Connecticut Water Selected to Operate and Manage
UConn’s Water Systems

          STORRS, CT, August 3, 2006 - Connecticut Water Service Inc.’s (NASDAQ: CTWS) subsidiary, New England Water Utility Services, was recently selected through a competitive bidding process by the University of Connecticut to provide for the total operation, management and maintenance of the University’s water systems at the Storrs and Depot Campuses. The University’s evaluation team determined that Connecticut Water’s technical proposal best met the requirements for the operation, maintenance and management of the University’s water systems. Connecticut Water and the University have signed an Operating Agreement for a two-year term with an option to extend it for two additional one-year terms. If extended for both additional terms, the value of the total agreement will exceed $1.75 million. In addition, Connecticut Water anticipates that it will be able to assist the University in providing needed capital improvements to the water systems during the term of the agreement. Connecticut Water has been providing operating services to the University’s water systems on an interim basis since November 2005.

          The new Operating Agreement provides for the continued use of an experienced senior operations manager who provides for the direct management and operations of the University’s water systems. It also calls for Connecticut Water to provide a certified water treatment plant operator to perform daily operations and water quality sampling and other water system duties such as cross connection inspections, system flushing, regulatory reporting and system improvement planning.

          Eric W. Thornburg, president and CEO of Connecticut Water, said the company is honored that the University chose Connecticut Water to partner with and manage the University’s water systems.

          “We recognize that water is a precious resource and we pledge to dedicate our staff and expertise to address the current and future needs of the University,” said Thornburg. “We have demonstrated our commitment to provide high-quality service to UConn under the interim services agreement, and look forward to continuing to work to meet the University’s needs in the long term.”

          “Connecticut Water submitted a superior proposal from the perspective of both service and pricing,” said Thomas Callahan, interim associate vice president for administration and operational services and special assistant to UConn President Philip Austin. “NEWUS has met our expectations and we expect that they will continue to do so through the duration of this contract.”

          Connecticut Water has conducted a full review of the University’s water system, including operations and customer service practices, tested production meters for accuracy and made recommendations on capital improvement and major maintenance projects. The Company has also conducted a leak detection survey of the water systems to locate sources of lost water to minimize unnecessary demands on the University’s water supply sources.

          New England Water Utility Services operates water and wastewater systems under contract for condominiums, schools, and municipalities, such as the towns of Durham, and New
Hartford, Connecticut. It also provides specialized services such as leak detection, water quality
monitoring, and cross connection inspections to various municipal, commercial and industrial clients throughout the State, as well as a water service line repair program for residential and commercial customers.

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Contact:

David C. Benoit
CFO and Vice President - Finance
Connecticut Water Service, Inc.
860-669-8630 Ext. 3030

Connecticut Water Service, Inc. is the largest, domestic-based, investor-owned water utility in New England. It provides water to over 80,000 customers in 41 towns in Connecticut, as well as providing water-related services under contract to municipalities and companies.

This press release may contain certain forward-looking statements regarding the Company’s results of operations and financial position. These forward-looking statements are based on current information and expectations, and are subject to risks and uncertainties, which could cause the Company’s actual results to differ materially from expected results.

Our water companies are subject to various federal and state regulatory agencies concerning water quality and environmental standards. Generally, the water industry is materially dependent on the adequacy of approved rates to allow for a fair rate of return on the investment in utility plant. The ability to maintain our operating costs at the lowest possible level while providing good quality water service is beneficial to customers and stockholders. Profitability is also dependent on the timeliness and amount of rate relief, including the rate relief sought in the company's rate case application to the DPUC filed on July 18, 2006, and numerous factors over which we have little or no control, such as the quantity of rainfall and temperature, industrial demand, financing costs, energy rates, tax rates, and stock market trends which may affect the return earned on pension assets, and compliance with environmental and water quality regulations. The profitability of our other revenue sources is subject to the amount of land we have available for sale and/or donation, the demand for the land, the continuation of the current state tax benefits relating to the donation of land for open space purposes, regulatory approval of land dispositions, the demand for telecommunications antenna site leases and the successful extensions and expansion of our service contracts. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.