``Crystal Water Gets Approval on 21.35 Percent Rate Increase''; Allowed Return on Equity Set at 10 Percent.

CLINTON, Conn. -- Connecticut Water Service Inc. (NASDAQ:CTWS) announced today that its Crystal Water Company of Danielson subsidiary has received approval from the Connecticut Department of Public Utility Control (DPUC) to raise rates 21.35 percent across the board. The DPUC decision allows the company a ten percent return on equity. The rate increase went into effect on December 28, 2005 and will increase revenues by approximately $600,000 per year.

Crystal Water Company applied to the DPUC for rate relief on July 8, 2005. The company had requested a 27.6 percent across the board rate increase and an allowed return on equity of 10.5 percent. The DPUC rendered its final decision on December 28, 2005.

According to Marshall T. Chiaraluce, Chairman and President of Connecticut Water Service, the Company believes the DPUC decision is fair and balanced. Mr. Chiaraluce states, "We are pleased that the Department recognized our more than $10 million dollar infrastructure investment in the Company since the last rate increase in the mid-1990's, and we believe the decision validates our strategy of prudent capital investment in our water systems."

The DPUC stated in its final decision, "The Department's inspection on September 2, 2005, revealed that the seven water systems (of Crystal Water) are in good operating condition and well maintained. All of the water systems have sufficient supply to meet both average day and maximum demand."

The Crystal Water Company of Danielson, which is based in Danielson, Connecticut, serves about 5,000 customers or approximately 17,000 people in northeastern Connecticut. Crystal Water Company has two divisions, Crystal and Gallup, following a merger with Gallup Water Service in 2005. Crystal Water Company and Gallup Water Service were acquired by Connecticut Water Service, Inc. in 1999 in separate transactions.

FOR MORE INFORMATION

               David C. Benoit - 860-669-8630 Ext. 3030
                   CFO and Vice President - Finance
                    Connecticut Water Service, Inc.
              93 West Main Street, Clinton, CT 06413-1600

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 in 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 of rate relief, when necessary, 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, 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 contract work. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.