Connecticut Water Company 93 West Main Street Clinton, CT ###-###-#### Office: 860 ###-###-#### Fax: 860 ###-###-#### Customer Service: 800 ###-###-####

Exhibit 10.1

Connecticut Water Company 93 West Main Street Clinton, CT ###-###-####

Office: 860 ###-###-#### Fax: 860 ###-###-#### Customer Service: 800 ###-###-####

October 5, 2007

Mr. Nicholas Rinaldi
51 Fanningberry Drive
Marion, CT 06444

Dear Nick:

I am extremely pleased to offer you the position of Controller reporting directly to David Beroit Vice President of Finance & CFO of Connecticut Water Service, Inc.

The attached compensation offer outlines the key dimensions of the compensation package. Also included is an outline of our standard benefits package.

We are excited about the prospect of you joining our team. Your position will be highly prominent and a central tenant of my strategy for success. There is nothing more important to me than developing a world class workforce and leadership team. While there is much to do, with your leadership, I am confident we will achieve great things.

If the attached documentation is acceptable, please initial each page of the Term Sheet and return to me by fax at ###-###-#### or similar.

I very much look forward to working with you and making Connecticut Water an even greater company.

Very truly yours

DB/jd/file
Enclosures

Accepted and date:

Nicholas Rinaldi		Date

Connecticut Water Company 93 West Main Street Clinton, CT ###-###-####

Office: 860 ###-###-#### Fax: 860 ###-###-#### Customer Service: 800 ###-###-####

Connecticut Water Service, Inc.
Executive Compensation Term Sheet

Title:		Controller
Reports to:		VP Finance & CFO
Base Salary:		$130,000 per year, paid bi-weekly. To be reviewed annually. 2007 Incentive award- $20,000 based on achievement of specific initiatives.
2008
Annual Incentive Award:		15% of salary midpoint at target ($125,654) 8% at threshold
		25% maximum
		Taken in cash, Performance Stock, or Restricted Stock, determined by Compensation Committee of the Board based on financial perfomance, corporate indicators and strategic initiatives.
2008
Long Term Incentives:		Annual awards of Restricted Stock consistent with 2004 Performance Stock Plan, with value equal to annual incentive plan.
		Deferred Compensation Agreement; defer up to 12% of salary with interest earned at Moody’s AAA Corporate Bond Yield average plus an additional 1.5 to 3%.
		Pension and Supplemental Executive Retirement Plan; 60% of last 5 year average base salary, including bonus, reduced by Pension payments from previous employers. Five year vesting.
Vacation:		Four (4) weeks
Holidays:		Thirteen (13) paid with two (2) personal days
401(k):		Yes, 50% match to statutory maximum, first 4%
Professional Certifications:		Cost covered

Accepted and date:

Nicholas Rinaldi		Date

Connecticut Water Company 93 West Main Street Clinton, CT ###-###-####

Office: 860 ###-###-#### Fax: 860 ###-###-#### Customer Service: 800 ###-###-####

Executive Compensation Term Sheet — Page 2

Insurance:		See standard Company documentation
		Medical — managed care and point-of-service options; employee pays 25% of premium
		Dental— yes; with employee contribution
		Eye Care — disconnts on routine exams and prescription eye wear
		Life — 1 times salary up to $250,000; premium fully paid by company
		Short Term Disability — 100% of salary for first 90 days; 60% to 180 days
		Long Term Disability — 60% of salary; $10,000/month max
		Employee Counseling Assistance
		Flexible Medical Spending Account
Change in Control:		1-year salary and annual incentive award.
Cell phone:		Yes
Start Date:		tbd

Accepted and date:

Nicholas Rinaldi		Date

Connecticut Water Company 93 West Main Street Clinton, CT ###-###-####

Office: 860 ###-###-#### Fax: 860 ###-###-#### Customer Service: 800 ###-###-####

Connecticut Water Service, Inc.
The Connecticut Water Company

Other Employee Benefits

	•		Medical Insurance — managed and point-of-service options. Employees pays 25% of premium
	•		Holidays — Thirteen (13) paid per year
	•		Personal — Two (2) per year
	•		Dental Insurance — basic and premium coverage; employee pays a portion of premium
	•		Savings Plan — 401(k) with Company match of $0.50 to employee’s $1.00 up to 4% of covered compensation
	•		Pension Plan — Company paid; 5 year vesting
	•		Flexible Spending — pre-tax salary deferral for reimbursement of miscellaneous medical expense and dependent daycare expense
	•		Eyewear Discount Program — discounts on frames, lenses, routine eye exam
	•		Life Insurance — 1 X of annual salary; paid in full by company
	•		Employee Assistance Program — confidential, toll-free number for counseling
	•		Tuition Reimbursement — 80% for approved courses up to a max of $4,000 per year; $15,000 lifetime max.
	•		Direct Stock Purchase — allows employees to purchase CTWS stock without a broker’s fee