of trustees/directors and
officers addendum	114
About the organization	124

Unless otherwise noted, views expressed herein are current as of Aug. 31, 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.

Portfolio management review
Delaware National Tax-Free Funds	September 7, 2010

Performance preview (for the year ended August 31, 2010)
Delaware Tax-Free USA Fund (Class A shares)	1-year return	+11.85%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper General Municipal Debt Funds Average	1-year return	+10.34%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Fund, please see the table on page 6.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

The Lipper General Municipal Debt Funds Average compares funds that invest at least 65% of assets in municipal debt issues in the top four credit ratings.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware Tax-Free USA Intermediate Fund (Class A shares)	1-year return	+9.53%
Barclays Capital 3–15 Year Blend Municipal Bond Index (benchmark)	1-year return	+8.99%
Lipper Intermediate Municipal Debt Funds Average	1-year return	+8.54%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free USA Intermediate Fund, please see the table on page 10.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

The Lipper Intermediate Municipal Debt Funds Average compares funds that invest in municipal debt issues with dollar-weighted average maturities of 5 to 10 years.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

Delaware National High-Yield Municipal Bond Fund (Class A shares)	1-year return	+19.29%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper High Yield Municipal Debt Funds Average	1-year return	+17.25%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware National High-Yield Municipal Bond Fund, please see the table on page 14.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.

The Lipper High Yield Municipal Debt Funds Average compares funds that invest at least 50% of assets in lower-rated municipal debt issues.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

1

Portfolio management review
Delaware National Tax-Free Funds

Economic environment

The Funds’ fiscal year, which ended Aug. 31, 2010, was one of continued economic challenges. When the period began, however, financial markets were bolstered by a broad-based sense of optimism about the economy:

• During the third quarter of 2009, the U.S. economy, as measured by gross domestic product (GDP), rose by an annualized 1.6%, marking the economy’s first quarterly expansion in more than a year.
• Growth in the fourth quarter of 2009 was even stronger. Annualized GDP expansion of 5.0% during those three months represented the fastest quarterly growth for the U.S. economy since early 2006.
  (Source: U.S. Commerce Department.)

As the reporting period progressed, however, indications began to mount that the U.S. economic environment was slowing once again. For example:

• Unemployment in the United States remained stubbornly high. The jobless rate peaked at 10.1% in October 2009 and finished the Fund’s fiscal period at a still-elevated 9.6%.
  (Source: U.S. Labor Department.)
• The rate of expansion in GDP decreased to 3.7% in the first three months of 2010, followed by a sluggish 1.6% in the year’s second quarter. This trend led some economists to worry about the potential for a “double-dip” recession.
  (Source: U.S. Commerce Department.)
• Investors focused their attention on the high levels of sovereign debt across the developed world (and particularly in Greece), fearing that reductions in government spending could exacerbate declining economic growth.
• The U.S. housing market, weighed down by significant foreclosure activity and declining sales, continued to struggle.

Encouragingly, inflation remained low throughout the reporting period, with the Consumer Price Index rising by just 1.2% for the 12 months ending July 31, 2010 (the most recent data available as this report was being prepared). With inflation well under control, the Federal Reserve Board (the Fed) kept its benchmark short-term interest rate 1%, where it has stood since the depths of the financial crisis in late 2008. The low rates were part of the Fed’s ongoing effort to stimulate economic growth — an effort that included a program announced late in the period to buy significant quantities of U.S. government debt.

Municipal bond market environment

While the sluggish economic backdrop hampered the U.S. equity market, we believe the effect on the municipal market was relatively muted because of a favorable balance between supply and demand. Despite concerns about state and local government finances, tax-exempt bonds of all maturity lengths and credit-quality ratings gained ground throughout most of the reporting period.

Overall, investor demand for tax-exempt securities remained generally strong, driven in part by a growing expectation of higher income-tax rates in the future, while at the same time supply of municipal bonds became increasingly limited. A major factor behind this shift between supply and demand can be attributed to the introduction of the Build America Bond program, a feature of the February 2009 federal economic stimulus package. As a result of this program, many bond issues that traditionally would have come to market as tax-exempt municipal bonds were instead issued as taxable debt. This left far

2

fewer new issues in the traditional tax-exempt municipal bond market, providing a very positive backdrop for the municipal bond asset class and driving the Funds’ returns throughout the fiscal period. (Source: Barclays Capital.)

Although all types of municipal bonds earned positive returns during the reporting period, those with longer maturity dates and lower credit ratings generally outperformed their shorter-maturity and higher-rated counterparts by a wide margin, as investors tended to favor longer-dated securities — despite their higher interest rate risk — for the potential to earn more income.

A similar situation occurred with regard to credit quality. Many investors increasingly exhibited a willingness to buy higher-yielding bonds, even if it meant taking on more credit risk.

Commitment to our longtime approach

In all three Funds profiled in this report, we continued to follow our basic investment philosophy and approach. We believe successful bond investing requires rigorous credit analysis. In our opinion, there is no substitute for thorough credit research. On a bond-by-bond basis, we scrutinize each security the Funds hold — or consider holding — to ensure our comfort level with its financial position and to feel confident that any potential risks are likely offset by the income the security provides. Through this strategy, we believe we can find opportunities that other investors with less experience and research diligence might overlook.

Our investment approach often leads us to an increased focus on bonds with credit ratings of BBB and A — which represent the lower tier of the investment grade bond universe — and a relative de-emphasis on higher-rated bonds, such as those rated AAA and AA. We generally feel that we may have an opportunity to obtain the most value for our shareholders from the lower-rated opportunities among investment grade municipal bonds.

As the Funds’ fiscal year progressed, our tactics for managing the Funds became more selective as credit spreads narrowed — meaning that the premium paid to investors for buying riskier, lower-rated bonds declined — and bond prices rose. As these trends continued and interest rates on municipal bonds fell during the period, many of the bonds the Funds already owned offered considerably higher levels of income than bonds that became available during the reporting period. For example, the team selected for purchase a number of bonds at the peak of the financial crisis, when tax-exempt municipal bond yields were extremely high because of investors’ concerns about the solvency of bond issuers. Careful research allowed us to eventually get comfortable with the credit quality of these issues. As a result, we were able to add some highly rated municipal bonds paying yields that, at the end of the Funds’ fiscal year, were comparable to what lower-rated A and even some BBB securities were offering.

Because bonds in the marketplace were paying the lower prevailing yields, we felt it was important to look at potential new purchases with an even more discerning eye. It often made little sense to us to sell higher-yielding bonds already in the Funds’ portfolio holdings in favor of new bonds reflecting the lower-interest-rate environment. We have often said throughout 2010 that new bonds had to “fight their way into the portfolio.” In other words, we had to feel confident that new bonds offered sufficient value opportunities relative to their potential risks.

3

Portfolio management review
Delaware National Tax-Free Funds

When we did add new securities to the Funds’ portfolio holdings as a result of Fund inflows (to accommodate cash generated by maturing bonds, for instance) we continued to follow our “bottom-up” investment strategy, carefully evaluating each issuer to become familiar with its financial position and to assess whether the bond’s return potential was commensurate with the risks involved with owning the securities.

Notable sectors and securities

As mentioned above, lower-rated bonds generally outperformed higher-rated issues through the majority of the Funds’ fiscal year. As a result, many of the individual bonds that made the strongest performance contributions across all three Funds were lower-rated issues. The best-performing sectors were often those with a significant amount of lower-rated bond issuance.

In a very favorable market environment for tax-exempt debt, even the weakest performers tended to earn modestly positive returns during the reporting period. Generally speaking, the bonds that lagged the overall municipal market on a total return basis were those with higher credit ratings (meaning less credit risk) and shorter maturities (meaning less interest rate risk). With interest rates declining, municipal bond investors looked for ways to capture additional levels of income, leading them toward lower-rated, longer-dated bonds and away from higher-rated, shorter-maturity credits.

In Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund, education was the top-performing sector, with a number of lower-rated bonds in this group performing notably well on a total return basis. For example, the best individual performer in Delaware Tax-Free USA Intermediate Fund during the fiscal year was a Grand Traverse, Michigan, charter school bond issue — a lower-rated bond that benefited considerably from declining yields (and, thus, rising prices). The team originally bought the security at what we felt was an attractive yield relative to comparable higher-rated debt.

Both Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund saw strong gains from a position in air cargo bonds issued by Capital Trust for Florida. These bonds are in the lease sector — a group that also contributed substantially to the results of Delaware National High-Yield Municipal Bond Fund. These air cargo bonds have been in the Funds for some time, and we have long felt they had the potential to provide good value to shareholders. Despite their sensitivity to the economy, they continued to perform even as the economic picture darkened during the Funds’ fiscal year.

In addition, performance within Delaware Tax-Free USA Fund was helped by Alliance, Texas, industrial development bonds issued on behalf of AMR, the parent company of American Airlines. After a brutal downturn amid the recession, the airline business has apparently rebounded well, as airlines have been aided by a number of factors that include increased general optimism about the economy, stable oil prices, new revenue streams generated by baggage fees (and other charges), and reduced flight schedules that have resulted in fuller planes. These bonds were the best individual performers overall during Delaware Tax-Free USA Fund’s fiscal year.

The top-returning individual bond within Delaware National High-Yield Municipal Bond Fund was issued by a continuing care

4

retirement community (CCRC) in Apple Valley, Minnesota. CCRCs are residential communities for seniors, ranging from independent-living to skilled-nursing-care facilities. This Minnesota CCRC is an established community with strong occupancy that has done reasonably well from a financial perspective. The Fund also gained from its position in New York industrial development revenue bonds issued on behalf of the airline Jet Blue. Like the American Airlines bonds, these securities benefited from the improving financial position of the airline industry.

As we mentioned earlier, even the weakest-performing bonds in all three Funds posted modestly positive results — an indication of the highly favorable market conditions enjoyed by municipal bond investors during the Funds’ fiscal year. Across all three Funds, the sector making the smallest total-return contribution was prerefunded bonds. These bonds have very short maturities, and because they are typically backed by U.S. Treasury bonds (or other very high-quality securities), they are considered high in credit quality. In an environment in which investors preferred lower-quality to higher-quality bonds, and longer-dated over shorter-dated issues, prerefunded bonds were left behind.

Within Delaware Tax-Free USA Intermediate Fund, the weakest contributors included prerefunded Virginia water revenue bonds due in October 2016. Payne County, Oklahoma, Economic Development Authority bonds, maturing in June 2030, were among Delaware Tax-Free USA Fund’s poorest contributors, while Bexar County, Texas, Health Authority bonds, coming due in July 2032, brought up the rear within Delaware National High-Yield Municipal Bond Fund.

5

Performance summaries
Delaware Tax-Free USA Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year		5 years		10 years		Lifetime
Class A (Est. Jan. 11, 1984)
Excluding sales charge		+11.85%		+4.14%		+5.42%		n/a
Including sales charge		+6.84%		+3.19%		+4.93%		n/a
Class B (Est. May 2, 1994)
Excluding sales charge		+11.01%		+3.34%		+4.76%		n/a
Including sales charge		+7.01%		+3.08%		+4.76%		n/a
Class C (Est. Nov. 29, 1995)
Excluding sales charge		+11.00%		+3.35%		+4.61%		n/a
Including sales charge		+10.00%		+3.35%		+4.61%		n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge		+12.84%		n/a		n/a		+15.15%
Including sales charge		+12.84%		n/a		n/a		+15.15%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 6 through 9.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, C, and Institutional Class shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.24% of average daily net assets.

6

The Board of Trustees has adopted a formula for calculating 12b-1 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 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 0.25% 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 0.10% and 0.25% rates described above.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

7

Performance summaries
Delaware Tax-Free USA Fund

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has voluntarily agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses from exceeding 0.56% of the Fund’s average daily net assets from Jan. 1, 2010, until the voluntary cap is discontinued. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	0.97%	1.73%	1.73%	0.73%
(without fee waivers)
Net expenses	0.80%	1.56%	1.56%	0.56%
(including fee waivers, if any)
Type of waiver	Voluntary	Voluntary	Voluntary	Voluntary

Performance of a $10,000 investment

Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free USA Fund — Class A Shares	$9,550	$16,165

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 6 through 9.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

8

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	DMTFX	245909106
Class B	DTFCX	245909403
Class C	DUSCX	245909700
Institutional Class	DTFIX	24610H104

9

Performance summaries
Delaware Tax-Free USA Intermediate Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year		5 years		10 years		Lifetime
Class A (Est. Jan. 7, 1993)
Excluding sales charge		+9.53%		+4.47%		+5.47%		n/a
Including sales charge		+6.56%		+3.89%		+5.18%		n/a
Class B (Est. May 2, 1994)
Excluding sales charge		+8.62%		+3.58%		+5.01%		n/a
Including sales charge		+6.62%		+3.58%		+5.01%		n/a
Class C (Est. Nov. 29, 1995)
Excluding sales charge		+8.70%		+3.59%		+4.58%		n/a
Including sales charge		+7.70%		+3.59%		+4.58%		n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge		+10.62%		n/a		n/a		+11.67%
Including sales charge		+10.62%		n/a		n/a		+11.67%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 10 through 13.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, C, and Institutional Class shares.

10

Class A shares are sold with a maximum front-end sales charge of up to 2.75%, and have an annual distribution and service fee of up to 0.30% of average daily net assets. This fee has been contractually limited to 0.15% of average daily net assets from Jan. 1, 2010, through Dec. 31, 2010.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 2.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately five years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately five years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

11

Performance summaries
Delaware Tax-Free USA Intermediate Fund

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has agreed to (1) voluntarily waive all or a portion of its investment advisory fees and/or reimburse certain expenses (excluding certain expenses) to prevent total annual fund operating expenses from exceeding 0.60% of the Fund’s average daily net assets from Jan. 1, 2010, until the voluntary cap is discontinued; and (2) contractually limit the Class A shares distribution and service fees from Jan. 1, 2010, through Dec. 31, 2010, to 0.15% of its average daily net assets. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	1.03%	1.73%	1.73%	0.73%
(without fee waivers)
Net expenses	0.75%	1.60%	1.60%	0.60%
(including fee waivers, if any)
Type of waiver	Contractual and
	Voluntary	Voluntary	Voluntary	Voluntary

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital 3–15 Year Blend Municipal Bond Index	$10,000	$17,312
	Delaware Tax-Free USA
	Intermediate Fund — Class A Shares	$9,725	$16,557

12

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 2.75% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 10 through 13.

The chart also assumes $10,000 invested in the Barclays Capital 3–15 Year Blend Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital 3–15 Year Blend Municipal Bond Index, sometimes also referred to as the Barclays Capital 3–15 Year Municipal Bond Index, measures the total return performance of investment grade, U.S. tax-exempt bonds with maturities from 2 to 17 years.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses. The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols		CUSIPs
Class A		DMUSX	245909304
Class B		DUIBX	245909601
Class C		DUICX	245909882
Institutional Class		DUSIX	24610H203

13

Performance summaries
Delaware National High-Yield Municipal Bond Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year		5 years		10 years		Lifetime
Class A (Est. Sept. 22, 1986)
Excluding sales charge	+19.29	%	+4.66	%	+5.46	%	n/a
Including sales charge	+13.93	%	+3.70	%	+4.98	%	n/a
Class B (Est. Dec. 18, 1996)
Excluding sales charge	+18.37	%	+3.87	%	+4.81	%	n/a
Including sales charge	+14.37	%	+3.62	%	+4.81	%	n/a
Class C (Est. May 26, 1997)
Excluding sales charge	+18.33	%	+3.86	%	+4.67	%	n/a
Including sales charge	+17.33	%	+3.86	%	+4.67	%	n/a
Institutional Class (Est. Dec. 31, 2008)
Excluding sales charge	+20.55	%	n/a		n/a		+26.34	%
Including sales charge	+20.55	%	n/a		n/a		+26.34	%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summary” section of this report are found on pages 14 through 17.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, C, and Institutional Class shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

14

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Institutional Class shares are available without sales or asset-based distribution charges only to certain eligible institutional accounts.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Instances of high double-digit returns are unusual, cannot be sustained, and were primarily achieved during favorable market conditions.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

15

Performance summaries
Delaware National High-Yield Municipal Bond Fund

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has voluntarily agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses from exceeding 0.60% of the Fund’s average daily net assets. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C	Institutional Class
Total annual operating expenses	1.08%	1.83%	1.83%	0.83%
(without fee waivers)
Net expenses	0.85%	1.60%	1.60%	0.60%
(including fee waivers, if any)
Type of waiver	Voluntary	Voluntary	Voluntary	Voluntary

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware National High-Yield
	Municipal Bond Fund — Class A Shares	$9,550	$16,239

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summary” section of this report, which includes pages 14 through 17.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

16

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols		CUSIPs
Class A		CXHYX	928928241
Class B		DVNYX	928928233
Class C		DVHCX	928928225
Institutional Class		DVHIX	24610H302

17

Disclosure of Fund expenses
For the six-month period March 1, 2010 to August 31, 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 six-month period from March 1, 2010 to August 31, 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.

18

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

	Beginning			Ending						Expenses
	Account Value			Account Value			Annualized			Paid During Period
	3/1/10			8/31/10			Expense Ratio			3/1/10 to 8/31/10*
Actual Fund return
Class A		$	1,000.00		$	1,059.10		0.80	%		$	4.15
Class B			1,000.00			1,055.20		1.56	%			8.08
Class C			1,000.00			1,055.10		1.56	%			8.08
Institutional Class			1,000.00			1,061.00		0.56	%			2.91
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,021.17		0.80	%		$	4.08
Class B			1,000.00			1,017.34		1.56	%			7.93
Class C			1,000.00			1,017.34		1.56	%			7.93
Institutional Class			1,000.00			1,022.38		0.56	%			2.85

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
	3/1/10			8/31/10			Expense Ratio			3/1/10 to 8/31/10*
Actual Fund return
Class A		$	1,000.00		$	1,049.80		0.75	%		$	3.87
Class B			1,000.00			1,045.40		1.60	%			8.25
Class C			1,000.00			1,046.20		1.60	%			8.25
Institutional Class			1,000.00			1,050.30		0.60	%			3.10
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,021.42		0.75	%		$	3.82
Class B			1,000.00			1,017.14		1.60	%			8.13
Class C			1,000.00			1,017.14		1.60	%			8.13
Institutional Class			1,000.00			1,022.18		0.60	%			3.06

19

Disclosure of Fund expenses

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
	3/1/10			8/31/10			Expense Ratio			3/1/10 to 8/31/10*
Actual Fund return
Class A		$	1,000.00		$	1,081.80		0.85	%		$	4.46
Class B			1,000.00			1,077.70		1.60	%			8.38
Class C			1,000.00			1,077.50		1.60	%			8.38
Institutional Class			1,000.00			1,082.50		0.60	%			3.15
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.92		0.85	%		$	4.33
Class B			1,000.00			1,017.14		1.60	%			8.13
Class C			1,000.00			1,017.14		1.60	%			8.13
Institutional Class			1,000.00			1,022.18		0.60	%			3.06

*“Expenses Paid During Period” are equal to Funds’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

20

Sector allocations
Delaware Tax-Free USA Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.93	%
Corporate Revenue Bonds	19.29	%
Education Revenue Bonds	9.51	%
Electric Revenue Bonds	3.32	%
Healthcare Revenue Bonds	10.68	%
Housing Revenue Bonds	0.86	%
Lease Revenue Bonds	3.22	%
Local General Obligation Bonds	4.52	%
Pre-Refunded/Escrowed to Maturity Bonds	17.36	%
Special Tax Revenue Bonds	12.97	%
State General Obligation Bonds	5.04	%
Transportation Revenue Bonds	9.04	%
Water & Sewer Revenue Bonds	3.12	%
Short-Term Investment	0.32	%
Total Value of Securities	99.25	%
Receivables and Other Assets Net of Liabilities	0.75	%
Total Net Assets	100.00	%

21

Sector allocations
Delaware Tax-Free USA Intermediate Fund	As of August 31, 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	8.54	%
Education Revenue Bonds	5.90	%
Electric Revenue Bonds	4.23	%
Healthcare Revenue Bonds	10.30	%
Housing Revenue Bonds	1.03	%
Lease Revenue Bonds	1.78	%
Local General Obligation Bonds	6.67	%
Pre-Refunded/Escrowed to Maturity Bonds	5.07	%
Resource Recovery Revenue Bonds	0.17	%
Special Tax Revenue Bonds	11.61	%
State General Obligation Bonds	23.24	%
Transportation Revenue Bonds	12.96	%
Water & Sewer Revenue Bonds	6.81	%
Short-Term Investments	0.70	%
Total Value of Securities	99.01	%
Receivables and Other Assets Net of Liabilities	0.99	%
Total Net Assets	100.00	%

22

Delaware National High-Yield Municipal Bond Fund As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	95.60	%
Corporate Revenue Bonds	18.02	%
Education Revenue Bonds	19.06	%
Electric Revenue Bonds	2.87	%
Healthcare Revenue Bonds	25.05	%
Housing Revenue Bond	0.51	%
Lease Revenue Bonds	4.83	%
Local General Obligation Bonds	0.32	%
Pre-Refunded/Escrowed to Maturity Bonds	0.57	%
Special Tax Revenue Bonds	13.47	%
State General Obligation Bonds	3.78	%
Transportation Revenue Bonds	7.12	%
Short-Term Investments	1.29	%
Total Value of Securities	96.89	%
Receivables and Other Assets Net of Liabilities	3.11	%
Total Net Assets	100.00	%

23

Statements of net assets
Delaware Tax-Free USA Fund	August 31, 2010

		Principal amount			Value
Municipal Bonds – 98.93%
Corporate Revenue Bonds – 19.29%
	Alliance Airport Authority, Texas Special Facilities Revenue
	(American Airlines Project) Series B 5.25% 12/1/29 (AMT)		$	2,250,000	$	1,699,155
•	Brazos, Texas Harbor Industrial Development
	Environmental Facilities Revenue
	(Dow Chemical Co. Project) 5.90% 5/1/38 (AMT)			1,940,000		2,013,623
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)			3,000,000		1,205,340
	•(TXU Energy Co. Project) Series B 6.30% 7/1/32 (AMT)			3,500,000		1,476,055
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2 5.875% 6/1/47			14,405,000		10,518,964
	Clayton County, Georgia Development Authority Special Facilities
	Revenue (Delta Airlines) Series B 9.00% 6/1/35 (AMT)			3,800,000		4,095,602
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26			1,695,000		1,659,608
•	Gulf Coast Waste Disposal Authority Texas Environmental
	Facilities Revenue (BP Products North America)
	2.30% 1/1/26			720,000		700,099
	2.30% 1/1/42			1,445,000		1,405,060
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23			2,880,000		3,089,606
	Hawaii State Department Budget &
	Finance Special Purpose Revenue (Hawaiian
	Electric Co. Subsidiary) 6.50% 7/1/39			5,350,000		5,961,398
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp. Project) 6.00% 12/1/26			2,610,000		2,774,639
	Indianapolis, Indiana Airport Authority Revenue
	Special Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)			2,750,000		2,956,965
	Series 1998 5.50% 5/1/29 (AMT)			2,000,000		1,999,820
	Iowa Finance Authority Pollution Control Facility Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)			3,640,000		3,972,623
	Louisiana Local Government Environmental Facilities &
	Community Development Authority Revenue
	(Westlake Chemical Corp.) Series A 6.50% 8/1/29			4,855,000		5,074,397
	Mason County, West Virginia Pollution Control Revenue
	(Appalachian Power Co. Project)
	Series K 6.05% 12/1/24 (AMBAC)			3,000,000		3,037,980

24

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Mississippi Business Finance Corporation Pollution Control
	Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22		$	3,000,000	$	3,000,210
	Missouri State Environmental Improvement & Energy
	Resource Authority Pollution Control
	Revenue Refunding (St. Joseph Light & Power Co. Project)
	5.85% 2/1/13 (AMBAC)			2,200,000		2,206,116
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.) Series B
	4.875% 6/1/34			4,750,000		5,147,955
	M-S-R Energy Authority, California Gas Revenue Series A
	6.125% 11/1/29			1,915,000		2,125,650
	6.50% 11/1/39			3,915,000		4,562,815
	New Jersey Economic Development Authority
	Special Facility Revenue (Continental Airlines, Inc. Project)
	6.25% 9/15/29 (AMT)			2,000,000		1,942,800
•	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		4,847,627
	7.75% 8/1/31 (AMT)			2,000,000		2,110,560
	New York Liberty Development Corporation Revenue
	Second Priority (Bank of America Tower)
	Class 2 5.625% 7/15/47			6,000,000		6,247,380
	Nez Perce County, Idaho Pollution Control Revenue
	(Potlatch Corp. Project) 6.00% 10/1/24			1,250,000		1,236,713
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy Generation)
	Series A 5.70% 8/1/20			4,750,000		5,372,250
	Owen County, Kentucky Waterworks System Revenue
	(American Water Co.) Series B 5.625% 9/1/39			3,300,000		3,474,900
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39			6,340,000		7,268,557
	Petersburg, Indiana Pollution Control Revenue (Indianapolis
	Power & Light Co. Project) 6.375% 11/1/29 (AMT)			5,000,000		5,138,200
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco Corp.
	Project) Series A 6.35% 5/15/35 (AMT)			3,000,000		2,976,720

25

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Richmond County, Georgia Development Authority
	Environmental Improvement Revenue (International
	Paper Co.) Series B 5.95% 11/15/25 (AMT)		$	5,000,000	$	5,094,450
	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		504,480
	Sugar Creek, Missouri Industrial Development Revenue (Lafarge
	North America Project) Series A 5.65% 6/1/37 (AMT)			500,000		483,365
	Sweetwater County, Wyoming Solid Waste Disposal Revenue
	(FMC Corp. Project) 5.60% 12/1/35 (AMT)			3,250,000		3,263,910
						120,645,592
Education Revenue Bonds – 9.51%
	Amherst, New York Industrial Development Agency Civic
	Facilities Revenue (UBF Faculty Student Housing)
	Series A 5.75% 8/1/30 (AMBAC)			1,300,000		1,316,250
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45			5,390,000		5,509,119
	Broward County, Florida Educational Facilities Authority Revenue
	(Nova Southeastern Project) 5.25% 4/1/27 (RADIAN)			1,000,000		1,001,310
	California Statewide Communities Development Authority School
	Facility Revenue (Aspire Public Schools) 6.125% 7/1/46			5,160,000		5,269,082
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)			3,400,000		3,403,774
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25			3,000,000		3,478,380
	Gainesville, Georgia Redevelopment Authority Educational Facilities
	Revenue (Riverside Military Academy Project) 5.125% 3/1/37			3,735,000		2,703,654
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39			4,200,000		4,252,080
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Harvard University) Series A 5.50% 11/15/36			4,515,000		5,285,620
	(Nichols College Project) Series C 6.125% 10/1/29			4,350,000		4,373,447
	Michigan Finance Authority Educational Facilities Revenue
	Senior (Saint Catherine Siena) Series A
	8.00% 10/1/30			2,315,000		2,325,093
	8.50% 10/1/45			1,000,000		1,013,100

26

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Missouri State Health & Educational Facilities Authority
	Revenue (Washington University) Series A 5.375% 3/15/39		$	5,000,000	$	5,590,100
	New Hampshire Higher Educational & Health Facilities
	Authority Revenue (New Hampton School Issue)
	5.375% 10/1/28			3,070,000		2,948,121
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42			4,285,000		4,453,786
	New Jersey State Educational Facilities Authority Revenue
	(University of Medicine & Dentistry) Series B 7.50% 12/1/32			1,435,000		1,689,368
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37			1,665,000		1,373,142
	Saint Louis, Missouri Industrial Development Authority
	Revenue (Confluence Academy Project) Series A
	5.25% 6/15/25			1,150,000		1,023,627
	5.35% 6/15/32			2,300,000		1,955,897
	University of the Virgin Islands Series A 5.375% 6/1/34			500,000		505,725
						59,470,675
Electric Revenue Bonds – 3.32%
	Chelan County, Washington Public Utilities District #001
	Consolidated Revenue (Chelan Hydro System) Series A
	5.45% 7/1/37 (AMBAC) (AMT)			5,000,000		5,030,300
	Puerto Rico Electric Power Authority Revenue
	Series PP 5.00% 7/1/25 (NATL-RE) (FGIC)			1,000,000		1,038,400
	Series WW 5.50% 7/1/38			2,100,000		2,225,832
	Series XX 5.75% 7/1/36			10,495,000		11,397,045
	Sikeston, Missouri Electric Revenue Refunding
	6.00% 6/1/13 (NATL-RE)			1,000,000		1,069,690
						20,761,267
Healthcare Revenue Bonds – 10.68%
	Brevard County, Florida Health Care Facilities Authority
	Revenue (Heath First Inc. Project) Series B 7.00% 4/1/39			1,610,000		1,819,220
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			2,250,000		2,615,783
	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		1,017,490

27

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	Cleveland-Cuyahoga County, Ohio Port Authority Revenue
	Senior Housing (St. Clarence - Geac) Series A 6.25% 5/1/38		$	1,500,000	$	1,321,755
	Colorado Health Facilities Authority Revenue
	(Evangelical Lutheran) Series A 5.25% 6/1/34			4,275,000		4,280,387
	Cuyahoga County, Ohio Revenue (Cleveland Clinic Health
	Systems) Series A 5.50% 1/1/29			4,000,000		4,301,320
	Fairfax County, Virginia Industrial Development Authority
	Revenue (Inova Health Services) Series A 5.50% 5/15/35			2,500,000		2,742,400
	Gainesville & Hall County, Georgia Development Authority
	Revenue Senior Living Facilities (Lanier Village Estates
	Project) Series C 7.25% 11/15/29			1,000,000		1,020,610
	Illinois Finance Authority Revenue
	(Silver Cross & Medical Centers) 7.00% 8/15/44			5,500,000		6,014,414
	Illinois Health Facilities Authority Revenue
	(Elmhurst Memorial Healthcare Project) 5.625% 1/1/28			2,000,000		2,005,660
	Lucas County, Ohio Health Care Facility Revenue (Sunset
	Retirement Communities) Series A 6.625% 8/15/30			2,000,000		2,020,780
	Maricopa County, Arizona Industrial Development Authority
	Health Facilities Revenue (Catholic Healthcare West)
	Series A 6.00% 7/1/39			3,690,000		4,005,458
	Michigan State Hospital Finance Authority Revenue
	(Ascension Health Credit Group) Series B 5.25% 11/15/26			3,500,000		3,639,930
	(Trinity Health Credit) Series C 5.375% 12/1/30			6,000,000		6,050,639
	Montana Facility Finance Authority Revenue
	(Sisters Leavenworth) Series A 5.25% 1/1/40			3,750,000		4,057,238
	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		3,702,300
	(Orange Regional Medical Center) 6.50% 12/1/21			2,745,000		2,947,389
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.40% 10/1/27			3,260,000		3,234,702
	Ohio State Higher Educational Facility Community Revenue
	(Cleveland Clinic Health System Obligation Group)
	Series A 5.25% 1/1/33			2,000,000		2,124,760
^	Oregon Health Science University Revenue
	(Capital Appreciation Insured)
	Series A 5.50% 7/1/21 (NATL-RE)			2,000,000		1,252,100

28

		Principal amount			Value
Municipal Bonds (continued)
Health Care Revenue Bonds (continued)
	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	$	1,201,788
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Healtheast Project) 6.00% 11/15/35			3,000,000		2,919,930
	Tallahassee, Florida Health Facilities Revenue
	(Tallahassee Memorial Regional Medical Center)
	Series B 6.00% 12/1/15 (NATL-RE)			2,500,000		2,506,025
						66,802,078
Housing Revenue Bonds – 0.86%
	Florida Housing Finance Agency
	(Landings at Sea Forest Apartments) Series T
	5.85% 12/1/18 (AMBAC) (FHA) (AMT)			285,000		285,168
	6.05% 12/1/36 (AMBAC) (FHA) (AMT)			700,000		699,951
	(Spinnaker Cove Apartments) Series G
	6.50% 7/1/36 (AMBAC) (FHA) (AMT)			500,000		500,140
	Missouri State Housing Development Commission Mortgage
	Revenue Single Family Homeowner Loan A 5.20% 9/1/33
	(GNMA) (FNMA) (AMT)			170,000		171,637
	Missouri State Housing Development Commission
	Multifamily Housing Revenue
	(Hyder) Series 3 5.60% 7/1/34 (FHA) (AMT)			1,435,000		1,464,202
	(San Remo) Series 5 5.45% 1/1/36 (FHA) (AMT)			500,000		510,695
	New Mexico Mortgage Finance Authority Revenue
	Series B Class III 6.75% 7/1/25 (GNMA) (FNMA)			85,000		88,675
	Series E 6.95% 1/1/26 (GNMA) (FNMA)			95,000		96,677
	Orange County, Florida Housing Finance Authority
	Homeowner Revenue Series B
	5.25% 3/1/33 (GNMA) (FNMA) (AMT)			105,000		106,110
	Oregon Health, Housing, Educational, & Cultural Facilities
	Authority Revenue (Pier Park Project) Series A
	6.05% 4/1/18 (GNMA) (AMT)			815,000		816,345
	Santa Fe, New Mexico Single Family Mortgage Revenue
	Series B-1 6.20% 11/1/16 (GNMA) (FNMA) (AMT)			130,000		130,350
	Volusia County, Florida Multifamily Housing Finance
	Authority (San Marco Apartments)
	Series A 5.60% 1/1/44 (AGM) (AMT)			500,000		506,030
						5,375,980

29

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds – 3.22%
	Capital Area Cultural Education Facilities Finance
	Corporation Texas Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45		$	2,045,000	$	2,111,422
	Capital Trust Agency Florida Revenue
	(Fort Lauderdale/Cargo Acquisition Project)
	5.75% 1/1/32 (AMT)			3,750,000		3,429,487
	(Orlando/Cargo Acquisition Project) 6.75% 1/1/32 (AMT)			2,395,000		2,253,072
	Grapevine, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.50% 1/1/24 (AMT)			905,000		907,896
	Houston, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.375% 1/1/23 (AMT)			1,990,000		1,993,184
	Loudoun County, Virginia Industrial Development Authority Public
	Safety Facility Lease Revenue Series A 5.25% 12/15/23 (AGM)			700,000		789,691
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue
	(Branson Landing Project) Series A
	5.25% 12/1/19			1,435,000		1,534,962
	5.625% 12/1/28			2,430,000		2,534,247
	(Sewer System Improvement Project) Series C 5.00% 3/1/25			605,000		611,510
	(Triumph Foods Project) Series A 5.25% 3/1/25			500,000		505,090
	Puerto Rico Commonwealth Industrial Development Company
	General Purpose Revenue Series B 5.375% 7/1/16			1,000,000		1,001,650
	Puerto Rico Public Buildings Authority Revenue (Guaranteed
	Government Facilities) Series F 5.25% 7/1/25			930,000		1,006,939
^	St. Louis, Missouri Industrial Development Authority
	Leasehold Revenue (Convention Center Hotel)
	5.80% 7/15/20 (AMBAC)			3,035,000		1,439,531
						20,118,681
Local General Obligation Bonds – 4.52%
	Boerne, Texas Independent School District Building
	5.25% 2/1/27 (PSF)			4,000,000		4,202,920
	Los Angeles, California Unified School District Election of 2005
	Series F 5.00% 1/1/34			6,180,000		6,497,096
	Melrose Park, Illinois Tax Increment
	Series B 6.00% 12/15/19 (AGM)			1,250,000		1,266,300

30

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	New York City, New York
	Series I 5.125% 3/1/23		$	5,875,000	$	6,366,091
	Series I-1 5.375% 4/1/36			5,000,000		5,539,200
	Series J 5.25% 6/1/28			2,055,000		2,218,599
	Powell, Ohio 5.50% 12/1/32 (NATL-RE)			2,000,000		2,164,980
						28,255,186
§Pre-Refunded/Escrowed to Maturity Bonds – 17.36%
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue (Southeast
	Missouri Hospital) 5.25% 6/1/16 (NATL-RE)			440,000		495,770
	Deschutes County, Oregon Hospital Facilities Authority Hospital
	Revenue (Cascade Health Services) 5.60% 1/1/32-12			1,250,000		1,337,300
	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		4,631,880
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Series B 5.625% 6/1/38-13			7,500,000		8,528,100
^	Greene County, Missouri Single Family Mortgage Revenue
	Municipal Multiplier (Private Mortgage Insurance) 6.10% 3/1/16			1,225,000		1,110,144
	Henrico County, Virginia Economic Development Authority
	Revenue (Bon Secours Health System)
	Series A 5.60% 11/15/30-11			130,000		144,615
	Highlands County, Florida Health Facilities Authority
	(Adventist Health System/Sunbelt)
	Series A 6.00% 11/15/31-11			1,500,000		1,613,640
	Illinois Educational Facilities Authority Student Housing
	Revenue (Educational Advancement Fund - University
	Center Project) 6.25% 5/1/30-12			5,000,000		5,538,400
	Linn County, Oregon Community School District #9
	Lebanon 5.60% 6/15/30-13 (FGIC)			2,000,000		2,285,060
	Louisiana Public Facilities Authority Hospital Revenue
	(Southern Baptist Hospital, Inc. Project) 8.00% 5/15/12			1,880,000		2,006,148
	Maryland State Economic Development Corporation,
	Student Housing Revenue (University of Maryland College
	Park Project) 5.625% 6/1/35-13			1,125,000		1,284,098
	Milledgeville-Baldwin County, Georgia Development
	Authority Revenue (Georgia College & State University
	Foundation Student Housing Project) 6.00% 9/1/33-14			1,000,000		1,217,540

31

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	New Jersey State Educational Facilities Authority Revenue
	(Stevens Institute of Technology) Series B 5.25% 7/1/24-14		$	2,085,000	$	2,445,351
	New Jersey State Highway Authority Garden State Parkway
	General Revenue (Senior Parkway)
	5.50% 1/1/14 (FGIC)			5,000,000		5,813,600
	5.50% 1/1/15 (FGIC)			7,310,000		8,751,313
	5.50% 1/1/16 (FGIC)			1,000,000		1,220,040
	New York City, New York Series J 5.25% 6/1/28-13			2,895,000		3,280,469
	North Carolina Medical Care Commission Hospital Revenue
	(Northeast Medical Center Project) 5.125% 11/1/34-14			1,250,000		1,470,200
	Oklahoma State Turnpike Authority Revenue (First Senior)
	6.00% 1/1/22			13,535,000		18,050,275
	Osceola County, Florida School Board Certificates of
	Participation Series A 5.25% 6/1/27-12 (AMBAC)			4,000,000		4,372,640
	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		4,183,280
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series G 5.00% 7/1/42-13			525,000		592,888
	Puerto Rico Electric Power Authority Revenue
	Series II 5.25% 7/1/31-12			6,000,000		6,602,820
	Series NN 5.125% 7/1/29-13			1,105,000		1,251,777
	Puerto Rico Public Buildings Authority Revenue (Guaranteed
	Government Facilities) Series I 5.25% 7/1/33-14			175,000		204,376
•	Puerto Rico Sales Tax Financing Corporation Sales Tax Revenue
	Series A 5.00% 8/1/39-11			4,000,000		4,174,800
	Richmond, Virginia Public Utilities Revenue
	5.00% 1/15/27-12 (AGM)			10,000,000		10,646,399
	St. Louis, Missouri Airport Revenue (Capital Improvement
	Project) Series A 5.375% 7/1/21-12 (NATL-RE)			1,635,000		1,781,055
	Virgin Islands Public Finance Authority Revenue
	Series A 7.30% 10/1/18			2,200,000		2,730,970
	Wisconsin Housing & Economic Developing Authority
	Revenue 6.10% 6/1/21-17 (FHA)			645,000		781,540
						108,546,488

32

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 12.97%
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30		$	8,230,000	$	8,999,176
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21			3,130,000		3,752,056
	Florida Enterprise Community Development District Special
	Assessment 6.10% 5/1/16 (NATL-RE)			695,000		697,815
	Henderson, Nevada Local Improvement
	Districts #T-18 5.30% 9/1/35			2,315,000		1,142,013
	Hollywood, Florida Community Redevelopment Agency
	Revenue (Beach CRA) 5.625% 3/1/24			1,200,000		1,241,112
	Jacksonville, Florida Excise Tax Revenue
	Series B 5.00% 10/1/26 (AMBAC)			1,000,000		1,056,000
	Lammersville, California School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35			4,125,000		3,636,435
	Manchester, Missouri Tax Increment & Transportation Revenue
	(Highway 141/Manchester Road Project) 6.875% 11/1/39			3,120,000		3,216,845
	Middlesex County, New Jersey Improvement Authority Senior
	Revenue (Heldrich Center Hotel/Conference Project) Series A
	5.00% 1/1/32			1,500,000		848,520
	5.125% 1/1/37			1,500,000		848,490
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Crackerneck Creek Project)
	Series C 5.00% 3/1/26			500,000		507,690
	Missouri State Environmental Improvement & Energy Water
	Pollution Control Revenue (State Revolving Fund Project)
	Series A 6.05% 7/1/16 (AGM)			1,030,000		1,034,491
	Missouri State Highways & Transportation Commission State
	Road Revenue Series B 5.00% 5/1/24			9,000,000		10,460,430
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.50% 6/15/31			1,000,000		988,200
	5.75% 6/15/34			1,935,000		1,915,011
	New York City, New York Transitional Finance Authority
	Series D 5.00% 2/1/31			5,000,000		5,314,400
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)			1,000,000		1,116,150

33

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New York State Dormitory Authority State Personal Income
	Tax Revenue
	Series A 5.00% 3/15/38		$	4,545,000	$	4,899,919
	Series B 5.25% 3/15/38			6,000,000		6,640,800
	Puerto Rico Sales Tax Financing Corporation Sales
	Corporation Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32			10,780,000		9,315,645
	Series A 5.75% 8/1/37			5,000,000		5,359,800
	Series A 6.00% 8/1/39			3,530,000		3,907,957
	Tampa, Florida Sports Authority Revenue Sales Tax
	(Tampa Bay Arena Project) 5.75% 10/1/20 (NATL-RE)			1,000,000		1,157,500
^	Wyandotte County/Kansas City, Kansas Unified Government
	Special Obligation Revenue (Capital Appreciation-Sales Tax)
	Subordinate Lien 6.07% 6/1/21			5,230,000		3,031,465
						81,087,920
State General Obligation Bonds – 5.04%
	California State
	6.00% 4/1/38			4,060,000		4,533,883
	6.50% 4/1/33			2,570,000		3,017,488
	Guam Government Series A 7.00% 11/15/39			4,295,000		4,810,056
	Maryland State & Local Facilities Land Capital Improvement
	Second Series 5.00% 8/1/16			4,000,000		4,842,200
	Puerto Rico Commonwealth Public Improvement Series A
	5.125% 7/1/31			4,415,000		4,435,265
	5.25% 7/1/23			500,000		516,415
	5.50% 7/1/19 (NATL-RE)			5,000,000		5,674,651
	Series C 6.00% 7/1/39			3,370,000		3,658,101
						31,488,059
Transportation Revenue Bonds – 9.04%
	Bay Area, California Toll Bridge Authority Revenue
	(San Francisco Bay Area) Series F-1 5.625% 4/1/44			4,265,000		4,805,418
	Branson, Missouri Regional Airport Transportation
	Development District Revenue (Branson Airport Project)
	Series B 6.00% 7/1/37 (AMT)			1,500,000		861,990
	Dallas-Fort Worth, Texas International Airport Revenue
	Series A 5.50% 11/1/31 (NATL-RE) (FGIC) (AMT)			1,500,000		1,515,660

34

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Maryland State Economic Development Corporation Revenue
	(Transportation Facilities Project) Series A 5.75% 6/1/35		$	5,075,000	$	5,329,461
	New York State Thruway Authority General Revenue Series H
	5.00% 1/1/19 (NATL-RE)			6,240,000		7,263,235
	North Texas Tollway Authority Revenue (First Tier)
	Series A 6.00% 1/1/24			3,345,000		3,807,346
	•Series E-3 5.75% 1/1/38			4,320,000		5,003,942
	Phoenix, Arizona Civic Improvement Corporation Airport
	Revenue Junior Lien Series A 5.00% 7/1/26			1,800,000		1,961,874
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series C 6.00% 7/1/41			6,500,000		7,150,715
	St. Louis, Missouri Airport Revenue (Lambert-St Louis
	International) Series A-1 6.625% 7/1/34			5,995,000		6,546,780
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien
	(LBJ Infrastructure) 7.00% 6/30/40			5,715,000		6,245,295
	(Mobility Partners) 6.875% 12/31/39			5,500,000		6,037,350
						56,529,066
Water & Sewer Revenue Bonds – 3.12%
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.25% 11/1/39			5,500,000		6,284,904
	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		4,613,120
	Series A 5.25% 6/15/34			3,705,000		3,928,115
	Tampa, Florida Water and Sewer Revenue
	6.00% 10/1/16 (AGM)			1,000,000		1,233,500
	Virgin Islands Water & Power Authority Water System
	Revenue 5.50% 7/1/17			510,000		511,046
	West Virginia State Water Development Authority Revenue
	(Loan Program III) Series A 6.375% 7/1/39 (AMBAC) (AMT)			2,890,000		2,921,848
						19,492,533
Total Municipal Bonds (cost $575,301,239)						618,573,525

35

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount			Value
Short-Term Investment – 0.32%
Variable Rate Demand Note – 0.32%
•	Minneapolis & St. Paul, Minnesota Housing & Redevelopment
	Authority Health Care Revenue (Allina Health System)
	Series B-2 0.25% 11/15/35 (LOC–JP Morgan Chase Bank)		$	2,000,000	$	2,000,000
Total Short-Term Investment (cost $2,000,000)						2,000,000
Total Value of Securities – 99.25%
	(cost $577,301,239)					620,573,525
Receivables and Other Assets
	Net of Liabilities – 0.75%					4,666,601
Net Assets Applicable to 53,753,813
	Shares Outstanding – 100.00%				$	625,240,126
Net Asset Value – Delaware Tax-Free USA Fund
	Class A ($581,931,552 / 50,035,311 Shares)						$11.63
Net Asset Value – Delaware Tax-Free USA Fund
	Class B ($5,373,081 / 462,226 Shares)						$11.62
Net Asset Value – Delaware Tax-Free USA Fund
	Class C ($30,301,786 / 2,604,795 Shares)						$11.63
Net Asset Value – Delaware Tax-Free USA Fund
	Institutional Class ($7,633,707 / 651,481 Shares)						$11.72
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	589,352,077
Undistributed net investment income						66,895
Accumulated net realized loss on investments						(7,451,132		)
Net unrealized appreciation of investments						43,272,286
Total net assets					$	625,240,126

36

§	Pre-Refunded/Escrowed to Maturity 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 August 31, 2010.
^	Zero coupon security. The rate shown is the yield at the time of purchase. Interest rates reset periodically.
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by the AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
FGIC — Insured by the Financial Guaranty Insurance Company
FHA — Insured by the Federal Housing Administration
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)	$	11.63
Sales charge (4.50% of offering price) (B)	0.55
Offering price	$	12.18

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

37

Statements of net assets
Delaware Tax-Free USA Intermediate Fund	August 31, 2010

		Principal amount			Value
Municipal Bonds – 98.31%
Corporate Revenue Bonds – 8.54%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp. Project) 6.50% 5/1/17		$	2,315,000	$	2,513,720
	Alliance Airport Authority, Texas Special Facilities Revenue
	(Federal Express Corp. Project) 4.85% 4/1/21 (AMT)			2,000,000		2,017,920
•	Brazos, Texas Harbor Industrial Development Environmental
	Facilities Revenue (Dow Chemical Co. Project)
	5.90% 5/1/38 (AMT)			1,010,000		1,048,330
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)			1,000,000		401,780
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2 5.875% 6/1/47			5,645,000		4,122,148
•	Chesapeake, Virginia Economic Development Authority
	Pollution Control Revenue (Electric & Power Co. Project)
	Series A 3.60% 2/1/32			1,150,000		1,199,565
	Chesterfield County, Virginia Economic Development
	Authority Pollution Control Revenue (Virginia Electric &
	Power) Series A 5.00% 5/1/23			1,460,000		1,621,286
	Clayton County, Georgia Development Authority Special
	Facilities Revenue (Delta Air Lines) Series A 8.75% 6/1/29			1,770,000		2,004,684
•	Gulf Coast Waste Disposal Authority, Texas Environmental
	Facilities Revenue (BP Products North America)
	2.30% 1/1/26			780,000		758,441
	2.30% 1/1/42			1,500,000		1,458,540
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue (Deer Park Refining Project)
	5.00% 2/1/23			2,750,000		2,950,145
	Indianapolis, Indiana Airport Authority Revenue Special
	Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)			750,000		806,445
	Iowa Finance Authority Pollution Control Facilities Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)			2,000,000		2,182,760
•	Maricopa County, Arizona Corporation Pollution Control
	Revenue (Public Service Co. - Palo Verde Project)
	Series B 5.20% 6/1/43			6,000,000		6,251,101
	Maryland Economic Development Corporation Pollution
	Control Revenue (Potomac Electric Project)
	6.20% 9/1/22			1,780,000		2,114,871

38

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Memphis-Shelby County, Tennessee Airport Authority
	Special Facilities Revenue (Federal Express Corp. Project)
	5.05% 9/1/12		$	1,000,000	$	1,060,110
	Michigan State Strategic Fund Limited Obligation Revenue
	(Dow Chemical Project) Series B-2 6.25% 6/1/14			4,500,000		5,068,440
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.)
	Series B 4.875% 6/1/34			2,840,000		3,077,935
	M-S-R Energy Authority, California Gas Revenue
	Series A 6.125% 11/1/29			3,640,000		4,040,400
	New Jersey Economic Development Authority Special
	Facilities Revenue (Continental Airlines, Inc. Project)
	6.625% 9/15/12 (AMT)			3,295,000		3,359,681
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy)
	Series A 5.70% 2/1/14			2,225,000		2,475,112
	Series A 5.70% 8/1/20			4,320,000		4,885,920
	Series C 5.625% 6/1/18			2,370,000		2,691,040
	(USX Project) 5.00% 11/1/15			1,000,000		1,043,090
•	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Exelon Generation Co.
	Project) Series A 5.00% 12/1/42			1,355,000		1,433,197
	Prattville, Alabama Industrial Development Board
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.70% 3/1/24 (AMT)			1,075,000		1,086,868
•	Sabine, Texas River Authority Pollution Control Revenue
	(TXU Electric Co. Project) Series A 5.50% 5/1/22			1,000,000		955,630
	Sugar Creek, Missouri Industrial Development
	Revenue (Lafarge North America Project)
	Series A 5.65% 6/1/37 (AMT)			500,000		483,365
						63,112,524
Education Revenue Bonds – 5.90%
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project) Series A
	5.25% 6/1/26			1,000,000		974,820
	California Statewide Communities Development Authority
	Student Housing Revenue (Irvine, LLC - UCI East
	Campus) 6.00% 5/15/23			3,150,000		3,439,548

39

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Series B 5.50% 10/1/20		$	1,030,000	$	1,032,318
	Clifton, Texas Higher Education Finance Corporation
	Revenue (Uplift Education) Series A 6.00% 12/1/30			1,100,000		1,139,061
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25			5,000,000		5,797,300
	Fulton County, Georgia Development Authority Revenue
	(Molecular Science Building Project) 5.25% 5/1/21 (NATL-RE)			1,000,000		1,110,200
	Grand Traverse, Michigan Public School Academy Revenue
	5.00% 11/1/36			1,000,000		822,150
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 6.25% 6/15/20			1,180,000		1,184,189
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Nichols College Project) Series C 6.125% 10/1/29			1,000,000		1,005,390
	•(Northeastern University) 4.125% 10/1/37			2,360,000		2,440,924
	Michigan Higher Education Facilities Authority Revenue
	(Kalamazoo College Project) 5.50% 12/1/19			500,000		524,750
	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		1,775,579
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair Properties) 5.75% 6/1/31			2,500,000		2,635,200
	New York State Dormitory Authority Revenue
	(Brooklyn Law School) Series A 5.50% 7/1/18 (RADIAN)			1,000,000		1,061,500
	(Non State Supported Debt - Rockefeller University) Series A
	5.00% 7/1/27			1,055,000		1,218,071
	5.00% 7/1/41			8,070,000		8,910,329
	(Non State Supported Debt - St. Joseph’s College)
	5.25% 7/1/25			1,000,000		1,049,630
	Ohio State Higher Educational Facility Revenue
	(John Carroll University) 5.50% 11/15/18			335,000		362,212
	Ohio State University General Receipts Revenue
	Series B 5.25% 6/1/21			180,000		199,913
	Troy, New York Capital Resource Corporation Revenue
	(Rensselaer Polytechnic) Series B 5.00% 9/1/18			2,500,000		2,876,300
	University of California Series A 5.125% 5/15/20 (AMBAC)			210,000		231,347

40

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	University of Oklahoma Research Facilities Revenue
	5.00% 3/1/23 (AMBAC)		$	1,065,000	$	1,109,975
	University of Virginia General Revenue Series B
	5.00% 6/1/20			1,250,000		1,347,375
	5.00% 6/1/21			1,250,000		1,341,925
						43,590,006
Electric Revenue Bonds – 4.23%
	Metropolitan Government Nashville & Davidson County,
	Tennessee Electric Revenue Series B 5.50% 5/15/14			1,000,000		1,172,780
	Orlando, Florida Utilities Commission Water & Electric
	Revenue 5.25% 10/1/20			555,000		587,712
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37			2,500,000		2,562,325
	Series XX 5.75% 7/1/36			13,000,000		14,117,350
	Rochester, Minnesota Electric Utilities Revenue
	Series C 5.00% 12/1/18 (NATL-RE)			2,000,000		2,358,520
	South Carolina State Public Service Authority Revenue
	Series A 5.125% 1/1/21 (AGM)			1,000,000		1,087,250
	Texas Municipal Power Agency Revenue
	4.00% 9/1/11 (AMBAC)			110,000		110,000
	(Subordinated Lien - Transmission)
	5.00% 9/1/27			1,000,000		1,107,840
	5.00% 9/1/28			2,000,000		2,198,120
	Turlock, California Irrigation District Revenue
	Series A 5.00% 1/1/30			1,000,000		1,069,960
	Vernon, California Electric System Revenue
	Series A 5.125% 8/1/21			4,500,000		4,868,325
						31,240,182
Healthcare Revenue Bonds – 10.30%
	Allegheny County, Pennsylvania Municipal Development
	Authority Revenue (University of Pittsburgh Medical Center)
	Series A 5.00% 9/1/14			4,000,000		4,540,880
	Berks County, Pennsylvania Hospital Authority Revenue
	(Reading Hospital & Medical Center Project)
	Series A-3 5.25% 11/1/24			4,405,000		4,753,656
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			2,250,000		2,615,783

41

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	California Municipal Finance Authority Certificates of
	Participation (Community Hospitals Center)
	5.25% 2/1/24		$	1,350,000	$	1,373,828
	California Statewide Communities Development Authority
	Revenue (Kaiser Permanente) Series A 5.00% 4/1/19			5,325,000		6,067,144
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue (St. Francis
	Medical Center) Series A 5.50% 6/1/34			640,000		654,278
	Cleveland-Cuyahoga County, Ohio Port Authority Revenue
	(Saint Clarence - Geac) Series A 6.125% 5/1/26			715,000		668,840
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Social Ministries)
	6.25% 1/1/24			2,625,000		2,831,325
	Cuyahoga County, Ohio Revenue (Cleveland Clinic
	Health System) Series A 6.00% 1/1/21			1,000,000		1,108,740
	Dauphin County, Pennsylvania General Authority Health
	System Revenue (Pinnacle Health System Project)
	Series A 6.00% 6/1/29			4,500,000		4,908,600
	Georgia Medical Center Hospital Authority Revenue
	(Spring Harbor Green Island Project) 5.25% 7/1/37			2,300,000		1,939,521
	Lycoming County, Pennsylvania Authority Health System
	Revenue (Susquehanna Health System Project) Series A
	5.50% 7/1/28			2,500,000		2,608,150
	Maryland State Health & Higher Education Facilities
	Authority Revenue
	•(John Hopkins Health Systems) 5.00% 5/15/46			790,000		864,086
	(Union Hospital of Cecil County) 5.625% 7/1/32			500,000		508,615
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Caregroup)
	Series E-2 5.375% 7/1/21			1,970,000		2,167,197
	Michigan State Hospital Finance Authority Revenue
	(Oakwood Obligation Group) 5.50% 11/1/14			2,230,000		2,407,843
	Minneapolis, Minnesota Health Care System Revenue
	(Fairview Health) Series A 6.375% 11/15/23			3,710,000		4,383,254
	Minneapolis, Minnesota Revenue (National Marrow Donor
	Program Project)
	5.00% 8/1/16			4,720,000		5,174,536
	5.00% 8/1/18			2,500,000		2,708,175

42

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	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	$	1,822,043
	(Orange Regional Medical Center) 6.50% 12/1/21			2,000,000		2,147,460
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.40% 10/1/27			780,000		773,947
	Ohio State Higher Educational Facilities Commission Revenue
	(Cleveland Clinic Health System Obligation Group) Series A
	5.00% 1/1/17			2,000,000		2,303,780
	5.00% 1/1/18			1,000,000		1,160,710
	Scottsdale, Arizona Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.00% 9/1/19			3,065,000		3,360,313
	South Carolina Jobs-Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.50% 8/1/26			5,000,000		5,223,199
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Nicollet Health Services) Series C 5.50% 7/1/18			4,240,000		4,733,282
	St. Mary Hospital Authority, Pennsylvania Health System
	Revenue (Catholic Health East)
	Series A 5.25% 11/15/16			1,200,000		1,306,620
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/25			1,000,000		1,012,800
						76,128,605
Housing Revenue Bonds – 1.03%
	California Housing Finance Agency Revenue
	(Home Mortgage) Series M 5.95% 8/1/25 (AMT)			2,670,000		2,830,547
	Puerto Rico Housing Finance Authority Subordinate
	(Capital Fund Modernization) 5.50% 12/1/16			4,120,000		4,753,327
						7,583,874
Lease Revenue Bonds – 1.78%
	Capital Trust Agency Florida Revenue (Fort Lauderdale/
	Cargo Acquisition Project) 5.75% 1/1/32 (AMT)			1,750,000		1,600,428
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Refunding Asset-Backed Series A
	5.00% 6/1/18			1,170,000		1,170,468
	5.00% 6/1/21 (AMBAC)			1,000,000		1,001,920

43

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Michigan State Building Authority Revenue Series I
	5.00% 10/15/24		$	2,860,000	$	2,911,766
	5.50% 10/15/18			2,050,000		2,132,451
	New York State Municipal Bond Bank Agency Special
	School Purpose Revenue Series C 5.25% 6/1/22			1,000,000		1,086,480
•	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series J 5.00% 7/1/28			1,000,000		1,039,560
	Tobacco Settlement Financing New York Revenue
	(Asset-Backed) Series B 5.00% 6/1/12			2,060,000		2,214,335
						13,157,408
Local General Obligation Bonds – 6.67%
	Chicago, Illinois Board of Education Refunding Dedicated
	Revenue Series B 5.00% 12/1/23 (AMBAC)			3,500,000		3,867,150
	Chicago, Illinois Modern Schools Across Chicago
	Series J 5.00% 12/1/23 (AMBAC)			2,865,000		3,154,394
	Chicago, Illinois Project & Refunding
	Series C 5.50% 1/1/40 (NATL-RE) (FGIC)			2,940,000		2,978,837
	Dallas, Texas 5.125% 2/15/15			3,000,000		3,532,200
	Fairfax County, Virginia Refunding & Public Improvement
	5.25% 4/1/14			3,500,000		4,080,160
	Gwinnett County, Georgia School District
	5.00% 2/1/11			3,000,000		3,059,610
	5.00% 2/1/21			4,975,000		6,187,806
	Henrico County, Virginia Refunding Public Improvement
	5.00% 7/15/19			4,000,000		4,991,280
	Lansing, Michigan Community College (College Building & Site)
	5.00% 5/1/21 (NATL-RE)			1,325,000		1,455,884
	Los Angeles, California Unified School District
	(Election 1997) Series F 5.00% 7/1/21 (FGIC)			2,880,000		3,150,979
	(Election 2004) Series G
	5.00% 7/1/13 (AMBAC)			2,000,000		2,235,140
	5.00% 7/1/31 (AMBAC)			2,825,000		2,963,792
	Middlesex County, New Jersey Improvement Authority
	Revenue (County Guaranteed Open Space Trust)
	5.25% 9/15/20			1,000,000		1,120,340

44

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	New York City, New York
	Series A-1 5.00% 8/1/19		$	3,500,000	$	4,134,655
	Series G 5.25% 8/1/15			1,000,000		1,135,240
	Series I 5.00% 8/1/21			1,000,000		1,125,650
	Series J 5.50% 6/1/23			100,000		110,190
						49,283,307
§Pre-Refunded/Escrowed to Maturity Bonds – 5.07%
	Benton & Linn Counties, Oregon School District #509J
	5.00% 6/1/21-13 (AGM)			1,000,000		1,121,920
	California State Economic Recovery Series A 5.25% 7/1/14			225,000		264,355
	Cook County, Illinois Series A 5.375% 11/15/21-11 (FGIC)			2,160,000		2,238,365
	Duluth, Minnesota Economic Development
	Authority Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/28-14			1,000,000		1,157,970
	5.50% 2/15/23-14			1,000,000		1,166,500
	Illinois Educational Facilities Authority Student Housing
	Revenue (Educational Advancement -
	University Center Project) 6.00% 5/1/22-12			750,000		827,648
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Lancaster General Hospital Project)
	5.75% 3/15/21-13			1,000,000		1,144,800
	Lunenburg County, Virginia Series B 5.25% 2/1/29-13 (NATL-RE)			715,000		805,305
	Miami-Dade County, Florida Educational Facilities Authority
	Revenue (University of Miami) Series A
	5.00% 4/1/34-14 (AMBAC)			3,500,000		4,010,859
	Michigan State Building Authority Revenue
	(Facilities Program) Series I
	5.00% 10/15/24-11			140,000		147,396
	5.50% 10/15/18-11			125,000		132,304
	Minneapolis, Minnesota Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			500,000		558,675
	New Jersey State Educational Facilities Authority Revenue
	(Georgian Court College Project) Series C 6.50% 7/1/33-13			500,000		584,835
	New Jersey State Transportation Trust Fund Authority
	(Transportation System) Series C 5.50% 6/15/22-13			1,700,000		1,938,629
	New York City, New York Series J 5.50% 6/1/23-13			900,000		1,025,991

45

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	North Texas Health Facilities Development Corporation
	Hospital Revenue (United Regional Health Care System,
	Inc. Project) 6.00% 9/1/23-13		$	1,000,000	$	1,153,450
•	Ohio State Higher Educational Facility Revenue Adjustable
	Medium Term (Kenyon College Project) 4.70% 7/1/37-13			1,000,000		1,119,060
	Ohio State University General Receipts (Ohio State
	University) Series B 5.25% 6/1/21-13			820,000		927,256
	Pennsylvania State First Series 5.125% 1/15/19-11			3,515,000		3,614,509
	Pennsylvania State Higher Educational Facilities
	Authority College & University Revenue
	(Geneva College Project) 6.125% 4/1/22-12			1,000,000		1,090,180
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series J 5.50% 7/1/21-14			1,000,000		1,175,620
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I 5.50% 7/1/23-14			2,000,000		2,354,560
•	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A 5.00% 8/1/39-11			4,500,000		4,696,650
	Southcentral, Pennsylvania General Authority Revenue
	(Welllspan Health Obligated Project)
	5.625% 5/15/26-11			820,000		859,565
	5.625% 5/15/26			180,000		187,848
	University of California Revenue
	Series A 5.125% 5/15/20-13 (AMBAC)			40,000		44,764
	University of North Carolina Revenue (Chapel Hill)
	Series A 5.375% 12/1/14-11			2,000,000		2,078,120
	Virginia State Resource Authority Clean Water Revenue
	(State Revolving Fund) 6.00% 10/1/16-10			1,000,000		1,004,840
						37,431,974
Resource Recovery Revenue Bonds – 0.17%
	Pennsylvania Economic Development Financing Authority
	Resource Recovery Revenue (Subordinate Colver Project)
	Series G 5.125% 12/1/15 (AMT)			1,300,000		1,258,088
						1,258,088
Special Tax Revenue Bonds – 11.61%
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.00% 9/1/16			1,200,000		1,147,836
	Brooklyn Arena Local Development Corporation New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30			5,500,000		6,014,029

46

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	California State Economic Recovery Series A
	5.25% 7/1/14		$	775,000	$	895,234
	5.25% 7/1/21			2,740,000		3,284,548
	Casa Grande, Arizona Excise Tax Revenue
	5.00% 4/1/22 (AMBAC)			1,600,000		1,683,152
	Columbia County, Georgia Sales Tax 5.00% 4/1/16			1,265,000		1,513,256
	Dallas, Texas Convention Center Hotel Development
	Revenue Series A
	5.00% 1/1/24			3,420,000		3,614,222
	5.25% 1/1/23			5,375,000		5,844,883
	Guam Government Limited Obligation Revenue
	(Section 30) Series A
	5.375% 12/1/24			1,750,000		1,867,425
	5.625% 12/1/29			1,185,000		1,259,963
	Hampton, Virginia Convention Center Revenue
	5.25% 1/15/23 (AMBAC)			1,000,000		1,075,780
	Louisiana State Citizens Property Insurance Corporation
	Assessment Revenue Series C-2
	6.75% 6/1/26 (ASSURED GTY)			3,600,000		4,293,000
	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		2,027,920
	Middlesex County, New Jersey Improvement Authority
	Senior Revenue (Heldrich Center Hotel/Conference
	Project) Series A 5.00% 1/1/32			1,000,000		565,680
@	Modesto, California Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36			1,500,000		1,193,880
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.00% 6/15/11 (FGIC)			2,750,000		2,789,408
	5.50% 6/15/31			1,000,000		988,200
	5.625% 6/15/18			1,000,000		1,000,430
•	New York City, New York Transitional Finance Authority
	Revenue Refunding - Future Tax Secured
	Series A 5.50% 11/1/26			1,000,000		1,054,670
	New York State Local Government Assistance Corporation
	Refunding Subordinate Lien Series A 5.00% 4/1/20			3,360,000		4,097,419
	New York State Urban Development Corporation Revenue
	(State Personal Income Tax) Series A-1 5.00% 12/15/28			4,000,000		4,478,640

47

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Oregon Department of Administrative Services Lottery
	Revenue Series A 5.25% 4/1/26		$	2,000,000	$	2,337,420
	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A
	5.25% 8/1/27			6,685,000		7,274,950
	6.125% 8/1/29			2,500,000		2,651,600
	Series C 6.50% 8/1/35			6,500,000		7,474,284
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement (Francis
	Place Redevelopment Project) 5.625% 11/1/25			1,000,000		922,650
@	St. Joseph, Missouri Industrial Development Authority Tax
	Increment Revenue (Shoppes at North Village Project)
	Series A 5.10% 11/1/19			250,000		245,393
	Series B 5.375% 11/1/23			1,000,000		960,270
	Virgin Islands Public Finance Authority Revenue (Senior
	Lien Matching Fund Loan) Series A 5.25% 10/1/22			1,785,000		1,875,232
	Washington State Motor Vehicle Fuel Tax
	Series B 5.00% 7/1/16			4,250,000		5,094,858
	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue
	^(Capital Appreciation-Sales Tax - Subordinate Lien)
	6.07% 6/1/21			5,230,000		3,031,465
	(Sales Tax-2nd Lien-Area B) 5.00% 12/1/20			1,500,000		1,574,655
	Wyoming State Loan & Investment Board Facilities
	Revenue 5.00% 10/1/24			1,550,000		1,664,561
						85,796,913
State General Obligation Bonds – 23.24%
	California State 5.25% 11/1/17			1,000,000		1,109,720
	California State Various Purpose
	5.00% 10/1/18			5,000,000		5,824,100
	6.50% 4/1/33			4,500,000		5,283,540
	California Statewide Communities Development Authority
	Revenue (Purchase Proposition 1A Receivables Program)
	5.00% 6/15/13			2,690,000		2,963,089
	Connecticut State Economic Recovery Series A
	5.00% 1/1/16			4,700,000		5,583,835

48

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Connecticut State Series C 5.00% 11/1/24		$	2,000,000	$	2,347,520
	Georgia State
	5.00% 8/1/12			3,125,000		3,406,563
	5.00% 7/1/17			4,810,000		5,885,420
	Series D 5.00% 7/1/11			6,865,000		7,137,746
	Guam Government Series A 7.00% 11/15/39			1,560,000		1,747,075
	Illinois State Refunding Series B 5.00% 1/1/13			3,475,000		3,732,046
	Maryland State 5.00% 8/1/17			1,500,000		1,798,890
	Maryland State & Local Facilities Loan Capital Improvement
	First Series 5.00% 3/15/19			3,675,000		4,372,148
	Second Series 5.00% 7/15/14			975,000		1,138,137
	Series B 5.00% 3/1/21			7,700,000		9,487,246
	Series C 5.00% 11/1/17			2,750,000		3,386,103
	Massachusetts State Consolidated Loan
	Series A 5.25% 8/1/13			5,000,000		5,687,600
	Series C 5.50% 11/1/15			4,090,000		4,968,655
	Minnesota State 5.00% 6/1/14			900,000		1,045,890
	Minnesota State Various Purpose Series A 5.00% 8/1/19			8,020,000		10,004,789
	Mississippi State Series A 5.00% 10/1/17			4,860,000		5,882,641
	North Carolina State Public Improvement Series A
	5.00% 3/1/12			4,000,000		4,284,160
	5.00% 3/1/15			1,200,000		1,416,264
	North Carolina State Refunding
	Series A 5.00% 3/1/16			6,000,000		7,202,579
	Series B 5.00% 4/1/15			4,000,000		4,730,760
	Ohio State
	Series A 5.00% 6/15/13			3,750,000		4,218,975
	Series D 5.00% 9/15/14			3,500,000		4,085,515
	Pennsylvania State
	5.50% 2/1/13			3,200,000		3,591,680
	Second Series 5.00% 7/1/20			2,300,000		2,840,247
	Second Series A
	5.00% 8/1/13			4,000,000		4,524,880
	5.00% 5/1/21			10,000,000		12,216,399
	Puerto Rico Commonwealth Government Development Bank
	4.75% 12/1/15 (NATL-RE)			4,765,000		4,975,041

49

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/16 (ASSURED GTY)		$	2,110,000	$	2,395,209
	5.25% 7/1/22			3,470,000		3,595,267
	5.25% 7/1/23			1,125,000		1,161,934
	5.50% 7/1/17			4,415,000		4,954,425
•	Puerto Rico Commonwealth Series A 5.00% 7/1/30			1,000,000		1,040,930
•	Puerto Rico Public Finance Corporation Commonwealth
	Appropriation (LOC-Puerto Rico Government Bank)
	Series A 5.75% 8/1/27			1,000,000		1,040,480
	Virginia State
	5.00% 6/1/23			2,000,000		2,349,760
	Series D 5.00% 6/1/19			5,715,000		7,121,690
	Washington State Variable Purpose Series A 5.00% 7/1/16			1,000,000		1,198,790
						171,737,738
Transportation Revenue Bonds – 12.96%
	Broward County, Florida Airport System Revenue
	Series O 5.375% 10/1/29			3,895,000		4,222,219
	Charlotte, North Carolina Airport Revenue
	(Charlotte Douglas) Series A
	5.00% 7/1/13			2,375,000		2,646,059
	5.00% 7/1/15			750,000		863,265
	Chicago, Illinois O’Hare International Airport Revenue
	General-Airport-Third Lien Series A-2
	5.75% 1/1/20 (AGM) (AMT)			1,000,000		1,077,830
	Dallas-Fort Worth, Texas International Airport Revenue Series A
	5.00% 11/1/22			680,000		755,616
	5.00% 11/1/23			750,000		828,375
	5.00% 11/1/24			400,000		439,284
	Idaho Housing & Finance Association Grant Revenue
	(Antic Federal Highway Transportation)
	Series A 5.25% 7/15/21 (ASSURED GTY)			2,760,000		3,225,971
	Maryland State Economic Development Revenue
	(Transportation Facilities Project)
	Series A 5.375% 6/1/25			2,470,000		2,597,057
	Massachusetts State Department of Transportation Metro
	Highway System Revenue Series B 5.00% 1/1/27			8,080,000		8,882,181

50

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Metropolitan, New York Transportation Authority Revenue
	Series A 5.00% 11/15/18		$	2,500,000	$	2,943,725
	Series C 6.50% 11/15/28			2,860,000		3,435,546
	Metropolitan, Washington D.C. Airport Authority Systems
	Revenue Series A
	5.00% 10/1/30			6,000,000		6,564,060
	5.50% 10/1/19 (NATL-RE) (FGIC) (AMT)			1,000,000		1,087,540
	Missouri State Highways & Transportation Commission
	State Road Revenue Second Lien
	5.25% 5/1/23			1,940,000		2,260,236
	New York State Thruway Authority Revenue
	(General Highway and Bridge Trust Fund)
	Series B 5.25% 4/1/13 (AMBAC)			3,300,000		3,699,102
	North Texas Tollway Authority Revenue System (First Tier)
	Series A 6.00% 1/1/20			3,925,000		4,615,643
	•Series E-3 5.75% 1/1/38			2,470,000		2,861,050
	Pennsylvania State Turnpike Commission Revenue
	Series A 5.25% 12/1/20 (AMBAC)			1,230,000		1,412,077
	Phoenix, Arizona Civic Improvement Airport Revenue
	Series A 5.00% 7/1/26			7,500,000		8,174,475
	Regional Transportation District, Colorado Private Activity
	Revenue (Denver Transportation Partners)
	6.50% 1/15/30			4,440,000		4,920,763
	Sacramento County, California Airport System Revenue
	5.00% 7/1/24			1,425,000		1,571,533
	(PFC/Grant) Series D
	5.50% 7/1/28			2,020,000		2,204,891
	5.625% 7/1/29			1,685,000		1,837,897
	Saint Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.125% 7/1/24			3,780,000		4,239,194
	Texas Private Activity Bond Surface Transportation
	Corporate Senior Lien Revenue
	(LBJ Infrastructure) 7.50% 6/30/33			2,650,000		3,041,617
	(Mobility Partners) 7.50% 12/31/31			3,565,000		4,102,210
	Texas State Transportation Commission Highway Fund
	Revenue (First Tier) 5.00% 4/1/18			1,700,000		2,033,948

51

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Triborough, New York Bridge & Tunnel Authority Revenue
	Series A 5.00% 11/15/17		$	1,720,000	$	2,079,102
	•Series B-1 5.00% 11/15/25			4,000,000		4,508,600
	•Series B-3 5.00% 11/15/38			1,800,000		2,095,470
	Virginia Port Authority Commonwealth Port Fund Revenue
	Resolution 5.00% 7/1/12 (AMT)			500,000		535,620
						95,762,156
Water & Sewer Revenue Bonds – 6.81%
	Alabama Water Pollution Control Authority Revenue
	5.50% 8/15/23 (AMBAC)			1,000,000		1,005,950
	Arizona Water Infrastructure Finance Authority Revenue
	(Water Quality) Series A 5.00% 10/1/21			2,430,000		2,890,096
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.00% 11/1/25			2,925,000		3,390,748
	Series B 5.50% 11/1/23 (AGM)			3,000,000		3,425,670
	California State Department Water Resources Power
	Supply Revenue Series L 5.00% 5/1/19			6,000,000		7,319,940
	Florida Water Pollution Control Financing Corporation
	Revenue (Water Pollution Control)
	Series A 5.00% 1/15/25			5,000,000		5,713,450
	King County, Washington Sewer Revenue Refunding
	Series B 5.00% 1/1/14 (NATL-RE)			3,500,000		3,999,345
	Massachusetts State Water Pollution Abatement Trust
	5.00% 8/1/16			2,170,000		2,617,280
	New York City, New York Municipal Water Finance
	Authority Water & Sewer System
	(Second General) Series FF 5.00% 6/15/31			6,500,000		7,196,735
	Series B 5.00% 6/15/21 (AMBAC)			2,085,000		2,385,115
	New York State Environmental Facilities Corporation
	Revenue (State Clean Water & Drinking Water
	Revolving Foundation)
	Series A 5.00% 6/15/22			1,405,000		1,650,622
	Series D 5.00% 9/15/23			3,360,000		3,864,202
	Portland, Oregon Sewer System Revenue (First Lien)
	Series A 5.00% 6/15/18			4,000,000		4,869,800
						50,328,953
	Total Municipal Bonds (cost $680,339,835)					726,411,728

52

		Principal amount			Value
Short-Term Investments – 0.70%
•Variable Rate Demand Notes – 0.70%
	Harris County, Texas Cultural Education Facilities Finance
	Corporation Special Facilities Revenue (Texas Medical Center)
	Series B-1 0.25% 9/1/31 (LOC-JPMorgan Chase Bank)		$	2,900,000	$	2,900,000
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System) Series B-2 0.25% 11/15/35
	(LOC-JPMorgan Chase Bank)			1,350,000		1,350,000
	Pittsburgh, Pennsylvania Water & Sewer Authority
	Water & Sewer System Revenue (First Lien)
	Series B2 0.26% 9/1/39 (LOC-PNC Bank N.A.)			500,000		500,000
	Robbinsdale, Minnesota Revenue (North Memorial)
	Series A-3 0.25% 5/1/33 (LOC-Wells Fargo Bank N.A.)			400,000		400,000
Total Short-Term Investments (cost $5,150,000)						5,150,000
Total Value of Securities – 99.01%
	(cost $685,489,835)					731,561,728
Receivables and Other Assets
	Net of Liabilities – 0.99%					7,322,028
Net Assets Applicable to 60,845,155
	Shares Outstanding – 100.00%				$	738,883,756
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class A ($481,004,143 / 39,707,133 Shares)						$12.11
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class B ($511,176 / 42,240 Shares)						$12.10
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class C ($65,342,502 / 5,396,932 Shares)						$12.11
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Institutional Class ($192,025,935 / 15,698,850 Shares)						$12.23

53

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	698,494,946
Undistributed net investment income		16,225
Accumulated net realized loss on investments		(5,699,308	)
Net unrealized appreciation of investments		46,071,893
Total net assets	$	738,883,756

§	Pre-Refunded/Escrowed to Maturity 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.”
^	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 August 31, 2010. Interest rates reset periodically.
@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $2,399,543, which represented 0.32% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”

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
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

Net Asset Value and Offering Price per Share –
Delaware Tax-Free USA Intermediate Fund
Net asset value Class A (A)	$	12.11
Sales charge (2.75% of offering price) (B)		0.34
Offering price	$	12.45

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

54

Delaware National High-Yield Municipal Bond Fund August 31, 2010

		Principal amount			Value
Municipal Bonds – 95.60%
Corporate Revenue Bonds – 18.02%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp.) 6.875% 5/1/30		$	1,000,000	$	1,103,920
•	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		1,039,640
•	Brazos, Texas Harbor Industrial Development Environmental
	Facilities Revenue (Dow Chemical Co. Project)
	5.90% 5/1/38 (AMT)			190,000		197,211
•	Brazos, Texas River Authority Pollution Control Revenue
	(TXU Energy Co. Project) Series B 6.30% 7/1/32 (AMT)			1,000,000		421,730
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.875% 6/1/47			1,500,000		1,095,345
	6.50% 6/1/47			1,000,000		801,430
	Cass County, Texas Industrial Development Corporation
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.00% 9/1/25 (AMT)			1,000,000		1,018,240
	Clayton County, Georgia Development Authority Special
	Facilities Revenue (Delta Airlines) Series B
	9.00% 6/1/35 (AMT)			1,000,000		1,077,790
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26			750,000		734,340
	Columbus County, North Carolina Industrial Facilities &
	Pollution Control Financing (International Paper Co. Project)
	Series A 5.70% 5/1/34			1,000,000		1,050,720
	De Soto Parish, Louisiana Environmental Improvement
	Revenue (International Paper Co. Project) Series A
	6.35% 2/1/25 (AMT)			1,650,000		1,675,558
	Golden State, California Tobacco Securitization Settlement
	Revenue Refunding Asset-Backed Senior Series A-1
	5.75% 6/1/47			4,400,000		3,295,907
	Gulf Coast, Texas Waste Disposal Authority Revenue
	(Valero Energy Corp. Project) 6.65% 4/1/32 (AMT)			1,000,000		1,014,800
•	Gulf Coast, Texas Waste Disposal Authority Texas Environmental
	Facilities Revenue (BP Products North America)
	2.30% 1/1/26			285,000		277,123
	2.30% 1/1/42			550,000		534,798

55

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

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Hawaii State Department Budget & Finance Special
	Purpose Revenue (Hawaiian Electric Co. Subsidiary)
	6.50% 7/1/39		$	970,000	$	1,080,852
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp.) 6.00% 12/1/26			1,000,000		1,063,080
	Louisiana Local Government Environmental Facilities &
	Community Development Authority Revenue
	(Westlake Chemical Corp.) Series A 6.50% 8/1/29			1,500,000		1,567,785
	Michigan Tobacco Settlement Finance Authority Revenue
	Asset-Backed Series A 6.00% 6/1/48			555,000		422,832
	Mississippi Business Finance Corporation Pollution Control
	Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22			900,000		900,063
	M-S-R Energy Authority, California Gas Revenue Series C
	6.50% 11/1/39			1,000,000		1,165,470
	New Jersey Economic Development Authority Special
	Facility Revenue (Continental Airlines Inc. Project)
	6.40% 9/15/23 (AMT)			1,000,000		987,810
•	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		1,055,280
	(JetBlue Airways Corp. Project) 5.125% 5/15/30 (AMT)			1,000,000		860,160
	New York Liberty Development Corporation Revenue
	Second Priority (Bank of America Tower) Class Z
	5.625% 7/15/47			2,000,000		2,082,460
	Ohio County, Kentucky Pollution Control Revenue (Big
	Rivers Electric Corp. Project) Series A 6.00% 7/15/31			1,250,000		1,306,713
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39			1,000,000		1,146,460
	Petersburg, Indiana Pollution Control Revenue (Indianapolis
	Power & Light Co. Project) 6.375% 11/1/29 (AMT)			1,000,000		1,027,640
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco
	Corp. Project) Series A 6.35% 5/15/35 (AMT)			500,000		496,120
	Salt Verde Financial Corporation, Arizona Gas Revenue
	Senior 5.00% 12/1/37			1,000,000		954,150

56

		Principal amount			Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	St. John Baptist Parish, Louisiana Revenue (Marathon Oil Corp.)
	Series A 5.125% 6/1/37		$	1,000,000	$	1,001,950
	Sugar Creek, Missouri Industrial Development Revenue
	(Lafarge North America Project) Series A
	5.65% 6/1/37 (AMT)			500,000		483,365
	Sweetwater County, Wyoming Solid Waste Disposal
	Revenue (FMC Corp. Project) 5.60% 12/1/35 (AMT)			1,000,000		1,004,280
	Toledo, Lucas County, Ohio Port Authority Development
	Revenue (Toledo Express Airport Project) Series C
	6.375% 11/15/32 (AMT)			1,000,000		1,005,100
						34,950,122
Education Revenue Bonds – 19.06%
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45			1,250,000		1,277,625
	California Statewide Communities Development Authority
	Revenue (California Baptist University Project) Series A
	5.50% 11/1/38			1,000,000		870,290
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40			1,000,000		1,022,920
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)			1,000,000		1,001,110
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Subordinate Series B 6.00% 10/1/35			1,500,000		1,450,875
	Clifton, Texas Higher Education Finance Corporation
	Revenue (Uplift Education) Series A 6.25% 12/1/45			1,000,000		1,028,070
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37			1,850,000		1,339,160
	Idaho Housing & Finance Association Nonprofit Facilities
	Revenue (North Star Charter School Project) Series A
	9.50% 7/1/39			1,000,000		1,175,480
	Indiana State Finance Authority Revenue Educational Facilities
	(Drexel Foundation – Thea Bowman Academy Charter
	School) 7.00% 10/1/39			1,000,000		1,077,890
	(Irvington Community) Series A 9.00% 7/1/39			1,000,000		1,214,760

57

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

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Iowa Higher Education Loan Authority Revenue
	(Private College Facilities) 6.00% 9/1/39		$	1,500,000	$	1,558,620
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39			1,000,000		1,012,400
	Maryland State Economic Development Corporation
	Student Housing Revenue (University of Maryland
	College Park Projects) 5.75% 6/1/33			930,000		960,764
	Maryland State Health & Higher Educational Facilities
	Authority Revenue
	(Patterson Park Public Charter School)
	Series A 6.125% 7/1/45			1,000,000		1,038,220
	@(Washington Christian Academy Project)
	Series A 5.50% 7/1/38			1,170,000		503,135
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Nichols College Project) Series C 6.125% 10/1/29			1,000,000		1,005,390
	(Springfield College) 5.625% 10/15/40			1,000,000		1,052,760
	Michigan Finance Authority Education Facilities Revenue
	(St. Catherine Siena) Series A 8.50% 10/1/45			2,000,000		2,026,200
	Michigan Public Education Facilities Authority Revenue
	(Limited-Obligation - Landmark Academy) 7.00% 12/1/39			1,000,000		1,057,000
	Minnesota State Higher Education Facilities Authority
	Revenue (Bethel University) Series 6-R 5.50% 5/1/37			1,000,000		1,007,120
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42			1,500,000		1,559,084
	New Jersey State Educational Facilities Authority Revenue
	(Fairleigh Dickinson Project) Series C 5.50% 7/1/23			750,000		764,978
	(University of Medicine & Dentistry) Series B 7.50% 12/1/32			1,000,000		1,177,260
	Ohio State Higher Educational Facility Revenue (Otterbein
	College Project) Series A 5.50%12/1/28			950,000		1,048,886
	Oregon State Facilities Authority Revenue (College Housing
	Northwest Project) Series A 5.45% 10/1/32			1,000,000		933,120
	Pennsylvania State Higher Educational Facilities
	Authority Revenue
	(Edinboro University Foundation) 5.80% 7/1/30			1,300,000		1,359,345
	(Edinboro University Foundation Student Housing)
	6.00% 7/1/42			1,000,000		1,035,240
	•Foundation Indiana University) Series A
	0.795% 7/1/39 (XLCA)			2,400,000		1,454,808

58

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Philadelphia, Pennsylvania Authority for Industrial
	Development Revenue (First Philadelphia Charter Project)
	Series A 5.75% 8/15/32		$	745,000	$	722,412
	Philadelphia, Pennsylvania Redevelopment Authority
	Revenue (Beech Student Housing Complex Project)
	Series A 5.50% 7/1/35 (ACA)			1,500,000		1,261,290
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37			1,000,000		824,710
	Troy, New York Capital Resource Corporation Revenue
	(Rensselaer Polytechnic) Series A 5.125% 9/1/40			800,000		831,416
	Utah State Charter School Finance Authority Revenue
	(North Davis Preparatory) 6.375% 7/15/40			1,290,000		1,324,082
						36,976,420
Electric Revenue Bonds – 2.87%
	Puerto Rico Electric Power Authority Revenue Series
	Series XX 5.25% 7/1/40			3,205,000		3,360,346
	Series ZZ 5.25% 7/1/26			2,000,000		2,204,920
						5,565,266
Healthcare Revenue Bonds – 25.05%
	Alhambra, California Revenue (Atherton Baptist Homes)
	Series A 7.625% 1/1/40			1,000,000		1,073,470
	Apple Valley, Minnesota Economic Development Authority
	Health Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40			1,000,000		1,007,470
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence Project)
	5.875% 7/1/30			1,000,000		1,035,020
	Brevard County, Florida Healthcare Facilities Authority
	Health Care Facilities Revenue (Heath First Inc. Project)
	Series B 7.00% 4/1/39			1,000,000		1,129,950
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29			900,000		1,046,313
	California Municipal Finance Authority Revenue
	(Eisenhower Medical Center) Series A 5.75% 7/1/40			1,750,000		1,794,765
	California Statewide Communities Development Authority
	Revenue (Senior Living - Southern California)
	7.25% 11/15/41			500,000		557,515

59

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

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Cleveland-Cuyahoga County, Ohio Port Authority Revenue
	Senior Housing (St. Clarence - Geac) Series A
	6.25% 5/1/38		$	1,000,000	$	881,170
	Colorado Health Facilities Authority Revenue (Christian
	Living Community Project) Series A 5.75% 1/1/37			500,000		454,710
	Connecticut State Health & Educational Facilities Authority
	Revenue (Stamford Hospital) Series I 5.00% 7/1/30			1,400,000		1,458,436
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Ministries Project)
	6.375% 1/1/39			1,000,000		1,050,950
	East Rochester, New York Housing Authority Revenue
	Refunding (Senior Living - Woodland Village Project)
	5.50% 8/1/33			500,000		444,065
	Franklin County, Pennsylvania Industrial Development
	Authority Revenue (Chambersburg Hospital Project)
	5.375% 7/1/42			2,000,000		2,063,839
	Gainesville & Hall County, Georgia Development Authority
	Revenue Senior Living Facilities (Lanier Village Estates Project)
	Series C 7.25% 11/15/29			1,000,000		1,020,610
	Hamden, Connecticut Facilities Revenue (Whitney Center
	Project) Series A 7.75% 1/1/43			1,000,000		1,108,770
	Hawaii Pacific Health Special Purpose Revenue Series A
	5.50% 7/1/40			1,250,000		1,257,438
	Hawaii State Department Budget & Finance Special
	Purpose Senior Living Revenue (Craigside Project)
	Series A 9.00% 11/15/44			1,000,000		1,164,200
	Illinois Finance Authority Revenue
	(Provena Health) Series A 7.75% 8/15/34			1,000,000		1,184,630
	(Silver Cross & Medical Centers) 7.00% 8/15/44			1,000,000		1,093,530
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28			1,000,000		1,002,830
	Kentucky Economic Development Finance Authority
	Hospital Revenue (Owensboro Medical Health System)
	Series A 6.50% 3/1/45			1,000,000		1,077,710
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Brethren Village Project) Series A 6.375% 7/1/30			725,000		733,106
	Lebanon County, Pennsylvania Health Facilities Authority
	Center Revenue (Pleasant View Retirement) Series A
	5.30% 12/15/26			1,000,000		966,060

60

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Maryland State Health & Higher Educational Facilities
	Authority Revenue (Doctors Community Hospital)
	5.75% 7/1/38		$	1,000,000	$	1,003,630
	Medford, Oregon Hospital Facilities Authority Revenue
	(Asante Health System) Series A 5.00% 8/15/40 (AGM)			1,000,000		1,040,810
	Montana Facility Finance Authority Revenue
	(Sisters Leavenworth) Series A 5.25% 1/1/40			1,250,000		1,352,413
	Montgomery County, Pennsylvania Industrial Development
	Authority Revenue (Meeting - Whitemarsh Continuing Care)
	6.25% 2/1/35			1,500,000		1,278,600
	New Jersey Health Care Facilities Financing Authority
	Revenue (St. Josephs Healthcare System) 6.625% 7/1/38			860,000		911,282
	New York State Dormority Authority Revenue Non State
	Supported Debt (Orange Regional Medical Center)
	6.25% 12/1/37			1,000,000		1,020,530
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.60% 10/1/36			1,000,000		960,250
	Orange County, Florida Health Facilities Authority Revenue
	(Orlando Regional Healthcare) Series C 5.25% 10/1/35			1,000,000		1,023,090
	Oregon State Facilities Authority Revenue (Samaritan
	Health Services) Series A 5.25% 10/1/40			1,000,000		1,042,090
	Pennsylvania Economic Development Financing Authority
	Health System Revenue (Evalbert Einstein Healthcare)
	Series A 6.25% 10/15/23			1,000,000		1,102,770
	Richland County, Ohio Hospital Facilities Revenue
	(Medcentral Health System Project) Series B
	6.375% 11/15/30			500,000		506,370
	South Carolina Jobs-Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.75% 8/1/39			1,000,000		1,032,310
	St. Johns County, Florida Industrial Development Authority
	Revenue (Presbyterian Retirement) Series A
	5.875% 8/1/40			1,000,000		1,039,160
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Park Nicollet Health Services) 5.75% 7/1/39			1,000,000		1,027,070
	St. Paul, Minnesota Housing & Redevelopment Authority
	Health Care Facilities Revenue (Health Partners
	Obligation Group Project) 5.25% 5/15/36			3,000,000		2,949,869

61

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

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/30		$	1,000,000	$	999,890
	6.00% 11/15/35			1,340,000		1,304,235
	Travis County, Texas Health Facilities Development
	Corporation Revenue (Westminister Manor Project)
	7.125% 11/1/40			1,000,000		1,046,980
	Washington State Health Care Facilities Authority Revenue
	(Multicare Health System) Series B 6.00% 8/15/39
	(ASSURED GTY)			1,250,000		1,379,075
	Winchester, Virginia Industrial Development Authority
	Residential Care Facility Revenue (Westminster -
	Canterbury Project) Series A 5.30% 1/1/35			1,000,000		933,920
	Yavapai County, Arizona Industrial Development Authority
	Hospital Revenue (Yavapai Regional Medical Center)
	Series A 6.00% 8/1/33			1,000,000		1,018,090
						48,578,991
Housing Revenue Bonds – 0.51%
	North Carolina Housing Finance Agency Homeownership
	Revenue Series 27-A 5.55% 7/1/38 (AMT)			950,000		994,736
						994,736
Lease Revenue Bonds – 4.83%
	Capital Area Cultural Education Facilities Finance
	Corporation Texas Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45			1,000,000		1,032,480
	Guam Government Department of Education Certificates
	of Participation (John F. Kennedy High School)
	Series A 6.875% 12/1/40			2,000,000		2,041,260
	Hudson Yards Infrastructure Corporation New York
	Series A 5.00% 2/15/47			2,000,000		2,005,300
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Branson Landing Project) Series A
	5.50% 12/1/24			720,000		758,498
	New York City, New York Industrial Development Agency
	Revenue (Queens Baseball Stadium) 5.00% 1/1/46 (AMBAC)			1,200,000		1,125,444
	New York City, New York Industrial Development Agency
	Special Airport Facilities (Airis JFK I, LLC. Project)
	Series A 5.50% 7/1/28 (AMT)			905,000		819,740

62

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Oklahoma City, Oklahoma Industrial & Cultural Facilities
	Subordinated (Air Cargo - Obligated Group)
	6.75% 1/1/23 (AMT)		$	1,160,000	$	1,100,701
	Onondaga County, New York Industrial Development
	Authority Revenue Subordinated (Air Cargo Project)
	7.25% 1/1/32 (AMT)			500,000		489,270
						9,372,693
Local General Obligation Bonds – 0.32%
	Henrico County, Virginia Refunding Public Improvement
	5.00% 7/15/19			500,000		623,910
						623,910
§Pre-Refunded/Escrowed to Maturity Bonds – 0.57%
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence
	Project) 6.30% 7/1/32-12			1,000,000		1,109,250
						1,109,250
Special Tax Revenue Bonds – 13.47%
	Anne Arundel County, Maryland Special Obligation
	(National Business Park - North Project) 6.10% 7/1/40			1,500,000		1,533,225
	Baltimore, Maryland Convention Center Hotel Revenue
	Suborinated Series B 5.875% 9/1/39			1,000,000		954,050
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30			1,000,000		1,093,460
	Chicago, Illinois Tax Increment Allocation (Chatham Ridge
	Redevelopment Project) 5.95% 12/15/12			750,000		770,055
	Farms New Kent, Virginia Community Development
	Authority Special Assessment Series C 5.80% 3/1/36			1,000,000		796,630
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35			660,000		325,585
	Lancaster, California Redevelopment Agency Tax Allocation
	(Combined Redevelopment Project Areas) 6.875% 8/1/39			500,000		571,205
	Manchester, Missouri Tax Increment & Transaction Revenue
	Refunding (Highway 141 Manchester Road Project)
	6.875% 11/1/39			1,250,000		1,288,800
	Middlesex County, New Jersey Improvement Authority Senior
	Revenue (Heldrich Center Hotel/Conference Project) Series A
	5.00% 1/1/32			500,000		282,840
	5.125% 1/1/37			870,000		492,124

63

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

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax) 5.75% 6/15/34		$	965,000	$	955,032
	New York State Local Government Assistance Refunding
	Subordinate Lien Series A 5.00% 4/1/20			1,000,000		1,219,470
	Norco, California Redevelopment Agency Tax Allocation
	(Area #1 Project) 6.00% 3/1/36			1,000,000		1,028,790
	Palm Drive Health Care District Parcel Tax Revenue
	5.25% 4/1/30			2,000,000		1,571,800
	Prescott Valley, Arizona Improvement District Special Assessment
	(Sewer Collection System Roadway Repair Project)
	7.90% 1/1/12			80,000		83,279
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			1,855,000		1,893,974
	Puerto Rico Sales Tax Financing Corporation Sales
	Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32			2,030,000		1,754,245
	Series A 5.75% 8/1/37			800,000		857,568
	Series C 5.25% 8/1/41			2,000,000		2,094,399
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement (Francis
	Place Redevelopment Project) 5.625% 11/1/25			1,200,000		1,107,180
@	Southwestern Illinois Development Authority Revenue
	(Local Government Program - Collinsville Limited Project)
	5.35% 3/1/31			500,000		397,600
@	St. Joseph, Missouri Industrial Development Authority
	Tax Increment Revenue (Shoppes at North Village
	Project) Series A
	5.375% 11/1/24			1,000,000		952,740
	5.50% 11/1/27			500,000		470,840
	Virgin Islands Public Finance Authority Revenue Matching
	Fund Loan Note Senior Lien Series A 5.00% 10/1/29			2,000,000		2,065,520
	Winter Garden Village at Fowler Groves Community
	Development District, Florida Special Assessment Revenue
	5.65% 5/1/37			960,000		934,147
^	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue (Capital
	Appreciation-Sales Tax) Subordinate Lien 6.07% 6/1/21			1,090,000		631,797
						26,126,355

64

		Principal amount			Value
Municipal Bonds (continued)
State General Obligation Bonds – 3.78%
	Georgia State Series I 5.00% 7/1/20		$	1,000,000	$	1,252,880
	Guam Government Series A 6.75% 11/15/29			1,565,000		1,724,865
	Minnesota State Variable Series A 5.00% 8/1/24			3,000,000		3,617,879
	Puerto Rico Commonwealth Refunding
	(Public Improvement) Series C 6.00% 7/1/39			675,000		732,706
						7,328,330
Transportation Revenue Bonds – 7.12%
	Branson, Missouri Regional Airport Transportation
	Development District (Airport Project) Series A
	6.00% 7/1/37			500,000		287,330
	Maryland State Economic Development Corporation
	Revenue (Transportation Facilities Project) Series A
	5.75% 6/1/35			1,000,000		1,050,140
	Phoenix, Arizona Civic Improvement Corporation Airport
	Revenue Junior Lien Series A 5.00% 7/1/26			1,920,000		2,092,666
	Regional Transportation District Colorado Private Activity
	(Denver Transit Partners) 6.00% 1/15/41			1,500,000		1,573,920
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series C 6.00% 7/1/41			1,000,000		1,100,110
	St. Louis, Missouri Airport Revenue (Lambert–St. Louis
	International) Series A-1 6.625% 7/1/34			1,090,000		1,190,324
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien
	(LBJ Infrastructure) 7.00% 6/30/40			4,000,000		4,371,160
	(Mobility Partners) 6.875% 12/31/39			1,960,000		2,151,492
						13,817,142
Total Municipal Bonds (cost $178,639,838)						185,443,215
•Short-Term Investments – 1.29%
Variable Rate Demand Notes – 1.29%
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care System Revenue
	(Allina Health System) Series B-1 0.26% 11/15/35
	(LOC–JPMorgan Chase Bank)			1,000,000		1,000,000
	Power County, Idaho Pollution Control Revenue (FMC Corp.
	Project) 0.23% 12/1/10 (LOC–Wachovia Bank N.A.)			1,500,000		1,500,000
Total Short-Term Investments (cost $2,500,000)						2,500,000

65

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

Total Value of Securities – 96.89%
	(cost $181,139,838)	$	187,943,215
Receivables and Other Assets
	Net of Liabilities – 3.11%		6,027,025
Net Assets Applicable to 19,191,615
	Shares Outstanding – 100.00%	$	193,970,240
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
	Class A ($139,627,972 / 13,837,234 Shares)		$10.09
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
	Class B ($1,118,383 / 110,627 Shares)		$10.11
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
	Class C ($36,384,104 / 3,590,512 Shares)		$10.13
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
	Institutional Class ($16,839,781 / 1,653,242 Shares)		$10.19
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)		$	189,460,313
Distribution in excess of net investment income			(4,408	)
Accumulated net realized loss on investments			(2,289,042	)
Net unrealized appreciation of investments			6,803,377
Total net assets		$	193,970,240

@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $2,324,315, which represented 1.20% of the Fund’s net assets. See Note 8 in “Notes to Financial Statements.”
§	Pre-Refunded/Escrowed to Maturity 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 August 31, 2010. Interest rates reset periodically.
^	Zero coupon security. The rate shown is the yield at the time of purchase.

66

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
CDFI – Community Development Financial Institutions
LOC – Letter of Credit
XLCA – Insured by XL Capital Assurance

Net Asset Value and Offering Price Per Share –
Delaware National High Yield Municipal Bond Fund
Net asset value Class A (A)	$	10.09
Sales charge (4.50% of offering price) (B)		0.48
Offering price	$	10.57

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

67

Statements of operations
	Year Ended August 31, 2010

	Delaware				Delaware				Delaware
	Tax-Free				Tax-Free USA				National High-Yield
	USA Fund				Intermediate Fund				Municipal Bond Fund
Investment Income:
Interest		$	32,481,035			$	25,730,182			$	7,081,049
Expenses:
Management fees			3,233,905				2,943,847				636,119
Distribution expenses – Class A			1,363,846				1,439,108				226,838
Distribution expenses – Class B			68,261				6,793				13,590
Distribution expenses – Class C			244,252				514,771				176,573
Dividend disbursing and transfer
agent fees and expenses			413,219				546,095				94,450
Accounting and administration expenses			237,489				236,097				45,990
Registration fees			67,132				115,625				61,353
Reports and statements to shareholders			64,181				65,353				8,289
Legal fees			59,036				59,529				19,099
Audit and tax			41,852				43,665				17,979
Trustees’ fees			34,206				33,723				6,440
Due and services			23,481				19,752				7,818
Insurance fees			22,711				20,229				3,324
Pricing fees			18,935				19,170				10,383
Custodian fees			10,585				10,979				2,095
Consulting fees			8,764				8,563				1,581
Trustees’ expenses			2,565				2,398				406
			5,914,420				6,085,697				1,332,327
Less expenses absorbed or waived			(882,367	)			(561,272	)			(221,486	)
Less waived distribution expenses – Class A			—				(716,263	)			—
Less expense paid indirectly			(505	)			(569	)			(94	)
Total operating expenses			5,031,548				4,807,593				1,110,747
Net Investment Income			27,449,487				20,922,589				5,970,302

68

	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			5,376,303			3,101,284			1,001,919
Net change in unrealized appreciation/
depreciation of investments			33,754,276			31,454,823			13,240,902
Net Realized and Unrealized Gain
on Investments			39,130,579			34,556,107			14,242,821
Net Increase in Net Assets
Resulting from Operations		$	66,580,066		$	55,478,696		$	20,213,123

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

69

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	27,449,487		$	24,505,230
Net realized gain (loss) on investments		5,376,303			(2,838,744	)
Net change in unrealized
appreciation/depreciation of investments		33,754,276			1,152,242
Net increase in net assets resulting from operations		66,580,066			22,818,728
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(26,109,963	)		(23,405,639	)
Class B		(265,094	)		(352,615	)
Class C		(948,392	)		(681,841	)
Institutional Class		(126,036	)		(32	)
		(27,449,485	)		(24,440,127	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		61,819,342			118,535,984
Class B		87,469			70,203
Class C		9,773,385			6,869,985
Institutional Class		10,975,123			1,022
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		13,870,753			12,514,345
Class B		116,921			172,056
Class C		691,115			484,088
Institutional Class		69,762			32
		97,403,870			138,647,715

70

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(67,005,588	)	$	(104,004,049	)
Class B		(3,446,173	)		(3,624,046	)
Class C		(2,360,456	)		(3,541,888	)
Institutional Class		(3,613,385	)		—
		(76,425,602	)		(111,169,983	)
Increase in net assets derived from
capital share transactions		20,978,268			27,477,732
Net Increase in Net Assets		60,108,849			25,856,333
Net Assets:
Beginning of year		565,131,277			539,274,944
End of year	$	625,240,126		$	565,131,277
Undistributed net investment income	$	66,895		$	66,893

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

71

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	20,922,589		$	15,162,112
Net realized gain (loss) on investments		3,101,284			(2,348,573	)
Net change in unrealized
appreciation/depreciation of investments		31,454,823			11,254,947
Net increase in net assets resulting from operations		55,478,696			24,068,486
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(17,243,762	)		(14,270,823	)
Class B		(18,866	)		(25,400	)
Class C		(1,408,918	)		(817,862	)
Institutional Class		(2,251,043	)		(26	)
		(20,922,589	)		(15,114,111	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		240,540,308			235,187,166
Class B		5,061			184,940
Class C		32,062,484			19,373,068
Institutional Class		201,735,695			1,022
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		11,793,891			9,817,928
Class B		12,602			18,329
Class C		1,043,543			581,579
Institutional Class		1,022,951			24
		488,216,535			265,164,056

72

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(257,852,688	)	$	(201,015,285	)
Class B		(403,130	)		(616,595	)
Class C		(11,028,080	)		(5,491,621	)
Institutional Class		(15,480,558	)		—
		(284,764,456	)		(207,123,501	)
Increase in net assets derived from
capital share transactions		203,452,079			58,040,555
Net Increase in Net Assets		238,008,186			66,994,930
Net Assets:
Beginning of year		500,875,570			433,880,640
End of year	$	738,883,756		$	500,875,570
Undistributed net investment income	$	16,225		$	16,225

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

73

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,970,302		$	4,135,883
Net realized gain (loss) on investments		1,001,919			(898,271	)
Net change in unrealized
appreciation/depreciation of investments		13,240,902			(3,755,920	)
Net increase (decrease) in net assets resulting
from operations		20,213,123			(518,308	)
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,828,032	)		(3,657,847	)
Class B		(63,201	)		(110,366	)
Class C		(793,575	)		(335,892	)
Institutional Class		(265,485	)		(47	)
		(5,950,293	)		(4,104,152	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		80,165,567			12,889,514
Class B		25,758			289,157
Class C		28,127,837			2,516,187
Institutional Class		21,613,556			1,016
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		3,020,007			2,236,012
Class B		31,120			50,724
Class C		528,580			220,675
Institutional Class		144,889			45
		133,657,314			18,203,330

74

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(23,646,518	)	$	(10,110,767	)
Class B		(553,592	)		(1,746,311	)
Class C		(2,204,078	)		(1,588,149	)
Institutional Class		(5,576,829	)		—
		(31,981,017	)		(13,445,227	)
Increase in net assets derived from
capital share transactions		101,676,297			4,758,103
Net Increase in Net Assets		115,939,127			135,643
Net Assets:
Beginning of year		78,031,113			77,895,470
End of year	$	193,970,240		$	78,031,113
Undistributed (distributions in excess of)
net investment income	$	(4,408	)	$	13,405

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

75

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 return1

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 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, which are an integral part of the financial statements.

76

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.890		$10.970		$11.230		$11.570		$11.760
0.522		0.479		0.462		0.466		0.458
0.740		(0.081	)	(0.260	)	(0.337	)	(0.186	)
1.262		0.398		0.202		0.129		0.272
(0.522	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)
(0.522	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)
$11.630		$10.890		$10.970		$11.230		$11.570
11.85%		3.91%		1.82%		1.08%		2.42%
$581,931		$536,420		$510,822		$735,584		$656,813
0.80%		0.84%		0.85%		0.87%		0.86%
0.95%		0.97%		0.94%		0.95%		1.00%
4.64%		4.60%		4.13%		4.03%		3.97%
4.49%		4.47%		4.04%		3.95%		3.83%
32%		66%		28%		36%		41%

77

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 return1

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

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

78

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.880		$10.960		$11.230		$11.570		$11.760
0.437		0.399		0.378		0.378		0.370
0.740		(0.080	)	(0.270	)	(0.337	)	(0.186	)
1.177		0.319		0.108		0.041		0.184
(0.437	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)
(0.437	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)
$11.620		$10.880		$10.960		$11.230		$11.570
11.01%		3.13%		0.96%		0.32%		1.63%
$5,373		$8,168		$11,812		$17,286		$22,189
1.56%		1.60%		1.61%		1.63%		1.63%
1.71%		1.73%		1.70%		1.71%		1.73%
3.88%		3.84%		3.37%		3.27%		3.20%
3.73%		3.71%		3.28%		3.19%		3.10%
32%		66%		28%		36%		41%

79

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 return1

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

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

80

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.890		$10.970		$11.230		$11.570		$11.760
0.437		0.399		0.377		0.378		0.370
0.740		(0.080	)	(0.260	)	(0.337	)	(0.186	)
1.177		0.319		0.117		0.041		0.184
(0.437	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)
(0.437	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)
$11.630		$10.890		$10.970		$11.230		$11.570
11.00%		3.13%		0.96%		0.41%		1.63%
$30,302		$20,542		$16,641		$16,871		$15,110
1.56%		1.60%		1.61%		1.63%		1.63%
1.71%		1.73%		1.70%		1.71%		1.73%
3.88%		3.84%		3.37%		3.27%		3.20%
3.73%		3.71%		3.28%		3.19%		3.10%
32%		66%		28%		36%		41%

81

Financial highlights
Delaware Tax-Free USA Fund Institutional Class

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

			12/31/081
	Year Ended		to
	8/31/10		8/31/09
Net asset value, beginning of period	$10.890		$10.020
Income from investment operations:
Net investment income	0.549		0.322
Net realized and unrealized gain on investments	0.830		0.870
Total from investment operations	1.379		1.192
Less dividends and distributions from:
Net investment income	(0.549	)	(0.322	)
Total dividends and distributions	(0.549	)	(0.322	)
Net asset value, end of period	$11.720		$10.890
Total return2	12.84%		12.15%
Ratios and supplemental data:
Net assets, end of period (000 omitted)	$7,634		$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	0.71%		0.73%
Ratio of net investment income to average net assets	4.88%		4.84%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly	4.73%		4.71%
Portfolio turnover	32%		66%	3

1 Date of commencement of operations; ratios 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. 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.

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

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

82

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 return1

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 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, which are an integral part of the financial statements.

84

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.460		$11.250		$11.210		$11.470		$11.610
0.423		0.388		0.383		0.414		0.408
0.650		0.210		0.041		(0.260	)	(0.140	)
1.073		0.598		0.424		0.154		0.268
(0.423	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)
(0.423	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)
$12.110		$11.460		$11.250		$11.210		$11.470
9.53%		5.49%		3.83%		1.34%		2.38%
$481,004		$459,782		$407,729		$306,215		$204,525
0.75%		0.75%		0.75%		0.76%		0.75%
1.00%		1.03%		1.03%		1.03%		1.07%
3.59%		3.51%		3.38%		3.60%		3.56%
3.34%		3.23%		3.10%		3.33%		3.24%
27%		47%		28%		40%		37%

85

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 return1

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

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

86

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.450		$11.240		$11.200		$11.460		$11.610
0.324		0.294		0.287		0.317		0.311
0.650		0.210		0.041		(0.260	)	(0.150	)
0.974		0.504		0.328		0.057		0.161
(0.324	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
(0.324	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
$12.100		$11.450		$11.240		$11.200		$11.460
8.62%		4.61%		2.95%		0.48%		1.43%
$511		$861		$1,272		$1,786		$2,413
1.60%		1.60%		1.60%		1.61%		1.60%
1.70%		1.73%		1.73%		1.73%		1.77%
2.74%		2.66%		2.53%		2.75%		2.71%
2.64%		2.53%		2.40%		2.63%		2.54%
27%		47%		28%		40%		37%

87

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 return1

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

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

88

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.450		$11.240		$11.200		$11.470		$11.610
0.323		0.294		0.287		0.317		0.311
0.660		0.210		0.041		(0.270	)	(0.140	)
0.983		0.504		0.328		0.047		0.171
(0.323	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
(0.323	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
$12.110		$11.450		$11.240		$11.200		$11.470
8.70%		4.60%		2.95%		0.39%		1.52%
$65,343		$40,232		$24,880		$28,237		$28,004
1.60%		1.60%		1.60%		1.61%		1.60%
1.70%		1.73%		1.73%		1.73%		1.77%
2.74%		2.66%		2.53%		2.75%		2.71%
2.64%		2.53%		2.40%		2.63%		2.54%
27%		47%		28%		40%		37%

89

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:
 

			12/31/081
	Year Ended		to
	8/31/10		8/31/09
Net asset value, beginning of period	$11.460		$10.800
Income from investment operations:
Net investment income	0.424		0.269
Net realized and unrealized gain on investments	0.770		0.660
Total from investment operations	1.194		0.929
Less dividends and distributions from:
Net investment income	(0.424	)	(0.269	)
Total dividends and distributions	(0.424	)	(0.269	)
Net asset value, end of period	$12.230		$11.460
Total return2	10.62%		8.68%
Ratios and supplemental data:
Net assets, end of period (000 omitted)	$192,026		$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	0.70%		0.73%
Ratio of net investment income to average net assets	3.74%		3.65%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly	3.64%		3.52%
Portfolio turnover	27%		47%	3

1 Date of commencement of operations; ratios 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. 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.

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

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

90

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 return1

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

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

92

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$8.920		$9.510		$10.030		$10.320		$10.380
0.513		0.505		0.484		0.482		0.477
1.169		(0.595	)	(0.520	)	(0.290	)	(0.060	)
1.682		(0.090	)	(0.036	)	0.192		0.417
(0.512	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)
(0.512	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)
$10.090		$8.920		$9.510		$10.030		$10.320
19.29%		(0.38%	)	(0.37%	)	1.82%		4.15%
$139,628		$68,812		$67,762		$65,143		$68,663
0.85%		0.90%		0.90%		0.91%		0.90%
1.04%		1.08%		1.04%		1.03%		1.02%
5.24%		6.06%		4.94%		4.66%		4.66%
5.05%		5.88%		4.80%		4.54%		4.54%
37%		67%		24%		37%		73%

93

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 return1

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

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

94

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$8.940		$9.530		$10.050		$10.350		$10.400
0.442		0.440		0.410		0.404		0.400
1.169		(0.592	)	(0.520	)	(0.300	)	(0.050	)
1.611		(0.152	)	(0.110	)	0.104		0.350
(0.441	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)
(0.441	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)
$10.110		$8.940		$9.530		$10.050		$10.350
18.37%		(1.11%	)	(1.12%	)	0.96%		3.47%
$1,118		$1,448		$3,135		$5,972		$9,519
1.60%		1.65%		1.65%		1.66%		1.65%
1.79%		1.83%		1.79%		1.78%		1.77%
4.49%		5.31%		4.19%		3.91%		3.91%
4.30%		5.13%		4.05%		3.79%		3.79%
37%		67%		24%		37%		73%

95

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 return1

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

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

96

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$8.960		$9.550		$10.070		$10.360		$10.420
0.442		0.441		0.410		0.404		0.400
1.169		(0.592	)	(0.520	)	(0.290	)	(0.060	)
1.611		(0.151	)	(0.110	)	0.114		0.340
(0.441	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)
(0.441	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)
$10.130		$8.960		$9.550		$10.070		$10.360
18.33%		(1.11%	)	(1.12%	)	1.06%		3.36%
$36,384		$7,770		$6,998		$4,848		$5,332
1.60%		1.65%		1.65%		1.66%		1.65%
1.79%		1.83%		1.79%		1.78%		1.77%
4.49%		5.31%		4.19%		3.91%		3.91%
4.30%		5.13%		4.05%		3.79%		3.79%
37%		67%		24%		37%		73%

97

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:

				12/31/081
	Year Ended			to
	8/31/10			8/31/09
Net asset value, beginning of period	$	8.930		$	7.590
Income from investment operations:
Net investment income		0.534			0.342
Net realized and unrealized gain on investments		1.259			1.338
Total from investment operations		1.793			1.680
Less dividends and distributions from:
Net investment income		(0.533	)		(0.340	)
Total dividends and distributions		(0.533	)		(0.340	)
Net asset value, end of period	$	10.190		$	8.930
Total return2		20.55	%		22.55	%
Ratios and supplemental data:
Net assets, end of period (000 omitted)	$	16,840			$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		0.79	%		0.85	%
Ratio of net investment income to average net assets		5.49	%		6.41	%
Ratio of net investment income to average net assets
prior to fees waived and expense paid indirectly		5.30	%		6.21	%
Portfolio turnover		37	%		67	%3

1	Date of commencement of operations; ratios 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. 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.
3	Portfolio turnover is representative of the Fund for the entire year.

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

98

Notes to financial statements
Delaware National Tax-Free Funds	August 31, 2010

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 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.

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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. These securities will generally be categorized as Level 2 investments. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. These securities will generally be categorized as Level 3 investments.

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, 2007 – August 31, 2010), 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.

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

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Notes to financial statements
Delaware National Tax-Free Funds

1. Significant Accounting Policies (continued)

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. Such dividends and distributions, if any, are recorded on ex-dividend date.

The Funds 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 year ended August 31, 2010.

The Funds may receive earnings credits from their transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statement of operations with the corresponding offset shown as “expense paid indirectly.” For the year ended August 31, 2010, the Funds earned the following under this agreement:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$505	$569	$94

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

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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, until such time as the voluntary expense cap is 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 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 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
$29,839	$29,672	$5,783

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

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Notes to financial statements
Delaware National Tax-Free Funds

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

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 December 31, 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.

At August 31, 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		$238,990	$258,025	$44,821
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC		15,994	23,166	4,555
Distribution fees payable
to DDLP		148,260	114,688	55,613
Other expenses payable to
DMC and affiliates*		22,620	38,861	8,478

* 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 year ended August 31, 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
$23,918	$26,202	$5,742

For the year ended August 31, 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
$49,648	$52,896	$63,515

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For the year ended August 31, 2010, DDLP received gross CDSC commissions on redemption of each Fund’s Class A, Class B and Class C shares, respectively. These commissions were entirely used to offset up-front commissions previously paid by DDLP to broker-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		$	0		$	0		$	0
Class B			5,373			1,270			375
Class C			1,246			9,750			1,140

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 Trust. These officers and Trustees are paid no compensation by the Funds.

3. Investments

For the year ended August 31, 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		$210,009,192		$357,482,598		$135,622,590
Sales		185,863,574		161,060,661		42,872,980

At August 31, 2010, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes 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		$	577,301,239			$	685,489,835			$	181,086,675
Aggregate unrealized
appreciation		$	53,679,485			$	48,474,876			$	10,587,411
Aggregate unrealized
depreciation			(10,407,199	)			(2,402,983	)			(3,730,871	)
Net unrealized
appreciation		$	43,272,286			$	46,071,893			$	6,856,540

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

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Notes to financial statements
Delaware National Tax-Free Funds

3. Investments (continued)

liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1	–	inputs are quoted prices in active markets for identical investments
Level 2	–	other observable inputs (including, but not limited to quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3	–	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments)

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of August 31, 2010:

	Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
Municipal Bonds	USA Fund	USA Intermediate Fund	Municipal Bond Fund
Level 2	$620,573,525	$731,561,728	$187,943,215

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

In January 2010, the FASB issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduced new disclosure requirements and clarified 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 fiscal year ending August 31, 2011 and interim periods therein. Management has evaluated the impact of this update on its current disclosures and determined that there were no transfers of securities between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the 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 years ended August 31, 2010 and 2009 was as follows:

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	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Year ended 8/31/10
Tax-exempt income		$	26,946,651		$	20,788,197		$	5,854,908
Ordinary income			502,834			134,392			95,385
Total		$	27,449,485		$	20,922,589		$	5,950,293
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

5. Components of Net Assets on a Tax Basis

As of August 31, 2010, the 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		$	589,352,077			$	698,494,946			$	189,460,313
Distributions payable			(690,821	)			(567,550	)			(214,145	)
Undistributed tax-exempt
income			757,716				583,775				209,737
Capital loss carryforward			(7,451,132	)			(5,699,308	)			(2,342,205	)
Unrealized appreciation
of investments			43,272,286				46,071,893				6,856,540
Net assets		$	625,240,126			$	738,883,756			$	193,970,240

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 and tax treatment of distributions payable.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on debt instruments. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2010, the Delaware National High-Yield Municipal Bond Fund recorded the following reclassifications:

Undistributed net investment income	$(37,822	)
Accumulated net realized gain	37,822

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Notes to financial statements
Delaware National Tax-Free Funds

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

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, 2010 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
2011		$	—		$	—		$	631,027
2012			—			—			980,742
2015			—			—			355,701
2017			7,451,132			5,699,308			374,735
Total		$	7,451,132		$	5,699,308		$	2,342,205

For the year ended August 31, 2010, $3,865,444, $2,575,842, and $437,365 of capital loss carryforwards were utilized for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund, respectively.

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
	Year Ended				Year Ended				Year Ended
	8/31/10		8/31/09		8/31/10		8/31/09		8/31/10		8/31/09
Shares sold:
Class A	5,499,136		11,607,343		20,561,913		21,288,665		8,272,964		1,543,457
Class B	7,807		7,042		427		16,760		2,718		36,455
Class C	866,259		662,828		2,735,842		1,748,249		2,898,321		298,334
Institutional Class	962,114		102		16,911,847		95		2,202,319		134
Shares issued upon reinvestment of dividends and distributions:
Class A	1,229,783		1,198,786		1,005,351		885,386		313,502		269,659
Class B	10,383		16,525		1,078		1,659		3,238		6,137
Class C	61,213		46,310		88,888		52,363		54,352		26,475
Institutional Class	6,078		3		85,605		2		14,620		5
	8,642,773		13,538,939		41,390,951		23,993,179		13,762,034		2,180,656
Shares repurchased:
Class A	(5,953,210)		(10,115,087	)	(21,987,886)		(18,287,462	)	(2,460,064	)	(1,230,554	)
Class B	(306,421	)	(350,505	)	(34,462	)	(56,382	)	(57,274	)	(209,703	)
Class C	(208,581	)	(339,849	)	(941,095	)	(500,042	)	(228,990	)	(190,984	)
Institutional Class	(316,816	)	—		(1,298,699	)	—		(563,836	)	—
	(6,785,028	)	(10,805,441	)	(24,262,142)		(18,843,886	)	(3,310,164)		(1,631,241	)
Net increase	1,857,745		2,733,498		17,128,809		5,149,293		10,451,870		549,415

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For the years ended August 31, 2010 and 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.

		Year Ended				Year Ended
		8/31/10				8/31/09
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
USA Fund	104,388	104,295	$	1,173,700	161,252	161,199	$	1,668,006
Delaware Tax-Free
USA Intermediate Fund	8,148	8,141		95,087	23,056	23,046		253,527
Delaware National High-Yield
Municipal Bond Fund	8,566	8,583		81,217	26,693	26,746		211,723

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 August 31, 2010, or at any time during the year then ended.

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. 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 August 31, 2010, 9.18% of the Delaware Tax-Free USA Fund’s net assets, 10.67% of the Delaware Tax-Free USA Intermediate Fund’s net assets, and 3.74% 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.

As of August 31, 2010, the Tax-Free USA Fund invested in municipal bonds issued by the state of New York and the territory of Puerto Rico which constituted approximately 13% and 10%, respectively, of the Fund’s portfolio. As of August 31, 2010, the Tax-Free USA Intermediate Fund invested in municipal bonds issued by the state of New York which constituted approximately 11%

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Notes to financial statements
Delaware National Tax-Free Funds

8. Credit and Market Risk (continued)

of the Fund’s portfolio. These investments could make each Fund more sensitive to economic conditions in those states than other more geographically diversified national municipal income funds.

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 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

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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 August 31, 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.

10. Subsequent Events

Management has determined no material events or transactions occurred subsequent to August 31, 2010 that would require recognition or disclosure in the Funds’ financial statements.

11. Tax Information (Unaudited)

The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.

For the fiscal year ended August 31, 2010, each Fund designates distributions paid during the year as follows:

	(A)		(B)
	Ordinary Income		Tax-Exempt		Total
	Distributions		Distributions		Distributions
	(Tax Basis)		(Tax Basis)		(Tax Basis)
Delaware Tax-Free USA Fund	1.83	%	98.17	%	100.00	%
Delaware Tax-Free USA Intermediate Fund	0.64	%	99.36	%	100.00	%
Delaware National High-Yield Municipal Bond Fund	1.60	%	98.40	%	100.00	%

(A) and (B) are based on a percentage of each Fund’s total distributions.

111

Report of independent
registered public accounting firm

To the Board of Trustees of Delaware Group® Tax-Free Fund and Voyageur Mutual Funds and the Shareholders of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund (constituting Delaware Group Tax-Free Fund) and Delaware National High-Yield Municipal Bond Fund (one of the series constituting Voyageur Mutual Funds) (hereafter collectively referred to as the “Funds”) at August 31, 2010, and the results of their operations, the changes in each of their net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights for each of the four years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 19, 2010

112

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

Change in Independent Registered Public Accounting Firm

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

113

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees
Patrick P. Coyne1	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

1 Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

114

for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Patrick P. Coyne has served in	81	Director
various executive capacities		Kaydon Corp.
at different times at
Delaware Investments.2		Board of Governors Member
		Investment Company
		Institute (ICI)
		Finance Committee Member
		St. John Vianney Roman
		Catholic Church
		Board of Trustees
		Agnes Irwin School
		Member of Investment
		Committee
		Cradle of Liberty Council,
		BSA
		(2007 – 2010)

2 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent.

115

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees
Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947
John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960
Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938
Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

116

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Private Investor	81	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
Investment Manager		Chairman of Investment
Morgan Stanley & Co.		Committee
(January 1984–March 2004)		Pennsylvania Academy of
		Fine Arts
		Investment Committee and
		Governance Committee
		Member
		Pennsylvania Horticultural
		Society
President	81	Director
Drexel University		Community Health Systems
(August 2010–Present)
		Director — Ecore
President		International
Franklin & Marshall College		(2009-2010)
(July 2002–July 2010)
		Director — Allied
Executive Vice President		Barton Securities Holdings
University of Pennsylvania		(2005 to 2008)
(April 1995–June 2002)
Founder and	81	None
Managing Director
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)
Chief Investment Officer	81	None
Assurant, Inc. (Insurance)
(2002–2004)

117

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Ann R. Leven	Trustee	Since October 1989
2005 Market Street
Philadelphia, PA 19103
November 1940
Thomas F. Madison	Trustee	Since May 19973
2005 Market Street
Philadelphia, PA 19103
February 1936

3 In 1997, several funds managed by Voyageur Fund Managers, Inc. (the “Voyageur Funds”) were incorporated into the Delaware Investments Family of Funds. Mr. Madison served as a director of the Voyageur Funds from 1993 until 1997.

118

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Consultant	81	Director and Audit
ARL Associates		Committee Chair –
(Financial Planning)		Systemax Inc.
(1983–Present)		(2001 – 2009)
		Director and Audit
		Committee Chairperson –
		Andy Warhol Foundation
		(1999 – 2007)
President and	81	Director and Chair of
Chief Executive Officer		Compensation Committee,
MLM Partners, Inc.		Governance Committee
(Small Business Investing		Member
and Consulting)		CenterPoint Energy
(January 1993–Present)
		Lead Director and Chair of
		Audit and Governance
		Committees, Member of
		Compensation Committee
		Digital River, Inc.
		Director and Chair of
		Governance Committee,
		Audit Committee
		Member
		Rimage Corporation
		Director and Chair of
		Compensation Committee
		Spanlink Communications
		Lead Director and Member of
		Compensation and
		Governance Committees
		Valmont Industries, Inc.
		(1987 – 2010)

119

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Thomas F. Madison
2005 Market Street
Philadelphia, PA 19103
February 1936
Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948
J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

120

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
		Director
		Banner Health
		(1996 to 2007)
Vice President and Treasurer	81	Director
(January 2006–Present)		Okabena Company
Vice President — Mergers & Acquisitions
(January 2003–January 2006), and
Vice President
(July 1995–January 2003)
3M Corporation
Founder	81	Director and Audit
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
Founder		Director
Sutton Asset Management		Oxigene, Inc.
(Hedge Fund)		(2003 to 2008)
(September 1996–Present)

121

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers
David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005
Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 25, 2007
Philadelphia, PA 19103
October 1972
David P. O’Connor	Senior Vice President,	Senior Vice President,
2005 Market Street	General Counsel,	General Counsel, and
Philadelphia, PA 19103	and Chief Legal Officer	Chief Legal Officer
February 1966		since October 2005
Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

122

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
David F. Connor has served as	81	None4
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.
Daniel V. Geatens has served	81	None4
in various capacities at
different times at
Delaware Investments.
David P. O’Connor has served in	81	None4
various executive and legal
capacities at different times
at Delaware Investments.
Richard Salus has served in	81	None4
various executive capacities
at different times at
Delaware Investments.

4 David F. Connor, Daniel V. Geatens, David P. O’Connor, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant.

123

About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA John A. Fry President Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY 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 annual 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 fact sheet 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.

124

Annual 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

August 31, 2010

Fixed income mutual funds 

This annual 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 annual 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 Funds 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

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

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

Table of contents
Portfolio management review	1
Performance summaries	8
Disclosure of Fund expenses	23
Sector allocations	27
Statements of net assets	32
Statements of operations	72
Statements of changes in net assets	74
Financial highlights	84
Notes to financial statements	114
Report of independent registered
public accounting firm	128
Other Fund information	129
Board of trustees/directors and
officers addendum	130
About the organization	140

Unless otherwise noted, views expressed herein are current as of Aug. 31, 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.

Portfolio management review
Delaware multiple state tax-free funds	September 7, 2010

Performance preview (for the year ended August 31, 2010)
Delaware Tax-Free Arizona Fund (Class A shares)	1-year return	+10.27%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper Arizona Municipal Debt Funds Average	1-year return	+11.53%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Arizona Fund, please see the table on page 8.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.
The Lipper Arizona Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Arizona (double tax-exempt) or a city in Arizona (triple tax-exempt).

Delaware Tax-Free California Fund (Class A shares)	1-year return	+13.92%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper California Municipal Debt Funds Average	1-year return	+11.99%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free California Fund, please see the table on page 11.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper California Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in California (double tax-exempt) or a city in California (triple tax-exempt).

Delaware Tax-Free Colorado Fund (Class A shares)	1-year return	+10.74%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper Colorado Municipal Debt Funds Average	1-year return	+10.15%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Colorado Fund, please see the table on page 14.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper Colorado Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in Colorado (double tax-exempt) or a city in Colorado (triple tax-exempt).

1

Portfolio management review
Delaware multiple state tax-free funds

Delaware Tax-Free Idaho Fund (Class A shares)	1-year return	+9.44%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper Other States Municipal Debt Funds Average	1-year return	+9.29%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free Idaho Fund, please see the table on page 17.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper Other States Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation on a specified city or state basis. 

Delaware Tax-Free New York Fund (Class A shares)	1-year return	+11.02%
Barclays Capital Municipal Bond Index (benchmark)	1-year return	+9.78%
Lipper New York Municipal Debt Funds Average	1-year return	+10.67%

Past performance does not guarantee future results.
For complete, annualized performance for Delaware Tax-Free New York Fund, please see the table on page 20.
The performance of Class A shares excludes the applicable sales charge and reflects the reinvestment of all distributions.
Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index.

The Lipper New York Municipal Debt Funds Average compares funds that limit assets to those securities that are exempt from taxation in New York (double tax-exempt) or a city in New York (triple tax-exempt).

Economic environment

The Funds’ fiscal year, which ended Aug. 31, 2010, was one of continued economic challenges. When the period began, however, financial markets were bolstered by a broad-based sense of optimism about the economy:

• During the third quarter of 2009, the U.S. economy, as measured by gross domestic product (GDP), rose by an annualized 1.6%, marking the economy’s first quarterly expansion in more than a year.
• Growth in the fourth quarter of 2009 was even stronger. Annualized GDP expansion of 5.0% during those three months represented the fastest quarterly growth for the U.S. economy since early 2006.
  Source: U.S. Commerce Department.

As the reporting period progressed, however, indications began to mount that the U.S. economic environment was slowing once again. For example:

• Unemployment in the United States remained stubbornly high. The jobless rate peaked at 10.1% in October 2009 and finished the Funds’ fiscal period at a still-elevated 9.6%.
  (Source: U.S. Labor Department.)
• The rate of expansion in GDP decreased to 3.7% in the first three months of 2010, followed by a sluggish 1.6% in the year’s second quarter. This trend led some economists to worry about the potential for a “double-dip” recession. (Source: U.S. Commerce Department.)
• Investors focused their attention on the high levels of sovereign debt across the developed world (and particularly

2

in Greece), fearing that reductions in government spending could exacerbate declining economic growth.

• The U.S. housing market, weighed down by significant foreclosure activity and declining sales, continued to struggle.

Encouragingly, inflation remained low throughout the reporting period, with the Consumer Price Index rising by just 1.2% for the 12 months ending July 31, 2010 (the most recent data available as this report was being prepared). With inflation well under control, the Federal Reserve Board (the Fed) kept its benchmark short-term interest rate under 1%, where it has stood since the depths of the financial crisis in late 2008. The low rates were part of the Fed’s ongoing effort to stimulate economic growth — an effort that included a program announced late in the period to buy significant quantities of U.S. government debt.

Economic environment by state

We believe the effect of Arizona’s housing downturn has been significant, leading to a recovery period that may be longer than that of most other states. The unemployment rate in July 2010 was 9.6%, slightly above the national rate of 9.5%, while Arizona’s personal income per capita is below the national level. In addition, revenues have declined here more than in most other states, and preliminary fiscal 2010 revenues are approximately 1% below estimates. Amid falling revenue, Arizona has turned to borrowing to cover its operating costs.

The state’s fiscal 2011 budget faces a gap of $3 billion. Measures intended to close the gap include expenditure cuts, deficit bonds, payment delays, fund shifts, and a one-cent per-dollar increase in the sales tax for three years. (Sources: www.bls.gov, Moody’s Investors Service.)

California’s unemployment rate as of July 2010 was 12.3%, well above the national rate of 9.5%. California enjoys a large, diverse, and wealthy economy that mirrors that of the nation. However, its progressive tax structure makes the state tax-revenue system vulnerable to small shifts in income levels at the high end. The state has been hard hit by the national housing slowdown, and while most housing indicators remain negative, there has been some improvement. (Sources: www.bls.gov, Controller Monthly Reports, Legislative Analyst’s Office.)

Colorado’s economy is arguably quite diverse, with below-average employment concentration in manufacturing and strength in a variety of service sectors. Its economic outlook is favorable, reflecting a growing population and workforce, relatively low costs of living and doing business, and a mix of technology and service industries. While nonfarm employment lagged the rest of the nation, the unemployment rate in July 2010 was 8.0%, well below the national rate of 9.5%. (Sources: www.bls.gov, Colorado Office of State Planning and Budgeting, Moody’s Investors Service.)

In Idaho, the unemployment rate as of July 2010 was 8.8%, below the national rate. Idaho’s economy has expanded and diversified in recent years. However, the state continues to have an above-average dependence on the natural resource sector. Idaho ended fiscal 2010 approximately $8 million short. However, this figure represented a marked improvement over estimates earlier this year, when the deficit appeared on track to exceed $50 million. The State Board of Examiners decided to handle the shortfall in a way that we believe should have little effect on most government agencies, by pulling

3

Portfolio management review
Delaware multiple state tax-free funds

money from the permanent building fund. (Sources: U.S. Labor Department, Idaho Division of Management, State of Idaho, Office of the State Controller.)

In New York, the unemployment rate in July 2010 was 8.2%. Job losses in the state have not been as severe as in the nation as a whole. However, employment figures themselves are not as meaningful here as they are in other states, due to New York’s high reliance on taxes paid by individuals in the financial services industry. The state has lost roughly 55,000 finance jobs in the recent economic downturn. Fiscal 2010 general fund receipts totaled $37.1 billion, representing a 2.3% decline from fiscal 2009. (Sources: U.S. Labor Department, New York Division of Budget, Moody’s Investors Service.)

Municipal bond market environment

While the sluggish economic backdrop hampered the U.S. equity market, the effect on the municipal market was relatively muted because of a favorable balance between supply and demand. Despite concerns about state and local government finances, tax-exempt bonds of all maturity lengths and credit-quality ratings gained ground throughout most of the reporting period.

Overall, investor demand for tax-exempt securities remained generally strong, driven in part by a growing expectation of higher income-tax rates in the future, while at the same time supply of municipal bonds became increasingly limited. A major factor behind this shift between supply and demand can be attributed to the introduction of the Build America Bond program, a feature of the February 2009 federal economic stimulus package. As a result of this program, many bond issues that traditionally would have come to market as tax-exempt municipal bonds were instead issued as taxable debt. This left far fewer new issues in the traditional tax-exempt municipal bond market, providing a very positive backdrop for the municipal bond asset class and driving the Funds’ returns throughout the fiscal period. (Source: Barclays Capital.)

Although all types of municipal bonds earned positive returns during the reporting period, those with longer maturity dates and lower credit ratings generally outperformed their shorter-maturity and higher-rated counterparts by a wide margin, as investors tended to favor longer-dated securities — despite their higher interest rate risk — for the potential to earn more income.

A similar situation occurred with regard to credit quality. Many investors increasingly exhibited a willingness to buy higher-yielding bonds, even if it meant taking on more credit risk.

Commitment to our longtime approach

In all five Funds profiled in this report, we continued to follow our basic investment philosophy and approach. We believe successful bond investing requires rigorous credit analysis. In our opinion, there is no substitute for thorough credit research. On a bond-by-bond basis, we scrutinize each security that the Funds hold — or consider holding. It is important to us to ensure our comfort level with a bond issue’s financial outlook and to feel confident that any risks are likely offset by the potential income the security provides. Through this strategy, we believe we can find opportunities that other investors with less experience and research diligence might overlook.

Our investment approach often leads us to an increased focus on bonds with credit ratings of BBB and A — which represent the lower

4

tier of the investment grade bond universe — and a relative de-emphasis of higher-rated bonds, such as those rated AAA and AA. We generally feel that there tends to be an opportunity for us to obtain the most value for shareholders from the lower-rated types of investment grade municipal bonds.

As the Funds’ fiscal year progressed, our tactics for managing the Funds became more selective as credit spreads narrowed — meaning that the premium paid to investors for buying riskier, lower-rated bonds declined — and bond prices rose. As these trends continued and interest rates on municipal bonds fell during the period, many of the bonds the Funds already held offered considerably higher levels of income than bonds that became available during the reporting period. For example, the Funds had purchased a number of bonds at the peak of the financial crisis, when tax-exempt municipal bond yields were extremely high because of investors’ concerns about the solvency of bond issuers. Careful research allowed us to eventually get comfortable with the credit quality of these issues. As a result, we were able to add some highly rated municipal bonds paying yields that, at the end of the Funds’ fiscal year, were comparable to what lower-rated A and even some BBB securities were offering.

Because bonds in the marketplace were paying the lower prevailing yields, we felt it was important to look at potential new purchases with an even more discerning eye. It often made little sense to us to sell higher-yielding bonds already in the Funds’ portfolio holdings in favor of new bonds reflecting the lower-interest-rate environment. We often said throughout 2010 that new bonds had to “fight their way into the portfolio.” In other words, we had to feel confident that new bonds offered sufficient value opportunities relative to their potential risks.

When we did add new securities to the Funds’ portfolio holdings as a result of Fund inflows (to accommodate cash generated by maturing bonds, for instance) we continued to follow our “bottom-up” investment strategy, carefully evaluating each issuer to become familiar with its financial position and to assess whether the bond’s return potential was commensurate with the risks involved with holding the securities.

Market conditions in California periodically offered attractive but temporary buying opportunities. California was a prolific issuer of debt during the Fund’s fiscal year, as the state sought to manage its serious budget challenges. This gave us the opportunity to buy existing bonds at what we considered attractive prices. We took advantage of this situation twice during the fiscal year, and in both cases our willingness to invest against the grain was rewarded: we generated additional income within Delaware Tax-Free California Fund, and the bonds the team selected for purchase subsequently rose off of their depressed levels.

Notable sectors and securities

As we mentioned above, lower-rated bonds generally outperformed higher-rated issues throughout the majority of the Funds’ fiscal year. As a result, many of the individual bonds that made the strongest performance contributions across all five Funds were lower-rated issues. The best-performing sectors were often those with a significant amount of lower-rated bond issuance. In

5

Portfolio management review
Delaware multiple state tax-free funds

a favorable market environment for tax-exempt debt, even the worst performers tended to earn modestly positive returns. Generally speaking, the bonds that lagged the overall municipal market were those with higher credit ratings (meaning less credit risk) and shorter maturities (meaning less interest rate risk). With interest rates declining, municipal bond investors looked for ways to capture additional levels of income, leading them toward lower-rated, longer-dated bonds.

Within Delaware Tax-Free Colorado Fund and Delaware Tax-Free Arizona Fund, the best-performing group overall was industrial development revenue bonds, a sector that featured a number of securities benefiting from their lower credit ratings and relatively higher yields. The top contributors overall within Delaware Tax-Free California Fund included special-tax bonds, which are projects funded by a dedicated tax stream. The lease sector made the strongest performance contribution to total return within Delaware Tax-Free New York Fund, while utility bonds did the best as a group within Delaware Tax-Free Idaho Fund.

Across all five Funds, nearly all of the most notable individual performers were lower-rated bonds. Within Delaware Tax-Free Arizona Fund, for example, a Pima County Industrial Development Authority revenue bond for a charter school in Tucson was among the strongest performers. The bond, rated BBB- by S&P, benefited from its lower credit rating in an environment of increased risk tolerance.

Delaware Tax-Free Arizona Fund and Delaware Tax-Free Idaho Fund were supported by a Puerto Rico sales-tax bond. Bonds issued by U.S. territories are generally fully tax-exempt for residents of all 50 states. Territorial bonds can help provide valuable portfolio diversification, especially in Funds for smaller states such as Idaho, where it can be difficult to obtain a wide variety of securities. We were attracted to the relatively high yields offered by this bond, and felt confident about the territory’s financial situation. Of course, diversification may not protect against market risk.

Delaware Tax-Free Idaho Fund also benefited from BB-rated (by S&P) Idaho Housing and Finance Association charter school bonds. Despite these securities’ below-investment-grade credit rating, we were very comfortable with their credit quality and felt they offered favorable performance potential relative to their risk.

Topping the list of performers within Delaware Tax-Free California Fund were California Statewide Community Development Authority bonds for Valley Care Hospital, an unrated bond issue with a 2031 maturity date. Land-development district bonds issued by the Fremont Community Development District aided the Fund as well.

Delaware Tax-Free Colorado Fund saw strong results from its holdings in nonrated Colorado Health Facility for Christian Living Communities continuing care retirement community (CCRC) bonds. CCRCs are residential communities for seniors, ranging from independent-living to skilled-nursing-care facilities. In addition, Puerto Rico infrastructure bonds rated BBB+ by S&P with a maturity date of 2046 were among the strongest performers within the Fund.

The leading performers within Delaware Tax-Free New York Fund included industrial development revenue bonds issued on behalf of ARRIS, a communications

6

technology company, and New York Industrial Authority bonds for Orange County Regional Medical Center.

As we mentioned, even the weakest-performing bonds across the Funds posted modestly positive results — an indication of the highly favorable market conditions enjoyed by municipal bond investors during the Funds’ fiscal year. The sector making the smallest contribution to total return across the Funds was prerefunded bonds. These bonds are short-maturity issues, and, because they are typically backed by U.S. Treasury bonds or other very high-quality securities, they are considered high in credit quality. In an environment in which investors preferred lower-quality to higher-quality bonds, and longer-dated to shorter-dated issues, prerefunded bonds were left behind.

Within Delaware Tax-Free Arizona Fund, for example, the weakest contributors included prerefunded University of Arizona bonds due in June 2021. Colorado Educational and Cultural Facility bonds for the University of Denver, due in March 2012, were among the weakest contributors within Delaware Tax-Free Colorado Fund; University of Idaho bonds coming due in April 2031 brought up the rear within Delaware Tax-Free Idaho Fund, while Albany Parking Authority bonds, scheduled to mature in July 2025, were among the weakest contributors within Delaware Tax-Free New York Fund.

Delaware Tax-Free California Fund was most hindered by California Community Development Authority multifamily housing bonds. Although these were not prerefunded bonds, these AAA-rated securities faced a near-term call date, so they lagged other bonds whose prices reflected a longer expected holding period.

7

Performance summaries
Delaware Tax-Free Arizona Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
	1 year		5 years		10 years
Class A (Est. April 1, 1991)
Excluding sales charge		+10.27%		+4.48%		+5.19%
Including sales charge		+5.33%		+3.53%		+4.70%
Class B (Est. March 10, 1995)
Excluding sales charge		+9.35%		+3.68%		+4.56%
Including sales charge		+5.35%		+3.42%		+4.56%
Class C (Est. May 26, 1994)
Excluding sales charge		+9.43%		+3.71%		+4.42%
Including sales charge		+8.43%		+3.71%		+4.42%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during some of the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summaries” section of this report are found on pages 8 through 10.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

8

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.91%	1.66%	1.66%
(without fee waivers)
Net expenses	0.91%	1.66%	1.66%
(including fee waivers, if any)
Type of waiver	n/a	n/a	n/a

9

Performance summaries
Delaware Tax-Free Arizona Fund

Performance of a $10,000 investment

Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free Arizona Fund — Class A Shares	$9,550	$15,822

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summaries” section of this report, which includes pages 8 through 10.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	VAZIX	928916204
Class B	DVABX	928928639
Class C	DVACX	928916501

10

Delaware Tax-Free California Fund August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
		1 year	5 years	10 years
Class A (Est. March 2, 1995)
Excluding sales charge		+13.92%	+4.42%	+5.66%
Including sales charge		+8.80%	+3.46%	+5.18%
Class B (Est. Aug. 23, 1995)
Excluding sales charge		+12.93%	+3.63%	+5.01%
Including sales charge		+8.93%	+3.37%	+5.01%
Class C (Est. April 9, 1996)
Excluding sales charge		+13.06%	+3.65%	+4.87%
Including sales charge		+12.06%	+3.65%	+4.87%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summaries” section of this report are found on pages 11 through 13.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus.

11

Performance summaries
Delaware Tax-Free California Fund

Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has voluntarily agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses from exceeding 0.57% of the Fund’s average daily net assets. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	0.97%	1.72%	1.72%
(without fee waivers)
Net expenses	0.82%	1.57%	1.57%
(including fee waivers, if any)
Type of waiver	Voluntary	Voluntary	Voluntary

12

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free California Fund — Class A Shares	$9,550	$16,543

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summaries” section of this report, which includes pages 11 through 13.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	DVTAX	928928829
Class B	DVTFX	928928811
Class C	DVFTX	928928795

13

Performance summaries
Delaware Tax-Free Colorado Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
		1 year	5 years	10 years
Class A (Est. April 23, 1987)
Excluding sales charge		+10.74%	+4.48%	+5.22%
Including sales charge		+5.75%	+3.52%	+4.74%
Class B (Est. March 22, 1995)
Excluding sales charge		+9.91%	+3.72%	+4.59%
Including sales charge		+5.91%	+3.46%	+4.59%
Class C (Est. May 6, 1994)
Excluding sales charge		+9.90%	+3.71%	+4.45%
Including sales charge		+8.90%	+3.71%	+4.45%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during some of the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summaries” section of this report are found on pages 14 through 16.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus. Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00%

14

to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

The Fund may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that an underlying security or securities index moves in the opposite direction from what the portfolio manager anticipated. A derivative transaction depends upon the counterparties’ ability to fulfill their contractual obligations.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart.

Fund expense ratios	Class A		Class B		Class C
Total annual operating expenses	0.95	%	1.70	%	1.70	%
(without fee waivers)
Net expenses	0.95	%	1.70	%	1.70	%
(including fee waivers, if any)
Type of waiver	n/a		n/a		n/a

15

Performance summaries
Delaware Tax-Free Colorado Fund

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free Colorado Fund — Class A Shares	$9,550	$15,870

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summaries” section of this report, which includes pages 14 through 16.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	VCTFX	928920107
Class B	DVBTX	928928787
Class C	DVCTX	92907R101

16

Delaware Tax-Free Idaho Fund August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
		1 year	5 years	10 years
Class A (Est. Jan. 4, 1995)
Excluding sales charge		+9.44%	+4.80%	+5.51%
Including sales charge		+4.53%	+3.83%	+5.02%
Class B (Est. March 16, 1995)
Excluding sales charge		+8.64%	+4.03%	+4.87%
Including sales charge		+4.64%	+3.77%	+4.87%
Class C (Est. Jan. 11, 1995)
Excluding sales charge		+8.63%	+4.00%	+4.72%
Including sales charge		+7.63%	+4.00%	+4.72%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during some of the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summaries” section of this report are found on pages 17 through 19.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus.

17

Performance summaries
Delaware Tax-Free Idaho Fund

Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart.

Fund expense ratios	Class A		Class B		Class C
Total annual operating expenses	0.96	%	1.71	%	1.71	%
(without fee waivers)
Net expenses	0.96	%	1.71	%	1.71	%
(including fee waivers, if any)
Type of waiver	n/a		n/a		n/a

18

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free Idaho Fund — Class A Shares	$9,550	$16,307

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summaries” section of this report, which includes pages 17 through 19.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	VIDAX	928928704
Class B	DVTIX	928928746
Class C	DVICX	928928803

19

Performance summaries
Delaware Tax-Free New York Fund	August 31, 2010

The performance data quoted represent past performance; past performance does not guarantee future results. Investment return and principal value will fluctuate so your shares, when redeemed, may be worth more or less than their original cost. Please obtain the performance data current for the most recent month end by calling 800 523-1918 or visiting our Web site at www.delawareinvestments.com/performance. Current performance may be lower or higher than the performance data quoted.

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

Fund performance	Average annual total returns through Aug. 31, 2010
		1 year	5 years	10 years
Class A (Est. Nov. 6, 1987)
Excluding sales charge		+11.02%	+5.02%	+5.84%
Including sales charge		+6.05%	+4.07%	+5.36%
Class B (Est. Nov. 14, 1994)
Excluding sales charge		+10.21%	+4.25%	+5.20%
Including sales charge		+6.21%	+3.99%	+5.20%
Class C (Est. April 26, 1995)
Excluding sales charge		+10.20%	+4.25%	+5.05%
Including sales charge		+9.20%	+4.25%	+5.05%

Returns reflect the reinvestment of all distributions and any applicable sales charges as noted in the following paragraphs.

Performance for Class B and C shares, excluding sales charges, assumes either that contingent deferred sales charges did not apply or that the investment was not redeemed.

Expense limitations were in effect for certain classes during the periods shown in the “Fund performance” chart and in the “Performance of a $10,000 investment” chart. The current expenses for each class are listed on the “Fund expense ratios” chart. (Note that all charts and graphs referred to in the “Performance summaries” section of this report are found on pages 20 through 22.) Performance would have been lower had the expense limitations not been in effect.

The Fund offers Class A, B, and C shares.

Class A shares are sold with a maximum front-end sales charge of up to 4.50%, and have an annual distribution and service fee of up to 0.25% of average daily net assets.

Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges as described in the prospectus.

20

Please see the prospectus for additional information on Class B purchase and sales charges. Class B shares have a contingent deferred sales charge that declines from 4.00% to zero depending on the period of time the shares are held.

Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

Ten-year performance figures for Class B shares reflect conversion to Class A shares after approximately eight years.

Class C shares are sold with a contingent deferred sales charge of 1.00% if redeemed during the first 12 months. They are also subject to an annual distribution and service fee of up to 1.00% of average daily net assets.

The “Fund performance” table and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes the shareholder would pay on Fund distributions or redemptions of Fund shares.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

Substantially all dividend income derived from tax-free funds is exempt from federal income tax. Some income may be subject to the federal alternative minimum tax (AMT) that applies to certain investors. Capital gains, if any, are taxable.

Funds that invest primarily in one state may be more susceptible to the economic, regulatory, and other factors of that state than funds that invest more broadly.

The Fund’s expense ratios, as described in the most recent prospectus, are disclosed in the following “Fund expense ratios” chart. Delaware Investments has voluntarily agreed to reimburse certain expenses and/or waive certain fees in order to prevent total fund operating expenses from exceeding 0.55% of the Fund’s average daily net assets. Please see the most recent prospectus and any applicable supplement(s) for additional information on these fee waivers and/or reimbursements.

Fund expense ratios	Class A	Class B	Class C
Total annual operating expenses	1.10%	1.85%	1.85%
(without fee waivers)
Net expenses	0.80%	1.55%	1.55%
(including fee waivers, if any)
Type of waiver	Voluntary	Voluntary	Voluntary

21

Performance summaries
Delaware Tax-Free New York Fund

Performance of a $10,000 investment
Average annual total returns from Aug. 31, 2000, through Aug. 31, 2010

For period beginning Aug. 31, 2000, through Aug. 31, 2010		Starting value	Ending value
	Barclays Capital Municipal Bond Index	$10,000	$17,400
	Delaware Tax-Free New York Fund — Class A Shares	$9,550	$16,832

The chart assumes $10,000 invested in the Fund on Aug. 31, 2000, and includes the effect of a 4.50% front-end sales charge and the reinvestment of all distributions. Please note additional details on these fees in the “Performance summaries” section of this report, which includes pages 20 through 22.

The chart also assumes $10,000 invested in the Barclays Capital Municipal Bond Index as of Aug. 31, 2000.

The Barclays Capital Municipal Bond Index measures the total return performance of the long-term, investment grade tax-exempt bond market.

Index performance returns do not reflect any management fees, transaction costs, or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance is not a guarantee of future results.

Performance of other Fund classes will vary due to different charges and expenses.

The “Fund performance” chart and the “Performance of a $10,000 investment” graph do not reflect the deduction of taxes shareholders would pay on Fund distributions or redemptions of Fund shares.

	Nasdaq symbols	CUSIPs
Class A	FTNYX	928928274
Class B	DVTNX	928928266
Class C	DVFNX	928928258

22

Disclosure of Fund expenses
For the six-month period March 1, 2010 to August 31, 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 six-month period from March 1, 2010 to August 31, 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 Delaware Tax-Free California Fund and Delaware Tax-Free New York Fund’s expenses shown in the tables reflect fee waivers in effect. The expenses shown in each table assume reinvestment of all dividends and distributions.

23

Disclosure of Fund expenses

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/10		8/31/10		Expense Ratio		3/1/10 to 8/31/10*
Actual Fund return
Class A	$	1,000.00	$	1,057.50	0.91	%		$	4.72
Class B		1,000.00		1,052.60	1.66	%			8.59
Class C		1,000.00		1,053.40	1.66	%			8.59
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.62	0.91	%		$	4.63
Class B		1,000.00		1,016.84	1.66	%			8.44
Class C		1,000.00		1,016.84	1.66	%			8.44

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/10		8/31/10		Expense Ratio		3/1/10 to 8/31/10*
Actual Fund return
Class A	$	1,000.00	$	1,071.50	0.82	%		$	4.28
Class B		1,000.00		1,066.30	1.57	%			8.18
Class C		1,000.00		1,067.40	1.57	%			8.18
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,021.07	0.82	%		$	4.18
Class B		1,000.00		1,017.29	1.57	%			7.98
Class C		1,000.00		1,017.29	1.57	%			7.98

24

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/10		8/31/10		Expense Ratio		3/1/10 to 8/31/10*
Actual Fund return
Class A	$	1,000.00	$	1,056.50	0.95	%		$	4.92
Class B		1,000.00		1,053.50	1.70	%			8.80
Class C		1,000.00		1,053.40	1.70	%			8.80
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.42	0.95	%		$	4.84
Class B		1,000.00		1,016.64	1.70	%			8.64
Class C		1,000.00		1,016.64	1.70	%			8.64

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/10		8/31/10		Expense Ratio		3/1/10 to 8/31/10*
Actual Fund return
Class A	$	1,000.00	$	1,052.30	0.95	%		$	4.91
Class B		1,000.00		1,048.40	1.70	%			8.78
Class C		1,000.00		1,048.40	1.70	%			8.78
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.42	0.95	%		$	4.84
Class B		1,000.00		1,016.64	1.70	%			8.64
Class C		1,000.00		1,016.64	1.70	%			8.64

25

Disclosure of Fund expenses

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	3/1/10		8/31/10		Expense Ratio		3/1/10 to 8/31/10*
Actual Fund return
Class A	$	1,000.00	$	1,057.50	0.80	%		$	4.15
Class B		1,000.00		1,053.70	1.55	%			8.02
Class C		1,000.00		1,053.60	1.55	%			8.02
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,021.17	0.80	%		$	4.08
Class B		1,000.00		1,017.39	1.55	%			7.88
Class C		1,000.00		1,017.39	1.55	%			7.88

*“Expenses Paid During Period” are equal to a Fund’s annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

26

Sector allocations
Delaware Tax-Free Arizona Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	99.13	%
Corporate Revenue Bonds	8.27	%
Education Revenue Bonds	11.69	%
Electric Revenue Bonds	8.17	%
Healthcare Revenue Bonds	12.74	%
Housing Revenue Bond	0.01	%
Lease Revenue Bonds	10.58	%
Local General Obligation Bonds	4.55	%
Pre-Refunded Bonds	8.44	%
Special Tax Revenue Bonds	13.51	%
State & Territory General Obligation Bonds	6.38	%
Transportation Revenue Bonds	6.67	%
Water & Sewer Revenue Bonds	8.12	%
Short-Term Investment	1.05	%
Total Value of Securities	100.18	%
Liabilities Net of Receivables and Other Assets	(0.18	%)
Total Net Assets	100.00	%

27

Sector allocations
Delaware Tax-Free California Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	97.06	%
Corporate Revenue Bonds	6.58	%
Education Revenue Bonds	9.13	%
Electric Revenue Bonds	6.65	%
Healthcare Revenue Bonds	14.59	%
Housing Revenue Bonds	6.61	%
Lease Revenue Bonds	7.35	%
Local General Obligation Bonds	5.88	%
Pre-Refunded Bonds	3.83	%
Resource Recovery Revenue Bond	1.17	%
Special Tax Revenue Bonds	20.02	%
State General Obligation Bonds	8.33	%
Transportation Revenue Bonds	4.51	%
Water & Sewer Revenue Bonds	2.41	%
Short-Term Investments	1.59	%
Total Value of Securities	98.65	%
Receivables and Other Assets Net of Liabilities	1.35	%
Total Net Assets	100.00	%

28

Delaware Tax-Free Colorado Fund As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.63	%
Corporate Revenue Bond	1.14	%
Education Revenue Bonds	11.68	%
Electric Revenue Bonds	8.51	%
Healthcare Revenue Bonds	23.22	%
Housing Revenue Bonds	2.10	%
Lease Revenue Bonds	3.59	%
Local General Obligation Bonds	13.38	%
Pre-Refunded/Escrowed to Maturity Bonds	11.92	%
Special Tax Revenue Bonds	10.52	%
State & Territory General Obligation Bonds	5.78	%
Transportation Revenue Bonds	4.49	%
Water & Sewer Revenue Bonds	2.30	%
Short-Term Investment	0.15	%
Total Value of Securities	98.78	%
Receivables and Other Assets Net of Liabilities	1.22	%
Total Net Assets	100.00	%

29

Sector allocations
Delaware Tax-Free Idaho Fund	As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	98.42	%
Corporate Revenue Bonds	3.43	%
Education Revenue Bonds	10.95	%
Electric Revenue Bonds	5.85	%
Healthcare Revenue Bonds	3.62	%
Housing Revenue Bonds	5.97	%
Lease Revenue Bonds	3.12	%
Local General Obligation Bonds	20.04	%
Pre-Refunded Bonds	12.29	%
Special Tax Revenue Bonds	17.27	%
State General Obligation Bonds	6.41	%
Transportation Revenue Bonds	7.06	%
Water & Sewer Revenue Bonds	2.41	%
Short-Term Investments	2.11	%
Total Value of Securities	100.53	%
Liabilities Net of Receivables and Other Assets	(0.53	%)
Total Net Assets	100.00	%

30

Delaware Tax-Free New York Fund As of August 31, 2010

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

Sector	Percentage of net assets
Municipal Bonds	95.94	%
Corporate Revenue Bonds	6.47	%
Education Revenue Bonds	23.75	%
Electric Revenue Bonds	5.44	%
Healthcare Revenue Bonds	8.89	%
Housing Revenue Bonds	1.48	%
Lease Revenue Bonds	8.45	%
Local General Obligation Bonds	3.56	%
Pre-Refunded Bonds	4.44	%
Special Tax Revenue Bonds	19.77	%
State & Territory General Obligation Bonds	4.50	%
Transportation Revenue Bonds	6.69	%
Water & Sewer Revenue Bonds	2.50	%
Short-Term Investments	2.31	%
Total Value of Securities	98.25	%
Receivables and Other Assets Net of Liabilities	1.75	%
Total Net Assets	100.00	%

31

Statements of net assets
Delaware Tax-Free Arizona Fund	August 31, 2010

		Principal amount			Value
Municipal Bonds – 99.13%
Corporate Revenue Bonds – 8.27%
	Maricopa County Pollution Control (Palo Verde Project)
	Series A 5.05% 5/1/29 (AMBAC)		$	2,000,000	$	2,000,060
	•Series B 5.20% 6/1/43			1,500,000		1,562,775
•	Navajo County Pollution Control Revenue
	(Arizona Public Services-Cholla)
	Series D 5.75% 6/1/34			1,500,000		1,626,570
	Pima County Industrial Development Authority Pollution
	Control Revenue (Tucson Electric Power-San Juan)
	5.75% 9/1/29			750,000		776,805
	Series A 4.95% 10/1/20			1,500,000		1,592,925
	Puerto Rico Port Authority Revenue (American Airlines)
	Series A 6.25% 6/1/26			1,115,000		956,949
	Salt Verde Financial Corporation, Senior Gas Revenue
	5.00% 12/1/37			1,395,000		1,331,039
						9,847,123
Education Revenue Bonds – 11.69%
	Arizona Board of Regents
	University of Arizona System Revenue Series A
	5.00% 6/1/21			1,255,000		1,457,770
	5.00% 6/1/39			1,500,000		1,595,490
	Arizona Health Facilities Authority Healthcare Education
	Revenue (Kirksville College)
	5.125% 1/1/30			1,500,000		1,538,505
	Arizona State University Certificates of Participation
	(Research Infrastructure Project)
	5.00% 9/1/30 (AMBAC)			2,000,000		2,055,380
	Arizona State University Energy Management Revenue
	(Arizona State University-Tempe Campus II Project)
	4.50% 7/1/24			1,385,000		1,476,382
	Energy Management Services Conservation Revenue
	(Arizona State University-Main Campus Project)
	5.25% 7/1/17 (NATL-RE)			1,500,000		1,614,510
	Glendale Industrial Development Authority Revenue
	(Midwestern University) 5.125% 5/15/40			1,200,000		1,228,956
	Pima County Industrial Development Authority Educational
	Revenue (Tucson Country Day School Project)
	5.00% 6/1/37			1,000,000		833,940

32

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	South Campus Group Student Housing Revenue
	(Arizona State University-South Campus Project)
	5.625% 9/1/35 (NATL-RE)		$	1,000,000	$	1,016,520
	Tucson Industrial Development Authority Lease Revenue
	(University of Arizona-Marshall Foundation)
	Series A 5.00% 7/15/27 (AMBAC)			1,000,000		1,016,100
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series A 5.125% 6/1/21 (AMBAC)			85,000		90,595
						13,924,148
Electric Revenue Bonds – 8.17%
	Mesa Utilities System Revenue 5.00% 7/1/18 (NATL-RE) (FGIC)			2,150,000		2,563,875
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28			1,430,000		1,500,742
	Series WW 5.50% 7/1/38			600,000		635,952
	Series XX 5.25% 7/1/40			1,250,000		1,310,588
	Series ZZ 5.25% 7/1/26			1,500,000		1,653,690
	Salt River Project Agricultural Improvement &
	Power District Electric System Revenue Series B
	5.00% 1/1/31 (NATL-RE) (IBC)			2,000,000		2,067,240
						9,732,087
Healthcare Revenue Bonds – 12.74%
	Arizona Health Facilities Authority Revenue
	(Catholic Healthcare West) Series D 5.00% 7/1/28			1,500,000		1,540,860
	Glendale Industrial Development Authority Hospital
	Revenue (John C. Lincoln Health) 5.00% 12/1/42			2,500,000		2,369,700
	Maricopa County Industrial Development Authority
	Health Facilities Revenue
	(Catholic Healthcare West) Series A
	5.50% 7/1/26			1,000,000		1,040,320
	6.00% 7/1/39			2,500,000		2,713,725
	Scottsdale Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.25% 9/1/30			1,250,000		1,274,275
	University Medical Center Hospital Revenue
	5.00% 7/1/35			1,500,000		1,466,505
	6.50% 7/1/39			2,500,000		2,740,625

33

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Yavapai County Industrial Development Authority
	Revenue (Yavapai Regional Medical Center)
	Series A 5.25% 8/1/21 (RADIAN)		$	2,000,000	$	2,036,120
						15,182,130
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		15,016
						15,016
Lease Revenue Bonds – 10.58%
	Arizona Game & Fish Department &
	Community Beneficial Interest Certificates
	(Administration Building Project) 5.00% 7/1/32			1,300,000		1,330,602
	Arizona State Certificates of Participation Department
	Administration Series A 5.25% 10/1/25 (AGM)			1,500,000		1,666,920
	Marana Municipal Property Facilities Revenue
	5.00% 7/1/28 (AMBAC)			575,000		597,339
	Maricopa County Industrial Development Authority
	Correctional Contract Revenue (Phoenix West Prison)
	Series B 5.375% 7/1/22 (ACA)			1,000,000		1,006,590
	Phoenix Industrial Development Authority Lease
	Revenue (Capitol Mall II, LLC Project)
	5.00% 9/15/28 (AMBAC)			2,000,000		2,018,820
	Pima County Industrial Development Authority Lease
	Revenue Metro Police Facility (Nevada Project) Series A
	5.25% 7/1/31			1,500,000		1,595,775
	5.375% 7/1/39			1,500,000		1,582,395
	Pinal County Certificates of Participation 5.00% 12/1/29			1,300,000		1,313,780
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series D
	5.25% 7/1/27			470,000		475,527
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series B 5.00% 6/1/31 (AMBAC)			1,000,000		1,016,090
						12,603,838

34

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds – 4.55%
	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	$	1,810,000
	Series B 5.375% 7/1/28			1,350,000		1,504,994
	DC Ranch Community Facilities 5.00% 7/15/27 (AMBAC)			1,000,000		1,008,850
•	Gila County Unified School District #10
	(Payson School Improvement Project of 2006) Series A
	5.25% 7/1/27 (AMBAC)			1,000,000		1,090,890
						5,414,734
§Pre-Refunded Bonds – 8.44%
	Phoenix Variable Purpose Series B 5.00% 7/1/27-12			2,435,000		2,518,715
	Pinal County Certificates of Participation
	5.125% 6/1/21-11 (AMBAC)			2,000,000		2,092,420
	Puerto Rico Commonwealth Highway &
	Transportation Authority Revenue Series K
	5.00% 7/1/35-15			750,000		893,348
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I
	5.25% 7/1/33-14			5,000		5,839
	Southern Arizona Capital Facilities Finance Revenue
	(University of Arizona Project)
	5.10% 9/1/33-12 (NATL-RE)			3,250,000		3,557,255
	University of Arizona Certificates of Participation
	(University of Arizona Project) Series A
	5.125% 6/1/21-12 (AMBAC)			915,000		989,170
						10,056,747
Special Tax Revenue Bonds – 13.51%
	Arizona Tourism & Sports Authority Tax Revenue
	(Multipurpose Stadium Facilities) Series A
	5.00% 7/1/28 (NATL-RE)			1,345,000		1,364,234
	Flagstaff Aspen Place Sawmill Improvement District
	Revenue 5.00% 1/1/32			1,350,000		1,350,864
	Gilbert Public Facilities Municipal Property
	Revenue 5.00% 7/1/25			1,250,000		1,385,338
	Marana Tangerine Farm Road Improvement District
	Revenue 4.60% 1/1/26			924,000		915,924
	Mesa Street & Highway Revenue 5.00% 7/1/20 (AGM)			1,000,000		1,181,800

35

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Peoria Municipal Development Authority Transition
	Sales Tax, Excise Tax & State Shared Revenue
	(Senior Lien & Subordinated Lien) 4.50% 1/1/16		$	1,000,000	$	1,138,610
	Phoenix Civic Improvement Transition Excise Tax Revenue
	(Light Rail Project) 5.00% 7/1/20 (AMBAC)			1,570,000		1,744,458
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue
	Series C 5.50% 7/1/25 (AMBAC)			1,955,000		2,185,084
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate
	ΩCapital Appreciation Series A 6.75% 8/1/32			3,045,000		2,631,367
	Series A 5.75% 8/1/37			1,190,000		1,275,632
	Series C 6.00% 8/1/39			835,000		924,403
						16,097,714
State & Territory General Obligation Bonds – 6.38%
	Guam Government Series A
	6.75% 11/15/29			115,000		126,747
	7.00% 11/15/39			1,250,000		1,399,900
	Puerto Rico Commonwealth Public Improvement
	Series A 5.50% 7/1/19			1,300,000		1,473,316
	Series C 6.00% 7/1/39			1,010,000		1,096,345
	Un-Refunded Balance Series A
	5.125% 7/1/30 (AGM)			480,000		483,216
	5.125% 7/1/31			2,000,000		2,009,180
Virgin Islands Public Finance Authority Revenue
	(Gross Receipts Taxes Loan Note) 5.00% 10/1/31 (ACA)			1,000,000		1,012,840
						7,601,544
Transportation Revenue Bonds – 6.67%
	Arizona State Transportation Board Grant Anticipation
	Notes Series A 5.00% 7/1/14			1,250,000		1,447,538
	Arizona State Transportation Board Highway
	Revenue Subordinated Series A 5.00% 7/1/23			1,000,000		1,120,760
	Phoenix Civic Improvement Airport Revenue
	(Junior Lien) Series A 5.25% 7/1/33			1,250,000		1,340,188
	(Senior Lien) Series B
	5.25% 7/1/27 (NATL-RE) (FGIC) (AMT)			1,000,000		1,015,370
	5.25% 7/1/32 (NATL-RE) (FGIC) (AMT)			3,000,000		3,025,559
						7,949,415

36

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 8.12%
	Phoenix Civic Improvement Corporation
	Waste System Revenue (Junior Lien)
	5.00% 7/1/26 (NATL-RE) (FGIC)		$	3,750,000	$	3,933,750
	Phoenix Civic Improvement Wastewater Corporation
	Systems Revenue (Junior Lien)
	5.00% 7/1/19 (NATL-RE)			2,750,000		3,217,885
	Refunding 5.00% 7/1/24 (NATL-RE) (FGIC)			1,000,000		1,030,800
	Scottsdale Water & Sewer Revenue 5.25% 7/1/22			1,150,000		1,488,595
						9,671,030
Total Municipal Bonds (cost $110,512,406)						118,095,526
		Number of shares
Short-Term Investment – 1.05%
Money Market Instrument – 1.05%
	Federated Arizona Municipal Cash Trust			1,245,703		1,245,703
Total Short-Term Investment (cost $1,245,703)						1,245,703
Total Value of Securities – 100.18%
	(cost $111,758,109)					119,341,229
Liabilities Net of Receivables and
	Other Assets – (0.18%)					(214,757	)
Net Assets Applicable to 10,131,602
	Shares Outstanding – 100.00%				$	119,126,472
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class A ($108,213,691 / 9,205,300 Shares)					$11.76
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class B ($2,917,187 / 247,972 Shares)					$11.76
Net Asset Value – Delaware Tax-Free Arizona Fund
	Class C ($7,995,594 / 678,330 Shares)					$11.79
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	111,486,795
Undistributed net investment income						26,196
Accumulated net realized gain on investments						30,361
Net unrealized appreciation of investments						7,583,120
Total net assets					$	119,126,472

37

Statements of net assets
Delaware Tax-Free Arizona Fund

•	Variable rate security. The rate shown is the rate as of August 31, 2010. Interest rates reset periodically.
§	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.

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
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)	$	11.76
Sales charge (4.50% of offering price) (B)		0.55
Offering price	$	12.31

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

38

Delaware Tax-Free California Fund August 31, 2010

		Principal amount			Value
Municipal Bonds – 97.06%
Corporate Revenue Bonds – 6.58%
	California Pollution Control Financing Authority
	Environmental I Municipal Revenue
	•(BP West Coast Products, LLC) 2.60% 12/1/46		$	500,000	$	489,495
#	California Pollution Control Financing Authority Water
	Facilities Revenue (American Water Capital Project)
	144A 5.25% 8/1/40			1,000,000		1,019,320
	Chula Vista Industrial Development Revenue
	(San Diego Gas & Electric) Series D 5.875% 1/1/34			1,000,000		1,131,690
	Golden State Tobacco Securitization Corporate
	Settlement Revenue (Asset-Backed Senior Notes)
	Series A-1 5.75% 6/1/47			2,000,000		1,498,140
	M-S-R Energy Authority Gas Revenue Series A 6.50% 11/1/39			1,000,000		1,165,470
	Puerto Rico Ports Authority Special Facilities Revenue
	(American Airlines) Series A 6.30% 6/1/23 (AMT)			825,000		724,218
						6,028,333
Education Revenue Bonds – 9.13%
	California Educational Facilities Authority Revenue
	(University of the Pacific) 5.50% 11/1/39			1,000,000		1,041,560
	(Woodbury University) 5.00% 1/1/36			1,000,000		935,900
	California Municipal Finance Authority Educational
	Revenue (American Heritage Foundation Project)
	Series A 5.25% 6/1/36			1,000,000		923,070
	California Statewide Communities Development Authority Revenue
	(California Baptist University Project) Series A 5.50% 11/1/38			1,000,000		870,290
	(Viewpoint School Project) 5.75% 10/1/33 (ACA)			1,000,000		991,110
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40			1,000,000		1,022,920
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)			1,000,000		1,001,110
	San Diego County Certificates of Participation
	(University of San Diego) 5.375% 10/1/41			1,000,000		1,004,120
	University of California Revenue (Multiple Purpose Projects)
	Series L 5.00% 5/15/19			500,000		580,275
						8,370,355

39

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds – 6.65%
	Chino Basin Regional Financing Authority Revenue
	Series A 5.00% 11/1/24 (AMBAC)		$	845,000	$	928,055
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.50% 7/1/38			400,000		423,968
	Series XX 5.75% 7/1/36			1,000,000		1,085,950
	Southern California Public Power Authority Revenue
	(Transmission Project) Series A 5.00% 7/1/22			1,000,000		1,152,600
	Turlock Irrigation District Revenue Series A 5.00% 1/1/30			1,335,000		1,428,397
	Vernon Electric System Revenue Series A 5.125% 8/1/21			1,000,000		1,081,850
						6,100,820
Healthcare Revenue Bonds – 14.59%
	Association Bay Area Governments Finance Authority
	for California Nonprofit Corporations
	(San Diego Hospital Association) Series A 6.125% 8/15/20			1,155,000		1,176,263
	(Sharp Health Care) Series B 6.25% 8/1/39			1,000,000		1,131,250
	California Health Facilities Financing Authority Revenue
	(Catholic Health Care West)
	Series A 6.00% 7/1/39			1,000,000		1,104,430
	Series E 5.625% 7/1/25			1,000,000		1,104,970
	Series G 5.25% 7/1/23			1,000,000		1,045,230
	(Children’s Hospital Orange County) Series A 6.50% 11/1/38			1,000,000		1,089,940
	(St. Joseph Health System) Series A 5.75% 7/1/39			1,000,000		1,075,120
	(The Episcopal Home) Series A 5.30% 2/1/32 (RADIAN)			1,000,000		1,002,720
	California Infrastructure & Economic Development Bank
	Revenue (Kaiser Hospital Associates I, LLC)
	Series A 5.55% 8/1/31			1,000,000		1,022,870
	California Municipal Finance Authority Revenue
	(Eisenhower Medical Center) Series A 5.75% 7/1/40			1,000,000		1,025,580
	California Statewide Communities Development Authority Revenue
	(Kaiser Performance) Series A 5.00% 4/1/19			1,000,000		1,139,370
	(Southern California Senior Living) 7.25% 11/15/41			500,000		557,515
	(Valleycare Health Systems) Series A 5.125% 7/15/31			1,000,000		899,850
						13,375,108
Housing Revenue Bonds – 6.61%
	California Housing Finance Agency Revenue (Home Mortgage)
	Series K 5.30% 8/1/23 (AMT)			1,000,000		1,002,250
	Series M 5.95% 8/1/25 (AMT)			990,000		1,049,529

40

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	California Statewide Communities Development
	Multifamily Housing Authority Revenue
	(Citrus Gardens Apartments) Series D-1 5.375% 7/1/32		$	1,000,000	$	979,170
	•(Silver Ridge Apartments) Series H 5.80% 8/1/33 (FNMA) (AMT)			1,000,000		1,026,560
	Palm Springs Mobile Home Park Revenue
	(Sahara Mobile Home Park) Series A 5.75% 5/15/37			1,000,000		1,003,540
	Santa Clara County Multifamily Housing Authority Revenue
	(Rivertown Apartments Project) Series A 5.85% 8/1/31 (AMT)			1,000,000		1,003,290
						6,064,339
Lease Revenue Bonds – 7.35%
	California State Public Works Board Lease Revenue
	(General Services) Series A 6.25% 4/1/34			1,000,000		1,091,060
	Elsinore Valley Municipal Water District Certificates of
	Participation Series A 5.00% 7/1/24 (BHAC)			1,000,000		1,127,130
	Franklin-McKinley School District Certificates of Participation
	(Financing Project) Series B 5.00% 9/1/27 (AMBAC)			1,060,000		1,087,125
	Puerto Rico Public Buildings Authority Revenue (Guaranteed
	Government Facilities) Series M-2 5.50% 7/1/35 (AMBAC)			700,000		764,386
	San Diego Public Facilities Financing Authority Lease
	Revenue (Master Project) Series A 5.25% 3/1/40			1,000,000		1,019,880
	San Mateo Joint Powers Financing Authority Lease
	Revenue (Capital Projects) Series A 5.25% 7/15/26			1,000,000		1,131,080
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		513,500
						6,734,161
Local General Obligation Bonds – 5.88%
^	Anaheim School District Election 2002 4.58% 8/1/25 (NATL-RE)			1,000,000		442,320
	Central Unified School District Election 2008
	Series A 5.625% 8/1/33 (ASSURED GTY)			1,000,000		1,110,140
	Fairfield-Suisun Unified School District Election 2002
	5.50% 8/1/28 (NATL-RE)			500,000		546,590
	Grossmont Union High School District Election 2004
	5.00% 8/1/23 (NATL-RE)			1,000,000		1,080,700
	Santa Barbara Community College District Election 2008
	Series A 5.25% 8/1/33			1,000,000		1,085,130
	Sierra Joint Community College Improvement District #2
	(Western Nevada) Series A 5.25% 8/1/21 (BHAC) (FGIC)			1,000,000		1,128,680
						5,393,560

41

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds – 3.83%
	California Department of Water Resources (Central Valley
	Project) Series X 5.00% 12/1/29-12 (NATL-RE) (FGIC)		$	5,000	$	5,517
	Commerce Joint Powers Financing Authority
	Revenue (Redevelopment Projects)
	Series A 5.00% 8/1/28-13 (RADIAN)			60,000		67,885
	Golden State Tobacco Securitization
	Corporation Settlement Revenue
	(Asset-Backed Senior Notes) Series B
	5.50% 6/1/43-13 (RADIAN)			1,000,000		1,133,670
	5.625% 6/1/33-13			1,000,000		1,137,080
	Port Oakland Revenue Series L 5.375% 11/1/27-12
	(NATL-RE) (FGIC) (AMT)			110,000		121,814
•	Puerto Rico Sales Tax Financing Corporation Revenue
	(First Subordinate) Series A 5.00% 8/1/39-11			1,000,000		1,043,700
						3,509,666
Resource Recovery Revenue Bond – 1.17%
	South Bayside Waste Management Authority Revenue
	(Shoreway Environmental Center) Series A 6.00% 9/1/36			1,000,000		1,068,400
						1,068,400
Special Tax Revenue Bonds – 20.02%
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21			1,000,000		1,198,740
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Un-Refunded Balance
	Series A 5.00% 8/1/28 (RADIAN)			940,000		883,769
	Fremont Community Facilities District #1 (Special Tax Pacific
	Commons) 5.375% 9/1/36			1,000,000		985,540
	Glendale Redevelopment Agency Tax Allocation Revenue
	(Central Glendale Redevelopment Project) 5.50% 12/1/24			1,000,000		1,039,250
	Lake Elsinore Public Financing Authority Tax Allocation
	Series A 5.50% 9/1/30			1,000,000		1,000,160
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35			500,000		440,780
	Lancaster Redevelopment Agency Tax Allocation Revenue
	(Combined Redevelopment Project Areas) 6.875% 8/1/39			500,000		571,205
@	Modesto Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36			1,000,000		795,920

42

		Principal amount				Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Poway Redevelopment Agency Tax Allocation Revenue
	5.75% 6/15/33 (NATL-RE)		$	270,000	$	272,128
	Poway Unified School District Community Facilities District #1
	Special Tax Refunding 5.00% 10/1/17 (AGM)			1,000,000		1,187,180
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate
	ΩCapital Appreciation Series A 6.75% 8/1/32			2,040,000		1,762,886
	Series A 5.25% 8/1/27			1,000,000		1,088,250
	Series A 5.75% 8/1/37			790,000		846,848
	Series C 6.00% 8/1/39			700,000		774,949
	Riverside County Redevelopment Agency Tax Allocation
	Housing Series A 6.00% 10/1/39			1,000,000		1,041,000
	Roseville Westpark Special Tax Public Community Facilities
	District #1 5.25% 9/1/37			500,000		434,600
	San Bernardino County Special Tax Community Facilities
	District #2002-1 5.90% 9/1/33			2,000,000		1,982,620
	San Diego Redevelopment Agency Tax Allocation Revenue
	(Naval Training Center) Series A 5.75% 9/1/40			1,000,000		1,019,030
	Virgin Islands Public Finance Authority Revenue (Senior
	Lien-Matching Fund Loan Note) Series A 5.00% 10/1/29			1,000,000		1,032,760
						18,357,615
State General Obligation Bonds – 8.33%
	California State Various Purposes
	5.25% 3/1/30			1,000,000		1,065,020
	6.00% 3/1/33			1,000,000		1,141,920
	6.00% 4/1/38			515,000		575,111
	Guam Government Series A 6.75% 11/15/29			1,755,000		1,934,273
	Puerto Rico Commonwealth Government Development Bank
	Senior Notes Series B 5.00% 12/1/15			1,000,000		1,089,540
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/15			1,000,000		1,098,410
	Series C 6.00% 7/1/39			675,000		732,706
						7,636,980
Transportation Revenue Bonds – 4.51%
	Bay Area Toll Bridge Authority Revenue
	(San Francisco Bay Area) Series F-1 5.625% 4/1/44			1,000,000		1,126,710
	Port Oakland Revenue Series L 5.375% 11/1/27
	(NATL-RE) (FGIC) (AMT)			890,000		900,075

43

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Sacramento County Airport Services Revenue (PFC/Grant)
	Series C 6.00% 7/1/41		$	1,000,000	$	1,100,110
	San Diego Redevelopment Agency (Centre City Redevelopment
	Project) Series A 6.40% 9/1/25			1,000,000		1,005,420
						4,132,315
Water & Sewer Revenue Bonds – 2.41%
	California Department of Water Resources Systems Revenue
	(Central Valley Project)
	Series A 5.00% 12/1/24			1,000,000		1,146,800
	Un-Refunded Balance Series X 5.00% 12/1/29 (NATL-RE) (FGIC)			995,000		1,064,779
						2,211,579
Total Municipal Bonds (cost $84,612,164)						88,983,231
		Number of shares
Short-Term Investments – 1.59%
Money Market Instrument – 0.50%
	Federated California Municipal Cash Trust			460,608		460,608
						460,608
		Principal amount
•Variable Rate Demand Note – 1.09%
	California State Various (Kindergarten-B1) 0.25% 5/1/34		$	1,000,000		1,000,000
						1,000,000
Total Short-Term Investments (cost $1,460,608)						1,460,608
Total Value of Securities – 98.65% (cost $86,072,772)						90,443,839
Receivables and Other Assets
	Net of Liabilities – 1.35%					1,237,744
Net Assets Applicable to 7,923,210
	Shares Outstanding – 100.00%				$	91,681,583

44

Net Asset Value – Delaware Tax-Free California Fund
	Class A ($72,901,567 / 6,302,934 Shares)			$11.57
Net Asset Value – Delaware Tax-Free California Fund
	Class B ($3,254,299 / 280,193 Shares)			$11.61
Net Asset Value – Delaware Tax-Free California Fund
	Class C ($15,525,717 / 1,340,083 Shares)			$11.59
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)		$	87,796,897
Undistributed net investment income			18,763
Accumulated net realized loss on investments			(505,144		)
Net unrealized appreciation of investments			4,371,067
Total net assets		$	91,681,583

•	Variable rate security. The rate shown is the rate as of August 31, 2010. Interest rates reset periodically.
#	Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At August 31, 2010, the aggregate amount of Rule 144A securities was $1,019,320, which represented 1.11% 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.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $795,920, which represented 0.87% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”

45

Statements of net assets
Delaware Tax-Free California Fund

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
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)	$	11.57
Sales charge (4.50% of offering price) (B)		0.55
Offering price	$	12.12

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

46

Delaware Tax-Free Colorado Fund		August 31, 2010
		Principal amount			Value
Municipal Bonds – 98.63%
Corporate Revenue Bond – 1.14%
	Public Authority Energy National Gas Purpose
	Revenue Series 2008 6.50% 11/15/38		$	2,500,000	$	2,903,750
						2,903,750
Education Revenue Bonds – 11.68%
	Boulder County Development Revenue
	(University Corporation for Atmospheric Research)
	5.00% 9/1/33 (NATL-RE)			1,000,000		1,010,030
	5.00% 9/1/35 (AMBAC)			1,000,000		1,019,220
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Charter School Project) 5.50% 5/1/36 (XLCA)			2,280,000		2,320,265
	(Johnson & Wales University Project) Series A
	5.00% 4/1/28 (XLCA)			1,000,000		1,001,040
	(Liberty Common Charter School Project)
	5.125% 12/1/33 (XLCA)			2,740,000		2,760,139
	(Montessori Districts Charter School Projects)
	6.125% 7/15/32			5,590,000		5,626,222
	(Pinnacle Charter School Project) 5.00% 6/1/33 (XLCA)			2,170,000		2,176,749
	(University of Northern Colorado Student Housing Project)
	5.125% 7/1/37 (NATL-RE)			4,000,000		4,000,680
	(Woodrow Wilson Charter School Project)
	5.25% 12/1/34 (XLCA)			1,960,000		1,979,071
	Colorado School Mines Auxiliary Facilities
	5.00% 12/1/37 (AMBAC)			425,000		428,838
	Colorado State Board Governors University
	Enterprise System Revenue Series A
	5.00% 3/1/39			2,300,000		2,463,507
	University of Colorado Enterprise System Revenue Series A
	5.00% 6/1/30 (AMBAC)			2,000,000		2,139,320
	University of Puerto Rico System Revenue Series Q
	5.00% 6/1/36			2,750,000		2,755,225
						29,680,306
Electric Revenue Bonds – 8.51%
	Colorado Springs Utilities Revenue Series A
	5.00% 11/15/29			5,000,000		5,200,850
	Platte River Power Authority Revenue Series HH
	5.00% 6/1/27			2,795,000		3,191,079
	5.00% 6/1/29			2,355,000		2,650,341

47

Statements of net assets
Delaware Tax-Free Colorado Fund

		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	$	538,088
	Series WW 5.00% 7/1/28			2,400,000		2,518,728
	Series WW 5.50% 7/1/38			1,000,000		1,059,920
	Series XX 5.25% 7/1/40			2,500,000		2,621,175
	Series ZZ 5.25% 7/1/26			3,500,000		3,858,610
						21,638,791
Healthcare Revenue Bonds – 23.22%
	Aurora Hospital Revenue
	(Childrens Hospital Association Project)
	Series A 5.00% 12/1/40			2,000,000		2,047,920
	(Childrens Hospital) Series D 5.00% 12/1/23 (AGM)			2,775,000		3,054,470
	Colorado Health Facilities Authority Revenue
	•(Adventist Health/Sunbelt) 5.125% 11/15/24			1,375,000		1,449,910
	(Catholic Health Initiatives)
	Series A 4.75% 9/1/40			1,000,000		1,022,520
	Series A 5.00% 7/1/39			2,500,000		2,608,650
	Series D 6.25% 10/1/33			2,000,000		2,277,460
	(Christian Living Community Project)
	Series A 5.75% 1/1/37			1,500,000		1,364,130
	(Covenant Retirement Communities)
	Series A 5.50% 12/1/33 (RADIAN)			5,000,000		4,784,750
	(Evangelical Lutheran)
	5.00% 6/1/35			2,000,000		1,952,660
	6.125% 6/1/38			5,250,000		5,411,227
	Series A 5.25% 6/1/34			2,750,000		2,753,465
	(Parkview Medical Center) 5.00% 9/1/25			1,000,000		1,018,000
	(Porter Place) Series A 6.00% 1/20/36 (GNMA)			5,000,000		5,053,500
	(Vail Valley Medical Center Project) 5.80% 1/15/27			3,475,000		3,509,368
	(Valley View Hospital Association) 5.50% 5/15/28			1,000,000		1,036,740
	Colorado Springs Hospital Revenue 6.25% 12/15/33			2,500,000		2,749,225
	Delta County Memorial Hospital District Enterprise
	Revenue 5.35% 9/1/17			4,000,000		4,081,960
	Denver Health & Hospital Authority Health Care Revenue
	5.625% 12/1/40			2,500,000		2,545,575
	Series A 4.75% 12/1/36			1,500,000		1,310,730

48

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	University of Colorado Hospital Authority Revenue Series A
	5.00% 11/15/37		$	2,690,000	$	2,708,373
	5.25% 11/15/39			3,500,000		3,575,775
	6.00% 11/15/29			2,460,000		2,681,203
						58,997,611
Housing Revenue Bonds – 2.10%
	Colorado Housing & Finance Authority
	(Multifamily Housing Insured Mortgage)
	Series C3 6.15% 10/1/41			1,590,000		1,591,670
	(Single Family Mortgage) Series A 5.50% 11/1/29 (FHA)			1,500,000		1,617,735
	Puerto Rico Housing Finance Authority
	Subordinate (Capital Foundation of Modernization)
	5.125% 12/1/27			2,040,000		2,126,210
						5,335,615
Lease Revenue Bonds – 3.59%
	Aurora Certificates of Participation Refunding Series A
	5.00% 12/1/30			2,370,000		2,570,669
	Colorado Educational & Cultural National
	Conference of State Legislatures Office Building
	Facilities Authority Revenue 5.25% 6/1/21			2,000,000		2,022,160
@	Conejos & Alamosa Counties School #11J
	Certificates of Participation 6.50% 4/1/11			355,000		355,777
	El Paso County Certificates of Participation
	(Detention Facilities Project) Series B
	5.00% 12/1/27 (AMBAC)			1,500,000		1,595,265
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33			1,475,000		1,498,408
	•Series M-2 5.50% 7/1/35 (AMBAC)			1,000,000		1,091,980
						9,134,259
Local General Obligation Bonds – 13.38%
	Adams & Arapahoe Counties Joint School
	District #28J (Aurora) 6.00% 12/1/28			2,500,000		2,996,875
	Arapahoe County Water & Wastewater Public
	Improvement District Refunding Series A
	5.125% 12/1/32 (NATL-RE)			2,555,000		2,588,624

49

Statements of net assets
Delaware Tax-Free Colorado Fund

		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	$	2,686,625
	Denver City & County Justice System
	5.50% 8/1/16			2,000,000		2,466,340
	(Facilities & Zoo) 5.00% 8/1/19			1,020,000		1,173,428
	Denver City & County School District #1 Series A
	5.00% 12/1/29			960,000		1,062,720
	Denver West Metropolitan District
	5.00% 12/1/33 (RADIAN)			1,400,000		1,315,650
	Douglas County School District #1
	(Douglas & Elbert Counties) Series B
	5.00% 12/15/24			2,355,000		2,655,522
	El Paso County School District #2 (Harrison)
	5.00% 12/1/27 (NATL-RE)			2,115,000		2,258,968
	Garfield County School District #2
	5.00% 12/1/25 (AGM)			2,280,000		2,559,414
	Grand County School District #2 (East Grand)
	5.25% 12/1/25 (AGM)			2,485,000		2,804,447
	Gunnison Watershed School District #1J Series 2009
	5.25% 12/1/33			1,400,000		1,536,808
	Jefferson County School District #R-001
	5.25% 12/15/24			2,500,000		3,205,524
	La Plata County School District #9-R (Durango)
	5.125% 11/1/24 (NATL-RE)			1,000,000		1,106,310
@	North Range Metropolitan
	District #1 4.50% 12/15/31 (ACA)			1,500,000		868,710
	District #2 5.50% 12/15/37			1,200,000		961,236
	Sand Creek Metropolitan District Refunding & Improvement
	5.00% 12/1/31 (XLCA)			500,000		470,945
	Weld County School District #4 5.00% 12/1/19 (AGM)			1,085,000		1,293,613
						34,011,759
§Pre-Refunded/Escrowed to Maturity Bonds – 11.92%
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Littleton Academy Charter School Project)
	6.125% 1/15/31-12			2,000,000		2,155,160
	(Stargate Charter School Project) 6.125% 5/1/33-13			2,000,000		2,291,000

50

		Principal amount				Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	Colorado Educational & Cultural Facilities
	Authority Revenue (continued)
	(University of Denver Project) Series A
	5.00% 3/1/27-12 (NATL-RE)		$	5,000,000	$	5,347,399
	Colorado Health Facilities Authority Revenue
	(Adventist Health/Sunbelt) 5.125% 11/15/24-16			75,000		91,563
	(Catholic Health Initiatives) Series A 5.50% 3/1/32			5,000,000		5,384,749
	Douglas County School District #1
	(Douglas & Elbert Counties) Series B
	5.125% 12/15/25-12 (AGM)			2,000,000		2,214,700
	Fremont County School District #1 (Canon City)
	5.00% 12/1/24-13 (NATL-RE)			1,735,000		1,985,222
	Garfield County School District #2
	5.00% 12/1/25 (AGM)			1,000,000		1,101,930
	Garfield Pitkin & Eagle County School District #Re-1
	(Roaring Fork County) Series A 5.00% 12/15/27-14 (AGM)			1,500,000		1,759,125
	Lincoln Park Metropolitan District 7.75% 12/1/26-11			2,500,000		2,744,225
	North Range Metropolitan District #1 7.25% 12/15/31-11			3,385,000		3,671,980
	Puerto Rico Commonwealth Series A 5.25% 7/1/30-16			1,235,000		1,509,331
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I
	5.25% 7/1/33-14			25,000		29,197
						30,285,581
Special Tax Revenue Bonds – 10.52%
	Aspen Sales Tax Revenue (Parks & Open Spaces)
	Series B 5.25% 11/1/23 (AGM)			2,040,000		2,263,033
@	Baptist Road Rural Transportation Authority Sales &
	Use Tax Revenue 5.00% 12/1/26			2,000,000		1,368,960
	Park Meadows Business Improvement District
	Shared Sales Tax Revenue
	5.30% 12/1/27			950,000		879,045
	5.35% 12/1/31			720,000		646,618
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			4,700,000		4,798,747
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate
	ΩCapital Appreciation Series A
	6.75% 8/1/32			5,075,000		4,385,612

51

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
•	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate
	Series A 5.00% 8/1/39		$	2,500,000	$	2,609,250
	Series A 5.00% 7/1/46			1,200,000		1,200,876
	Series A 5.25% 8/1/27			1,100,000		1,197,075
	Series A 5.75% 8/1/37			2,620,000		2,808,535
	Series C 6.00% 8/1/39			1,900,000		2,103,433
	Regional Transportation District Sales Tax Revenue
	Series A 5.25% 11/1/18			2,000,000		2,465,420
						26,726,604
State & Territory General Obligation Bonds – 5.78%
	Guam Government Series A 7.00% 11/15/39			2,500,000		2,799,800
	Puerto Rico Commonwealth Government Development
	Bank Senior Notes Series B 5.00% 12/1/15			1,000,000		1,089,540
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/21			4,000,000		4,157,999
	Series C 6.00% 7/1/39			1,685,000		1,829,051
	Refunding Series A 5.25% 7/1/15			1,650,000		1,812,377
	Puerto Rico Commonwealth
	Series A 5.25% 7/1/30			765,000		793,703
	Series B 5.00% 7/1/35			190,000		192,094
	Virgin Islands Public Finance Authority Revenue
	(Gross Receipts Taxes Loan Note)
	5.00% 10/1/31 (ACA)			2,000,000		2,025,680
						14,700,244
Transportation Revenue Bonds – 4.49%
	Denver City & County Airport Revenue
	5.25% 11/15/36			2,500,000		2,672,925
	Series A 5.00% 11/15/25 (FGIC) (NATL-RE)			2,000,000		2,160,140
	Series B 5.00% 11/15/33 (XLCA)			4,000,000		4,051,680
	Regional Transportation District Private Activity Revenue
	(Denver Transit Partners) 6.00% 1/15/41			2,400,000		2,518,272
						11,403,017

52

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 2.30%
	Colorado Springs Utilities Systems Improvement Revenue
	Series C 5.50% 11/15/48		$	3,250,000	$	3,528,265
	Eagle River Water & Sanitation District Enterprise Revenue
	5.00% 12/1/29 (ASSURED GTY)			250,000		274,940
	5.125% 12/1/39 (ASSURED GTY)			850,000		908,013
	Pueblo Board Waterworks Revenue 5.00% 11/1/21 (AGM)			1,000,000		1,125,390
						5,836,608
Total Municipal Bonds (cost $237,107,743)						250,654,145
				Number of shares
Short-Term Investment – 0.15%
Money Market Instrument – 0.15%
	Dreyfus Cash Management Fund			378,388		378,388
Total Short-Term Investment (cost $378,388)						378,388
Total Value of Securities – 98.78%
	(cost $237,486,131)					251,032,533
Receivables and Other Assets
	Net of Liabilities – 1.22%					3,096,639
Net Assets Applicable to 22,562,720
	Shares Outstanding – 100.00%				$	254,129,172
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class A ($237,544,608 / 21,093,720 Shares)						$11.26
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class B ($1,429,564 / 126,844 Shares)						$11.27
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class C ($15,155,000 / 1,342,156 Shares)						$11.29
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	243,576,419
Accumulated net realized loss on investments						(2,993,649		)
Net unrealized appreciation of investments						13,546,402
Total net assets					$	254,129,172

53

Statements of net assets
Delaware Tax-Free Colorado Fund

•	Variable rate security. The rate shown is the rate as of August 31, 2010. Interest rates reset periodically.
@	Illiquid security. At August 31, 2010, the aggregate amount of illiquid securities was $3,554,683, which represented 1.40% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. 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
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
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

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Colorado Fund
Net asset value Class A (A)	$	11.26
Sales charge (4.50% of offering price) (B)		0.53
Offering price	$	11.79

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

54

Delaware Tax-Free Idaho Fund August 31, 2010

		Principal amount			Value
Municipal Bonds – 98.42%
Corporate Revenue Bonds – 3.43%
	Nez Perce County Pollution Control Revenue
	(Potlatch Project) 6.00% 10/1/24		$	1,285,000	$	1,271,340
	Power County Pollution Control Revenue
	(FMC Project) 5.625% 10/1/14			2,475,000		2,475,520
	Puerto Rico Ports Authority Revenue
	(American Airlines Special Facilities)
	6.30% 6/1/23 (AMT)			1,295,000		1,136,803
						4,883,663
Education Revenue Bonds – 10.95%
	Boise State University Revenue
	5.00% 4/1/17 (AMBAC)			500,000		536,110
	Series A 4.25% 4/1/32 (NATL-RE)			1,500,000		1,517,145
	Series A 5.00% 4/1/18 (NATL-RE) (FGIC)			1,500,000		1,638,510
	Series A 5.00% 4/1/39			1,000,000		1,069,760
	Un-Refunded Series 07 5.375% 4/1/22 (FGIC)			15,000		15,872
	Idaho Housing & Financing Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39			1,000,000		1,175,480
	Idaho State University Revenue Refunding & Improvement
	5.00% 4/1/20 (AGM)			1,130,000		1,234,808
	5.00% 4/1/23 (AGM)			2,115,000		2,217,196
	University Idaho (General Refunding)
	•Series 2011 5.25% 4/1/41			2,000,000		2,198,660
	Series A 5.00% 4/1/21 (AMBAC)			1,150,000		1,254,110
	•Series B 4.50% 4/1/41 (AGM)			1,000,000		1,083,950
	Series B 5.00% 4/1/28			1,000,000		1,104,060
	Series B 5.00% 4/1/32			500,000		537,810
						15,583,471
Electric Revenue Bonds – 5.85%
	Boise-Kuna Idaho Irrigation District Revenue
	(Arrowrock Hydroelectric Project) 6.30% 6/1/31			1,000,000		1,105,230
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37			210,000		215,235
	Series WW 5.50% 7/1/38			400,000		423,968
	Series XX 5.25% 7/1/40			4,170,000		4,372,120
	Series ZZ 5.25% 7/1/26			2,000,000		2,204,920
						8,321,473

55

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 3.62%
	Idaho Health Facilities Authority Revenue
	(St. Luke’s Medical Center Project)
	5.00% 7/1/35 (AGM)		$	2,500,000	$	2,581,225
	6.75% 11/1/37			1,250,000		1,422,025
	(Trinity Health Credit Group) Series B 6.125% 12/1/28			1,000,000		1,142,710
						5,145,960
Housing Revenue Bonds – 5.97%
	Idaho Housing Agency Single Family Mortgage Revenue
	Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT)			10,000		10,019
	Series A 6.10% 7/1/16 (FHA) (VA) (AMT)			20,000		20,037
	Series B 6.45% 7/1/15 (AMT)			10,000		10,020
	Series C-2 6.35% 7/1/15 (AMT)			10,000		10,020
	Series E 6.35% 7/1/15 (FHA) (AMT)			15,000		15,029
	Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT)			55,000		55,103
	Idaho Housing & Finance Association Single
	Family Mortgage Revenue
	Series B Class I 5.00% 7/1/37 (AMT)			815,000		825,073
	Series B Class I 5.50% 7/1/38			900,000		955,512
	Series C Class II 4.95% 7/1/31			1,000,000		1,034,650
	Series C Class III 5.35% 1/1/25 (AMT)			215,000		221,050
	Series D Class III 5.45% 7/1/23 (AMT)			750,000		771,518
	Series E 4.85% 7/1/28 (AMT)			1,475,000		1,490,090
	Series E Class III 4.875% 1/1/26 (AMT)			140,000		141,873
	Series E Class III 5.00% 1/1/28 (AMT)			865,000		866,808
	Series I Class I 5.45% 1/1/39 (AMT)			1,000,000		1,022,170
	Puerto Rico Housing Finance Authority Subordinate-
	Capital Foundation Modernization
	5.125% 12/1/27			1,000,000		1,042,260
						8,491,232
Lease Revenue Bonds – 3.12%
	Boise City Certificate of Participation
	5.375% 9/1/20 (NATL-RE) (FGIC) (AMT)			2,100,000		2,115,246
	Boise City Revenue Series A 5.375% 12/1/31 (NATL-RE)			500,000		522,425
	Idaho State Building Authority Revenue
	Series A 5.00% 9/1/43 (XLCA)			1,000,000		1,016,900
	Series B 5.00% 9/1/21 (NATL-RE)			750,000		779,873
						4,434,444

56

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds – 20.04%
	Ada & Canyon Counties Joint School District #2
	Meridian (School Board Guaranteed Program)
	4.50% 7/30/22		$	1,500,000	$	1,758,855
	4.75% 2/15/20			1,000,000		1,108,010
	5.50% 7/30/16			1,305,000		1,606,860
	Bannock County School District #025
	(Pocatello Idaho School Board Guaranteed Program)
	5.00% 8/15/15			1,040,000		1,198,881
	5.00% 8/15/16			1,100,000		1,254,132
	Boise City Independent School District
	5.00% 8/1/24 (AGM)			1,500,000		1,715,595
	Canyon County School District #132 Caldwell
	5.00% 7/30/15 (NATL-RE)			2,000,000		2,319,540
	Series A 5.00% 9/15/22 (AGM)			1,725,000		2,023,632
	Series A 5.00% 9/15/23 (AGM)			1,810,000		2,107,112
	City of Nampa 5.00% 8/1/21 (NATL-RE)			2,475,000		2,707,822
	Idaho Board Bank Authority Revenue
	Series A 5.00% 9/15/28			1,000,000		1,135,550
	Series A 5.25% 9/15/26			2,000,000		2,349,080
	Series C 4.00% 9/15/29			1,320,000		1,380,654
	Lemhi County 5.20% 8/1/27 (AGM)			2,145,000		2,299,912
	Power & Cassia Counties Joint School District #381
	American Falls 5.00% 8/1/17			1,155,000		1,202,101
	Twin Falls County School District #413 Filer 5.25% 9/15/25			2,000,000		2,354,439
						28,522,175
§Pre-Refunded Bonds – 12.29%
	Ada & Canyon Counties Joint School District #2
	Meridian (School Board Guaranteed Program)
	5.00% 7/30/20-12			1,555,000		1,689,958
	5.125% 7/30/19-12			1,005,000		1,094,626
	Un-Refunded 5.00% 7/30/20-12			600,000		652,074
	Boise State University Revenue Refunding & Improvement
	5.125% 4/1/31-12 (FGIC)			1,000,000		1,076,400
	5.375% 4/1/22-12 (FGIC)			985,000		1,064,145
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series D 5.25% 7/1/38-12			1,000,000		1,086,280
	Series Y 5.00% 7/1/36-16			1,250,000		1,510,150

57

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series A 5.375% 10/1/24-10		$	1,750,000	$	1,775,060
	Puerto Rico Commonwealth Public Improvement
	Revenue Series A 5.125% 7/1/31-11			1,010,000		1,051,784
	Puerto Rico Electric Power Authority Revenue
	Series II 5.25% 7/1/31-12			1,000,000		1,100,470
	Series NN 5.125% 7/1/29-13			105,000		118,947
	Series RR 5.00% 7/1/35-15 (FGIC)			1,545,000		1,840,296
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.50% 7/1/23-14			1,000,000		1,177,280
	University of Idaho Revenue (Student Fee Housing
	Improvements Project) 5.25% 4/1/31-11 (FGIC)			2,195,000		2,258,852
						17,496,322
Special Tax Revenue Bonds – 17.27%
	Boise Urban Renewal Agency Parking
	Revenue (Tax Increment)
	Series A 6.125% 9/1/15			1,160,000		1,177,330
	Series B 6.125% 9/1/15			950,000		964,193
	Coeur D’Alene Local Improvement District #6
	Series 1997 6.10% 7/1/12			40,000		40,523
	Series 1998 6.10% 7/1/14			45,000		45,529
	Idaho Board Bank Authority Revenue Series B
	4.125% 9/15/36 (NATL-RE)			755,000		761,418
	5.00% 9/15/30 (NATL-RE)			725,000		787,633
	Ketchum Urban Renewal Agency 5.50% 10/15/34			1,500,000		1,519,650
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series K 5.00% 7/1/30			890,000		908,699
	Series W 5.50% 7/1/15			175,000		194,175
	Puerto Rico Sales Tax Financing Corporate
	Revenue First Subordinate
	ΩCapital Appreciation Series A 6.75% 8/1/32			5,040,000		4,355,366
	Series A 5.25% 8/1/27			3,000,000		3,264,750
	Series A 5.50% 8/1/42			1,500,000		1,593,915
	Series A 6.00% 8/1/39			1,000,000		1,107,070
	Series C 5.25% 8/1/41			1,500,000		1,570,800
	Series C 5.75% 8/1/37			2,660,000		2,851,414

58

		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
	5.00% 10/1/29		$	1,500,000	$	1,549,140
	5.25% 10/1/20			500,000		530,995
	5.25% 10/1/21			500,000		527,845
	5.25% 10/1/24			800,000		833,936
						24,584,381
State General Obligation Bonds – 6.41%
	Guam Government Series A 6.75% 11/15/29			1,565,000		1,724,865
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed 4.75% 12/1/15 (NATL-RE)			1,000,000		1,044,080
	Puerto Rico Commonwealth Public Improvement
	Series A 5.125% 7/1/31			1,815,000		1,823,331
	Series A 5.25% 7/1/22			1,000,000		1,036,100
	Series C 6.00% 7/1/39			1,500,000		1,628,235
	Un-Refunded Balance Series A 5.00% 7/1/34			1,855,000		1,871,602
						9,128,213
Transportation Revenue Bonds – 7.06%
	Idaho Housing & Finance Association Grant Revenue
	(Anticipated Federal Highway Trust)
	4.00% 7/15/17			500,000		562,190
	4.75% 7/15/19			1,410,000		1,662,348
	5.00% 7/15/24 (NATL-RE)			2,000,000		2,188,340
	5.25% 7/15/20 (ASSURED GTY)			2,750,000		3,244,889
	5.25% 7/15/25 (ASSURED GTY)			1,500,000		1,698,495
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Un-Refunded Balance
	Series G 5.00% 7/1/33			690,000		695,755
						10,052,017
Water & Sewer Revenue Bonds – 2.41%
	Idaho Bond Bank Authority Revenue
	Series C 5.375% 9/15/38			1,000,000		1,111,500
	Moscow Sewer Revenue 5.00% 11/1/22 (AGM)			2,175,000		2,326,380
						3,437,880
Total Municipal Bonds (cost $130,331,043)						140,081,231

59

Statements of net assets
Delaware Tax-Free Idaho Fund

		Number of shares			Value
Short-Term Investments – 2.11%
Money Market Instrument – 0.21%
	Dreyfus Cash Management Fund			297,518	$	297,518
						297,518
		Principal amount
•Variable Rate Demand Note – 1.90%
	Power County Pollution Control Revenue
	(FMC Project) 0.25% 12/1/10		$	2,700,000		2,700,000
						2,700,000
Total Short-Term Investments
	(cost $2,997,518)					2,997,518
Total Value of Securities – 100.53%
	(cost $133,328,561)					143,078,749
Liabilities Net of Receivables
	and Other Assets – (0.53%)					(751,149		)
Net Assets Applicable to 11,742,239
	Shares Outstanding – 100.00%				$	142,327,600
Net Asset Value – Delaware Tax-Free Idaho Fund
	Class A ($104,287,008 / 8,601,896 Shares)						$12.12
Net Asset Value – Delaware Tax-Free Idaho Fund
	Class B ($2,449,594 / 202,425 Shares)						$12.10
Net Asset Value – Delaware Tax-Free Idaho Fund
	Class C ($35,590,998 / 2,937,918 Shares)						$12.11
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)					$	132,577,310
Distributions in excess of net investment income						(11,219		)
Accumulated net realized gain on investments						11,321
Net unrealized appreciation of investments						9,750,188
Total net assets					$	142,327,600

60

•	Variable rate security. The rate shown is the rate as of August 31, 2010. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.

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
NATL-RE — Insured by the National Public Finance Guarantee Corporation
VA — Veterans Administration collateral
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)	$12.12
Sales charge (4.50% of offering price) (B)	0.57
Offering price	$12.69

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

61

Statements of net assets
Delaware Tax-Free New York Fund	August 31, 2010

		Principal amount			Value
Municipal Bonds – 95.94%
Corporate Revenue Bonds – 6.47%
	Jefferson County Industrial Development Agency Solid
	Waste Disposal (International Paper) Series A
	5.20% 12/1/20 (AMT)		$	350,000	$	352,779
	Liberty Development Corporation Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35			500,000		528,969
	Nassau County Tobacco Settlement Refunding
	(Asset-Backed) Series A-3 5.125% 6/1/46			600,000		476,964
•	New York City Industrial Development Agency
	Special Facilities Revenue (American Airlines-JFK
	International Airport)
	7.625% 8/1/25 (AMT)			250,000		262,318
	7.75% 8/1/31 (AMT)			250,000		263,820
	New York Energy Research & Development
	Authority Pollution Control Revenue Refunding
	(Central Hudson Gas) Series A 5.45% 8/1/27 (AMBAC)			500,000		501,625
	New York Liberty Development Corporation Revenue
	(Second Priority-Bank American Tower)
	5.625% 7/15/47			500,000		520,615
	Suffolk County Industrial Development Agency Revenue
	(Keyspan-Port Jefferson Energy Center)
	5.25% 6/1/27 (AMT)			250,000		252,078
	TSASC Tobacco Settlement Refunding (Asset-Backed)
	Series 1 5.125% 6/1/42			250,000		202,613
						3,361,781
Education Revenue Bonds – 23.75%
	Albany Industrial Development Agency Civic Facilities
	Revenue (Brighter Choice Charter School)
	Series A 5.00% 4/1/37			250,000		225,863
	Amherst Industrial Development Agency Civic Facilities
	Revenue (UBF Faculty Student Housing)
	Series A 5.75% 8/1/30 (AMBAC)			200,000		202,500
	Dutchess County Industrial Development Agency
	(Marist College) 5.00% 7/1/20			500,000		521,785
	Hempstead Town Local Development Corporation Revenue
	(Molloy College Project) 5.75% 7/1/23			400,000		457,396
	Madison County Capital Resource Corporation Revenue
	(Colgate University Project) Series A 5.00% 7/1/28			400,000		453,992

62

		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	$	413,416
•	New York City Trust for Cultural Resources Revenue
	(Julliard School) Series C 2.10% 4/1/36			500,000		511,040
	New York State Dormitory Authority Revenue
	(Columbia University) Series A 5.00% 7/1/23			500,000		547,920
	(Pratt Institute) Series C 5.125% 7/1/39 (ASSURED GTY)			300,000		320,400
	•Series B 5.25% 11/15/23			250,000		268,575
	Series B 7.50% 5/15/11			125,000		131,014
	New York State Dormitory Authority Revenue Non-State
	Supported Debt
	(Brooklyn Law School) 5.75% 7/1/33			340,000		376,026
	(Cornell University) Series A
	4.75% 7/1/29			100,000		109,942
	5.00% 7/1/34			170,000		187,391
	5.00% 7/1/39			500,000		548,374
	5.00% 7/1/40			500,000		552,494
	(Manhattan Marymount) 5.00% 7/1/24			350,000		369,807
	(Mt. Sinai School Medicine) 5.125% 7/1/39			500,000		515,730
	(New York University)
	Series A 5.25% 7/1/34			500,000		552,164
	Series A 5.25% 7/1/48			400,000		432,760
	(Rockefeller University) Series A 5.00% 7/1/27			250,000		288,643
	(St. Joseph’s College) 5.25% 7/1/25			500,000		524,815
	(Teachers College) 5.50% 3/1/39			250,000		270,248
	(University of Rochester)
	Series A 5.125% 7/1/39			250,000		268,913
	ΩSeries A-2 4.375% 7/1/20			250,000		260,563
	Onondaga Civic Development Corporation Revenue
	(Le Moyne College Project) 5.20% 7/1/29			500,000		516,290
	Onondaga County Trust for Cultural Resources Revenue
	(Syracuse University Project) Series B 5.00% 12/1/19			350,000		425,884
	St. Lawrence County Industrial Development Agency
	Civic Faculty Revenue (St. Lawrence University)
	Series A 5.00% 10/1/16			500,000		581,459
	Suffolk County Industrial Development Agency Civic
	Faculty Revenue Refunding (New York Institute of
	Technology Project) Series A 5.00% 3/1/26			600,000		617,141

63

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Troy Capital Resource Corporation Revenue
	(Rensselaer Polytechnic) Series A 5.125% 9/1/40		$	500,000	$	519,635
	Yonkers Industrial Development Agency Civic
	Faculty Revenue (Sarah Lawrence)
	Series A 6.00% 6/1/29			325,000		357,692
						12,329,872
Electric Revenue Bonds – 5.44%
	Long Island Power Authority New York Electric System Revenue
	Series A 5.75% 4/1/39			350,000		394,114
	Series B 5.75% 4/1/33			250,000		279,968
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37			100,000		102,493
	Series WW 5.00% 7/1/28			190,000		199,399
	Series WW 5.50% 7/1/38			200,000		211,984
	Series XX 5.75% 7/1/36			1,000,000		1,085,950
	Series ZZ 5.25% 7/1/26			500,000		551,230
						2,825,138
Healthcare Revenue Bonds – 8.89%
	Albany Industrial Development Agency Civic Facility
	Revenue (St. Peter’s Hospital Project)
	Series A 5.25% 11/15/32			500,000		502,340
	East Rochester Housing Authority Revenue Refunding
	(Senior Living-Woodland Village Project) 5.50% 8/1/33			200,000		177,626
	New York Dormitory Authority Revenue
	(Catholic Health Long Island Obligation Group) 5.00% 7/1/27			400,000		408,356
	(Chapel Oaks) 5.45% 7/1/26 (LOC, Allied Irish Bank)			450,000		450,747
	(Millard Fillmore Hospital) 5.375% 2/1/32 (AMBAC) (FHA)			225,000		225,104
	(Winthrop South Nassau Hospital) Series B 5.50% 7/1/23			500,000		516,015
	New York Dormitory Authority Revenue Non-State
	Supported Debt
	(Memorial Sloan-Kettering)
	Series 1 5.00% 7/1/35			225,000		235,341
	Series A-2 5.00% 7/1/26			500,000		552,235
	(Mt. Sinai Hospital) Series A 5.00% 7/1/26			600,000		643,056
	(North Shore Long Island Jewish Group)
	Series A 5.50% 5/1/37			500,000		528,900
	(Orange Regional Medical Center) 6.125% 12/1/29			365,000		377,972
						4,617,692

64

		Principal amount			Value
Municipal Bonds (continued)
Housing Revenue Bonds – 1.48%
	New York City Housing Development Multifamily Housing
	Revenue Series G-1 4.875% 11/1/39 (AMT)		$	250,000	$	251,638
	New York State Housing Finance Agency Revenue
	(Affordable Housing) Series A 5.25% 11/1/41			500,000		518,640
						770,278
Lease Revenue Bonds – 8.45%
	Battery Park City Authority Revenue
	Series A 5.00% 11/1/26			250,000		276,025
	Erie County Industrial Development Agency School
	Faculty Revenue (City School District Buffalo)
	Series A 5.25% 5/1/25			500,000		572,949
	Hudson Yards Infrastructure Revenue
	Series A 5.00% 2/15/47			500,000		501,325
	New York City Industrial Development Agency Revenue
	(Queens Baseball Stadium-Pilot) 5.00% 1/1/46 (AMBAC)			500,000		468,935
	(Yankee Stadium Project-Pilot) 5.00% 3/1/46 (FGIC)			300,000		300,831
	New York City Industrial Development Agency Special
	Airport Facility Revenue (Airis JFK I Project)
	Series A 5.50% 7/1/28 (AMT)			500,000		452,895
	Onondaga County Industrial Development Authority
	Revenue Subordinated (Air Cargo) 7.25% 1/1/32 (AMT)			500,000		489,270
	Tobacco Settlement Financing Authority Revenue
	(Asset-Backed) Series B-1C
	5.50% 6/1/20			200,000		219,808
	5.50% 6/1/21			500,000		548,120
	United Nations Development Corporation Revenue
	Refunding Series A 5.00% 7/1/26			500,000		554,335
						4,384,493
Local General Obligation Bonds – 3.56%
	New York City
	Series C-1 5.00% 10/1/19			500,000		592,075
	Series D 5.00% 11/1/34			125,000		135,070
	Series I-1 5.375% 4/1/36			500,000		553,920
	New York State Dormitory Authority Revenue Non-State
	Supported Debt (School Districts-Financing Program)
	Series A 5.00% 10/1/25 (AGM)			500,000		565,060
						1,846,125

65

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds – 4.44%
	Albany Parking Authority Revenue
	Series A 5.625% 7/15/25-11		$	280,000	$	296,209
	New York Dormitory Authority Revenue (North Shore Long
	Island Jewish Group Project) 5.50% 5/1/33-13			500,000		567,695
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series Y 5.50% 7/1/36-16			475,000		587,167
	Puerto Rico Commonwealth Series B 5.25% 7/1/32-16			155,000		189,430
	Puerto Rico Electric Power Authority Revenue Series NN
	5.125% 7/1/29-13			125,000		141,604
•	Puerto Rico Sales Tax Financing Corporation Revenue First
	Subordinate Series A 5.00% 8/1/39-11			500,000		521,850
						2,303,955
Special Tax Revenue Bonds – 19.77%
	Brooklyn Arena Local Development Corporation Pilot
	Revenue (Barclays Center Project) 6.50% 7/15/30			500,000		546,730
	Metropolitan Transportation Authority Revenue
	(Dedicated Tax Fund) Series B
	5.00% 11/15/34			500,000		539,760
	5.25% 11/15/22			500,000		591,565
	New York City Transitional Finance Authority Revenue
	(Subordinated Future Tax Secured) Series B 5.00% 11/1/18			500,000		592,004
	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		258,295
	(Museum of Modern Art) Series A1
	5.00% 10/1/17			250,000		303,533
	5.00% 4/1/31			250,000		274,995
	New York Dormitory Authority State Personal Income Tax
	Revenue Series C 5.00% 3/15/15			250,000		293,403
	New York Dormitory Authority State Supported Debt Revenue
	(Consolidated Services Contract) 5.00% 7/1/17 (AGM)			500,000		590,965
	New York Sales Tax Asset Receivables Series A 5.25%
	10/15/27 (AMBAC)			500,000		558,075
	New York State Thruway Authority (State Personal Income
	Tax Revenue-Education) Series A 5.00% 3/15/38			500,000		539,045
	New York State Urban Development Revenue Personal
	Income Tax Series A-1 5.00% 12/15/22			250,000		288,628
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30			735,000		750,441

66

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series B 5.00% 7/1/15		$	250,000	$	270,820
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinate
	ΩCapital Appreciation Series A 6.75% 8/1/32			510,000		440,722
	Series A 5.25% 8/1/57			325,000		332,166
	Series A 5.50% 8/1/42			500,000		531,305
	Series A 5.75% 8/1/37			410,000		439,504
	Series C 5.25% 8/1/41			500,000		523,600
	Series C 6.00% 8/1/39			500,000		553,535
	Schenectady Metroplex Development Authority Revenue
	Series A 5.375% 12/15/21			500,000		526,270
	Virgin Islands Public Finance Authority Revenue (Matching
	Fund Loan Note-Senior Lien) Series A 5.00% 10/1/29			500,000		516,380
						10,261,741
State & Territory General Obligation Bonds – 4.50%
	Guam Government Series A 7.00% 11/15/39			395,000		442,368
	New York State
	5.00% 2/15/18			380,000		460,321
	5.00% 3/1/38			500,000		532,956
	5.00% 2/15/39			250,000		268,245
	Puerto Rico Commonwealth Government Development
	Bank Refunded Remarketed 4.75% 12/1/15 (NATL-RE)			230,000		240,138
	Puerto Rico Commonwealth Public Improvement Refunding
	Series C 6.00% 7/1/39			270,000		293,082
	Puerto Rico Commonwealth Series B 5.25% 7/1/32			95,000		98,072
						2,335,182
Transportation Revenue Bonds – 6.69%
	Albany Parking Authority Revenue Series A 5.625% 7/15/25			220,000		224,759
	Metropolitan Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28			200,000		240,248
	•Series B 5.00% 11/15/27			200,000		222,010
	Series F 5.00% 11/15/15			150,000		173,165
	New York State Thruway Authority General Revenue
	(Bond Antic Notes)
	Series A 4.00% 7/15/11			1,000,000		1,030,789
	Series H 5.00% 1/1/14 (NATL-RE)			500,000		564,960
	Series H 5.00% 1/1/15 (NATL-RE)			250,000		287,538

67

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Port Authority New York & New Jersey
	(Consolidated-One Hundred Fifty-Third) 5.00% 7/15/35		$	250,000	$	271,565
	Triborough Bridge & Tunnel Authority Revenue
	•Series B-1 5.00% 11/15/25			200,000		225,430
	Series C 5.00% 11/15/24			200,000		230,402
						3,470,866
Water & Sewer Revenue Bonds – 2.50%
	New York City Municipal Water Finance Authority
	Water & Sewer System Revenue
	(Fiscal 2009) Series A 5.75% 6/15/40			200,000		230,656
	(Second General Resolution) Series FF 5.00% 6/15/31			500,000		553,595
	Series FF-2 5.50% 6/15/40			250,000		284,998
	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		229,836
						1,299,085
Total Municipal Bonds (cost $46,225,551)						49,806,208
Short-Term Investments – 2.31%
•Variable Rate Demand Notes – 2.31%
	New York City			900,000		900,000
	Series A-7 0.22% 8/1/21
	Series E2 0.22% 8/1/21
	(LOC, JPMorgan Chase Bank)			300,000		300,000
Total Short-Term Investments (cost $1,200,000)						1,200,000
Total Value of Securities – 98.25%
	(cost $47,425,551)					51,006,208
Receivables and Other Assets
	Net of Liabilities – 1.75%					908,106
Net Assets Applicable to 4,660,483
	Shares Outstanding – 100.00%				$	51,914,314

68

Net Asset Value – Delaware Tax-Free New York Fund
Class A ($37,715,646 / 3,383,582 Shares)		$11.15
Net Asset Value – Delaware Tax-Free New York Fund
Class B ($736,630 / 66,230 Shares)		$11.12
Net Asset Value – Delaware Tax-Free New York Fund
Class C ($13,462,038 / 1,210,671 Shares)		$11.12
Components of Net Assets at August 31, 2010:
Shares of beneficial interest (unlimited authorization – no par)	$	48,369,674
Distributions in excess of net investment income		(651	)
Accumulated net realized loss on investments		(35,366	)
Net unrealized appreciation of investments		3,580,657
Total net assets	$	51,914,314

 

•	Variable rate security. The rate shown is the rate as of August 31, 2010. Interest rates reset periodically.
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.”

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
LOC — Letter of Credit
NATL-RE — Insured by the National Public Finance Guarantee Corporation

69

Statements of net assets
Delaware Tax-Free New York Fund

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free New York Fund
Net asset value Class A (A)	$	11.15
Sales charge (4.50% of offering price) (B)		0.53
Offering price	$	11.68

(A)	Net asset value per share, as illustrated, is the amount which would be paid upon redemption or repurchase of shares.
(B)	See the current prospectus for purchases of $100,000 or more.

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

70

Statements of operations
	Year Ended August 31, 2010

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
Investment Income:
Interest		$	5,849,783			$	4,408,103			$	12,643,605
Expenses:
Management fees			609,119				456,995				1,364,806
Distribution expenses – Class A			273,770				163,093				580,811
Distribution expenses – Class B			44,721				39,019				20,831
Distribution expenses – Class C			76,412				138,361				136,433
Dividend disbursing and transfer agent
fees and expenses			65,648				53,512				128,674
Accounting and administration expenses			48,326				33,065				98,757
Legal fees			19,953				9,911				29,277
Audit and tax			16,975				15,306				23,609
Registration fees			15,632				8,106				7,946
Reports and statements to shareholders			13,200				9,204				29,898
Pricing fees			7,573				7,748				9,025
Trustees’ fees			7,011				4,752				14,237
Dues and services			5,270				3,476				9,020
Insurance fees			5,011				3,229				9,704
Custodian fees			2,339				1,555				4,634
Consulting fees			1,789				1,207				3,644
Trustees’ expenses			503				332				1,078
			1,213,252				948,871				2,472,384
Less fees waived			(70,644	)			(132,474	)			(48,381	)
Less expense paid indirectly			(66	)			(46	)			(147	)
Total operating expenses			1,142,542				816,351				2,423,856
Net Investment Income			4,707,241				3,591,752				10,219,749
Net Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on investments			1,415,533				(292,440	)			2,102,920
Net change in unrealized appreciation/
depreciation of investments			5,624,262				7,517,014				12,877,406
Net Realized and Unrealized Gain
on Investments			7,039,795				7,224,574				14,980,326
Net Increase in Net Assets
Resulting from Operations		$	11,747,036			$	10,816,326			$	25,200,075

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

72

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
Investment Income:
Interest		$	5,686,271			$	1,852,251
Expenses:
Management fees			678,992				214,893
Distribution expenses – Class A			234,723				72,531
Distribution expenses – Class B			29,131				7,947
Distribution expenses – Class C			266,548				91,643
Dividend disbursing and transfer
agent fees and expenses			64,113				39,851
Accounting and administration expenses			49,119				15,541
Audit and tax			17,679				13,123
Reports and statements to shareholders			15,696				4,349
Legal fees			15,596				5,126
Pricing fees			9,013				9,340
Registration fees			8,374				11,164
Trustees’ fees			7,047				2,206
Insurance fees			4,312				1,193
Dues and services			3,499				1,717
Custodian fees			2,393				797
Consulting fees			1,783				563
Trustees’ expenses			607				148
			1,408,625				492,132
Less fees waived			(22,204	)			(104,739	)
Less expense paid indirectly			(67	)			(25	)
Total operating expenses			1,386,354				387,368
Net Investment Income			4,299,917				1,464,883
Net Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on investments			89,825				(26,599	)
Net change in unrealized appreciation/
depreciation of investments			6,715,627				2,648,873
Net Realized and Unrealized Gain
on Investments			6,805,452				2,622,274
Net Increase in Net Assets
Resulting from Operations		$	11,105,369			$	4,087,157

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

73

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

	Year Ended
	8/31/10			8/31/09
Increase in Net Assets from Operations:
Net investment income	$	4,707,241		$	4,979,083
Net realized gain on investments		1,415,533			676,245
Net change in unrealized
appreciation/depreciation of investments		5,624,262			283,443
Net increase in net assets resulting from operations		11,747,036			5,938,771
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,303,466	)		(4,473,743	)
Class B		(142,123	)		(247,800	)
Class C		(242,383	)		(235,244	)
		(4,687,972	)		(4,956,787	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		5,867,126			8,072,718
Class B		66			20,443
Class C		1,248,843			1,098,183
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,128,544			2,209,302
Class B		73,667			128,925
Class C		150,229			146,249
		9,468,475			11,675,820

74

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(19,829,331	)	$	(19,633,059	)
Class B		(3,923,060	)		(3,235,890	)
Class C		(1,103,623	)		(2,787,126	)
		(24,856,014	)		(25,656,075	)
Decrease in net assets derived from
capital share transactions		(15,387,539	)		(13,980,255	)
Net Decrease in Net Assets		(8,328,475	)		(12,998,271	)
Net Assets:
Beginning of year		127,454,947			140,453,218
End of year1	$	119,126,472		$	127,454,947
1Including undistributed net investment income	$	26,196		$	26,196

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

75

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	3,591,752		$	3,401,520
Net realized gain (loss) on investments		(292,440	)		709,018
Net change in unrealized
appreciation/depreciation of investments		7,517,014			(2,723,629	)
Net increase in net assets resulting from operations		10,816,326			1,386,909
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,925,853	)		(2,701,738	)
Class B		(146,321	)		(195,352	)
Class C		(516,624	)		(487,982	)
		(3,588,798	)		(3,385,072	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		15,942,030			8,313,126
Class B		140,364			90,914
Class C		3,335,303			2,115,521
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,696,001			1,547,832
Class B		105,254			137,850
Class C		357,093			358,106
		21,576,045			12,563,349

76

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(11,521,238	)	$	(14,448,671	)
Class B		(2,270,312	)		(1,676,431	)
Class C		(2,930,338	)		(3,594,180	)
		(16,721,888	)		(19,719,282	)
Increase (decrease) in net assets derived from
capital share transactions		4,854,157			(7,155,933	)
Net Increase (Decrease) in Net Assets		12,081,685			(9,154,096	)
Net Assets:
Beginning of year		79,599,898			88,753,994
End of year1	$	91,681,583		$	79,599,898
1Including undistributed net investment income	$	18,763		$	18,763

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

77

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	10,219,749		$	10,196,318
Net realized gain on investments		2,102,920			3,397,919
Net change in unrealized
appreciation/depreciation of investments		12,877,406			(4,848,204	)
Net increase in net assets resulting from operations		25,200,075			8,746,033
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(9,708,463	)		(9,697,369	)
Class B		(71,622	)		(116,434	)
Class C		(467,286	)		(355,221	)
		(10,247,371	)		(10,169,024	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		15,893,257			14,183,751
Class B		—			10,613
Class C		4,043,038			2,881,769
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		6,184,316			6,074,319
Class B		36,966			50,248
Class C		340,428			248,362
		26,498,005			23,449,062

78

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(24,936,523	)	$	(27,122,635	)
Class B		(1,418,824	)		(1,264,891	)
Class C		(1,594,446	)		(1,437,234	)
		(27,949,793	)		(29,824,760	)
Decrease in net assets derived from
capital share transactions		(1,451,788	)		(6,375,698	)
Net Increase (Decrease) in Net Assets		13,500,916			(7,798,689	)
Net Assets:
Beginning of year		240,628,256			248,426,945
End of year1	$	254,129,172		$	240,628,256
1Including undistributed net investment income	$	—		$	43,501

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

79

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

	Year Ended
	8/31/10			8/31/09
Increase in Net Assets from Operations:
Net investment income	$	4,299,917		$	3,502,126
Net realized gain on investments		89,825			242,232
Net change in unrealized
appreciation/depreciation of investments		6,715,627			2,073,940
Net increase in net assets resulting from operations		11,105,369			5,818,298
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(3,460,797	)		(2,944,277	)
Class B		(86,212	)		(136,217	)
Class C		(781,910	)		(403,213	)
		(4,328,919	)		(3,483,707	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		18,620,022			17,915,127
Class B		9,917			63,569
Class C		17,105,840			8,501,134
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,431,970			1,894,609
Class B		62,082			98,426
Class C		568,025			249,454
		38,797,856			28,722,319

80

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(8,321,667	)	$	(7,521,138	)
Class B		(1,131,494	)		(1,954,363	)
Class C		(2,773,980	)		(1,450,880	)
		(12,227,141	)		(10,926,381	)
Increase in net assets derived from
capital share transactions		26,570,715			17,795,938
Net Increase in Net Assets		33,347,165			20,130,529
Net Assets:
Beginning of year		108,980,435			88,849,906
End of year1	$	142,327,600		$	108,980,435
1Including undistributed (distributions in excess of)
net investment income	$	(11,219	)	$	5,851

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

81

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

	Year Ended
	8/31/10			8/31/09
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,464,883		$	900,508
Net realized gain (loss) on investments		(26,599	)		190,585
Net change in unrealized
appreciation/depreciation of investments		2,648,873			482,416
Net increase in net assets resulting from operations		4,087,157			1,573,509
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,144,578	)		(738,485	)
Class B		(25,736	)		(39,735	)
Class C		(290,855	)		(116,762	)
		(1,461,169	)		(894,982	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		16,389,706			10,366,325
Class B		9,343			47,828
Class C		8,918,180			3,939,824
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		717,620			403,783
Class B		15,971			22,930
Class C		198,252			62,861
		26,249,072			14,843,551

82

	Year Ended
	8/31/10			8/31/09
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(4,117,174	)	$	(3,831,875	)
Class B		(362,784	)		(593,493	)
Class C		(1,929,785	)		(585,220	)
		(6,409,743	)		(5,010,588	)
Increase in net assets derived from
capital share transactions		19,839,329			9,832,963
Net Increase in Net Assets		22,465,317			10,511,490
Net Assets:
Beginning of year		29,448,997			18,937,507
End of year1	$	51,914,314		$	29,448,997
1Including undistributed (distributions in excess of)
net investment income	$	(651	)	$	3,746

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

83

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

Total dividends and distributions

Net asset value, end of period

Total return1

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 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, which are an integral part of the financial statements.

84

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.090		$10.930		$11.070		$11.350		$11.560
0.447		0.431		0.444		0.465		0.467
0.668		0.158		(0.140	)	(0.280	)	(0.210	)
1.115		0.589		0.304		0.185		0.257
(0.445	)	(0.429	)	(0.444	)	(0.465	)	(0.467	)
(0.445	)	(0.429	)	(0.444	)	(0.465	)	(0.467	)
$11.760		$11.090		$10.930		$11.070		$11.350
10.27%		5.64%		2.78%		1.63%		2.31%
$108,214		$113,689		$122,027		$125,636		$131,468
0.86%		0.75%		0.75%		0.76%		0.76%
0.92%		0.91%		0.91%		0.91%		0.91%
3.94%		4.07%		4.02%		4.11%		4.12%
3.88%		3.91%		3.86%		3.96%		3.97%
15%		27%		29%		9%		8%

85

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

Total dividends and distributions

Net asset value, end of period

Total return1

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 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, which are an integral part of the financial statements.

86

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.100		$10.940		$11.070		$11.360		$11.570
0.362		0.352		0.361		0.380		0.382
0.658		0.158		(0.130	)	(0.290	)	(0.210	)
1.020		0.510		0.231		0.090		0.172
(0.360	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)
(0.360	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)
$11.760		$11.100		$10.940		$11.070		$11.360
9.35%		4.85%		2.10%		0.78%		1.54%
$2,917		$6,509		$9,620		$12,407		$16,413
1.61%		1.50%		1.50%		1.51%		1.51%
1.67%		1.66%		1.66%		1.66%		1.66%
3.19%		3.32%		3.27%		3.36%		3.37%
3.13%		3.16%		3.11%		3.21%		3.22%
15%		27%		29%		9%		8%

87

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

Total dividends and distributions

Net asset value, end of period

Total return1

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 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, which are an integral part of the financial statements.

88

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.120		$10.960		$11.090		$11.380		$11.580
0.363		0.352		0.361		0.380		0.381
0.668		0.158		(0.130	)	(0.290	)	(0.200	)
1.031		0.510		0.231		0.090		0.181
(0.361	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)
(0.361	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)
$11.790		$11.120		$10.960		$11.090		$11.380
9.43%		4.84%		2.09%		0.77%		1.63%
$7,995		$7,257		$8,806		$7,609		$8,117
1.61%		1.50%		1.50%		1.51%		1.51%
1.67%		1.66%		1.66%		1.66%		1.66%
3.19%		3.32%		3.27%		3.36%		3.37%
3.13%		3.16%		3.11%		3.21%		3.22%
15%		27%		29%		9%		8%

89

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 return1

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

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

90

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.620		$10.800		$11.010		$11.400		$11.490
0.497		0.448		0.449		0.454		0.450
0.950		(0.182	)	(0.210	)	(0.390	)	(0.090	)
1.447		0.266		0.239		0.064		0.360
(0.497	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)
(0.497	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)
$11.570		$10.620		$10.800		$11.010		$11.400
13.92%		2.74%		2.21%		0.51%		3.24%
$72,902		$61,132		$67,174		$76,537		$75,995
0.82%		0.88%		0.88%		0.89%		0.88%
0.98%		0.97%		0.97%		0.97%		0.97%
4.48%		4.42%		4.11%		3.98%		3.97%
4.32%		4.33%		4.02%		3.90%		3.88%
35%		59%		34%		21%		14%

91

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 return1

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

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

92

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.670		$10.840		$11.060		$11.440		$11.530
0.416		0.373		0.367		0.368		0.365
0.940		(0.172	)	(0.220	)	(0.380	)	(0.090	)
1.356		0.201		0.147		(0.012	)	0.275
(0.416	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
(0.416	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
$11.610		$10.670		$10.840		$11.060		$11.440
12.93%		2.07%		1.34%		(0.15%	)	2.46%
$3,254		$4,938		$6,589		$9,384		$14,918
1.57%		1.63%		1.63%		1.64%		1.63%
1.73%		1.72%		1.72%		1.72%		1.72%
3.73%		3.67%		3.36%		3.23%		3.22%
3.57%		3.58%		3.27%		3.15%		3.13%
35%		59%		34%		21%		14%

93

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 return1

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

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

94

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.640		$10.810		$11.030		$11.420		$11.500
0.415		0.373		0.367		0.368		0.365
0.950		(0.172	)	(0.220	)	(0.390	)	(0.080	)
1.365		0.201		0.147		(0.022	)	0.285
(0.415	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
(0.415	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
$11.590		$10.640		$10.810		$11.030		$11.420
13.06%		2.07%		1.35%		(0.24%	)	2.56%
$15,526		$13,530		$14,991		$13,453		$12,768
1.57%		1.63%		1.63%		1.64%		1.63%
1.73%		1.72%		1.72%		1.72%		1.72%
3.73%		3.67%		3.36%		3.23%		3.22%
3.57%		3.58%		3.27%		3.15%		3.13%
35%		59%		34%		21%		14%

95

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 return1

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 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, which are an integral part of the financial statements.

96

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.600		$10.640		$10.730		$11.040		$11.200
0.455		0.452		0.448		0.464		0.488
0.661		(0.041	)	(0.089	)	(0.310	)	(0.160	)
1.116		0.411		0.359		0.154		0.328
(0.456	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)
(0.456	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)
$11.260		$10.600		$10.640		$10.730		$11.040
10.74%		4.11%		3.38%		1.38%		3.03%
$237,545		$226,393		$234,630		$246,695		$258,773
0.93%		0.90%		0.93%		0.94%		0.93%
0.95%		0.95%		0.95%		0.96%		0.94%
4.16%		4.43%		4.16%		4.22%		4.43%
4.14%		4.38%		4.14%		4.20%		4.42%
17%		27%		15%		12%		8%

97

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 return1

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 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, which are an integral part of the financial statements.

98

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.610		$10.640		$10.730		$11.050		$11.200
0.373		0.375		0.367		0.382		0.405
0.661		(0.031	)	(0.089	)	(0.320	)	(0.150	)
1.034		0.344		0.278		0.062		0.255
(0.374	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
(0.374	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
$11.270		$10.610		$10.640		$10.730		$11.050
9.91%		3.43%		2.60%		0.53%		2.35%
$1,429		$2,693		$3,961		$5,326		$8,221
1.68%		1.65%		1.68%		1.69%		1.68%
1.70%		1.70%		1.70%		1.71%		1.69%
3.41%		3.68%		3.41%		3.47%		3.68%
3.39%		3.63%		3.39%		3.45%		3.67%
17%		27%		15%		12%		8%

99

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 return1

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 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, which are an integral part of the financial statements.

100

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.630		$10.660		$10.750		$11.070		$11.220
0.374		0.375		0.367		0.382		0.405
0.661		(0.031	)	(0.089	)	(0.320	)	(0.150	)
1.035		0.344		0.278		0.062		0.255
(0.375	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
(0.375	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
$11.290		$10.630		$10.660		$10.750		$11.070
9.90%		3.43%		2.60%		0.53%		2.34%
$15,155		$11,542		$9,836		$10,152		$9,971
1.68%		1.65%		1.68%		1.69%		1.68%
1.70%		1.70%		1.70%		1.71%		1.69%
3.41%		3.68%		3.41%		3.47%		3.68%
3.39%		3.63%		3.39%		3.45%		3.67%
17%		27%		15%		12%		8%

101

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 return1

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 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, which are an integral part of the financial statements.

102

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.490		$11.260		$11.260		$11.450		$11.630
0.431		0.436		0.437		0.448		0.449
0.633		0.228		—		(0.190	)	(0.180	)
1.064		0.664		0.437		0.258		0.269
(0.434	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)
(0.434	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)
$12.120		$11.490		$11.260		$11.260		$11.450
9.44%		6.12%		3.93%		2.27%		2.40%
$104,287		$86,445		$72,237		$69,931		$62,808
0.94%		0.88%		0.85%		0.86%		0.85%
0.96%		0.96%		0.96%		0.98%		0.98%
3.66%		3.94%		3.87%		3.92%		3.95%
3.64%		3.86%		3.76%		3.80%		3.82%
7%		10%		11%		8%		15%

103

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 return1

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 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, which are an integral part of the financial statements.

104

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.470		$11.240		$11.240		$11.430		$11.610
0.343		0.353		0.353		0.363		0.364
0.633		0.228		—		(0.190	)	(0.180	)
0.976		0.581		0.353		0.173		0.184
(0.346	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)
(0.346	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)
$12.100		$11.470		$11.240		$11.240		$11.430
8.64%		5.34%		3.17%		1.51%		1.64%
$2,450		$3,359		$5,123		$6,003		$7,892
1.69%		1.63%		1.60%		1.61%		1.60%
1.71%		1.71%		1.71%		1.73%		1.73%
2.91%		3.19%		3.12%		3.17%		3.20%
2.89%		3.11%		3.01%		3.05%		3.07%
7%		10%		11%		8%		15%

105

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 return1

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 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, which are an integral part of the financial statements.

106

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$11.480		$11.250		$11.250		$11.440		$11.630
0.342		0.353		0.352		0.363		0.364
0.633		0.228		—		(0.190	)	(0.190	)
0.975		0.581		0.352		0.173		0.174
(0.345	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)
(0.345	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)
$12.110		$11.480		$11.250		$11.250		$11.440
8.63%		5.34%		3.16%		1.51%		1.56%
$35,591		$19,176		$11,490		$11,535		$13,430
1.69%		1.63%		1.60%		1.61%		1.60%
1.71%		1.71%		1.71%		1.73%		1.73%
2.91%		3.19%		3.12%		3.17%		3.20%
2.89%		3.11%		3.01%		3.05%		3.07%
7%		10%		11%		8%		15%

107

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 return1

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

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

108

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.450		$10.300		$10.300		$10.550		$10.700
0.429		0.409		0.411		0.435		0.449
0.700		0.148		—		(0.250	)	(0.150	)
1.129		0.557		0.411		0.185		0.299
(0.429	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)
(0.429	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)
$11.150		$10.450		$10.300		$10.300		$10.550
11.02%		5.65%		4.04%		1.75%		2.90%
$37,716		$22,780		$15,340		$14,817		$13,519
0.80%		0.85%		0.85%		0.79%		0.65%
1.07%		1.10%		1.09%		1.10%		1.09%
3.94%		4.10%		3.97%		4.13%		4.28%
3.67%		3.85%		3.73%		3.82%		3.84%
15%		36%		28%		14%		20%

109

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 return1

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

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

110

Year Ended
8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
$10.420		$10.270		$10.280		$10.530		$10.670
0.347		0.334		0.333		0.357		0.370
0.700		0.148		(0.010	)	(0.250	)	(0.140	)
1.047		0.482		0.323		0.107		0.230
(0.347	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)
(0.347	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)
$11.120		$10.420		$10.270		$10.280		$10.530
10.21%		4.88%		3.17%		0.99%		2.23%
$736		$1,018		$1,549		$2,164		$2,858
1.55%		1.60%		1.60%		1.54%		1.40%
1.82%		1.85%		1.84%		1.85%		1.84%
3.19%		3.35%		3.22%		3.38%		3.53%
2.92%		3.10%		2.98%		3.07%		3.09%
15%		36%		28%		14%		20%

111

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 return1

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

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

112

Year Ended
	8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
	$10.420		$10.270		$10.280		$10.530		$10.670
	0.346		0.333		0.333		0.357		0.370
	0.700		0.148		(0.010	)	(0.250	)	(0.140	)
	1.046		0.481		0.323		0.107		0.230
	(0.346	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)
	(0.346	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)
	$11.120		$10.420		$10.270		$10.280		$10.530
	10.20%		4.88%		3.17%		0.99%		2.23%
	$13,462		$5,651		$2,049		$2,131		$2,068
	1.55%		1.60%		1.60%		1.54%		1.40%
	1.82%		1.85%		1.84%		1.85%		1.84%
	3.19%		3.35%		3.22%		3.38%		3.53%
	2.92%		3.10%		2.98%		3.07%		3.09%
	15%		36%		28%		14%		20%

113

Notes to financial statements
Delaware multiple state tax-free funds	August 31, 2010

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 non-diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and personal income tax in its respective state, as is consistent with preservation of capital.

1. Significant Accounting Policies

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

Security Valuation — Debt securities are valued 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. These securities will generally be categorized as Level 2 investments. Open-end investment companies are valued at their published net asset value. These securities will generally be categorized as Level 1 investments. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. These securities will generally be categorized as Level 3 investments.

114

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, 2007 - August 31, 2010), 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material.

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

The Funds 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 year ended August 31, 2010.

115

Notes to financial statements
Delaware multiple state tax-free funds

1. Significant Accounting Policies (continued)

The Funds may receive earnings credits from their transfer agent when positive cash balances are maintained, which may be used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding offset shown as “expense paid indirectly.” For the year ended August 31, 2010, the Funds earned the following amounts under this agreement:

Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free	Delaware Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
$66	$46	$147	$67	$25

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.

116

	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 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

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 year ended August 31, 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
$6,091	$4,155	$12,407	$6,173	$1,954

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.

117

Notes to financial statements
Delaware multiple state tax-free funds

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

At August 31, 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	$	50,132	$	30,131	$	117,462	$	64,741	$	11,850
Dividend disbursing,
transfer agent and fund
accounting oversight
fees and other expenses
payable to DSC		2,270		1,804		5,108		2,650		1,246
Distribution fees
payable to DDLP		31,912		30,784		63,700		52,383		19,105
Other expenses payable to
DMC and affiliates*		4,228		3,412		7,983		3,995		2,455

*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 year ended August 31, 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
$4,563	$3,294	$9,785	$5,373	$1,848

For the year ended August 31, 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
$10,452	$14,210	$23,982	$57,128	$45,905

118

For the year ended August 31, 2010, DDLP received gross CDSC commissions on redemptions of each Fund’s Class A, Class B and Class C shares, and these commissions were entirely used to offset up-front commissions previously paid by DDLP to broker/dealers on sales of those shares. The amounts received were as follows:

	Delaware		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		1,009		261		303		535		—
Class C		445		1,803		1,085		9,119		844

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 year ended August 31, 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	$18,431,501	$30,471,028	$41,337,553	$37,688,730	$24,034,969
Sales	33,144,867	28,406,921	42,191,387	8,050,034	5,779,101

At August 31, 2010, the cost of investments and unrealized appreciation (depreciation) for federal income tax purposes 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	$	111,694,928		$	86,068,606		$	237,480,796		$	133,317,440			$	47,417,949
Aggregate
unrealized
appreciation	$	7,992,529		$	5,393,989		$	15,897,546		$	9,768,272			$	3,675,703
Aggregate
unrealized
depreciation		(346,228	)		(1,018,756	)		(2,345,809	)		(6,963	)			(87,444	)
Net unrealized
appreciation	$	7,646,301		$	4,375,233		$	13,551,737		$	9,761,309			$	3,588,259

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

119

Notes to financial statements
Delaware multiple state tax-free funds

3. Investments (continued)

measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. Each Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 –	inputs are quoted prices in active markets for identical investments
Level 2 –	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
Level 3 –	inputs are significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments)

The following table summarizes the valuation of the Funds’ investments by fair value hierarchy levels as of August 31, 2010:

	Delaware Tax-Free Arizona Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	118,095,526	$	118,095,526
Short-Term Investment		1,245,703		—		1,245,703
Total	$	1,245,703	$	118,095,526	$	119,341,229
	Delaware Tax-Free California Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	88,983,231	$	88,983,231
Short-Term Investments		460,608		1,000,000		1,460,608
Total	$	460,608	$	89,983,231	$	90,443,839
	Delaware Tax-Free Colorado Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	250,654,145	$	250,654,145
Short-Term Investment		378,388		—		378,388
Total	$	378,388	$	250,654,145	$	251,032,533

120

	Delaware Tax-Free Idaho Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	140,081,231	$	140,081,231
Short-Term Investments		297,518		2,700,000		2,997,518
Total	$	297,518	$	142,781,231	$	143,078,749
	Delaware Tax-Free New York Fund
			Level 2
Municipal Bonds			$	49,806,208
Short-Term Investments				1,200,000
Total			$	51,006,208

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

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduced new disclosure requirements and clarified 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’ fiscal year ending August 31, 2010 and interim periods therein. During the year ended August 31, 2010, there were no transfers of securities between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the 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 years ended August 31, 2010 and 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
Year Ended 8/31/10
Tax-exempt income		$	4,579,114		$	3,488,842		$	10,068,514		$	4,144,275		$	1,443,380
Ordinary income			108,858			99,956			178,857			184,644			17,789
Total		$	4,687,972		$	3,588,798		$	10,247,371		$	4,328,919		$	1,461,169
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

121

Notes to financial statements
Delaware multiple state tax-free funds

5. Components of Net Assets on a Tax Basis

As of August 31, 2010, the 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	$	111,486,795		$	87,796,897		$	243,576,419		$	132,577,310		$48,369,674
Undistributed
long-term
capital gains		—			—			—			200		—
Distributions
payable		(110,017	)		(89,889	)		(246,421	)		(116,278	)	(42,305	)
Undistributed
tax-exempt
income		136,213			108,652			246,421			105,059		41,654
Post-October
losses		—			(499,093	)		—			—		(19,786	)
Capital loss
carryforwards		(32,820	)		(10,217	)		(2,998,984	)		—		(23,182	)
Unrealized
appreciation of
investments		7,646,301			4,375,233			13,551,737			9,761,309		3,588,259
Net assets	$	119,126,472		$	91,681,583		$	254,129,172		$	142,327,600		$51,914,314

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

Post-October losses represent losses realized on investment transactions from November 1, 2009 through August 31, 2010 that, in accordance with federal income tax regulations, the identified Funds have elected to defer and treat as having arisen in the following fiscal year.

122

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 debt instruments. Results of operations and net assets were not affected by these reclassifications. For the year ended August 31, 2010, the Funds recorded the following reclassifications:

	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	$	(19,269	)	$	(2,954	)	$	(15,879	)	$	11,932		$	(8,111	)
Accumulated net realized
gain (loss)		19,269			2,954			15,879			(11,932	)		8,111

For federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. In 2010, the Funds utilized capital loss carryforwards as follows:

Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund
$1,415,651	$217,477	$2,102,969	$89,623

Capital loss carryforwards remaining at August 31, 2010 will expire as follows:

	Delaware			Delaware			Delaware			Delaware
Year of	Tax-Free			Tax-Free			Tax-Free			Tax-Free
Expiration	Arizona Fund			California Fund			Colorado Fund			New York Fund
2012		$	32,820		$	—		$	693,591		$	—
2013			—			—			57,695			—
2014			—			—			2,203,520			—
2016			—			10,217			44,178			14,929
2018			—			—			—			8,253
Total		$	32,820		$	10,217		$	2,998,984		$	23,182

123

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
	Year Ended				Year Ended				Year Ended
	8/31/10		8/31/09		8/31/10		8/31/09		8/31/10		8/31/09
Shares sold:
Class A	515,840		756,808		1,434,211		825,013		1,455,185		1,387,638
Class B	6		1,968		12,712		9,030		—		1,049
Class C	109,633		102,547		298,932		208,816		370,563		281,038
Shares issued upon reinvestment of dividends and distributions:
Class A	187,152		207,965		152,556		152,565		566,146		595,084
Class B	6,483		12,138		9,449		13,524		3,385		4,925
Class C	13,172		13,735		32,069		35,227		31,073		24,239
	832,286		1,095,161		1,939,929		1,244,175		2,426,352		2,293,973
Shares repurchased:
Class A	(1,748,428	)	(1,879,717	)	(1,038,915	)	(1,444,076	)	(2,288,864	)	(2,677,810	)
Class B	(344,965	)	(307,293	)	(204,969	)	(167,397	)	(130,484	)	(124,079	)
Class C	(97,006	)	(267,390	)	(262,607	)	(358,482	)	(145,599	)	(141,654	)
	(2,190,399	)	(2,454,400	)	(1,506,491	)	(1,969,955	)	(2,564,947	)	(2,943,543	)
Net increase
(decrease)	(1,358,113	)	(1,359,239	)	433,438		(725,780	)	(138,595	)	(649,570	)

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
	Year Ended				Year Ended
	8/31/10		8/31/09		8/31/10		8/31/09
Shares sold:
Class A	1,582,213		1,615,020		1,519,766		1,035,723
Class B	853		5,765		880		4,787
Class C	1,457,021		758,087		830,745		396,933
Shares issued upon reinvestment of dividends and distributions:
Class A	206,666		171,510		66,469		40,258
Class B	5,292		8,957		1,486		2,303
Class C	48,259		22,570		18,395		6,249
	3,300,304		2,581,909		2,437,741		1,486,253
Shares repurchased:
Class A	(709,358	)	(679,777	)	(383,035	)	(385,163	)
Class B	(96,566	)	(177,717	)	(33,835	)	(60,185	)
Class C	(237,236	)	(131,937	)	(180,662	)	(60,407	)
	(1,043,160	)	(989,431	)	(597,532	)	(505,755	)
Net increase	2,257,144		1,592,478		1,840,209		980,498

124

For the years ended August 31, 2010 and 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 on page 123 and the statements of changes in net assets.

	Year Ended			Year Ended
	8/31/10			8/31/09
	Class B	Class A		Class B	Class A
	Shares	Shares	Value	Shares	Shares	Value
Delaware Tax-Free
Arizona Fund	202,963	203,104	$2,307,336	126,754	126,825	$1,338,820
Delaware Tax-Free
California Fund	118,852	119,295	1,315,929	92,283	92,659	913,283
Delaware Tax-Free
Colorado Fund	80,300	80,348	875,705	28,997	29,016	288,928
Delaware Tax-Free
Idaho Fund	67,072	66,958	786,291	58,929	58,820	644,988
Delaware Tax-Free
New York Fund	24,033	23,966	257,369	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 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 August 31, 2010 or at any time during the year then ended.

125

Notes to financial statements
Delaware multiple state tax-free funds

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 August 31, 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
37.67%	18.94%	25.23%	29.40%	10.59%

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.

126

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 August 31, 2010, Rule 144A and illiquid securities have been identified on the statements of net assets.

9. Contractual Obligations

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

10. Subsequent Events

Management has determined no material events or transactions occurred subsequent to August 31, 2010 that would require recognition or disclosure in the Funds’ financial statements.

11. Tax Information (Unaudited)

The information set forth below is for each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal years of a fund. Accordingly, the information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax advisor for proper treatment of this information.

For the fiscal year ended August 31, 2010, each Fund designates distributions paid during the year as follows:

	(A)
	Ordinary	(B)
	Income	Tax-Exempt	Total
	Distributions	Distributions	Distributions
	(Tax Basis)	(Tax Basis)	(Tax Basis)
Delaware Tax-Free Arizona Fund	2.32%	97.68%	100.00%
Delaware Tax-Free California Fund	2.79%	97.21%	100.00%
Delaware Tax-Free Colorado Fund	1.75%	98.25%	100.00%
Delaware Tax-Free Idaho Fund	4.27%	95.73%	100.00%
Delaware Tax-Free New York Fund	1.22%	98.78%	100.00%

(A) and (B) are based on a percentage of each Fund’s total distributions.

127

Report of independent
registered public accounting firm

To the Board of Trustees of Voyageur Insured Funds, Voyageur Mutual Funds and Voyageur Mutual Funds II and the Shareholders of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Tax-Free New York Fund and Delaware Tax-Free Colorado Fund:

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Delaware Tax-Free Arizona Fund (constituting Voyageur Insured Funds), Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund (three of the series constituting Voyageur Mutual Funds) and Delaware Tax-Free Colorado Fund (constituting Voyageur Mutual Funds II) (hereafter collectively referred to as the “Funds”) at August 31, 2010, and the results of their operations, the changes in each of their net assets and the financial highlights for the year then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets for the year ended August 31, 2009 and the financial highlights for each of the four years in the period ended August 31, 2009 were audited by other independent accountants whose report dated October 19, 2009 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 19, 2010

128

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

Change in Independent Registered Public Accounting Firm

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

129

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

A mutual fund is governed by a Board of Trustees/Directors (“Trustees”), which has oversight responsibility for the management of a fund’s business affairs. Trustees establish procedures and oversee and review the performance of the investment manager, the distributor, and others who perform services for the fund. The independent fund trustees, in particular, are advocates

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Interested Trustees
Patrick P. Coyne1	Chairman, President,	Chairman and Trustee
2005 Market Street	Chief Executive Officer,	since August 16, 2006
Philadelphia, PA 19103	and Trustee
April 1963		President and
		Chief Executive Officer
		since August 1, 2006

1 Patrick P. Coyne is considered to be an “Interested Trustee” because he is an executive officer of the Fund’s(s’) investment advisor.

130

for shareholder interests. Each trustee has served in that capacity since he or she was elected to or appointed to the Board of Trustees, and will continue to serve until his or her retirement or the election of a new trustee in his or her place. The following is a list of the Trustees and Officers with certain background and related information.

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Patrick P. Coyne has served in	81	Director
various executive capacities		Kaydon Corp.
at different times at
Delaware Investments.2		Board of Governors Member
		Investment Company
		Institute (ICI)
		Finance Committee Member
		St. John Vianney Roman
		Catholic Church
		Board of Trustees
		Agnes Irwin School
		Member of Investment
		Committee
		Cradle of Liberty Council,
		BSA
		(2007 – 2010)

2 Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries, including the Fund’s(s’) investment advisor, principal underwriter, and its transfer agent.

131

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees
Thomas L. Bennett	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
October 1947
John A. Fry	Trustee	Since January 2001
2005 Market Street
Philadelphia, PA 19103
May 1960
Anthony D. Knerr	Trustee	Since April 1990
2005 Market Street
Philadelphia, PA 19103
December 1938
Lucinda S. Landreth	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
June 1947

132

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Private Investor	81	Director
(March 2004–Present)		Bryn Mawr Bank Corp. (BMTC)
Investment Manager		Chairman of Investment
Morgan Stanley & Co.		Committee
(January 1984–March 2004)		Pennsylvania Academy of
		Fine Arts
		Investment Committee and
		Governance Committee
		Member
		Pennsylvania Horticultural
		Society
President	81	Director
Drexel University		Community Health Systems
(August 2010–Present)
		Director — Ecore
President		International
Franklin & Marshall College		(2009-2010)
(July 2002–July 2010)
		Director — Allied
Executive Vice President		Barton Securities Holdings
University of Pennsylvania		(2005 to 2008)
(April 1995–June 2002)
Founder and	81	None
Managing Director
Anthony Knerr & Associates
(Strategic Consulting)
(1990–Present)
Chief Investment Officer	81	None
Assurant, Inc. (Insurance)
(2002–2004)

133

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Ann R. Leven	Trustee	Since October 1989
2005 Market Street
Philadelphia, PA 19103
November 1940
Thomas F. Madison	Trustee	Since May 19973
2005 Market Street
Philadelphia, PA 19103
February 1936

3 In 1997, several funds managed by Voyageur Fund Managers, Inc. (the “Voyageur Funds”) were incorporated into the Delaware Investments Family of Funds. Mr. Madison served as a director of the Voyageur Funds from 1993 until 1997.

134

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
Consultant	81	Director and Audit
ARL Associates		Committee Chair –
(Financial Planning)		Systemax Inc.
(1983–Present)		(2001 – 2009)
		Director and Audit
		Committee Chairperson –
		Andy Warhol Foundation
		(1999 – 2007)
President and	81	Director and Chair of
Chief Executive Officer		Compensation Committee,
MLM Partners, Inc.		Governance Committee
(Small Business Investing		Member
and Consulting)		CenterPoint Energy
(January 1993–Present)
		Lead Director and Chair of
		Audit and Governance
		Committees, Member of
		Compensation Committee
		Digital River, Inc.
		Director and Chair of
		Governance Committee,
		Audit Committee
		Member
		Rimage Corporation
		Director and Chair of
		Compensation Committee
		Spanlink Communications
		Lead Director and Member of
		Compensation and
		Governance Committees
		Valmont Industries, Inc.
		(1987 – 2010)

135

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Independent Trustees (continued)
Thomas F. Madison
2005 Market Street
Philadelphia, PA 19103
February 1936
Janet L. Yeomans	Trustee	Since April 1999
2005 Market Street
Philadelphia, PA 19103
July 1948
J. Richard Zecher	Trustee	Since March 2005
2005 Market Street
Philadelphia, PA 19103
July 1940

136

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
		Director
		Banner Health
		(1996 to 2007)
Vice President and Treasurer	81	Director
(January 2006–Present)		Okabena Company
Vice President — Mergers & Acquisitions
(January 2003–January 2006), and
Vice President
(July 1995–January 2003)
3M Corporation
Founder	81	Director and Audit
Investor Analytics		Committee Member
(Risk Management)		Investor Analytics
(May 1999–Present)
Founder		Director
Sutton Asset Management		Oxigene, Inc.
(Hedge Fund)		(2003 to 2008)
(September 1996–Present)

137

Board of trustees/directors and officers addendum
Delaware Investments® Family of Funds

Name, Address,	Position(s)	Length of
and Birth Date	Held with Fund(s)	Time Served
Officers
David F. Connor	Vice President,	Vice President since
2005 Market Street	Deputy General	September 2000
Philadelphia, PA 19103	Counsel, and Secretary	and Secretary since
December 1963		October 2005
Daniel V. Geatens	Vice President	Treasurer
2005 Market Street	and Treasurer	since October 25, 2007
Philadelphia, PA 19103
October 1972
David P. O’Connor	Senior Vice President,	Senior Vice President,
2005 Market Street	General Counsel,	General Counsel, and
Philadelphia, PA 19103	and Chief Legal Officer	Chief Legal Officer
February 1966		since October 2005
Richard Salus	Senior Vice President	Chief Financial Officer
2005 Market Street	and Chief Financial Officer	since November 2006
Philadelphia, PA 19103
October 1963

The Statement of Additional Information for the Fund(s) includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 800 523-1918.

138

	Number of Portfolios in
Principal Occupation(s)	Fund Complex Overseen	Other Directorships
During Past 5 Years	by Trustee or Officer	Held by Trustee or Officer
David F. Connor has served as	81	None4
Vice President and Deputy
General Counsel of
Delaware Investments
since 2000.
Daniel V. Geatens has served	81	None4
in various capacities at
different times at
Delaware Investments.
David P. O’Connor has served in	81	None4
various executive and legal
capacities at different times
at Delaware Investments.
Richard Salus has served in	81	None4
various executive capacities
at different times at
Delaware Investments.

4 David F. Connor, Daniel V. Geatens, David P. O’Connor, and Richard Salus serve in similar capacities for the six portfolios of the Optimum Fund Trust, which have the same investment advisor, principal underwriter, and transfer agent as the registrant.

139

About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA John A. Fry President Drexel University Philadelphia, PA	Anthony D. Knerr Founder and Managing Director Anthony Knerr & Associates New York, NY Lucinda S. Landreth Former Chief Investment Officer Assurant, Inc. Philadelphia, PA	Ann R. Leven Consultant ARL Associates New York, NY 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 annual 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 fact sheet 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.

140

Item 2. Code of Ethics

     The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. A copy of the registrant’s Code of Business Ethics has been posted on Delaware Investments’ internet website at www.delawareinvestments.com. Any amendments to the Code of Business Ethics, and information on any waiver from its provisions granted by the registrant, will also be posted on this website within five business days of such amendment or waiver and will remain on the website for at least 12 months.

Item 3. Audit Committee Financial Expert

The registrant’s Board of Trustees/Directors has determined that each member of the registrant’s Audit Committee is an audit committee financial expert, as defined below. For purposes of this item, an “audit committee financial expert” is a person who has the following attributes:

a. An understanding of generally accepted accounting principles and financial statements;

b. The ability to assess the general application of such principles in connection with the accounting for estimates, accruals, and reserves;

c. Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements, or experience actively supervising one or more persons engaged in such activities;

d. An understanding of internal controls and procedures for financial reporting; and

e. An understanding of audit committee functions.

An “audit committee financial expert” shall have acquired such attributes through:

a. Education and experience as a principal financial officer, principal accounting officer, controller, public accountant, or auditor or experience in one or more positions that involve the performance of similar functions;

b. Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor, or person performing similar functions;

c. Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing, or evaluation of financial statements; or

d. Other relevant experience.

The registrant’s Board of Trustees/Directors has also determined that each member of the registrant’s Audit Committee is independent. In order to be “independent” for purposes of this item, the Audit Committee member may not: (i) other than in his or her capacity as a member of the Board of Trustees/Directors or any committee thereof, accept directly or indirectly any consulting, advisory or other compensatory fee from the issuer; or (ii) be an “interested person” of the registrant as defined in Section 2(a)(19) of the Investment Company Act of 1940.

The names of the audit committee financial experts on the registrant’s Audit Committee are set forth below:

Thomas L. Bennett 1
John A. Fry
Thomas F. Madison
Janet L. Yeomans
J. Richard Zecher

Item 4. Principal Accountant Fees and Services

(a) Audit fees.

The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $68,700 for the fiscal year ended August 31, 2010.

____________________

1 The instructions to Form N-CSR require disclosure on the relevant experience of persons who qualify as audit committee financial experts based on “other relevant experience.” The Board of Trustees/Directors has determined that Mr. Bennett qualifies as an audit committee financial expert by virtue of his education, Chartered Financial Analyst designation, and his experience as a credit analyst, portfolio manager and the manager of other credit analysts and portfolio managers.

     The aggregate fees billed for services provided to the registrant by its independent auditors for the audit of the registrant’s annual financial statements and for services normally provided by the independent auditors in connection with statutory and regulatory filings or engagements were $64,400 for the fiscal year ended August 31, 2009.

(b) Audit-related fees.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2010.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $84,000 for the registrant’s fiscal year ended August 31, 2010. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the deminimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: audit procedures performed on Delaware Investments for its consolidation into Macquarie’s financial statements as of March 31, 2010.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the registrant’s financial statements and not reported under paragraph (a) of this Item were $0 for the fiscal year ended August 31, 2009.

The aggregate fees billed by the registrant’s independent auditors for services relating to the performance of the audit of the financial statements of the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $19,074 for the registrant’s fiscal year ended August 31, 2009. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the deminimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These audit-related services were as follows: issuance of report concerning transfer agent's system of internal accounting control pursuant to Rule 17Ad-13 of the Securities Exchange Act.

     (c) Tax fees.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $12,350 for the fiscal year ended August 31, 2010. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the deminimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2010.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant were $16,750 for the fiscal year ended August 31, 2009. The percentage of these fees relating to services approved by the registrant’s Audit Committee pursuant to the deminimis exception from the pre-approval requirement in Rule 2-01(c)(7)(i)(C) of Regulation S-X was 0%. These tax-related services were as follows: review of income tax returns and review of annual excise distribution calculations.

The aggregate fees billed by the registrant’s independent auditors for tax-related services provided to the registrant’s investment adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2009.

(d) All other fees.

The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2010.

The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2010.

The aggregate fees billed for all services provided by the independent auditors to the registrant other than those set forth in paragraphs (a), (b) and (c) of this Item were $0 for the fiscal year ended August 31, 2009.

The aggregate fees billed for all services other than those set forth in paragraphs (b) and (c) of this Item provided by the registrant’s independent auditors to the registrant’s adviser and other service providers under common control with the adviser and that relate directly to the operations or financial reporting of the registrant were $0 for the registrant’s fiscal year ended August 31, 2009.

(e) The registrant’s Audit Committee has established pre-approval policies and procedures as permitted by Rule 2-01(c)(7)(i)(B) of Regulation S-X (the “Pre-Approval Policy”) with respect to services provided by the registrant’s independent auditors. Pursuant to the Pre-Approval Policy, the Audit Committee has pre-approved the services set forth in the table below with respect to the registrant up to the specified fee limits. Certain fee limits are based on aggregate fees to the registrant and other registrants within the Delaware Investments Family of Funds.

Service	Range of Fees
Audit Services
Statutory audits or financial audits for new Funds	up to $25,000 per Fund
Services associated with SEC registration statements (e.g., Form N-1A, Form N-14, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., comfort letters for closed-end Fund offerings, consents), and assistance in responding to SEC comment letters	up to $10,000 per Fund
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and/or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit-related services” rather than “audit services”)	up to $25,000 in the aggregate
Audit-Related Services
Consultations by Fund management as to the accounting or disclosure treatment of transactions or events and /or the actual or potential impact of final or proposed rules, standards or interpretations by the SEC, FASB, or other regulatory or standard-setting bodies (Note: Under SEC rules, some consultations may be considered “audit services” rather than “audit-related services”)	up to $25,000 in the aggregate
Tax Services
U.S. federal, state and local and international tax planning and advice (e.g., consulting on statutory, regulatory or administrative developments, evaluation of Funds’ tax compliance function, etc.)	up to $25,000 in the aggregate
U.S. federal, state and local tax compliance (e.g., excise distribution reviews, etc.)	up to $5,000 per Fund
Review of federal, state, local and international income, franchise and other tax returns	up to $5,000 per Fund

     Under the Pre-Approval Policy, the Audit Committee has also pre-approved the services set forth in the table below with respect to the registrant’s investment adviser and other entities controlling, controlled by or under common control with the investment adviser that provide ongoing services to the registrant (the “Control Affiliates”) up to the specified fee limit. This fee limit is based on aggregate fees to the investment adviser and its Control Affiliates.

Service	Range of Fees
Non-Audit Services
Services associated with periodic reports and other documents filed with the SEC and assistance in responding to SEC comment letters	up to $10,000 in the aggregate

     The Pre-Approval Policy requires the registrant’s independent auditors to report to the Audit Committee at each of its regular meetings regarding all services initiated since the last such report was rendered, including those services authorized by the Pre-Approval Policy.

(f) Not applicable.

(g) The aggregate non-audit fees billed by the registrant’s independent auditors for services rendered to the registrant and to its investment adviser and other service providers under common control with the adviser were $0 and $216,464 for the registrant’s fiscal years ended August 31, 2010 and August 31, 2009, respectively.

(h) In connection with its selection of the independent auditors, the registrant’s Audit Committee has considered the independent auditors’ provision of non-audit services to the registrant’s investment adviser and other service providers under common control with the adviser that were not required to be pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X. The Audit Committee has determined that the independent auditors’ provision of these services is compatible with maintaining the auditors’ independence.

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 Company 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 fourth 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

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	November 3, 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.

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	November 3, 2010

/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	November 3, 2010