UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number:	811-07742
Exact name of registrant as specified in charter:	Voyageur Mutual Funds
Address of principal executive offices:	2005 Market Street
	Philadelphia, PA 19103
Name and address of agent for service:	David F. Connor, Esq.
	2005 Market Street
	Philadelphia, PA 19103
Registrant’s telephone number, including area code:	(800) 523-1918
Date of fiscal year end:	August 31
Date of reporting period:	February 28, 2011

Item 1. Reports to Stockholders

Semiannual report

Delaware Tax-Free Minnesota Fund

Delaware Tax-Free Minnesota Intermediate Fund

Delaware Minnesota High-Yield Municipal
Bond Fund

February 28, 2011

Fixed income mutual funds

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

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

Experience Delaware Investments

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

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

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free 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
Disclosure of Fund expenses	1
Sector allocations	4
Statements of net assets	7
Statements of operations	36
Statements of changes in net assets	38
Financial highlights	44
Notes to financial statements	62
Other Fund information	76
About the organization	78

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2011, and subject to change.

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

© 2011 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the six-month period from September 1, 2010 to February 28, 2011

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from September 1, 2010 to February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

1

Disclosure of Fund expenses

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

	Beginning			Ending				Expenses
	Account Value			Account Value			Annualized	Paid During Period
	9/1/10			2/28/11			Expense Ratio	9/1/10 to 2/28/11*
Actual Fund return
Class A		$	1,000.00		$	962.50	0.92%		$4.48
Class B			1,000.00			959.00	1.67%		8.11
Class C			1,000.00			958.40	1.67%		8.11
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.23	0.92%		$4.61
Class B			1,000.00			1,016.51	1.67%		8.35
Class C			1,000.00			1,016.51	1.67%		8.35

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

	Beginning			Ending				Expenses
	Account Value			Account Value			Annualized	Paid During Period
	9/1/10			2/28/11			Expense Ratio	9/1/10 to 2/28/11*
Actual Fund return
Class A		$	1,000.00		$	971.50	0.84%		$4.11
Class B			1,000.00			966.70	1.69%		8.24
Class C			1,000.00			966.60	1.69%		8.24
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.63	0.84%		$4.21
Class B			1,000.00			1,016.41	1.69%		8.45
Class C			1,000.00			1,016.41	1.69%		8.45

2

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

	Beginning			Ending				Expenses
	Account Value			Account Value			Annualized	Paid During Period
	9/1/10			2/28/11			Expense Ratio	9/1/10 to 2/28/11*
Actual Fund return
Class A		$	1,000.00		$	954.10	0.93%		$	4.51
Class B			1,000.00			950.60	1.68%			8.13
Class C			1,000.00			950.70	1.68%			8.13
Hypothetical 5% return (5% return before expenses)
Class A		$	1,000.00		$	1,020.18	0.93%		$	4.66
Class B			1,000.00			1,016.46	1.68%			8.40
Class C			1,000.00			1,016.46	1.68%			8.40

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

3

Sector allocations
Delaware Tax-Free Minnesota Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds		99.05	%
Corporate-Backed Revenue Bonds		4.43	%
Education Revenue Bonds		9.00	%
Electric Revenue Bonds		5.22	%
Healthcare Revenue Bonds		29.22	%
Housing Revenue Bonds		7.18	%
Lease Revenue Bonds		3.48	%
Local General Obligation Bonds		16.33	%
Pre-Refunded/Escrowed to Maturity Bonds		16.25	%
Special Tax Revenue Bonds		2.34	%
State General Obligation Bonds		2.70	%
Transportation Revenue Bonds		2.69	%
Water & Sewer Revenue Bond		0.21	%
Short-Term Investments		0.37	%
Total Value of Securities		99.42	%
Receivables and Other Assets Net of Liabilities		0.58	%
Total Net Assets		100.00	%

4

Delaware Tax-Free Minnesota Intermediate Fund As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds		98.01	%
Corporate-Backed Revenue Bonds		1.63	%
Education Revenue Bonds		11.27	%
Electric Revenue Bonds		7.21	%
Healthcare Revenue Bonds		24.33	%
Housing Revenue Bonds		2.10	%
Lease Revenue Bonds		1.88	%
Local General Obligation Bonds		24.09	%
Pre-Refunded/Escrowed to Maturity Bonds		5.58	%
Special Tax Revenue Bonds		6.73	%
State General Obligation Bonds		7.82	%
Transportation Revenue Bonds		3.92	%
Water & Sewer Revenue Bond		1.45	%
Short-Term Investments		0.83	%
Total Value of Securities		98.84	%
Receivables and Other Assets Net of Liabilities		1.16	%
Total Net Assets		100.00	%

5

Sector allocations
Delaware Minnesota High-Yield Municipal Bond Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds		98.92	%
Corporate-Backed Revenue Bonds		4.40	%
Education Revenue Bonds		8.76	%
Electric Revenue Bonds		7.29	%
Healthcare Revenue Bonds		34.90	%
Housing Revenue Bonds		11.42	%
Lease Revenue Bonds		2.78	%
Local General Obligation Bonds		11.80	%
Pre-Refunded/Escrowed to Maturity Bonds		4.79	%
Special Tax Revenue Bonds		7.82	%
State General Obligation Bond		0.81	%
Transportation Revenue Bond		1.45	%
Water & Sewer Revenue Bonds		2.70	%
Short-Term Investment		0.05	%
Total Value of Securities		98.97	%
Receivables and Other Assets Net of Liabilities		1.03	%
Total Net Assets		100.00	%

6

Statements of net assets
Delaware Tax-Free Minnesota Fund	February 28, 2011 (Unaudited)

		Principal amount			Value
Municipal Bonds – 99.05%
Corporate-Backed Revenue Bonds – 4.43%
	Cloquet Pollution Control Revenue Refunding
	(Potlatch Project) 5.90% 10/1/26		$	6,500,000	$	5,839,405
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21			8,000,000		7,914,160
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27			7,265,000		6,860,557
	Seaway Port Authority of Duluth Industrial
	Development Dock & Wharf Revenues Refunding
	(Cargill Project) Series E 6.125% 11/1/14			4,500,000		4,520,520
						25,134,642
Education Revenue Bonds – 9.00%
	Duluth Housing & Redevelopment Authority Lease Revenue
	(Public School Academy)
	Series A 5.875% 11/1/40			3,500,000		2,865,345
	Minnesota Colleges & Universities Revenue Fund Series A
	5.00% 10/1/22 (AGM)			5,135,000		5,338,911
	5.00% 10/1/28			8,900,000		9,296,583
	5.00% 10/1/29 (NATL-RE)			5,665,000		5,808,268
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/20			1,250,000		1,267,113
	Series 6-J1 5.00% 5/1/36			2,225,000		2,006,995
	(Bethel University) Series 6-R 5.50% 5/1/37			2,500,000		2,195,725
	(Carleton College)
	Series 6-T 5.00% 1/1/28			1,000,000		1,040,750
	Series 7-D
	5.00% 3/1/30			1,500,000		1,550,475
	5.00% 3/1/40			3,000,000		3,004,890
	(St. Olaf College) Series 7-F 4.50% 10/1/30			2,000,000		1,907,160
	(University of St. Thomas)
	Series 6-X 5.25% 4/1/39			5,000,000		4,945,400
	Series 7-A 5.00% 10/1/39			2,000,000		1,959,660
	(State Scholastic College) Series 7-J 6.30% 12/1/40			1,800,000		1,827,594
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23			2,000,000		2,033,400
	University of Minnesota Special Purpose Revenue
	(State Supported Biomed Science) 5.00% 8/1/35			3,960,000		4,017,816
						51,066,085

7

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds – 5.22%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.00% 10/1/30		$	3,000,000	$	3,007,170
	Minnesota Municipal Power Agency Electric Revenue
	5.00% 10/1/35			3,000,000		2,904,990
	Series A
	5.00% 10/1/34			6,250,000		6,072,625
	5.125% 10/1/29			3,000,000		3,028,740
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.50% 7/1/38			4,800,000		4,377,312
	Series XX 5.25% 7/1/40			5,000,000		4,361,150
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A
	5.25% 1/1/15 (AMBAC)			2,900,000		3,227,439
	^Capital Appreciation 4.44% 1/1/25 (NATL-RE)			5,000,000		2,603,700
						29,583,126
Healthcare Revenue Bonds – 29.22%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.60% 2/1/32			2,100,000		1,762,047
	Alexandria Senior Housing Revenue
	(Knute Nelson Senior Living)
	6.00% 7/1/35			1,500,000		1,433,445
	6.20% 7/1/45			2,000,000		1,947,180
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40			2,700,000		2,379,051
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/24 (RADIAN)			740,000		712,553
	5.00% 9/1/31 (RADIAN)			500,000		447,965
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30			2,500,000		2,478,525
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care)
	5.15% 8/1/35			1,250,000		1,116,113
	5.40% 8/1/40			1,000,000		901,010
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital) 5.25% 5/1/37			2,950,000		2,652,286
	Minneapolis Health Care Facilities Revenue
	(Jones-Harrison Residence Project) 5.60% 10/1/30			1,050,000		877,265

8

		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		$	3,000,000	$	3,238,860
	Series B 6.50% 11/15/38 (ASSURED GTY)			1,140,000		1,205,995
	Series D
	5.00% 11/15/30 (AMBAC)			2,500,000		2,341,925
	5.00% 11/15/34 (AMBAC)			4,750,000		4,325,873
	Minneapolis National Marrow Donor Program
	Project Revenue 4.875% 8/1/25			4,000,000		3,816,320
	Minneapolis - St. Paul Housing & Redevelopment
	Authority Health Care Revenue
	(Children’s Hospital) Series A
	5.00% 8/15/30			2,750,000		2,699,620
	5.25% 8/15/35			2,085,000		2,053,892
	(Health Partners Obligation Group Project)
	5.875% 12/1/29			1,000,000		1,002,290
	Minnesota Agricultural & Economic
	Development Board Revenue
	(Benedictine Health Systems) 5.75% 2/1/29			1,895,000		1,609,840
	(Essentia Remarketing) Series C-1
	5.00% 2/15/30 (ASSURED GTY)			5,725,000		5,577,753
	5.25% 2/15/23 (ASSURED GTY)			5,000,000		5,330,600
	5.50% 2/15/25 (ASSURED GTY)			5,120,000		5,429,811
	(Fairview Health Care System)
	Un-Refunded Balance Series A
	5.75% 11/15/26 (NATL-RE)			180,000		180,014
	6.375% 11/15/29			15,000		15,057
	Northfield Hospital Revenue 5.375% 11/1/26			3,785,000		3,569,217
	Rochester Health Care & Housing Revenue Refunding
	(Samaritan Bethany) Series A 7.375% 12/1/41			5,220,000		5,209,664
	Rochester Health Care Facilities Revenue
	(Mayo Clinic) Remarketing Series D 5.00% 11/15/38			6,405,000		6,371,182
	(Olmsted Medical Center) 5.875% 7/1/30			1,850,000		1,768,582
	Sartell Health Care Facilities Revenue
	(Country Manor Campus) Series A 6.375% 9/1/42			2,435,000		2,292,309
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center)
	5.10% 9/1/25			2,000,000		1,918,220
	5.25% 9/1/34			7,000,000		6,351,100

9

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Sherburne County Health Care Facilities Revenue
	(Guardian Angels Health Services) 5.55%10/1/36		$	1,500,000	$	1,200,900
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.375% 5/1/31 (ASSURED GTY)			1,000,000		1,013,780
	5.50% 5/1/39 (ASSURED GTY)			6,000,000		6,012,000
	Series A
	5.00% 5/1/25			1,035,000		1,041,241
	5.125% 5/1/30			10,350,000		10,317,914
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services)
	Refunding 5.75% 7/1/39			16,975,000		16,045,957
	Series C
	5.50% 7/1/23			3,000,000		3,065,130
	5.625% 7/1/26			1,925,000		1,911,179
	5.75% 7/1/30			5,000,000		4,936,400
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project)
	5.25% 5/15/36			7,900,000		6,831,367
	(Senior Carondelet Village Project)
	Series A 6.00% 8/1/42			3,075,000		2,824,019
	St. Paul Housing & Redevelopment Authority
	Health Care Revenue (Allina Health System)
	Series A 5.00% 11/15/18 (NATL-RE)			5,720,000		6,140,592
	Series A-1 5.25% 11/15/29			5,605,000		5,627,868
	St. Paul Housing & Redevelopment Authority
	Hospital Revenue (Health East Project)
	6.00% 11/15/30			4,000,000		3,486,760
	6.00% 11/15/35			10,340,000		8,789,516
	Series A 5.70% 11/1/15			990,000		984,308
	St. Paul Housing & Redevelopment Authority
	Multifamily Housing Revenue Refunding
	(Marion Center Project) Series A
	5.30% 11/1/30			500,000		393,930
	5.375% 5/1/43			500,000		366,610

10

		Principal amount			Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Stillwater Health Care Revenue (Health System
	Obligation Group) 5.00% 6/1/35		$	1,000,000	$	878,750
	Washington County Housing & Redevelopment
	Authority Hospital Facilities Revenue
	(Health East Project) 5.50% 11/15/27			1,000,000		861,390
						165,745,175
Housing Revenue Bonds – 7.18%
	Minneapolis Multifamily Housing Revenue
	(Bottineau Commons Project)
	5.45% 4/20/43 (GNMA) (AMT)			1,500,000		1,464,330
	(Grant Street Apartments Project) Refunding Series A
	7.25% 11/1/29			750,000		751,283
	(Seward Towers Project) 5.00% 5/20/36 (GNMA)			8,000,000		7,864,240
	(Sumner Field) Series A 5.50% 11/20/26 (GNMA) (AMT)			860,000		864,842
	(Trinity Apartments) Refunding Series A
	6.75% 5/1/21 (HUD)			1,450,000		1,453,364
	Minnesota Housing Finance Agency Rental Housing
	Revenue Series C-2 5.95% 2/1/15 (AMBAC)			1,410,000		1,413,581
	Minnesota Housing Finance Agency (Residential Housing)
	Series A 5.30% 7/1/19			400,000		401,508
	Series B-1 5.35% 1/1/33 (AMT)			2,305,000		2,240,345
	•Series D 4.80% 7/1/38 (AMT)			2,500,000		2,223,475
	Series I 4.85% 7/1/38 (AMT)			2,000,000		1,791,680
	Series I 5.15% 7/1/38 (AMT)			5,405,000		5,037,622
	Series L 5.10% 7/1/38 (AMT)			9,910,000		9,167,741
	Series M 4.875% 7/1/37 (AMT)			4,500,000		4,058,775
@	Washington County Housing & Redevelopment
	Authority Governmental Revenue Refunding
	(Briar Pond Project) Series C 7.25% 8/20/34			910,000		741,914
	White Bear Lake Multifamily Revenue Refunding
	(Lake Square Apartments) Series A 5.875% 2/1/15 (FHA)			565,000		566,384
	Willmar Housing & Redevelopment Authority
	Multifamily Housing Revenue
	(Highland Apartments) 5.85% 6/1/19 (HUD)			700,000		700,077
						40,741,161

11

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Lease Revenue Bonds – 3.48%
	Minneapolis Special School District #001 Series A
	5.00% 2/1/18 (AGM)		$	1,545,000	$	1,592,524
	5.00% 2/1/19 (AGM)			1,535,000		1,582,217
	5.00% 2/1/20 (AGM)			1,690,000		1,741,984
	St. Paul Port Authority Lease Revenue
	(Cedar Street Office Building Project)
	5.00% 12/1/22			2,500,000		2,561,475
	5.25% 12/1/27			3,840,000		3,888,845
	Series 3-12 5.125% 12/1/27			3,000,000		3,049,080
	(Robert Street Office Building Project)
	Series 3-11 4.75% 12/1/23			2,000,000		2,037,280
	Series 3-11 5.00% 12/1/27			2,500,000		2,532,875
	Series 9 5.25% 12/1/27			725,000		734,222
						19,720,502
Local General Obligation Bonds – 16.33%
	Anoka County Capital Improvement Series A
	5.00% 2/1/19			1,270,000		1,491,564
	5.00% 2/1/22			500,000		560,320
	Brainerd Independent School District #181 Refunding
	(School Building) Series A
	4.00% 2/1/22			3,255,000		3,355,352
	4.00% 2/1/23			5,990,000		6,100,336
	Centennial Independent School District #012
	Series A 5.00% 2/1/18 (AGM)			1,270,000		1,315,098
	Farmington Independent School District #192 Series B
	5.00% 2/1/27 (AGM)			10,705,000		10,731,012
	^Capital Appreciation 5.34% 2/1/21 (AGM)			1,500,000		914,745
	^Capital Appreciation 5.424% 2/1/20 (AGM)			1,650,000		1,061,280
	Hennepin County Series B 4.00% 12/1/20			5,255,000		5,765,050
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)			6,850,000		7,001,454
^	Mahtomedi Independent School District #832
	Capital Appreciation Series B 5.90% 2/1/14 (NATL-RE)			1,540,000		1,472,471
	Metropolitan Council Minneapolis-St. Paul
	Metropolitan Area Waste Water Treatment
	Series B 5.00% 12/1/21			1,200,000		1,295,556
	Series C
	5.00% 3/1/16			1,440,000		1,664,899
	5.00% 3/1/28			5,000,000		5,223,750

12

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Minneapolis Library 5.00% 12/1/25		$	1,500,000	$	1,530,915
	Morris Independent School District #769 Building
	5.00% 2/1/24 (NATL-RE)			4,875,000		5,196,945
	Mounds View Independent School District #621 Series A
	5.00% 2/1/20 (NATL-RE)			2,970,000		3,094,532
	New Brighton Tax Increment Series A
	5.00% 2/1/27 (NATL-RE)			1,000,000		1,040,220
	Osseo Independent School District #279 Series A
	5.00% 2/1/21 (AGM)			3,570,000		3,694,093
	Prior Lake Independent School District #719 Series B
	5.00% 2/1/19 (AGM)			3,145,000		3,415,910
	Ramsey County State Aid Series C 5.00% 2/1/28			1,060,000		1,073,865
	Robbinsdale Independent School District #281
	5.00% 2/1/21 (AGM)			1,310,000		1,351,042
^	Rosemount Independent School District #196
	Capital Appreciation Series B 6.008% 4/1/13 (AGM)			1,915,000		1,870,591
^	Sartell - St. Stephen Independent School District #748
	Capital Appreciation Refunding Series B
	5.976% 2/1/13 (NATL-RE)			540,000		522,326
	6.10% 2/1/15 (NATL-RE)			1,075,000		981,841
	6.15% 2/1/16 (NATL-RE)			1,750,000		1,534,278
	South Washington County Independent School
	District #833 Series A
	4.75% 2/1/25			2,500,000		2,585,300
	4.75% 2/1/26			3,600,000		3,692,772
	4.75% 2/1/27			2,300,000		2,349,588
	St. Michael - Albertville Independent School District #885
	5.00% 2/1/20 (AGM)			1,970,000		2,039,955
	5.00% 2/1/27 (AGM)			3,435,000		3,556,977
	Todd Morrison Cass & Wadena Counties Staples United
	Hospital District (Health Care Facilities-Lakewood)
	5.00% 12/1/21			2,000,000		2,071,140
	5.125% 12/1/24			1,000,000		1,026,190
	Willmar City (Rice Memorial Hospital Project)
	5.00% 2/1/22 (AGM)			1,000,000		1,040,700
	5.00% 2/1/25 (AGM)			1,000,000		1,010,810
						92,632,877

13

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds – 16.25%
	Dakota County Community Development Agency
	(Senior Housing Facilities) 5.00% 1/1/21-12		$	1,275,000	$	1,323,833
	Dakota-Washington Counties Housing & Redevelopment
	Authority Single Family Residential Mortgage Revenue
	8.15% 9/1/16 (GNMA) (NATL-RE) (IBC)			405,000		511,985
	(Anoka County) 8.45% 9/1/19 (GNMA) (AMT)			9,000,000		11,921,670
	(Bloomington Mortgage) Refunding Series B
	8.375% 9/1/21 (GNMA) (FHA) (VA) (AMT)			14,115,000		18,825,034
	Duluth Economic Development Authority Health
	Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/33-14			3,500,000		3,921,645
	5.50% 2/15/23-14			1,000,000		1,127,740
	Hopkins Housing & Redevelopment Authority
	(Public Works & Fire Station) Series A
	5.00% 2/1/23-13 (NATL-RE)			1,210,000		1,310,478
	Minneapolis Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12			10,000,000		10,885,700
	Minnesota State 5.00% 8/1/21-12			2,400,000		2,552,616
	Southern Minnesota Municipal Power Agency Power
	Supply Revenue Series A
	5.75% 1/1/18-13			3,790,000		4,061,250
	5.75% 1/1/18-13 (AMBAC) (TCRS)			670,000		717,952
	5.75% 1/1/18-13 (NATL-RE) (IBC)			1,000,000		1,071,570
	Refunding Series B 5.50% 1/1/15 (AMBAC)			990,000		1,021,789
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B
	5.25% 7/1/30-14			9,420,000		10,627,832
	5.50% 7/1/25-14			2,000,000		2,272,720
	University of Minnesota Series A
	5.50% 7/1/21			12,500,000		14,535,000
	5.75% 7/1/18			3,840,000		4,560,538
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 9.75% 1/1/16 (NATL-RE)			715,000		938,981
						92,188,333

14

		Principal amount			Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 2.34%
	Hennepin County Sales Tax Revenue
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/19		$	2,100,000	$	2,365,377
	5.00% 12/15/20			1,000,000		1,115,730
	5.00% 12/15/24			1,150,000		1,230,213
	Minneapolis Development Revenue
	(Limited Tax Supported Common Bond Fund)
	Series 2A 6.00% 12/1/40			3,000,000		2,968,860
	Minneapolis Tax Increment Revenue Refunding
	(St. Anthony Falls Project) 5.75% 2/1/27			1,000,000		872,390
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate Series B 5.75% 8/1/37			4,760,000		4,727,774
						13,280,344
State General Obligation Bonds – 2.70%
	Minnesota State
	5.00% 10/1/15			5,000,000		5,746,050
	Series A 5.00% 12/1/21			5,000,000		5,741,300
	Minnesota State Refunding Various Purposes
	Series D 4.00% 8/1/17			1,000,000		1,112,040
	Puerto Rico Commonwealth Public Improvement
	Refunding Series C 6.00% 7/1/39			2,800,000		2,732,688
						15,332,078
Transportation Revenue Bonds – 2.69%
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue Series A
	5.00% 1/1/15 (AMT)			3,095,000		3,325,485
	5.00% 1/1/22 (NATL-RE)			2,000,000		2,020,180
	5.00% 1/1/28			1,250,000		1,267,763
	5.25% 1/1/16 (NATL-RE)			1,460,000		1,541,249
	St. Paul Housing & Redevelopment Authority Parking
	Revenue Refunding (Parking Facilities Project)
	Series A
	5.00% 8/1/30			1,870,000		1,840,248
	5.00% 8/1/35			1,145,000		1,062,720
	Series B 5.00% 8/1/35			1,500,000		1,392,210
	St. Paul Port Authority Revenue Refunding
	(Amherst H. Wilder Foundation) Series 3 5.00% 12/1/36			3,200,000		2,809,248
						15,259,103

15

Statements of net assets
Delaware Tax-Free Minnesota Fund

		Principal amount			Value
Municipal Bonds (continued)
Water & Sewer Revenue Bond – 0.21%
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series B
	5.00% 3/1/19		$	1,000,000	$	1,176,370
						1,176,370
Total Municipal Bonds (cost $559,652,298)						561,859,796
			Number of shares
Short-Term Investments – 0.37%
Money Market Instrument – 0.03%
	Federated Minnesota Municipal Cash Trust			186,397		186,397
						186,397
			Principal amount
¤Variable Rate Demand Notes – 0.34%
	Minneapolis & St. Paul Housing &
	Redevelopment Authority Health Care Revenue
	(Allina Health System) Series B-2 0.19% 11/15/35
	(LOC – JPMorgan Chase Bank)		$	1,500,000		1,500,000
	Robbinsdale Revenue Refunding (North Memorial)
	Series A-3 0.23% 5/1/33 (LOC – Wells Fargo Bank N.A)			400,000		400,000
						1,900,000
Total Short-Term Investments (cost $2,086,397)						2,086,397
Total Value of Securities – 99.42%
	(cost $561,738,695)					563,946,193
Receivables and Other Assets
	Net of Liabilities – 0.58%					3,303,629
Net Assets Applicable to 47,424,560
	Shares Outstanding – 100.00%				$	567,249,822
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class A ($528,663,950 / 44,207,171 Shares)					$11.96
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class B ($5,085,839 / 424,973 Shares)					$11.97
Net Asset Value – Delaware Tax-Free Minnesota Fund
	Class C ($33,500,033 / 2,792,416 Shares)					$12.00

16

Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	561,732,978
Distributions in excess of net investment income		(145,618	)
Accumulated net realized gain on investments		3,454,964
Net unrealized appreciation of investments		2,207,498
Total net assets	$	567,249,822

^	Zero coupon security. The rate shown is the yield at the time of purchase.
•	Variable rate security. The rate shown is the rate as of February 28, 2011. 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 February 28, 2011, the aggregate amount of illiquid securities was $741,914, which represented 0.13% of the Fund’s net assets. See Note 9 in “Notes to financial statements.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

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

17

Statements of net assets
Delaware Tax-Free Minnesota Fund

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Minnesota Fund
Net asset value Class A (A)	$	11.96
Sales charge (4.50% of offering price) (B)		0.56
Offering price	$	12.52

(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.

18

Delaware Tax-Free Minnesota Intermediate Fund February 28, 2011 (Unaudited)

		Principal amount			Value
Municipal Bonds – 98.01%
Corporate-Backed Revenue Bonds – 1.63%
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		$	750,000	$	741,953
	Minneapolis Community Development Agency (Limited Tax
	Common Bond Fund) Series 4 6.20% 6/1/17 (AMT)			870,000		874,637
						1,616,590
Education Revenue Bonds – 11.27%
	Minnesota Colleges & Universities Revenue Fund
	Series A 5.00% 10/1/28			1,000,000		1,044,560
	Minnesota Higher Education Facilities Authority Revenue
	(Carleton College) Series 6-T 4.75% 1/1/23			1,000,000		1,060,120
	(Hamline University) Series 7-E 5.00% 10/1/29			250,000		243,205
	(Macalester College) Series 6-P 4.25% 3/1/27			750,000		715,088
	(St. Johns University) Series 6-U
	4.40% 10/1/21			325,000		338,182
	4.50% 10/1/23			265,000		270,769
	(State Scholastic College) Series H 5.125% 12/1/30			1,000,000		976,250
	(University of St. Thomas)
	Series 5-Y 5.25% 10/1/19			1,590,000		1,685,574
	Series 6-X 5.00% 4/1/24			1,000,000		1,036,580
	St. Cloud Housing & Redevelopment Authority Revenue
	(State University Foundation Project) 5.00% 5/1/23			1,000,000		1,016,700
	University of Minnesota Series A 5.00% 12/1/23			1,000,000		1,114,200
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt) 5.00% 8/1/18			1,500,000		1,663,005
						11,164,233
Electric Revenue Bonds – 7.21%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25			1,000,000		1,022,850
	Minnesota Municipal Power Agency Electric Revenue
	5.25% 10/1/21			1,000,000		1,062,700
	Northern Municipal Power Agency Electric
	System Revenue Series A
	5.00% 1/1/13 (ASSURED GTY)			1,200,000		1,272,828
	5.00% 1/1/14 (ASSURED GTY)			510,000		551,754
	5.00% 1/1/15 (ASSURED GTY)			1,000,000		1,092,530
	5.00% 1/1/17 (ASSURED GTY)			1,000,000		1,106,400

19

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Southern Minnesota Municipal Power Agency
	Supply System Revenue Series A 5.25% 1/1/30		$	1,000,000	$	1,031,030
						7,140,092
Healthcare Revenue Bonds – 24.33%
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services) 5.00% 9/1/31 (RADIAN)			650,000		582,355
	Fergus Falls Health Care Facilities Revenue
	(Lake Region Health Care) 4.75% 8/1/25			500,000		469,610
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project) 5.00% 4/1/31			1,000,000		880,910
	Minneapolis Health Care System Revenue (Fairview Health
	Services) Series A 6.625% 11/15/28			1,500,000		1,619,430
	Minneapolis National Marrow Donor Program
	Project Revenue 5.00% 8/1/17			1,205,000		1,283,180
	Minneapolis-St. Paul Housing & Redevelopment
	Authority Health Care Revenue
	(Children’s Hospital) Series A 5.25% 8/15/25			1,000,000		1,030,660
	(Health Partners Obligation Group Project) 6.00% 12/1/17			850,000		895,305
	Minnesota Agricultural & Economic Development Board
	Health Care Revenue (Essentia Remarketing)
	Series C-1 5.50% 2/15/25 (ASSURED GTY)			2,500,000		2,651,274
	Moorhead Economic Development Authority
	Multifamily Housing Revenue Refunding
	(Eventide Lutheran Home Project) 4.70% 6/1/18			475,000		445,702
	Rochester Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A 6.875% 12/1/29			950,000		936,586
	Rochester Health Care Facilities Revenue
	(Olmsted Medical Center) 5.125% 7/1/20			1,000,000		1,014,020
	Sartell Health Care Facilities (Country Manor Campus)
	Series A 6.125% 9/1/30			845,000		803,975
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	Series A 5.125% 5/1/30			2,445,000		2,437,421
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.50% 7/1/29			1,000,000		961,950
	Series C 5.625% 7/1/26			2,500,000		2,482,050

20

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Paul Housing & Redevelopment Authority
	Health Care Revenue (Allina Health System)
	Series A-2 5.25% 11/15/28		$2,000,000	$	2,010,940
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project) Series B 5.85% 11/1/17		1,160,000		1,144,804
	St. Paul Housing & Redevelopment Authority Housing &
	Health Care Facilities Revenue
	(Gillette Children’s Specialty Project)
	5.00% 2/1/20		500,000		509,150
	5.00% 2/1/27		1,000,000		952,460
	(Senior Carondelet Village Project) Series A 6.25% 8/1/30		1,000,000		997,710
					24,109,492
Housing Revenue Bonds – 2.10%
	Minneapolis Multifamily Housing Revenue Refunding
	(Trinity Apartments) Series A 6.75% 5/1/21 (HUD)		1,515,000		1,518,515
	Minnesota Housing Finance Agency Residential Housing
	Series I 5.10% 7/1/20 (AMT)		560,000		563,713
					2,082,228
Lease Revenue Bonds – 1.88%
	St. Paul Housing & Redevelopment Authority Refunding
	(Minnesota Public Radio Project) 5.00%12/1/25		1,000,000		1,019,270
	Virginia Housing & Redevelopment Authority Health
	Care Facility Lease Revenue 5.25% 10/1/25		880,000		844,017
					1,863,287
Local General Obligation Bonds – 24.09%
	Anoka County Capital Improvements
	Series A 4.00% 2/1/17		1,175,000		1,301,172
	Series C 5.00% 2/1/27		500,000		530,435
	Anoka-Hennepin Independent School District #11
	Refunding 5.00% 2/1/17		1,000,000		1,152,030
	Brainerd Independent School District #181 Refunding
	(School Building) Series A 4.00% 2/1/22		2,500,000		2,577,074
	Centennial Independent School District #012 Series A
	5.00% 2/1/18 (AGM)		1,000,000		1,035,510
	5.00% 2/1/20 (AGM)		750,000		776,633

21

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Duluth Independent School District #709
	Revenue Certificates of Participation
	Series A 4.25% 2/1/20 (AGM)	$	1,710,000	$	1,842,953
	Hopkins Independent School District #270 5.125% 2/1/17 (FGIC)		2,000,000		2,073,319
	Mankato Independent School District #77 (Formerly
	Blue Earth County Independent School District #10)
	4.125% 2/1/22		1,000,000		1,035,200
	Metropolitan Council Minneapolis-St. Paul Metropolitan
	Area Waste Water Treatment Series C
	5.00% 3/1/16		560,000		647,461
	5.00% 3/1/28		1,000,000		1,044,750
	Minneapolis Various Purposes 4.00% 12/1/23		1,500,000		1,529,250
	Osseo Independent School District #279
	Series A 5.00% 2/1/21 (AGM)		1,500,000		1,552,140
	Robbinsdale Independent School District #281
	Series A 5.00% 2/1/20		1,850,000		2,184,627
	South Washington County Independent School District #833
	Series A 4.00% 2/1/22		750,000		766,838
	Series B 5.00% 2/1/16 (AGM)		1,560,000		1,626,160
	St. Paul Independent School District #625 (School Building)
	Series A 4.00% 2/1/15		1,020,000		1,110,892
	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		1,076,340
					23,862,784
§Pre-Refunded/Escrowed to Maturity Bonds – 5.58%
	Edina Housing & Redevelopment Authority Public
	Project Revenue (Appropriate Lease Obligation)
	5.125% 2/1/19-12		1,000,000		1,041,650
	Minnesota Public Facilities Authority Water Pollution
	Control Revenue Refunding Series C 5.00% 3/1/18-15		1,000,000		1,139,930
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B 5.50% 7/1/25-14		1,500,000		1,704,540
	University of Minnesota Series A
	5.75% 7/1/16		1,000,000		1,170,260
	5.75% 7/1/18		400,000		475,056
					5,531,436

22

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds – 6.73%
	Minneapolis Art Center Facilities Revenue
	(Walker Art Center Project) 5.125% 7/1/21	$	2,250,000	$	2,278,080
@	Minneapolis Tax Increment Revenue
	(Ivy Tower Project) 5.50% 2/1/22		415,000		297,783
	Minnesota 911 Revenue (Public Safety Radio
	Communication System Project)
	4.00% 6/1/14 (ASSURED GTY)		1,370,000		1,491,971
	4.25% 6/1/18 (ASSURED GTY)		1,170,000		1,309,230
	4.50% 6/1/25 (ASSURED GTY)		1,000,000		1,034,600
	Puerto Rico Sales Tax Financing Sales Tax
	Revenue (First Subordinate)
	Series A 6.125% 8/1/29		250,000		256,938
					6,668,602
State General Obligation Bonds – 7.82%
	Minnesota State
	Refunding 5.00% 8/1/15		2,000,000		2,291,020
	Series A 5.00% 12/1/21		1,000,000		1,148,260
	Minnesota State Refunding (Various Purposes) Series D
	4.00% 8/1/17		1,395,000		1,551,296
	5.00% 8/1/16		1,475,000		1,714,422
	Puerto Rico Commonwealth Public Improvement
	Series A 5.50% 7/1/19 (NATL-RE) (IBC)		1,000,000		1,038,870
					7,743,868
Transportation Revenue Bonds – 3.92%
	Minneapolis-St. Paul Metropolitan Airports Commission
	Refunding Series A 5.00% 1/1/13 (AMT)		500,000		529,265
	Refunding Series B 5.00% 1/1/22 (AMT)		1,000,000		1,025,690
	Refunding Series D 5.00% 1/1/22 (AMT)		1,000,000		999,520
	Series A 5.00% 1/1/22 (AMBAC)		1,260,000		1,324,991
					3,879,466
Water & Sewer Revenue Bond – 1.45%
	St. Paul Sewer Revenue Series D 5.00% 12/1/20		1,275,000		1,439,003
					1,439,003
Total Municipal Bonds (cost $95,103,599)					97,101,081

23

Statements of net assets
Delaware Tax-Free Minnesota Intermediate Fund

	Number of shares			Value
Short-Term Investments – 0.83%
Money Market Instrument – 0.02%
	Federated Minnesota Municipal Cash Trust		18,673	$	18,673
					18,673
	Principal amount
¤Variable Rate Demand Note – 0.81%
	Minneapolis & St. Paul Housing & Redevelopment Authority
	Health Care Revenue (Allina Health System)
	Series B-2 0.19% 11/15/35 (LOC - JPMorgan Chase Bank)	$	800,000		800,000
					800,000
Total Short-Term Investments (cost $818,673)					818,673
Total Value of Securities – 98.84%
	(cost $95,922,272)				97,919,754
Receivables and Other Assets
	Net of Liabilities – 1.16%				1,150,949
Net Assets Applicable to 9,186,101
	Shares Outstanding – 100.00%			$	99,070,703
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class A ($85,143,583 / 7,897,069 Shares)					$ 10.78
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class B ($145,033 / 13,412 Shares)					$ 10.81
Net Asset Value – Delaware Tax-Free Minnesota Intermediate Fund
	Class C ($13,782,087 / 1,275,620 Shares)					$ 10.80
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)				$	97,817,996
Undistributed net investment income					2,522
Accumulated net realized loss on investments					(747,297		)
Net unrealized appreciation of investments					1,997,482
Total net assets				$	99,070,703

24

@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $297,783, 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.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

Summary of abbreviations:

AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY - Insured by the Assured Guaranty Corporation
FGIC — Insured by the Financial Guaranty Insurance Company
HUD — Housing and Urban Development Section 8
IBC — Insured Bond Certificate
LOC — Letter of Credit
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –        Delaware Tax-Free Minnesota Intermediate Fund
Net asset value Class A (A)	$	10.78
Sales charge (2.75% of offering price) (B)		0.30
Offering price	$	11.08

 

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

25

Statements of net assets
Delaware Minnesota High-Yield Municipal Bond Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 98.92%
Corporate-Backed Revenue Bonds – 4.40%
	Cloquet Pollution Control Revenue (Potlatch Project)
	5.90% 10/1/26	$	1,700,000	$	1,527,229
	Laurentian Energy Authority I Cogeneration Revenue
	Series A 5.00% 12/1/21		1,750,000		1,731,222
	Puerto Rico Port Authority Revenue Special Facilities
	(American Airlines) Series A 6.25% 6/1/26 (AMT)		1,390,000		1,146,778
	Sartell Environmental Improvement Revenue Refunding
	(International Paper) Series A 5.20% 6/1/27		1,750,000		1,652,578
					6,057,807
Education Revenue Bonds – 8.76%
	Baytown Township Lease Revenue
	(St. Croix Preparatory Academy) Series A 7.00% 8/1/38		500,000		455,485
	Duluth Housing & Redevelopment Authority
	Lease Revenue (Public School Academy) Series A
	5.875% 11/1/40		1,000,000		818,670
	Minnesota Higher Education Facilities Authority Revenue
	(Augsburg College)
	Series 6-C 5.00% 5/1/23		700,000		691,159
	Series 6-J1 5.00% 5/1/36		1,000,000		902,020
	(Bethel University) Series 6-R 5.50% 5/1/37		1,500,000		1,317,435
	(Macalester College) Series 6-P 4.25% 3/1/32		1,000,000		884,700
	(St. John’s University) Series 6-U 4.75% 10/1/33		825,000		767,151
	(St. Olaf) Series 6-O
	4.50% 10/1/32		1,000,000		894,720
	5.00% 10/1/22		1,000,000		1,051,770
	(State Scholastic College) Series H 5.125% 12/1/40		750,000		693,518
	(University of St. Thomas)
	Series 6-I 5.00% 4/1/23		1,500,000		1,560,930
	Series 7-A 5.00% 10/1/39		1,000,000		979,830
	University of Minnesota Series A 5.125% 4/1/34		1,000,000		1,038,240
					12,055,628
Electric Revenue Bonds – 7.29%
	Chaska Electric Revenue Refunding
	(Generating Facilities) Series A 5.25% 10/1/25		1,000,000		1,022,850
	Minnesota Municipal Power Agency Electric Revenue
	Series A 5.00% 10/1/34		2,750,000		2,671,955

26

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Northern Municipal Power Agency Electric System
	Revenue Refunding Series A
	5.00% 1/1/16 (ASSURED GTY)	$	1,200,000	$	1,323,864
	5.00% 1/1/18 (ASSURED GTY)		1,000,000		1,105,250
	Puerto Rico Electric Power Authority Revenue
	Series XX 5.25% 7/1/40		1,665,000		1,452,263
	Southern Minnesota Municipal Power Agency Supply
	System Revenue Series A 5.25% 1/1/16 (AMBAC)		1,000,000		1,128,530
	Western Minnesota Municipal Power Agency Supply
	Revenue Series A 5.00% 1/1/30 (NATL-RE)		1,335,000		1,336,308
					10,041,020
Healthcare Revenue Bonds – 34.90%
	Aitkin Health Care Facilities Revenue Refunding
	(Riverwood Health Care Center) 5.50% 2/1/24		700,000		637,665
	Anoka County Housing & Redevelopment Authority
	Revenue Series A 6.875% 5/1/40		1,000,000		958,110
	Apple Valley Economic Development Authority Health
	Care Revenue (Augustanna Home St. Paul Project)
	Series A 5.80% 1/1/30		1,000,000		900,430
	Bemidji Health Care Facilities First Mortgage Revenue
	(North Country Health Services)
	5.00% 9/1/31 (RADIAN)		1,350,000		1,209,506
	Refunding 5.00% 9/1/20		1,150,000		1,167,124
	Breckenridge Catholic Health Initiatives
	Series A 5.00% 5/1/30		2,000,000		1,982,820
	Detroit Lakes Housing & Health Facilities Revenue
	Refunding (Mankato Lutheran Homes)
	Series D 5.50% 8/1/21		500,000		473,390
	Glencoe Health Care Facilities Revenue
	(Glencoe Regional Health Services Project)
	5.00% 4/1/20		1,100,000		1,103,575
	5.00% 4/1/31		1,965,000		1,730,988
	Mahtomedi Senior Housing Revenue Refunding
	(St. Andrews Village Project) 5.75% 12/1/40		1,000,000		800,550
	Maple Grove Health Care Facilities Revenue
	(North Memorial Health Care) 5.00% 9/1/35		1,880,000		1,644,586

27

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

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Maple Grove Health Care System Revenue
	(Maple Grove Hospital)
	5.25% 5/1/28	$	2,200,000	$	2,087,667
	5.25% 5/1/37		1,000,000		899,080
	Minneapolis Health Care System Revenue
	(Fairview Health Services)
	Series A 6.625% 11/15/28		1,900,000		2,051,277
	Series B 6.50% 11/15/38 (ASSURED GTY)		250,000		264,473
	Series D 5.00% 11/15/34 (AMBAC)		3,000,000		2,732,129
	Minneapolis-St. Paul Housing & Redevelopment Authority
	(Health Partners Obligation Group Project)
	6.00% 12/1/17		525,000		552,983
	Minnesota Agricultural & Economic Development
	Board Revenue (Benedictine Health Systems)
	5.75% 2/1/29		1,000,000		849,520
	Moorhead Economic Development Authority
	Multifamily Housing Revenue Refunding
	(Eventide Project) Series A 5.15% 6/1/29		550,000		448,949
	Northfield Hospital Revenue 5.375% 11/1/31		1,000,000		915,370
	Oak Park Heights Housing Revenue
	(Oakgreen Commons Project) 7.00% 8/1/45		1,500,000		1,362,000
	Owatonna Senior Housing Revenue
	(Senior Living Project) Series A
	5.80% 10/1/29		400,000		360,452
	6.00% 4/1/41		1,250,000		1,070,413
	Rochester Health Care & Housing Revenue
	(Samaritan Bethany) Refunding Series A
	6.875% 12/1/29		1,000,000		985,880
	7.375% 12/1/41		375,000		374,258
	Sartell Health Care Facilities Revenue
	(Country Manor Campus) Series A 6.25% 9/1/36		925,000		872,284
	Shakopee Health Care Facilities Revenue
	(St. Francis Regional Medical Center) 5.25% 9/1/34		1,000,000		907,300
	St. Cloud Health Care Revenue
	(Centracare Health System Project)
	5.50% 5/1/39 (ASSURED GTY)		1,500,000		1,503,000
	Series A 5.125% 5/1/30		2,125,000		2,118,412

28

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Louis Park Health Care Facilities Revenue Refunding
	(Park Nicollet Health Services)
	5.75% 7/1/39	$	1,500,000	$	1,417,905
	Series C 5.50% 7/1/23		1,000,000		1,021,710
	St. Paul Housing & Redevelopment Authority
	Health Care Facilities Revenue
	(Health Partners Obligation Group Project)
	5.25% 5/15/36		1,000,000		864,730
	(Senior Carondelet Village Project) Series A
	6.00% 8/1/42		770,000		707,153
	St. Paul Housing & Redevelopment Authority Health
	Care Revenue (Allina Health System) Series A
	5.00% 11/15/18 (NATL-RE)		1,900,000		2,039,706
	St. Paul Housing & Redevelopment Authority Hospital
	Revenue (Health East Project)
	6.00% 11/15/25		1,000,000		931,480
	6.00% 11/15/30		1,000,000		871,690
	Series A 5.70% 11/1/15		600,000		596,550
	Series B 5.85% 11/1/17		250,000		246,725
	St. Paul Housing & Redevelopment Authority Multifamily
	Housing Revenue Refunding (Marion Center Project)
	Series A 5.375% 5/1/43		1,000,000		733,220
	Stillwater Health Care Revenue
	(Health System Obligation Group)
	5.00% 6/1/25		2,000,000		1,917,540
	5.00% 6/1/35		1,000,000		878,750
@	Twin Valley Congregate Housing Revenue
	(Living Options Project) 5.95% 11/1/28		1,825,000		1,553,422
	Winona Health Care Facilities Revenue Refunding
	(Winona Health Obligation Group) 5.15% 7/1/31		1,500,000		1,309,800
					48,054,572
Housing Revenue Bonds – 11.42%
	Chanhassen Multifamily Housing Revenue Refunding
	(Heritage Park Apartments Project)
	6.20% 7/1/30 (AMT) (FHA) (HUD)		300,000		300,153
	Chaska Multifamily Housing Revenue
	(West Suburban Housing Partners Project)
	5.875% 3/1/31 (AMT)		1,000,000		791,330

29

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

		Principal amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	Minneapolis Multifamily Housing Revenue
	(Grant Street Apartments Project) Refunding
	Series A 7.25% 11/1/29	$	2,085,000	$	2,088,565
	(Olson Townhomes Project) 6.00% 12/1/19 (AMT)		1,180,000		1,180,189
	(Trinity Apartments) Refunding
	Series A 6.75% 5/1/21 (HUD)		560,000		561,299
	Minneapolis-St. Paul Housing Finance Board Single
	Family Mortgage (City Living Project)
	Series A-2 5.00% 12/1/38 (GNMA) (FNMA) (AMT)		666,574		615,608
	Minnesota Housing Finance Agency
	(Rental Housing)
	Series A 4.875% 8/1/24 (AMT)		585,000		571,738
	Series A-1 5.00% 8/1/40 (AMT)		2,265,000		2,048,896
	(Residential Housing)
	Series G 5.00% 7/1/36 (AMT)		965,000		890,714
	Series I 4.85% 7/1/38 (AMT)		1,145,000		1,025,737
	Series L 5.10% 7/1/38 (AMT)		1,500,000		1,387,650
	Series M 4.875% 7/1/37 (AMT)		2,500,000		2,254,875
	(Single Family Mortgage) Series E 6.25% 1/1/23 (AMT)		5,000		5,006
	St. Paul Housing & Redevelopment Authority Multifamily
	Housing Revenue (Shelby Grotto Housing Project)
	5.50% 9/20/44 (AMT) (GNMA) (FHA)		750,000		736,448
	Stillwater Multifamily Housing Revenue
	(Orleans Homes Project) 5.50% 2/1/42 (AMT)		750,000		566,183
@	Washington County Housing & Redevelopment
	Authority Revenue Refunding (Briar Pond Project)
	Series B 7.125% 8/20/34		795,000		693,971
					15,718,362
Lease Revenue Bonds – 2.78%
	Hibbing Economic Development Authority Revenue
	(Public Project - Hibbing Lease Obligation)
	6.40% 2/1/12		140,000		140,147
	St. Paul Port Authority Lease Revenue (Robert Street
	Office Building Project) Series 3-11 5.00% 12/1/27		1,000,000		1,013,150
	University of Minnesota Special Purpose Revenue
	(State Supported Stadium Debt) 5.00% 8/1/29		2,660,000		2,681,253
					3,834,550

30

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds – 11.80%
	Chaska Independent School District #112
	Series A 4.50% 2/1/28 (NATL-RE)	$	1,000,000	$	1,004,880
	Farmington Independent School District #192
	Series B 5.00% 2/1/27 (AGM)		1,000,000		1,002,430
	Foley Independent School District #51 (School Building)
	Refunding Series A 5.00% 2/1/21		1,105,000		1,194,781
	Hopkins Independent School District #270 Facilities
	5.00% 2/1/26 (NATL-RE)		1,055,000		1,089,646
	Lakeville Independent School District #194
	Series A 4.75% 2/1/22 (AGM)		1,000,000		1,022,110
	Metropolitan Council Minneapolis-St. Paul
	Metropolitan Area Waste Water Treatment
	Series B 5.00% 12/1/21		500,000		539,815
	Series C 5.00% 3/1/28		1,000,000		1,044,750
	Minneapolis Various Purposes 4.00% 12/1/23		1,500,000		1,529,250
	Moorhead Improvement Series B 5.00% 2/1/33 (NATL-RE)		750,000		754,020
	Perham Disposal System 6.00% 5/1/22 (AMT)		1,500,000		1,501,335
	South Washington County Independent School
	District #833 Series A 4.75% 2/1/27		1,500,000		1,532,340
	Todd Morrison Cass & Wadena Counties United Hospital
	District (Health Care Facilities-Lakewood)
	5.00% 12/1/21		610,000		631,698
	5.125% 12/1/24		205,000		210,369
	5.25% 12/1/26		1,540,000		1,570,353
	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		1,614,511
					16,242,288
§Pre-Refunded Bonds – 4.79%
	Andover Economic Development Authority Public
	Facilities Lease Revenue (Andover Community Center)
	5.20% 2/1/34-14		1,000,000		1,087,220
	Duluth Economic Development Authority
	Health Care Facilities Revenue
	(Benedictine Health System - St. Mary’s Hospital)
	5.25% 2/15/28-14		1,000,000		1,120,470
	5.25% 2/15/33-14		750,000		840,353

31

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

		Principal amount			Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Minneapolis Community Development Agency Supported
	Development Revenue (Limited Tax Common Bond Fund)
	Series G-3 5.45% 12/1/31-11		$	1,000,000	$	1,038,360
	Minnesota State 5.00% 8/1/21-13 (AGM)			1,250,000		1,377,487
	St. Louis Park Health Care Facilities Revenue
	(Park Nicollet Health Services) Series B 5.25% 7/1/30-14			1,000,000		1,128,220
						6,592,110
Special Tax Revenue Bonds – 7.82%
	Hennepin County Sales Tax Revenue
	(First Lien - Ball Park Project)
	Series B 5.00% 12/15/24			1,000,000		1,074,090
	(Second Lien - Ballpark Project) Series B
	5.00% 12/15/20			1,500,000		1,673,595
	5.00% 12/15/24			1,000,000		1,069,750
	Minneapolis Development Revenue
	(Limited Tax Supported Common Bond Fund)
	Series 2A 5.00% 6/1/28 (AMT)			1,170,000		1,063,928
	Minneapolis Tax Increment Revenue
	@(Ivy Tower Project) 5.70% 2/1/29			785,000		496,363
	(St. Anthony Falls Project) 5.65% 2/1/27			500,000		431,470
	Minnesota 911 Revenue (Public Safety Radio Commission
	System Project) 5.00% 6/1/24 (ASSURED GTY)			1,000,000		1,083,560
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue Series B 5.00% 7/1/46			800,000		628,128
	Puerto Rico Sales Tax Financing Sales Tax Revenue
	(First Subordinate) Series B 5.75% 8/1/37			790,000		784,652
	St. Paul Port Authority (Brownsfields Redevelopment Tax)
	Series 2 5.00% 3/1/37			1,500,000		1,468,995
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien Matching Fund Loan Note)
	Series A 5.25% 10/1/24			1,000,000		996,300
						10,770,831
State General Obligation Bond – 0.81%
	Minnesota State Refunding (Various Purposes)
	Series D 4.00% 8/1/17			1,000,000		1,112,040
						1,112,040

32

		Principal amount			Value
Municipal Bonds (continued)
Transportation Revenue Bond – 1.45%
	Minneapolis - St. Paul Metropolitan Airports
	Commission Revenue Series A 5.00% 1/1/28 (NATL-RE)		$	2,000,000	$	1,990,860
						1,990,860
Water & Sewer Revenue Bonds – 2.70%
	Minnesota Public Facilities Authority Clean Water Revenue
	Series B 5.00% 3/1/18			2,000,000		2,324,920
	St. Paul Sewer Revenue Series D 5.00% 12/1/19			1,220,000		1,391,093
						3,716,013
Total Municipal Bonds (cost $140,596,256)						136,186,081
		Number of shares
Short-Term Investment – 0.05%
Money Market Instrument – 0.05%
	Federated Minnesota Municipal Cash Trust			70,855		70,855
Total Short-Term Investment (cost $70,855)						70,855
Total Value of Securities – 98.97%
	(cost $140,667,111)					136,256,936
Receivables and Other Assets
	Net of Liabilities – 1.03%					1,415,567
Net Assets Applicable to 13,753,078
	Shares Outstanding – 100.00%				$	137,672 ,503
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class A ($108,336,246 / 10,826,775 Shares)						$10.01
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class B ($3,414,478 / 340,764 Shares)						$10.02
Net Asset Value – Delaware Minnesota High-Yield Municipal Bond Fund
	Class C ($25,921,779 / 2,585,539 Shares)						$10.03

33

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

Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	145,767,616
Undistributed net investment income		55
Accumulated net realized loss on investments		(3,684,993	)
Net unrealized depreciation of investments		(4,410,175	)
Total net assets	$	137,672,503

§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 9 in “Notes to financial statements.”
@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $2,743,756, which represented 1.99% 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
FHA — Federal Housing Administration
FNMA — Federal National Mortgage Association Collateral
GNMA — Government National Mortgage Association Collateral
HUD — Housing and Urban Development Section 8
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)	$	10.01
Sales charge (4.50% of offering price) (B)		0.47
Offering price	$	10.48

(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.

34

Statements of operations

Six Months Ended February 28, 2011 (Unaudited)

					Delaware			Delaware
		Delaware			Tax-Free			Minnesota
		Tax-Free			Minnesota			High-Yield
		Minnesota			Intermediate			Municipal
		Fund			Fund			Bond Fund
Investment Income:
	Interest	$	14,603,270		$	2,262,074		$	3,683,656
Expenses:
	Management fees		1,613,657			261,591			398,389
	Distribution expenses – Class A		692,652			112,642			142,406
	Distribution expenses – Class B		29,181			762			18,588
	Distribution expenses – Class C		181,834			72,204			136,672
	Dividend disbursing and transfer agent
	fees and expenses		156,892			35,701			54,319
	Accounting and administration expenses		117,425			20,620			28,548
	Reports and statements to shareholders		27,062			6,438			4,804
	Audit and tax		21,679			8,152			9,316
	Registration fees		20,643			13,455			6,821
	Legal fees		19,012			7,915			6,313
	Trustees’ fees		16,547			2,907			4,014
	Insurance fees		13,108			2,350			3,108
	Pricing fees		8,923			4,769			6,304
	Custodian fees		6,282			1,228			1,290
	Consulting fees		3,119			649			738
	Trustees’ expenses		1,309			207			296
	Dues and services		814			1,799			—
			2,930,139			553,389			821,926
	Less fees waived		(15,968	)		(5,117	)		(29,387	)
	Less waived distribution expenses – Class A		—			(45,057	)		—
	Less expense paid indirectly		(356	)		(77	)		(114	)
	Total operating expenses		2,913,815			503,138			792,425
Net Investment Income			11,689,455			1,758,936			2,891,231

36

					Delaware			Delaware
		Delaware			Tax-Free			Minnesota
		Tax-Free			Minnesota			High-Yield
		Minnesota			Intermediate			Municipal
		Fund			Fund			Bond Fund
Net Realized and Unrealized Gain (Loss)
	on Investments:
	Net realized gain (loss) on investments	$	4,182,101		$	(15,209	)	$	481,779
	Net change in unrealized appreciation/
	depreciation of investments		(40,126,016	)		(5,097,114	)		(10,680,627	)
Net Realized and Unrealized Loss
	on Investments		(35,943,915	)		(5,112,323	)		(10,198,848	)
Net Decrease in Net Assets
	Resulting from Operations	$	(24,254,460	)	$	(3,353,387	)	$	(7,307,617	)

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

37

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	11,689,455		$	23,696,469
Net realized gain on investments		4,182,101			1,833,214
Net change in unrealized
appreciation/depreciation of investments		(40,126,016	)		25,429,642
Net increase (decrease) in net assets
resulting from operations		(24,254,460	)		50,959,325
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(11,071,516	)		(22,294,999	)
Class B		(94,497	)		(258,145	)
Class C		(590,087	)		(1,147,610	)
Net realized gain on investments:
Class A		(2,377,492	)		—
Class B		(25,548	)		—
Class C		(157,451	)		—
		(14,316,591	)		(23,700,754	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		21,965,698			46,342,217
Class B		—			307
Class C		2,071,165			7,044,823
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		9,322,852			14,438,208
Class B		82,256			171,205
Class C		627,154			866,714
		34,069,125			68,863,474

38

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(53,478,282	)	$	(58,794,667	)
Class B		(1,843,669	)		(2,806,931	)
Class C		(5,792,366	)		(4,726,887	)
		(61,114,317	)		(66,328,485	)
Increase (decrease) in net assets derived from
capital share transactions		(27,045,192	)		2,534,989
Net Increase (Decrease) in Net Assets		(65,616,243	)		29,793,560
Net Assets:
Beginning of period		632,866,065			603,072,505
End of period	$	567,249,822		$	632,866,065
Distributions in excess of
net investment income	$	(145,618	)	$	(144,194	)

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

39

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,758,936		$	3,280,111
Net realized gain (loss) on investments		(15,209	)		269,806
Net change in unrealized
appreciation/depreciation of investments		(5,097,114	)		4,114,787
Net increase (decrease) in net assets
resulting from operations		(3,353,387	)		7,664,704
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(1,564,440	)		(2,934,175	)
Class B		(1,991	)		(4,488	)
Class C		(189,374	)		(334,083	)
		(1,755,805	)		(3,272,746	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		7,860,489			26,843,282
Class B		—			71,813
Class C		1,792,769			5,693,861
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,022,481			1,875,774
Class B		1,986			4,120
Class C		149,441			241,743
		10,827,166			34,730,593

40

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(15,905,138	)	$	(13,988,840	)
Class B		(20,113	)		(231,461	)
Class C		(2,109,001	)		(3,128,847	)
		(18,034,252	)		(17,349,148	)
Increase (decrease) in net assets derived from
capital share transactions		(7,207,086	)		17,381,445
Net Increase (Decrease) in Net Assets		(12,316,278	)		21,773,403
Net Assets:
Beginning of period		111,386,981			89,613,578
End of period	$	99,070,703		$	111,386,981
Undistributed net investment income	$	2,522		$	2,522

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

41

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,891,231		$	5,595,726
Net realized gain on investments		481,779			498,563
Net change in unrealized
appreciation/depreciation of investments		(10,680,627	)		10,746,599
Net increase (decrease) in net assets
resulting from operations		(7,307,617	)		16,840,888
Dividends and Distributions to Shareholders from:
Net Investment Income:
Class A		(2,356,718	)		(4,546,424	)
Class B		(62,880	)		(149,738	)
Class C		(462,933	)		(866,306	)
		(2,882,531	)		(5,562,468	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		8,076,865			14,818,477
Class B		363			157
Class C		2,326,747			4,061,927
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,541,174			2,929,971
Class B		52,896			104,474
Class C		377,165			629,003
		12,375,210			22,544,009

42

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(12,322,868	)	$	(15,506,059	)
Class B		(508,769	)		(1,328,942	)
Class C		(3,575,995	)		(2,778,753	)
		(16,407,632	)		(19,613,754	)
Increase (decrease) in net assets derived from
capital share transactions		(4,032,422	)		2,930,255
Net Increase (Decrease) in Net Assets		(14,222,570	)		14,208,675
Net Assets:
Beginning of period		151,895,073			137,686,398
End of period	$	137,672,503		$	151,895,073
Undistributed net investment income	$	55		$	37

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

43

Financial highlights
Delaware Tax-Free Minnesota Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

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

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

44

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.730		$12.180		$12.120		$12.170		$12.490		$12.690
	0.242		0.484		0.474		0.495		0.511		0.511
	(0.717	)	0.550		0.107		(0.041	)	(0.313	)	(0.172	)
	(0.475	)	1.034		0.581		0.454		0.198		0.339
	(0.243	)	(0.484	)	(0.473	)	(0.502	)	(0.507	)	(0.513	)
	(0.052	)	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
	(0.295	)	(0.484	)	(0.521	)	(0.504	)	(0.518	)	(0.539	)
	$11.960		$12.730		$12.180		$12.120		$12.170		$12.490
	(3.75%	)	8.66%		5.04%		3.77%		1.58%		2.78%
	$528,664		$586,651		$559,393		$574,914		$578,194		$381,720
	0.92%		0.93%		0.92%		0.93%		0.94%		0.93%
	—		—		0.01%		0.18%		0.29%		0.26%
	0.92%		0.93%		0.93%		1.11%		1.23%		1.19%
	0.93%		0.93%		0.94%		0.93%		0.96%		0.94%
	—		—		0.01%		0.18%		0.29%		0.26%
	0.93%		0.93%		0.95%		1.11%		1.25%		1.20%
	3.98%		3.89%		4.03%		4.05%		4.12%		4.11%
	3.97%		3.89%		4.01%		4.05%		4.10%		4.10%
	7%		20%		20%		17%		7%		13%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 8 in “Notes to financial statements”.
 

45

Financial highlights
Delaware Tax-Free Minnesota Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

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

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

46

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.740		$12.190		$12.130		$12.180		$12.500		$12.700
	0.196		0.391		0.386		0.403		0.419		0.418
	(0.716	)	0.550		0.107		(0.041	)	(0.314	)	(0.172	)
	(0.520	)	0.941		0.493		0.362		0.105		0.246
	(0.198	)	(0.391	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)
	(0.052	)	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
	(0.250	)	(0.391	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)
	$11.970		$12.740		$12.190		$12.130		$12.180		$12.500
	(4.10%	)	7.85%		4.26%		2.99%		0.82%		2.01%
	$5,086		$7,234		$9,506		$11,593		$15,674		$11,354
	1.67%		1.68%		1.67%		1.68%		1.69%		1.68%
	—		—		0.01%		0.18%		0.29%		0.26%
	1.67%		1.68%		1.68%		1.86%		1.98%		1.94%
	1.68%		1.68%		1.69%		1.68%		1.71%		1.69%
	—		—		0.01%		0.18%		0.29%		0.26%
	1.68%		1.68%		1.70%		1.86%		2.00%		1.95%
	3.23%		3.14%		3.28%		3.30%		3.37%		3.36%
	3.22%		3.14%		3.26%		3.30%		3.35%		3.35%
	7%		20%		20%		17%		7%		13%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 8 in “Notes to financial statements”.

47

Financial highlights
Delaware Tax-Free Minnesota Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

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

       rate notes issued

Interest and fees on short-term floating rate notes issued

Total expenses3

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

       rate notes issued prior to fees waived and expense paid indirectly

Interest and fees on short-term floating rate notes issued

Total expenses prior to fees waived and expense paid indirectly3

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

48

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.780		$12.220		$12.160		$12.200		$12.530		$12.720
	0.197		0.392		0.386		0.403		0.418		0.418
	(0.727	)	0.560		0.107		(0.031	)	(0.323	)	(0.162	)
	(0.530	)	0.952		0.493		0.372		0.095		0.256
	(0.198	)	(0.392	)	(0.385	)	(0.410	)	(0.414	)	(0.420	)
	(0.052	)	—		(0.048	)	(0.002	)	(0.011	)	(0.026	)
	(0.250	)	(0.392	)	(0.433	)	(0.412	)	(0.425	)	(0.446	)
	$12.000		$12.780		$12.220		$12.160		$12.200		$12.530
	(4.16%	)	7.91%		4.25%		3.06%		0.73%		2.08%
	$33,500		$38,981		$34,174		$27,585		$26,830		$15,125
	1.67%		1.68%		1.67%		1.68%		1.69%		1.68%
	—		—		0.01%		0.18%		0.29%		0.26%
	1.67%		1.68%		1.68%		1.86%		1.98%		1.94%
	1.68%		1.68%		1.69%		1.68%		1.71%		1.69%
	—		—		0.01%		0.18%		0.29%		0.26%
	1.68%		1.68%		1.70%		1.86%		2.00%		1.95%
	3.23%		3.14%		3.28%		3.30%		3.37%		3.36%
	3.22%		3.14%		3.26%		3.30%		3.35%		3.35%
	7%		20%		20%		17%		7%		13%

3 Total expenses and total expenses prior to fees waived and expense paid indirectly includes interest and related expenses which include, but are not limited to, interest expense, remarketing fees, liquidity fees, and trustees’ fees in connection with the Fund’s participation in inverse floater programs. See Notes 1 and 8 in “Notes to financial statements”.

49

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

50

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.290		$10.820		$10.720		$10.610		$10.860		$11.010
	0.189		0.376		0.384		0.414		0.445		0.429
	(0.511	)	0.469		0.100		0.110		(0.250	)	(0.150	)
	(0.322	)	0.845		0.484		0.524		0.195		0.279
	(0.188	)	(0.375	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)
	(0.188	)	(0.375	)	(0.384	)	(0.414	)	(0.445	)	(0.429	)
	$10.780		$11.290		$10.820		$10.720		$10.610		$10.860
	(2.85%	)	7.96%		4.67%		5.00%		1.80%		2.62%
	$85,144		$96,568		$78,021		$58,465		$48,477		$48,297
	0.84%		0.82%		0.75%		0.75%		0.76%		0.75%
	0.95%		0.96%		0.97%		0.95%		1.00%		0.97%
	3.48%		3.42%		3.62%		3.83%		4.11%		3.96%
	3.37%		3.28%		3.40%		3.63%		3.87%		3.74%
	16%		22%		12%		27%		15%		11%

51

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

52

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.330		$10.850		$10.750		$10.640		$10.890		$11.040
	0.143		0.284		0.295		0.322		0.353		0.337
	(0.520	)	0.479		0.100		0.110		(0.250	)	(0.150	)
	(0.377	)	0.763		0.395		0.432		0.103		0.187
	(0.143	)	(0.283	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
	(0.143	)	(0.283	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
	$10.810		$11.330		$10.850		$10.750		$10.640		$10.890
	(3.33%	)	7.14%		3.79%		4.10%		0.94%		1.75%
	$145		$170		$317		$908		$1,713		$1,993
	1.69%		1.67%		1.60%		1.60%		1.61%		1.60%
	1.70%		1.71%		1.72%		1.70%		1.75%		1.72%
	2.63%		2.57%		2.77%		2.98%		3.26%		3.11%
	2.62%		2.53%		2.65%		2.88%		3.12%		2.99%
	16%		22%		12%		27%		15%		11%

53

Financial highlights
Delaware Tax-Free Minnesota Intermediate Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

 

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

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

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

54

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.320		$10.840		$10.740		$10.630		$10.880		$11.030
	0.143		0.283		0.295		0.322		0.353		0.337
	(0.520	)	0.479		0.100		0.110		(0.250	)	(0.150	)
	(0.377	)	0.762		0.395		0.432		0.103		0.187
	(0.143	)	(0.282	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
	(0.143	)	(0.282	)	(0.295	)	(0.322	)	(0.353	)	(0.337	)
	$10.800		$11.320		$10.840		$10.740		$10.630		$10.880
	(3.34%	)	7.14%		3.78%		4.10%		0.94%		1.75%
	$13,782		$14,649		$11,276		$7,126		$4,936		$5,162
	1.69%		1.67%		1.60%		1.60%		1.61%		1.60%
	1.70%		1.71%		1.72%		1.70%		1.75%		1.72%
	2.63%		2.57%		2.77%		2.98%		3.26%		3.11%
	2.62%		2.53%		2.65%		2.88%		3.12%		2.99%
	16%		22%		12%		27%		15%		11%

55

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

 

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

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

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

56

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.710		$9.910		$10.000		$10.180		$10.530		$10.610
	0.212		0.415		0.422		0.418		0.430		0.445
	(0.701	)	0.798		(0.091	)	(0.180	)	(0.350	)	(0.082	)
	(0.489	)	1.213		0.331		0.238		0.080		0.363
	(0.211	)	(0.413	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)
	(0.211	)	(0.413	)	(0.421	)	(0.418	)	(0.430	)	(0.443	)
	$10.010		$10.710		$9.910		$10.000		$10.180		$10.530
	(4.59%	)	12.46%		3.63%		2.35%		0.71%		3.54%
	$108,336		$119,038		$107,951		$116,999		$109,807		$87,504
	0.93%		0.93%		0.89%		0.89%		0.90%		0.89%
	0.97%		0.98%		0.97%		0.97%		1.00%		1.00%
	4.15%		4.02%		4.49%		4.11%		4.09%		4.26%
	4.11%		3.97%		4.41%		4.03%		3.99%		4.15%
	3%		11%		12%		10%		10%		4%

57

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

 

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

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

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

58

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.720		$9.920		$10.010		$10.190		$10.550		$10.630
	0.174		0.338		0.352		0.341		0.351		0.367
	(0.701	)	0.798		(0.091	)	(0.179	)	(0.360	)	(0.082	)
	(0.527	)	1.136		0.261		0.162		(0.009	)	0.285
	(0.173	)	(0.336	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)
	(0.173	)	(0.336	)	(0.351	)	(0.342	)	(0.351	)	(0.365	)
	$10.020		$10.720		$9.920		$10.010		$10.190		$10.550
	(4.94%	)	11.62%		2.86%		1.58%		(0.13%	)	2.77%
	$3,415		$4,130		$4,995		$5,907		$7,334		$9,578
	1.68%		1.68%		1.64%		1.64%		1.65%		1.64%
	1.72%		1.73%		1.72%		1.72%		1.75%		1.75%
	3.40%		3.27%		3.74%		3.36%		3.34%		3.51%
	3.36%		3.22%		3.66%		3.28%		3.24%		3.40%
	3%		11%		12%		10%		10%		4%

59

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

60

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.730		$9.930		$10.020		$10.200		$10.550		$10.630
	0.174		0.338		0.352		0.342		0.351		0.367
	(0.701	)	0.798		(0.091	)	(0.181	)	(0.350	)	(0.082	)
	(0.527	)	1.136		0.261		0.161		0.001		0.285
	(0.173	)	(0.336	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)
	(0.173	)	(0.336	)	(0.351	)	(0.341	)	(0.351	)	(0.365	)
	$10.030		$10.730		$9.930		$10.020		$10.200		$10.550
	(4.93%	)	11.61%		2.85%		1.58%		(0.04%	)	2.76%
	$25,922		$28,727		$24,740		$28,849		$26,016		$20,516
	1.68%		1.68%		1.64%		1.64%		1.65%		1.64%
	1.72%		1.73%		1.72%		1.72%		1.75%		1.75%
	3.40%		3.27%		3.74%		3.36%		3.34%		3.51%
	3.36%		3.22%		3.66%		3.28%		3.24%		3.40%
	3%		11%		12%		10%		10%		4%

61

Notes to financial statements

Delaware Minnesota Municipal Bond Funds February 28, 2011 (Unaudited)

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund and Delaware Tax-Free New York Fund. Voyageur Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Fund. Voyageur Intermediate Tax-Free Funds is organized as a Delaware statutory trust and offers Delaware Tax-Free Minnesota Intermediate Fund. Voyageur Mutual Funds, Voyageur Tax-Free Funds and Voyageur Intermediate Tax-Free Funds are individually referred to as a “Trust” and collectively as “Trusts”. These financial statements and the related notes pertain to Delaware Tax-Free Minnesota Fund, Delaware Tax-Free Minnesota Intermediate Fund and Delaware Minnesota High-Yield Municipal Bond Fund (each referred to as a “Fund” or collectively as the “Funds”). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50% for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and up to 2.75% for Delaware Tax-Free Minnesota Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year for the Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and 0.75% for the Delaware Tax-Free Minnesota Intermediate Fund if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund, and declined from 2% to zero for Delaware Tax-Free Minnesota Intermediate Fund depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase for Delaware Tax-Free Minnesota Fund and Delaware Minnesota High-Yield Municipal Bond Fund and approximately five years after purchase for Delaware Tax-Free Minnesota Intermediate Fund. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

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

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

62

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

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 the differences could be material.

63

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 six months ended February 28, 2011.

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. Dividends and distributions, if any, are recorded on the ex-dividend date. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended February 28, 2011.

The Funds receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the six months ended February 28, 2011, 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
$356	$77	$114

64

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%

Effective December 29, 2010, DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse the Funds to the extent necessary to prevent total annual fund operating expenses (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations) from exceeding the following percentages of each Fund’s average daily net assets through December 29, 2011. 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. Prior to December 29, 2010, DMC had 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 did not exceed 0.70% of average daily net assets.

		Delaware Tax-Free	Delaware Minnesota
	Delaware Tax-Free	Minnesota	High-Yield Municipal
	Minnesota Fund	Intermediate Fund	Bond Fund
Effective December 29, 2010
Operating expense limitation as a
percentage of average daily net
assets (per annum)	0.65%	0.69%	0.64%

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

65

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

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

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, 2011, 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
$14,799	$2,599	$3,598

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 29, 2011 to no more than 0.15% of average daily net assets.

At February 28, 2011, each Fund 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 fees
payable to DMC		$	230,535		$	35,343		$	48,174
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC			12,502			2,405			3,706
Distribution fees payable
to DDLP			130,596			20,524			43,132
Other expenses payable to
DMC and affiliates*			19,083			2,571			5,727

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

66

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2011, 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
$2,169	$393	$513

For the six months ended February 28, 2011, DDLP earned commissions on sales of the Fund’s 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
$31,418	$7,161	$8,415

For the six months ended February 28, 2011, 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/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			885			20			1,634
Class C			1,020			1,373			192

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 six months ended February 28, 2011, 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		$	43,616,966		$	16,599,502		$	3,889,100
Sales			79,937,129			24,757,454			6,932,060

67

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

3. Investments (continued)

At February 28, 2011, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2011, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Cost of investments		$	561,555,426			$	95,917,422			$	140,507,248
Aggregate unrealized appreciation		$	16,889,669			$	2,774,153			$	2,630,270
Aggregate unrealized depreciation			(14,498,902	)			(771,821	)			(6,880,582	)
Net unrealized
appreciation (depreciation)		$	2,390,767			$	2,002,332			$	(4,250,312	)

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

Level 1 –	inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)
Level 2 –	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)
Level 3 –	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

68

The following table summarizes the valuation of the each Fund’s investments by fair value hierarchy levels as of February 28, 2011:

	Delaware Tax-Free Minnesota Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	561,859,796	$	561,859,796
Short-Term Investments		186,397		1,900,000		2,086,397
Total	$	186,397	$	563,759,796	$	563,946,193
	Delaware Tax-Free Minnesota Intermediate Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	97,101,081	$	97,101,081
Short-Term Investments		18,673		800,000		818,673
Total	$	18,673	$	97,901,081	$	97,919,754
	Delaware Minnesota High-Yield Municipal Bond Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	136,186,081	$	136,186,081
Short-Term Investment		70,855		—		70,855
Total	$	70,855	$	136,186,081	$	136,256,936

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

During the six months ended February 28, 2011, there were no transfers 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 six months ended February 28, 2011 and the year ended August 31, 2010 was as follows:

				Delaware Tax-Free			Delaware Minnesota
	Delaware Tax-Free			Minnesota			High-Yield Municipal
	Minnesota Fund			Intermediate Fund			Bond Fund
Six Months Ended 2/28/11*
Ordinary income		$	1,054,835		$	5,714		$	9,116
Tax-exempt income			11,686,069			1,750,091			2,873,415
Long-term capital gain			1,575,687			—			—
Total		$	14,316,591		$	1,755,805		$	2,882,531
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

*Tax information for the six months ended February 28, 2011 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

69

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2011, the estimated components of net assets on a tax basis were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Shares of beneficial interest		$	561,732,978			$	97,817,996			$	145,767,616
Distributions payable			(379,903	)			(54,789	)			(95,082	)
Undistributed ordinary income			13,451				—				—
Undistributed long-term capital gains			3,258,244				—				—
Undistributed tax-exempt income			234,285				57,311				95,137
Realized gains 9/1/10-2/28/11			—				224,034				481,867
Capital loss carryforward
as of 8/31/10			—				(741,082	)			(4,326,723	)
Post-October losses			—				(235,099	)			—
Unrealized appreciation (depreciation) of
investments			2,390,767				2,002,332				(4,250,312	)
Net assets		$	567,249,822			$	99,070,703			$	137,672,503

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 distributions payable.

Post-October losses represent losses realized on investment transactions from November 1, 2010 through February 28, 2011 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2011, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
Undistributed net investment income		$	65,221			$	(3,131	)		$	(8,682	)
Accumulated net realized gain (loss)			(65,221	)			3,131				8,682

70

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 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

For the six months ended February 28, 2011, the Funds had capital gains which may decrease the capital loss carryforwards as follows:

Delaware Tax-Free	Delaware Minnesota
Minnesota	High-Yield Municipal
Intermediate Fund	Bond Fund
$224,034	$481,867

71

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

6. Capital Shares

Transactions in capital shares were as follows:

					Delaware Tax-Free				Delaware Minnesota
	Delaware Tax-Free				Minnesota				High-Yield Municipal
	Minnesota Fund				Intermediate Fund				Bond Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/28/11		8/31/10		2/28/11		8/31/10		2/28/11		8/31/10
Shares sold:
Class A	1,803,096		3,733,307		717,773		2,446,624		779,146		1,436,037
Class B	—		25		—		6,542		35		15
Class C	167,947		565,348		162,983		516,889		222,756		393,200
Shares issued upon reinvestment of dividends and distributions:
Class A	764,473		1,161,269		93,796		170,638		150,511		283,278
Class B	6,733		13,769		182		374		5,158		10,093
Class C	51,268		69,468		13,678		21,937		36,776		60,655
	2,793,517		5,543,186		988,412		3,163,004		1,194,382		2,183,278
Shares repurchased:
Class A	(4,427,967	)	(4,736,716	)	(1,464,179	)	(1,277,249	)	(1,217,930	)	(1,501,476	)
Class B	(149,450	)	(225,629	)	(1,834	)	(21,083	)	(49,565	)	(128,538	)
Class C	(478,118	)	(379,026	)	(195,284	)	(284,347	)	(351,043	)	(269,385	)
	(5,055,535	)	(5,341,371	)	(1,661,297	)	(1,582,679	)	(1,618,538	)	(1,899,399	)
Net increase (decrease)	(2,262,018	)	201,815		(672,885	)	1,580,325		(424,156	)	283,879

For the six months ended February 28, 2011 and the year ended August 31, 2010, the following shares and values were converted from Class B to Class A shares. The respective amounts are included in Class B redemptions and Class A subscriptions in the tables above and the statements of changes in net assets.

	Six Months Ended				Year Ended
		2/28/11				8/31/10
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Minnesota Fund	80,212	80,238	$	996,199	143,907	144,023	$	1,790,535
Delaware Tax-Free Minnesota
Intermediate Fund	1,108	1,111		12,331	16,599	16,648		182,669
Delaware Minnesota High-Yield
Municipal Bond Fund	16,533	16,549		172,833	77,229	77,360		799,041

72

7. Line of Credit

The Funds, along with certain other funds in the Delaware Investments® Family of Funds (Participants), was a participant 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 were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The line of credit expired on November 16, 2010.

Effective as of November 16, 2010, the Funds along with the other Participants entered into an amendment to the agreement with BNY Mellon for a $50,000,000 revolving line of credit. The agreement as amended is to be used as described above and operates in substantially the same manner as the original agreement. The new line of credit under the agreement as amended expires on November 15, 2011. The Funds had no amounts outstanding as of February 28, 2011, or at any time during the period then ended.

8. Derivatives

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

Inverse Floaters — Each Fund may participate in inverse floater programs where a Fund transfers its own bonds to a trust that issues floating rate securities and inverse floating rate securities (inverse floaters) with an aggregate principal amount equal to the principal of the transferred bonds. The inverse floaters received by the Funds are derivative tax-exempt obligations with floating or variable interest rates that move in the opposite direction of short-term interest rates, usually at an accelerated speed. Consequently, the market values of the inverse floaters will generally be more volatile than other tax-exempt investments. The Funds typically use inverse floaters to adjust the duration of their portfolio. Duration measures a portfolio’s sensitivity to changes in interest rates. By holding inverse floaters with a different duration than the underlying bonds that a Fund transferred to the trust, the Fund seeks to adjust its portfolio’s sensitivity to changes in interest rates. The Funds may also invest in inverse floaters to add additional income to the Funds or to adjust the Funds’ exposure to a specific segment of the yield curve. At February 28, 2011, 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

73

Notes to financial statements
Delaware Minnesota Municipal Bond Funds

9. Credit and Market Risk (continued)

the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in each Fund. At February 28, 2011, 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
21%	23%	15%

Each Fund invests a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s (S&P) and Baa3 by Moody’s Investor Services (Moody’s), or similarly rated by another nationally recognized statistical rating organization. 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.

74

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 February 28, 2011, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

10. Contractual Obligations

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

11. Subsequent Events

Management has determined no material events or transactions occurred subsequent to February 28, 2011 that would require recognition or disclosure in the Funds’ financial statements.

75

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 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 Trusts did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trusts and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trusts nor anyone on 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 Trusts ’ financial statements.

76

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

78

Semiannual report

Delaware Tax-Free USA Fund

Delaware Tax-Free USA Intermediate Fund

Delaware National High-Yield Municipal
Bond Fund

February 28, 2011

Fixed income mutual funds 

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

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

Experience Delaware Investments

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

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

You can learn more about Delaware Investments or obtain a prospectus for Delaware Tax-Free 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
Disclosure of Fund expenses	1
Sector allocations	4
Statements of net assets	7
Statements of operations	52
Statements of changes in net assets	54
Financial highlights	60
Notes to financial statements	84
Other Fund information	96
About the organization	97

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2011, and subject to change.

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

© 2011 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the six-month period September 1, 2010 to February 28, 2011

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from September 1, 2010 to February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

1

Disclosure of Fund expenses

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	956.50	0.80	%	$	3.88
Class B		1,000.00		953.80	1.56	%		7.56
Class C		1,000.00		953.80	1.56	%		7.56
Institutional Class		1,000.00		958.20	0.56	%		2.72
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.83	0.80	%	$	4.01
Class B		1,000.00		1,017.06	1.56	%		7.80
Class C		1,000.00		1,017.06	1.56	%		7.80
Institutional Class		1,000.00		1,022.02	0.56	%		2.81

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	961.70	0.75	%	$	3.65
Class B		1,000.00		956.70	1.60	%		7.76
Class C		1,000.00		956.80	1.60	%		7.76
Institutional Class		1,000.00		962.10	0.60	%		2.92
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,021.08	0.75	%	$	3.76
Class B		1,000.00		1,016.86	1.60	%		8.00
Class C		1,000.00		1,016.86	1.60	%		8.00
Institutional Class		1,000.00		1,021.82	0.60	%		3.01

2

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	937.20	0.85	%	$	4.08
Class B		1,000.00		933.90	1.60	%		7.67
Class C		1,000.00		934.00	1.60	%		7.67
Institutional Class		1,000.00		938.10	0.60	%		2.88
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.58	0.85	%	$	4.26
Class B		1,000.00		1,016.86	1.60	%		8.00
Class C		1,000.00		1,016.86	1.60	%		8.00
Institutional Class		1,000.00		1,021.82	0.60	%		3.01

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

3

Sector allocations
Delaware Tax-Free USA Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	96.59	%
Corporate Revenue Bonds	16.36	%
Education Revenue Bonds	10.43	%
Electric Revenue Bonds	2.32	%
Healthcare Revenue Bonds	9.02	%
Housing Revenue Bonds	1.46	%
Lease Revenue Bonds	4.68	%
Local General Obligation Bonds	4.85	%
Pre-Refunded/Escrowed to Maturity Bonds	10.26	%
Special Tax Revenue Bonds	12.85	%
State General Obligation Bonds	10.81	%
Transportation Revenue Bonds	9.74	%
Water & Sewer Revenue Bonds	3.81	%
Short-Term Investments	3.48	%
Total Value of Securities	100.07	%
Liabilities Net of Receivables and Other Assets	(0.07	%)
Total Net Assets	100.00	%

4

Delaware Tax-Free USA Intermediate Fund As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	95.84	%
Corporate Revenue Bonds	9.25	%
Education Revenue Bonds	5.83	%
Electric Revenue Bonds	2.26	%
Healthcare Revenue Bonds	9.33	%
Housing Revenue Bonds	0.64	%
Lease Revenue Bonds	3.26	%
Local General Obligation Bonds	5.60	%
Pre-Refunded/Escrowed to Maturity Bonds	4.86	%
Resource Recovery Revenue Bonds	0.29	%
Special Tax Revenue Bonds	11.20	%
State General Obligation Bonds	25.21	%
Transportation Revenue Bonds	12.56	%
Water & Sewer Revenue Bonds	5.55	%
Short-Term Investments	2.63	%
Total Value of Securities	98.47	%
Receivables and Other Assets Net of Liabilities	1.53	%
Total Net Assets	100.00	%

5

Sector allocations
Delaware National High-Yield Municipal Bond Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	91.28	%
Corporate Revenue Bonds	17.51	%
Education Revenue Bonds	19.98	%
Electric Revenue Bond	0.42	%
Healthcare Revenue Bonds	19.24	%
Housing Revenue Bonds	0.70	%
Lease Revenue Bonds	3.73	%
Local General Obligation Bonds	1.14	%
Pre-Refunded Bonds	0.52	%
Special Tax Revenue Bonds	16.22	%
State General Obligation Bonds	5.26	%
Transportation Revenue Bonds	4.89	%
Water & Sewer Revenue Bonds	1.67	%
Short-Term Investments	5.97	%
Total Value of Securities	97.25	%
Receivables and Other Assets Net of Liabilities	2.75	%
Total Net Assets	100.00	%

6

Statements of net assets
Delaware Tax-Free USA Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 96.59%
Corporate Revenue Bonds – 16.36%
	Alliance Airport Authority, Texas Special Facilities Revenue
	(American Airlines Project) Series B 5.25% 12/1/29 (AMT)	$	2,250,000	$	1,601,078
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)		3,000,000		812,190
	•(TXU Energy Co. Project) Series B 6.30% 7/1/32 (AMT)		3,500,000		947,135
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.875% 6/1/47		14,405,000		9,595,746
	6.50% 6/1/47		6,000,000		4,381,380
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26		1,695,000		1,522,737
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue
	(Deer Park Refining Project) 5.00% 2/1/23		2,955,000		2,971,430
	Hawaii State Department Budget &
	Finance Special Purpose Revenue (Hawaiian
	Electric Co. Subsidiary) 6.50% 7/1/39		5,350,000		5,279,166
	Illinois Railsplitter Tobacco Settlement Authority
	6.00% 6/1/28		6,000,000		5,885,700
	6.25% 6/1/24		6,810,000		6,836,081
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp. Project) 6.00% 12/1/26		2,610,000		2,592,905
	Indianapolis, Indiana Airport Authority Revenue
	Special Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)		2,750,000		2,905,513
	Series 1998 5.50% 5/1/29 (AMT)		2,000,000		1,817,440
	Iowa Finance Authority Pollution Control Facility Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)		3,640,000		3,922,100
	Maryland Economic Development Corporation Revenue
	(CNX Marine Terminals Inc.) 5.75% 9/1/25		3,375,000		3,173,580
	Mason County, West Virginia Pollution Control Revenue
	(Appalachian Power Co. Project)
	Series K 6.05% 12/1/24 (AMBAC)		3,000,000		3,020,910
	Mississippi Business Finance Corporation Pollution Control
	Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22		3,000,000		2,959,950

7

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	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	$	2,205,852
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.)
	Series B 4.875% 6/1/34		4,750,000		5,038,753
	M-S-R Energy Authority, California Gas Revenue Series A
	6.125% 11/1/29		1,915,000		1,937,176
	6.50% 11/1/39		3,915,000		4,071,091
	New Jersey Economic Development Authority Special
	Facility Revenue (Continental Airlines, Inc. Project)
	6.25% 9/15/29 (AMT)		2,000,000		1,874,960
•	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		4,707,133
	7.75% 8/1/31 (AMT)		2,000,000		2,046,120
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy Generation)
	Series A 5.70% 8/1/20		4,750,000		4,914,255
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39		6,340,000		6,825,706
	Petersburg, Indiana Pollution Control Revenue (Indianapolis
	Power & Light Co. Project) 6.375% 11/1/29 (AMT)		5,000,000		5,019,700
	Richmond County, Georgia Development Authority
	Environmental Improvement Revenue (International
	Paper Co.) Series B 5.95% 11/15/25 (AMT)		5,000,000		5,009,150
	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		464,845
					104,339,782
Education Revenue Bonds – 10.43%
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45		5,390,000		4,898,432
	Broward County, Florida Educational Facilities Authority
	Revenue (Nova Southeastern Project)
	5.25% 4/1/27 (RADIAN)		1,000,000		912,910

8

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools)
	6.125% 7/1/46	$	5,160,000	$	4,534,866
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)		3,400,000		3,022,022
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25		3,000,000		3,234,570
	Delaware County, Pennsylvania Industrial Development
	Authority Charter School Revenue (Chester Community
	Charter School) Series A 6.125% 8/15/40		2,400,000		2,155,824
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37		2,850,000		2,050,233
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39		4,200,000		3,930,948
	Massachusetts Development Finance Agency
	(Harvard University) Series B-2 5.25% 2/1/34		5,000,000		5,303,500
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Harvard University) Series A
	5.00% 12/15/29		5,295,000		5,645,688
	5.50% 11/15/36		4,515,000		4,804,682
	(Nichols College Project) Series C 6.125% 10/1/29		4,350,000		4,211,540
	Missouri State Health & Educational Facilities
	Authority Revenue (Washington University)
	Series A 5.375% 3/15/39		5,000,000		5,186,700
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42		4,285,000		3,933,587
	New Jersey State Educational Facilities Authority Revenue
	(University of Medicine & Dentistry) Series B 7.50% 12/1/32		1,435,000		1,580,050
	Pennsylvania State Higher Educational Facilities Authority
	Student Housing Revenue (University Properties Inc. - East
	Stroudsburg University of Pennsylvania) 5.00% 7/1/31		6,000,000		5,167,380
	Provo, Utah Charter School Revenue (Freedom Academy
	Foundation Project) 5.50% 6/15/37		1,665,000		1,188,277
	San Juan, Texas Higher Education Finance Authority
	Education Revenue (Idea Public Schools)
	Series A 6.70% 8/15/40		1,500,000		1,506,195

9

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	St. Louis, Missouri Industrial Development Authority
	Revenue (Confluence Academy Project) Series A
	5.25% 6/15/25	$	1,150,000	$	962,550
	5.35% 6/15/32		2,300,000		1,810,491
	University of the Virgin Islands Series A 5.375% 6/1/34		500,000		457,530
					66,497,975
Electric Revenue Bonds – 2.32%
	California State Department of Water Resources
	Series L 5.00% 5/1/20		5,000,000		5,664,550
	Puerto Rico Electric Power Authority Revenue
	Series PP 5.00% 7/1/25 (NATL-RE) (FGIC)		1,000,000		956,500
	Series WW 5.50% 7/1/38		2,100,000		1,915,074
	Series XX 5.75% 7/1/36		5,495,000		5,241,186
	Sikeston, Missouri Electric Revenue Refunding
	6.00% 6/1/13 (NATL-RE)		1,000,000		1,048,640
					14,825,950
Healthcare Revenue Bonds – 9.02%
	Brevard County, Florida Health Facilities Authority
	Revenue (Heath First Inc. Project)
	Series B 7.00% 4/1/39		1,610,000		1,724,664
	Butler County, Pennsylvania Hospital Authority
	Revenue (Butler Health System Project)
	7.125% 7/1/29		2,250,000		2,458,710
	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		981,480
	Cleveland-Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38		1,500,000		1,144,065
	Colorado Health Facilities Authority Revenue
	(Evangelical Lutheran) Series A 5.25% 6/1/34		4,275,000		3,945,740
	Cuyahoga County, Ohio Revenue (Cleveland Clinic
	Health Systems) Series A 5.50% 1/1/29		4,000,000		3,977,200
	Fairfax County, Virginia Industrial Development Authority
	Revenue (Inova Health Services) Series A 5.50% 5/15/35		2,500,000		2,529,400
	Gainesville & Hall County, Georgia Development Authority
	Revenue Senior Living Facilities (Lanier Village Estates
	Project) Series C 7.25% 11/15/29		1,000,000		1,006,600

10

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Illinois Finance Authority Revenue (Silver Cross &
	Medical Centers) 7.00% 8/15/44		$5,500,000	$	5,492,739
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28		2,000,000		1,853,100
	Lucas County, Ohio Health Care Facility Revenue (Sunset
	Retirement Communities) Series A 6.625% 8/15/30		2,000,000		2,001,620
	Maricopa County, Arizona Industrial Development Authority
	Health Facilities Revenue (Catholic Healthcare West)
	Series A 6.00% 7/1/39		3,690,000		3,696,827
	Michigan State Hospital Finance Authority
	Revenue (Ascension Health Credit Group)
	Series B 5.25% 11/15/26		3,500,000		3,531,395
	(Trinity Health Credit) Series C 5.375% 12/1/30		4,500,000		4,369,050
	New York State Dormitory Authority Revenue Non State
	Supported Debt
	(North Shore LI Jewish Health System)
	Series A 5.50% 5/1/37		3,000,000		2,926,620
	(Orange Regional Medical Center) 6.50% 12/1/21		2,745,000		2,766,219
	North Carolina Medical Care Commission Health Care
	Facilities Revenue
	(First Mortgage - Galloway Ridge Project)
	Series A 5.875% 1/1/31		1,555,000		1,427,910
	(First Mortgage - Presbyterian Homes) 5.40% 10/1/27		3,260,000		2,839,199
	Ohio State Higher Educational Facility Community Revenue
	(Cleveland Clinic Health System Obligation Group)
	Series A 5.25% 1/1/33		2,000,000		1,944,160
^	Oregon Health & Science University Revenue (Capital
	Appreciation Insured) Series A 5.50% 7/1/21 (NATL-RE)		2,000,000		1,163,200
	Philadelphia, Pennsylvania Hospitals & Higher Education
	Facilities Authority Hospital Revenue (Temple University
	Health System) Series A 5.50% 7/1/30		2,700,000		2,410,344
	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		1,200,900
	Tallahassee, Florida Health Facilities Revenue
	(Tallahassee Memorial Regional Medical Center)
	Series B 6.00% 12/1/15 (NATL-RE)		2,140,000		2,144,430
					57,535,572

11

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds – 1.46%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45		$4,770,000	$	4,346,519
	Florida Housing Finance Agency
	(Landings at Sea Forest Apartments) Series T
	5.85% 12/1/18 (AMBAC) (FHA) (AMT)		270,000		270,024
	6.05% 12/1/36 (AMBAC) (FHA) (AMT)		700,000		633,360
	(Spinnaker Cove Apartments) Series G
	6.50% 7/1/36 (AMBAC) (FHA) (AMT)		500,000		478,450
	Missouri State Housing Development Commission
	Mortgage Revenue Single Family Homeowner Loan A
	5.20% 9/1/33 (GNMA) (FNMA) (AMT)		160,000		154,245
	Missouri State Housing Development Commission
	Multifamily Housing Revenue
	(Hyder) Series 3 5.60% 7/1/34 (FHA) (AMT)		1,435,000		1,435,187
	(San Remo) Series 5 5.45% 1/1/36 (FHA) (AMT)		500,000		489,965
	New Mexico Mortgage Finance Authority Revenue
	Series E 6.95% 1/1/26 (GNMA) (FNMA)		80,000		80,929
	Orange County, Florida Housing Finance Authority
	Homeowner Revenue Series B
	5.25% 3/1/33 (GNMA) (FNMA) (AMT)		100,000		97,079
	Oregon Health, Housing, Educational, & Cultural Facilities
	Authority Revenue (Pier Park Project) Series A
	6.05% 4/1/18 (AGM) (AMT)		815,000		816,133
	Volusia County, Florida Multifamily Housing Finance
	Authority (San Marco Apartments)
	Series A 5.60% 1/1/44 (AGM) (AMT)		500,000		491,115
					9,293,006
Lease Revenue Bonds – 4.68%
	Capital Area, Texas Cultural Education Facilities Finance
	Corporation Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45		2,045,000		1,948,251
	Capital Trust Agency Florida Revenue
	(Fort Lauderdale/Cargo Acquisition Project)
	5.75% 1/1/32 (AMT)		3,750,000		3,101,813
	(Orlando/Cargo Acquisition Project) 6.75% 1/1/32 (AMT)		2,395,000		2,114,282
	Grapevine, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.50% 1/1/24 (AMT)		850,000		794,240
	Houston, Texas Industrial Development Corporate Revenue
	(Air Cargo) 6.375% 1/1/23 (AMT)		1,985,000		1,824,632

12

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Loudoun County, Virginia Industrial Development
	Authority Public Safety Facility Lease Revenue
	Series A 5.25% 12/15/23 (AGM)	$	700,000	$	756,266
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue
	(Branson Landing Project) Series A
	5.25% 12/1/19		1,435,000		1,494,538
	5.625% 12/1/28		2,365,000		2,389,620
	(Sewer System Improvement Project)
	Series C 5.00% 3/1/25		605,000		585,465
	(Triumph Foods Project) Series A 5.25% 3/1/25		500,000		496,085
	New Jersey Economic Development Authority
	(School Facilities Construction)
	Series EE 5.00% 9/1/18		6,000,000		6,389,819
	Series GG 5.75% 9/1/23		1,000,000		1,073,150
	New Jersey State Various Purpose 5.00% 6/1/17		3,000,000		3,385,529
	Puerto Rico Commonwealth Industrial Development
	Company General Purpose Revenue
	Series B 5.375% 7/1/16		1,000,000		1,000,700
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series F 5.25% 7/1/25		930,000		887,546
^	St. Louis, Missouri Industrial Development Authority
	Leasehold Revenue (Convention Center Hotel)
	5.80% 7/15/20 (AMBAC)		3,035,000		1,620,842
					29,862,778
Local General Obligation Bonds – 4.85%
	Boerne, Texas Independent School District Building
	5.25% 2/1/27 (PSF)		4,000,000		4,169,160
	Fairfax County, Virginia Improvement
	Series A 5.00% 4/1/18		6,000,000		7,071,961
	Georgetown Independent School District (School Building)
	5.00% 8/15/22 (PSF)		500,000		565,480
	5.00% 8/15/24 (PSF)		1,430,000		1,580,407
	5.00% 8/15/25 (PSF)		945,000		1,033,083
	5.00% 8/15/26 (PSF)		1,000,000		1,081,820
	Los Angeles, California Unified School District Election of 2005
	Series F 5.00% 1/1/34		6,180,000		5,915,929

13

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	New York City, New York
	Series I-1 5.375% 4/1/36	$	5,000,000	$	5,091,650
	Unrefunded Balance Series I 5.125% 3/1/23		2,260,000		2,369,881
	Powell, Ohio 5.50% 12/1/32 (NATL-RE)		2,000,000		2,052,140
					30,931,511
§Pre-Refunded/Escrowed to Maturity Bonds – 10.26%
	Cape Girardeau County, Missouri Industrial Development
	Authority Health Care Facilities Revenue (Southeast
	Missouri Hospital) 5.25% 6/1/16 (NATL-RE)		440,000		485,373
	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		4,481,880
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Series B 5.625% 6/1/38-13		7,500,000		8,313,225
^	Greene County, Missouri Single Family Mortgage Revenue
	Municipal Multiplier (Private Mortgage Insurance)
	6.10% 3/1/16		1,225,000		1,092,921
	Henrico County, Virginia Economic Development Authority
	Revenue (Bon Secours Health System)
	Series A 5.60% 11/15/30-11		130,000		141,124
	Illinois Educational Facilities Authority Student Housing
	Revenue (Educational Advancement Fund - University
	Center Project) 6.25% 5/1/30-12		5,000,000		5,387,450
	Linn County, Oregon Community School District #9
	Lebanon 5.60% 6/15/30-13 (FGIC)		2,000,000		2,223,840
	Louisiana Public Facilities Authority Hospital Revenue
	(Southern Baptist Hospital, Inc. Project) 8.00% 5/15/12		1,880,000		1,954,880
	Maryland State Economic Development Corporation,
	Student Housing Revenue (University of Maryland
	College Park Project) 5.625% 6/1/35-13		1,125,000		1,247,513
	Milledgeville-Baldwin County, Georgia Development
	Authority Revenue (Georgia College & State University
	Foundation Student Housing Project) 6.00% 9/1/33-14		1,000,000		1,172,690
	New Jersey State Educational Facilities Authority
	Revenue (Stevens Institute of Technology)
	Series B 5.25% 7/1/24-14		2,085,000		2,364,056
	New Jersey State Highway Authority Garden State
	Parkway General Revenue (Senior Parkway)
	5.50% 1/1/14 (FGIC)		5,000,000		5,632,500
	5.50% 1/1/16 (FGIC)		1,000,000		1,179,700

14

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded/Escrowed to Maturity Bonds (continued)
	New York City, New York
	Series I 5.125% 3/1/23-13	$	3,615,000	$	3,939,229
	Series J 5.25% 6/1/28-13		1,495,000		1,648,267
	North Carolina Medical Care Commission Hospital Revenue
	(Northeast Medical Center Project) 5.125% 11/1/34-14		1,250,000		1,431,238
	Oklahoma State Turnpike Authority Revenue (First Senior)
	6.00% 1/1/22		13,535,000		16,835,374
	Osceola County, Florida School Board Certificates of
	Participation Series A 5.25% 6/1/27-12 (AMBAC)		2,500,000		2,669,250
	Virgin Islands Public Finance Authority Revenue
	Series A 7.30% 10/1/18		2,020,000		2,468,036
	Wisconsin Housing & Economic Developing Authority
	Revenue 6.10% 6/1/21-17 (FHA)		645,000		762,519
					65,431,065
Special Tax Revenue Bonds – 12.85%
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30		8,230,000		8,390,320
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21		3,130,000		3,487,196
	Florida Enterprise Community Development District
	Special Assessment 6.10% 5/1/16 (NATL-RE)		695,000		697,801
	Henderson, Nevada Local Improvement Districts
	#T-18 5.30% 9/1/35		2,310,000		1,191,683
	Hollywood, Florida Community Redevelopment Agency
	Revenue (Beach CRA) 5.625% 3/1/24		1,200,000		1,217,628
	Jacksonville, Florida Excise Taxes Revenue
	Series B 5.00% 10/1/26 (AMBAC)		1,000,000		1,000,710
	Lammersville, California School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35		4,125,000		3,185,078
	Middlesex County, New Jersey Improvement Authority Senior
	Revenue (Heldrich Center Hotel/Conference Project) Series A
	5.00% 1/1/32		1,500,000		694,305
	5.125% 1/1/37		1,500,000		692,835
	Missouri State Environmental Improvement & Energy Water
	Pollution Control Revenue (State Revolving Fund Project)
	Series A 6.05% 7/1/16 (AGM)		1,030,000		1,034,573
	Missouri State Highways & Transportation Commission State
	Road Revenue Series B 5.00% 5/1/24		9,000,000		9,600,570

15

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.50% 6/15/31	$	1,000,000	$	862,830
	5.75% 6/15/34		1,935,000		1,668,686
	New York City, New York
	Series A 5.00% 8/1/19		2,690,000		3,051,617
	Series B 5.00% 8/1/19		5,105,000		5,791,265
	New York City, New York Transitional Finance Authority
	Future Tax Secured
	Fiscal 2011 5.00% 2/1/26		3,000,000		3,169,350
	Series C 5.25% 11/1/25		6,000,000		6,528,660
	Series D 5.00% 2/1/31		5,000,000		4,999,800
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)		1,000,000		1,049,800
	New York State Dormitory Authority State Personal Income
	Tax Revenue Series B 5.25% 3/15/38		6,000,000		6,056,640
	Puerto Rico Sales Tax Financing Corporation Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32		10,780,000		8,728,997
	Series A 5.75% 8/1/37		5,000,000		4,966,150
	Tampa, Florida Sports Authority Revenue Sales Tax
	(Tampa Bay Arena Project) 5.75% 10/1/20 (NATL-RE)		1,000,000		1,039,310
^	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue (Capital
	Appreciation-Sales Tax Subordinate Lien) 6.07% 6/1/21		5,230,000		2,834,555
					81,940,359
State General Obligation Bonds – 10.81%
	California State 5.25% 11/1/40		3,795,000		3,632,612
	California State Revenue (Antic NTS)
	Series A-2 3.00% 6/28/11		6,500,000		6,544,070
	California State Various Purposes
	6.00% 4/1/38		4,060,000		4,197,593
	6.50% 4/1/33		2,570,000		2,795,312
	Connecticut State Economic Recovery Series A 5.00% 1/1/16		6,000,000		6,834,000
	Guam Government Series A 7.00% 11/15/39		4,295,000		4,487,846
	Maryland State & Local Facilities Loan
	Second Series 5.00% 8/1/16		4,000,000		4,653,760
	Series C 5.00% 11/1/18		8,550,000		10,100,115

16

		Principal amount		Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	North Carolina State Public Improvement
	Series A 5.00% 5/1/20	$	10,585,000	$	12,509,036
	Puerto Rico Commonwealth Public Improvement Series A
	5.125% 7/1/31		4,415,000		4,187,583
	5.25% 7/1/23		500,000		487,995
	5.50% 7/1/19 (NATL-RE)		5,000,000		5,194,350
	Virginia State Series D 5.00% 6/1/19		2,785,000		3,293,290
					68,917,562
Transportation Revenue Bonds – 9.74%
	Branson, Missouri Regional Airport Transportation
	Development District Revenue (Branson Airport Project)
	Series B 6.00% 7/1/37 (AMT)		1,500,000		557,175
	Dallas-Fort Worth, Texas International Airport Revenue
	Series A 5.50% 11/1/31 (NATL-RE) (FGIC) (AMT)		1,500,000		1,499,925
	Delaware Transportation Authority 5.00% 7/1/22		4,345,000		4,618,692
	Maryland State Economic Development Corporation Revenue
	(Transportation Facilities Project) Series A 5.75% 6/1/35		5,075,000		4,583,233
	New York State Thruway Authority General Revenue
	Series H 5.00% 1/1/19 (NATL-RE)		6,240,000		6,886,650
	North Texas Tollway Authority Revenue (First Tier)
	Series A 6.00% 1/1/24		3,345,000		3,532,588
	•Series E-3 5.75% 1/1/38		4,320,000		4,790,837
Ω	Pennsylvania Turnpike Commission Revenue Convertible
	Capital Appreciation Series B2 5.35% 12/1/30		8,500,000		6,104,360
	Phoenix, Arizona Civic Improvement Corporation Airport
	Revenue Junior Lien Series A 5.00% 7/1/26		1,800,000		1,810,566
	Port Authority of New York & New Jersey Special Project
	(JFK International Air Terminal)
	6.00% 12/1/42		4,735,000		4,615,205
	6.50% 12/1/28		5,500,000		5,621,990
	St. Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.625% 7/1/34		5,995,000		6,109,564
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien
	(LBJ Infrastructure) 7.00% 6/30/40		5,715,000		5,816,041
	(Mobility Partners) 6.875% 12/31/39		5,500,000		5,568,585
					62,115,411

17

Statements of net assets
Delaware Tax-Free USA Fund

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 3.81%
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.25% 11/1/39	$	5,500,000	$	5,664,395
	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		4,227,520
	Series A 5.25% 6/15/34		3,705,000		3,715,522
	New York State Environmental Facilities Corporation
	(State Revolving Foundations Master Financing)
	Series A 5.00% 8/15/16		5,245,000		6,088,291
	Tampa, Florida Water and Sewer Revenue
	6.00% 10/1/16 (AGM)		1,000,000		1,181,850
	Virgin Islands Water & Power Authority Water System
	Revenue 5.50% 7/1/17		510,000		510,653
	West Virginia State Water Development Authority Revenue
	(Loan Program III) Series A 6.375% 7/1/39 (AMBAC) (AMT)		2,890,000		2,899,971
					24,288,202
Total Municipal Bonds (cost $614,124,171)					615,979,173
Short-Term Investments – 3.48%
¤Variable Rate Demand Notes – 3.48%
	California Pollution Control Financing Authority Pollution
	Control Revenue Daily Refunding (Pacific Gas & Electric)
	Series F 0.17% 11/1/26 (LOC-JPMorgan Chase Bank)		1,500,000		1,500,000
	Maryland State Health & Higher Educational Facilities
	Authority Revenue (University of Maryland Medical
	System) Series A 0.25% 7/1/34 (LOC-Wachovia Bank)		1,500,000		1,500,000
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Children’s Hospital) Series N-4 0.21% 10/1/49
	(LOC-JPMorgan Chase Bank)		10,000,000		10,000,000
	(Harvard University) Series R 0.15% 11/1/49		3,300,000		3,300,000
	New York City, New York
	Series B-3 0.17% 8/15/17 (LOC-JPMorgan Chase Bank)		800,000		800,000
	Sub-Series A-7
	0.17% 8/1/20 (LOC-JPMorgan Chase Bank)		4,500,000		4,500,000
	0.17% 8/1/21 (LOC-JPMorgan Chase Bank)		600,000		600,000
Total Short-Term Investments (cost $22,200,000)					22,200,000

18

	Value
Total Value of Securities – 100.07%
(cost $636,324,171)	$	638,179,173
Liabilities Net of Receivables
and Other Assets – (0.07%)		(434,634		)
Net Assets Applicable to 58,645,027
Shares Outstanding – 100.00%	$	637,744,539
Net Asset Value – Delaware Tax-Free USA Fund
Class A ($600,692,820 / 55,241,776 Shares)			$10.87
Net Asset Value – Delaware Tax-Free USA Fund
Class B ($3,594,460 / 330,723 Shares)			$10.87
Net Asset Value – Delaware Tax-Free USA Fund
Class C ($28,077,291 / 2,581,482 Shares)			$10.88
Net Asset Value – Delaware Tax-Free USA Fund
Institutional Class ($5,379,968 / 491,046 Shares)			$10.96
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	642,172,250
Undistributed net investment income		66,895
Accumulated net realized loss on investments		(6,349,608		)
Net unrealized appreciation of investments		1,855,002
Total net assets	$	637,744,539

§	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 February 28, 2011. 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.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

19

Statements of net assets
Delaware Tax-Free USA 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
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)	$	10.87
Sales charge (4.50% of offering price) (B)		0.51
Offering price	$	11.38

(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.

20

Delaware Tax-Free USA Intermediate Fund February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 95.84%
Corporate Revenue Bonds – 9.25%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp. Project) 6.50% 5/1/17	$	2,315,000	$	2,383,362
	Brazos, Texas River Authority Pollution Control Revenue
	(Texas Utilities) 5.40% 5/1/29 (AMT)		1,000,000		270,730
•	Chesapeake, Virginia Economic Development Authority
	Pollution Control Revenue (Electric & Power Co. Project)
	Series A 3.60% 2/1/32		1,150,000		1,182,039
	Chesterfield County, Virginia Economic Development
	Authority Pollution Control Revenue (Virginia Electric &
	Power) Series A 5.00% 5/1/23		1,460,000		1,522,576
	Farmington, New Mexico (Ariz Public Services)
	Series A 4.70% 5/1/24		4,090,000		3,848,772
•	Gulf Coast Waste Disposal Authority, Texas Environmental
	Facilities Revenue (BP Products North America)
	2.30% 1/1/26		780,000		779,789
	2.30% 1/1/42		1,500,000		1,499,595
	Harris County, Texas Industrial Development Corporation
	Solid Waste Disposal Revenue (Deer Park Refining Project)
	5.00% 2/1/23		2,750,000		2,765,290
	Illinois Railsplitter Tobacco Settlement Authority
	5.25% 6/1/20		1,000,000		983,380
	6.25% 6/1/24		7,500,000		7,528,724
	Indianapolis, Indiana Airport Authority Revenue Special
	Facilities (Federal Express Corp. Project)
	5.10% 1/15/17 (AMT)		750,000		792,413
	Iowa Finance Authority Pollution Control Facilities Revenue
	(Interstate Power) 5.00% 7/1/14 (FGIC)		2,000,000		2,155,000
•	Maricopa County, Arizona Corporation Pollution Control
	Revenue (Public Service - Palo Verde Project)
	Series B 5.20% 6/1/43		6,000,000		5,943,059
	Maryland Economic Development Corporation Pollution
	Control Revenue
	(CNX Marine Terminals Inc.) 5.75% 9/1/25		2,050,000		1,927,656
	(Potomac Electric Project) 6.20% 9/1/22		1,780,000		2,019,072
	Memphis-Shelby County, Tennessee Airport Authority
	Special Facilities Revenue (Federal Express Corp. Project)
	5.05% 9/1/12		1,000,000		1,046,770

21

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Michigan State Strategic Fund Limited Obligation Revenue
	(Dow Chemical Project) Series B-2 6.25% 6/1/14	$	4,500,000	$	4,870,890
•	Mobile, Alabama Industrial Development Board Pollution
	Control Revenue (Alabama Power Co.)
	Series B 4.875% 6/1/34		2,840,000		3,012,644
	New Jersey Economic Development Authority Special
	Facilities Revenue (Continental Airlines, Inc. Project)
	6.625% 9/15/12 (AMT)		4,895,000		4,923,587
	Ohio State Air Quality Development Authority Revenue
	Environmental Improvement (First Energy)
	Series A
	5.70% 2/1/14		2,225,000		2,407,294
	5.70% 8/1/20		4,320,000		4,469,386
	Series C 5.625% 6/1/18		2,370,000		2,530,947
	(USX Project) 5.00% 11/1/15		1,000,000		1,029,490
•	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue
	(Exelon Generation Co. Project) Series A 5.00% 12/1/42		1,355,000		1,406,788
	(Shipping Port) Series A 3.375% 12/1/40		5,000,000		4,928,300
	Prattville, Alabama Industrial Development Board
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.70% 3/1/24 (AMT)		1,075,000		1,082,375
					67,309,928
Education Revenue Bonds – 5.83%
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/26		1,000,000		826,750
	California Statewide Communities Development Authority
	Student Housing Revenue (Irvine, LLC - UCI East
	Campus) 6.00% 5/15/23		3,150,000		3,229,254
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Series B 5.50% 10/1/20		960,000		907,920
	Clifton, Texas Higher Education Finance Corporation
	Revenue (Uplift Education) Series A 6.00% 12/1/30		1,100,000		962,885
	Connecticut State Health & Educational Facilities Authority
	Revenue (Yale University) Series A-1 5.00% 7/1/25		5,000,000		5,390,950

22

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Delaware County, Pennsylvania Industrial Development
	Authority Revenue (Chester Community Charter School)
	Series A 5.25% 8/15/30	$	3,315,000	$	2,796,401
	Fulton County, Georgia Development Authority
	Revenue (Molecular Science Building Project)
	5.25% 5/1/21 (NATLE-RE)		1,000,000		1,040,010
	Grand Traverse, Michigan Public School Academy Revenue
	5.00% 11/1/36		1,000,000		719,540
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 6.25% 6/15/20		1,180,000		1,138,806
	Massachusetts State Health & Educational Facilities
	Authority Revenue
	(Massachusetts Institution Technology) Series M 5.25% 7/1/20		3,000,000		3,608,580
	(Nichols College Project) Series C 6.125% 10/1/29		1,000,000		968,170
	•(Northeastern University) 4.125% 10/1/37		2,360,000		2,420,487
	Michigan Higher Education Facilities Authority Revenue
	(Kalamazoo College Project) 5.50% 12/1/19		500,000		514,120
	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		1,626,227
	New York State Dormitory Authority
	(Brooklyn Law School) Series A 5.50% 7/1/18 (RADIAN)		1,000,000		1,050,550
	(Non State Supported Debt - Rockefeller University)
	Series A 5.00% 7/1/27		1,055,000		1,110,409
	(Non State Supported Debt - St. Joseph’s College)
	5.25% 7/1/25		1,000,000		1,003,130
	Ohio State Higher Educational Facility Revenue
	(John Carroll University) 5.50% 11/15/18		335,000		352,387
	Ohio State University General Receipts Revenue
	Series B 5.25% 6/1/21		180,000		193,552
	Troy, New York Capital Resource Corporation Revenue
	(Rensselaer Polytechnic) Series B 5.00% 9/1/18		2,500,000		2,741,750
	University of California Series A 5.125% 5/15/20 (AMBAC)		210,000		224,727
	University of Minnesota Series A 5.00% 12/1/17		5,040,000		5,871,650
	University of Oklahoma Research Facilities Revenue
	5.00% 3/1/23 (AMBAC)		1,065,000		1,080,602

23

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	University of Virginia General Revenue Series B
	5.00% 6/1/20	$	1,250,000	$	1,312,613
	5.00% 6/1/21		1,250,000		1,306,200
					42,397,670
Electric Revenue Bonds – 2.26%
	California State Department Water Resources Power
	Supply Revenue Series L 5.00% 5/1/19		6,000,000		6,813,720
	Metropolitan Government Nashville & Davidson County,
	Tennessee Electric Revenue Series B 5.50% 5/15/14		1,000,000		1,128,180
	Orlando, Florida Utilities Commission Water & Electric
	Revenue 5.25% 10/1/20		555,000		574,103
	Rochester, Minnesota Electric Utilities Revenue
	Series C 5.00% 12/1/18 (NATL-RE)		2,000,000		2,246,780
	South Carolina State Public Service Authority Revenue
	Series A 5.125% 1/1/21 (AGM)		1,000,000		1,055,820
	Vernon, California Electric System Revenue
	Series A 5.125% 8/1/21		4,500,000		4,630,365
					16,448,968
Healthcare Revenue Bonds – 9.33%
	Allegheny County, Pennsylvania Municipal Development
	Authority Revenue (University of Pittsburgh Medical
	Center) Series A 5.00% 9/1/14		4,000,000		4,416,920
	Berks County, Pennsylvania Hospital Authority Revenue
	(Reading Hospital & Medical Center Project)
	Series A-3 5.25% 11/1/24		4,405,000		4,562,963
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29		2,250,000		2,458,710
	California Municipal Finance Authority Certificates of
	Participation
	(Community Hospitals Center) 5.25% 2/1/24		1,350,000		1,252,895
	(Kaiser Permanente) Series A 5.00% 4/1/19		5,325,000		5,592,101
	Cleveland-Cuyahoga County, Ohio Port Authority Revenue
	(Saint Clarence - Geac) Series A 6.125% 5/1/26		715,000		595,545
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Social Ministries)
	6.25% 1/1/24		2,625,000		2,670,229
	Cuyahoga County, Ohio Revenue (Cleveland Clinic
	Health System) Series A 6.00% 1/1/21		1,000,000		1,072,800

24

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Dauphin County, Pennsylvania General Authority Health
	System Revenue (Pinnacle Health System Project)
	Series A 6.00% 6/1/29	$	3,400,000	$	3,366,170
	Georgia Medical Center Hospital Authority Revenue
	(Spring Harbor Green Island Project) 5.25% 7/1/37		2,300,000		1,727,944
	Lycoming County, Pennsylvania Authority Health System
	Revenue (Susquehanna Health System Project)
	Series A 5.50% 7/1/28		2,500,000		2,353,350
•	Maryland State Health & Higher Education Facilities
	Authority Revenue (John Hopkins Health Systems)
	5.00% 5/15/46		790,000		851,423
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Caregroup)
	Series E-2 5.375% 7/1/21		1,970,000		2,046,672
	Michigan State Hospital Finance Authority Revenue
	(Oakwood Obligation Group) 5.50% 11/1/14		2,230,000		2,356,441
	Minneapolis, Minnesota Health Care System Revenue
	(Fairview Health) Series A 6.375% 11/15/23		3,710,000		4,097,769
	Minneapolis, Minnesota Revenue (National Marrow Donor
	Program Project)
	5.00% 8/1/16		4,720,000		5,083,865
	5.00% 8/1/18		2,500,000		2,642,375
	New York State Dormitory Authority Revenue Non State
	Supported Debt (Orange Regional Medical Center)
	6.50% 12/1/21		2,000,000		2,015,460
	North Carolina Medical Care Commission Health Care
	Facilities Revenue (First Mortgage - Presbyterian Homes)
	5.40% 10/1/27		780,000		679,318
	Ohio State Higher Educational Facilities Commission Revenue
	(Cleveland Clinic Health System Obligation Group) Series A
	5.00% 1/1/17		2,000,000		2,187,000
	5.00% 1/1/18		1,000,000		1,093,060
	Scottsdale, Arizona Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.00% 9/1/19		3,065,000		3,221,499
	South Carolina Jobs - Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.50% 8/1/26		5,000,000		4,728,350

25

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Nicollet Health Services) Series C 5.50% 7/1/18	$	4,240,000	$	4,562,706
	St. Mary Hospital Authority, Pennsylvania Health System
	Revenue (Catholic Health East)
	Series A 5.25% 11/15/16		1,200,000		1,261,500
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/25		1,000,000		931,480
					67,828,545
Housing Revenue Bonds – 0.64%
	Puerto Rico Housing Finance Authority Subordinate
	(Capital Fund Modernization) 5.50% 12/1/16		4,120,000		4,646,618
					4,646,618
Lease Revenue Bonds – 3.26%
	Capital Trust Agency Florida Revenue (Fort Lauderdale/
	Cargo Acquisition Project) 5.75% 1/1/32 (AMT)		1,750,000		1,447,513
	Commonwealth of Pennsylvania (Department of
	Corrections) Series A 4.00% 10/1/24		3,910,000		3,592,860
	Golden State, California Tobacco Securitization Corporation
	Settlement Revenue Refunding Asset-Backed Series A
	5.00% 6/1/18		1,170,000		1,169,988
	5.00% 6/1/21 (AMBAC)		1,000,000		979,510
	Michigan State Building Authority Revenue Series I
	5.00% 10/15/24		2,860,000		2,863,689
	5.50% 10/15/18		2,050,000		2,094,936
	New Jersey Economic Development Authority (School
	Facilities Construction) Series EE 5.00% 9/1/18		6,875,000		7,321,668
	New York State Municipal Bond Bank Agency Special
	School Purpose Revenue Series C 5.25% 6/1/22		1,000,000		1,037,600
•	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series J 5.00% 7/1/28		1,000,000		1,029,740
	Tobacco Settlement Financing New York Revenue
	(Asset-Backed) Series B 5.00% 6/1/12		2,060,000		2,166,935
					23,704,439
Local General Obligation Bonds – 5.60%
	Chicago, Illinois Board of Education Refunding Dedicated
	Revenue Series B 5.00% 12/1/23 (AMBAC)		3,500,000		3,509,695
	Chicago, Illinois Modern Schools Across Chicago
	Series J 5.00% 12/1/23 (AMBAC)		2,865,000		2,822,312

26

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Dallas, Texas 5.125% 2/15/15	$	3,000,000	$	3,396,540
	Fairfax County, Virginia Refunding &
	Public Improvement Series A
	5.00% 4/1/17		4,000,000		4,681,440
	5.25% 4/1/14		3,500,000		3,943,695
	Henrico County, Virginia Refunding Public Improvement
	5.00% 7/15/19		4,000,000		4,730,840
	Houston, Texas Refunding & Public Improvement
	Series A 5.00% 3/1/15		3,480,000		3,924,013
	Lansing, Michigan Community College (College Building & Site)
	5.00% 5/1/21 (NATLE-RE)		1,325,000		1,404,964
	Los Angeles, California Unified School District
	(Election 1997) Series F 5.00% 7/1/21 (FGIC)		2,880,000		3,032,726
	(Election 2004) Series G 5.00% 7/1/13 (AMBAC)		2,000,000		2,157,320
	Middlesex County, New Jersey Improvement Authority
	Revenue (County Guaranteed Open Space Trust)
	5.25% 9/15/20		1,000,000		1,086,240
	New York City, New York
	Series A-1 5.00% 8/1/19		3,500,000		3,869,810
	Series G 5.25% 8/1/15		1,000,000		1,091,490
	Series I 5.00% 8/1/21		1,000,000		1,057,460
	Series J 5.50% 6/1/23		15,000		15,980
					40,724,525
§Pre-Refunded/Escrowed to Maturity Bonds – 4.86%
	Benton & Linn Counties, Oregon School District #509J
	5.00% 6/1/21-13 (AGM)		1,000,000		1,094,940
	California State Economic Recovery Series A 5.25% 7/1/14		225,000		255,908
	Cook County, Illinois Series A 5.375% 11/15/21-11 (FGIC)		2,160,000		2,183,414
	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		1,120,470
	5.25% 2/15/33-14		3,000,000		3,361,410
	5.50% 2/15/23-14		1,000,000		1,127,740
	Illinois Educational Facilities Authority Student Housing
	Revenue (Educational Advancement -
	University Center Project) 6.00% 5/1/22-12		750,000		805,920

27

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Pre-Refunded/Escrowed to Maturity Bonds (continued)
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Lancaster General Hospital Project)
	5.75% 3/15/21-13	$	1,000,000	$	1,116,800
	Lunenburg County, Virginia Series B 5.25% 2/1/29-13 (NATL-RE)		715,000		785,192
	Miami-Dade County, Florida Educational Facilities Authority
	Revenue (University of Miami) Series A
	5.00% 4/1/34-14 (AMBAC)		3,500,000		3,899,595
	Michigan State Building Authority Revenue
	(Facilities Program) Series I
	5.00% 10/15/24-11		140,000		143,977
	5.50% 10/15/18-11		125,000		128,945
	Minneapolis, Minnesota Health Care System Revenue
	(Allina Health Systems) Series A 5.75% 11/15/32-12		500,000		544,285
	New Jersey State Educational Facilities Authority Revenue
	(Georgian Court College Project) Series C 6.50% 7/1/33-13		500,000		567,670
	New Jersey State Transportation Trust Fund Authority
	(Transportation System) Series C 5.50% 6/15/22-13		1,700,000		1,886,031
	New York City, New York Series J 5.50% 6/1/23-13		985,000		1,091,488
	North Texas Health Facilities Development Corporation
	Hospital Revenue (United Regional Health Care System,
	Inc. Project) 6.00% 9/1/23-13		1,000,000		1,123,500
•	Ohio State Higher Educational Facility Revenue Adjustable
	Medium Term (Kenyon College Project) 4.70% 7/1/37-13		1,000,000		1,088,700
	Ohio State University General Receipts (Ohio State
	University) Series B 5.25% 6/1/21-13		820,000		898,294
	Pennsylvania State Higher Educational Facilities
	Authority College & University Revenue
	(Geneva College Project) 6.125% 4/1/22-12		1,000,000		1,060,760
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series J 5.50% 7/1/21-14		1,000,000		1,140,240
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I 5.50% 7/1/23-14		2,000,000		2,272,720
•	Puerto Rico Sales Tax Financing Corporation Sales Tax
	Revenue Series A 5.00% 8/1/39-11		4,500,000		4,589,191
	Southcentral, Pennsylvania General Authority Revenue
	(Welllspan Health Obligated Project)
	5.625% 5/15/26		180,000		183,519
	5.625% 5/15/26-11		820,000		837,523

28

		Principal amount		Value
Municipal Bonds (continued)
Pre-Refunded/Escrowed to Maturity Bonds (continued)
	University of California Revenue
	Series A 5.125% 5/15/20-13 (AMBAC)	$	40,000	$	43,663
	University of North Carolina Revenue (Chapel Hill)
	Series A 5.375% 12/1/14-11		2,000,000		2,026,260
					35,378,155
Resource Recovery Revenue Bonds – 0.29%
	Connecticut Resources Recovery Authority (Covanta)
	Series A 4.00% 11/15/14 (AMT)		1,000,000		1,059,200
	Pennsylvania Economic Development Financing Authority
	Resource Recovery Revenue (Subordinate Colver Project)
	Series G 5.125% 12/1/15 (AMT)		1,100,000		1,033,307
					2,092,507
Special Tax Revenue Bonds – 11.20%
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.00% 9/1/16		1,200,000		1,110,948
	Brooklyn Arena Local Development Corporation New York
	Pilot Revenue (Barclays Center Project) 6.50% 7/15/30		5,500,000		5,607,140
	California State Economic Recovery Series A
	5.25% 7/1/14		775,000		859,855
	5.25% 7/1/21		2,740,000		3,052,689
	Casa Grande, Arizona Excise Tax Revenue
	5.00% 4/1/22 (AMBAC)		1,600,000		1,627,168
	Columbia County, Georgia Sales Tax 5.00% 4/1/16		1,265,000		1,452,119
	Dallas, Texas Convention Center Hotel Development
	Revenue Series A
	5.00% 1/1/24		3,420,000		3,467,401
	5.25% 1/1/23		5,375,000		5,615,101
	Guam Government Limited Obligation Revenue
	(Section 30) Series A
	5.375% 12/1/24		1,750,000		1,716,523
	5.625% 12/1/29		1,185,000		1,169,358
	Hampton, Virginia Convention Center Revenue
	5.25% 1/15/23 (AMBAC)		1,000,000		1,021,780

29

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Louisiana State Citizens Property Insurance Corporation
	Assessment Revenue Series C-2
	6.75% 6/1/26 (ASSURED GTY)	$	3,600,000	$	4,103,208
	Middlesex County, New Jersey Improvement Authority
	Senior Revenue (Heldrich Center Hotel/Conference
	Project) Series A 5.00% 1/1/32		1,000,000		462,870
@	Modesto, California Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36		1,500,000		1,111,275
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax)
	5.00% 6/15/11 (FGIC)		2,750,000		2,777,940
	5.50% 6/15/31		555,000		478,871
	5.625% 6/15/18		510,000		510,066
•	New York City, New York Transitional Finance Authority
	Future Tax Secured Series A 5.50% 11/1/26		1,000,000		1,030,960
	New York State Local Government Assistance Corporation
	Refunding Subordinate Lien Series A
	5.00% 4/1/17		8,615,000		9,951,702
	5.00% 4/1/20		3,360,000		3,884,798
	New York State Urban Development Corporation
	(Service Contract) Series A-1 5.00% 1/1/18		5,785,000		6,472,837
	Puerto Rico Sales Tax Financing Corporation
	Sales Tax Revenue
	Series A 6.125% 8/1/29		2,500,000		2,569,375
	Series C 6.50% 8/1/35		6,500,000		6,845,735
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement (Francis
	Place Redevelopment Project) 5.625% 11/1/25		1,000,000		845,770
@	St. Joseph, Missouri Industrial Development Authority Tax
	Increment Revenue (Shoppes at North Village Project)
	Series A 5.10% 11/1/19		250,000		232,278
	Series B 5.375% 11/1/23		1,000,000		861,780
	Virgin Islands Public Finance Authority Revenue (Senior
	Lien Matching Fund Loan) Series A 5.25% 10/1/22		1,785,000		1,798,834
	Washington State Motor Vehicle Fuel Tax
	Series B 5.00% 7/1/16		4,250,000		4,891,623

30

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue
	^(Capital Appreciation-Sales Tax Subordinate Lien)
	6.07% 6/1/21	$	5,230,000	$	2,834,555
	(Sales Tax-2nd Lien-Area B) 5.00% 12/1/20		1,470,000		1,488,507
	Wyoming State Loan & Investment Board Facilities
	Revenue 5.00% 10/1/24		1,550,000		1,594,795
					81,447,861
State General Obligation Bonds – 25.21%
	California State 5.25% 11/1/17		1,000,000		1,072,570
	California State Revenue (Antic NTS)
	Series A-2 3.00% 6/28/11		7,000,000		7,047,460
	California State Various Purpose 5.00% 10/1/18		5,000,000		5,546,000
	California Statewide Communities Development Authority
	Revenue (Purchase Proposition 1A
	Receivables Program) 5.00% 6/15/13		2,690,000		2,844,567
	Connecticut State Economic Recovery Series A
	5.00% 1/1/16		7,700,000		8,770,300
	Connecticut State Series C 5.00% 11/1/24		2,000,000		2,165,300
	Georgia State
	5.00% 8/1/12		3,125,000		3,324,094
	5.00% 7/1/17		4,810,000		5,639,052
	Series D 5.00% 7/1/11		6,865,000		6,975,664
	Guam Government Series A 7.00% 11/15/39		1,560,000		1,630,044
	Hawaii State Series DR 5.00% 6/1/15		7,000,000		7,934,080
	Illinois State Refunding Series B 5.00% 1/1/13		3,475,000		3,613,722
	Maryland State Series B 5.00% 3/1/18		1,930,000		2,272,208
	Maryland State & Local Facilities Loan Capital Improvement
	First Series 5.00% 3/15/19		3,675,000		4,187,846
	Second Series
	5.00% 7/15/14		975,000		1,098,201
	5.00% 8/1/17		1,500,000		1,727,325
	Series B 5.00% 3/1/21		7,700,000		8,940,085
	Series C 5.00% 11/1/17		2,750,000		3,232,048
	Massachusetts State Consolidated Loan
	Series A 5.25% 8/1/13		5,000,000		5,502,750
	Series C 5.50% 11/1/15		4,090,000		4,753,725

31

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Minnesota State 5.00% 6/1/14	$	900,000	$	1,010,268
	Minnesota State Various Purpose Series A 5.00% 8/1/19		8,020,000		9,465,765
	Mississippi State Series A 5.00% 10/1/17		4,860,000		5,602,025
	North Carolina State Public Improvement Series A
	5.00% 3/1/12		4,000,000		4,186,040
	5.00% 3/1/15		1,200,000		1,363,896
	North Carolina State Refunding Series A
	5.00% 3/1/16		6,000,000		6,937,080
	5.00% 3/1/17		3,000,000		3,506,400
	Series B 5.00% 4/1/15		4,000,000		4,554,400
	Ohio State
	Series A 5.00% 6/15/13		3,750,000		4,090,650
	Series D 5.00% 9/15/14		3,500,000		3,929,730
	Pennsylvania State
	5.50% 2/1/13		3,200,000		3,487,104
	Second Series 5.00% 7/1/20		2,300,000		2,676,326
	Series A
	5.00% 8/1/13		4,000,000		4,387,000
	5.00% 5/1/21		10,000,000		11,442,299
•	Puerto Rico Commonwealth Government Development Bank
	4.75% 12/1/15 (NATL-RE)		4,765,000		4,855,916
	Puerto Rico Commonwealth Public Improvement Series A
	5.00% 7/1/16 (ASSURED GTY)		2,110,000		2,234,406
	5.25% 7/1/22		3,470,000		3,426,035
	5.25% 7/1/23		1,125,000		1,097,989
	5.50% 7/1/17		4,415,000		4,621,225
•	Puerto Rico Commonwealth Series A 5.00% 7/1/30		1,000,000		1,029,740
•	Puerto Rico Public Finance Corporation Commonwealth
	Appropriation (LOC-Puerto Rico Government Bank)
	Series A 5.75% 8/1/27		1,000,000		1,024,020
	Virginia State
	5.00% 6/1/23		2,000,000		2,206,080
	Series D 5.00% 6/1/19		5,715,000		6,758,045
	Washington State Various Purpose Series A 5.00% 7/1/16		1,000,000		1,150,970
					183,320,450

32

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 12.56%
	Broward County, Florida Airport System Revenue
	Series O 5.375% 10/1/29	$	2,000,000	$	2,015,640
	Charlotte, North Carolina Airport Revenue
	(Charlotte Douglas) Series A
	5.00% 7/1/13		2,375,000		2,568,444
	5.00% 7/1/15		750,000		830,250
	Chicago, Illinois O’Hare International Airport Revenue
	General-Airport-Third Lien Series A-2
	5.75% 1/1/20 (AGM) (AMT)		1,000,000		1,039,010
	Dallas-Fort Worth, Texas International Airport Revenue Series A
	5.00% 11/1/22		680,000		703,011
	5.00% 11/1/23		750,000		767,040
	5.00% 11/1/24		400,000		406,628
	Delaware Transportation Authority Series A 5.00% 7/1/17		5,475,000		6,344,594
	Idaho Housing & Finance Association Grant Revenue
	(Antic Federal Highway Transportation)
	Series A 5.25% 7/15/21 (ASSURED GTY)		2,760,000		3,054,078
	Maryland State Economic Development Revenue
	(Transportation Facilities Project)
	Series A 5.375% 6/1/25		2,535,000		2,330,780
	Metropolitan, New York Transportation Authority Revenue
	Series A 5.00% 11/15/18		2,500,000		2,737,125
	Series C 6.50% 11/15/28		2,860,000		3,191,588
	Metropolitan, Washington D.C. Airport Authority Systems
	Revenue Series A 5.50% 10/1/19 (NATL-RE) (FGIC) (AMT)		1,000,000		1,045,220
	Minneapolis - St. Paul, Minnesota Metropolitan Airports
	Commission Series A 5.00% 1/1/22 (AMBAC)		5,000,000		5,257,900
	Missouri State Highways & Transportation Commission
	State Road Revenue Second Lien 5.25% 5/1/23		1,940,000		2,142,730
	New York State Thruway Authority Revenue
	(General Highway and Bridge Trust Fund)
	Series B 5.25% 4/1/13 (AMBAC)		3,300,000		3,571,293
	North Texas Tollway Authority Revenue System (First Tier)
	Series A 6.00% 1/1/20		3,925,000		4,348,468
	•Series E-3 5.75% 1/1/38		3,750,000		4,158,713

33

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Pennsylvania State Turnpike Commission Revenue
	Series A 5.25% 12/1/20 (AMBAC)	$	1,230,000	$	1,351,401
	Phoenix, Arizona Civic Improvement Airport Revenue
	Series A 5.00% 7/1/26		7,500,000		7,544,026
	Port Authority of New York & New Jersey Special Project
	(JFK International Air Terminal) 6.50% 12/1/28		7,000,000		7,155,260
	Sacramento County, California Airport System Revenue
	5.00% 7/1/24		1,425,000		1,449,382
	(PFC/Grant) Series D 5.50% 7/1/28		2,020,000		2,059,531
	San Francisco City & County Airports Commission
	Series B 5.00% 5/1/15		4,000,000		4,385,800
	St. Louis, Missouri Airport Revenue (Lambert - St. Louis
	International) Series A-1 6.125% 7/1/24		3,780,000		3,960,230
	Texas Private Activity Bond Surface Transportation
	Corporate Senior Lien Revenue (Mobility
	Partners) 7.50% 12/31/31		3,565,000		3,791,556
	Texas State Transportation Commission Highway Fund
	Revenue (First Tier) 5.00% 4/1/18		1,700,000		1,940,584
	Triborough, New York Bridge & Tunnel Authority Revenue
	Series A 5.00% 11/15/17		1,720,000		1,971,946
	•Series B-1 5.00% 11/15/25		4,000,000		4,360,040
	•Series B-3 5.00% 11/15/38		1,800,000		2,017,422
	Virginia Commonwealth Transportation Board (Capital
	Projects) Series A-1 5.00% 5/15/16		2,000,000		2,300,000
	Virginia Port Authority Commonwealth Port Fund Revenue
	Resolution 5.00% 7/1/12 (AMT)		500,000		525,170
					91,324,860
Water & Sewer Revenue Bonds – 5.55%
	Arizona Water Infrastructure Finance Authority Revenue
	(Water Quality) Series A 5.00% 10/1/21		2,430,000		2,711,904
	Atlanta, Georgia Water & Wastewater Revenue
	Series A 6.00% 11/1/25		2,925,000		3,168,214
	Series B 5.50% 11/1/23 (AGM)		3,000,000		3,206,640
	Florida Water Pollution Control Financing
	Corporation Revenue (Water Pollution Control)
	Series A 5.00% 1/15/25		5,000,000		5,298,149
	King County, Washington Sewer Revenue Refunding
	Series B 5.00% 1/1/14 (NATL-RE)		3,500,000		3,877,160

34

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds (continued)
	Massachusetts State Water Pollution Abatement Trust
	5.00% 8/1/16	$	2,170,000	$	2,514,922
	New York City, New York Municipal Water Finance
	Authority Water & Sewer System Series B
	5.00% 6/15/21 (AMBAC)		2,085,000		2,281,741
	New York State Environmental Facilities Corporation
	Revenue (State Clean Water & Drinking
	Water Revolving Foundation)
	Series A 5.00% 6/15/22		1,405,000		1,550,277
	Series D 5.00% 9/15/23		3,360,000		3,638,477
	Series K 5.50% 6/15/15		3,500,000		4,071,235
	Portland, Oregon Sewer System Revenue (First Lien)
	Series A 5.00% 6/15/18		4,000,000		4,617,240
	San Francisco City & County Public Utilities Commission
	Series D 5.00% 11/1/16		3,000,000		3,412,800
					40,348,759
Total Municipal Bonds (cost $685,663,850)					696,973,285
Short-Term Investments – 2.63%
¤Variable Rate Demand Notes – 2.63%
	California Infrastructure & Economic Development Bank
	Revenue (Los Angeles Museum)
	Series B 0.17% 9/1/37 (LOC-Wells Fargo Bank)		1,000,000		1,000,000
	Maryland State Health & Higher Educational Facilities
	Authority Revenue (Suburban Hospital)
	0.22% 7/1/29 (LOC-PNC Bank)		2,000,000		2,000,000
	Massachusetts State Department of Transportation
	Metropolitan Highway System Revenue Senior
	Series A-1 0.26% 1/1/37 (LOC-Citibank)		700,000		700,000
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Harvard University)
	Series R 1.50% 11/1/49		5,100,000		5,100,000
	Minneapolis & St. Paul, Minnesota Housing &
	Redevelopment Authority Health Care
	Revenue (Allina Health System) Series B-1
	0.20% 11/15/35 (LOC-JPMorgan Chase Bank)		1,300,000		1,300,000

35

Statements of net assets
Delaware Tax-Free USA Intermediate Fund

		Principal amount		Value
Short-Term Investments (continued)
Variable Rate Demand Notes (continued)
	New York City, New York
	Series C 0.17% 10/1/23 (LOC-JPMorgan Chase Bank)	$	1,600,000	$	1,600,000
	Sub-Series A-7 0.17% 8/1/20 (LOC-JPMorgan Chase Bank)		2,700,000		2,700,000
	New York City, New York City Trust for Cultural
	Resources Revenue (Metropolitan Museum)
	Series A1 0.22% 10/1/36		3,700,000		3,700,000
	Robbinsdale, Minnesota Revenue (North Memorial)
	Series A-4 0.19% 5/1/33 (LOC-Wells Fargo Bank)		1,000,000		1,000,000
Total Short-Term Investments (cost $19,100,000)					19,100,000
Total Value of Securities – 98.47%
	(cost $704,763,850)				716,073,285
Receivables and Other Assets
	Net of Liabilities – 1.53%				11,144,767
Net Assets Applicable to 63,354,708
	Shares Outstanding – 100.00%			$	727,218,052
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class A ($443,795,187 / 38,775,135 Shares)				$11.45
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class B ($355,949 / 31,130 Shares)				$11.43
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Class C ($61,281,319 / 5,357,103 Shares)				$11.44
Net Asset Value – Delaware Tax-Free USA Intermediate Fund
	Institutional Class ($221,785,597 / 19,191,340 Shares)				$11.56
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)				$	729,549,802
Undistributed net investment income					16,226
Accumulated net realized loss on investments					(13,657,411	)
Net unrealized appreciation of investments					11,309,435
Total net assets				$	727,218,052

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.”
^	Zero coupon security. The rate shown is the yield at the time of purchase.
•	Variable rate security. The rate shown is the rate as of February 28, 2011. Interest rates reset periodically.
@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $2,205,333, which represented 0.30% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

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)	$	11.45
Sales charge (2.75% of offering price) (B)		0.32
Offering price	$	11.77

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

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

37

Statements of net assets
Delaware National High-Yield Municipal Bond Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 91.28%
Corporate Revenue Bonds – 17.51%
	Allegheny County, Pennsylvania Industrial Development
	Authority Revenue (Environmental Improvement -
	U.S. Steel Corp. Project) 6.875% 5/1/30	$	1,000,000	$	1,016,170
•	Brazos, Texas River Authority Pollution Control Revenue
	(TXU Energy Co. Project)
	Series B 6.30% 7/1/32 (AMT)		1,000,000		270,610
	Buckeye, Ohio Tobacco Settlement Financing Authority
	Asset-Backed Series A-2
	5.875% 6/1/47		1,500,000		999,210
	6.50% 6/1/47		4,505,000		3,289,685
	Cass County, Texas Industrial Development Corporation
	Environmental Improvement Revenue (International
	Paper Co. Project) Series A 6.00% 9/1/25 (AMT)		1,000,000		1,002,410
	Chicago, Illinois O’ Hare International Airport Special
	Facilities Revenue (American Airlines Inc. Project)
	5.50% 12/1/30		2,130,000		1,624,359
	Cloquet, Minnesota Pollution Control Revenue
	(Potlatch Corp. Project) 5.90% 10/1/26		750,000		673,778
	Columbus County, North Carolina Industrial Facilities &
	Pollution Control Financing (International Paper Co. Project)
	Series A 5.70% 5/1/34		1,000,000		974,820
	Cook County, Illinois Revenue (NaviStar International –
	Recovery Zone Facility) 6.50% 10/15/40		1,000,000		1,014,180
	De Soto Parish, Louisiana Environmental Improvement
	Revenue (International Paper Co. Project)
	Series A 6.35% 2/1/25 (AMT)		1,650,000		1,665,312
	Delaware State Economic Development Authority Revenue
	Exempt Facility (Indian River Power) 5.375% 10/1/45		1,000,000		874,950
	Golden State, California Tobacco Securitization Settlement
	Revenue Refunding Asset-Backed Senior Notes
	Series A-1 5.75% 6/1/47		2,895,000		1,933,165
	Gulf Coast, Texas Waste Disposal Authority Revenue
	(Valero Energy Corp. Project) 6.65% 4/1/32 (AMT)		1,000,000		1,001,220
	Hawaii State Department Budget & Finance Special
	Purpose Revenue (Hawaiian Electric Co. Subsidiary)
	6.50% 7/1/39		970,000		957,157
	Illinois Railsplitter Tobacco Settlement Authority
	6.00% 6/1/28		1,000,000		980,950

38

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Indiana State Finance Authority Environmental Revenue
	(U.S. Steel Corp.) 6.00% 12/1/26	$	1,000,000	$	993,450
	Louisiana Local Government Environmental Facilities &
	Community Development Authority Revenue
	(Westlake Chemical Corp.) Series A-1 6.50% 11/1/35		1,000,000		1,021,470
	Love Field Airport Modernization Corporation,
	Texas Special Facilities Revenue
	(Southwest Airlines Co. Project) 5.25% 11/1/40		1,000,000		895,270
	Maryland Economic Development Corporation Facilities
	Revenue (CNX Marine Terminals Inc.) 5.75% 9/1/25		1,530,000		1,438,690
	Michigan Tobacco Settlement Finance Authority Revenue
	Asset-Backed Series A 6.00% 6/1/48		555,000		378,982
	Mississippi Business Finance Corporation Pollution
	Control Revenue (System Energy Resources, Inc. Project)
	5.90% 5/1/22		900,000		887,985
	M-S-R Energy Authority, California Gas Revenue
	Series C 6.50% 11/1/39		1,000,000		1,039,870
	New Jersey Economic Development Authority Special
	Facility Revenue (Continental Airlines Inc. Project)
	6.40% 9/15/23 (AMT)		1,000,000		962,480
•	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		1,023,060
	(JetBlue Airways Corp. Project) 5.125% 5/15/30 (AMT)		1,000,000		807,600
	New York Liberty Development Corporation Revenue
	Second Priority (Bank of America Tower) Class Z
	5.625% 7/15/47		1,000,000		960,380
	Ohio County, Kentucky Pollution Control Revenue (Big
	Rivers Electric Corp. Project) Series A 6.00% 7/15/31		1,250,000		1,221,338
	Pennsylvania Economic Development Financing Authority
	Exempt Facilities Revenue (Allegheny Energy Supply Co.)
	7.00% 7/15/39		1,000,000		1,076,610
	Petersburg, Indiana Pollution Control Revenue
	(Indianapolis Power & Light Co. Project)
	6.375% 11/1/29 (AMT)		1,000,000		1,003,940
	Phenix City, Alabama Industrial Development Board
	Environmental Improvement Revenue (Mead Westvaco
	Corp. Project) Series A 6.35% 5/15/35 (AMT)		500,000		480,095

39

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

		Principal amount		Value
Municipal Bonds (continued)
Corporate Revenue Bonds (continued)
	Pima County, Arizona Industrial Development Authority
	Industrial Revenue (Tucson Electric Power Project 1983)
	Series A 5.25% 10/1/40	$	1,000,000	$	897,310
	Salt Verde Financial Corporation, Arizona Gas Revenue
	Senior 5.00% 12/1/37		1,000,000		842,990
	Sweetwater County, Wyoming Solid Waste Disposal
	Revenue (FMC Corp. Project) 5.60% 12/1/35 (AMT)		1,000,000		945,090
	Toledo, Lucas County, Ohio Port Authority Development
	Revenue (Toledo Express Airport Project)
	Series C 6.375% 11/15/32 (AMT)		1,000,000		919,470
					36,074,056
Education Revenue Bonds – 19.98%
	Arlington Higher Education Finance
	(Arlington Classics Academy) 7.65% 8/15/40		1,000,000		978,790
	Bowling Green, Ohio Student Housing Revenue CFP I
	(State University Project) 6.00% 6/1/45		1,250,000		1,136,000
	California Statewide Communities Development Authority
	Revenue (California Baptist University Project)
	Series A 5.50% 11/1/38		1,000,000		820,660
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40		1,000,000		877,120
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)		1,000,000		888,830
	Chattanooga, Tennessee Health Educational & Housing
	Facilities Board Revenue (CDFI Phase I, LLC Project)
	Subordinate Series B 6.00% 10/1/35		1,500,000		1,299,945
	Clifton, Texas Higher Education Finance Corporation
	Revenue (Uplift Education) Series A 6.25% 12/1/45		1,000,000		851,460
	Delaware County, Pennsylvania Industrial Development
	Authority Charter School Revenue (Chester Community
	Charter School) Series A 6.125% 8/15/40		2,000,000		1,796,520
	Gainesville, Georgia Redevelopment Authority Educational
	Facilities Revenue (Riverside Military Academy Project)
	5.125% 3/1/37		1,850,000		1,330,853
	Idaho Housing & Finance Association Nonprofit Facilities
	Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		1,000,000		1,087,300

40

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Indiana State Finance Authority Revenue Educational
	Facilities (Drexel Foundation - Thea Bowman Academy
	Charter School) Series A 7.00% 10/1/39	$	1,000,000	$	953,760
	Iowa Higher Education Loan Authority Revenue
	(Private College Facilities) 6.00% 9/1/39		1,500,000		1,512,960
	Marietta, Georgia Development Authority Revenue
	(Life University Income Project) 7.00% 6/15/39		1,000,000		935,940
	Maryland State Economic Development Corporation
	Student Housing Revenue (University of Maryland
	College Park Projects) 5.75% 6/1/33		930,000		890,549
	Maryland State Health & Higher Educational Facilities
	Authority Revenue
	(Patterson Park Public Charter School)
	Series A 6.125% 7/1/45		1,000,000		891,360
@	(Washington Christian Academy Project)
	Series A 5.50% 7/1/38		1,170,000		467,953
	Massachusetts Health & Educational Facilities
	Authority Revenue
	(Nichols College Project) Series C 6.125% 10/1/29		1,000,000		968,170
	(Springfield College) 5.625% 10/15/40		1,000,000		978,060
	Michigan Finance Authority Educational Facilities Revenue
	(St. Catherine Siena) Series A 8.50% 10/1/45		1,000,000		1,059,790
	Michigan Finance Authority Limited Obligation Revenue
	(Public School Academy)
	(Old Redford) Series A 6.50% 12/1/40		1,000,000		927,110
	(University Learning) 7.50% 11/1/40		2,000,000		2,006,500
	Michigan Public Educational Facilities Authority Revenue
	(Limited-Obligation-Landmark Academy) 7.00% 12/1/39		1,000,000		944,560
	Minnesota Higher Education Facilities Authority Revenue
	(Bethel University) Series 6-R 5.50% 5/1/37		1,000,000		878,290
	New Jersey Economic Development Authority Revenue
	(Provident Group - Montclair) 5.875% 6/1/42		1,500,000		1,376,985
	New Jersey State Educational Facilities Authority Revenue
	(Fairleigh Dickinson Project) Series C 5.50% 7/1/23		245,000		246,017
	(University of Medicine & Dentistry) Series B 7.50% 12/1/32		1,000,000		1,101,080
	Oregon State Facilities Authority Revenue
	(College Housing Northwest Project) Series A 5.45% 10/1/32		1,000,000		824,780
	(Concordia University Project) Series A
	6.125% 9/1/30		1,000,000		983,800
	6.375% 9/1/40		500,000		494,425

41

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

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Pennsylvania State Higher Educational
	Facilities Authority Revenue
	(Edinboro University Foundation) 5.80% 7/1/30	$	1,300,000	$	1,253,083
	(Edinboro University Student Housing) 6.00% 7/1/42		1,000,000		942,220
	•(Foundation Indiana University)
	Series A 0.853% 7/1/39 (XLCA)		2,400,000		1,227,648
	Pennsylvania State Higher Educational Facilities Authority
	Student Housing Revenue (University Properties Inc. –
	East Stroudsburg University of Pennsylvania)
	5.00% 7/1/42		1,500,000		1,212,180
	Philadelphia, Pennsylvania Authority for Industrial
	Development Revenue
	(First Philadelphia Charter Project) Series A 5.75% 8/15/32		745,000		621,442
	(Global Leadership Academy Project) 6.375% 11/15/40		1,000,000		880,030
	Philadelphia, Pennsylvania Redevelopment Authority Revenue
	(Beech Student Housing Complex Project)
	Series A 5.50% 7/1/35 (ACA)		1,500,000		1,139,385
	Provo, Utah Charter School Revenue
	(Freedom Academy Foundation Project) 5.50% 6/15/37		1,000,000		713,680
	San Juan, Texas Higher Education Finance Authority
	Education Revenue (Idea Public Schools)
	Series A 6.70% 8/15/40		2,000,000		2,008,260
	Utah State Charter School Finance Authority Revenue
	(North Davis Preparatory) 6.375% 7/15/40		1,290,000		1,128,866
	Yonkers, New York Economic Development Corporation
	Educational Revenue (Charter School Educational
	Excellence) Series A 6.25% 10/15/40		595,000		526,742
					41,163,103
Electric Revenue Bond – 0.42%
	Puerto Rico Electric Power Authority Revenue
	Series XX 5.25% 7/1/40		1,000,000		872,230
					872,230
Healthcare Revenue Bonds – 19.24%
	Apple Valley, Minnesota Economic Development Authority
	Health Care Revenue (Augustana Home St. Paul Project)
	Series A 6.00% 1/1/40		1,000,000		881,130
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence
	Project) 5.875% 7/1/30		1,000,000		958,150

42

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Brevard County, Florida Healthcare Facilities Authority
	Health Care Facilities Authority Revenue
	(Heath First Inc. Project) Series B 7.00% 4/1/39	$	1,000,000	$	1,071,220
	Butler County, Pennsylvania Hospital Authority Revenue
	(Butler Health System Project) 7.125% 7/1/29		900,000		983,484
	California Municipal Finance Authority Revenue
	(Eisenhower Medical Center) Series A 5.75% 7/1/40		1,000,000		920,510
	California Statewide Communities Development Authority
	Revenue (Senior Living-Southern California)
	7.25% 11/15/41		500,000		523,565
	Cleveland - Cuyahoga County, Ohio Port Authority
	Revenue Senior Housing (St. Clarence - Geac)
	Series A 6.25% 5/1/38		1,000,000		762,710
	Colorado Health Facilities Authority Revenue (Christian
	Living Community Project) Series A 5.75% 1/1/37		500,000		411,920
	Cumberland County, Pennsylvania Municipal Authority
	Revenue (Diakon Lutheran Ministries Project)
	6.375% 1/1/39		1,000,000		986,430
	East Rochester, New York Housing Authority Revenue
	Refunding (Senior Living - Woodland Village Project)
	5.50% 8/1/33		500,000		393,115
	Franklin County, Pennsylvania Industrial Development
	Authority Revenue (Chambersburg Hospital Project)
	5.375% 7/1/42		1,000,000		914,700
	Gainesville & Hall County, Georgia Development Authority
	Revenue Senior Living Facilities (Lanier Village Estates
	Project) Series C 7.25% 11/15/29		1,000,000		1,006,600
	Hawaii Pacific Health Special Purpose Revenue
	Series A 5.50% 7/1/40		1,250,000		1,113,825
	Hawaii State Department Budget & Finance Special Purpose
	Senior Living Revenue (Craigside Project)
	Series A 9.00% 11/15/44		1,000,000		1,105,960
	Illinois Finance Authority Revenue
	(Admiral at Lake Project) Series A 8.00% 5/15/46		1,500,000		1,420,950
	(Provena Health) Series A 7.75% 8/15/34		1,000,000		1,076,310
	(Silver Cross & Medical Centers) 7.00% 8/15/44		1,000,000		998,680
	Illinois Health Facilities Authority Revenue (Elmhurst
	Memorial Healthcare Project) 5.625% 1/1/28		1,000,000		926,550

43

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

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	Indiana Finance Authority Hospital Revenue (King’s
	Daughters Hospital & Health) 5.50% 8/15/45	$	1,000,000	$	790,750
	Kentucky Economic Development Finance Authority
	Hospital Revenue (Owensboro Medical Health System)
	Series A 6.50% 3/1/45		1,000,000		955,330
	Lancaster County, Pennsylvania Hospital Authority Revenue
	(Brethren Village Project) Series A 6.375% 7/1/30		725,000		683,871
	Lebanon County, Pennsylvania Health Facilities Authority
	Center Revenue (Pleasant View Retirement)
	Series A 5.30% 12/15/26		1,000,000		857,220
	Lucas County, Ohio Healthcare Facility Revenue (Lutheran
	Homes) Series A 7.00% 11/1/45		2,000,000		1,963,939
	Maryland State Health & Higher Educational
	Facilities Authority Revenue
	(Doctors Community Hospital) 5.75% 7/1/38		1,000,000		830,700
	Montgomery County, Pennsylvania Industrial
	Development Authority Revenue
	(Meeting - Whitemarsh Continuing Care) 6.25% 2/1/35		1,500,000		1,217,940
	New Jersey Health Care Facilities Financing
	Authority Revenue
	(St. Josephs Healthcare System) 6.625% 7/1/38		860,000		845,509
	New York State Dormority Authority Revenue
	Non State Supported Debt
	(Orange Regional Medical Center) 6.25% 12/1/37		1,000,000		922,940
	North Carolina Medical Care Commission Health Care
	Facilities Revenue
	(First Mortgage - Galloway Ridge Project)
	Series A 6.00% 1/1/39		1,520,000		1,349,851
	(First Mortgage - Presbyterian Homes) 5.60% 10/1/36		1,000,000		824,090
	Pennsylvania Economic Development Financing Authority
	Health System Revenue (Albert Einstein Healthcare)
	Series A 6.25% 10/15/23		1,000,000		1,041,840
	Philadelphia, Pennsylvania Hospitals & Higher Education
	Facilities Authority Hospital Revenue (Temple University
	Health System) Series A 5.50% 7/1/30		2,000,000		1,785,440
	Richland County, Ohio Hospital Facilities Revenue
	(Medcentral Health System Project)
	Series B 6.375% 11/15/30		500,000		504,895
	South Carolina Jobs - Economic Development Authority
	Hospital Revenue (Palmetto Health) 5.75% 8/1/39		915,000		828,688

44

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	St. Johns County, Florida Industrial Development Authority
	Revenue (Presbyterian Retirement)
	Series A 5.875% 8/1/40	$	1,000,000	$	922,100
	St. Louis Park, Minnesota Health Care Facilities Revenue
	(Park Nicollet Health Services) 5.75% 7/1/39		500,000		472,635
	St. Paul, Minnesota Housing & Redevelopment Authority
	Hospital Revenue (Health East Project) 6.00% 11/15/30		2,000,000		1,743,380
	Suffolk County, New York Economic Development
	(Peconic Landing Southold) 6.00% 12/1/40		575,000		540,880
	Travis County, Texas Health Facilities
	Development Corporation Revenue
	(Westminister Manor Project) 7.125% 11/1/40		1,000,000		969,320
	Washington State Health Care Facilities Authority Revenue
	(Multicare Health System) Series B
	6.00% 8/15/39 (ASSURED GTY)		1,250,000		1,279,838
	Winchester, Virginia Industrial Development Authority
	Residential Care Facility Revenue
	(Westminster-Canterbury Project) Series A 5.30% 1/1/35		1,000,000		863,040
	Yavapai County, Arizona Industrial Development Authority
	Hospital Revenue (Yavapai Medical Center)
	Series A 6.00% 8/1/33		1,000,000		980,630
					39,630,635
Housing Revenue Bonds – 0.70%
	California Municipal Finance Authority Mobile Home Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45		1,585,000		1,444,284
					1,444,284
Lease Revenue Bonds – 3.73%
	Capital Area Cultural Education Facilities Finance
	Corporation Texas Revenue (Roman Catholic Diocese)
	Series B 6.125% 4/1/45		1,000,000		952,690
	Capital Trust Agency Florida Revenue
	(Air Cargo - Aero Miami) Series A 5.35% 7/1/29		1,000,000		919,980
	Guam Government Department of Education Certificates
	of Participation (John F. Kennedy High School)
	Series A 6.875% 12/1/40		2,000,000		1,873,440
	Missouri State Development Finance Board Infrastructure
	Facilities Revenue (Branson Landing Project)
	Series A 5.50% 12/1/24		720,000		736,502

45

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

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	New York City, New York Industrial Development Agency
	Revenue (Queens Baseball Stadium)
	5.00% 1/1/46 (AMBAC)	$	1,200,000	$	941,280
	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		771,006
	Oklahoma City, Oklahoma Industrial & Cultural Facilities
	Subordinated (Air Cargo - Obligated Group)
	6.75% 1/1/23 (AMT)		1,160,000		1,032,133
	Onondaga County Industrial Development Authority
	Revenue Subordinated (Air Cargo Project)
	7.25% 1/1/32 (AMT)		500,000		449,415
					7,676,446
Local General Obligation Bonds – 1.14%
	Fairfax County, Virginia Refunding & Public Improvement
	Series A 5.00% 4/1/17		2,000,000		2,340,720
					2,340,720
§Pre-Refunded Bonds – 0.52%
	Bexar County, Texas Health Facilities Development
	Corporation Revenue (Army Retirement Residence Project)
	6.30% 7/1/32-12		1,000,000		1,080,520
					1,080,520
Special Tax Revenue Bonds – 16.22%
	Anne Arundel County, Maryland Special Obligation
	(National Business Park - North Project) 6.10% 7/1/40		1,500,000		1,384,935
	Baltimore, Maryland Convention Center Hotel Revenue
	Subordinated Series B 5.875% 9/1/39		1,000,000		860,790
	Brooklyn Arena Local Development Corporation, New York
	Pilot Revenue (Barclays Center Project)
	6.25% 7/15/40		2,000,000		1,957,720
	6.50% 7/15/30		1,000,000		1,019,480
	Chicago, Illinois Tax Increment Allocation (Chatham Ridge
	Redevelopment Project) 5.95% 12/15/12		750,000		765,788
	Dutchess County, New York Local Development Corporation
	Revenue (Anderson Center Services Inc. Project)
	6.00% 10/1/30		2,000,000		1,856,560
@	Farms New Kent, Virginia Community Development
	Authority Special Assessment Series C 5.80% 3/1/36		1,000,000		717,990

46

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Henderson, Nevada Local Improvement Districts #T-18
	5.30% 9/1/35	$	660,000	$	340,481
	Lancaster, California Redevelopment Agency Tax Allocation
	(Combined Redevelopment Project Areas)
	6.875% 8/1/39		500,000		514,755
	Middlesex County, New Jersey Improvement Authority Senior
	Revenue (Heldrich Center Hotel/Conference Project) Series A
	5.00% 1/1/32		500,000		231,435
	5.125% 1/1/37		870,000		401,844
	Nampa Development Corporation Idaho Revenue
	5.90% 3/1/30		2,000,000		1,833,420
	New Jersey Economic Development Authority Revenue
	(Cigarette Tax) 5.75% 6/15/34		965,000		832,187
	New York City, New York Transitional Finance Authority
	(Future Tax Secured - Fiscal 2011)
	5.00% 2/1/18		2,000,000		2,292,820
	5.00% 2/1/26		1,000,000		1,056,450
	New York Local Government Assistance Corporation
	Subordinate Series A-5/6 5.00% 4/1/17		2,450,000		2,830,141
	Norco, California Redevelopment Agency Tax Allocation
	(Area #1 Project) 6.00% 3/1/36		1,000,000		926,430
	Palm Drive Health Care District Parcel Tax Revenue
	5.25% 4/1/30		2,000,000		1,417,520
	Prescott Valley, Arizona Improvement District Special
	Assessment (Sewer Collection System
	Roadway Repair Project) 7.90% 1/1/12		41,000		42,679
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30		1,855,000		1,687,679
	Puerto Rico Sales Tax Financing Corporation
	Sales Tax Revenue
	Ω(Capital Appreciation) Series A 6.75% 8/1/32		2,030,000		1,643,772
	Series A 5.75% 8/1/37		800,000		794,584
	Series C 5.25% 8/1/41		750,000		678,495
	Richmond Heights, Missouri Tax Increment & Transaction
	Sales Tax Revenue Refunding & Improvement
	(Francis Place Redevelopment Project) 5.625% 11/1/25		1,200,000		1,014,924
@	Southwestern Illinois Development Authority Revenue
	(Local Government Program - Collinsville Limited Project)
	5.35% 3/1/31		500,000		362,570

47

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

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
@	St. Joseph, Missouri Industrial Development Authority
	Tax Increment Revenue (Shoppes at North Village
	Project) Series A
	5.375% 11/1/24	$	1,000,000	$	860,720
	5.50% 11/1/27		500,000		422,470
	State of Hawaii 5.50% 7/1/18		2,000,000		2,367,100
	Virgin Islands Public Finance Authority Revenue Matching
	Fund Loan Note Senior Lien Series A 5.00% 10/1/29		930,000		876,237
	Winter Garden Village at Fowler Groves Community
	Development District, Florida Special Assessment Revenue
	5.65% 5/1/37		960,000		837,322
^	Wyandotte County, Kansas City, Kansas Unified
	Government Special Obligation Revenue (Capital
	Appreciation-Sales Tax) Subordinate Lien 6.07% 6/1/21		1,090,000		590,758
					33,420,056
State General Obligation Bonds – 5.26%
	California State Revenue (Antic NTS)
	Series A-2 3.00% 6/28/11		2,000,000		2,013,560
	Guam Government Series A 6.75% 11/15/29		1,565,000		1,619,963
	Maryland State (State & Local Facilities Loan)
	Series C 5.00% 11/1/18		3,100,000		3,662,030
	Virginia State Series D 5.00% 6/1/19		3,000,000		3,547,530
					10,843,083
Transportation Revenue Bonds – 4.89%
	Branson, Missouri Regional Airport Transportation
	Development District (Airport Project)
	Series A 6.00% 7/1/37		500,000		185,725
	Maryland State Economic Development Corporation
	Revenue (Transportation Facilities Project)
	Series A 5.75% 6/1/35		1,000,000		903,100
	Port Authority of New York & New Jersey Special Project
	(JFK International Air Terminal) 6.00% 12/1/42		1,970,000		1,920,159
	Regional Transportation District Colorado Private Activity
	Revenue (Denver Transfers Partners) 6.00% 1/15/41		1,000,000		923,280
	Sacramento County, California Airport System Revenue
	(PFC/Grant) Series C 6.00% 7/1/41		1,000,000		1,007,270
	St. Louis, Missouri Airport Revenue (Lambert-St. Louis
	International) Series A-1 6.625% 7/1/34		1,090,000		1,110,830

48

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds (continued)
	Texas Private Activity Bond Surface Transportation
	Corporation Senior Lien
	(LBJ Infrastructure) 7.00% 6/30/40	$	2,000,000	$	2,035,360
	(Mobility Partners) 6.875% 12/31/39		1,960,000		1,984,441
					10,070,165
Water & Sewer Revenue Bonds – 1.67%
	Guam Government Water and Waste Water System
	Revenue 5.625% 7/1/40		1,755,000		1,552,666
	New York State Environmental Facilities Corporation
	(State Revolving Foundation Master Financing)
	Series A 5.00% 8/15/17		1,620,000		1,882,148
					3,434,814
Total Municipal Bonds (cost $198,618,235)					188,050,112
Short-Term Investments – 5.97%
¤Variable Rate Demand Notes – 5.97%
	Erie County, Pennsylvania Hospital Authority Revenue
	(Hamot Health Foundation)
	0.20% 5/15/20 (LOC-PNC Bank)		1,000,000		1,000,000
	Massachusetts State Health & Educational Facilities
	Authority Revenue (Children’s Hospital) Series N-4
	0.21% 10/1/49 (LOC-JPMorgan Chase Bank)		8,000,000		8,000,000
	Missouri State Health & Educational Facilities Authority
	Educational Facilities Revenue (St. Louis University)
	Series B-1 0.18% 10/1/35 (LOC-Bank of America)		1,300,000		1,300,000
	New York City, New York Series C 0.17% 10/1/23
	(LOC-JPMorgan Chase Bank)		2,000,000		2,000,000
Total Short-Term Investments (cost $12,300,000)					12,300,000
Total Value of Securities – 97.25%
	(cost $210,918,235)				200,350,112
Receivables and Other Assets
	Net of Liabilities – 2.75%				5,664,798
Net Assets Applicable to 22,285,198
	Shares Outstanding – 100.00%			$	206,014,910

49

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

Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class A ($129,682,721 / 14,061,702 Shares)			$9.22
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class B ($872,179 / 94,400 Shares)			$9.24
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Class C ($40,684,330 / 4,393,127 Shares)			$9.26
Net Asset Value – Delaware National High-Yield Municipal Bond Fund
Institutional Class ($34,775,680 / 3,735,969 Shares)			$9.31
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	220,729,679
Distribution in excess of net investment income		(27,080		)
Accumulated net realized loss on investments		(4,119,566		)
Net unrealized depreciation of investments		(10,568,123		)
Total net assets	$	206,014,910

@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $2,831,703, which represented 1.37% 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 February 28, 2011. Interest rates reset periodically.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

50

Summary of abbreviations:
ACA — Insured by American Capital Access
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)	$	9.22
Sales charge (4.50% of offering price) (B)		0.43
Offering price	$	9.65

(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.

51

Statements of operations

Six Months Ended February 28, 2011 (Unaudited)

	Delaware			Delaware				Delaware
	Tax-Free			Tax-Free USA				National High-Yield
	USA Fund			Intermediate Fund				Municipal Bond Fund
Investment Income:
Interest	$	16,673,499			$	15,306,750			$	6,097,426
Expenses:
Management fees		1,655,390				1,809,109				567,121
Distribution expenses – Class A		695,460				687,559				170,315
Distribution expenses – Class B		21,310				1,992				4,897
Distribution expenses – Class C		145,189				320,670				202,790
Dividend disbursing and transfer
agent fees and expenses		196,895				332,137				76,274
Accounting and administration expenses		120,710				144,962				40,638
Registration fees		42,745				56,659				32,909
Reports and statements to shareholders		23,471				36,929				12,066
Audit and tax		21,430				22,308				9,254
Legal fees		18,550				20,802				9,458
Trustees’ fees		16,984				20,276				5,655
Insurance fees		12,586				11,911				2,266
Pricing fees		8,824				13,401				9,073
Custodian fees		6,507				6,728				2,258
Consulting fees		2,940				3,316				835
Trustees’ expenses		1,186				1,396				373
Due and services		425				2,058				10,047
		2,990,602				3,492,213				1,156,229
Less expenses absorbed or waived		(407,219	)			(268,485	)			(158,898	)
Less waived distribution expenses – Class A		—				(343,779	)			—
Less expense paid indirectly		(474	)			(577	)			(124	)
Total operating expenses		2,582,909				2,879,372				997,207
Net Investment Income		14,090,590				12,427,378				5,100,219

52

	Delaware			Delaware			Delaware
	Tax-Free			Tax-Free USA			National High-Yield
	USA Fund			Intermediate Fund			Municipal Bond Fund
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on investments	$	1,101,524		$	(7,958,103	)		$	(1,871,180	)
Net change in unrealized appreciation/
depreciation of investments		(41,417,284	)		(34,762,458	)			(17,371,500	)
Net Realized and Unrealized Loss
on Investments		(40,315,760	)		(42,720,561	)			(19,242,680	)
Net Decrease in Net Assets
Resulting from Operations	$	(26,225,170	)	$	(30,293,183	)		$	(14,142,461	)

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

53

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	14,090,590		$	27,449,487
Net realized gain on investments		1,101,524			5,376,303
Net change in unrealized
appreciation/depreciation of investments		(41,417,284	)		33,754,276
Net increase (decrease) in net assets resulting from operations		(26,225,170	)		66,580,066
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(13,275,941	)		(26,109,963	)
Class B		(82,863	)		(265,094	)
Class C		(564,431	)		(948,392	)
Institutional Class		(167,355	)		(126,036	)
		(14,090,590	)		(27,449,485	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		127,953,088			61,819,342
Class B		5,491			87,469
Class C		3,691,506			9,773,385
Institutional Class		3,255,833			10,975,123
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		7,283,790			13,870,753
Class B		46,543			116,921
Class C		424,010			691,115
Institutional Class		88,045			69,762
		142,748,306			97,403,870

54

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(78,916,661	)	$	(67,005,588	)
Class B		(1,532,633	)		(3,446,173	)
Class C		(4,370,362	)		(2,360,456	)
Institutional Class		(5,108,477	)		(3,613,385	)
		(89,928,133	)		(76,425,602	)
Increase in net assets derived from
capital share transactions		52,820,173			20,978,268
Net Increase in Net Assets		12,504,413			60,108,849
Net Assets:
Beginning of period		625,240,126			565,131,277
End of period	$	637,744,539		$	625,240,126
Undistributed net investment income	$	66,895		$	66,895

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

55

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	12,427,378		$	20,922,589
Net realized gain (loss) on investments		(7,958,103	)		3,101,284
Net change in unrealized
appreciation/depreciation of investments		(34,762,458	)		31,454,823
Net increase (decrease) in net assets resulting from operations		(30,293,183	)		55,478,696
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(7,828,367	)		(17,243,762	)
Class B		(5,109	)		(18,866	)
Class C		(822,894	)		(1,408,918	)
Institutional Class		(3,771,007	)		(2,251,043	)
		(12,427,377	)		(20,922,589	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		93,327,649			240,540,308
Class B		16,933			5,061
Class C		9,529,794			32,062,484
Institutional Class		91,009,854			201,735,695
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		5,868,144			11,793,891
Class B		3,087			12,602
Class C		640,962			1,043,543
Institutional Class		1,770,827			1,022,951
		202,167,250			488,216,535

56

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(109,596,729	)	$	(257,852,688	)
Class B		(151,511	)		(403,130	)
Class C		(10,428,040	)		(11,028,080	)
Institutional Class		(50,936,114	)		(15,480,558	)
		(171,112,394	)		(284,764,456	)
Increase in net assets derived from
capital share transactions		31,054,856			203,452,079
Net Increase (Decrease) in Net Assets		(11,665,704	)		238,008,186
Net Assets:
Beginning of period		738,883,756			500,875,570
End of period	$	727,218,052		$	738,883,756
Undistributed net investment income	$	16,226		$	16,225

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

57

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	5,100,219		$	5,970,302
Net realized gain (loss) on investments		(1,871,180	)		1,001,919
Net change in unrealized
appreciation/depreciation of investments		(17,371,500	)		13,240,902
Net increase (decrease) in net assets resulting
from operations		(14,142,461	)		20,213,123
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(3,448,980	)		(4,828,032	)
Class B		(21,104	)		(63,201	)
Class C		(878,427	)		(793,575	)
Institutional Class		(733,724	)		(265,485	)
		(5,082,235	)		(5,950,293	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		48,345,272			80,165,567
Class B		—			25,758
Class C		14,910,440			28,127,837
Institutional Class		32,925,251			21,613,556
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		2,516,663			3,020,007
Class B		12,716			31,120
Class C		672,100			528,580
Institutional Class		396,301			144,889
		99,778,743			133,657,314

58

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(48,087,296	)	$	(23,646,518	)
Class B		(170,002	)		(553,592	)
Class C		(7,376,218	)		(2,204,078	)
Institutional Class		(12,875,861	)		(5,576,829	)
		(68,509,377	)		(31,981,017	)
Increase in net assets derived from
capital share transactions		31,269,366			101,676,297
Net Increase in Net Assets		12,044,670			115,939,127
Net Assets:
Beginning of period		193,970,240			78,031,113
End of period	$	206,014,910		$	193,970,240
Distributions in excess of net investment income	$	(27,080	)	$	(4,408	)

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

59

Financial highlights
Delaware Tax-Free USA Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

60

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.630		$10.890		$10.970		$11.230		$11.570		$11.760
	0.258		0.522		0.479		0.462		0.466		0.458
	(0.760	)	0.740		(0.081	)	(0.260	)	(0.337	)	(0.186	)
	(0.502	)	1.262		0.398		0.202		0.129		0.272
	(0.258	)	(0.522	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)
	(0.258	)	(0.522	)	(0.478	)	(0.462	)	(0.469	)	(0.462	)
	$10.870		$11.630		$10.890		$10.970		$11.230		$11.570
	(4.35%	)	11.85%		3.91%		1.82%		1.08%		2.42%
	$600,693		$581,931		$536,420		$510,822		$735,584		$656,813
	0.80%		0.80%		0.84%		0.85%		0.87%		0.86%
	0.93%		0.95%		0.97%		0.94%		0.95%		1.00%
	4.64%		4.64%		4.60%		4.13%		4.03%		3.97%
	4.51%		4.49%		4.47%		4.04%		3.95%		3.83%
	31%		32%		66%		28%		36%		41%

61

Financial highlights
Delaware Tax-Free USA Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

62

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.620		$10.880		$10.960		$11.230		$11.570		$11.760
	0.216		0.437		0.399		0.378		0.378		0.370
	(0.750	)	0.740		(0.080	)	(0.270	)	(0.337	)	(0.186	)
	(0.534	)	1.177		0.319		0.108		0.041		0.184
	(0.216	)	(0.437	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)
	(0.216	)	(0.437	)	(0.399	)	(0.378	)	(0.381	)	(0.374	)
	$10.870		$11.620		$10.880		$10.960		$11.230		$11.570
	(4.62%	)	11.01%		3.13%		0.96%		0.32%		1.63%
	$3,595		$5,373		$8,168		$11,812		$17,286		$22,189
	1.56%		1.56%		1.60%		1.61%		1.63%		1.63%
	1.69%		1.71%		1.73%		1.70%		1.71%		1.73%
	3.88%		3.88%		3.84%		3.37%		3.27%		3.20%
	3.75%		3.73%		3.71%		3.28%		3.19%		3.10%
	31%		32%		66%		28%		36%		41%

63

Financial highlights
Delaware Tax-Free USA Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

64

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.630		$10.890		$10.970		$11.230		$11.570		$11.760
	0.216		0.437		0.399		0.377		0.378		0.370
	(0.750	)	0.740		(0.080	)	(0.260	)	(0.337	)	(0.186	)
	(0.534	)	1.177		0.319		0.117		0.041		0.184
	(0.216	)	(0.437	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)
	(0.216	)	(0.437	)	(0.399	)	(0.377	)	(0.381	)	(0.374	)
	$10.880		$11.630		$10.890		$10.970		$11.230		$11.570
	(4.62%	)	11.00%		3.13%		0.96%		0.41%		1.63%
	$28,077		$30,302		$20,542		$16,641		$16,871		$15,110
	1.56%		1.56%		1.60%		1.61%		1.63%		1.63%
	1.69%		1.71%		1.73%		1.70%		1.71%		1.73%
	3.88%		3.88%		3.84%		3.37%		3.27%		3.20%
	3.75%		3.73%		3.71%		3.28%		3.19%		3.10%
	31%		32%		66%		28%		36%		41%

65

Financial highlights
Delaware Tax-Free USA Fund Institutional Class

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 return3

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

66

Six Months Ended			Year Ended			12/31/082
2/28/111			8/31/10			to
(Unaudited)						8/31/09
	$11.720			$10.890			$10.020
	0.273			0.549			0.322
	(0.760	)		0.830			0.870
	(0.487	)		1.379			1.192
	(0.273	)		(0.549	)		(0.322	)
	(0.273	)		(0.549	)		(0.322	)
	$10.960			$11.720			$10.890
	(4.18%	)		12.84%			12.15%
	$5,380			$7,634			$1
	0.56%			0.56%			0.60%
	0.69%			0.71%			0.73%
	4.88%			4.88%			4.84%
	4.75%			4.73%			4.71%
	31%			32%			66%	4

67

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

68

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.110		$11.460		$11.250		$11.210		$11.470		$11.610
	0.198		0.423		0.388		0.383		0.414		0.408
	(0.660	)	0.650		0.210		0.041		(0.260	)	(0.140	)
	(0.462	)	1.073		0.598		0.424		0.154		0.268
	(0.198	)	(0.423	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)
	(0.198	)	(0.423	)	(0.388	)	(0.384	)	(0.414	)	(0.408	)
	$11.450		$12.110		$11.460		$11.250		$11.210		$11.470
	(3.83%	)	9.53%		5.49%		3.83%		1.34%		2.38%
	$443,795		$481,004		$459,782		$407,729		$306,215		$204,525
	0.75%		0.75%		0.75%		0.75%		0.76%		0.75%
	0.97%		1.00%		1.03%		1.03%		1.03%		1.07%
	3.41%		3.59%		3.51%		3.38%		3.60%		3.56%
	3.19%		3.34%		3.23%		3.10%		3.33%		3.24%
	25%		27%		47%		28%		40%		37%

69

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

70

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.100		$11.450		$11.240		$11.200		$11.460		$11.610
	0.148		0.324		0.294		0.287		0.317		0.311
	(0.670	)	0.650		0.210		0.041		(0.260	)	(0.150	)
	(0.522	)	0.974		0.504		0.328		0.057		0.161
	(0.148	)	(0.324	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
	(0.148	)	(0.324	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
	$11.430		$12.100		$11.450		$11.240		$11.200		$11.460
	(4.33%	)	8.62%		4.61%		2.95%		0.48%		1.43%
	$356		$511		$861		$1,272		$1,786		$2,413
	1.60%		1.60%		1.60%		1.60%		1.61%		1.60%
	1.67%		1.70%		1.73%		1.73%		1.73%		1.77%
	2.56%		2.74%		2.66%		2.53%		2.75%		2.71%
	2.49%		2.64%		2.53%		2.40%		2.63%		2.54%
	25%		27%		47%		28%		40%		37%

71

Financial highlights
Delaware Tax-Free USA Intermediate Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

72

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.110		$11.450		$11.240		$11.200		$11.470		$11.610
	0.148		0.323		0.294		0.287		0.317		0.311
	(0.670	)	0.660		0.210		0.041		(0.270	)	(0.140	)
	(0.522	)	0.983		0.504		0.328		0.047		0.171
	(0.148	)	(0.323	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
	(0.148	)	(0.323	)	(0.294	)	(0.288	)	(0.317	)	(0.311	)
	$11.440		$12.110		$11.450		$11.240		$11.200		$11.470
	(4.32%	)	8.70%		4.60%		2.95%		0.39%		1.52%
	$61,281		$65,343		$40,232		$24,880		$28,237		$28,004
	1.60%		1.60%		1.60%		1.60%		1.61%		1.60%
	1.67%		1.70%		1.73%		1.73%		1.73%		1.77%
	2.56%		2.74%		2.66%		2.53%		2.75%		2.71%
	2.49%		2.64%		2.53%		2.40%		2.63%		2.54%
	25%		27%		47%		28%		40%		37%

73

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:

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 return3

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

74

Six Months Ended			Year Ended			12/31/082 to
2/28/111			8/31/10			8/31/09
(Unaudited)
	$12.230			$11.460			$10.800
	0.208			0.424			0.269
	(0.670	)		0.770			0.660
	(0.462	)		1.194			0.929
	(0.208	)		(0.424	)		(0.269	)
	(0.208	)		(0.424	)		(0.269	)
	$11.560			$12.230			$11.460
	(3.79%	)		10.62%			8.68%
	$221,786			$192,026			$1
	0.60%			0.60%			0.60%
	0.67%			0.70%			0.73%
	3.56%			3.74%			3.65%
	3.49%			3.64%			3.52%
	25%			27%			47%	4

75

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

76

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.090		$8.920		$9.510		$10.030		$10.320		$10.380
	0.242		0.513		0.505		0.484		0.482		0.477
	(0.871	)	1.169		(0.595	)	(0.520	)	(0.290	)	(0.060	)
	(0.629	)	1.682		(0.090	)	(0.036	)	0.192		0.417
	(0.241	)	(0.512	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)
	(0.241	)	(0.512	)	(0.500	)	(0.484	)	(0.482	)	(0.477	)
	$9.220		$10.090		$8.920		$9.510		$10.030		$10.320
	(6.28%	)	19.29%		(0.38%	)	(0.37%	)	1.82%		4.15%
	$129,683		$139,628		$68,812		$67,762		$65,143		$68,663
	0.85%		0.85%		0.90%		0.90%		0.91%		0.90%
	1.00%		1.04%		1.08%		1.04%		1.03%		1.02%
	5.06%		5.24%		6.06%		4.94%		4.66%		4.66%
	4.91%		5.05%		5.88%		4.80%		4.54%		4.54%
	37%		37%		67%		24%		37%		73%

77

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

78

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.110		$8.940		$9.530		$10.050		$10.350		$10.400
	0.207		0.442		0.440		0.410		0.404		0.400
	(0.871	)	1.169		(0.592	)	(0.520	)	(0.300	)	(0.050	)
	(0.664	)	1.611		(0.152	)	(0.110	)	0.104		0.350
	(0.206	)	(0.441	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)
	(0.206	)	(0.441	)	(0.438	)	(0.410	)	(0.404	)	(0.400	)
	$9.240		$10.110		$8.940		$9.530		$10.050		$10.350
	(6.61%	)	18.37%		(1.11%	)	(1.12%	)	0.96%		3.47%
	$872		$1,118		$1,448		$3,135		$5,972		$9,519
	1.60%		1.60%		1.65%		1.65%		1.66%		1.65%
	1.75%		1.79%		1.83%		1.79%		1.78%		1.77%
	4.31%		4.49%		5.31%		4.19%		3.91%		3.91%
	4.16%		4.30%		5.13%		4.05%		3.79%		3.79%
	37%		37%		67%		24%		37%		73%

79

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

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

80

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$10.130		$8.960		$9.550		$10.070		$10.360		$10.420
	0.207		0.442		0.441		0.410		0.404		0.400
	(0.871	)	1.169		(0.592	)	(0.520	)	(0.290	)	(0.060	)
	(0.664	)	1.611		(0.151	)	(0.110	)	0.114		0.340
	(0.206	)	(0.441	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)
	(0.206	)	(0.441	)	(0.439	)	(0.410	)	(0.404	)	(0.400	)
	$9.260		$10.130		$8.960		$9.550		$10.070		$10.360
	(6.60%	)	18.33%		(1.11%	)	(1.12%	)	1.06%		3.36%
	$40,684		$36,384		$7,770		$6,998		$4,848		$5,332
	1.60%		1.60%		1.65%		1.65%		1.66%		1.65%
	1.75%		1.79%		1.83%		1.79%		1.78%		1.77%
	4.31%		4.49%		5.31%		4.19%		3.91%		3.91%
	4.16%		4.30%		5.13%		4.05%		3.79%		3.79%
	37%		37%		67%		24%		37%		73%

81

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:

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 return3

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

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

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

82

Six Months Ended			Year Ended		12/31/082 to
2/28/111			8/31/10		8/31/09
(Unaudited)
	$10.190		$8.930		$7.590
	0.256		0.534		0.342
	(0.881	)	1.259		1.338
	(0.625	)	1.793		1.680
	(0.255	)	(0.533	)	(0.340	)
	(0.255	)	(0.533	)	(0.340	)
	$9.310		$10.190		$8.930
	(6.19%	)	20.55%		22.55%
	$34,776		$16,840		$1
	0.60%		0.60%		0.65%
	0.75%		0.79%		0.85%
	5.31%		5.49%		6.41%
	5.16%		5.30%		6.21%
	37%		37%		67%	4

83

Notes to financial statements
Delaware National Tax-Free Funds	February 28, 2011 (Unaudited)

Delaware Group® Tax-Free Fund is organized as a Delaware statutory trust and offers two series: Delaware Tax-Free USA Fund and Delaware Tax-Free USA Intermediate Fund. Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund and Delaware Tax-Free New York Fund. Delaware Group Tax-Free Fund and Voyageur Mutual Funds are individually referred to as a Trust and collectively as the Trusts. These financial statements and the related notes pertain to Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund (each referred to as a Fund or, collectively, as the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended. The Funds offer Class A, Class B, Class C and Institutional Class shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50% for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund, and up to 2.75% for Delaware Tax-Free USA Intermediate Fund. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year for Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund; and of 0.75% for Delaware Tax-Free USA Intermediate Fund if redeemed within the first year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may be purchased only through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares of the Delaware Tax-Free USA Fund and Delaware National High-Yield Municipal Bond Fund will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class B shares of Delaware Tax-Free USA Intermediate Fund were sold with a CDSC that declines from 2% to zero depending upon the period of time the shares were held. Class B shares of the 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 High-Yield 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.

84

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. 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.

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 gains (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 the 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 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

85

Notes to financial statements
Delaware National Tax-Free Funds

1. Significant Accounting Policies (continued)

amortized to interest income over the lives of the respective securities. Each Fund declares dividends daily from net investment income and pays such dividends monthly and declares and pays distributions from net realized gain on investments, if any, annually. The Funds may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on the ex-dividend date.

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended February 28, 2011.

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 expense offset shown as “expense paid indirectly.” For the six months ended February 28, 2011, 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
$474	$577	$124

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 December 29, 2010, DMC has contractually agreed to waive that portion, if any, of its management fee and/or pay/reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan expenses, taxes, interest, inverse floater program expenses, short sale and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations), do not exceed 0.56%, 0.60%, and 0.60% of average daily net assets of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund, respectively, through December 29, 2011. Prior to December 29, 2010, the expense

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limitations were voluntary. 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 reimbursement applies only to expenses paid directly by the Funds.

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 InvestmentsFamily of Funds on a relative net asset value basis. For the six months ended February 28, 2011, 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
$15,212	$18,269	$5,121

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-Free 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 for all the Funds. The Board for Delaware Tax-Free USA Fund has adopted a formula for calculating 12b-1 plan fees for the Fund’s Class A shares that went into effect on June 1, 1992. The total 12b-1 fees to be paid by Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.30% of the average daily net assets representing shares that were acquired on or after June 1, 1992. Effective April 21, 2006, the maximum amount of the Class A 12b-1 fees was reduced to 0.25% and the total 12b-1 fees to be paid to Class A shareholders of the Fund will be the sum of 0.10% of the average daily net assets representing shares that were acquired prior to June 1, 1992 and 0.25% of the average daily net assets representing shares that were acquired on or after June 1, 1992. All Class A shareholders will bear 12b-1 fees at the same rate, the blended rate based upon the allocation of the rates described above. Institutional Class shares pay no distribution and service expenses. DDLP has contracted to waive distribution and service fees through December 29, 2011 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.

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Notes to financial statements
Delaware National Tax-Free Funds

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

At February 28, 2011, 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		$	207,416		$	234,435		$51,136
Dividend disbursing, transfer
agent and fund accounting
oversight fees and other
expenses payable to DSC			17,192			24,381		6,084
Distribution fees payable
to DDLP			136,205			97,244		56,097
Other expenses payable to
DMC and affiliates*			25,378			29,658		9,944

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

As provided in the investment management agreements, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2011, 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
$2,478	$2,560	$681

For the six months ended February 28, 2011, DDLP earned commissions on sales of each Fund’s Class A shares as follows:

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$18,012	$16,254	$52,064

For the six months ended February 28, 2011, 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-dealers 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			706			0			20
Class C			282			5,836			3,448

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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 six months ended February 28, 2011, the Fund 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	$217,701,016		$193,003,835		$96,138,734
Sales	186,737,006		183,968,684		74,365,878

At February 28, 2011, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2011, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
Cost of investments		$	636,324,171			$	704,763,850			$	210,828,404
Aggregate unrealized
appreciation		$	23,552,673			$	20,231,427			$	2,645,664
Aggregate unrealized
depreciation			(21,697,671	)			(8,921,992	)			(13,123,956	)
Net unrealized appreciation
(depreciation)		$	1,855,002			$	11,309,435			$	(10,478,292	)

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

Level 1   –   inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)

89

Notes to financial statements
Delaware National Tax-Free Funds

3. Investments (continued)

Level 2	–	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)
Level 3	–	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

	Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
Municipal Bonds	USA Fund	USA Intermediate Fund	Municipal Bond Fund
Level 2	$638,179,173	$716,073,285	$200,350,112

There were no Level 1 and Level 3 securities at the beginning or end of the period.

During the six months ended February 28, 2011, there were no transfers 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 six months ended February 28, 2011 and the year ended August 31, 2010 was as follows:

	Delaware Tax-Free			Delaware Tax-Free			Delaware National High-Yield
	USA Fund			USA Intermediate Fund			Municipal Bond Fund
Six months ended 2/28/11*
Tax-exempt income		$	13,859,303		$	12,424,433		$	5,039,830
Ordinary income			231,287			2,944			42,405
Total		$	14,090,590		$	12,427,377		$	5,082,235
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

*Tax information for the period ended February 28, 2011 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

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5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2011, the estimated components of net assets on a tax basis were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
Shares of beneficial interest		$	642,172,250			$	729,549,802			$	220,729,679
Distributions payable			(454,956	)			(372,905	)			(156,750	)
Undistributed tax-exempt
income			521,851				389,131				129,670
Realized gains
9/1/10 – 2/28/11			3,694,309				270,354				442,974
Post-October losses			(2,592,785	)			(8,228,457	)			(2,310,166	)
Capital loss carryforward
as of 8/31/10			(7,451,132	)			(5,699,308	)			(2,342,205	)
Unrealized appreciation
(depreciation) of investments			1,855,002				11,309,435				(10,478,292	)
Net assets		$	637,744,539			$	727,218,052			$	206,014,910

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

Post-October losses represent losses realized on investment transactions from November 1, 2010 through February 28, 2011 that, in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of market discount and premium on debt instruments. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2011, the Delaware National High-Yield Municipal Bond Fund recorded the following reclassifications:

Undistributed net investment income	$(40,656	)
Accumulated net realized loss	40,656

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

91

Notes to financial statements
Delaware National Tax-Free Funds

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

For the six months ended February 28, 2011, the Funds had capital gains which may decrease the capital loss carryforwards.

Delaware Tax-Free	Delaware Tax-Free	Delaware National High-Yield
USA Fund	USA Intermediate Fund	Municipal Bond Fund
$3,694,309	$270,354	$442,974

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware National High-Yield
	USA Fund				USA Intermediate Fund				Municipal Bond Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/28/11		8/31/10		2/28/11		8/31/10		2/28/11		8/31/10
Shares sold:
Class A	11,755,797		5,499,136		8,023,545		20,561,913		4,941,462		8,272,964
Class B	476		7,807		1,503		427		—		2,718
Class C	330,237		866,259		807,945		2,735,842		1,512,050		2,898,321
Institutional Class	287,822		962,114		7,670,773		16,911,847		3,405,245		2,202,319
Shares issued upon reinvestment of dividends and distributions:
Class A	653,106		1,229,783		503,423		1,005,351		263,275		313,502
Class B	4,163		10,383		264		1,078		1,326		3,238
Class C	38,011		61,213		55,035		88,888		70,212		54,352
Institutional Class	7,846		6,078		150,721		85,605		41,408		14,620
	13,077,458		8,642,773		17,213,209		41,390,951		10,234,978		13,762,034
Shares repurchased:
Class A	(7,202,438	)	(5,953,210	)	(9,458,966	)	(21,987,886	)	(4,980,269	)	(2,460,064	)
Class B	(136,142	)	(306,421	)	(12,877	)	(34,462	)	(17,553	)	(57,274	)
Class C	(391,561	)	(208,581	)	(902,809	)	(941,095	)	(779,647	)	(228,990	)
Institutional Class	(456,103	)	(316,816	)	(4,329,004	)	(1,298,699	)	(1,363,926	)	(563,836	)
	(8,186,244	)	(6,785,028	)	(14,703,656	)	(24,262,142	)	(7,141,395	)	(3,310,164	)
Net increase	4,891,214		1,857,745		2,509,553		17,128,809		3,093,583		10,451,870

For the six months ended February 28, 2011 and the year ended August 31, 2010, 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.

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	Six Months Ended				Year Ended
	2/28/11				8/31/10
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
USA Fund	47,851	47,809	$	542,517	104,388	104,295	$	1,173,700
Delaware Tax-Free
USA Intermediate Fund	5,515	5,510		63,258	8,148	8,141		95,087
Delaware National High-Yield
Municipal Bond Fund	1,909	1,913		18,818	8,566	8,583		81,217

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), was a participant 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 were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The agreement expired on November 16, 2010.

Effective as of November 16, 2010, each Fund, along with the other Participants entered into an amendment to the agreement with BNY Mellon for a $50,000,000 revolving line of credit. The agreement as amended is to be used as described above and operates in substantially the same manner as the original agreement. The new line of credit under the agreement as amended expires on November 15, 2011. The Funds had no amounts outstanding as of February 28, 2011, or at any time during the period then ended.

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Funds. At February 28, 2011, 7.66%, 8.81%, and 2.66% of the Fund’s net assets for the Delaware Tax-Free USA Fund, the Delaware Tax-Free USA Intermediate Fund, and the Delaware National High-Yield Municipal bond Fund, respectively, were insured by bond insurers. These securities have been identified in the statements of net assets.

93

Notes to financial statements
Delaware National Tax-Free Funds

8. Credit and Market Risk (continued)

As of February 28, 2011, the Funds invested in municipal bonds issued by the state of New York which constituted approximately 16%, 13%, and 11% of the Fund’s portfolio for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund and Delaware National High-Yield Municipal Bond Fund, respectively.

Each Fund may invest a portion of its assets in high yield fixed income securities, which are securities rated lower than BBB- by Standard & Poor’s (S&P) and Baa3 by Moody’s Investors Service, Inc. (Moody’s), or similarly rated by another nationally recognized statistical rating organization. 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

94

manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. As of February 28, 2011, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

9. Contractual Obligations

The Funds enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Funds has 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 February 28, 2011 that would require recognition or disclosure in the Funds’ financial statements.

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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 resignedas 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 ended Aug. 31, 2010. During the fiscal years ended Aug. 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trusts did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trusts and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trusts nor anyone on 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 Trusts’ financial statements.

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About the organization

Board of trustees
Patrick P. Coyne Chairman, President, and Chief Executive Officer Delaware Investments® Family of Funds Philadelphia, PA Thomas L. Bennett Private Investor Rosemont, PA John A. Fry President 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 semiannual report is for the information of Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free USA Fund, Delaware Tax-Free USA Intermediate Fund, and Delaware National High-Yield Municipal Bond Fund and the Delaware Investments Fund 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.

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Semiannual report

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

February 28, 2011

Fixed income mutual funds 

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

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

Experience Delaware Investments

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

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

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

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

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

Table of contents
Disclosure of Fund expenses	1
Sector allocations	4
Statements of net assets	9
Statements of operations	50
Statements of changes in net assets	52
Financial highlights	62
Notes to financial statements	92
Other Fund information	107
About the organization	108

Unless otherwise noted, views expressed herein are current as of Feb. 28, 2011, and subject to change.

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

Mutual fund advisory services provided by Delaware Management Company, a series of Delaware Management Business Trust, which is a registered investment advisor. Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings, Inc. and its subsidiaries, including the Funds’ distributor, Delaware Distributors, L.P. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

© 2011 Delaware Management Holdings, Inc.

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

Disclosure of Fund expenses
For the six-month period September 1, 2010 to February 28, 2011

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

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from September 1, 2010 to February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

1

Disclosure of Fund expenses

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	952.10	0.90	%	$	4.36
Class B		1,000.00		949.50	1.65	%		7.98
Class C		1,000.00		948.80	1.65	%		7.97
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.33	0.90	%	$	4.51
Class B		1,000.00		1,016.61	1.65	%		8.25
Class C		1,000.00		1,016.61	1.65	%		8.25

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	938.30	0.82	%	$	3.94
Class B		1,000.00		936.00	1.57	%		7.54
Class C		1,000.00		935.00	1.57	%		7.53
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.73	0.82	%	$	4.11
Class B		1,000.00		1,017.01	1.57	%		7.85
Class C		1,000.00		1,017.01	1.57	%		7.85

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	950.30	0.91	%	$	4.40
Class B		1,000.00		946.80	1.66	%		8.01
Class C		1,000.00		946.90	1.66	%		8.01
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.28	0.91	%	$	4.56
Class B		1,000.00		1,016.56	1.66	%		8.30
Class C		1,000.00		1,016.56	1.66	%		8.30

2

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	954.00	0.93	%	$	4.51
Class B		1,000.00		950.30	1.68	%		8.12
Class C		1,000.00		950.30	1.68	%		8.12
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.18	0.93	%	$	4.66
Class B		1,000.00		1,016.46	1.68	%		8.40
Class C		1,000.00		1,016.46	1.68	%		8.40

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

	Beginning		Ending				Expenses
	Account Value		Account Value		Annualized		Paid During Period
	9/1/10		2/28/11		Expense Ratio		9/1/10 to 2/28/11*
Actual Fund return
Class A	$	1,000.00	$	949.80	0.80	%	$	3.87
Class B		1,000.00		946.10	1.55	%		7.48
Class C		1,000.00		946.10	1.55	%		7.48
Hypothetical 5% return (5% return before expenses)
Class A	$	1,000.00	$	1,020.83	0.80	%	$	4.01
Class B		1,000.00		1,017.11	1.55	%		7.75
Class C		1,000.00		1,017.11	1.55	%		7.75

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

3

Sector allocations
Delaware Tax-Free Arizona Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	95.14	%
Corporate Revenue Bonds	7.64	%
Education Revenue Bonds	11.03	%
Electric Revenue Bonds	6.27	%
Healthcare Revenue Bonds	13.21	%
Lease Revenue Bonds	10.89	%
Local General Obligation Bonds	4.78	%
Pre-Refunded Bonds	6.82	%
Special Tax Revenue Bonds	12.46	%
State & Territory General Obligation Bonds	6.67	%
Transportation Revenue Bonds	5.78	%
Water & Sewer Revenue Bonds	9.59	%
Short-Term Investments	3.77	%
Total Value of Securities	98.91	%
Receivables and Other Assets Net of Liabilities	1.09	%
Total Net Assets	100.00	%

4

Delaware Tax-Free California Fund As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	95.45	%
Corporate Revenue Bonds	4.82	%
Education Revenue Bonds	9.07	%
Electric Revenue Bonds	7.04	%
Healthcare Revenue Bonds	12.46	%
Housing Revenue Bonds	6.79	%
Lease Revenue Bonds	7.52	%
Local General Obligation Bonds	7.19	%
Pre-Refunded Bonds	3.28	%
Resource Recovery Revenue Bond	1.20	%
Special Tax Revenue Bonds	17.19	%
State & Territory General Obligation Bonds	12.21	%
Transportation Revenue Bonds	3.41	%
Water & Sewer Revenue Bonds	3.27	%
Short-Term Investments	4.75	%
Total Value of Securities	100.20	%
Liabilities Net of Receivables and Other Assets	(0.20	%)
Total Net Assets	100.00	%

5

Sector allocations
Delaware Tax-Free Colorado Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	94.65	%
Corporate Revenue Bond	1.14	%
Education Revenue Bonds	10.72	%
Electric Revenue Bonds	9.39	%
Healthcare Revenue Bonds	21.00	%
Housing Revenue Bonds	2.18	%
Lease Revenue Bonds	3.61	%
Local General Obligation Bonds	12.42	%
Pre-Refunded Bonds	11.71	%
Special Tax Revenue Bonds	8.86	%
State & Territory General Obligation Bonds	7.39	%
Transportation Revenue Bonds	4.89	%
Water & Sewer Revenue Bonds	1.34	%
Short-Term Investments	5.05	%
Total Value of Securities	99.70	%
Receivables and Other Assets Net of Liabilities	0.30	%
Total Net Assets	100.00	%

6

Delaware Tax-Free Idaho Fund As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	96.62	%
Corporate Revenue Bonds	6.23	%
Education Revenue Bonds	11.10	%
Electric Revenue Bonds	4.23	%
Healthcare Revenue Bonds	4.81	%
Housing Revenue Bonds	6.74	%
Lease Revenue Bonds	4.59	%
Local General Obligation Bonds	21.35	%
Pre-Refunded Bonds	4.43	%
Special Tax Revenue Bonds	15.40	%
State General Obligation Bonds	5.45	%
Transportation Revenue Bonds	8.65	%
Water & Sewer Revenue Bonds	3.64	%
Short-Term Investment	2.19	%
Total Value of Securities	98.81	%
Receivables and Other Assets Net of Liabilities	1.19	%
Total Net Assets	100.00	%

7

Sector allocations
Delaware Tax-Free New York Fund	As of February 28, 2011

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

Sector	Percentage of net assets
Municipal Bonds	95.14	%
Corporate Revenue Bonds	6.60	%
Education Revenue Bonds	24.65	%
Electric Revenue Bonds	3.55	%
Healthcare Revenue Bonds	11.40	%
Housing Revenue Bonds	1.36	%
Lease Revenue Bonds	6.48	%
Local General Obligation Bonds	3.35	%
Pre-Refunded Bonds	2.83	%
Special Tax Revenue Bonds	17.14	%
State & Territory General Obligation Bonds	6.00	%
Transportation Revenue Bonds	8.62	%
Water & Sewer Revenue Bonds	3.16	%
Short-Term Investment	3.33	%
Total Value of Securities	98.47	%
Receivables and Other Assets Net of Liabilities	1.53	%
Total Net Assets	100.00	%

8

Statements of net assets
Delaware Tax-Free Arizona Fund	February 28, 2011  (Unaudited)

		Principal amount			Value
Municipal Bonds – 95.14%
Corporate Revenue Bonds – 7.64%
	Maricopa County Pollution Control (Palo Verde Project)
	Series A 5.05% 5/1/29 (AMBAC)		$	2,000,000	$	1,927,280
	•Series B 5.20% 6/1/43			1,500,000		1,485,765
•	Navajo County Pollution Control Revenue
	(Arizona Public Services-Cholla)
	Series D 5.75% 6/1/34			1,500,000		1,637,610
	Pima County Industrial Development Authority Pollution
	Control Revenue (Tucson Electric Power San Juan)
	5.75% 9/1/29			750,000		731,415
	Series A 4.95% 10/1/20			1,450,000		1,398,322
	Puerto Rico Port Authority Revenue (American Airlines)
	Series A 6.25% 6/1/26 (AMT)			1,115,000		919,897
						8,100,289
Education Revenue Bonds – 11.03%
	Arizona Board of Regents
	University of Arizona System Revenue
	Series A 5.00% 6/1/21			1,255,000		1,359,115
	Series C 5.50% 7/1/25			330,000		352,843
	Arizona Health Facilities Authority
	Healthcare Education Revenue (Kirksville College)
	5.125% 1/1/30			1,500,000		1,402,695
	Arizona State University Certificates of Participation
	(Research Infrastructure Project)
	5.00% 9/1/30 (AMBAC)			2,000,000		1,968,180
	Arizona State University Energy Management Revenue
	(Arizona State University-Tempe Campus II Project)
	4.50% 7/1/24			1,385,000		1,372,590
	Energy Management Services Conservation Revenue
	(Arizona State University-Main Campus Project)
	5.25% 7/1/17 (NATL-RE)			1,500,000		1,576,665
	Glendale Industrial Development Authority Revenue
	(Midwestern University) 5.125% 5/15/40			1,005,000		919,173
	Pima County Industrial Development Authority Educational
	Revenue (Tucson Country Day School Project)
	5.00% 6/1/37			1,000,000		719,210
	South Campus Group Student Housing Revenue
	(Arizona State University-South Campus Project)
	5.625% 9/1/35 (NATL-RE)			1,000,000		941,790

9
 

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount			Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	Tucson Industrial Development Authority Lease Revenue
	(University of Arizona-Marshall Foundation)
	Series A 5.00% 7/15/27 (AMBAC)	$	1,000,000	$	993,870
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series A 5.125% 6/1/21 (AMBAC)		85,000		88,173
					11,694,304
Electric Revenue Bonds – 6.27%
	Mesa Utilities System Revenue 5.00% 7/1/18
	(NATL-RE) (FGIC)		2,150,000		2,399,249
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28		1,430,000		1,319,061
	Series ZZ 5.25% 7/1/26		1,500,000		1,456,830
	Salt River Project Agricultural Improvement &
	Power District Electric System Revenue
	Series B 5.00% 1/1/31 (NATL-RE) (IBC)		1,460,000		1,468,439
					6,643,579
Healthcare Revenue Bonds – 13.21%
	Arizona Health Facilities Authority Revenue
	(Catholic Healthcare West) Series D 5.00% 7/1/28		1,500,000		1,411,950
	Glendale Industrial Development Authority Hospital
	Revenue (John C. Lincoln Health) 5.00% 12/1/42		2,500,000		2,018,275
	Maricopa County Industrial Development Authority Health
	Facilities Revenue (Catholic Healthcare West) Series A
	5.50% 7/1/26		1,000,000		990,220
	6.00% 7/1/39		2,500,000		2,504,625
	Scottsdale Industrial Development Authority
	Hospital Revenue (Scottsdale Healthcare)
	Series A 5.25% 9/1/30		1,250,000		1,236,463
	University Medical Center Hospital Revenue
	5.00% 7/1/35		1,500,000		1,293,735
	6.50% 7/1/39		2,500,000		2,556,174
	Yavapai County Industrial Development Authority
	Revenue (Yavapai Regional Medical Center)
	Series A 5.25% 8/1/21 (RADIAN)		2,000,000		1,991,980
					14,003,422

10

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds – 10.89%
	Arizona Game & Fish Department &
	Community Beneficial Interest Certificates
	(Administration Building Project)
	5.00% 7/1/32	$	1,000,000	$	939,370
	Arizona State Certificates of Participation Department
	Administration Series A 5.25% 10/1/25 (AGM)		1,500,000		1,541,685
	Marana Municipal Property Facilities Revenue
	5.00% 7/1/28 (AMBAC)		575,000		579,318
	Maricopa County Industrial Development Authority
	Correctional Contract Revenue (Phoenix West Prison)
	Series B 5.375% 7/1/22 (ACA)		1,000,000		965,760
	Phoenix Industrial Development Authority Lease
	Revenue (Capitol Mall II, LLC Project)
	5.00% 9/15/28 (AMBAC)		2,000,000		1,925,320
	Pima County Industrial Development Authority Lease
	Revenue Metro Police Facility (Nevada Project) Series A
	5.25% 7/1/31		1,500,000		1,509,960
	5.375% 7/1/39		1,500,000		1,471,005
	Pinal County Certificates of Participation
	5.00% 12/1/29		1,300,000		1,201,499
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series D 5.25% 7/1/27		470,000		446,707
	University of Arizona Certificates of Participation
	(University of Arizona Project)
	Series B 5.00% 6/1/31 (AMBAC)		1,000,000		970,180
					11,550,804
Local General Obligation Bonds – 4.78%
	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		1,713,040
	Series B 5.375% 7/1/28		1,350,000		1,402,758
	DC Ranch Community Facilities 5.00% 7/15/27 (AMBAC)		1,000,000		933,610
•	Gila County Unified School District #10
	(Payson School Improvement Project of 2006) Series A
	5.25% 7/1/27 (AMBAC)		1,000,000		1,017,180
					5,066,588

11

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds – 6.82%
	Phoenix Variable Purpose Series B 5.00% 7/1/27-12	$	2,435,000	$	2,457,329
	Pinal County Certificates of Participation
	5.125% 6/1/21-11 (AMBAC)		2,000,000		2,044,440
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K
	5.00% 7/1/35-15		750,000		865,215
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities) Series I
	5.25% 7/1/33-14		5,000		5,641
	Southern Arizona Capital Facilities Finance Revenue
	(University of Arizona Project)
	5.10% 9/1/33-12 (NATL-RE)		1,250,000		1,335,800
	University of Arizona Certificates of Participation
	(University of Arizona Project) Series A
	5.125% 6/1/21-12 (AMBAC)		500,000		528,105
					7,236,530
Special Tax Revenue Bonds – 12.46%
	Arizona Tourism & Sports Authority Tax Revenue
	(Multipurpose Stadium Facilities) Series A
	5.00% 7/1/28 (NATL-RE)		1,345,000		1,284,085
	Flagstaff Aspen Place Sawmill Improvement District
	Revenue 5.00% 1/1/32		1,350,000		1,326,753
	Gilbert Public Facilities Municipal Property
	Revenue 5.00% 7/1/25		1,250,000		1,283,363
	Marana Tangerine Farm Road Improvement District
	Revenue 4.60% 1/1/26		872,000		826,246
	Mesa Street & Highway Revenue 5.00% 7/1/20 (AGM)		1,000,000		1,109,760
	Phoenix Civic Improvement Excise Tax Revenue
	(Solid Waste Improvements) Series A
	5.00% 7/1/19 (NATL-RE)		1,000,000		1,063,190
	Phoenix Civic Improvement Transition Excise Tax
	Revenue (Light Rail Project)
	5.00% 7/1/20 (AMBAC)		1,570,000		1,663,321
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Special Tax Revenue
	Series C 5.50% 7/1/25 (AMBAC)		1,955,000		1,922,508

12

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate Series A
	5.75% 8/1/37	$	580,000	$	576,073
	Ω(Capital Appreciation) 6.75% 8/1/32		2,665,000		2,157,957
					13,213,256
State & Territory General Obligation Bonds – 6.67%
	Guam Government Series A
	6.75% 11/15/29		115,000		119,039
	7.00% 11/15/39		1,250,000		1,306,125
	Puerto Rico Commonwealth Public Improvement Series A
	5.50% 7/1/19		1,300,000		1,346,046
	5.50% 7/1/19 (NATL-RE) (IBC)		1,000,000		1,038,870
	Un-Refunded Balance Series A
	5.125% 7/1/30 (AGM)		480,000		459,245
	5.125% 7/1/31		2,000,000		1,896,980
	Virgin Islands Public Finance Authority Revenue
	(Gross Receipts Taxes Loan Note)
	5.00% 10/1/31 (ACA)		1,000,000		902,290
					7,068,595
Transportation Revenue Bonds – 5.78%
	Arizona State Transportation Board Highway Revenue
	Subordinated Series A 5.00% 7/1/23		1,000,000		1,057,580
	Phoenix Civic Improvement Airport Revenue
	(Junior Lien) Series A 5.25% 7/1/33		1,250,000		1,233,725
	(Senior Lien) Series B
	5.25% 7/1/27 (NATL-RE) (FGIC) (AMT)		1,000,000		988,580
	5.25% 7/1/32 (NATL-RE) (FGIC) (AMT)		3,000,000		2,850,270
					6,130,155
Water & Sewer Revenue Bonds – 9.59%
	Guam Government Waterworks Authority
	5.625% 7/1/40		1,170,000		1,035,111

13

Statements of net assets
Delaware Tax-Free Arizona Fund

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds (continued)
	Phoenix Civic Improvement Wastewater Corporation
	Systems Revenue (Junior Lien)
	5.00% 7/1/19 (NATL-RE)	$	1,750,000	$	1,925,315
	5.00% 7/1/24 (NATL-RE) (FGIC)		1,000,000		1,002,400
	5.00% 7/1/26 (NATL-RE) (FGIC)		3,750,000		3,751,200
	Series A 5.00% 7/1/23		1,000,000		1,082,440
	Scottsdale Water & Sewer Revenue 5.25% 7/1/22		1,150,000		1,378,160
					10,174,626
Total Municipal Bonds (cost $101,147,707)					100,882,148
Short-Term Investments – 3.77%
¤	Variable Rate Demand Notes – 3.77%
	Arizona Health Facilities Authority Revenue
	(Catholic West)
	Series A 0.25% 7/1/35		500,000		500,000
	Series F 0.24% 7/1/35		1,000,000		1,000,000
	(Southwest Health) 0.28% 12/1/24		1,000,000		1,000,000
	Phoenix Industrial Development Authority Multifamily
	Housing Revenue (Paradise Lakes Apartment)
	Series A 0.24% 11/1/42		1,500,000		1,500,000
Total Short-Term Investments (cost $4,000,000)					4,000,000
Total Value of Securities – 98.91%
	(cost $105,147,707)				104,882,148
Receivables and Other Assets
	Net of Liabilities – 1.09%				1,160,226
Net Assets Applicable to 9,678,655
	Shares Outstanding – 100.00%			$	106,042,374

Net Asset Value – Delaware Tax-Free Arizona Fund
Class A ($97,407,649 / 8,892,230 Shares)	$10.95
Net Asset Value – Delaware Tax-Free Arizona Fund
Class B ($1,647,168 / 150,252 Shares)	$10.96
Net Asset Value – Delaware Tax-Free Arizona Fund
Class C ($6,987,557 / 636,173 Shares)	$10.98

14

Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization - no par)	$	106,431,188
Undistributed net investment income		26,196
Accumulated net realized loss on investments		(149,451	)
Net unrealized depreciation of investments		(265,559	)
Total net assets	$	106,042,374

•	Variable rate security. The rate shown is the rate as of February 28, 2011. Interest rates reset periodically.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
Ω	Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

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

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

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

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

15

Statements of net assets
Delaware Tax-Free California Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 95.45%
Corporate Revenue Bonds – 4.82%
•	California Pollution Control Financing Authority
	Environmental Improvement Revenue
	(BP West Coast Products, LLC) 2.60% 12/1/46	$	500,000	$	499,415
	Chula Vista Industrial Development Revenue
	(San Diego Gas & Electric) Series D 5.875% 1/1/34		1,000,000		1,037,960
	Golden State Tobacco Securitization Corporate
	Settlement Revenue (Asset-Backed Senior Notes)
	Series A-1 5.75% 6/1/47		1,000,000		667,760
	M-S-R Energy Authority Gas Revenue Series A 6.50% 11/1/39		1,000,000		1,039,870
	Puerto Rico Ports Authority Special Facilities Revenue
	(American Airlines) Series A 6.30% 6/1/23 (AMT)		825,000		699,996
					3,945,001
Education Revenue Bonds – 9.07%
	California Educational Facilities Authority Revenue
	(University of the Pacific) 5.50% 11/1/39		1,000,000		946,230
	(Woodbury University) 5.00% 1/1/36		1,000,000		776,580
	California Municipal Finance Authority Educational Revenue
	(American Heritage Education Foundation Project)
	Series A 5.25% 6/1/36		1,000,000		751,120
	California Statewide Communities Development
	Authority Revenue
	(California Baptist University Project)
	Series A 5.50% 11/1/38		1,000,000		820,660
	(Viewpoint School Project) 5.75% 10/1/33 (ACA)		1,000,000		927,330
	California Statewide Communities Development Authority
	School Facility Revenue (Aspire Public Schools Project)
	6.00% 7/1/40		1,000,000		877,120
	California Statewide Communities Development Authority
	Student Housing Revenue (East Campus Apartments, LLC)
	Series A 5.625% 8/1/34 (ACA)		1,000,000		888,830
	San Diego County Certificates of Participation
	(University of San Diego) 5.375% 10/1/41		1,000,000		869,680
	University of California Revenue (Multiple Purpose Projects)
	Series L 5.00% 5/15/19		500,000		558,435
					7,415,985
Electric Revenue Bonds – 7.04%
	Chino Basin Regional Financing Authority Revenue
	Series A 5.00% 11/1/24 (AMBAC)		845,000		873,848

16

		Principal amount			Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Imperial Irrigation District Electric System Revenue
	Series A 5.25% 11/1/24	$	500,000	$	521,425
	Puerto Rico Electric Power Authority Revenue
	Series ZZ 5.00% 7/1/17		925,000		983,765
	Southern California Public Power Authority Revenue
	(Transmission Project) Series A 5.00% 7/1/22		1,000,000		1,060,090
	Turlock Irrigation District Revenue Series A 5.00% 1/1/30		1,335,000		1,290,625
	Vernon Electric System Revenue Series A 5.125% 8/1/21		1,000,000		1,028,970
					5,758,723
Healthcare Revenue Bonds – 12.46%
	Association Bay Area Governments Finance Authority for
	California Nonprofit Corporations
	(Sharp Health Care) Series B 6.25% 8/1/39		1,000,000		1,008,400
	California Health Facilities Financing Authority Revenue
	(Catholic Health Care West)
	Series A 6.00% 7/1/39		855,000		859,933
	Series E 5.625% 7/1/25		1,000,000		1,020,930
	Series G 5.25% 7/1/23		1,000,000		1,007,840
	(Children’s Hospital Orange County) Series A 6.50% 11/1/38		1,000,000		1,020,460
	(St. Joseph Health System) Series A 5.75% 7/1/39		1,000,000		1,003,850
	(The Episcopal Home) Series A 5.30% 2/1/32 (RADIAN)		1,000,000		918,820
	California Infrastructure & Economic Development Bank
	Revenue (Kaiser Hospital Associates I, LLC)
	Series A 5.55% 8/1/31		1,000,000		961,010
	California Statewide Communities Development
	Authority Revenue
	(Kaiser Permanente) Series A 5.00% 4/1/19		1,000,000		1,050,160
	(Southern California Senior Living) 7.25% 11/15/41		500,000		523,565
	(Valleycare Health Systems) Series A 5.125% 7/15/31		1,000,000		817,590
					10,192,558
Housing Revenue Bonds – 6.79%
	California Housing Finance Agency Revenue (Home Mortgage)
	Series K 5.30% 8/1/23 (AMT)		1,000,000		938,420
	California Municipal Finance Authority Mobilehome Park
	Revenue (Caritas Projects) Series A 6.40% 8/15/45		1,000,000		911,220
	California Statewide Communities Development
	Multifamily Housing Authority Revenue
	(Citrus Gardens Apartments) Series D-1 5.375% 7/1/32		1,000,000		817,410
	•(Silver Ridge Apartments)
	Series H 5.80% 8/1/33 (FNMA) (AMT)		1,000,000		1,020,350

17

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Housing Revenue Bonds (continued)
	Palm Springs Mobile Home Park Revenue
	(Sahara Mobile Home Park) Series A 5.75% 5/15/37	$	1,000,000	$	925,310
	Santa Clara County Multifamily Housing Authority Revenue
	(Rivertown Apartments Project)
	Series A 5.85% 8/1/31 (AMT)		1,000,000		936,330
					5,549,040
Lease Revenue Bonds – 7.52%
	California State Public Works Board Lease Revenue
	(General Services) Series A 6.25% 4/1/34		1,000,000		1,015,450
	Elsinore Valley Municipal Water District Certificates of
	Participation Series A 5.00% 7/1/24 (BHAC)		1,000,000		1,054,560
	Franklin-McKinley School District Certificates of Participation
	(Financing Project) Series B 5.00% 9/1/27 (AMBAC)		1,060,000		1,017,971
•	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series M-2 5.50% 7/1/35 (AMBAC)		700,000		734,657
	San Diego Public Facilities Financing Authority Lease
	Revenue (Master Project) Series A 5.25% 3/1/40		1,000,000		888,120
	San Mateo Joint Powers Financing Authority Lease
	Revenue (Capital Projects) Series A 5.25% 7/15/26		1,000,000		1,014,830
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		424,390
					6,149,978
Local General Obligation Bonds – 7.19%
^	Anaheim School District Election 2002
	4.58% 8/1/25 (NATL-RE)		1,000,000		380,980
	Central Unified School District Election 2008
	Series A 5.625% 8/1/33 (ASSURED GTY)		1,000,000		1,011,310
	Cupertino Union School District Revenue
	Series A 5.00% 8/1/26		820,000		854,834
	Fairfield-Suisun Unified School District Election 2002
	5.50% 8/1/28 (NATL-RE)		500,000		511,735
	Grossmont Union High School District Election 2004
	5.00% 8/1/23 (NATL-RE)		1,000,000		1,028,510

18

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Santa Barbara Community College District Election 2008
	Series A 5.25% 8/1/33	$	1,000,000	$	1,014,380
	Sierra Joint Community College Improvement District #2
	(Western Nevada) Series A 5.25% 8/1/21 (BHAC) (FGIC)		1,000,000		1,078,310
					5,880,059
§Pre-Refunded Bonds – 3.28%
	California Department of Water Resources (Central Valley
	Project) Series X
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		5,000		5,391
	Prerefunded 2010 (Water System)
	5.00% 12/1/29-12 (NATL-RE) (FGIC)		255,000		274,709
	Commerce Joint Powers Financing Authority
	Revenue (Redevelopment Projects)
	Series A 5.00% 8/1/28-13 (RADIAN)		60,000		66,118
	Golden State Tobacco Securitization
	Corporation Settlement Revenue
	(Asset-Backed Senior Notes) Series B
	5.50% 6/1/43-13 (RADIAN)		1,000,000		1,105,630
	5.625% 6/1/33-13		1,000,000		1,108,430
	Port Oakland Revenue Series L 5.375% 11/1/27-12
	(NATL-RE) (FGIC) (AMT)		110,000		118,865
					2,679,143
Resource Recovery Revenue Bond – 1.20%
	South Bayside Waste Management Authority Revenue
	(Shoreway Environmental Center) Series A 6.00% 9/1/36		1,000,000		983,960
					983,960
Special Tax Revenue Bonds – 17.19%
	California State Economic Recovery Refunding
	Series A 5.25% 7/1/21		1,000,000		1,114,120
	Commerce Joint Powers Financing Authority Revenue
	(Redevelopment Projects) Un-Refunded Balance
	Series A 5.00% 8/1/28 (RADIAN)		940,000		795,061
	Fremont Community Facilities District #1 (Special Tax Pacific
	Commons) 5.375% 9/1/36		1,000,000		800,990
	Glendale Redevelopment Agency Tax Allocation Revenue
	(Central Glendale Redevelopment Project) 5.50% 12/1/24		1,000,000		963,300
	Lammersville School District Community Facilities
	District #2002 (Mountain House) 5.125% 9/1/35		500,000		386,070

19

Statements of net assets
Delaware Tax-Free California Fund

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Lancaster Redevelopment Agency Tax Allocation Revenue
	(Combined Redevelopment Project Areas) 6.875% 8/1/39	$	500,000	$	514,755
@	Modesto Special Tax Community Facilities
	District #04-1 (Village 2) 5.15% 9/1/36		1,000,000		740,850
	Poway Redevelopment Agency Tax Allocation Revenue
	5.75% 6/15/33 (NATL-RE)		270,000		250,638
	Poway Unified School District Community Facilities District #1
	Special Tax Refunding 5.00% 10/1/17 (AGM)		1,000,000		1,108,690
	Puerto Rico Sales Tax Financing Corporation
	Revenue First Subordinates Series A
	5.25% 8/1/27		1,000,000		986,970
	ΩCapital Appreciation 6.75% 8/1/32		1,825,000		1,477,776
	Riverside County Redevelopment Agency Tax Allocation
	Housing Series A 6.00% 10/1/39		1,000,000		901,400
	Roseville Westpark Special Tax Public Community Facilities
	District #1 5.25% 9/1/37		500,000		390,210
	San Bernardino County Special Tax Community Facilities
	District #2002-1 5.90% 9/1/33		2,000,000		1,821,820
	San Diego Redevelopment Agency Tax Allocation Revenue
	(Naval Training Center) Series A 5.75% 9/1/40		1,000,000		863,100
	Virgin Islands Public Finance Authority Revenue (Senior
	Lien-Matching Fund Loan Note)
	Series A 5.00% 10/1/29		1,000,000		942,190
					14,057,940
State & Territory General Obligation Bonds – 12.21%
	California State Various Purposes
	5.25% 3/1/30		1,000,000		1,002,480
	6.00% 4/1/38		515,000		532,453
	Guam Government Series A 6.75% 11/15/29		1,755,000		1,816,636
	Puerto Rico Commonwealth Public Improvement Series A
	5.25% 7/1/15		1,000,000		1,048,950
	5.50% 7/1/19 (NATL-RE) (IBC)		1,750,000		1,818,022
	State of California 5.25% 11/1/40		1,000,000		957,210
	State of California Revenue (Antic Notes)
	Series A-2 3.00% 6/28/11		1,750,000		1,761,865
	State of California Various Purposes 6.00% 3/1/33		1,000,000		1,051,450
					9,989,066

20

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 3.41%
	Port Oakland Revenue Series L 5.375% 11/1/27
	(NATL-RE) (FGIC) (AMT)	$	890,000	$	806,972
	Sacramento County Airport Services Revenue (PFC/Grant)
	Series C 6.00% 7/1/41		1,000,000		1,007,270
	San Diego Redevelopment Agency (Centre City Redevelopment
	Project) Series A 6.40% 9/1/25		1,000,000		977,860
					2,792,102
Water & Sewer Revenue Bonds – 3.27%
	California State Department of Water Resources
	Systems Revenue (Central Valley Project)
	Series A 5.00% 12/1/24		1,000,000		1,075,240
	Series AG 5.00% 12/1/28		815,000		858,953
	Unrefunded 5.00% 12/1/29 (NATL-RE) (FGIC)		740,000		741,421
					2,675,614
Total Municipal Bonds (cost $80,516,934)					78,069,169
		Number of shares
Short-Term Investments – 4.75%
Money Market Instrument – 0.45%
	Federated California Municipal Cash Trust		369,867		369,867
					369,867
		Principal amount
¤Variable Rate Demand Notes – 4.30%
	California Infrastructure & Economic Development Bank
	Revenue (Los Angeles Museum)
	Series A 0.17% 9/1/27	$	500,000		500,000
	Series B 0.17% 9/1/37		1,015,000		1,015,000
	Newport Beach Revenue (Hoag Memorial Hospital)
	Series D 0.23% 12/1/40		2,000,000		2,000,000
					3,515,000
Total Short-Term Investments (cost $3,884,867)					3,884,867
Total Value of Securities – 100.20% (cost $84,401,801)					81,954,036
Liabilities Net of Receivables and
	Other Assets – (0.20%)				(159,822	)
Net Assets Applicable to 7,697,340
	Shares Outstanding – 100.00%			$	81,794,214

21

Statements of net assets
Delaware Tax-Free California Fund

Net Asset Value – Delaware Tax-Free California Fund
Class A ($65,348,923 / 6,152,156 Shares)			$10.62
Net Asset Value – Delaware Tax-Free California Fund
Class B ($1,949,093 / 182,733 Shares)			$10.67
Net Asset Value – Delaware Tax-Free California Fund
Class C ($14,496,198 / 1,362,451 Shares)			$10.64
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	85,660,742
Undistributed net investment income		18,763
Accumulated net realized loss on investments		(1,437,526		)
Net unrealized depreciation of investments		(2,447,765		)
Total net assets	$	81,794,214

•	Variable rate security. The rate shown is the rate as of February 28, 2011. 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.
^	Zero coupon security. The rate shown is the yield at the time of purchase.
§	Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 8 in “Notes to financial statements.”
@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $740,850, which represented 0.91% of the Fund’s net assets. See Note 8 in “Notes to financial statements.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

22

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
BHAC — Insured by Berkshire Hathaway Assurance Company
FGIC — Insured by Financial Guaranty Insurance Company
FNMA — Federal National Mortgage Association Collateral
IBC — Insured by Integrity Building Corporation
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free California Fund
Net asset value Class A (A)	$	10.62
Sales charge (4.50% of offering price) (B)		0.50
Offering price	$	11.12

(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.

23

Statements of net assets
Delaware Tax-Free Colorado Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 94.65%
Corporate Revenue Bond – 1.14%
	Public Authority Energy National Gas Purpose
	Revenue Series 2008 6.50% 11/15/38	$	2,500,000	$	2,591,625
					2,591,625
Education Revenue Bonds – 10.72%
	Boulder County Development Revenue
	(University Corporation for Atmospheric Research)
	5.00% 9/1/33 (NATL-RE)		1,000,000		949,490
	5.00% 9/1/35 (AMBAC)		1,000,000		955,140
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Charter School Project) 5.50% 5/1/36 (XLCA)		2,280,000		2,120,126
	(Johnson & Wales University Project)
	Series A 5.00% 4/1/28 (XLCA)		1,000,000		892,480
	(Liberty Common Charter School Project)
	5.125% 12/1/33 (XLCA)		2,740,000		2,490,002
	(Montessori Districts Charter School Projects)
	6.125% 7/15/32		5,590,000		5,203,061
	(Pinnacle Charter School Project) 5.00% 6/1/33 (XLCA)		2,170,000		1,940,631
	(University of Northern Colorado Student Housing Project)
	5.125% 7/1/37 (NATL-RE)		3,795,000		3,279,411
	(Woodrow Wilson Charter School Project)
	5.25% 12/1/34 (XLCA)		1,960,000		1,762,393
	Colorado School Mines Auxiliary Facilities
	5.00% 12/1/37 (AMBAC)		425,000		391,472
	University of Colorado Enterprise System Revenue
	Series A 5.00% 6/1/30 (AMBAC)		2,000,000		2,025,200
	University of Puerto Rico System Revenue Series Q
	5.00% 6/1/36		2,745,000		2,305,635
					24,315,041
Electric Revenue Bonds – 9.39%
	Colorado Springs Utilities Systems Improvement Revenue
	Series C 5.50% 11/15/48		3,250,000		3,325,335
	Colorado Springs Utilities Un-refunded Balance Revenue
	(Senior Lien) Series A 5.00% 11/15/29		3,895,000		3,862,009
	Platte River Power Authority Revenue Series HH
	5.00% 6/1/27		2,795,000		2,936,567
	5.00% 6/1/29		2,355,000		2,447,669

24

		Principal amount		Value
Municipal Bonds (continued)
Electric Revenue Bonds (continued)
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37	$	525,000	$	446,093
	Series WW 5.00% 7/1/28		2,400,000		2,213,808
	Series ZZ 5.00% 7/1/17		2,500,000		2,658,825
	Series ZZ 5.25% 7/1/26		3,500,000		3,399,270
					21,289,576
Healthcare Revenue Bonds – 21.00%
	Aurora Hospital Revenue
	(Children’s Hospital Association Project)
	Series A 5.00% 12/1/40		1,180,000		1,045,303
	Series D 5.00% 12/1/23 (AGM)		2,775,000		2,873,651
	Colorado Health Facilities Authority Revenue
	•(Adventist Health/Sunbelt) 5.125% 11/15/24		1,375,000		1,387,430
	(Catholic Health Initiatives)
	Series A 4.75% 9/1/40		1,000,000		857,470
	Series A 5.00% 7/1/16		1,702,033		1,705,522
	Series A 5.00% 7/1/39		1,540,000		1,403,279
	Series D 6.25% 10/1/33		2,000,000		2,099,540
	(Christian Living Community Project)
	Series A 5.75% 1/1/37		1,500,000		1,235,760
	(Covenant Retirement Communities)
	Series A 5.50% 12/1/33 (RADIAN)		5,000,000		4,314,199
	(Evangelical Lutheran)
	5.00% 6/1/35		2,000,000		1,804,900
	6.125% 6/1/38		5,250,000		5,276,249
	Series A 5.25% 6/1/34		2,750,000		2,538,195
	(Parkview Medical Center) 5.00% 9/1/25		1,000,000		955,950
	(Total Long-Term Care) Series A
	6.00% 11/15/30		100,000		93,843
	6.25% 11/15/40		750,000		704,813
	(Vail Valley Medical Center Project) 5.80% 1/15/27		3,475,000		3,453,386
	(Valley View Hospital Association) 5.50% 5/15/28		1,000,000		938,530
	Colorado Springs Hospital Revenue 6.25% 12/15/33		2,500,000		2,581,625
	Delta County Memorial Hospital District Enterprise
	Revenue 5.35% 9/1/17		4,000,000		4,028,920
	Denver Health & Hospital Authority Health Care Revenue
	5.625% 12/1/40		2,500,000		2,286,650
	Series A 4.75% 12/1/36		1,500,000		1,199,040

25

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	University of Colorado Hospital Authority Revenue Series A
	5.00% 11/15/37	$	2,690,000	$	2,330,643
	6.00% 11/15/29		2,460,000		2,508,191
					47,623,089
Housing Revenue Bonds – 2.18%
	Colorado Housing & Finance Authority
	(Multifamily Housing Insured Mortgage)
	Series C3 6.15% 10/1/41		1,590,000		1,590,684
	(Single Family Mortgage) Series A 5.50% 11/1/29
	(FHA) (VA) (HUD)		1,270,000		1,299,515
	Puerto Rico Housing Finance Authority
	Subordinate (Capital Foundation of Modernization)
	5.125% 12/1/27		2,040,000		2,050,200
					4,940,399
Lease Revenue Bonds – 3.61%
	Aurora Certificates of Participation Refunding
	Series A 5.00% 12/1/30		2,370,000		2,383,177
@	Conejos & Alamosa Counties School #11J
	Certificates of Participation 6.50% 4/1/11		355,000		355,852
	El Paso County Certificates of Participation
	(Detention Facilities Project)
	Series B 5.00% 12/1/27 (AMBAC)		1,500,000		1,501,635
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33		1,475,000		1,349,876
	•Series M-2 5.50% 7/1/35 (AMBAC)		1,000,000		1,049,510
	Regional Transportation District Certificates of
	Participation 5.375% 6/1/31		1,540,000		1,552,151
					8,192,201
Local General Obligation Bonds – 12.42%
	Adams & Arapahoe Counties Joint School
	District #28J (Aurora) 6.00% 12/1/28		2,500,000		2,775,050
	Arapahoe County Water & Wastewater Public
	Improvement District Refunding
	Series A 5.125% 12/1/32 (NATL-RE)		2,555,000		2,462,305

26

		Principal amount		Value
Municipal Bonds (continued)
Local General Obligation Bonds (continued)
	Denver City & County Justice System
	5.50% 8/1/16	$	2,000,000	$	2,373,760
	(Facilities & Zoo) 5.00% 8/1/19		1,020,000		1,126,621
	Denver City & County School District #1
	Series A 5.00% 12/1/29		960,000		1,003,181
	Denver City & County Series A 5.00% 8/1/25		750,000		819,375
	Denver West Metropolitan District
	5.00% 12/1/33 (RADIAN)		1,400,000		1,178,422
	Douglas County School District #1
	(Douglas & Elbert Counties)
	Series B 5.00% 12/15/24		2,355,000		2,482,617
	Garfield County School District #2
	5.00% 12/1/25 (AGM)		2,280,000		2,405,332
	Grand County School District #2 (East Grand)
	5.25% 12/1/25 (AGM)		2,485,000		2,611,014
	Gunnison Watershed School District #1J
	Series 2009 5.25% 12/1/33		1,400,000		1,461,026
	Jefferson County School District #R-001
	5.25% 12/15/24		2,500,000		2,827,600
	La Plata County School District #9-R (Durango)
	5.125% 11/1/24 (NATL-RE)		1,000,000		1,052,530
@	North Range Metropolitan
	District #1 4.50% 12/15/31 (ACA)		1,500,000		977,550
	District #2 5.50% 12/15/37		1,200,000		951,984
	Sand Creek Metropolitan District Refunding & Improvement
	5.00% 12/1/31 (XLCA)		500,000		419,400
	Weld County School District #4 5.00% 12/1/19 (AGM)		1,085,000		1,225,518
					28,153,285
§Pre-Refunded Bonds – 11.71%
	Colorado Educational & Cultural Facilities
	Authority Revenue
	(Arapahoe County Littleton Academy Charter School
	Project) 6.125% 1/15/31-12		2,000,000		2,098,840
	(Stargate Charter School Project) 6.125% 5/1/33-13		2,000,000		2,228,140
	Colorado Health Facilities Authority Revenue
	(Adventist Health/Sunbelt) 5.125% 11/15/24-16		75,000		88,862
	(Catholic Health Initiatives) Series A 5.50% 3/1/32-12		5,000,000		5,247,549

27

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Douglas County School District #1
	(Douglas & Elbert Counties)
	Series B 5.125% 12/15/25-12 (AGM)	$	2,000,000	$	2,156,980
	El Paso County School District #2 (Harrison)
	5.00% 12/1/27-12 (NATL-RE)		2,115,000		2,276,819
	Fremont County School District #1 (Canon City)
	5.00% 12/1/24-13 (NATL-RE)		1,735,000		1,937,839
	Garfield County School District #2
	5.00% 12/1/25-12 (AGM)		1,000,000		1,077,420
	Garfield Pitkin & Eagle County School District #Re-1
	(Roaring Fork County)
	Series A 5.00% 12/15/27-14 (AGM)		1,500,000		1,716,525
	Lincoln Park Metropolitan District 7.75% 12/1/26-11		2,500,000		2,669,425
	North Range Metropolitan District #1 7.25% 12/15/31-11		3,380,000		3,570,666
	Puerto Rico Commonwealth Series A 5.25% 7/1/30-16		1,235,000		1,465,920
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.25% 7/1/33-14		25,000		28,206
					26,563,191
Special Tax Revenue Bonds – 8.86%
	Aspen Sales Tax Revenue (Parks & Open Spaces)
	Series B 5.25% 11/1/23 (AGM)		2,040,000		2,145,937
@	Baptist Road Rural Transportation Authority Sales &
	Use Tax Revenue 5.00% 12/1/26		2,000,000		1,262,380
	Denver International Business Center
	Metropolitan District #1
	5.00% 12/1/30		350,000		326,249
	5.375% 12/1/35		1,750,000		1,637,493
	Park Meadows Business Improvement District
	Shared Sales Tax Revenue
	5.30% 12/1/27		950,000		800,280
	5.35% 12/1/31		720,000		584,820
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series K 5.00% 7/1/30		4,700,000		4,276,059

28

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	Puerto Rico Sales Tax Financing Corporation Revenue First
	Subordinate Series A
	5.25% 8/1/27	$	1,100,000	$	1,085,667
	5.75% 8/1/37		2,620,000		2,602,263
	Ω(Capital Appreciation) 6.75% 8/1/32		3,750,000		3,036,525
	Regional Transportation District Sales Tax Revenue
	Series A 5.25% 11/1/18		2,000,000		2,326,480
					20,084,153
State & Territory General Obligation Bonds – 7.39%
	Guam Government Series A 7.00% 11/15/39		2,500,000		2,612,250
	Puerto Rico Commonwealth
	Series A 5.25% 7/1/30		765,000		718,090
	Series A 5.50% 7/1/15		1,000,000		1,058,820
	Series B 5.00% 7/1/35		190,000		162,163
	Puerto Rico Commonwealth Government Development
	Bank Senior Notes
	Series B 5.00% 12/1/15		1,000,000		1,038,050
	Puerto Rico Commonwealth Public Improvement Series A
	5.25% 7/1/15		1,650,000		1,730,768
	5.25% 7/1/21		4,000,000		3,993,400
	5.50% 7/1/19 (NATL-RE) (IBC)		3,500,000		3,636,045
	Virgin Islands Public Finance Authority Revenue
	(Gross Receipts Taxes Loan Note)
	5.00% 10/1/31 (ACA)		2,000,000		1,804,580
					16,754,166
Transportation Revenue Bonds – 4.89%
	Denver City & County Airport Revenue
	5.25% 11/15/36		2,500,000		2,465,075
	Series A 5.00% 11/15/25 (FGIC) (NATL-RE)		2,000,000		2,041,680
	Series B 5.00% 11/15/33 (XLCA)		2,000,000		1,878,440
	E-470 Public Highway Authority
	5.25% 9/1/25		690,000		637,808
	5.375% 9/1/26		2,000,000		1,850,220
	Regional Transportation District Private Activity
	Revenue (Denver Transfers Partners)
	6.00% 1/15/41		2,400,000		2,215,872
					11,089,095

29

Statements of net assets
Delaware Tax-Free Colorado Fund

		Principal amount		Value
Municipal Bonds (continued)
Water & Sewer Revenue Bonds – 1.34%
	Eagle River Water & Sanitation District Enterprise Revenue
	5.00% 12/1/29 (ASSURED GTY)	$	250,000	$	262,365
	Guam Government Waterworks Authority 5.625% 7/1/40		1,955,000		1,729,608
	Pueblo Board Waterworks Revenue 5.00% 11/1/21 (AGM)		1,000,000		1,052,960
					3,044,933
Total Municipal Bonds (cost $219,335,312)					214,640,754
		Number of shares
Short-Term Investments – 5.05%
Money Market Instrument – 0.55%
	Dreyfus Cash Management Fund		1,236,788		1,236,788
					1,236,788
		Principal amount
¤Variable Rate Demand Notes – 4.50%
	Colorado Educational & Cultural Facilities Authority
	Revenue (National Jewish Federation Bond Program)
	0.21% 2/1/35	$	1,625,000		1,625,000
	Series A-8 0.21% 9/1/35		4,960,000		4,960,000
	Series A-12 0.21% 2/1/38		910,000		910,000
	Series D-3 0.21% 12/1/37		2,710,000		2,710,000
					10,205,000
Total Short-Term Investments (cost $10,531,788)					11,441,788
Total Value of Securities – 99.70%
	(cost $229,867,100)				226,082,542
Receivables and Other Assets
	Net of Liabilities – 0.30%				676,177
Net Assets Applicable to 21,629,797
	Shares Outstanding – 100.00%			$	226,758,719
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class A ($212,237,818 / 20,248,001 Shares)					$10.48
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class B ($992,950 / 94,651 Shares)					$10.49
Net Asset Value – Delaware Tax-Free Colorado Fund
	Class C ($13,527,951 / 1,287,145 Shares)					$10.51

30

Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	233,719,502
Distributions in excess of net investment income		(108	)
Accumulated net realized loss on investments		(3,176,117	)
Net unrealized depreciation of investments		(3,784,558	)
Total net assets	$	226,758,719

•	Variable rate security. The rate shown is the rate as of February 28, 2011. Interest rates reset periodically.
@	Illiquid security. At February 28, 2011, the aggregate amount of illiquid securities was $3,547,766, which represented 1.56% 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.
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

Summary of abbreviations:
ACA — Insured by American Capital Access
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
HUD — Housing and Urban Development Section 8
IBC — Insured by Integrity Building Corporation
NATL-RE — Insured by National Public Finance Guarantee Corporation
RADIAN — Insured by Radian Asset Assurance
VA — Veterans Administration Collateral
XLCA — Insured by XL Capital Assurance

31

Statements of net assets
Delaware Tax-Free Colorado Fund

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free Colorado Fund
Net asset value Class A (A)	$	10.48
Sales charge (4.50% of offering price) (B)		0.49
Offering price	$	10.97

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

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

32

Delaware Tax-Free Idaho Fund February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 96.62%
Corporate Revenue Bonds – 6.23%
	Nez Perce County Pollution Control Revenue
	(Potlatch Project) 6.00% 10/1/24	$	2,535,000	$	2,372,735
	Power County Industrial Development Revenue
	(FMC Project) 6.45% 8/1/32 (AMT)		2,000,000		2,003,660
	Power County Pollution Control Revenue
	(FMC Project) 5.625% 10/1/14		2,475,000		2,476,237
	Puerto Rico Ports Authority Special Facilities Revenue
	(American Airlines) Series A 6.30% 6/1/23 (AMT)		1,295,000		1,098,782
					7,951,414
Education Revenue Bonds – 11.10%
	Boise State University Revenue
	(General Refunding) Series A
	4.25% 4/1/32 (NATL-RE)		750,000		681,728
	5.00% 4/1/18 (NATL-RE) (FGIC)		1,500,000		1,586,910
	5.00% 4/1/39		1,000,000		985,110
	(Student Union & Housing System)
	5.00% 4/1/17 (AMBAC)		500,000		522,610
	Un-Refunded Series 07 5.375% 4/1/22 (FGIC)		10,000		10,318
	Idaho Housing & Financing Association Nonprofit
	Facilities Revenue (North Star Charter School Project)
	Series A 9.50% 7/1/39		1,000,000		1,087,300
	Idaho State University Revenue Refunding & Improvement
	5.00% 4/1/20 (AGM)		1,130,000		1,197,179
	5.00% 4/1/23 (AGM)		2,115,000		2,154,825
	University of Idaho (General Refunding)
	•Series 2011 5.25% 4/1/41		2,000,000		2,167,800
	Series A 5.00% 4/1/21 (AMBAC)		1,150,000		1,208,029
	•Series B 4.50% 4/1/41 (AGM)		1,000,000		1,044,900
	Series B 5.00% 4/1/28		1,000,000		1,024,180
	Series B 5.00% 4/1/32		500,000		500,340
					14,171,229
Electric Revenue Bonds – 4.23%
	Boise-Kuna Irrigation District Revenue
	(Arrowrock Hydroelectric Project) 6.30% 6/1/31		1,000,000		1,043,290
	Puerto Rico Electric Power Authority Revenue
	Series TT 5.00% 7/1/37		210,000		178,437
	Series XX 5.25% 7/1/40		2,000,000		1,744,460
	Series ZZ 5.25% 7/1/26		2,500,000		2,428,050
					5,394,237

33

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds – 4.81%
	Idaho Health Facilities Authority Revenue
	(St. Luke’s Health System Project) Series A
	6.50% 11/1/23	$	250,000	$	275,310
	6.75% 11/1/37		1,250,000		1,338,563
	(St. Luke’s Regional Medical Center Project)
	5.00% 7/1/35 (AGM)		2,500,000		2,379,875
	(Trinity Health Credit Group)
	Series B 6.125% 12/1/28		1,000,000		1,070,190
	Series D 4.50% 12/1/37		1,205,000		1,077,378
					6,141,316
Housing Revenue Bonds – 6.74%
	Idaho Housing Agency Single Family Mortgage Revenue
	Series A 6.05% 7/1/13 (AMBAC) (FHA) (VA) (AMT)		10,000		10,020
	Series A 6.10% 7/1/16 (FHA) (VA) (AMT)		20,000		20,032
	Series B 6.45% 7/1/15 (AMT)		10,000		10,021
	Series C-2 6.35% 7/1/15 (AMT)		5,000		5,010
	Series E 6.35% 7/1/15 (FHA) (AMT)		15,000		15,030
	Series G-2 6.15% 7/1/15 (FHA) (VA) (AMT)		45,000		45,083
	Idaho Housing & Finance Association Single Family
	Mortgage Revenue
	Series A Class II 4.375% 7/1/32		1,000,000		903,900
	Series B Class I 5.00% 7/1/37 (AMT)		815,000		756,459
	Series B Class I 5.50% 7/1/38		800,000		807,928
	Series C Class II 4.95% 7/1/31		1,000,000		970,970
	Series C Class III 5.35% 1/1/25 (AMT)		190,000		190,388
	Series D Class III 5.45% 7/1/23 (AMT)		675,000		683,667
	Series E 4.85% 7/1/28 (AMT)		1,385,000		1,316,289
	Series E Class III 4.875% 1/1/26 (AMT)		130,000		125,921
	Series E Class III 5.00% 1/1/28 (AMT)		795,000		782,415
	Series I Class I 5.45% 1/1/39 (AMT)		1,000,000		953,180
	Puerto Rico Housing Finance Authority Subordinate-
	Capital Foundation Modernization 5.125% 12/1/27		1,000,000		1,004,999
					8,601,312
Lease Revenue Bonds – 4.59%
	Boise City Certificates of Participation 5.375% 9/1/20
	(NATL-RE) (FGIC) (AMT)		2,100,000		2,100,882
	Boise City Revenue Series A 5.375% 12/1/31 (NATL-RE)		500,000		500,270
	Idaho Housing & Finance Association Revenue
	(TDF Facilities-PJ Recovery Zone) Series A 7.00% 2/1/36		1,500,000		1,503,075

34

		Principal amount		Value
Municipal Bonds (continued)
Lease Revenue Bonds (continued)
	Idaho State Building Authority Revenue
	Series A 5.00% 9/1/33 (XLCA)	$	1,000,000	$	990,660
	Series B 5.00% 9/1/21 (NATL-RE)		750,000		763,403
					5,858,290
Local General Obligation Bonds – 21.35%
	Ada & Canyon Counties Joint School District #2
	Meridian (School Board Guaranteed Program)
	4.50% 7/30/22		1,500,000		1,637,340
	4.75% 2/15/20		1,000,000		1,070,230
	5.50% 7/30/16		1,305,000		1,524,618
	Bannock County School District #25 Pocatello
	(School Board Guaranteed Program)
	5.00% 8/15/15		1,040,000		1,158,310
	5.00% 8/15/16		1,100,000		1,214,950
	Boise City Independent School District 5.00% 8/1/24 (AGM)		1,500,000		1,605,870
	Canyon County School District #132 Caldwell
	5.00% 7/30/15 (NATL-RE) (FGIC)		2,000,000		2,229,900
	Series A 5.00% 9/15/22 (AGM)		1,725,000		1,896,983
	Series A 5.00% 9/15/23 (AGM)		1,810,000		1,968,809
	Idaho Board Bank Authority Revenue
	Series A 5.00% 9/15/28		1,250,000		1,312,875
	Series A 5.25% 9/15/26		2,000,000		2,171,240
	Series C 4.00% 9/15/29		1,320,000		1,305,480
	Lemhi County 5.20% 8/1/27 (AGM)		2,145,000		2,172,156
	Nampa City Series B 5.00% 8/1/21 (NATL-RE) (FGIC)		2,475,000		2,603,402
	Power & Cassia Counties Joint School District #381
	American Falls 5.00% 8/1/17		1,155,000		1,176,079
	Twin Falls County School District #413
	Filer 5.25% 9/15/25		2,000,000		2,196,680
					27,244,922
§Pre-Refunded Bonds – 4.43%
	Ada & Canyon Counties Joint School District #2
	Meridian (School Board Guaranteed Program)
	5.00% 7/30/20-12		1,555,000		1,651,426
	Un-Refunded 5.00% 7/30/20-12		600,000		637,206
	Boise State University Revenue Refunding & Improvement
	(Student Union & Housing System)
	5.125% 4/1/31-12 (FGIC)		1,000,000		1,051,020

35

Statements of net assets
Delaware Tax-Free Idaho Fund

		Principal amount		Value
Municipal Bonds (continued)
§Pre-Refunded Bonds (continued)
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series D 5.25% 7/1/38-12	$	1,000,000	$	1,062,110
	Puerto Rico Electric Power Authority Revenue
	Series NN 5.125% 7/1/29-13		105,000		115,733
	Puerto Rico Public Buildings Authority Revenue
	(Guaranteed Government Facilities)
	Series I 5.50% 7/1/23-14		1,000,000		1,136,360
					5,653,855
Special Tax Revenue Bonds – 15.40%
	Coeur d’Alene Local Improvement District #6
	Series 1997 6.10% 7/1/12		40,000		40,520
	Series 1998 6.10% 7/1/14		45,000		45,455
	Idaho Board Bank Authority Revenue
	Series B 5.00% 9/15/30 (NATL-RE)		725,000		742,429
	Ketchum Urban Renewal Agency 5.50% 10/15/34		1,500,000		1,400,430
	Nampa Development Corporation Revenue 5.90% 3/1/30		3,000,000		2,750,130
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue
	Series K 5.00% 7/1/30		890,000		809,722
	Series W 5.50% 7/1/15		175,000		185,294
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate
	Ω(Capital Appreciation) Series A 6.75% 8/1/32		2,040,000		1,651,870
	Series A 5.25% 8/1/27		3,000,000		2,960,909
	Series A 5.50% 8/1/28		1,400,000		1,393,728
	Series A 5.50% 8/1/42		1,500,000		1,408,485
	Series A 5.75% 8/1/37		2,660,000		2,641,992
	Series C 5.25% 8/1/41		1,000,000		904,660
	Virgin Islands Public Finance Authority Revenue
	(Senior Lien-Matching Fund Loan Note) Series A		1,500,000		1,413,285
	5.00% 10/1/29
	5.25% 10/1/20		500,000		508,885
	5.25% 10/1/24		800,000		797,040
					19,654,834
State General Obligation Bonds – 5.45%
	Guam Government Series A 6.75% 11/15/29		1,565,000		1,619,963
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed 4.75% 12/1/15 (NATL-RE)		1,000,000		1,019,080

36

		Principal amount		Value
Municipal Bonds (continued)
State General Obligation Bonds (continued)
	Puerto Rico Commonwealth Public Improvement
	Series A 5.25% 7/1/22	$	1,000,000	$	987,330
	Un-Refunded Balance Series A
	5.00% 7/1/34		1,855,000		1,600,550
	5.125% 7/1/31		1,815,000		1,721,509
					6,948,432
Transportation Revenue Bonds – 8.65%
	Boise Airport Revenue (Air Terminal Facilities Project)
	5.75% 9/1/19 (AGM) (AMT)		1,000,000		1,108,570
	5.75% 9/1/20 (AGM) (AMT)		1,000,000		1,098,350
	Idaho Housing & Finance Association Grant Revenue
	(Anticipated Federal Highway Trust)
	4.00% 7/15/17		500,000		538,490
	4.75% 7/15/19		1,410,000		1,568,287
	5.00% 7/15/24 (NATL-RE)		2,000,000		2,072,260
	5.25% 7/15/20 (ASSURED GTY)		2,750,000		3,075,517
	5.25% 7/15/25 (ASSURED GTY)		1,500,000		1,581,465
					11,042,939
Water & Sewer Revenue Bonds – 3.64%
	Guam Government Waterworks Authority
	(Water & Wastewater System) 5.625% 7/1/40		1,565,000		1,384,571
	Idaho Board Bank Authority Revenue
	Series C 5.375% 9/15/38		1,000,000		1,026,780
	Moscow Sewer Revenue 5.00% 11/1/22 (AGM)		2,175,000		2,228,135
					4,639,486
Total Municipal Bonds (cost $122,467,619)					123,302,266
		Number of shares
Short-Term Investment – 2.19%
Money Market Instrument – 2.19%
	Dreyfus Cash Management Fund		2,795,028		2,795,028
Total Short-Term Investment
	(cost $2,795,028)				2,795,028

37

Statements of net assets
Delaware Tax-Free Idaho Fund

Total Value of Securities – 98.81%
(cost $125,262,647)	$	126,097,294
Receivables and Other Assets
Net of Liabilities – 1.19%		1,515,261
Net Assets Applicable to 11,259,840
Shares Outstanding – 100.00%	$	127,612,555
Net Asset Value – Delaware Tax-Free Idaho Fund
Class A ($90,434,903 / 7,977,516 Shares)			$11.34
Net Asset Value – Delaware Tax-Free Idaho Fund
Class B ($1,609,366 / 142,233 Shares)			$11.31
Net Asset Value – Delaware Tax-Free Idaho Fund
Class C ($35,568,286 / 3,140,091 Shares)			$11.33
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)	$	127,284,338
Distributions in excess of net investment income		(11,301		)
Accumulated net realized loss on investments		(495,129		)
Net unrealized appreciation of investments		834,647
Total net assets	$	127,612,555

 

•	Variable rate security. The rate shown is the rate as of February 28, 2011. 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.

38

Summary of abbreviations:
AGM — Insured by Assured Guaranty Municipal Corporation
AMBAC — Insured by AMBAC Assurance Corporation
AMT — Subject to Alternative Minimum Tax
ASSURED GTY — Insured by Assured Guaranty Corporation
FGIC — Insured by Financial Guaranty Insurance Company
FHA — Federal Housing Administration
NATL-RE — Insured by 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)	$	11.34
Sales charge (4.50% of offering price) (B)		0.53
Offering price	$	11.87

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

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

39

Statements of net assets
Delaware Tax-Free New York Fund	February 28, 2011 (Unaudited)

		Principal amount		Value
Municipal Bonds – 95.14%
Corporate Revenue Bonds – 6.60%
	Jefferson County Industrial Development Agency
	Solid Waste Disposal (International Paper)
	Series A 5.20% 12/1/20 (AMT)	$	350,000	$	338,405
	Liberty Development Corporation Revenue
	(Goldman Sachs Headquarters) 5.25% 10/1/35		750,000		735,749
	Nassau County Tobacco Settlement Refunding
	(Asset-Backed) Series A-3 5.125% 6/1/46		600,000		397,374
•	New York City Industrial Development Agency
	Special Facilities Revenue (American Airlines-JFK
	International Airport)
	7.625% 8/1/25 (AMT)		250,000		254,715
	7.75% 8/1/31 (AMT)		250,000		255,765
	New York Energy Research & Development Authority
	Pollution Control Revenue (Central Hudson Gas)
	Series A 5.45% 8/1/27 (AMBAC)		500,000		500,215
	New York Liberty Development Corporation Revenue
	(Second Priority-Bank American Tower)
	5.625% 7/15/47		500,000		480,190
	Suffolk County Industrial Development Agency Revenue
	(Keyspan-Port Jefferson Energy Center)
	5.25% 6/1/27 (AMT)		250,000		238,870
	TSASC Tobacco Settlement Refunding (Asset-Backed)
	Series 1 5.125% 6/1/42		250,000		167,658
					3,368,941
Education Revenue Bonds – 24.65%
	Albany Industrial Development Agency Civic Facilities
	Revenue (Brighter Choice Charter School)
	Series A 5.00% 4/1/37		250,000		185,660
	Dutchess County Industrial Development Agency
	(Marist College) 5.00% 7/1/20		500,000		512,570
	Hempstead Town Local Development Corporation
	Revenue (Molloey College Project)
	5.75% 7/1/23		400,000		432,404
	Madison County Capital Resource Corporation
	Revenue (Colgate University Project)
	Series A 5.00% 7/1/28		400,000		416,796
•	New York City Trust for Cultural Resources Revenue
	(Julliard School) Series C 2.10% 4/1/36		500,000		502,585

40

		Principal amount		Value
Municipal Bonds (continued)
Education Revenue Bonds (continued)
	New York State Dormitory Authority Revenue
	(Brooklyn Law School) 5.75% 7/1/33	$	340,000	$	352,267
	(Columbia University)
	5.00% 10/1/19		500,000		591,009
	Series A 5.00% 7/1/23		500,000		526,700
	(Cornell University) Series A
	4.75% 7/1/29		100,000		102,031
	5.00% 7/1/23		500,000		549,275
	5.00% 7/1/34		170,000		172,479
	(Manhattan Marymount) 5.00% 7/1/24		350,000		344,789
	(Mt. Sinai School Medicine) 5.125% 7/1/39		500,000		460,765
	Series A 5.00% 7/1/21		685,000		724,229
	(New York University)
	Series A 5.25% 7/1/34		500,000		506,875
	(Rockefeller University) Series A 5.00% 7/1/27		250,000		263,130
	•Series B 5.25% 11/15/23		250,000		262,005
	Series B 7.50% 5/15/11		125,000		126,866
	(Skidmore College) Series A 5.00% 7/1/21		325,000		360,133
	(St. Joseph’s College) 5.25% 7/1/25		500,000		501,565
	(Teachers College) 5.50% 3/1/39		250,000		253,065
	(University of Rochester)
	Series A 5.125% 7/1/39		250,000		246,308
	ΩSeries A-2 4.375% 7/1/20		250,000		252,795
	Onondaga Civic Development Corporation Revenue
	(Le Moyne College Project) 5.20% 7/1/29		500,000		477,215
	Onondaga County Trust for Cultural Research
	Revenue (Syracuse University Project)
	Series B 5.00% 12/1/19		350,000		393,533
	St. Lawrence County Industrial Development Agency
	Civic Facility Revenue (St. Lawrence University)
	Series A 5.00% 10/1/16		500,000		563,175
	Suffolk County Industrial Development Agency
	Civic Facility Revenue (New York Institute of
	Technology Project) 5.00% 3/1/26		600,000		583,643
	Tompkins County Industrial Development Agency Civic
	Facility Revenue (Cornell University)
	Series A 5.00% 7/1/20		500,000		579,600

41

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	$	466,580
	Yonkers Economic Development Corporation Education
	Revenue (Charter School of Educational Excellence)
	Series A 6.25% 10/15/40		600,000		531,168
	Yonkers Industrial Development Agency Civic Facility Revenue
	(Sarah Lawrence) Series A 6.00% 6/1/29		325,000		335,420
					12,576,635
Electric Revenue Bonds – 3.55%
	Long Island Power Authority New York Electric
	System Revenue
	Series A 5.75% 4/1/39		350,000		360,003
	Series B 5.75% 4/1/33		250,000		259,475
	Puerto Rico Electric Power Authority Revenue
	Series WW 5.00% 7/1/28		190,000		175,260
	Series ZZ 5.00% 7/1/17		500,000		531,765
	Series ZZ 5.25% 7/1/26		500,000		485,610
					1,812,113
Healthcare Revenue Bonds – 11.40%
	Albany Industrial Development Agency Civic Facility
	Revenue (St. Peter’s Hospital Project)
	Series A 5.25% 11/15/32		500,000		449,175
	East Rochester Housing Authority Revenue
	(Senior Living-Woodland Village Project)
	5.50% 8/1/33		200,000		157,246
	Monroe County Industrial Development Corporation
	Insured Mortgage Revenue (University Hospital of
	Rochester Project) 5.50% 8/15/40 (FHA)		600,000		610,392
	New York City Health & Hospital Corporation Revenue
	(Health System) Series A 5.00% 2/15/30		500,000		481,025
	New York Dormitory Authority Revenue
	(Catholic Health Long Island Obligation Group)
	5.00% 7/1/27		400,000		385,268
	(Chapel Oaks) 5.45% 7/1/26 (LOC, Allied Irish Bank)		450,000		450,311
	(Winthrop South Nassau Hospital)
	Series B 5.50% 7/1/23		500,000		504,325

42

		Principal amount		Value
Municipal Bonds (continued)
Healthcare Revenue Bonds (continued)
	New York Dormitory Authority Revenue
	Non-State Supported Debt (Memorial Sloan-Kettering)
	Series 1 5.00% 7/1/35	$	225,000	$	222,487
	Series A-2 5.00% 7/1/26		500,000		510,435
	(Mt. Sinai Hospital) Series A 5.00% 7/1/26		600,000		599,004
	(North Shore Long Island Jewish Group)
	Series A 5.50% 5/1/37		500,000		487,770
	(Orange Regional Medical Center) 6.125% 12/1/29		365,000		346,082
	Suffolk County Economic Development Corporation Revenue
	(Peconic Landing at Southhold) 6.00% 12/1/40		650,000		611,428
					5,814,948
Housing Revenue Bonds – 1.36%
	New York City Housing Development Multifamily Housing
	Revenue Series G-1 4.875% 11/1/39 (AMT)		250,000		224,258
	New York Mortgage Agency Revenue 44th
	Series 4.35% 10/1/24 (AMT)		500,000		468,670
					692,928
Lease Revenue Bonds – 6.48%
	Battery Park City Authority Revenue Series A 5.00% 11/1/26		250,000		257,870
	Erie County Industrial Development Agency
	School Faculty Revenue (City School District Buffalo)
	Series A 5.25% 5/1/25		500,000		526,080
	New York City Industrial Development Agency
	Revenue (Queens Baseball Stadium-Pilot)
	5.00% 1/1/46 (AMBAC)		500,000		392,200
	New York City Industrial Development Agency
	Special Airport Facility Revenue (Airis JFK I Project)
	Series A 5.50% 7/1/28 (AMT)		500,000		425,970
	Onondaga County Industrial Development Authority
	Revenue Subordinated
	(Air Cargo) 7.25% 1/1/32 (AMT)		500,000		449,415
	Tobacco Settlement Financing Authority
	Revenue (Asset-Backed) Series B-1C
	5.50% 6/1/20		200,000		214,204
	5.50% 6/1/21		500,000		534,240
	United Nations Development Corporation
	Revenue Series A 5.00% 7/1/26		500,000		509,010
					3,308,989

43

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount			Value
Municipal Bonds (continued)
Local General Obligation Bonds – 3.35%
	New York City
	Series C-1 5.00% 10/1/19	$	500,000	$	553,465
	Series D 5.00% 11/1/34		125,000		124,561
	Series I-1 5.375% 4/1/36		500,000		509,165
	New York State Dormitory Authority Revenue Non-State
	Supported Debt (School Districts-Financing Program)
	Series A 5.00% 10/1/25 (AGM)		500,000		520,070
					1,707,261
§Pre-Refunded Bonds – 2.83%
	New York Dormitory Authority Revenue (North Shore
	Long Island Jewish Group Project) 5.50% 5/1/33-13		500,000		552,490
	Puerto Rico Commonwealth Highway &
	Transportation Authority Revenue
	Series Y 5.50% 7/1/36-16		475,000		569,876
	Puerto Rico Commonwealth Series B 5.25% 7/1/32-16		155,000		183,982
	Puerto Rico Electric Power Authority Revenue
	Series NN 5.125% 7/1/29-13		125,000		137,778
					1,444,126
Special Tax Revenue Bonds – 17.14%
	Brooklyn Arena Local Development Corporation Pilot
	Revenue (Barclays Center Project) 6.50% 7/15/30		500,000		509,740
	Metropolitan Transportation Authority Revenue
	(Dedicated Tax Fund) Series B 5.00% 11/15/34		500,000		491,100
	New York City Transitional Finance Authority Revenue
	(Future Tax Secured)
	(Fiscal 2011) Series D
	5.00% 2/1/26		250,000		264,113
	5.25% 2/1/29		500,000		530,350
	Series B 5.00% 11/1/18		500,000		561,810
	Series C 5.25% 11/1/25		500,000		544,055
	New York City Trust for Cultural Resources Revenue
	(Museum Modern Art) Series A1
	5.00% 10/1/17		450,000		512,105
	5.00% 4/1/31		250,000		253,855
	New York Dormitory Authority State Personal Income Tax
	Revenue Series C 5.00% 3/15/15		250,000		282,898

44

		Principal amount		Value
Municipal Bonds (continued)
Special Tax Revenue Bonds (continued)
	New York Dormitory Authority State Supported Debt
	Revenue (Consolidated Services Contract)
	5.00% 7/1/17 (AGM)	$	500,000	$	557,675
	New York Sales Tax Asset Receivables
	Series A 5.25% 10/15/27 (AMBAC)		500,000		524,900
	New York State Thruway Authority State Personal
	Income Tax Revenue (Transportation)
	Series A 5.00% 3/15/30		500,000		515,495
	New York State Urban Development Revenue
	Personal Income Tax Series A-1 5.00% 12/15/22		250,000		271,190
	Puerto Rico Commonwealth Highway & Transportation
	Authority Revenue Series K 5.00% 7/1/30		735,000		668,702
	Puerto Rico Commonwealth Infrastructure Financing
	Authority Revenue Series B 5.00% 7/1/15		250,000		261,943
	Puerto Rico Sales Tax Financing Corporation Revenue
	First Subordinate Series A
	5.75% 8/1/37		600,000		595,938
	Ω(Capital Appreciation) 6.75% 8/1/32		510,000		412,967
	Schenectady Metroplex Development Authority Revenue
	Series A 5.375% 12/15/21		500,000		514,130
	Virgin Islands Public Finance Authority Revenue
	(Matching Fund Loan Note-Senior Lien)
	Series A 5.00% 10/1/29		500,000		471,095
					8,744,061
State & Territory General Obligation Bonds – 6.00%
	City of New York
	Series C 5.00% 8/1/16		500,000		566,100
	Series E 5.00% 8/1/28		125,000		128,640
	Guam Government Series A 7.00% 11/15/39		395,000		412,736
	New York State Series A
	5.00% 2/15/18		380,000		439,922
	5.00% 3/1/38		500,000		501,025
	Puerto Rico Commonwealth Government Development
	Bank Refunding Remarketed
	4.75% 12/1/15 (NATL-RE)		230,000		234,388
	Puerto Rico Commonwealth Public Improvement
	Refunding Series A 5.50% 7/1/19 (NATL-RE) (IBC)		750,000		779,153
					3,061,964

45

Statements of net assets
Delaware Tax-Free New York Fund

		Principal amount		Value
Municipal Bonds (continued)
Transportation Revenue Bonds – 8.62%
	Albany Parking Authority Revenue Series A 5.625% 7/15/25	$	555,000	$	558,175
	Metropolitan Transportation Authority Revenue
	Series 2008C 6.50% 11/15/28		200,000		223,188
	•Series B 5.00% 11/15/27		200,000		216,666
	Series B 5.25% 11/15/22		500,000		547,035
	Series D 5.25% 11/15/27		500,000		507,370
	Series F 5.00% 11/15/15		150,000		165,617
	New York State Thruway Authority General Revenue
	(Bond Antics Notes) Series H
	5.00% 1/1/14 (NATL-RE)		500,000		544,625
	5.00% 1/1/15 (NATL-RE)		250,000		276,275
	Port Authority New York & New Jersey
	(Consolidated-One Hundred Fifty-Third) 5.00% 7/15/35		250,000		247,725
	(JFK International Air Terminal) 6.00% 12/1/42		700,000		682,289
	Triborough Bridge & Tunnel Authority Revenue
	•Series B-1 5.00% 11/15/25		200,000		218,002
	Series C 5.00% 11/15/24		200,000		211,504
					4,398,471
Water & Sewer Revenue Bonds – 3.16%
	Guam Government Waterworks Authority 5.625% 7/1/40		470,000		415,814
	New York City Municipal Water Finance Authority
	Water & Sewer System Revenue
	(Fiscal 2009) Series A 5.75% 6/15/40		200,000		211,376
	(Second General Resolution) Series FF 5.00% 6/15/31		500,000		510,590
	Series FF-2 5.50% 6/15/40		250,000		257,785
	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		218,456
					1,614,021
Total Municipal Bonds (cost $48,439,965)					48,544,458
Short-Term Investment – 3.33%
¤Variable Rate Demand Note – 3.33%
	City of New York Series C 0.17% 10/1/23		1,700,000		1,700,000
Total Short-Term Investment (cost $1,700,000)					1,700,000

46

Total Value of Securities – 98.47%
	(cost $50,139,965)	$	50,244,458
Receivables and Other Assets
	Net of Liabilities – 1.53%		779,340
Net Assets Applicable to 4,915,713
	Shares Outstanding – 100.00%	$	51,023,798
Net Asset Value – Delaware Tax-Free New York Fund
	Class A ($36,615,324 / 3,525,167 Shares)			$10.39
Net Asset Value – Delaware Tax-Free New York Fund
	Class B ($587,091 / 56,646 Shares)			$10.36
Net Asset Value – Delaware Tax-Free New York Fund
	Class C ($13,821,383 / 1,333,900 Shares)			$10.36
Components of Net Assets at February 28, 2011:
Shares of beneficial interest (unlimited authorization – no par)		$	51,325,823
Distributions in excess of net investment income			(651		)
Accumulated net realized loss on investments			(405,867		)
Net unrealized appreciation of investments			104,493
Total net assets		$	51,023,798

 

•	Variable rate security. The rate shown is the rate as of February 28, 2011. 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. 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.”
¤	Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.

47

Statements of net assets
Delaware Tax-Free New York Fund

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

Net Asset Value and Offering Price Per Share –
Delaware Tax-Free New York Fund
Net asset value Class A (A)	$	10.39
Sales charge (4.50% of offering price) (B)		0.49
Offering price	$	10.88

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

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

48

Statements of operations
	Six Months Ended February 28, 2011 (Unaudited)

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
Investment Income:
Interest		$	2,716,539			$	2,312,070			$	6,046,066
Expenses:
Management fees			276,860				242,532				654,431
Distribution expenses – Class A			126,667				88,473				278,223
Distribution expenses – Class B			10,327				11,867				5,959
Distribution expenses – Class C			37,379				75,142				72,138
Dividend disbursing and transfer agent
fees and expenses			31,970				28,463				62,674
Accounting and administration expenses			21,987				17,380				46,896
Audit and tax			8,521				7,509				11,917
Registration fees			7,843				4,112				4,243
Reports and statements to shareholders			7,557				5,906				12,435
Legal fees			7,256				4,163				10,719
Pricing fees			4,279				5,071				5,702
Trustees’ fees			3,065				2,437				6,618
Insurance fees			2,939				1,791				5,624
Custodian fees			1,172				812				2,463
Consulting fees			708				434				1,380
Trustees’ expenses			232				177				479
Dues and services			90				178				—
			548,852				496,447				1,181,901
Less fees waived			(15,726	)			(68,477	)			(35,116	)
Less expense paid indirectly			(64	)			(45	)			(141	)
Total operating expenses			533,062				427,925				1,146,644
Net Investment Income			2,183,477				1,884,145				4,899,422
Net Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on investments			84,334				(937,387	)			(187,982	)
Net change in unrealized appreciation/
depreciation of investments			(7,848,679	)			(6,818,832	)			(17,330,960	)
Net Realized and Unrealized Loss
on Investments			(7,764,345	)			(7,756,219	)			(17,518,942	)
Net Decrease in Net Assets
Resulting from Operations		$	(5,580,868	)		$	(5,872,074	)		$	(12,619,520	)

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

50

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
Investment Income:
Interest		$	3,174,744			$	1,210,255
Expenses:
Management fees			371,115				143,401
Distribution expenses – Class A			121,432				46,967
Distribution expenses – Class B			9,517				3,252
Distribution expenses – Class C			179,695				69,090
Dividend disbursing and transfer agent
fees and expenses			36,779				23,116
Accounting and administration expenses			26,594				10,276
Reports and statements to shareholders			9,139				4,614
Audit and tax			8,930				6,661
Pricing fees			5,537				6,541
Legal fees			5,063				2,477
Trustees’ fees			3,752				1,435
Registration fees			3,459				6,202
Insurance fees			3,233				771
Custodian fees			1,360				598
Consulting fees			679				167
Trustees’ expenses			142				99
Dues and services			—				1,895
			786,426				327,562
Less fees waived			(17,265	)			(64,480	)
Less expense paid indirectly			(76	)			(28	)
Total operating expenses			769,085				263,054
Net Investment Income			2,405,659				947,201
Net Realized and Unrealized Loss
on Investments:
Net realized loss on investments			(438,472	)			(373,350	)
Net change in unrealized appreciation/
depreciation of investments			(8,915,541	)			(3,476,164	)
Net Realized and Unrealized Loss
on Investments			(9,354,013	)			(3,849,514	)
Net Decrease in Net Assets
Resulting from Operations		$	(6,948,354	)		$	(2,902,313	)

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

51

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,183,477		$	4,707,241
Net realized gain on investments		84,334			1,415,533
Net change in unrealized
appreciation/depreciation of investments		(7,848,679	)		5,624,262
Net increase (decrease) in net assets
resulting from operations		(5,580,868	)		11,747,036
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(2,020,269	)		(4,303,466	)
Class B		(33,247	)		(142,123	)
Class C		(121,013	)		(242,383	)
Net realized gain on investments:
Class A		(250,507	)		—
Class B		(5,139	)		—
Class C		(18,335	)		—
		(2,448,510	)		(4,687,972	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		7,499,316			5,867,126
Class B		395			66
Class C		446,777			1,248,843
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,252,864			2,128,544
Class B		22,804			73,667
Class C		87,940			150,229
		9,310,096			9,468,475

52

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(12,234,253	)	$	(19,829,331	)
Class B		(1,136,909	)		(3,923,060	)
Class C		(993,654	)		(1,103,623	)
		(14,364,816	)		(24,856,014	)
Decrease in net assets derived from
capital share transactions		(5,054,720	)		(15,387,539	)
Net Decrease in Net Assets		(13,084,098	)		(8,328,475	)
Net Assets:
Beginning of period		119,126,472			127,454,947
End of period1	$	106,042,374		$	119,126,472
1Including undistributed net investment income	$	26,196		$	26,196

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

53

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,884,145		$	3,591,752
Net realized loss on investments		(937,387	)		(292,440	)
Net change in unrealized
appreciation/depreciation of investments		(6,818,832	)		7,517,014
Net increase (decrease) in net assets
resulting from operations		(5,872,074	)		10,816,326
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,560,712	)		(2,925,853	)
Class B		(43,232	)		(146,321	)
Class C		(275,196	)		(516,624	)
		(1,879,140	)		(3,588,798	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		9,407,032			15,942,030
Class B		26			140,364
Class C		2,381,082			3,335,303
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		962,914			1,696,001
Class B		32,465			105,254
Class C		198,851			357,093
		12,982,370			21,576,045

54

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(11,688,627	)	$	(11,521,238	)
Class B		(1,128,838	)		(2,270,312	)
Class C		(2,301,060	)		(2,930,338	)
		(15,118,525	)		(16,721,888	)
Increase (decrease) in net assets derived from
capital share transactions		(2,136,155	)		4,854,157
Net Increase (Decrease) in Net Assets		(9,887,369	)		12,081,685
Net Assets:
Beginning of period		91,681,583			79,599,898
End of period1	$	81,794,214		$	91,681,583
1Including undistributed net investment income	$	18,763		$	18,763

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

55

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	4,899,422		$	10,219,749
Net realized gain (loss) on investments		(187,982	)		2,102,920
Net change in unrealized
appreciation/depreciation of investments		(17,330,960	)		12,877,406
Net increase (decrease) in net assets
resulting from operations		(12,619,520	)		25,200,075
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(4,627,905	)		(9,708,463	)
Class B		(20,220	)		(71,622	)
Class C		(245,891	)		(467,286	)
		(4,894,016	)		(10,247,371	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		5,309,558			15,893,257
Class B		267			—
Class C		1,266,904			4,043,038
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		3,107,317			6,184,316
Class B		12,824			36,966
Class C		186,408			340,428
		9,883,278			26,498,005

56

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(17,373,904	)	$	(24,936,523	)
Class B		(358,483	)		(1,418,824	)
Class C		(2,007,808	)		(1,594,446	)
		(19,740,195	)		(27,949,793	)
Decrease in net assets derived from
capital share transactions		(9,856,917	)		(1,451,788	)
Net Increase (Decrease) in Net Assets		(27,370,453	)		13,500,916
Net Assets:
Beginning of period		254,129,172			240,628,256
End of period1	$	226,758,719		$	254,129,172
1Including distributions in excess of
net investment income	$	108		$	—

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

57

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	2,405,659		$	4,299,917
Net realized gain (loss) on investments		(438,472	)		89,825
Net change in unrealized
appreciation/depreciation of investments		(8,915,541	)		6,715,627
Net increase (decrease) in net assets
resulting from operations		(6,948,354	)		11,105,369
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(1,825,908	)		(3,460,797	)
Class B		(28,483	)		(86,212	)
Class C		(542,646	)		(781,910	)
Net realized gain on investments:
Class A		(58,688	)		—
Class B		(1,213	)		—
Class C		(22,123	)		—
		(2,479,061	)		(4,328,919	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		8,842,344			18,620,022
Class B		—			9,917
Class C		6,847,862			17,105,840
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		1,400,641			2,431,970
Class B		24,103			62,082
Class C		447,300			568,025
		17,562,250			38,797,856

58

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(17,297,738	)	$	(8,321,667	)
Class B		(728,329	)		(1,131,494	)
Class C		(4,823,813	)		(2,773,980	)
		(22,849,880	)		(12,227,141	)
Increase (decrease) in net assets derived from
capital share transactions		(5,287,630	)		26,570,715
Net Increase (Decrease) in Net Assets		(14,715,045	)		33,347,165
Net Assets:
Beginning of period		142,327,600			108,980,435
End of period1	$	127,612,555		$	142,327,600
1Including distributions in excess of
net investment income	$	11,301		$	11,219

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

59

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

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	947,201		$	1,464,883
Net realized loss on investments		(373,350	)		(26,599	)
Net change in unrealized
appreciation/depreciation of investments		(3,476,164	)		2,648,873
Net increase (decrease) in net assets
resulting from operations		(2,902,313	)		4,087,157
Dividends and Distributions to Shareholders from:
Net investment income:
Class A		(720,994	)		(1,144,578	)
Class B		(10,012	)		(25,736	)
Class C		(213,346	)		(290,855	)
		(944,352	)		(1,461,169	)
Capital Share Transactions:
Proceeds from shares sold:
Class A		6,857,330			16,389,706
Class B		—			9,343
Class C		3,067,254			8,918,180
Net asset value of shares issued upon reinvestment
of dividends and distributions:
Class A		512,870			717,620
Class B		7,365			15,971
Class C		162,336			198,252
		10,607,155			26,249,072

60

	Six Months			Year
	Ended			Ended
	2/28/11			8/31/10
	(Unaudited)
Capital Share Transactions (continued):
Cost of shares repurchased:
Class A	$	(5,681,316	)	$	(4,117,174	)
Class B		(108,464	)		(362,784	)
Class C		(1,861,226	)		(1,929,785	)
		(7,651,006	)		(6,409,743	)
Increase in net assets derived from
capital share transactions		2,956,149			19,839,329
Net Increase (Decrease) in Net Assets		(890,516	)		22,465,317
Net Assets:
Beginning of period		51,914,314			29,448,997
End of period1	$	51,023,798		$	51,914,314
1Including distributions in excess of
net investment income	$	651		$	651

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

61

Financial highlights
Delaware Tax-Free Arizona Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

62

Six Months Ended				Year Ended
2/28/111					8/31/10			8/31/09			8/31/08			8/31/07			8/31/06
(Unaudited)
	$	11.760			$	11.090		$	10.930		$	11.070		$	11.350		$	11.560
		0.224				0.447			0.431			0.444			0.465			0.467
		(0.784	)			0.668			0.158			(0.140	)		(0.280	)		(0.210	)
		(0.560	)			1.115			0.589			0.304			0.185			0.257
		(0.223	)			(0.445	)		(0.429	)		(0.444	)		(0.465	)		(0.467	)
		(0.027	)			—			—			—			—			—
		(0.250	)			(0.445	)		(0.429	)		(0.444	)		(0.465	)		(0.467	)
	$	10.950			$	11.760		$	11.090		$	10.930		$	11.070		$	11.350
		(4.79%	)			10.27%			5.64%			2.78%			1.63%			2.31%
	$	97,408			$	108,214		$	113,689		$	122,027		$	125,636		$	131,468
		0.90%				0.86%			0.75%			0.75%			0.76%			0.76%
		0.93%				0.92%			0.91%			0.91%			0.91%			0.91%
		4.01%				3.94%			4.07%			4.02%			4.11%			4.12%
		3.98%				3.88%			3.91%			3.86%			3.96%			3.97%
		6%				15%			27%			29%			9%			8%

63

Financial highlights
Delaware Tax-Free Arizona Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

64

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.760		$11.100		$10.940		$11.070		$11.360		$11.570
	0.182		0.362		0.352		0.361		0.380		0.382
	(0.774	)	0.658		0.158		(0.130	)	(0.290	)	(0.210	)
	(0.592	)	1.020		0.510		0.231		0.090		0.172
	(0.181	)	(0.360	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)
	(0.027	)	—		—		—		—		—
	(0.208	)	(0.360	)	(0.350	)	(0.361	)	(0.380	)	(0.382	)
	$10.960		$11.760		$11.100		$10.940		$11.070		$11.360
	(5.05%	)	9.35%		4.85%		2.10%		0.78%		1.54%
	$1,647		$2,917		$6,509		$9,620		$12,407		$16,413
	1.65%		1.61%		1.50%		1.50%		1.51%		1.51%
	1.68%		1.67%		1.66%		1.66%		1.66%		1.66%
	3.26%		3.19%		3.32%		3.27%		3.36%		3.37%
	3.23%		3.13%		3.16%		3.11%		3.21%		3.22%
	6%		15%		27%		29%		9%		8%

65

Financial highlights
Delaware Tax-Free Arizona Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

66

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.790		$11.120		$10.960		$11.090		$11.380		$11.580
	0.182		0.363		0.352		0.361		0.380		0.381
	(0.784	)	0.668		0.158		(0.130	)	(0.290	)	(0.200	)
	(0.602	)	1.031		0.510		0.231		0.090		0.181
	(0.181	)	(0.361	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)
	(0.027	)	—		—		—		—		—
	(0.208	)	(0.361	)	(0.350	)	(0.361	)	(0.380	)	(0.381	)
	$10.980		$11.790		$11.120		$10.960		$11.090		$11.380
	(5.12%	)	9.43%		4.84%		2.09%		0.77%		1.63%
	$6,987		$7,995		$7,257		$8,806		$7,609		$8,117
	1.65%		1.61%		1.50%		1.50%		1.51%		1.51%
	1.68%		1.67%		1.66%		1.66%		1.66%		1.66%
	3.26%		3.19%		3.32%		3.27%		3.36%		3.37%
	3.23%		3.13%		3.16%		3.11%		3.21%		3.22%
	6%		15%		27%		29%		9%		8%

67

Financial highlights
Delaware Tax-Free California Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

68

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.570		$10.620		$10.800		$11.010		$11.400		$11.490
	0.242		0.497		0.448		0.449		0.454		0.450
	(0.951	)	0.950		(0.182	)	(0.210	)	(0.390	)	(0.090	)
	(0.709	)	1.447		0.266		0.239		0.064		0.360
	(0.241	)	(0.497	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)
	(0.241	)	(0.497	)	(0.446	)	(0.449	)	(0.454	)	(0.450	)
	$10.620		$11.570		$10.620		$10.800		$11.010		$11.400
	(6.17%	)	13.92%		2.74%		2.21%		0.51%		3.24%
	$65,349		$72,902		$61,132		$67,174		$76,537		$75,995
	0.82%		0.82%		0.88%		0.88%		0.89%		0.88%
	0.98%		0.98%		0.97%		0.97%		0.97%		0.97%
	4.42%		4.48%		4.42%		4.11%		3.98%		3.97%
	4.26%		4.32%		4.33%		4.02%		3.90%		3.88%
	17%		35%		59%		34%		21%		14%

69

Financial highlights
Delaware Tax-Free California Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

        prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

        prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

70

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.610		$10.670		$10.840		$11.060		$11.440		$11.530
	0.202		0.416		0.373		0.367		0.368		0.365
	(0.941	)	0.940		(0.172	)	(0.220	)	(0.380	)	(0.090	)
	(0.739	)	1.356		0.201		0.147		(0.012	)	0.275
	(0.201	)	(0.416	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
	(0.201	)	(0.416	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
	$10.670		$11.610		$10.670		$10.840		$11.060		$11.440
	(6.40%	)	12.93%		2.07%		1.34%		(0.15%	)	2.46%
	$1,949		$3,254		$4,938		$6,589		$9,384		$14,918
	1.57%		1.57%		1.63%		1.63%		1.64%		1.63%
	1.73%		1.73%		1.72%		1.72%		1.72%		1.72%
	3.67%		3.73%		3.67%		3.36%		3.23%		3.22%
	3.51%		3.57%		3.58%		3.27%		3.15%		3.13%
	17%		35%		59%		34%		21%		14%

71

Financial highlights
Delaware Tax-Free California Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

72

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.590		$10.640		$10.810		$11.030		$11.420		$11.500
	0.202		0.415		0.373		0.367		0.368		0.365
	(0.951	)	0.950		(0.172	)	(0.220	)	(0.390	)	(0.080	)
	(0.749	)	1.365		0.201		0.147		(0.022	)	0.285
	(0.201	)	(0.415	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
	(0.201	)	(0.415	)	(0.371	)	(0.367	)	(0.368	)	(0.365	)
	$10.640		$11.590		$10.640		$10.810		$11.030		$11.420
	(6.50%	)	13.06%		2.07%		1.35%		(0.24%	)	2.56%
	$14,496		$15,526		$13,530		$14,991		$13,453		$12,768
	1.57%		1.57%		1.63%		1.63%		1.64%		1.63%
	1.73%		1.73%		1.72%		1.72%		1.72%		1.72%
	3.67%		3.73%		3.67%		3.36%		3.23%		3.22%
	3.51%		3.57%		3.58%		3.27%		3.15%		3.13%
	17%		35%		59%		34%		21%		14%

73

Financial highlights
Delaware Tax-Free Colorado Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

74

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.260		$10.600		$10.640		$10.730		$11.040		$11.200
	0.223		0.455		0.452		0.448		0.464		0.488
	(0.780	)	0.661		(0.041	)	(0.089	)	(0.310	)	(0.160	)
	(0.557	)	1.116		0.411		0.359		0.154		0.328
	(0.223	)	(0.456	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)
	(0.223	)	(0.456	)	(0.451	)	(0.449	)	(0.464	)	(0.488	)
	$10.480		$11.260		$10.600		$10.640		$10.730		$11.040
	(4.97%	)	10.74%		4.11%		3.38%		1.38%		3.03%
	$212,238		$237,545		$226,393		$234,630		$246,695		$258,773
	0.91%		0.93%		0.90%		0.93%		0.94%		0.93%
	0.94%		0.95%		0.95%		0.95%		0.96%		0.94%
	4.17%		4.16%		4.43%		4.16%		4.22%		4.43%
	4.14%		4.14%		4.38%		4.14%		4.20%		4.42%
	8%		17%		27%		15%		12%		8%

75

Financial highlights
Delaware Tax-Free Colorado Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

76

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.270		$10.610		$10.640		$10.730		$11.050		$11.200
	0.183		0.373		0.375		0.367		0.382		0.405
	(0.780	)	0.661		(0.031	)	(0.089	)	(0.320	)	(0.150	)
	(0.597	)	1.034		0.344		0.278		0.062		0.255
	(0.183	)	(0.374	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
	(0.183	)	(0.374	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
	$10.490		$11.270		$10.610		$10.640		$10.730		$11.050
	(5.32%	)	9.91%		3.43%		2.60%		0.53%		2.35%
	$993		$1,429		$2,693		$3,961		$5,326		$8,221
	1.66%		1.68%		1.65%		1.68%		1.69%		1.68%
	1.69%		1.70%		1.70%		1.70%		1.71%		1.69%
	3.42%		3.41%		3.68%		3.41%		3.47%		3.68%
	3.39%		3.39%		3.63%		3.39%		3.45%		3.67%
	8%		17%		27%		15%		12%		8%

77

Financial highlights
Delaware Tax-Free Colorado Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

78

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.290		$10.630		$10.660		$10.750		$11.070		$11.220
	0.183		0.374		0.375		0.367		0.382		0.405
	(0.780	)	0.661		(0.031	)	(0.089	)	(0.320	)	(0.150	)
	(0.597	)	1.035		0.344		0.278		0.062		0.255
	(0.183	)	(0.375	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
	(0.183	)	(0.375	)	(0.374	)	(0.368	)	(0.382	)	(0.405	)
	$10.510		$11.290		$10.630		$10.660		$10.750		$11.070
	(5.31%	)	9.90%		3.43%		2.60%		0.53%		2.34%
	$13,528		$15,155		$11,542		$9,836		$10,152		$9,971
	1.66%		1.68%		1.65%		1.68%		1.69%		1.68%
	1.69%		1.70%		1.70%		1.70%		1.71%		1.69%
	3.42%		3.41%		3.68%		3.41%		3.47%		3.68%
	3.39%		3.39%		3.63%		3.39%		3.45%		3.67%
	8%		17%		27%		15%		12%		8%

79

Financial highlights
Delaware Tax-Free Idaho Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

80

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.120		$11.490		$11.260		$11.260		$11.450		$11.630
	0.218		0.431		0.436		0.437		0.448		0.449
	(0.774	)	0.633		0.228		—		(0.190	)	(0.180	)
	(0.556	)	1.064		0.664		0.437		0.258		0.269
	(0.217	)	(0.434	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)
	(0.007	)	—		—		—		—		—
	(0.224	)	(0.434	)	(0.434	)	(0.437	)	(0.448	)	(0.449	)
	$11.340		$12.120		$11.490		$11.260		$11.260		$11.450
	(4.60%	)	9.44%		6.12%		3.93%		2.27%		2.40%
	$90,435		$104,287		$86,445		$72,237		$69,931		$62,808
	0.93%		0.94%		0.88%		0.85%		0.86%		0.85%
	0.96%		0.96%		0.96%		0.96%		0.98%		0.98%
	3.78%		3.66%		3.94%		3.87%		3.92%		3.95%
	3.75%		3.64%		3.86%		3.76%		3.80%		3.82%
	16%		7%		10%		11%		8%		15%

81

Financial highlights
Delaware Tax-Free Idaho Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

82

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.100		$11.470		$11.240		$11.240		$11.430		$11.610
	0.175		0.343		0.353		0.353		0.363		0.364
	(0.784	)	0.633		0.228		—		(0.190	)	(0.180	)
	(0.609	)	0.976		0.581		0.353		0.173		0.184
	(0.174	)	(0.346	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)
	(0.007	)	—		—		—		—		—
	(0.181	)	(0.346	)	(0.351	)	(0.353	)	(0.363	)	(0.364	)
	$11.310		$12.100		$11.470		$11.240		$11.240		$11.430
	(4.97%	)	8.64%		5.34%		3.17%		1.51%		1.64%
	$1,610		$2,450		$3,359		$5,123		$6,003		$7,892
	1.68%		1.69%		1.63%		1.60%		1.61%		1.60%
	1.71%		1.71%		1.71%		1.71%		1.73%		1.73%
	3.03%		2.91%		3.19%		3.12%		3.17%		3.20%
	3.00%		2.89%		3.11%		3.01%		3.05%		3.07%
	16%		7%		10%		11%		8%		15%

83

Financial highlights
Delaware Tax-Free Idaho Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Net realized gain on investments

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

84

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$12.110		$11.480		$11.250		$11.250		$11.440		$11.630
	0.175		0.342		0.353		0.352		0.363		0.364
	(0.774	)	0.633		0.228		—		(0.190	)	(0.190	)
	(0.599	)	0.975		0.581		0.352		0.173		0.174
	(0.174	)	(0.345	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)
	(0.007	)	—		—		—		—		—
	(0.181	)	(0.345	)	(0.351	)	(0.352	)	(0.363	)	(0.364	)
	$11.330		$12.110		$11.480		$11.250		$11.250		$11.440
	(4.97%	)	8.63%		5.34%		3.16%		1.51%		1.56%
	$35,568		$35,591		$19,176		$11,490		$11,535		$13,430
	1.68%		1.69%		1.63%		1.60%		1.61%		1.60%
	1.71%		1.71%		1.71%		1.71%		1.73%		1.73%
	3.03%		2.91%		3.19%		3.12%		3.17%		3.20%
	3.00%		2.89%		3.11%		3.01%		3.05%		3.07%
	16%		7%		10%		11%		8%		15%

85

Financial highlights
Delaware Tax-Free New York Fund Class A

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

86

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.150		$10.450		$10.300		$10.300		$10.550		$10.700
	0.204		0.429		0.409		0.411		0.435		0.449
	(0.761	)	0.700		0.148		—		(0.250	)	(0.150	)
	(0.557	)	1.129		0.557		0.411		0.185		0.299
	(0.203	)	(0.429	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)
	(0.203	)	(0.429	)	(0.407	)	(0.411	)	(0.435	)	(0.449	)
	$10.390		$11.150		$10.450		$10.300		$10.300		$10.550
	(5.02%	)	11.02%		5.65%		4.04%		1.75%		2.90%
	$36,615		$37,716		$22,780		$15,340		$14,817		$13,519
	0.80%		0.80%		0.85%		0.85%		0.79%		0.65%
	1.05%		1.07%		1.10%		1.09%		1.10%		1.09%
	3.84%		3.94%		4.10%		3.97%		4.13%		4.28%
	3.59%		3.67%		3.85%		3.73%		3.82%		3.84%
	26%		15%		36%		28%		14%		20%

87

Financial highlights
Delaware Tax-Free New York Fund Class B

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

88

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.120		$10.420		$10.270		$10.280		$10.530		$10.670
	0.164		0.347		0.334		0.333		0.357		0.370
	(0.761	)	0.700		0.148		(0.010	)	(0.250	)	(0.140	)
	(0.597	)	1.047		0.482		0.323		0.107		0.230
	(0.163	)	(0.347	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)
	(0.163	)	(0.347	)	(0.332	)	(0.333	)	(0.357	)	(0.370	)
	$10.360		$11.120		$10.420		$10.270		$10.280		$10.530
	(5.39%	)	10.21%		4.88%		3.17%		0.99%		2.23%
	$587		$736		$1,018		$1,549		$2,164		$2,858
	1.55%		1.55%		1.60%		1.60%		1.54%		1.40%
	1.80%		1.82%		1.85%		1.84%		1.85%		1.84%
	3.09%		3.19%		3.35%		3.22%		3.38%		3.53%
	2.84%		2.92%		3.10%		2.98%		3.07%		3.09%
	26%		15%		36%		28%		14%		20%

89

Financial highlights
Delaware Tax-Free New York Fund Class C

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

Net asset value, beginning of period

Income (loss) from investment operations:

Net investment income

Net realized and unrealized gain (loss) on investments

Total from investment operations

Less dividends and distributions from:

Net investment income

Total dividends and distributions

Net asset value, end of period

Total return2

Ratios and supplemental data:

Net assets, end of period (000 omitted)

Ratio of expenses to average net assets

Ratio of expenses to average net assets

       prior to fees waived and expense paid indirectly

Ratio of net investment income to average net assets

Ratio of net investment income to average net assets

       prior to fees waived and expense paid indirectly

Portfolio turnover

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

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

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

90

Six Months Ended			Year Ended
2/28/111			8/31/10		8/31/09		8/31/08		8/31/07		8/31/06
(Unaudited)
	$11.120		$10.420		$10.270		$10.280		$10.530		$10.670
	0.164		0.346		0.333		0.333		0.357		0.370
	(0.761	)	0.700		0.148		(0.010	)	(0.250	)	(0.140	)
	(0.597	)	1.046		0.481		0.323		0.107		0.230
	(0.163	)	(0.346	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)
	(0.163	)	(0.346	)	(0.331	)	(0.333	)	(0.357	)	(0.370	)
	$10.360		$11.120		$10.420		$10.270		$10.280		$10.530
	(5.39%	)	10.20%		4.88%		3.17%		0.99%		2.23%
	$13,822		$13,462		$5,651		$2,049		$2,131		$2,068
	1.55%		1.55%		1.60%		1.60%		1.54%		1.40%
	1.80%		1.82%		1.85%		1.84%		1.85%		1.84%
	3.09%		3.19%		3.35%		3.22%		3.38%		3.53%
	2.84%		2.92%		3.10%		2.98%		3.07%		3.09%
	26%		15%		36%		28%		14%		20%

91

Notes to financial statements
Delaware multiple state tax-free funds	February 28, 2011 (Unaudited)

Voyageur Mutual Funds is organized as a Delaware statutory trust and offers five series: Delaware Minnesota High-Yield Municipal Bond Fund, Delaware National High-Yield Municipal Bond Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund. Voyageur Mutual Funds II is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Colorado Fund. Voyageur Insured Funds is organized as a Delaware statutory trust and offers one series: Delaware Tax-Free Arizona Fund. Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds are individually referred to as a Trust and collectively as the Trusts. These financial statements and related notes pertain to Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund (each, a Fund or, collectively, the Funds). The above Trusts are open-end investment companies. The Funds are considered diversified under the Investment Company Act of 1940, as amended, and offer Class A, Class B, and Class C shares. Class A shares are sold with a maximum front-end sales charge of up to 4.50%. Class A share purchases of $1,000,000 or more will incur a contingent deferred sales charge (CDSC) of 1% if redeemed during the first year and 0.50% during the second year, provided that Delaware Distributors, L.P. (DDLP) paid a financial advisor a commission on the purchase of those shares. Class B shares may only be purchased through dividend reinvestment and certain permitted exchanges. Prior to June 1, 2007, Class B shares were sold with a CDSC that declined from 4% to zero depending upon the period of time the shares were held. Class B shares will automatically convert to Class A shares on a quarterly basis approximately eight years after purchase. Class C shares are sold with a CDSC of 1%, if redeemed during the first twelve months.

The investment objective of each Fund is to seek as high a level of current income exempt from federal income tax and personal income tax in 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. Open-end investment companies are valued at their published net asset value. Short-term debt securities are valued at market value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of each Fund’s Board of Trustees (each, a Board or, collectively, the Boards). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

92

Federal Income Taxes — No provision for federal income taxes has been made as each Fund intends to continue to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (August 31, 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 the differences could be material.

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

The Funds may receive earnings credits from their custodian when positive cash balances are maintained, which are used to offset custody fees. There were no earnings credits for the six months ended February 28, 2011.

93

Notes to financial statements
Delaware multiple state tax-free funds

1. Significant Accounting Policies (continued)

The Funds receive earnings credits from their transfer agent when positive cash balances are maintained, which are used to offset transfer agent fees. The expense paid under this arrangement is included in dividend disbursing and transfer agent fees and expenses on the statements of operations with the corresponding expense offset shown as “expense paid indirectly.” For the six months ended February 28, 2011, the Funds earned the following under this agreement:

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
$64	$45	$141	$76	$28

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%

Effective December 29, 2010, DMC has contractually agreed to waive that portion, if any, of its management fee and reimburse each Fund to the extent necessary to ensure that total annual operating expenses (excluding any 12b-1 plan, taxes, interest, inverse floater program expenses, short sales and dividend interest expenses, brokerage fees, certain insurance costs, and nonroutine expenses or costs, including, but not limited to, those relating to reorganizations, litigation, conducting shareholder meetings, and liquidations (collectively, nonroutine expenses)), do not exceed specified percentages of average daily net assets as shown below through December 29, 2011. 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.

94

	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 December 29, 2010
operating expense
limitation as a percentage
of average daily net assets
(per annum)		0.59%		0.57%		0.59%		0.63%		0.55%
Expiration date		12/29/11		12/29/11		12/29/11		12/29/11		12/29/11
Through December 28, 2010,
operating expense
limitation as a percentage
of average daily net assets
(per annum)		—%		0.57%		—%		—%		0.55%

Delaware Service Company, Inc. (DSC), an affiliate of DMC, provides fund accounting and financial administration oversight services to the Funds. For these services, the Funds pay DSC fees based on the aggregate daily net assets of the Delaware Investments® Family of Funds at the following annual rate: 0.0050% of the first $30 billion; 0.0045% of the next $10 billion; 0.0040% of the next $10 billion; and 0.0025% of aggregate average daily net assets in excess of $50 billion. The fees payable to DSC under the service agreement described above are allocated among all Funds in the Delaware Investments Family of Funds on a relative net asset value basis. For the six months ended February 28, 2011, 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
$2,750	$2,190	$5,910	$3,352	$1,295

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.

95

Notes to financial statements
Delaware multiple state tax-free funds

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

At February 28, 2011, 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	$33,323	$23,322	$79,480	$45,441	$8,964
Dividend disbursing,
transfer agent and fund
accounting oversight
fees and other expenses
payable to DSC	2,157	1,772	4,773	2,743	1,344
Distribution fees payable
to DDLP	25,095	25,164	51,420	45,429	17,838
Other expenses payable to
DMC and affiliates*	3,921	3,601	8,172	4,417	3,149

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

As provided in the investment management agreement, each Fund bears the cost of certain legal and tax services, including internal legal and tax services provided to each Fund by DMC and/or its affiliates’ employees. For the six months ended February 28, 2011, 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
$367	$320	$880	$508	$179

For the six months ended February 28, 2011, 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
$3,505	$16,636	$14,513	$16,891	$10,370

96

For the six months ended February 28, 2011, 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	$	0	$	0	$	0	$	0	$	0
Class B		350		688		49		150		0
Class C		406		1,241		439		6,509		500

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 six months ended February 28, 2011, 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	$	6,515,149		$	14,476,353		$	18,798,976		$	20,896,409		$	15,641,733
Sales		15,976,455			17,897,905			37,207,508			28,250,503			13,293,029

At February 28, 2011, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At February 28, 2011, the cost of investments and unrealized appreciation (depreciation) for each Fund were as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Cost of
investments	$	105,075,578		$	84,393,586		$	229,863,312		$	125,241,395			$	50,130,232
Aggregate
unrealized
appreciation	$	2,225,833		$	1,587,462		$	5,012,471		$	3,098,920			$	1,189,517
Aggregate
unrealized
depreciation		(2,419,263	)		(4,027,012	)		(8,793,241	)		(2,243,021	)			(1,075,291	)
Net unrealized
appreciation
(depreciation)	$	(193,430	)	$	(2,439,550	)	$	(3,780,770	)	$	855,899			$	114,226

97

Notes to financial statements
Delaware multiple state tax-free funds

3. Investments (continued)

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 investments in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 –	inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)
Level 2 –	other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)
Level 3 –	inputs are significant unobservable inputs (including the Funds’ own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

98

The following table summarizes the valuation of each Fund’s investments by fair value hierarchy levels as of February 28, 2011:

	Delaware Tax-Free Arizona Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	100,882,148	$	100,882,148
Short-Term Investments		—		4,000,000		4,000,000
Total	$	—	$	104,882,148	$	104,882,148

	Delaware Tax-Free California Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	78,069,169	$	78,069,169
Short-Term Investments		369,867		3,515,000		3,884,867
Total	$	369,867	$	81,584,169	$	81,954,036
	Delaware Tax-Free Colorado Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	214,640,754	$	214,640,754
Short-Term Investments		1,236,788		10,205,000		11,441,788
Total	$	1,236,788	$	224,845,754	$	226,082,542
	Delaware Tax-Free Idaho Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	123,302,266	$	123,302,266
Short-Term Investment		2,795,028		—		2,795,028
Total	$	2,795,028	$	123,302,266	$	126,097,294

	Delaware Tax-Free New York Fund
	Level 1		Level 2		Total
Municipal Bonds	$	—	$	48,544,458	$	48,544,458
Short-Term Investment		—		1,700,000		1,700,000
Total	$	—	$	50,244,458	$	50,244,458

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

During the six months ended February 28, 2011, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Funds.

99

Notes to financial statements
Delaware multiple state tax-free funds

4. Dividend and Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Additionally, distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and distributions paid during the six months ended February 28, 2011 and the year ended August 31, 2010 was as follows:

	Delaware			Delaware			Delaware			Delaware			Delaware
	Tax-Free			Tax-Free			Tax-Free			Tax-Free			Tax-Free
	Arizona Fund			California Fund			Colorado Fund			Idaho Fund			New York Fund
Six Months Ended 2/28/11*
Tax-exempt income		$	2,116,832		$	1,829,739		$	4,807,674		$	2,330,162		$	933,920
Ordinary income			57,697			49,401			86,342			124,690			10,432
Long-term capital gains			273,981			—			—			24,209			—
Total		$	2,448,510		$	1,879,140		$	4,894,016		$	2,479,061		$	944,352
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

*Tax information for the six months ended February 28, 2011 is an estimate and the tax character of dividends and distributions may be redesignated at fiscal year end.

100

5. Components of Net Assets on a Tax Basis

The components of net assets are estimated since final tax characteristics cannot be determined until fiscal year end. As of February 28, 2011, the estimated components of net assets on a tax basis were as follows:

	Delaware				Delaware				Delaware				Delaware				Delaware
	Tax-Free				Tax-Free				Tax-Free				Tax-Free				Tax-Free
	Arizona Fund				California Fund				Colorado Fund				Idaho Fund				New York Fund
Shares of beneficial
interest		$	106,431,188			$	85,660,742			$	233,719,502			$	127,284,338			$	51,325,823
Distributions
payable			(68,044	)			(56,579	)			(154,580	)			(78,370	)			(30,297	)
Undistributed
tax-exempt
income			94,240				75,342				154,472				67,069				29,646
Realized gains
(losses)
9/1/10-
2/28/11			32,820				(499,093	)			201,062				—				(4,824	)
Post-October
losses			(221,580	)			(936,431	)			(381,983	)			(516,381	)			(387,594	)
Capital loss
carryforwards
as of
8/31/10			(32,820	)			(10,217	)			(2,998,984	)			—				(23,182	)
Unrealized
appreciation
(depreciation)
of investments			(193,430	)			(2,439,550	)			(3,780,770	)			855,899				114,226
Net assets		$	106,042,374			$	81,794,214			$	226,758,719			$	127,612,555			$	51,023,798

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

Post-October losses represent losses realized on investment transactions from November 1, 2010 through February 28, 2011 that, in accordance with federal income tax regulations, each Fund has elected to defer and treat as having arisen in the following fiscal year.

101

Notes to financial statements
Delaware multiple state tax-free funds

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

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 and dividends and distributions. Results of operations and net assets were not affected by these reclassifications. For the six months ended February 28, 2011, the Funds recorded an estimate of these differences since final tax characteristics cannot be determined until fiscal year end.

	Delaware				Delaware				Delaware				Delaware				Delaware
	Tax-Free				Tax-Free				Tax-Free				Tax-Free				Tax-Free
	Arizona Fund				California Fund				Colorado Fund				Idaho Fund				New York Fund
Undistributed
(distributions in excess of)
net investment income		$	(8,948	)		$	(5,005	)		$	(5,514	)		$	(8,704	)		$	(2,849	)
Accumulated net realized
gain (loss)			9,835				5,005				5,514				14,046				2,849
Paid-in capital			(887	)			—				—				(5,342	)			—

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			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

For the six months ended February 28, 2011, the Funds had capital gains (losses) which may reduce (increase) capital loss carryforwards.

Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	New York Fund
$32,820	$(499,093)	$201,062	$(4,824)

102

6. Capital Shares

Transactions in capital shares were as follows:

	Delaware Tax-Free				Delaware Tax-Free				Delaware Tax-Free
	Arizona Fund				California Fund				Colorado Fund
	Six Months		Year		Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	2/28/11		8/31/10		2/28/11		8/31/10		2/28/11		8/31/10
Shares sold:
Class A	677,496		515,840		838,112		1,434,211		491,212		1,455,185
Class B	34		6		13		12,712		26		—
Class C	39,479		109,633		217,053		298,932		114,899		370,563
Shares issued upon reinvestment of dividends and distributions:
Class A	111,861		187,152		87,759		152,556		289,079		566,146
Class B	2,030		6,483		2,942		9,449		1,191		3,385
Class C	7,834		13,172		18,114		32,069		17,305		31,073
	838,734		832,286		1,163,993		1,939,929		913,712		2,426,352
Shares repurchased:
Class A	(1,102,427	)	(1,748,428	)	(1,076,649	)	(1,038,915	)	(1,626,010	)	(2,288,864	)
Class B	(99,784	)	(344,965	)	(100,415	)	(204,969	)	(33,410	)	(130,484	)
Class C	(89,470	)	(97,006	)	( 212,799	)	(262,607	)	(187,215	)	(145,599	)
	(1,291,681	)	(2,190,399	)	(1,389,863	)	(1,506,491	)	(1,846,635	)	(2,564,947	)
Net increase
(decrease)	(452,947	)	(1,358,113	)	(225,870	)	433,438		(932,923	)	(138,595	)

	Delaware Tax-Free				Delaware Tax-Free
	Idaho Fund				New York Fund
	Six Months		Year		Six Months		Year
	Ended		Ended		Ended		Ended
	2/28/11		8/31/10		2/28/11		8/31/10
Shares sold:
Class A	755,847		1,582,213		639,102		1,519,766
Class B	—		853		—		880
Class C	582,199		1,457,021		285,623		830,745
Shares issued upon reinvestment of dividends and distributions:
Class A	120,781		206,666		48,273		66,469
Class B	2,080		5,292		694		1,486
Class C	38,705		48,259		15,317		18,395
	1,499,612		3,300,304		989,009		2,437,741
Shares repurchased:
Class A	(1,501,008	)	(709,358	)	(545,790	)	(383,035	)
Class B	(62,272	)	(96,566	)	(10,278	)	(33,835	)
Class C	(418,731	)	(237,236	)	(177,711	)	(180,662	)
	(1,982,011	)	(1,043,160	)	(733,779	)	(597,532	)
Net increase (decrease)	(482,399	)	2,257,144		255,230		1,840,209

103

Notes to financial statements
Delaware multiple state tax-free funds

6. Capital Shares (continued)

For the six months ended February 28, 2011 and the year ended August 31, 2010, 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 103 and the statements of changes in net assets.

	Six Months Ended				Year Ended
	2/28/11				8/31/10
	Class B	Class A			Class B	Class A
	Shares	Shares	Value		Shares	Shares	Value
Delaware Tax-Free
Arizona Fund	65,271	65,328	$	745,118	202,963	203,104	$	2,307,336
Delaware Tax-Free
California Fund	70,133	70,423		793,618	118,852	119,295		1,315,929
Delaware Tax-Free
Colorado Fund	29,081	29,108		310,947	80,300	80,348		875,705
Delaware Tax-Free
Idaho Fund	46,864	46,764		548,657	67,072	66,958		786,291
Delaware Tax-Free
New York Fund	2,184	2,179		24,057	24,033	23,966		257,369

7. Line of Credit

Each Fund, along with certain other funds in the Delaware Investments® Family of Funds (Participants), was a participant 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 were charged an annual commitment fee, which was allocated across the Participants on the basis of each Participant’s allocation of the entire facility. The Participants were permitted to borrow up to a maximum of one third of their net assets under the agreement. The line of credit expired on November 16, 2010.

Effective as of November 16, 2010, the Funds along with the other Participants entered into an amendment to the agreement with BNY Mellon for a $50,000,000 revolving line of credit. The agreement as amended is to be used as described above and operates in substantially the same manner as the original agreement. The new line of credit under the agreement as amended expires on November 15, 2011. The Funds had no amounts outstanding as of February 28, 2011, or at any time during the period then ended.

104

8. Credit and Market Risk

The Funds concentrate their investments in securities issued by municipalities. The value of these investments may be adversely affected by new legislation within the states, regional or local economic conditions, as applicable, and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Funds. At February 28, 2011, the percentages of each Fund’s net assets insured by bond insurers are listed below and these securities have been identified in the statements of net assets.

Delaware	Delaware	Delaware	Delaware	Delaware
Tax-Free	Tax-Free	Tax-Free	Tax-Free	Tax-Free
Arizona Fund	California Fund	Colorado Fund	Idaho Fund	New York Fund
40.51%	20.02%	22.80%	31.78%	8.49%

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 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.

105

Notes to financial statements
Delaware multiple state tax-free funds

8. Credit and Market Risk (continued)

Each Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair each Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, each Fund’s Board has delegated to DMC the day-to-day functions of determining whether individual securities are liquid for purposes of each Fund’s limitation on investments in illiquid assets. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to each Fund’s 15% limit on investments in illiquid securities. As of February 28, 2011, there were no Rule 144A securities. Illiquid securities have been identified on the statements of net assets.

9. Contractual Obligations

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

10. Subsequent Events

Management has determined no material events or transactions occurred subsequent to February 28, 2011 that would require recognition or disclosure in the Funds’ financial statements.

106

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 resigned as the independent registered public accounting firm for Voyageur Mutual Funds, Voyageur Mutual Funds II, and Voyageur Insured Funds (the Trusts) effective May 20, 2010. At a meeting held on May 20, 2010, the Boards of Trustees of the Trusts, upon recommendation of the Audit Committee, selected PricewaterhouseCoopers LLC (“PwC”) to serve as the independent registered public accounting firm for the Trusts for the fiscal year ended August 31, 2010. During the fiscal years ended August 31, 2009 and 2008, E&Y’s audit reports on the financial statements of the Trusts did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. In addition, there were no disagreements between the Trusts and E&Y on accounting principles, financial statements disclosures or audit scope, which, if not resolved to the satisfaction of E&Y, would have caused them to make reference to the disagreement in their reports. Neither the Trusts nor anyone on 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 Trusts’ financial statements.

107

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 semiannual report is for the information of Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund shareholders, but it may be used with prospective investors when preceded or accompanied by a current prospectus for Delaware Tax-Free Arizona Fund, Delaware Tax-Free California Fund, Delaware Tax-Free Colorado Fund, Delaware Tax-Free Idaho Fund, and Delaware Tax-Free New York Fund and the Delaware Investments Fund 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.

108

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

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

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders Not applicable. Item 11. Controls and Procedures

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

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

Item 12. Exhibits

(a)(1) Code of Ethics

Not applicable.

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

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

Not applicable.

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

SIGNATURES

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

Name of Registrant: VOYAGEUR MUTUAL FUNDS

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 2, 2011

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

/s/ PATRICK P. COYNE
By:	Patrick P. Coyne
Title:	Chief Executive Officer
Date:	May 2, 2011

/s/ RICHARD SALUS
By:	Richard Salus
Title:	Chief Financial Officer
Date:	May 2, 2011