INDEMNIFICATION AGREEMENT DATED MARCH 12, 2007

EXHIBIT 99.1

[KPMG Letterhead]

March 12, 2007

Artesian Resources Corporation
664 Churchmans Road
Newark, DE 19702

Attention: Dian C. Taylor, Chair of the Board, CEO and President

Artesian Resources Corporation (the “Company”) has requested that we consent to the incorporation by reference of our report on the Company’s consolidated statements of operations, changes in stockholders’ equity, and cash flows for the year ended December 31, 2004 in the registration statements (No. 333-78043, No. 333-31209, No. 333-05255) on Form S-8 and the registration statement (No. 333-136184) on Form S-3.

By agreeing to the terms of this letter, you agree to indemnify KPMG LLP (“KPMG”) from certain risks inherent in incorporating by reference our audit report on the Company’s consolidated statements operations, changes in stockholders’ equity, and cash flows for the year ended December 31, 2004 in the above listed registration statements. Specifically, you agree to indemnify and hold KPMG harmless against and from any and all legal costs and expenses (inc