<PAGE> PAGE 1
000 A000000 10/31/97
000 C000000 0000763749
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 VOYAGEUR MUTUAL FUNDS III, INC.
001 B000000 811-4547
001 C000000 2152552926
002 A000000 2005 MARKET STREET
002 B000000 PHILADELPHIA
002 C000000 PA
002 D010000 19103
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 GROWTH STOCK FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C020300 AGGRESSIVE GROWTH FUND
007 C030300 N
007 C010400 4
007 C010500 5
007 C020500 TAX-EFFICIENT EQUITY FUND
007 C030500 N
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 DELAWARE MANAGEMENT COMPANY, INC.
008 B00AA01 A
008 C00AA01 801-32108
008 D01AA01 PHILADELPHIA
008 D02AA01 PA
008 D03AA01 19103
011 A00AA01 DELAWARE DISTRIBUTORS, L.P.
011 B00AA01 8-29755
011 C01AA01 PHILADELPHIA
011 C02AA01 PA
011 C03AA01 19103
012 A00AA01 DELAWARE SERVICE COMPANY, INC.
012 B00AA01 84-1640
<PAGE> PAGE 2
012 C01AA01 PHILADELPHIA
012 C02AA01 PA
012 C03AA01 19103
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 100
019 C00AA00 DELAWARECX
022 A000001 GOLDMAN SACHS
022 B000001 13-5108880
022 C000001 678370
022 D000001 164527
022 A000002 STARBOARD CAPITAL
022 C000002 361590
022 D000002 472524
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000003 13-5674085
022 C000003 379842
022 D000003 227729
022 A000004 PRUDENTIAL BACHE
022 C000004 249636
022 D000004 223524
022 A000005 SMITH BARNEY
022 B000005 13-1912900
022 C000005 238142
022 D000005 227564
022 A000006 FIRST BOSTON
022 B000006 13-5659485
022 C000006 353402
022 D000006 86609
022 A000007 DONALDSON LUFKIN
022 B000007 13-2741729
022 C000007 235185
022 D000007 149977
022 A000008 BEAR STEARNS
022 B000008 13-3299429
022 C000008 200789
022 D000008 172803
022 A000009 MORGAN STANLEY
022 B000009 13-2655998
022 C000009 269334
022 D000009 68322
022 A000010 SALOMON BROTHERS
022 B000010 13-3082694
022 C000010 210829
022 D000010 126170
023 C000000 5680140
023 D000000 4123660
024 00AA00 N
027 000000 Y
077 A000000 Y
077 Q010000 Y
<PAGE> PAGE 3
028 A010100 333
028 A020100 0
028 A030100 0
028 A040100 286
028 B010100 946
028 B020100 0
028 B030100 0
028 B040100 1128
028 C010100 500
028 C020100 0
028 C030100 0
028 C040100 1974
028 D010100 424
028 D020100 1035
028 D030100 0
028 D040100 847
028 E010100 197
028 E020100 0
028 E030100 0
028 E040100 1058
028 F010100 494
028 F020100 0
028 F030100 0
028 F040100 680
028 G010100 2894
028 G020100 1035
028 G030100 0
028 G040100 5973
028 H000100 2661
029 000100 Y
030 A000100 19
030 B000100 4.75
030 C000100 0.00
031 A000100 3
031 B000100 0
032 000100 16
033 000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 97
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 3
043 000100 67
044 000100 0
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
<PAGE> PAGE 4
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
070 A010100 Y
070 A020100 Y
070 B010100 Y
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 Y
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 1982
<PAGE> PAGE 5
071 B000100 5472
071 C000100 33127
071 D000100 6
072 A000100 6
072 B000100 11
072 C000100 361
072 D000100 0
072 E000100 0
072 F000100 198
072 G000100 0
072 H000100 11
072 I000100 33
072 J000100 5
072 K000100 3
072 L000100 17
072 M000100 2
072 N000100 16
072 O000100 3
072 P000100 0
072 Q000100 0
072 R000100 16
072 S000100 1
072 T000100 56
072 U000100 0
072 V000100 0
072 W000100 3
072 X000100 364
072 Y000100 11
072 Z000100 19
072AA000100 1832
072BB000100 41
072CC010100 12262
072CC020100 0
072DD010100 129
072DD020100 0
072EE000100 947
073 A010100 0.1000
073 A020100 0.0000
073 B000100 0.6900
073 C000100 0.0000
074 A000100 0
074 B000100 0
074 C000100 1035
074 D000100 0
074 E000100 0
074 F000100 37534
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 1060
074 K000100 0
<PAGE> PAGE 6
074 L000100 65
074 M000100 9
074 N000100 39703
074 O000100 1035
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 103
074 S000100 0
074 T000100 38565
074 U010100 1357
074 U020100 0
074 V010100 28.42
074 V020100 0.00
074 W000100 0.0000
074 X000100 2363
074 Y000100 0
075 A000100 0
075 B000100 39467
076 000100 0.00
028 A010300 153
028 A020300 0
028 A030300 0
028 A040300 155
028 B010300 102
028 B020300 0
028 B030300 0
028 B040300 146
028 C010300 155
028 C020300 0
028 C030300 0
028 C040300 2795
028 D010300 565
028 D020300 66
028 D030300 0
028 D040300 59
028 E010300 3636
028 E020300 0
028 E030300 0
028 E040300 111
028 F010300 4784
028 F020300 0
028 F030300 0
028 F040300 491
028 G010300 9395
028 G020300 66
028 G030300 0
028 G040300 3757
028 H000300 5563
<PAGE> PAGE 7
029 000300 Y
030 A000300 88
030 B000300 4.75
030 C000300 0.00
031 A000300 14
031 B000300 0
032 000300 74
033 000300 0
042 A000300 0
042 B000300 0
042 C000300 0
042 D000300 88
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 12
043 000300 11
044 000300 0
062 A000300 N
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
070 A010300 Y
070 A020300 Y
070 B010300 Y
070 B020300 N
070 C010300 N
070 C020300 N
070 D010300 Y
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 Y
<PAGE> PAGE 8
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
070 K020300 N
070 L010300 Y
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 N
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 12084
071 B000300 10658
071 C000300 4965
071 D000300 215
072 A000300 6
072 B000300 15
072 C000300 6
072 D000300 0
072 E000300 0
072 F000300 31
072 G000300 0
072 H000300 2
072 I000300 8
072 J000300 4
072 K000300 1
072 L000300 1
072 M000300 2
072 N000300 6
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 6
072 S000300 1
072 T000300 10
072 U000300 0
072 V000300 0
072 W000300 0
072 X000300 72
072 Y000300 10
072 Z000300 -41
<PAGE> PAGE 9
072AA000300 2213
072BB000300 526
072CC010300 1037
072CC020300 0
072DD010300 0
072DD020300 0
072EE000300 66
073 A010300 0.0000
073 A020300 0.0000
073 B000300 0.2450
073 C000300 0.0000
074 A000300 63
074 B000300 0
074 C000300 4363
074 D000300 0
074 E000300 0
074 F000300 9002
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 1404
074 K000300 0
074 L000300 383
074 M000300 18
074 N000300 15233
074 O000300 1730
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 0
074 S000300 0
074 T000300 13503
074 U010300 714
074 U020300 0
074 V010300 18.91
074 V020300 0.00
074 W000300 0.0000
074 X000300 843
074 Y000300 0
075 A000300 0
075 B000300 6757
076 000300 0.00
028 A010500 0
028 A020500 0
028 A030500 0
028 A040500 0
028 B010500 0
028 B020500 0
028 B030500 0
<PAGE> PAGE 10
028 B040500 0
028 C010500 1583
028 C020500 0
028 C030500 0
028 C040500 0
028 D010500 439
028 D020500 0
028 D030500 0
028 D040500 0
028 E010500 1185
028 E020500 0
028 E030500 0
028 E040500 0
028 F010500 2147
028 F020500 0
028 F030500 0
028 F040500 2
028 G010500 5354
028 G020500 0
028 G030500 0
028 G040500 2
028 H000500 3433
029 000500 Y
030 A000500 49
030 B000500 4.75
030 C000500 0.00
031 A000500 9
031 B000500 0
032 000500 40
033 000500 0
042 A000500 0
042 B000500 0
042 C000500 0
042 D000500 0
042 E000500 0
042 F000500 0
042 G000500 0
042 H000500 0
043 000500 0
044 000500 0
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
<PAGE> PAGE 11
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
070 A010500 Y
070 A020500 Y
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 N
070 E010500 Y
070 E020500 N
070 F010500 Y
070 F020500 N
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 N
070 M010500 Y
070 M020500 N
070 N010500 N
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 N
070 P020500 N
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 4837
071 B000500 115
071 C000500 2884
071 D000500 4
072 A000500 4
072 B000500 4
072 C000500 11
072 D000500 0
<PAGE> PAGE 12
072 E000500 0
072 F000500 6
072 G000500 0
072 H000500 0
072 I000500 1
072 J000500 3
072 K000500 0
072 L000500 1
072 M000500 0
072 N000500 6
072 O000500 0
072 P000500 0
072 Q000500 0
072 R000500 2
072 S000500 1
072 T000500 3
072 U000500 0
072 V000500 0
072 W000500 3
072 X000500 26
072 Y000500 14
072 Z000500 3
072AA000500 2
072BB000500 15
072CC010500 41
072CC020500 0
072DD010500 0
072DD020500 0
072EE000500 0
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 1
074 B000500 485
074 C000500 0
074 D000500 0
074 E000500 0
074 F000500 4749
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 812
074 K000500 0
074 L000500 4
074 M000500 0
074 N000500 6051
074 O000500 657
074 P000500 13
074 Q000500 0
074 R010500 0
<PAGE> PAGE 13
074 R020500 0
074 R030500 0
074 R040500 0
074 S000500 0
074 T000500 5381
074 U010500 296
074 U020500 305
074 V010500 8.96
074 V020500 0.00
074 W000500 0.0000
074 X000500 164
074 Y000500 0
075 A000500 0
075 B000500 2522
076 000500 0.00
SIGNATURE ROSEMARY E. MILNER
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 011
<NAME> GROWTH STOCK FUND A CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 26,330,307
<INVESTMENTS-AT-VALUE> 38,592,375
<RECEIVABLES> 1,125,021
<ASSETS-OTHER> (14,368)
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39,703,028
<PAYABLE-FOR-SECURITIES> 1,035,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,559
<TOTAL-LIABILITIES> 1,137,559
<SENIOR-EQUITY> 13,567
<PAID-IN-CAPITAL-COMMON> 24,481,999
<SHARES-COMMON-STOCK> 1,283,757
<SHARES-COMMON-PRIOR> 1,352,085
<ACCUMULATED-NII-CURRENT> 116,624
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,691,211
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,262,068
<NET-ASSETS> 36,526,011
<DIVIDEND-INCOME> 361,209
<INTEREST-INCOME> 11,040
<OTHER-INCOME> 0
<EXPENSES-NET> 353,046
<NET-INVESTMENT-INCOME> 19,203
<REALIZED-GAINS-CURRENT> 1,790,873
<APPREC-INCREASE-CURRENT> 3,734,439
<NET-CHANGE-FROM-OPS> 5,544,515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 129,269
<DISTRIBUTIONS-OF-GAINS> 896,481
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 93,326
<NUMBER-OF-SHARES-REDEEMED> 195,379
<SHARES-REINVESTED> 33,724
<NET-CHANGE-IN-ASSETS> 2,417,061
<ACCUMULATED-NII-PRIOR> 129,542
<ACCUMULATED-GAINS-PRIOR> 944,979
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 197,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 364,080
<AVERAGE-NET-ASSETS> 37,405,924
<PER-SHARE-NAV-BEGIN> 25.340
<PER-SHARE-NII> 0.100
<PER-SHARE-GAIN-APPREC> 3.800
<PER-SHARE-DIVIDEND> 0.100
<PER-SHARE-DISTRIBUTIONS> 0.690
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 28.450
<EXPENSE-RATIO> 1.750
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 012
<NAME> GROWTH STOCK FUND B CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 26,330,307
<INVESTMENTS-AT-VALUE> 38,592,375
<RECEIVABLES> 1,125,021
<ASSETS-OTHER> (14,368)
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39,703,028
<PAYABLE-FOR-SECURITIES> 1,035,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,559
<TOTAL-LIABILITIES> 1,137,559
<SENIOR-EQUITY> 13,567
<PAID-IN-CAPITAL-COMMON> 24,481,999
<SHARES-COMMON-STOCK> 41,251
<SHARES-COMMON-PRIOR> 47,390
<ACCUMULATED-NII-CURRENT> 116,624
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,691,211
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,262,068
<NET-ASSETS> 1,154,110
<DIVIDEND-INCOME> 361,209
<INTEREST-INCOME> 11,040
<OTHER-INCOME> 0
<EXPENSES-NET> 353,046
<NET-INVESTMENT-INCOME> 19,203
<REALIZED-GAINS-CURRENT> 1,790,873
<APPREC-INCREASE-CURRENT> 3,734,439
<NET-CHANGE-FROM-OPS> 5,544,515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 30,200
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,203
<NUMBER-OF-SHARES-REDEEMED> 10,344
<SHARES-REINVESTED> 1,001
<NET-CHANGE-IN-ASSETS> 2,417,061
<ACCUMULATED-NII-PRIOR> 129,542
<ACCUMULATED-GAINS-PRIOR> 944,979
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 197,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 364,080
<AVERAGE-NET-ASSETS> 1,226,338
<PER-SHARE-NAV-BEGIN> 24.930
<PER-SHARE-NII> 0.080
<PER-SHARE-GAIN-APPREC> 3.660
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.690
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 27.980
<EXPENSE-RATIO> 2.490
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 013
<NAME> GROWTH STOCK FUND C CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 26,330,307
<INVESTMENTS-AT-VALUE> 38,592,375
<RECEIVABLES> 1,125,021
<ASSETS-OTHER> (14,368)
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39,703,028
<PAYABLE-FOR-SECURITIES> 1,035,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,559
<TOTAL-LIABILITIES> 1,137,559
<SENIOR-EQUITY> 13,567
<PAID-IN-CAPITAL-COMMON> 24,481,999
<SHARES-COMMON-STOCK> 31,647
<SHARES-COMMON-PRIOR> 28,543
<ACCUMULATED-NII-CURRENT> 116,624
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,691,211
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,262,068
<NET-ASSETS> 885,319
<DIVIDEND-INCOME> 361,209
<INTEREST-INCOME> 11,040
<OTHER-INCOME> 0
<EXPENSES-NET> 353,046
<NET-INVESTMENT-INCOME> 19,203
<REALIZED-GAINS-CURRENT> 1,790,873
<APPREC-INCREASE-CURRENT> 3,734,439
<NET-CHANGE-FROM-OPS> 5,544,515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 20,811
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,153
<NUMBER-OF-SHARES-REDEEMED> 2,769
<SHARES-REINVESTED> 721
<NET-CHANGE-IN-ASSETS> 2,417,061
<ACCUMULATED-NII-PRIOR> 129,542
<ACCUMULATED-GAINS-PRIOR> 944,979
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 197,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 364,080
<AVERAGE-NET-ASSETS> 834,276
<PER-SHARE-NAV-BEGIN> 24.930
<PER-SHARE-NII> 0.040
<PER-SHARE-GAIN-APPREC> 3.690
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.690
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 27.970
<EXPENSE-RATIO> 2.490
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 014
<NAME> GROWTH STOCK FUND INSTITUTIONAL CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 26,330,307
<INVESTMENTS-AT-VALUE> 38,592,375
<RECEIVABLES> 1,125,021
<ASSETS-OTHER> (14,368)
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 39,703,028
<PAYABLE-FOR-SECURITIES> 1,035,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 102,559
<TOTAL-LIABILITIES> 1,137,559
<SENIOR-EQUITY> 13,567
<PAID-IN-CAPITAL-COMMON> 24,481,999
<SHARES-COMMON-STOCK> 1
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 116,624
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,691,211
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,262,068
<NET-ASSETS> 29
<DIVIDEND-INCOME> 361,209
<INTEREST-INCOME> 11,040
<OTHER-INCOME> 0
<EXPENSES-NET> 353,046
<NET-INVESTMENT-INCOME> 19,203
<REALIZED-GAINS-CURRENT> 1,790,873
<APPREC-INCREASE-CURRENT> 3,734,439
<NET-CHANGE-FROM-OPS> 5,544,515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,417,061
<ACCUMULATED-NII-PRIOR> 129,542
<ACCUMULATED-GAINS-PRIOR> 944,979
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 197,533
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 364,080
<AVERAGE-NET-ASSETS> 29
<PER-SHARE-NAV-BEGIN> 27.520
<PER-SHARE-NII> 0.000
<PER-SHARE-GAIN-APPREC> 1.680
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.690
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 28.510
<EXPENSE-RATIO> 1.500
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 031
<NAME> AGGRESSIVE GROWTH FUND A CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 12,327,998
<INVESTMENTS-AT-VALUE> 13,365,058
<RECEIVABLES> 1,787,133
<ASSETS-OTHER> 81,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15,233,386
<PAYABLE-FOR-SECURITIES> 1,731,759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,038)
<TOTAL-LIABILITIES> 1,730,721
<SENIOR-EQUITY> 7,139
<PAID-IN-CAPITAL-COMMON> 10,810,863
<SHARES-COMMON-STOCK> 496,463
<SHARES-COMMON-PRIOR> 420,178
<ACCUMULATED-NII-CURRENT> (113,805)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,761,408
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,037,060
<NET-ASSETS> 9,449,017
<DIVIDEND-INCOME> 6,044
<INTEREST-INCOME> 15,258
<OTHER-INCOME> 0
<EXPENSES-NET> 62,367
<NET-INVESTMENT-INCOME> (41,065)
<REALIZED-GAINS-CURRENT> 1,686,538
<APPREC-INCREASE-CURRENT> 960,808
<NET-CHANGE-FROM-OPS> 2,606,281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 59,426
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 299,979
<NUMBER-OF-SHARES-REDEEMED> 227,207
<SHARES-REINVESTED> 3,512
<NET-CHANGE-IN-ASSETS> 8,242,780
<ACCUMULATED-NII-PRIOR> 2,815
<ACCUMULATED-GAINS-PRIOR> 65,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31,120
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 72,359
<AVERAGE-NET-ASSETS> 5,813,435
<PER-SHARE-NAV-BEGIN> 11.770
<PER-SHARE-NII> (0.060)
<PER-SHARE-GAIN-APPREC> 7.570
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.250
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 19.030
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 032
<NAME> AGGRESSIVE GROWTH FUND B CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 12,327,998
<INVESTMENTS-AT-VALUE> 13,365,058
<RECEIVABLES> 1,787,133
<ASSETS-OTHER> 81,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15,233,386
<PAYABLE-FOR-SECURITIES> 1,731,759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,038)
<TOTAL-LIABILITIES> 1,730,721
<SENIOR-EQUITY> 7,139
<PAID-IN-CAPITAL-COMMON> 10,810,863
<SHARES-COMMON-STOCK> 135,113
<SHARES-COMMON-PRIOR> 8,188
<ACCUMULATED-NII-CURRENT> (113,805)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,761,408
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,037,060
<NET-ASSETS> 2,516,574
<DIVIDEND-INCOME> 6,044
<INTEREST-INCOME> 15,258
<OTHER-INCOME> 0
<EXPENSES-NET> 62,367
<NET-INVESTMENT-INCOME> (41,065)
<REALIZED-GAINS-CURRENT> 1,686,538
<APPREC-INCREASE-CURRENT> 960,808
<NET-CHANGE-FROM-OPS> 2,606,281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,968
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 131,336
<NUMBER-OF-SHARES-REDEEMED> 4,530
<SHARES-REINVESTED> 120
<NET-CHANGE-IN-ASSETS> 8,242,780
<ACCUMULATED-NII-PRIOR> 2,815
<ACCUMULATED-GAINS-PRIOR> 65,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31,120
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 72,359
<AVERAGE-NET-ASSETS> 460,831
<PER-SHARE-NAV-BEGIN> 11.570
<PER-SHARE-NII> (0.020)
<PER-SHARE-GAIN-APPREC> 7.330
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.250
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 18.630
<EXPENSE-RATIO> 2.44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 033
<NAME> AGGRESSIVE GROWTH FUND C CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 12,327,998
<INVESTMENTS-AT-VALUE> 13,365,058
<RECEIVABLES> 1,787,133
<ASSETS-OTHER> 81,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15,233,386
<PAYABLE-FOR-SECURITIES> 1,731,759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,038)
<TOTAL-LIABILITIES> 1,730,721
<SENIOR-EQUITY> 7,139
<PAID-IN-CAPITAL-COMMON> 10,810,863
<SHARES-COMMON-STOCK> 53,523
<SHARES-COMMON-PRIOR> 19,327
<ACCUMULATED-NII-CURRENT> (113,805)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,761,408
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,037,060
<NET-ASSETS> 987,735
<DIVIDEND-INCOME> 6,044
<INTEREST-INCOME> 15,258
<OTHER-INCOME> 0
<EXPENSES-NET> 62,367
<NET-INVESTMENT-INCOME> (41,065)
<REALIZED-GAINS-CURRENT> 1,686,538
<APPREC-INCREASE-CURRENT> 960,808
<NET-CHANGE-FROM-OPS> 2,606,281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 4,873
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 36,913
<NUMBER-OF-SHARES-REDEEMED> 3,010
<SHARES-REINVESTED> 293
<NET-CHANGE-IN-ASSETS> 8,242,780
<ACCUMULATED-NII-PRIOR> 2,815
<ACCUMULATED-GAINS-PRIOR> 65,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31,120
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 72,359
<AVERAGE-NET-ASSETS> 421,546
<PER-SHARE-NAV-BEGIN> 11.470
<PER-SHARE-NII> (0.070)
<PER-SHARE-GAIN-APPREC> 7.300
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.250
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 18.450
<EXPENSE-RATIO> 2.53
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUTAL FUNDS III, INC.
<SERIES>
<NUMBER> 034
<NAME> AGGRESSIVE GROWTH FUND INSTITUTIONAL CLASS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 12,327,998
<INVESTMENTS-AT-VALUE> 13,365,058
<RECEIVABLES> 1,787,133
<ASSETS-OTHER> 81,195
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15,233,386
<PAYABLE-FOR-SECURITIES> 1,731,759
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,038)
<TOTAL-LIABILITIES> 1,730,721
<SENIOR-EQUITY> 7,139
<PAID-IN-CAPITAL-COMMON> 10,810,863
<SHARES-COMMON-STOCK> 28,815
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (113,805)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,761,408
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,037,060
<NET-ASSETS> 549,339
<DIVIDEND-INCOME> 6,044
<INTEREST-INCOME> 15,258
<OTHER-INCOME> 0
<EXPENSES-NET> 62,367
<NET-INVESTMENT-INCOME> (41,065)
<REALIZED-GAINS-CURRENT> 1,686,538
<APPREC-INCREASE-CURRENT> 960,808
<NET-CHANGE-FROM-OPS> 2,606,281
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34,866
<NUMBER-OF-SHARES-REDEEMED> 6,051
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 8,242,780
<ACCUMULATED-NII-PRIOR> 2,815
<ACCUMULATED-GAINS-PRIOR> 65,582
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31,120
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 72,359
<AVERAGE-NET-ASSETS> 172,485
<PER-SHARE-NAV-BEGIN> 17.150
<PER-SHARE-NII> 0.000
<PER-SHARE-GAIN-APPREC> 1.910
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 19.060
<EXPENSE-RATIO> 1.53
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 051
<NAME> TAX EFFICIENT EQUITY FUND A CLASS
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 5,193,451
<INVESTMENTS-AT-VALUE> 5,234,290
<RECEIVABLES> 815,604
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,296
<TOTAL-ASSETS> 6,051,190
<PAYABLE-FOR-SECURITIES> 669,732
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 669,732
<SENIOR-EQUITY> 6,006
<PAID-IN-CAPITAL-COMMON> 5,344,948
<SHARES-COMMON-STOCK> 296,270
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,538
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,873)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,839
<NET-ASSETS> 2,654,998
<DIVIDEND-INCOME> 10,762
<INTEREST-INCOME> 4,368
<OTHER-INCOME> 0
<EXPENSES-NET> 12,592
<NET-INVESTMENT-INCOME> 2,538
<REALIZED-GAINS-CURRENT> (12,873)
<APPREC-INCREASE-CURRENT> 40,839
<NET-CHANGE-FROM-OPS> 30,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 296,524
<NUMBER-OF-SHARES-REDEEMED> 254
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 5,381,458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,312
<AVERAGE-NET-ASSETS> 1,340,848
<PER-SHARE-NAV-BEGIN> 8.500
<PER-SHARE-NII> 0.005
<PER-SHARE-GAIN-APPREC> 0.455
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.960
<EXPENSE-RATIO> 1.500
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 052
<NAME> TAX EFFICIENT EQUITY FUND B CLASS
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 5,193,451
<INVESTMENTS-AT-VALUE> 5,234,290
<RECEIVABLES> 815,604
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,296
<TOTAL-ASSETS> 6,051,190
<PAYABLE-FOR-SECURITIES> 669,732
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 669,732
<SENIOR-EQUITY> 6,006
<PAID-IN-CAPITAL-COMMON> 5,344,948
<SHARES-COMMON-STOCK> 108,240
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,538
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,873)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,839
<NET-ASSETS> 968,810
<DIVIDEND-INCOME> 10,762
<INTEREST-INCOME> 4,368
<OTHER-INCOME> 0
<EXPENSES-NET> 12,592
<NET-INVESTMENT-INCOME> 2,538
<REALIZED-GAINS-CURRENT> (12,873)
<APPREC-INCREASE-CURRENT> 40,839
<NET-CHANGE-FROM-OPS> 30,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 108,240
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 5,381,458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,312
<AVERAGE-NET-ASSETS> 317,788
<PER-SHARE-NAV-BEGIN> 8.500
<PER-SHARE-NII> (0.016)
<PER-SHARE-GAIN-APPREC> 0.466
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.950
<EXPENSE-RATIO> 2.200
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 053
<NAME> TAX EFFICIENT EQUITY FUND C CLASS
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 5,193,451
<INVESTMENTS-AT-VALUE> 5,234,290
<RECEIVABLES> 815,604
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,296
<TOTAL-ASSETS> 6,051,190
<PAYABLE-FOR-SECURITIES> 669,732
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 669,732
<SENIOR-EQUITY> 6,006
<PAID-IN-CAPITAL-COMMON> 5,344,948
<SHARES-COMMON-STOCK> 19,570
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,538
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,873)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,839
<NET-ASSETS> 175,182
<DIVIDEND-INCOME> 10,762
<INTEREST-INCOME> 4,368
<OTHER-INCOME> 0
<EXPENSES-NET> 12,592
<NET-INVESTMENT-INCOME> 2,538
<REALIZED-GAINS-CURRENT> (12,873)
<APPREC-INCREASE-CURRENT> 40,839
<NET-CHANGE-FROM-OPS> 30,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19,570
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 5,381,458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,312
<AVERAGE-NET-ASSETS> 61,475
<PER-SHARE-NAV-BEGIN> 8.500
<PER-SHARE-NII> (0.015)
<PER-SHARE-GAIN-APPREC> 0.465
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.950
<EXPENSE-RATIO> 2.200
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000763749
<NAME> VOYAGEUR MUTUAL FUNDS III, INC.
<SERIES>
<NUMBER> 054
<NAME> TAX EFFICIENT EQUITY FUND INSTITUTIONAL CLASS
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 5,193,451
<INVESTMENTS-AT-VALUE> 5,234,290
<RECEIVABLES> 815,604
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,296
<TOTAL-ASSETS> 6,051,190
<PAYABLE-FOR-SECURITIES> 669,732
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 669,732
<SENIOR-EQUITY> 6,006
<PAID-IN-CAPITAL-COMMON> 5,344,948
<SHARES-COMMON-STOCK> 176,471
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,538
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (12,873)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 40,839
<NET-ASSETS> 1,582,468
<DIVIDEND-INCOME> 10,762
<INTEREST-INCOME> 4,368
<OTHER-INCOME> 0
<EXPENSES-NET> 12,592
<NET-INVESTMENT-INCOME> 2,538
<REALIZED-GAINS-CURRENT> (12,873)
<APPREC-INCREASE-CURRENT> 40,839
<NET-CHANGE-FROM-OPS> 30,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 176,471
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 5,381,458
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,307
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,312
<AVERAGE-NET-ASSETS> 1,541,099
<PER-SHARE-NAV-BEGIN> 8.730
<PER-SHARE-NII> 0.014
<PER-SHARE-GAIN-APPREC> 0.226
<PER-SHARE-DIVIDEND> 0.000
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 8.970
<EXPENSE-RATIO> 1.200
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
