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<TITLE>Prepared and filed by St Ives Financial</TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date
      of Report (Date of earliest event reported): August 14, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font size="4">ARTESIAN
  RESOURCES CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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        <td width="50">&nbsp;</td>
                    <td align=center valign=top width="280"><b><font size=2>Delaware</font></b><br>
<font size=2>(State or other jurisdiction of</font><br>
<font size=2>incorporation)</font><br></td>
        <td align=center valign=top  width="280"><b><font size=2>000-18516</font></b><br>
            <font size=2>(Commission</font><br>
<font size=2>File Number)</font><br></td>

    <td align=center valign=bottom  width="280"> <font size=2><b>51-0002090</b></font><br>
<font size=2>(IRS Employer Identification No.)</font><br></td>
        <td width="50">&nbsp;</td></tr></table>

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                    <td align=center valign=top  width="280"><font size=2>&nbsp;</font><br></td>
        <td align=center valign=top  width="280"><br></td>

        <td align=center valign=top   width="280"><br></td>
                    <td width="50">&nbsp;</td></tr></table>

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        <td width="50">&nbsp;</td>

    <td align=center valign=top  width="300"><b><font size=2>664
      Churchmans Road, Newark, Delaware</font></b><br>
<font size=2>(Address of principal executive offices)</font><br></td>
        <td align=center width="280">&nbsp;</td>

    <td align=center valign=top width="300"><b><font size=2>19702</font></b><br>
<font size=2>(Zip Code)</font></td>
        <td width="50">&nbsp;</td></tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2><b>Registrant&#146;s
  telephone number, including area code:</b></font><b><font size=2> 302-453-6900</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report.)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Written communications pursuant to Rule 425 under the Securities Act </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act</font></p>

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      <td width="69" valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          1.01</font></b></p>
      </td>


      <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Entry into a Material Definitive Agreement.</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Artesian Resources Corporation (the &#147;Company&#148;) entered into another indemnification agreement with KPMG LLP (&#147;KPMG&#148;), the Company&#146;s former independent registered public accounting firm, dated as of August 14, 2006 (the &#147;Indemnification Agreement&#148;), pursuant to which the Company agreed to indemnify and hold KPMG harmless against and from any and all legal costs and expenses incurred by KPMG in its successful defense of any legal action or proceeding that may arise as a result of its consent to include or incorporate by reference its audit report on the Company&#146;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the Company&#146;s Registration Statement on Form S-3 (Registration Statement No. 333-136184) filed with the Securities and Exchange Commission on July 31, 2006 as amended August
15, 2006. The Indemnification Agreement also provides that KPMG shall not be indemnified, and shall refund to the Company, any amounts paid to KPMG pursuant to the Indemnification Agreement in the event there is court adjudication that KPMG is guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff&#146;s damages by virtue of settlement. In addition, the Indemnification Agreement provides that, in the event that KPMG is requested pursuant to subpoena or other legal process to produce its documents relating to the Company in judicial or administrative proceedings to which KPMG is not a party, the Company is required to reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney&#146;s fees, incurred in responding to such requests.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The foregoing is a summary description of certain terms of the Indemnification Agreement and is incomplete. It is qualified in its entirety by the Indemnification Agreement, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. </font></p>



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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          9.01</font></b></p>
      </td>


      <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Financial Statements and Exhibits.</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following exhibit is furnished with this report:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><b><font size=1>Exhibit</font></b><br>
          <b><font size=1>Number</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=1>Exhibit
          Title</font></b><u></u></p>
      </td>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="12%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP</font></p>
      </td>
    </tr>
  </table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font SIZE=2>ARTESIAN RESOURCES CORPORATION</font></p> </td> </tr>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
           <font size=2>Date:  August 15, 2006</font></p> </td>


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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p>
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        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
<font size=2>/s/ David B. Spacht</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

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        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>David B. Spacht</font><br> <font size=2>Chief Financial Officer</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>INDEX TO EXHIBIT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><b><font size=1>Exhibit</font></b><br>
          <b><font size=1>Number</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=1>Exhibit
          Title</font></b><u></u></p>
      </td>
    </tr>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="12%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP</font></p>
      </td>
    </tr>
  </table>
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{"company-data": {"conformed-name": "ARTESIAN RESOURCES CORP", "cik": "0000863110", "assigned-sic": "4941", "irs-number": "510002090", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18516", "film-number": "061034202"}, "business-address": {"street1": "664 CHURCHMANS RD", "city": "NEWARK", "state": "DE", "zip": "19702", "phone": "3024536900"}, "mail-address": {"street1": "664 CHURCHMANS RD", "city": "NEWARK", "state": "DE", "zip": "19702"}}
Prepared and filed by St Ives Financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
      of Report (Date of earliest event reported): August 14, 2006
ARTESIAN
  RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation)
000-18516
(Commission
File Number)
51-0002090
(IRS Employer Identification No.)
664
      Churchmans Road, Newark, Delaware
(Address of principal executive offices)
19702
(Zip Code)
Registrant's
  telephone number, including area code:
302-453-6900
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Item
          1.01
Entry into a Material Definitive Agreement.
Artesian Resources Corporation (the "Company") entered into another indemnification agreement with KPMG LLP ("KPMG"), the Company's former independent registered public accounting firm, dated as of August 14, 2006 (the "Indemnification Agreement"), pursuant to which the Company agreed to indemnify and hold KPMG harmless against and from any and all legal costs and expenses incurred by KPMG in its successful defense of any legal action or proceeding that may arise as a result of its consent to include or incorporate by reference its audit report on the Company's consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the Company's Registration Statement on Form S-3 (Registration Statement No. 333-136184) filed with the Securities and Exchange Commission on July 31, 2006 as amended August
15, 2006. The Indemnification Agreement also provides that KPMG shall not be indemnified, and shall refund to the Company, any amounts paid to KPMG pursuant to the Indemnification Agreement in the event there is court adjudication that KPMG is guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff's damages by virtue of settlement. In addition, the Indemnification Agreement provides that, in the event that KPMG is requested pursuant to subpoena or other legal process to produce its documents relating to the Company in judicial or administrative proceedings to which KPMG is not a party, the Company is required to reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney's fees, incurred in responding to such requests.
The foregoing is a summary description of certain terms of the Indemnification Agreement and is incomplete. It is qualified in its entirety by the Indemnification Agreement, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item
          9.01
Financial Statements and Exhibits.
The following exhibit is furnished with this report:
Exhibit
Number
Exhibit
          Title
99.1
Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ARTESIAN RESOURCES CORPORATION
Date:  August 15, 2006
By:
/s/ David B. Spacht
David B. Spacht
Chief Financial Officer
INDEX TO EXHIBIT
Exhibit
Number
Exhibit
          Title
99.1
Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP