This report is respectfully presented to the nearly 7 million citizens and inhabitants of the Delaware River Basin, to the Congress of the United States and to the Legislatures of the States of New Jersey, Delaware, New York and Commonwealth of Pennsylvania. Under the Delaware River Basin Compact, the Commission is the agent of these five signatory governments to insure continuing long-range regional development of the water resources of the Delaware, one of the Nation's vital river systems. It is the only river basin whose water matters are governed under such an interstate-federal partnership.The period covered by this third Annual Report of the Delaware Basin Commission is the fiscal year that ended on June 30, 1965.