<PAGE> PAGE 1
000 B000000 09/30/97
000 C000000 773826
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 THE RODNEY SQUARE TAX-EXEMPT FUND
001 B000000 811-4372
001 C000000 3026518280
002 A000000 RODNEY SQUARE NORTH, 1100 N. MARKET ST.
002 B000000 WILMINGTON
002 C000000 DE
002 D010000 19890
002 D020000 0001
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 THE RODNEY SQUARE TAX-EXEMPT FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A00AA01 RODNEY SQUARE MANAGEMENT CORPORATION
008 B00AA01 A
008 C00AA01 801-22071
008 D01AA01 WILMINGTON
008 D02AA01 DE
008 D03AA01 19890
<PAGE> PAGE 2
010 A00AA01 RODNEY SQUARE MANAGEMENT CORPORATION
010 B00AA01 801-22071
010 C01AA01 WILMINGTON
010 C02AA01 DE
010 C03AA01 19890
011 A00AA01 RODNEY SQUARE DISTRIBUTORS,INC.
011 B00AA01 8-37006
011 C01AA01 WILMINGTON
011 C02AA01 DE
011 C03AA01 19890
012 A00AA01 RODNEY SQUARE MANAGEMENT CORPORATION
012 B00AA01 85-00761
012 C01AA01 WILMINGTON
012 C02AA01 DE
012 C03AA01 19890
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 PHILADELPHIA
013 B02AA01 PA
013 B03AA01 19103
014 A00AA01 WILMINGTON BROKERAGE SERVICES, INC.
014 B00AA01 8-31441
015 A00AA01 WILMINGTON TRUST COMPANY
015 B00AA01 C
015 C01AA01 WILMINGTON
015 C02AA01 DE
015 C03AA01 19890
015 E03AA01 X
015 A00AA02 MORGAN GUARANTY TRUST COMPANY
015 B00AA02 S
015 C01AA02 NEW YORK
015 C02AA02 NY
015 C03AA02 10015
015 E01AA02 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 6
019 C00AA00 RODNEYSQUA
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 MORGAN (J.P.) SECURITIES INC.
022 B000001 13-3224016
022 C000001 267472
<PAGE> PAGE 3
022 D000001 134630
022 A000002 NUVEEN (JOHN) & CO. INC.
022 B000002 36-2639476
022 C000002 186120
022 D000002 188995
022 A000003 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000003 36-3595942
022 C000003 199350
022 D000003 155325
022 A000004 GOLDMAN, SACHS & CO.
022 B000004 13-5108800
022 C000004 220447
022 D000004 43800
022 A000005 BEAR, STEARNS & CO., INC.
022 B000005 13-3299429
022 C000005 99410
022 D000005 24500
022 A000006 LEHMAN BROTHERS, INC.
022 B000006 13-2518466
022 C000006 122770
022 D000006 0
022 A000007 PAINEWEBBER, INC.
022 B000007 13-2638166
022 C000007 33465
022 D000007 32065
022 A000008 SUNTRUST CAPITAL MARKETS
022 C000008 35300
022 D000008 24800
022 A000009 SMITH BARNEY SHEARSON, INC.
022 B000009 13-1912900
022 C000009 51365
022 D000009 0
022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH
022 B000010 13-5674085
022 C000010 13900
022 D000010 13900
023 C000000 1250199
023 D000000 674115
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
<PAGE> PAGE 4
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A01AA00 232668
028 A02AA00 20
028 A03AA00 0
028 A04AA00 223935
028 B01AA00 154102
028 B02AA00 25
028 B03AA00 0
028 B04AA00 152185
028 C01AA00 193500
028 C02AA00 25
028 C03AA00 0
028 C04AA00 214713
028 D01AA00 187569
028 D02AA00 23
028 D03AA00 0
028 D04AA00 177072
028 E01AA00 140581
028 E02AA00 23
028 E03AA00 0
028 E04AA00 144922
028 F01AA00 156156
028 F02AA00 23
028 F03AA00 0
028 F04AA00 164272
028 G01AA00 1064576
028 G02AA00 139
028 G03AA00 0
028 G04AA00 1077099
028 H00AA00 0
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
<PAGE> PAGE 5
042 A00AA00 2
042 B00AA00 14
042 C00AA00 0
042 D00AA00 84
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 19
044 00AA00 0
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.470
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
<PAGE> PAGE 6
054 K00AA00 Y
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 Y
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 1000
062 A00AA00 Y
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 99.9
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 42
063 B00AA00 0.0
064 A00AA00 Y
064 B00AA00 N
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
<PAGE> PAGE 7
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 N
070 K01AA00 Y
070 K02AA00 N
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 Y
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
071 A00AA00 0
071 B00AA00 0
071 C00AA00 0
071 D00AA00 0
072 A00AA00 12
072 B00AA00 10211
072 C00AA00 0
072 D00AA00 0
072 E00AA00 0
072 F00AA00 1325
072 G00AA00 0
072 H00AA00 0
072 I00AA00 0
072 J00AA00 0
072 K00AA00 0
072 L00AA00 7
072 M00AA00 6
072 N00AA00 55
072 O00AA00 0
072 P00AA00 0
072 Q00AA00 86
072 R00AA00 29
072 S00AA00 56
072 T00AA00 19
072 U00AA00 0
<PAGE> PAGE 8
072 V00AA00 0
072 W00AA00 36
072 X00AA00 1619
072 Y00AA00 0
072 Z00AA00 8592
072AA00AA00 0
072BB00AA00 0
072CC01AA00 0
072CC02AA00 0
072DD01AA00 8592
072DD02AA00 0
072EE00AA00 0
073 A01AA00 0.0300
073 A02AA00 0.0000
073 B00AA00 0.0000
073 C00AA00 0.0000
074 A00AA00 0
074 B00AA00 0
074 C00AA00 280601
074 D00AA00 0
074 E00AA00 0
074 F00AA00 0
074 G00AA00 0
074 H00AA00 0
074 I00AA00 0
074 J00AA00 0
074 K00AA00 0
074 L00AA00 1134
074 M00AA00 32
074 N00AA00 281767
074 O00AA00 0
074 P00AA00 107
074 Q00AA00 0
074 R01AA00 0
074 R02AA00 0
074 R03AA00 0
074 R04AA00 796
074 S00AA00 0
074 T00AA00 280864
074 U01AA00 280872
074 U02AA00 0
074 V01AA00 1.00
074 V02AA00 0.00
074 W00AA00 0.0000
074 X00AA00 2599
074 Y00AA00 0
075 A00AA00 282014
075 B00AA00 0
076 00AA00 0.00
077 A000000 Y
077 B000000 Y
<PAGE> PAGE 9
078 000000 N
080 A00AA00 AIG
080 C00AA00 50000
081 A00AA00 Y
081 B00AA00 5
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
086 A01AA00 0
086 A02AA00 0
086 B01AA00 0
086 B02AA00 0
086 C01AA00 0
086 C02AA00 0
086 D01AA00 0
086 D02AA00 0
086 E01AA00 0
086 E02AA00 0
086 F01AA00 0
086 F02AA00 0
SIGNATURE CARL M. RIZZO, ESQ.
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<CIK>0000773826
<NAME> RODNEY SQUARE TAX EXEMPT FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 280601
<INVESTMENTS-AT-VALUE> 280601
<RECEIVABLES> 1134
<ASSETS-OTHER> 32
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 281767
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 903
<TOTAL-LIABILITIES> 903
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 280866
<SHARES-COMMON-STOCK> 280872
<SHARES-COMMON-PRIOR> 237193
<ACCUMULATED-NII-CURRENT> 8592
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 280864
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10211
<OTHER-INCOME> 0
<EXPENSES-NET> 1619
<NET-INVESTMENT-INCOME> 8592
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 8592
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 8592
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2251065
<NUMBER-OF-SHARES-REDEEMED> 2207643
<SHARES-REINVESTED> 257
<NET-CHANGE-IN-ASSETS> 43679
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1660)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1325
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1619
<AVERAGE-NET-ASSETS> 282014
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .030
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .030
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
REPORT OF INDEPENDENT AUDITORS
Board of Trustees
The Rodney Square Tax-Exempt Fund
Wilmington, Delaware
In planning and performing our audit of the financial
statements of The Rodney Square Tax-Exempt Fund (the "Fund")
for the year ended September 30, 1997, we considered its
internal control, including procedures for safeguarding
securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-
SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors
or irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of the internal control components does not reduce
to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation
to the financial statements being audited may occur and not
be detected within a timely period by employees in the
normal course of performing their assigned functions.
However, we noted no matters involving the internal control
and its operation, including procedures for safeguarding
securities, that we consider to be material weaknesses as
defined above at September 30, 1997.
This report is intended solely for the information and use
of the Board of Trustees and management of the Fund and the
Securities and Exchange Commission.
October 22, 1997
