ARTESIAN RESOURCES CORPORATION AND SUBSIDIARY COMPANIES
Subsidiaries of Registrant
The following list includes the Registrant and all of its subsidiaries as of December 31, 2007. The voting equity interests of each company shown is owned, to the extent indicated by the percentage, by the company immediately above, which is not indented to the same degree. All subsidiaries of the Registrant appearing in the following table are included in the consolidated financial statements of the Registrant and its subsidiaries.
| Name of Company | State of Incorporation | Percentage of Voting Equity Interests Owned |
| Artesian Resources Corporation | Delaware | |
| Artesian Water Company, Inc. | Delaware | 100 |
| Artesian Water Pennsylvania, Inc. | Pennsylvania | 100 |
| Artesian Water Maryland, Inc. | Maryland | 100 |
| Artesian Development Corporation | Delaware | 100 |
| Artesian Wastewater Management, Inc. | Delaware | 100 |
| Artesian Utility Development, Inc. | Delaware | 100 |
| AquaStructure Delaware, L.L.C. | Delaware | 33 1/3 |
ARTESIAN RESOURCES CORPORATION
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
| Additions | Balance at Beginning Of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period |
| Classification | |||||
For the Year Ended December 31, 2007 Valuation allowance for deferred tax assets | $121,000 | --- | --- | $33,000 | $88,000 |
For the Year Ended December 31, 2006 Valuation allowance for deferred tax assets | $323,000 | --- | --- | $202,000 | $121,000 |
For the Year Ended December 31, 2005 Valuation allowance for deferred tax assets | $482,000 | --- | --- | $159,000 | $323,000 |