Voyageur Insured Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number:	811-04973
Exact name of registrant as specified in charter:	Voyageur Insured Funds
Address of principal executive offices:	2005 Market Street
	Philadelphia, PA 19103
Name and address of agent for service:	David F. Connor, Esq.
	2005 Market Street
	Philadelphia, PA 19103
Registrant’s telephone number, including area code:	(800) 523-1918
Date of fiscal year end:	August 31
Date of reporting period:	February 28, 2011

Item 1. Reports to Stockholders

Semiannual report

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

February 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.

Manage your investments online

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

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

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

Table of contents
Disclosure of Fund expenses	1
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 INSURED 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