Essential Utilities, Inc. — Director's Dealing 2005

May 24, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: AQUA AMERICA INC (WTR)
CIK: 0000078128
Period of Report: 2005-05-20

Reporting Person: SMELTZER DAVID (SR. VICE PRESIDENT & CFO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-05-20	Common Stock	S	15436	$27.0058	Disposed	20271	Direct
2005-05-23	Common Stock	S	4564	$27.3879	Disposed	15707	Direct
2005-05-24	Common Stock	M	10000	$9.39	Acquired	25707	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-05-24	Stock Options (Right to buy)	$9.39	M	10000	Disposed	2010-03-06	Common Stock (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
COMMON STOCK 401K	9769	Direct
Restricted	4000	Direct

Footnotes

F1: Shares sold in conjunction with 10B-5 Plan