Essential Utilities, Inc. — Director's Dealing 2005

May 10, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: AQUA AMERICA INC (WTR)
CIK: 0000078128
Period of Report: 2005-05-09

Reporting Person: DEBENEDICTIS NICHOLAS (Director, CHAIRMAN & PRESIDENT)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-05-09	Common Stock	M	60668	$5.73	Acquired	475101	Direct
2005-05-10	Common Stock	S	60668	$27.3476	Disposed	414433	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-05-09	Stock Options (Right to buy)	$5.73	M	60668	Disposed	2006-03-04	Common Stock (60668)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
COMMON STOCK - IRA	2455	Direct
COMMON STOCK 401K	8370	Direct
Restricted	13000	Direct
COMMON STOCK - IRA	1964	Indirect

Footnotes

F1: Exercise of Stock Option