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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
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                                    FORM T-1

                            STATEMENT OF ELIGIBILITY
                    UNDER THE TRUST INDENTURE ACT OF 1939 OF
                   A CORPORATION DESIGNATED TO ACT AS TRUSTEE
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               CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF

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                                  CHEMICAL BANK
               (Exact name of trustee as specified in its charter)

New York                                                             13-4994650
(State of incorporation                                        (I.R.S. employer
if not a national bank)                                     identification No.)

270 Park Avenue
New York, New York                                                        10017
(Address of principal executive offices)                             (Zip Code)

                               William H. McDavid
                                 General Counsel
                                 270 Park Avenue
                            New York, New York 10017
                               Tel: (212) 270-2611
            (Name, address and telephone number of agent for service)
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                           CITIZENS UTILITIES COMPANY
               (Exact name of obligor as specified in its charter)

Delaware                                                             06-0619596
(State or other jurisdiction of                                (I.R.S. employer
incorporation or organization)                              identification No.)

High Ridge Park, Bldg. No.3
P. O. Box 3801
Stamford, Connecticut                                                     06905
(Address of principal executive offices)                             (Zip Code)

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                                 Debt Securities
                       (Title of the indenture securities)
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                                     GENERAL

Item 1.  General Information.

         Furnish the following information as to the trustee:

         (a)  Name and address of each examining or supervising authority to
              which it is subject.

              New York State Banking Department, State House, Albany, New York 
              12110.

              Board of Governors of the Federal Reserve System, Washington,
              D.C., 20551

              Federal Reserve Bank of New York, District No. 2, 33 Liberty 
              Street, New York,              N.Y.

              Federal Deposit Insurance Corporation, Washington, D.C., 20429.


         (b)  Whether it is authorized to exercise corporate trust powers.

              Yes.


Item 2.  Affiliations with the Obligor.

         If the  obligor is an  affiliate  of the  trustee,  describe  each such
  
         affiliation.

         None.







       



Item 16.   List of Exhibits

           List  below  all  exhibits  filed  as a part  of  this  Statement  of
Eligibility.

           1. A copy of the  Articles  of  Association  of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980,  September 9, 1982,
February  28,  1985 and  December  2, 1991  (see  Exhibit 1 to Form T-1 filed in
connection with  Registration  Statement No. 33-50010,  which is incorporated by
reference).

           2.  A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference).

           3. None,  authorization  to exercise  corporate  trust  powers  being
contained in the documents identified above as Exhibits 1 and 2.

           4.  A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection
with Registration Statement No. 33-84460, which is incorporated by reference).

           5.  Not applicable.

           6.  The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No. 
33-50010, which is incorporated by reference).

           7.  A copy of the latest report of condition of the Trustee, 
published pursuant to law or the requirements of its supervising or examining
authority.

           8.  Not applicable.

           9.  Not applicable.

                                    SIGNATURE

         Pursuant to the  requirements  of the Trust  Indenture  Act of 1939 the
Trustee,  Chemical Bank, a corporation  organized and existing under the laws of
the State of New York,  has duly  caused this  statement  of  eligibility  to be
signed on its behalf by the undersigned,  thereunto duly authorized,  all in the
City of New York and State of New York, on the 3rd day of May, 1996.

                                  CHEMICAL BANK


                                  By
                                  Thomas J. Foley
                                  Vice President







Item 16.   List of Exhibits

           List  below  all  exhibits  filed  as a part  of  this  Statement  of
Eligibility.

           1. A copy of the  Articles  of  Association  of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980,  September 9, 1982,
February  28,  1985 and  December  2, 1991  (see  Exhibit 1 to Form T-1 filed in
connection with  Registration  Statement No. 33-50010,  which is incorporated by
reference).

           2.  A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference).

           3. None,  authorization  to exercise  corporate  trust  powers  being
contained in the documents identified above as Exhibits 1 and 2.

           4.  A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 33-84460, which is
incorporated by reference).

           5.  Not applicable.

           6.  The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference).

           7.  A copy of the latest report of condition of the Trustee, 
published pursuant to law or the requirements of its supervising or examining 
authority.

           8.  Not applicable.

           9.  Not applicable.

                                    SIGNATURE

         Pursuant to the  requirements  of the Trust  Indenture Act of 1939, the
Trustee,  Chemical Bank, a corporation  organized and existing under the laws of
the State of New York,  has duly  caused this  statement  of  eligibility  to be
signed on its behalf by the undersigned,  thereunto duly authorized,  all in the
City of New York and State of New York, on the 3rd day of May, 1996.

                                       CHEMICAL BANK


                                       By /s/ Thomas J. Foley
                                              Thomas J. Foley
                                              Vice President