FIDELITY COURT STREET TRUST II, N-30D, 1996-07-11

FIDELITY COURT STREET TRUST II
N-30D, 1996-07-11

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SPARTAN(registered trademark)

(registered trademark)
FLORIDA
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
MAY 31, 1996
CONTENTS

<TABLE>
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PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

SPARTAN FLORIDA MUNICIPAL INCOME FUND

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

PERFORMANCE 23 How the fund has done over time.

FUND TALK 25 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 27 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 28 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 33 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 37 Notes to the financial statements.

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first five
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d

SPARTAN FLORIDA MUNICIPAL INCOME FUND

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value), and the effect of the $5 account
closeout fee on an average sized account. You can also look at the fund's
income. If Fidelity had not reimbursed certain fund expenses, the life of
fund total returns, dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Florida Municipal Income Fund -0.85% 4.13% 39.05%

Lehman Brothers Florida Municipal -0.87% 4.19% n/a
Bond Index

Florida Municipal Debt Funds Average -1.44% 3.29% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance over a set period - in
this case, six months, one year or since the fund started on March 16,
1992. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers
Florida Municipal Bond Index, which includes Florida investment-grade
municipal bonds. To measure how the fund's performance stacked up against
its peers, you can compare it to the Florida municipal debt funds average,
which reflects the performance of 80 Florida tax-exempt municipal bond
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. Both benchmarks include reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 LIFE OF
YEAR FUND

Spartan Florida Municipal Income Fund 4.13% 8.14%

Lehman Brothers Florida Municipal 4.19% n/a
Bond Index

Florida Municipal Debt Funds Average 3.29% n/a

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Florida Municipal Income Fund on March 31, 1992, shortly after the fund
started. As the chart shows, by May 31, 1996, the value of your investment
would have grown to $13,843 - a 38.43% increase on your initial investment.
This assumes you still own the fund on May 31, 1996, and therefore does not
include the effect of the $5 account closeout fee. For comparison, look at
how the Lehman Brothers Municipal Bond Index-which reflects the performance
of the investment grade municipal bond market-did over the same period.
With dividends reinvested, the same $10,000 would have grown to $13,362 - a
33.62% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield of
a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
MARCH 16, 1992
SIX MONTHS (COMMENCEME
ENDED NT
MAY 31, YEARS ENDED NOVEMBER 30, OF OPERATIONS)
TO
NOVEMBER 30,

1996 1995 1994 1993 1992

Dividend returns 2.43% 6.30% 5.01% 6.10% 4.74%

Capital appreciation
returns -3.28% 14.78% -12.21% 7.41% 5.19%

Total returns -0.85% 21.08% -7.20% 13.51% 9.93%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

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PERIODS ENDED MAY 31, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.65(cents) 27.31(cents) 55.23(cents)

Annualized dividend rate 5.05% 4.93% 5.03%

30-day annualized yield 5.12% - -

30-day annualized tax-equivalent yield 8.00% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.84 over
the past month, $11.05 over the past six months and $10.97 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield if you're
in the 36% 1996 federal tax bracket, but does not reflect payment of the
federal alternative minimum tax, if applicable.
SPARTAN FLORIDA MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS: In May1996, Jonathan Short became portfolio manager
of Spartan Florida
Municipal Income Fund, replacing
Maureen Newman.

Q. HOW HAS THE FUND PERFORMED, JON?
A. For the six- and 12-month periods ended May 31, 1996, the fund had total
returns of -0.85% and 4.13%, respectively. The Florida municipal debt funds
average returned -1.44% for the same six-month period and 3.29% for the
same 12-month period, as tracked by Lipper Analytical Services. Also, for
the same six- and 12-month periods ended May 31, 1996, the Lehman Brothers
Florida Municipal Bond Index returned -0.87% and 4.19%, respectively.
Q. WHAT IS MEANT BY TOTAL RETURN?
A. Total return is the "total" amount of return to the fund's shareholders,
and reflects both income and changes in share price. Interest income is the
main source of return for a bond fund over the long term. In addition, the
change in a bond fund's share price plays a role in determining total
return based on appreciation or depreciation of the fund's holdings. Let's
look at an example. If someone invested $100 in this fund 12 months ago,
reinvested the dividends and capital gains, and didn't sell before the end
of the period, the investment would have been worth $104.14 as of May 31,
1996. That is what is meant by a total return of 4.14%. This return is
slightly higher than the 4.13% return I cited earlier, which includes the
effect of the $5 account closeout fee.
Q. WHAT FACTORS SHAPED THE MUNICIPAL BOND MARKET'S PERFORMANCE OVER THE
PAST SIX MONTHS?
A. Signs of a strengthening economy caused yields to rise and bond prices
to fall during the period. Throughout the past six months, investors became
increasingly concerned that the strengthening U.S. economy would translate
into higher inflation, which in turn could force interest rates higher.
Even though the Federal Reserve Board lowered short-term interest rates in
January, investors largely discounted the move. In early March, an
employment report came out showing that job growth for February far
exceeded most expectations. The bond market took quite a tumble and it has
been struggling to recover. While both markets have had negative returns,
munis have fared better than Treasuries on a relative basis. That's due to
the relatively low supply of municipals issued during the period, coupled
with diminishing fears of a flat tax.
Q. WHAT HELPED THE FUND PERFORM
BETTER THAN THE FLORIDA MUNICIPAL DEBT FUNDS AVERAGE OVER THE PAST SIX
MONTHS?
A. Performance was helped by a number of specific holdings. For example,
one of the fund's best performers was Alachua County Florida Health
Facility/Santa Fe Health Care Systems. These bonds rose when the hospital
was taken over by another health concern and, as a result, the bonds were
pre-refunded and their credit rating rose to Aaa from A.
Q. WHAT ARE SOME AREAS OF THE MARKET YOU FOCUSED ON SINCE TAKING OVER?
A. I focused on increasing the fund's holdings in intermediate maturity
securities. The yield curve - which is a graphical representation of the
difference in yields between bonds with various maturities - had an upward
slope when I took over the fund. By that I mean that generally bonds with
longer maturities offered higher yields. However, the difference in yields
between bonds with intermediate maturities and those with very long
maturities in my view, wasn't adequate enough to compensate for the added
risk of long-maturity bonds.
Q. WHAT OTHER AREAS OF THE FLORIDA MUNICIPAL BOND MARKET WERE YOU LOOKING
AT?
A. I focused on non-callable securities - which can't be redeemed by their
issuer before their maturity - whenever the spread relationship between
non-callables and callables was attractive. In an environment where the
bond market is rallying, callable bonds can be taken away by their issuer,
while non-callables can't, which can give non-callables an advantage when
it comes to total return. I looked for some interesting opportunities in
zero coupon bonds at levels I viewed as relatively cheap. A zero coupon
security makes no periodic interest payments but instead is sold at a deep
discount from its face value. The buyer of such a bond receives the rate of
return by gradual appreciation of a security, which is redeemed at face
value on a specified maturity date.
Q. WHAT'S AHEAD FOR THE FUND?
A. There are going to be some changes to the fund's investment policies. As
of June 24, 1996, the fund will reserve the right to invest up to 5% of its
assets - down from one-third - in below investment-grade securities. The
fund does not intent to seek out the lower-quality, below investment-grade
bonds. Instead, this change gives the fund additional flexibility under
unusual circumstances. Fidelity also will use two additional agencies -
Duff & Phelps Credit Rating Co. and Fitch Investors Service, L.P., as well
as Moody's Investors Service and Standard & Poor's which the fund already
uses - to determine the credit quality of the fund's bonds.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. Given that falling interest rates were the primary engine driving the
bond market's performance last year, it looks as though it may be difficult
for municipals to match 1995's gains this year. So in my view, identifying
the right securities within the right sectors will likely be the key to
outperforming the market in 1996.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income and exemption from
the Florida intangible tax by
normally investing in
investment-grade municipal
securities
START DATE: March 16, 1992
SIZE: as of May 31, 1996,
more than $385 million
MANAGER: Jonathan Short,
since May 1996; manager,
Fidelity California Municipal
Income Fund; Fidelity
California Insured Municipal
Income,
Fidelity Minnesota Municipal
Income, Spartan Arizona
Municipal Income, Spartan
California Municipal Income
and Spartan California
Intermediate Municipal
Income funds, October
1995; Fidelity Advisor
California Municipal Income
Fund, since February 1996;
joined Fidelity in 1990
(checkmark)

JONATHAN SHORT ON HIS
STRATEGY:
"My overall philosophy in
managing a portfolio is to
stress balance in both
security structure and
positioning along the yield
curve. At the same time, of
course, I'm trying to maintain
the highest yield and
tax-exempt income possible
for the fund's shareholders. I
do pay strict attention to
whether the slope of the yield
curve is providing adequate
yield compensation relative to
risk. As far as credit quality, I
felt that at the end of the
period, credit spreads were
fairly tight, and the difference
between Aaa-rated securities
and Baa-rated securities was
not as significant as it could
have been. I'll continue to be
active in positioning the fund
in those areas of credit quality
that I feel have the potential to
provide the best long-term
value for investors. I also try
to manage the fund to have a
fairly constant duration, one
that's in line with its
benchmark index."

SPARTAN FLORIDA MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

Transportation 14.8 16.3

Electric Revenue 14.4 14.4

Escrowed/Pre-Refunded 14.3 10.0

Health Care 14.0 17.8

Water & Sewer 11.3 10.5

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 14.2 15.3

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1996
6 MONTHS AGO

Years 7.8 7.9

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995
Aaa 59.7%
Aa, A 18.2%
Baa 15.2%
Ba, B 0.0%
Non-rated 3.5%
Short-term
investments 3.4%
Aaa 55.6%
Aa, A 17.1%
Baa 18.9%
Ba, B 0.0%
Non-rated 3.6%
Short-term
investments 4.8%
Row: 1, Col: 1, Value: 59.7
Row: 1, Col: 2, Value: 18.2
Row: 1, Col: 3, Value: 15.2
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 3.5
Row: 1, Col: 6, Value: 3.4
Row: 1, Col: 1, Value: 55.6
Row: 1, Col: 2, Value: 17.1
Row: 1, Col: 3, Value: 18.9
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 3.6
Row: 1, Col: 6, Value: 4.8
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.

SPARTAN FLORIDA MUNICIPAL INCOME FUND

INVESTMENTS MAY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 96.6%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - 91.5%
Alachua County Health Facs. Auth. Health
Facs. Rev. (Santa Fe Health Care Facs. Proj.):
Rfdg. 6% 11/15/09 Baa1 $ 2,950,000 $ 3,027,438
Rfdg. 6.05% 11/15/09 Baa1 5,590,000 5,645,900
7.60% 11/15/13 Baa1 1,000,000 1,136,250
Bay County Ind. Dev. Correctional Facs. Rev.
(Corrections Corp. America Proj.)
Series A, 8.875% 11/1/05 (b) - 2,385,000 2,469,191
Brevard County Sales Tax Rev. Rfdg. & Impt.
5.25% 12/1/13 (FGIC Insured) Aaa 1,100,000 1,025,750
Brevard County School Board 5.1% 7/1/07
(AMBAC Insured) Aaa 2,500,000 2,418,750
Brevard County Util. Rev. Rfdg. 5.25% 3/1/14
(AMBAC Insured) Aaa 2,500,000 2,328,125
Broward County Hsg. & Fin. Auth.
Single-Family Mtg. Rev. 6.65% 8/1/21 Aaa 2,000,000 2,052,500
Broward County Resource Recovery Rev.
(SES Broward Co. LP South Proj.)
7.95% 12/1/08 A 10,725,000 11,770,688
Broward County Spl. Oblig.:
5.50% 1/1/02 (AMBAC Insured) Aaa 1,865,000 1,916,288
5.50% 1/1/04 (AMBAC Insured) Aaa 2,320,000 2,375,100
5.50% 1/1/05 (AMBAC Insured) Aaa 2,585,000 2,636,700
5% 1/1/10 (AMBAC Insured) Aaa 1,500,000 1,395,000
Broward County Wtr. & Swr. Util. Rev. Rfdg.
5.125% 10/1/15 (AMBAC Insured) Aaa 2,500,000 2,262,500
Cocoa Wtr. & Swr. Rev. Impt. Series B,
5.125% 10/1/13 (AMBAC Insured) Aaa 1,245,000 1,140,731
Dade County Rev. 6.25% 10/1/06
(MBIA Insured) Aaa 1,575,000 1,702,969
Dade County Aviation Rev. Rfdg.:
Series E, 6% 10/1/09 (AMBAC Insured) Aaa 3,000,000 3,142,500
Series Y, 5.30% 10/1/05 Aa 3,460,000 3,485,950
5.75% 10/1/26 (MBIA Insured) Aaa 2,000,000 1,900,000
Dade County Ed. Facs. Auth. Rev. 5.125% 4/1/09
(MBIA Insured) Aaa 1,475,000 1,404,938
Dade County Gtd. Entitlement Rev. Rfdg.:
0% 8/1/18 (AMBAC Insured) Aaa 14,835,000 3,597,488
Series B, 0% 2/1/02 (MBIA Insured) Aaa 1,810,000 1,362,025
Dade County Pub. Facs. Rev. Rfdg.
(Jackson Mem. Hosp.) Series A,
4.75% 6/1/10 (MBIA Insured) Aaa 3,540,000 3,186,000
Dade County Seaport Rev.:
Rfdg. 6.25% 10/1/05 (MBIA Insured) Aaa 2,995,000 3,242,088
Rfdg. 6.50% 10/1/07 (MBIA Insured) Aaa 1,500,000 1,650,000
6.20% 10/1/09 (MBIA Insured) Aaa 1,845,000 1,948,781
6.20% 10/1/10 (MBIA Insured) Aaa 1,325,000 1,389,594
5.75% 10/1/15 (MBIA Insured) Aaa 5,100,000 4,978,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Dade County Wtr. & Swr. Sys. Rev.:
6.25% 10/1/06 (FGIC Insured) Aaa $ 1,500,000 $ 1,618,125
6.25% 10/1/08 (FGIC Insured) Aaa 1,100,000 1,182,500
5.50% 10/1/18 (FGIC Insured) Aaa 1,000,000 948,750
5.50% 10/1/25 (FGIC Insured) Aaa 1,000,000 932,500
Dunedin Hosp. Rev. (Mease Health Care)
5.25% 11/15/06 (MBIA Insured) Aaa 1,400,000 1,394,750
Dunedin Util Sys. Rev. Rfdg. 6.25% 10/1/11
(FGIC Insured) Aaa 1,360,000 1,443,300
Duval County Hsg. Fin. Auth. Single
Family Mtg. Rev.:
Series C, 7.70% 9/1/24 (FGIC Insured)
(GNMA Coll.) Aaa 725,000 767,594
5.80% 12/1/19 (b) Aaa 1,000,000 960,000
Escambia County Health Facs. Auth. Rev.
(Baptist Hosp. & Baptist Manor):
Rfdg. Series B, 6% 10/1/01 BBB+ 2,825,000 2,616,656
6.75% 10/1/14 BBB+ 3,250,000 3,278,438
Escambia County Poll. Cont. Rev.:
Rfdg. (Gulf Pwr. Co. Proj.) 6.75%
3/1/22 A1 2,000,000 2,037,500
(Champion Int'l. Corp. Proj.)
6.90% 8/1/22 (b) Baa1 5,000,000 5,212,500
Escambia County Util. Sys. Rev. Series B,
6.25%, 1/1/15 (FGIC Insured) Aaa 1,500,000 1,576,875
Florida Hsg. Fin. Agcy. Single-Family Mtg.
Rfdg.:
Series A:
6.35% 7/1/14 Aa1 1,390,000 1,423,013
6.55% 7/1/14 Aaa 1,430,000 1,485,413
Series B, 6.55% 7/1/17 (b) Aaa 1,395,000 1,436,850
Florida Hsg. Fin. Agcy. Multi-Family Mtg.
Rfdg. (Park Colony Proj.) Series D,
5.10% 4/1/03 A+ 2,500,000 2,500,000
Florida Gen. Oblig. (Jacksonville Trans.)
6.40% 7/1/22 Aa 1,100,000 1,160,500
Florida Board Ed. Admin. Cap. Outlay Rfdg.:
(Pub. Ed.):
Series A:
5% 6/1/09 Aa 1,000,000 950,000
5% 6/1/24 Aa 5,000,000 4,300,000
Series C, 5.40% 6/1/06 Aa 2,500,000 2,521,875
Ultd. Tax Series D, 5% 6/1/15 Aa 1,250,000 1,117,188
5.75% 1/1/13 Aa 1,000,000 985,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Div. Board Fin. Dept. Gen. Svcs. Rev.:
(Dept. of Natural Resources Preservation)
Series 2000 A:
6.75% 7/1/08 (AMBAC Insured) Aaa $ 1,350,000 $ 1,476,563
5.70% 7/1/09 (AMBAC Insured) Aaa 3,000,000 3,030,000
Florida Mid-Bay Bridge Auth. Rev. Series A:
Series A, 7.50% 10/1/17 - 1,700,000 1,853,000
6.875% 10/1/22 - 3,000,000 3,341,250
Florida Muni. Pwr. Agcy. Rev. (Stanton II Proj.)
6.50% 10/1/20 (AMBAC Insured) Aaa 1,000,000 1,106,250
Florida Tpk. Auth. Tpk. Rev.:
Series A:
5.50% 7/1/05 (AMBAC Insured) Aaa 3,250,000 3,323,125
5.50% 7/1/06 (AMBAC Insured) Aaa 3,000,000 3,045,000
6.25% 7/1/09 (FGIC Insured) Aaa 2,325,000 2,438,344
7.20% 7/1/11 (AMBAC Insured) Aaa 1,500,000 1,691,250
6.35% 7/1/22 (FGIC Insured)
(Pre-Refunded to 7/1/02 @ 101) (e) Aaa 4,255,000 4,632,631
Rfdg. Series A:
5.25% 7/1/11 (FGIC Insured) Aaa 4,750,000 4,512,500
5% 7/1/19 (FGIC Insured) Aaa 2,000,000 1,757,500
Gainesville Util. Sys. Rev. 5.75%
10/1/04 Aa 1,000,000 1,041,250
Greater Orlando Aviation Auth. Aprt. Facs.
Rev. Series A, 6.50% 10/1/05
(FGIC Insured) (b) Aaa 3,550,000 3,834,000
Hillsborough County Aviation Auth. Rev. Rfdg.
(Tampa Int'l. Aprt.) Series A,
6.90% 10/1/11 (FGIC Insured) Aaa 4,250,000 4,547,500
Hillsborough County Rfdg. Environmentally
Sensitive LDS Acquisition & Protection
6% 7/1/02 (AMBAC Insured) Aaa 2,080,000 2,197,000
Hillsborough County Port. Auth. Dist. Rev.:
6.50% 6/1/03 Aaa 2,000,000 2,150,000
6.50% 6/1/05 Aaa 2,000,000 2,155,000
Hillsborough County Util. Rev. Rfdg.
(Cap. Appreciation) Series A:
0% 8/1/05 Aaa 8,000,000 4,910,000
0% 8/1/06 Aaa 10,000,000 5,762,500
0% 8/1/07 Aaa 7,000,000 3,806,250
Indian River County Wtr. & Swr. Rev.:
Series A, 5.50% 9/1/11
(FGIC Insured) Aaa 2,000,000 1,950,000
5.50% 9/1/16 (FGIC Insured) Aaa 1,500,000 1,432,500
Jacksonville Cap. Inpt. Rev. Ctfs.
(Gator Bowl Proj.):
5.50% 10/1/14 (AMBAC Insured) Aaa 2,000,000 1,922,500
5.50% 10/1/19 (AMBAC Insured) Aaa 2,000,000 1,890,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Jacksonville Elec. Auth. Rev.:
Rfdg. (Bulk Pwr.-Scherer 4 Proj. A)
5.20% 10/1/11 Aa1 $ 3,000,000 $ 2,827,500
(St. Johns River Issue #2) Series 5,
7% 10/1/09 Aa1 2,490,000 2,695,425
(Bulk Pwr. Supply-Scherer) 6.75% 10/1/21
(Pre-Refunded to 10/1/01 @ 101.5) (e) Aaa 1,000,000 1,096,250
Jacksonville Excise Tax Rev.:
Rfdg. 6.25% 10/1/05 (AMBAC Insured) Aaa 2,000,000 2,145,000
Series A, 6.50% 10/1/11 (AMBAC Insured) Aaa 1,200,000 1,296,000
5% 10/1/09 (FGIC Insured) Aaa 1,335,000 1,266,581
Jacksonville Health Facs. Auth. Hosp. Rev.
(Baptist Med. Ctr.) Series A, 7.30% 6/1/19
(MBIA Insured) Aaa 500,000 536,875
Jacksonville Health Facs. Auth. Ind. Dev. Rev.:
(Cypress Village Proj.) (Nat'l. Benevolent Assoc.):
Rfdg. 7% 12/1/22 Baa1 2,000,000 2,002,500
7% 12/1/14 Baa1 1,000,000 1,008,750
6.25% 12/1/23 Baa1 2,710,000 2,418,675
8% 12/1/24 Baa1 2,740,000 2,948,925
Jacksonville Ind. Dev. Rev. Rfdg. (Cargill, Inc. Proj.)
6.40% 3/1/11 AA- 1,250,000 1,295,313
Jacksonville Sales Tax Rev.
(River City Rennaissance Proj.):
6% 10/1/02 (FGIC Insured) Aaa 1,500,000 1,591,875
6% 10/1/04 (FGIC Insured) Aaa 3,430,000 3,648,663
5.65% 10/1/14 (FGIC Insured) Aaa 1,900,000 1,852,500
Jacksonville Wtr. & Swr. Dist. Rev. 6% 10/1/06
(MBIA Insured) Aaa 2,075,000 2,196,906
Jacksonville Wtr. & Swr. Gen. Waterwks Dev. Rev.
(Jacksonville Suburban Utils.)
6.75% 6/1/22 (b) A3 1,915,000 2,029,900
Key West Util. Board Elec. Rev. Rfdg. 0% 10/1/14
(AMBAC Insured) Aaa 6,755,000 2,271,369
Lakeland Elec. & Wtr. Rev.:
Rfdg. (Jr. Sub. Lien):
6.25% 10/1/02 (FGIC Insured) (d) Aaa 5,180,000 5,542,600
6.50% 10/1/06 (FGIC Insured) (d) Aaa 1,000,000 1,091,250
6.50% 10/1/07 (FGIC Insured) (d) Aaa 4,095,000 4,458,431
0% 10/1/09 (FGIC Insured) Aaa 2,840,000 1,331,250
Leesburg Hosp. Rev.:
Rfdg. (Leesburg Reg'l. Med. Ctr. Proj.) Series B:
5.625% 7/1/13 A 2,795,000 2,585,375
5.70% 7/1/18 A 3,140,000 2,865,250
5.60% 7/1/08 A 5,000,000 4,900,000
Leon County 5.50% 10/1/07 (MBIA Insured) Aaa 1,000,000 1,008,750
Martin County Ind. Dev. Auth. Rev.
(Indiantown Cogeneration Proj.)
Series A, 7.875% 1215/25 Baa3 7,000,000 7,770,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Melbourne Arpt. Rev. Rfdg. (d):
5.75% 10/1/97 (MBIA Insured) Aaa $ 190,000 $ 194,038
5.75% 10/1/98 (MBIA Insured) Aaa 205,000 210,894
5.75% 10/1/99 (MBIA Insured) Aaa 215,000 222,794
6.25% 10/1/00 (MBIA Insured) Aaa 230,000 243,513
6.25% 10/1/01 (MBIA Insured) Aaa 240,000 255,300
6.25% 10/1/02 (MBIA Insured) Aaa 260,000 278,200
6.25% 10/1/03 (MBIA Insured) Aaa 270,000 289,575
6.50% 10/1/04 (MBIA Insured) Aaa 290,000 316,463
6.50% 10/1/05 (MBIA Insured) Aaa 310,000 338,288
6.50% 10/1/06 (MBIA Insured) Aaa 325,000 354,656
6.75% 10/1/07 (MBIA Insured) Aaa 350,000 388,500
6.75% 10/1/08 (MBIA Insured) Aaa 375,000 415,313
6.75% 10/1/09 (MBIA Insured) Aaa 400,000 441,500
6.75% 10/1/10 (MBIA Insured) Aaa 425,000 466,969
Naples Hosp. Rev. Rfdg. (Community Hosp. Proj.):
5% 10/1/19 (MBIA Insured) Aaa 1,000,000 868,750
5.10% 10/1/07 (MBIA Insured) Aaa 1,500,000 1,455,000
North Broward Hosp. Dist. Rev. Rfdg.
6.40% 1/1/06 (MBIA Insured) Aaa 950,000 1,015,313
North Miami Edl. Facs. Rev. (Johnson & Wales
Univ. Proj.) Series A, 6.125% 4/1/20 - 6,605,000 6,373,825
Orange County Health Facs. Auth. Hosp. Rev.
(Adventist Health Sys.) 5.75% 11/15/05
(AMBAC Insured) Aaa 2,000,000 2,080,000
Orange County Hsg. Fin. Auth. Mtg. Rev.
Series A, 7.875% 9/1/10, (GNMA Coll.) (b) Aaa 45,000 46,406
Orange County Hsg. Fin. Auth. Single-Family
Mtg. Rev. (Mtg. Backed Secs. Proj.)
6.40% 10/1/14 Aaa 2,000,000 2,047,500
Orange County Sales Tax Rev.
Series B 5.375% 1/1/24 A1 1,000,000 891,250
Orange County Tourist Dev. Tax Rev. Rfdg. Series A:
5.75% 10/1/07 (MBIA Insured) Aaa 3,620,000 3,742,175
5.85% 10/1/08 (MBIA Insured) Aaa 1,795,000 1,860,069
5.90% 10/1/09 (MBIA Insured) Aaa 1,250,000 1,290,625
5.90% 10/1/10 (MBIA Insured) Aaa 1,000,000 1,030,000
Orlando Util. Commission Wtr. & Elec. Rev.:
Rfdg. 6% 10/1/10 Aa1 1,405,000 1,454,175
Rfdg. Sub-Series D, 6.75% 10/1/17 Aa 7,000,000 7,883,750
Sub-Series A, 6.50% 10/1/20 Aaa 6,055,000 6,660,500
Orlando Wtr. & Elec. Rev. 5.538% 10/31/13 Aa 9,400,000 8,988,750
Orlando & Orange County Expwy. Auth.
Expwy. Rev.:
7.25% 7/1/14 (Pre-Refunded to
7/1/96 @ 102) (e) Aaa 13,250,000 13,549,980
7.50% 7/1/16 (Pre-Refunded to
7/1/96 @ 102) (e) Aaa 2,155,000 2,204,091
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Orlando & Orange County Expwy. Auth. Rev.
Rfdg. Sr. Lien 5.25% 7/1/14
(AMBAC Insured) Aaa $ 4,000,000 $ 3,725,000
Osceola County School Board Ctfs. of
Partnership Series A, 5.25% 6/1/15
(AMBAC Insured) Aaa 3,750,000 3,445,313
Pinellas Park Pub. Impt. Rev. Rfdg. Series A,
5% 10/1/13 (FGIC Insured) Aaa 1,000,000 902,500
Plantation Health Facs. Auth. Rev. (Covenant
Retirement Communities Inc.) 7.75% 12/1/22 BBB+ 2,500,000 2,675,000
Polk County Ind. Dev. Auth. Ind. Dev. Rev.
(Winter Haven Hosp.) Series 2, 6.25% 9/1/15
(MBIA Insured) Aaa 1,500,000 1,546,875
Reedy Creek Util. Rev. 6.50% 10/1/16
(MBIA Inusred)
(Pre-Refunded to 10/1/01 @ 101) (e) Aaa 1,350,000 1,473,188
St. Lucie County Solid Waste Disp. Rev.
(Florida Pwr. & Lt. Co. Proj.)
6.70% 5/1/27 (b) A1 1,050,000 1,085,438
Sarasota Wtr. & Swr. Util. Rev. Rfdg. (d):
5.25% 10/1/00 (FGIC Insured) Aaa 1,150,000 1,173,000
6.25% 10/1/04 (FGIC Insured) Aaa 1,450,000 1,556,938
6.25% 10/1/07 (FGIC Insured) Aaa 1,735,000 1,852,113
Seminole County Wtr. & Swr. Rev. Rfdg. & Impt.:
6% 10/1/09 (MBIA Insured) Aaa 1,500,000 1,571,250
6% 10/1/12 (MBIA Insured) Aaa 1,500,000 1,548,750
South Miami Health Facs. Auth. Hosp. Rev.
Rfdg. (Baptist Health Sys.) 5.50% 10/1/05
(MBIA Insured) Aaa 1,980,000 2,014,650
Sumter County School Dist. Rev.
(Multi-Dist. Loan Prog.) 7.15% 11/1/15
(CGIC Insured) Aaa 1,000,000 1,160,000
Sunshine St. Governmental Fing. Commn. Rev.
Series B, 5.50% 10/1/05 (FGIC Insured) Aaa 1,000,000 1,021,250
Tampa Rev. (Allegheny Health Sys.-St. Joseph):
6.70% 12/1/07 (MBIA Insured) Aaa 2,685,000 2,744,138
6.75% 12/1/17 (MBIA Insured) Aaa 150,000 160,875
Tampa Wtr. & Swr. Rev.:
Rfdg. Series B, 5% 10/1/14 (FGIC Insured) Aaa 1,000,000 900,000
5.125% 10/1/17 (FGIC Insured) Aaa 6,890,000 6,157,938
Tarpon Springs Health Facs. Auth. Hosp. Rev.
(Helen Ellis Mem. Hosp. Proj.):
7.50% 5/1/11 BBB- 1,225,000 1,260,219
7.625% 5/1/21 BBB- 4,245,000 4,361,723
Volusia County Edl. Facs. Auth. (Embry Riddle
Aeronaut Univ.) 6.125% 10/15/16 Baa 2,000,000 1,952,500
367,076,092
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
PUERTO RICO - 4.2%
Puerto Rico Commonwealth Aqueduct & Swr.
Auth. Rev. Series A, 7.875% 7/1/17
(Pre-Refunded to 7/1/98 @ 102) (e) Baa1 $ 2,500,000 $ 2,728,125
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev.:
Series T, 6.625% 7/1/18
(Pre-Refunded to 7/1/02 @ 101.5) (e) Baa1 4,000,000 4,405,000
5.50% 7/1/36 Baa1 2,300,000 2,084,375
Puerto Rico Commonwealth Infrastructuring Fing.
Auth. Spl. Series A, 7.50% 7/1/09 Baa1 1,000,000 1,061,250
Puerto Rico Elec. Pwr. Auth. Rev.:
Rfdg. Series W, 6.50% 7/1/05
(MBIA Insured) Aaa 3,000,000 3,285,000
6.50% 7/1/06 (MBIA Insured) Aaa 2,000,000 2,190,000
Puerto Rico Pub. Bldgs. Auth. Gtd. Pub.
Ed. & Health Facs. Series L, 6.875% 7/1/21 Aaa 1,000,000 1,118,750
16,872,500
GUAM - 0.9%
Guam Pwr. Auth. Rev.:
Series A:
5.25% 10/1/13 BBB 1,250,000 1,092,188
6.30% 10/1/22 BBB 1,900,000 1,835,875
5.10% 10/1/03 BBB 500,000 480,000
3,408,063
TOTAL MUNICIPAL BONDS
(Cost $383,077,108) 387,356,655
MUNICIPAL NOTES (A) - 3.4%
FLORIDA - 2.6%
Dade County Ind. Dev. Auth. Rev. (Pwr. & Lt. Proj.)
Series 1993, 3.85%, VRDN VMIG 1 1,200,000 1,200,000
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Childrens Hosp. Proj.) Series 1990,
3.8% LOC Barnett Bank, VRDN VMIG 1 400,000 400,000
Florida Muni. Pwr. Agcy. Participating
VRDN, 3.10% (f) 3,300,000 3,300,000
Hillsborough County Ind. Dev. Auth. Rev. Rfdg.
(Tampa Electric Co. Gann Coal Proj.)
Series 1992, 3.6%, VRDN VMIG 1 1,000,000 1,000,000
Miami Gen. Oblig. TAN 4.50% 9/27/96 MIG 1 2,000,000 2,005,580
Orange County Health Facs.
(Adventist Health Sys. Sunbelt) 3.55%,
LOC Rabobank Nederland, VRDN A-1+ 1,300,000 1,300,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Pinellas County Health Facs. Auth.
(Pooled Hosp. Loan Program) 3.80%,
LOC Chemical Bank, VRDN VMIG 1 $ 4,500,000 $ 4,500,000
TOTAL MUNICIPAL NOTES
(Cost $13,704,202) 13,705,580
TOTAL INVESTMENTS - 100%
(Cost $396,781,310) $ 401,062,235

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax.
(c) Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
(d) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(e) Security collateralized by an amount sufficient to pay interest and
principal.
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At May 31, 1996, the aggregate cost of investment securities for income tax
purposes was $396,788,968. Net unrealized appreciation aggregated
$4,273,267, of which $8,512,212 related to appreciated investment
securities and $4,238,945 related to depreciated investment securities.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 76.4% AAA, AA, A 81.9%
Baa 10.8% BBB 7.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 3.5%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Transportation 14.8%
Electric Revenue 14.4
Escrowed/Pre-Refunded 14.3
Health Care 14.0
Water & Sewer 11.3
Special Tax 10.1
General Obligation 6.3
Others
(individually less than 5%) 14.8
TOTAL 100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $396,781,310) - $ 401,062,235
See accompanying schedule

Interest receivable 6,178,008

TOTAL ASSETS 407,240,243

LIABILITIES

Payable to custodian bank $ 154,907

Payable for investments purchased 1,464,756
Regular delivery

Delayed delivery 19,501,104

Distributions payable 605,411

Accrued management fee 179,939

TOTAL LIABILITIES 21,906,117

NET ASSETS $ 385,334,126

Net Assets consist of:

Paid in capital $ 384,765,137

Accumulated undistributed net realized gain (loss) (3,711,936)
on investments

Net unrealized appreciation (depreciation) 4,280,925
on investments

NET ASSETS, for 35,649,634 shares outstanding $ 385,334,126

NET ASSET VALUE, offering price and redemption price per $10.81
share ($385,334,126 (divided by) 35,649,634 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 10,815,326

EXPENSES

Management fee $ 1,086,596

Non-interested trustees' compensation 446

Total expenses before reductions 1,087,042

Expense reductions (41,994) 1,045,048

NET INTEREST INCOME 9,770,278

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 1,321,084

Futures contracts (594,253) 726,831

Change in net unrealized appreciation (depreciation) on:

Investment securities (13,799,434)

Futures contracts (32,586) (13,832,020)

NET GAIN (LOSS) (13,105,189)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (3,334,911)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED NOVEMBER
MAY 31,1996 30,1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 9,770,278 $ 19,727,290
Net interest income

Net realized gain (loss) 726,831 (2,142,817)

Change in net unrealized appreciation (depreciation) (13,832,020) 51,419,084

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (3,334,911) 69,003,557
FROM OPERATIONS

Distributions to shareholders (9,770,278) (19,727,290)
From net interest income

From net realized gain (177,944) -

TOTAL DISTRIBUTIONS (9,948,222) (19,727,290)

Share transactions 32,092,984 78,744,845
Net proceeds from sales of shares

Reinvestment of distributions 6,300,872 12,331,494

Cost of shares redeemed (35,786,898) (79,953,207)

Redemption fees 19,690 40,228

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,626,648 11,163,360
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (10,656,485) 60,439,627

NET ASSETS

Beginning of period 395,990,611 335,550,984

End of period $ 385,334,126 $ 395,990,611

OTHER INFORMATION
Shares

Sold 2,893,026 7,475,522

Issued in reinvestment of distributions 570,835 1,152,868

Redeemed (3,238,204) (7,660,480)

Net increase (decrease) 225,657 967,910

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30, MARCH 16, 1992
ENDED (COMMENCEMENT
MAY 31, 1996 OF OPERATIONS) TO
NOVEMBER 30,

(UNAUDITED) 1995 1994E 1993 1992

SELECTED PER-SHARE DATA

Net asset value, beginning of
period $ 11.180 $ 9.740 $ 11.290 $ 10.520 $ 10.000

Income from Investment Operations
Net interest income .273 .573 .587 .615 .459

Net realized and unrealized
gain (loss) (.361) 1.439 (1.352) .777 .514

Total from investment
operations (.088) 2.012 (.765) 1.392 .973

Less Distributions (.273) (.573) (.587) (.615) (.459)
From net interest income

From net realized gain (.010) - (.200) (.010) -

Total distributions (.283) (.573) (.787) (.625) (.459)

Redemption fees added to paid in
capital .001 .001 .002 .003 .006

Net asset value, end of period $ 10.810 $ 11.180 $ 9.740 $ 11.290 $ 10.520

TOTAL RETURN B 4.14% 21.09 (7.19)% 13.52% 9.94%
%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000
omitted) $ 385,334 $ 395,991 $ 335,551 $ 428,367 $ 237,109

Ratio of expenses to average net
assets .55%A .55 .54% .25% .03%A
% D D ,D

Ratio of expenses to average net
assets after expense reductions .53%A .55 .54% .25% .03%A
,C %

Ratio of net interest income to
average net assets 4.94%A 5.37 5.49% 5.52% 6.25%A
%

Portfolio turnover rate 23%A 65 49% 50% 38%A
%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S OPERATING EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
E EFFECTIVE DECEMBER 1, 1993 THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION ON INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."

AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TAX DIFFERENCES.

FINANCIAL HIGHLIGHTS

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee on an average size account.
Yield measures the income paid by a fund. Since a money market fund tries
to maintain a $1 share price, yield is an important measure of performance.
If Fidelity had not reimbursed the fund for certain expenses, the life of
fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Florida Municipal 1.59% 3.33% 11.38%
Money Market Fund

All Tax-Free Money Market Funds Average 1.54% 3.20% 10.09%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund started on
August 24,1992. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050. To
measure how the fund's performance stacked up against its peers, you can
compare it to the all tax-free money market funds average, which reflects
the performance of 398 average all tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. over the past six months.
(The periods covered by the IBC Financial Data, Inc. numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 LIFE OF
YEAR FUND

Spartan Florida Municipal 3.33% 2.90%
Money Market Fund

All Tax-Free Money Market Funds Average 3.20% 2.59%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
5/29/95 8/28/95 11/27/95 2/26/96 5/27/96

Spartan Florida Municipal 3.78% 3.38% 3.39% 2.96% 3.27%
Money Market Fund

All Tax-Free Money Market 3.61% 3.21% 3.30% 2.87% 3.12%
Funds Average

Spartan Florida Municipal 5.91% 5.28% 5.30% 4.63% 5.11%
Money Market Fund -
Tax-equivalent

YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the all tax-free money market funds average as
tracked by IBC Financial Data, Inc. Or you can look at the fund's
tax-equivalent yield, which is based on an effective 1996 federal tax rate
of 36%. A portion of the fund's income may be subject to the alternative
minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jan Bradburn, Portfolio Manager of Spartan Florida
Municipal Money Market Portfolio
Q. JAN, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PAST SIX MONTHS?
A. In Florida, technical factors associated with the Florida Intangible
Personal Property tax tended to have a disproportionate impact on my
investment decisions. However, those technical factors arose against a
backdrop colored by national fiscal and monetary trends. When the period
began, the Federal Reserve was in an easing mode, having lowered the
federal funds rate - the rate banks charge each other for overnight loans -
the previous July, followed by additional one-quarter percentage point cuts
in December, 1995 and January of this year. Heading into mid-winter, the
consensus among market participants was that we had not yet seen the last
of the rate cuts. The sentiment began to change when, testifying before
Congress in mid-February, Fed Chairman Alan Greenspan seemed to suggest
that the economy was doing better than expected. Then came the infamous
February employment report, which was significantly stronger than most
analysts had predicted. Since then, a string of positive indicators has
left little doubt in most analysts' minds that, for the time being, the
economy is in no need of further stimulus.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. On December 1, 1995, when the period began, the fund had an average
maturity of 52 days. By the end of the month, as investors sought shelter
from the Florida Intangible Personal Property tax, the fund's asset base
more than doubled. Most of the new money went into variable rate demand
notes and other short-term instruments, which lowered the fund's average
maturity to 30 days. By January 31, 1996, assets had declined sharply and
the fund's average maturity was back up around 45 days. Since then, I've
let the fund's average maturity gradually roll back down, for two reasons:
to preserve flexibility in the face of rising rates and to prepare for a
supply windfall in June, when many school districts seek financing.
Q. HOW DID THE FUND PERFORM?
A. Better than most other tax-free money market funds over the period. The
fund's seven-day yield on May 31, 1996 was 3.22%, compared to 3.36% on
November 30, 1995. The latest yield was the equivalent of a taxable yield
of 5.03% for investors in the 36% federal tax bracket. Through May 31,
1996, the fund's six-month total return was 1.59%, compared to a total
return of 1.54% for the all tax-free money market funds average, according
to IBC Financial Data, Inc. During the 12-month period, the fund's total
return was 3.33%, compared to 3.20% for the all tax-free money market funds
average.
Q. WHAT'S THE OUTLOOK?
A. Recently released economic indicators have produced some contradictory
signals, making it unclear just how strong the economy really is. In the
absence of compelling evidence one way or the other, I think it's likely
the Fed will stand pat for a while. Certainly most experts don't expect the
Fed to lower rates again anytime soon. On the other hand, if we continue to
see evidence of strong economic performance in key indicators such as
employment, housing and consumer spending, I feel it's possible that the
Fed will choose to raise rates. Given the lack of a solid direction, I'll
probably aim to keep the fund's average maturity between 45 and 55 days -
possibly longer, depending on the supply of new issues. I believe that
gives me maximum flexibility to adapt to changing conditions.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income and exemption from
the Florida intangible tax, while
maintaining a stable $1.00
share price by investing mainly
in high-quality, short-term
municipal money market
securities
START DATE: August 24, 1992
SIZE: as of May 31, 1996,
more than $361 million
MANAGER: Jan Bradburn,
since 1995; also manager,
Fidelity Ohio Municipal Money
Market Fund, since 1993;
Fidelity Massachusetts
Municipal Money Market Fund
and Spartan Massachusetts
Municipal Money Market
Fund, since 1992; Spartan
New York Municipal Money
Market Fund, since 1990;
Fidelity New York Municipal
Money Market Fund, since
1989; joined Fidelity in 1989
(checkmark)

WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
usually long-term security that
gives the bond holder the
option to redeem the bond at
face value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/96 11/30/95 5/31/95

0 - 30 75 71 78

31 - 90 10 12 12

91 - 180 13 4 9

181 - 397 2 13 1

WEIGHTED AVERAGE MATURITY
5/31/96 11/30/95 5/31/95

Spartan Florida Municipal
Money Market Fund 36 days 52 days 29 days

All Tax-Free Money Market
Funds Average* 42 days 49 days 38 days

ASSET ALLOCATION
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995

Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 11.0
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 7.0
Row: 1, Col: 1, Value: 60.0
Row: 1, Col: 2, Value: 18.0
Row: 1, Col: 3, Value: 6.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 56%
Commercial
paper 11%
Tender bonds 9%
Municipal
notes 17%
Other 7%
Variable rate
demand notes
(VRDNs) 60%
Commercial
paper 18%
Tender bonds 6%
Municipal
notes 13%
Other 3%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

INVESTMENTS MAY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ARIZONA- 0.7%
Coconino Poll. Cont. Rev.
(Arizona Pub. Svc. Co. Navajo Proj.)
Series 1994 A, 4.10%, LOC Bank of America, VRDN (b) $ 1,200,000 $
1,200,000
Mojave County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
(Citizens Utilities) Series 1993 E,
3.80%, tender 8/12/96 (b) 1,300,000 1,300,000
2,500,000
FLORIDA - 94.4%
Alachua County Health Facs. Rev. Bonds
(Academic Research Bldg. Proj.) Series1989,
3.70%, tender 6/26/96, LOC Barnett Bank 6,250,000 6,250,000
Arcadia Hosp. Rev. (Desoto Memorial Hosp.) Series 1994,
3.70%, LOC First Union Bank of Florida, VRDN 5,000,000 5,000,000
Bay County Resource Recovery Rev. Bond 8% 10/14/96 2,620,000 2,739,765
Broward County Hsg. Fin. Auth. Multi-Family Hsg. Rev., VRDN:
(Lake Park Assoc. Ltd. Partnership) Series 1985, 3.65%,
LOC Society Bank 9,815,000 9,815,000
(Landings Inverrary) 3.80%, LOC PNC Bank 3,900,000 3,900,000
(Palm Aire-Oxford Proj.) Series 1990, 3.80%
(Continental Casualty Guaranteed) 1,800,000 1,800,000
(Town of Jacaranda Proj.) 3.70%,
LOC Southtrust Bank 7,400,000 7,400,000
Broward County Ind. Dev. Auth. Rev. Rfdg.
(Goldline Lab., Inc. Proj.) Series 1989 B, 3.65%,
LOC Barnett Bank, VRDN (b) 564,000 564,000
Clay County Hsg. Fin. Auth. Participating VRDN,
Series PT-61, 3.65%
(Liquidity Facility Bayerische Hypotheken (b) (c) (d) 4,950,000
4,950,000
Dade County Hsg. Fin. Auth. Participating VRDN,
Series 1995 B, 3.75%, (Liquidity Facility
Bank of America) (c) (d) 12,500,000 12,500,000
Dade County Ind. Dev. Auth. Ind. Dev. Rev. (Royal Store
Fixtures Corp. Proj.) 3.75%, LOC SunTrust Bank, VRDN (b) 2,500,000
2,500,000
Dade County Ind. Dev. Auth. Rev. (Guastafeste Proj.), VRDN (b):
Series 1987, 3.75%, LOC SunTrust Bank 1,010,000 1,010,000
Series 1991, 3.75%, LOC SunTrust Bank 625,000 625,000
Dade County Multi-Family Hsg. Rev. (Biscayne View
Apts. Proj.) Series 1993, 4% (Commonwealth Life
Insurance Co. Guaranteed) VRDN (b) 27,000,000 27,000,000
Escambia County Poll. Cont. Rev. Rfdg.
(Monsanto Co. Proj.) Series 1994, 3.65%, VRDN 1,775,000 1,775,000
Escambia County Solid Waste Disp. Rev.
(Monsanto Co. Proj.) Series 1993, 3.80%, VRDN (b) 5,300,000 5,300,000
Florida Dept. of Trans. Participating VRDN, 3.60%
(Liquidity Facility Societe Generale) (c) 17,310,000 17,310,000
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Hillsborough-Oxford Proj.) Series D, 3.80%
(Continental Casualty Guaranteed) 5,590,000 5,590,000
(Brandon-Oxford Proj.) Series 1990 C, 3.80% 2,200,000 2,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev., VRDN: - continued
(Oaks at Mill Creek Proj.) Series 1985, 3.60%,
LOC Chemical Bank $ 4,600,000 $ 4,600,000
Florida Hsg. Fin. Agcy. Rev., VRDN:
(Banyan Bay Apts. Proj.) 3.80%, LOC PNC Bank (b) 5,275,000 5,275,000
(Sun Pointe Cove Apts. Proj.) Series 1985 XX, 3.70%
(FNMA Guaranteed) 3,500,000 3,500,000
Florida Local Gov't. Fin. Auth. Series A,
3.50% 9/27/96, LOC First Union Nat'l. Bank, CP 2,500,000 2,500,000
Florida Muni. Pwr. Agcy. Participating VRDN
(Stanton II Proj.) Series PA 1018, 3.60%
(Liquidity Facility Merrill Lynch & Co.) (c) 2,520,000 2,520,000
Florida State Board of Ed.:
Participating VRDN, Series CR-164,
3.75% (Liquidity Facility Citibank) (c) 10,000,000 10,000,000
Bonds 7.75% 6/1/96 4,000,000 4,080,000
(Administrative Cap. Outlay) Series B:
6.80% 6/1/96 1,000,000 1,000,000
7.10% 6/1/96 1,000,000 1,020,000
Florida State Dept. Gen Svcs. Rev. Bonds (Environmental
Protection Agcy.) 4.50% 7/1/96, (FSA Insured) 1,160,000 1,160,552
Greater Orlando Aviation Auth. Airport Facs.
Series B, 3.60% 8/22/96
(Liquidity Facility Morgan Guaranty Trust Co.) CP (b) 2,000,000
2,000,000
Gulf Breeze Rev. Series 1995 A, 3.65%,
LOC Barnett Bank, VRDN 10,000,000 10,000,000
Hillsborough County Aviation Auth. 3.70% 8/7/96,
LOC Nat'l. Westminster Bank, CP (b) 7,500,000 7,500,000
Hillsborough County Ind. Dev. Rev. (Vigo Importing Proj.)
3.85%, LOC NationsBank, VRDN (b) 1,670,000 1,670,000
Immokalee Wtr. & Swr. Dist. Wtr. & Swr.
BAN 3.65% 8/30/96 1,000,000 1,000,000
Indian River County Hosp. Dist. Hosp. Rev. Bonds:
Series 1988, 3.20%, tender 6/11/96,
LOC Kredietbank 2,600,000 2,600,000
Series 1989, 3.60%, tender 8/13/96,
LOC Kredietbank 4,300,000 4,300,000
Series 1990, 3.20%, tender 6/11/96,
LOC Kredietbank 2,000,000 2,000,000
Jacksonville Elec. Auth. Participating VRDN, Series PA-100,
3.60% (Liquidity Facility Merrill Lynch & Co.) (c) 3,460,000 3,460,000
Jacksonville Elec. Auth. Rev. Bond
Series 3-A, 7.70% 10/1/96 3,500,000 3,597,903
Jacksonville Health Facs. Rev. (Faculty Practice Assoc.)
3.70%, LOC NationsBank, VRDN 2,000,000 2,000,000
Jacksonville Ind. Dev. Rev. (Samuel C. Taylor Foundation
1987 Proj.) 3.70%, LOC Barnett Bank, VRDN 4,900,000 4,900,000
Jacksonville River City Renaissance Prog.
3.50% 7/25/96 (Liquidity Facility Credit Suisse) CP 7,000,000 7,000,000
Lee County Ctfs. of Prtn. (Lee County Master Lease Proj.)
Series 1995, 3.60% 10/1/96 (MBIA Insured) 775,000 775,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Lee County Hsg. Fin. Auth. Single Family Mtg. Rev.
(Multi-County Proj.) Series 1996 A, 3.90%,
tender 9/16/96 (b) $ 10,000,000 $ 10,000,000
Lee County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
(Baader North America Proj.) Series1994, 3.65%,
LOC Deutsche Bank, VRDN (b) 2,200,000 2,200,000
Liberty County Ind. Dev. Rev. (Timber Energy
Resources Inc. Proj.) Series 1994, 3.70%,
LOC Bank of Montreal, VRDN 7,900,000 7,900,000
Manatee County Hsg. Fin. Auth. Single Family Mtg.
Rev. Bonds 3.90%, tender 10/15/96 (b) 3,000,000 3,000,000
Manatee County Hsg. Fin. Auth. (Harbor Pointe Proj.)
Series 1990 A, 4%, LOC Marine Midland Bank, VRDN 1,000,000 1,000,000
Miami TAN 4.50% 9/27/96 10,000,000 10,021,728
Monroe County School Dist. RAN 4% 12/13/96 2,000,000 2,000,000
Naples Hosp. Rev. Series 1992, 3.75%,
LOC Mellon Bank, VRDN 2,200,000 2,200,000
Ocean Hwy. & Port Auth. Rev. Series 1990 3.60%,
LOC ABN-AMRO Bank, VRDN (b) 8,100,000 8,100,000
Okeechobee County Solid Waste Rev. (Chambers Waste Sys.)
Series 1992, 3.85%, LOC NationsBank, VRDN (b) 9,900,000 9,900,000
Orange County Health Fac. Auth. Participating VRDN,
Series PA-95, 3.65% (Liquidity Facility
Merrill Lynch & Co.) (c) 3,985,000 3,985,000
Orange County Health Facs. Rev. (Adventist Health Sys.)
3.55%, LOC Rabobank, VRDN 2,250,000 2,250,000
Orange County Hsg. Fin. Auth. Rev.
(Smokewood/Sun Key Apt. Proj.) Series A, 3.60%,
LOC Citibank, VRDN 2,500,000 2,500,000
Orange County School Dist.:
RAN 4.50% 6/25/96 17,500,000 17,508,844
TAN 4.50% 10/16/96 15,000,000 15,045,011
Orlando & Orange County Expressway Rev. Bonds (Sr. Lein):
7% 7/1/96 1,900,000 1,942,664
7.25% 7/1/96 1,000,000 1,022,961
Orlando Util. Commission Wtr. & Elec.
Participating VRDN, Series SG-18, 3.60%
(Liquidity Facility Societe Generale) (c) 4,365,000 4,365,000
Palm Beach County Rev. (Norton Gallery & School of Art)
3.60%, LOC Northern Trust Company, VRDN 2,700,000 2,700,000
Pensacola Rev. Bonds (Harborview Corp. Proj.) 3.80%,
LOC Amsouth Bank, VRDN 2,920,000 2,920,000
Pinellas County Health Facs. Auth. Rev. (Pooled Hosp.
Loan Prog.) 3.80%, LOC Chemical Bank, VRDN 800,000 800,000
Pinellas County Wtr. Rev. Rfdg. Bonds 4.50% 10/1/96
(AMBAC Insured) 5,150,000 5,162,489
Plant City (South Baptist Hosp. Proj.) Series 1993, 3.80%,
LOC Barnett Bank, VRDN (b) 4,700,000 4,700,000
Seminole County School Dist. RAN 3.50% 2/19/97 6,500,000 6,512,177
Sunshine State Gov't. Fing. Commission
3.50% 6/12/96, CP 3,000,000 3,000,000
337,423,094
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ILLINOIS - 0.6 %
Chicago Illinois Single Family Mtg. Rev. Bonds Series 1996 B,
3.30%, tender 10/15/96 (MBIA Insured) (b) $ 800,000 $ 800,000
Kane, McHenry, Cook & Dekalb Counties Commty.
Unit School Dist. #300 TAN 4.25% 9/27/96 1,000,000 1,001,571
1,801,571
INDIANA - 0.3 %
Indiana Bond Bank TAN 4.25% 7/8/96 1,200,000 1,201,085
KENTUCKY - 0.3 %
Pulasky County Eastern Kentucky Pwr. Coop. Fin. Corp.
(Nat. Rural Util.) Series 1993 B, 3.20%,
tender 8/15/96 (b) 1,000,000 1,000,000
LOUISIANA - 0.2 %
Plaquemines Parish Environmental Rev. (BP Exploration &
Oil, Inc.) Series 1994, 4.10%, VRDN (b) 800,000 800,000
MICHIGAN - 0.3 %
Michigan Gen. Oblig. TAN 4% 9/30/96 1,000,000 1,002,600
MISSOURI - 0.2 %
Missouri Higher Ed. Loan Auth. Student Loan Rev.
Series 1988 A, 3.65%,
LOC Nat'l. Westminster Bank, VRDN (b) 700,000 700,000
NEW JERSEY - 0.1 %
Jackson Township BAN 3.65% 11/27/96 500,000 500,071
NEW YORK - 0.3 %
Nassau County BAN 4% 11/15/96 1,200,000 1,201,863
NORTH CAROLINA - 0.2 %
Craven County Ind. Facs. Resource Recovery Rev.
(Craven County Wood & Poll. Cont. Energy Ltd. Proj.)
Series 1989 B, 3.90%, LOC ABN-AMRO Bank, VRDN (b) 700,000 700,000
OHIO - 1.3 %
Montgomery County Gen. Oblig. BAN Series 1996 A,
4% 10/25/96 4,625,000 4,633,311
SOUTH CAROLINA - 0.4 %
South Carolina Jobs Econ. Dev. Auth. Rev.
(Wellman Inc. Proj.) Series 92, 3.95%,
LOC Wachovia Bank, VRDN (b) 500,000 500,000
South Carolina Svc. Auth. Elec. Rev.
(Elec. Sys. Expansion Proj.) 8% 7/1/96 1,000,000 1,033,562
1,533,562
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TENNESSEE - 0.3 %
Nashville & Davidson Counties Metropolitan Wtr. &
Swr. Rev. Bonds 7.20% 1/1/97 (AMBAC Insured) $ 1,100,000 $ 1,136,207
TEXAS - 0.4 %
Brazos River Harbor Navigation Dist. Rev.
(Dow Chemical Co. Proj.) Series 1996, 4.15%, VRDN (b) 400,000 400,000
Sabine River Ind. Dev. Auth. Rev. Poll. Cont. Bonds
3.10%, tender 8/15/96
(Nat'l Rural Util. Coop. Guaranteed) 1,000,000 1,000,000
1,400,000
TOTAL INVESTMENTS - 100% $ 357,533,364

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or, when applicable,
the final maturity date.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Clay County Hsg. Fin.
Auth. Participating VRDN,
Series PT-61 4/21/95 $ 4,950,000
Dade County Hsg. Fin.
Auth. Participating
VRDN,
Series 1995 B 6/5/95 $ 12,500,000
INCOME TAX INFORMATION
At November 30, 1995, the fund had a capital loss carryforward of
approximately $27,100 of which $100, $1,000, $22,000 and $4,000 will expire
on November 30, 2000, 2001, 2002 and 2003, respectively.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value - See accompanying $ 357,533,364
schedule

Cash 260,224

Interest receivable 3,462,841

TOTAL ASSETS 361,256,429

LIABILITIES

Payable to custodian bank $ 6,065

Distributions payable 47,550

Accrued management fee 153,925

TOTAL LIABILITIES 207,540

NET ASSETS $ 361,048,889

Net Assets consist of:

Paid in capital $ 361,082,621

Accumulated net realized gain (loss) on investments (33,732)

NET ASSETS, for 361,082,621 shares outstanding $ 361,048,889

NET ASSET VALUE, offering price and redemption price per $1.00
share ($361,048,889 (divided by) 361,082,621 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 7,917,572

EXPENSES

Management fee $ 1,081,540

Non-interested trustees' compensation 744

Total expenses before reductions 1,082,284

Expense reductions (35,685) 1,046,599

NET INTEREST INCOME 6,870,973

NET REALIZED GAIN (LOSS) ON INVESTMENTS (6,336)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,864,637

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995

INCREASE (DECREASE) IN NET ASSETS

Operations $ 6,870,973 $ 13,518,304
Net interest income

Net realized gain (loss) (6,336) (4,277)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 6,864,637 13,514,027
FROM OPERATIONS

Distributions to shareholders from net interest income (6,870,973) (13,518,304)

Share transactions at net asset value of $1.00 per share 553,467,530 629,995,039
Proceeds from sales of shares

Reinvestment of distributions from net interest income 6,457,236 12,616,815

Cost of shares redeemed (562,265,805) (616,740,964)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,341,039) 25,870,890
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (2,347,375) 25,866,613

NET ASSETS

Beginning of period 363,396,264 337,529,651

End of period $ 361,048,889 $ 363,396,264

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30, AUGUST 24, 199
ENDED 2
MAY 31, 1996 (COMMENCEME
NT
OF OPERATIONS) T
O
NOVEMBER 30,

(UNAUDITED) 1995 1994 1993 1992

SELECTED PER-SHARE
DATA

Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period

Income from .016 .035 .024 .025 .008
Investment
Operations
Net interest
income

Less Distributions (.016) (.035) (.024) (.025) (.008)
From net interest
income

Net asset value, end $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period

TOTAL RETURN B 1.59% 3.57 2.47% 2.51% 0.78%
%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 361,049 $ 363,396 $ 337,530 $ 306,741 $ 49,467
period (000
omitted)

Ratio of expenses .50%A .50 .00%D
to average net % .46%D .18%D
assets

Ratio of expenses to .48%A .50 .46% .18% .00%
average net assets ,C %
after expense
reductions

Ratio of net interest 3.17%A 3.52 2.43% 2.48% 2.91%A
income to average %
net assets

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Florida Municipal Income Fund(the income fund) is a fund of
Fidelity Court Street Trust. Spartan Florida Municipal Money Market Fund
(the money market fund) is a fund of Fidelity Court Street Trust II. Each
trust is registered under the Investment Company Act of 1940, as amended
(the 1940 Act), as an open-end management investment company. Fidelity
Court Street Trust and Fidelity Court Street Trust II (the trusts) are
organized as a Massachusetts business trust and a Delaware business trust,
respectively. Each fund is authorized to issue an unlimited number of
shares. The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to make
certain estimates and assumptions at the date of the financial statements.
The following summarizes the significant accounting policies of the income
fund and the money market fund:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix system
and/or appraisals by a pricing service, both of which consider market
transactions and dealer-supplied valuations. Short-term securities maturing
within sixty days of their purchase date are valued either at amortized
cost or original cost plus accrued interest, both of which approximate
current value. Securities for which quotations are not readily available
are valued at their fair value as determined in good faith under
consistently applied procedures under the general supervision of the Board
of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for market
discount, capital loss carryforwards and losses deferred due to wash sales,
and futures and options. The income fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The income fund may invest in futures and
options contracts, and may also write options. Risks may be caused by an
imperfect correlation between movements in the price of the instruments and
the price of the underlying securities and interest rates. Risks also may
arise if there is an illiquid secondary market for the instruments, or due
to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
RESTRICTED SECURITIES. The funds are permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES - CONTINUED
time-consuming negotiations and expense, and prompt sale at an acceptable
price may be difficult. At the end of the period, restricted securities
(excluding 144A issues) amounted to $17,450,000 or 4.8% of net assets for
the money market fund. The income fund had no investments in restricted
securities.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $56,885,819 and $43,481,052, respectively.
The market value of futures contracts opened and closed during the period
amounted to $20,490,650 and $22,848,967, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% and .50% of average net assets
for the income and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$1,640 and $3,464 for the income and money market funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of each fund with it's
custodian and transfer agent whereby interest earned on uninvested cash
balances is used to offset a portion of each fund's expenses. During the
period, the income and money market fund's expenses were reduced by $41,994
and $35,685, respectively, under these arrangements.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr. , Vice President
Janice S. Bradburn, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer- MONEY MARKET FUND
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

FIDELITY CONNECTICUT
MUNICIPAL MONEY MARKET
FUND

(registered trademark)

SEMIANNUAL REPORT
MAY 31, 1996
CONTENTS

CHECK PAGE NUMBERS !!!

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 14 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 18 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain fund expenses during the periods shown,
the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Fidelity Connecticut Municipal 1.51% 3.14% 14.49% 25.98%
Money Market Fund

Connecticut Tax-Free 1.43% 2.97% 13.40% n/a
Money Market Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or since
the fund started on August 29, 1989. For example, if you invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the Connecticut tax-free money
market funds average, which reflects the performance of 11 funds with
similar objectives tracked by IBC Financial Data, Inc. over the past year.
(The periods covered by IBC Financial Data, Inc. numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity Connecticut Municipal 3.14% 2.74% 3.47%
Money Market Fund

Connecticut Tax-Free 2.97% 2.54% n/a
Money Market Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
5/29/95 8/28/95 11/27/95 2/26/96 5/27/96

Fidelity Connecticut Municipa 3.50% 3.14% 3.23% 2.83% 3.17%
l
Money Market Fund

Connecticut Tax-Free 3.37% 3.01% 3.09% 2.67% 2.91%
Money Market Funds Averag
e

Fidelity Connecticut Municip 5.72% 5.12% 5.26% 4.61% 5.17%
al
Money Market Fund -
Tax-equivalent

Portion of fund's income 4.02% 6.30% 11.32% 10.70% 5.09%
subject to state taxes

</TABLE>

Fidelity Connecticut
Municipal Money
Market Fund
Connecticut
Tax-Free Money
Market Funds
Average
Row: 1, Col: 1, Value: 3.5
Row: 1, Col: 2, Value: 3.37
Row: 2, Col: 1, Value: 3.14
Row: 2, Col: 2, Value: 3.01
Row: 3, Col: 1, Value: 3.23
Row: 3, Col: 2, Value: 3.09
Row: 4, Col: 1, Value: 2.83
Row: 4, Col: 2, Value: 2.67
Row: 5, Col: 1, Value: 3.17
Row: 5, Col: 2, Value: 2.91
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the Connecticut tax-free money market funds average
as tracked by IBC Financial Data, Inc. Or you can look at the fund's
tax-equivalent yield, which is based on a combined effective 1996 federal
and state income tax rate of 38.88% and reflects that a portion of the
fund's income was subject to state taxes. A portion of the fund's income
may be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. Government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jeff Parker,
Portfolio Manager of Fidelity Connecticut Municipal Money Market Fund
Q. JEFF, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PAST SIX MONTHS?
A. When the period began, the Federal Reserve was in an easing mode, having
lowered the federal funds rate - the rate banks charge each other for
overnight loans - the previous July. With inflation under control, Congress
and the White House apparently making progress toward a balanced budget
agreement, and the economy losing steam, many market participants believed
it was only a matter of time before the Fed cut interest rates again. It
therefore came as no surprise when the Fed lowered the federal funds rate
one-quarter percentage point in early December, and lowered it again by an
equal amount on the last day of January 1996.
Q. WHAT HAS CHANGED SINCE THEN?
A. When Fed Chairman Alan Greenspan, testifying before Congress in
mid-February, seemed to suggest that the economy was basically sound, the
consensus shifted and rates backed up. Then came the infamous February
employment report, which was significantly stronger than most analysts had
predicted. Since then, a string of positive indicators has left little
doubt in most analysts' minds that, for the time being, the economy is in
no need of further stimulus.
Q. HOW DID YOU RESPOND TO CHANGING CONDITIONS?
A. The fund began the period with an average maturity of 62 days. In a
declining-rate environment, it usually makes sense to lock in attractive
rates for as long as possible by extending the fund's average maturity. As
evidence mounted that the economy was not as weak as we had thought, I
sought greater flexibility by reducing the fund's average maturity. By the
time the February employment report was released in early March, the fund's
average maturity was 44 days. Since then, I've held the average maturity
relatively stable, ending the period at 45 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1996 was 3.13%, compared to 3.21%
on November 30, 1995. The latest yield was the equivalent of a taxable
yield of 5.11% for Connecticut investors in the 38.88% combined federal and
state tax bracket. The fund's total return during the six-month period was
1.51%. That beat the total return of 1.43% for the Connecticut tax-free
money market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S THE OUTLOOK?
A. Given recent contradictory economic signals, I think it's likely the Fed
will stand pat for a while. Certainly no one expects the Fed to lower rates
again anytime soon. On the other hand, there have been ominous signs of
growing inflationary pressures in recent months. And if we continue to see
evidence of strong economic performance in key indicators such as
employment, housing and consumer spending, it's possible that the Fed will
choose to raise rates, perhaps sometime during the third quarter. Given the
lack of a solid direction, I'll probably aim to keep the fund's average
maturity about where it is right now - between 40 and 50 days. That gives
me maximum flexibility to adapt to changing conditions and take advantage
of buying opportunities as they arise.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income and stability by
investing mainly in high-quality,
short-term Connecticut
municipal money market
securities
START DATE: August 29, 1989
SIZE: as of May 31, 1996,
more than $324 million
MANAGER: Jeff Parker,
starting June 1, 1995; also
manager,
Fidelity Michigan Municipal
Money Market Fund, Fidelity
New Jersey Municipal Money
Market Fund, Spartan
Connecticut Municipal Money
Market Fund, and Spartan
New Jersey Municipal Money
Market Fund, since June
1995; joined Fidelity in 1991
(checkmark)

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/96 11/30/95 5/31/95

0 - 30 59 66 64

31 - 90 29 9 22

91 - 180 4 4 13

181 - 397 8 21 1

WEIGHTED AVERAGE MATURITY
5/31/96 11/30/95 5/31/95

Fidelity Connecticut
Municipal Money Market
Fund 45 days 62 days 30 days

Connecticut Tax-Free
Money Market Funds
Average* 27 days 58 days 38 days

ASSET ALLOCATION
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995

Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 16.0
Row: 1, Col: 4, Value: 8.0
Row: 1, Col: 5, Value: 8.0
Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 17.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 5, Value: 5.0
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 15%
Tender bonds 16%
Municipal
notes 8%
Other 8%
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 21%
Tender bonds 17%
Municipal
notes 4%
Other 5%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 80.0%
Bethany BAN 3.75% 8/21/96 $ 975,000 $ 975,852
Bethel BAN 4.25% 7/12/96 1,169,000 1,169,630
Clipper Participating VRDN, Series 94-1, 3.60%
(Liquidity Facility State Street Bank & Trust Co.) (c) 10,233,049
10,233,049
Connecticut Dev. Auth. Ind. Dev. Rev., VRDN (b):
(Cap. Dist. Energy Ctr. Proj.):
Series 1986, 3.55%, LOC Bank of Nova Scotia 7,300,000 7,300,000
Series 1988, 3.55%, LOC Bank of Nova Scotia 100,000 100,000
(Lindenmaier Precision Co. Ohaus Proj) Series 1988,
3.70%, LOC Morgan Guaranty Trust Co. 8,000,000 8,000,000
(W.E. Bassett Co. Proj.) Series 1986, 3.85%,
LOC Bank of Boston 1,200,000 1,200,000
Connecticut Dev. Auth. Health. Care Rev.
(Corp. for Independent Living Proj.) Series 1990,
3.55%, LOC Chemical Bank, VRDN 15,095,000 15,095,000
Connecticut Dev. Auth. Poll. Cont. Rev. (Light & Pwr. Co. Proj.)
VRDN (b):
Series 1993 B, 3.65%,
LOC Union Bank of Switzerland 15,000,000 15,000,000
Series 1996 A, 3.65%, LOC Canadian Bank
Imperial Bank 9,600,000 9,600,000
Connecticut Dev. Auth. Solid Waste Disp. Fac. Rev.
(Rand-Whitney Containerboard) 3.35%, LOC Chase
Manhattan Bank, VRDN (b) 6,700,000 6,700,000
Connecticut Dev. Auth. Wtr. Facs. Rev.
(Bridgeport Hydraulic Co.) Series 1995, 3.25%,
LOC Society Generale, VRDN 6,900,000 6,900,000
Connecticut Econ. Recovery Notes Gen. Oblig. Bonds
4.25% 12/15/96 3,000,000 3,010,030
Connecticut Elec. Energy Coop. Pwr. Supply Sys. Rev. Bonds
Series 1995 A, 3.35%, tender 6/18/96,
LOC Fleet Bank, NA 2,000,000 2,000,000
Connecticut Gen Oblig.:
Bonds:
Series 1990 C, 6.50% 9/15/96 1,000,000 1,008,270
Series 1995 B, 4.50% 10/1/96 3,985,000 3,993,355
Series 1996 A, 4% 5/15/97 3,000,000 3,011,099
Participating VRDN (c):
Series BT-103, 3.70
(Liquidity Facility Bankers Trust Co.) 3,165,000 3,165,000
Series MGT-27, 3.60% (Liquidity Facility Morgan
Guaranty Trust Co.) 5,200,000 5,200,000
Connecticut Health & Ed. Facs. Auth. Rev.:
(Charlotte Hungerford Hosp.) Series B, 3.40%,
LOC Bank of Boston, VRDN 1,700,000 1,700,000
(Pomfret School Issue) Series A, 3.60%,
LOC Credit Local de France, VRDN 1,000,000 1,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Ed. Facs. Auth. Rev.: - continued
Bonds:
(Bridgeport Hosp.)
Series C, 3.75% 7/1/96 (Connie Lee Insured) $ 520,000 $ 519,998
(Connecticut Univ. Sys.) Series A, 4.50% 11/1/96
(MBIA Insured) 1,050,000 1,053,409
(Yale Univ.):
Series L:
3.45%, tender 6/19/96 1,500,000 1,500,000
3.60%, tender 7/23/96 3,550,000 3,550,000
Series M:
3.50%, tender 8/14/96 2,900,000 2,900,000
3.60%, tender 7/23/96 4,400,000 4,400,000
Series N, 3.45%, tender 6/19/96 3,100,000 3,100,000
Series O:
3.60%, tender 7/25/96 8,400,000 8,400,000
3.50%, tender 8/14/96 4,700,000 4,700,000
Connecticut Hsg. Fin. Auth. Bonds (Hsg. Mtg. Fin. Prog.):
Series 1989 D:
3.80%, tender 7/23/96 (b) 1,500,000 1,500,000
3.80%, tender 7/24/96 (b) 6,700,000 6,700,000
Series 1993 E-1, 3.75%, tender 6/10/96 3,800,000 3,800,000
Series 1993 E-2, 3.85%, tender 6/10/96 (b) 6,120,000 6,120,000
Series 1996 A-3, 3.60%, tender 4/10/97 3,055,000 3,055,000
Series 1996 A-4, 3.65%, tender 4/10/97 (b) 6,400,000 6,400,000
Connecticut Regional School Dist. #10 BAN 4% 9/30/96 2,450,000 2,453,566
Connecticut Resource Recovery Bonds (Mid-Conn Sys.)
Series A, 5.10% 11/15/96 2,000,000 2,015,081
Connecticut Second Lien Spl. Tax Oblig. Bonds
(Transport Infrastructure Purpose) Series 1, 3.60%,
LOC Commerzbank, VRDN 22,075,000 22,075,000
Connecticut Spl. Assessment Unemployment Compensation
Rev. Bonds:
Series A, 4.20% 5/15/97 1,300,000 1,304,777
Series 1993 C, 3.85%, tender 7/1/96 (FGIC Insured)
(Liquidity Facility FGIC Security Purchase Inc.) 30,400,000 30,400,000
East Hartford Gen. Oblig. Bonds 6% 1/15/97
(MBIA Insured) 1,160,000 1,178,303
East Haven BAN 4.25% 9/4/96 1,000,000 1,001,132
Hartford Redev. Auth. (Underwood Towers Proj.) 3.75%
(FSA Insured) (BPA Barclays Bank) VRDN 2,000,000 2,000,000
New Haven BAN 4.25% 8/22/96, LOC State Street Bank
& Trust Co. 6,500,000 6,506,328
New Haven Gen. Oblig. Bonds Rfdg. Series 1995 A,
4.50% 8/1/96 1,570,000 1,571,518
New Haven Rev. (Starter Sportswear) Series 1986, 3.75%,
LOC Nat'l. Westminster Bank, VRDN (b) 2,600,000 2,600,000
New Milford BAN 3.77% 8/16/96 2,243,000 2,243,089
Seymour BAN 4% 10/16/96 2,900,000 2,905,304
Shelton County BAN 3.32% 6/4/96 1,175,000 1,175,007
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Stamford Hsg. Auth. Multimodal (Morgan St. Prog.)
Series 1994, 3.60%, LOC Deutsche Bank, VRDN (b) $ 5,000,000 $ 5,000,000
Winchester BAN 3.875% 8/2/96 834,000 834,662
Windham BAN 3.50% 12/17/96 7,300,000 7,306,136
256,629,595
LOUISIANA - 0.6%
Plaquemines Parish Envir. Rfdg.
(BP Exploration & Oil, Inc.) VRDN (b):
Series 1994, 4.10% 1,000,000 1,000,000
Series 1995, 4.10% 800,000 800,000
1,800,000
PUERTO RICO - 15.1%
Puerto Rico Commonwealth Highway & Trans. Auth. Highway
Participating VRDN, Series PA-114, 3.45%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 7,900,000 7,900,000
Puerto Rico Commonwealth Pub. Impt. Participating VRDN (c):
Series BT-165, 3.60% (Liquidity Facility Bankers Trust Co.) 4,620,600
4,620,600
Series PA-97, 3.45% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) 4,100,000 4,100,000
Series PT-63, 3.45% (Liquidity Facility
Bayerische Hypotheken) 2,100,000 2,100,000
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
Series BT-105, 3.375% (Liquidity Facility
Bankers Trust Co.) (c) 13,158,000 13,158,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg. Bonds Series W,
4.25% 7/1/96 8,000,000 8,002,194
Puerto Rico Govt. Dev. Bank 3.60% 7/17/96, CP 8,624,000 8,624,000
48,504,794
TEXAS - 3.6%
Brazos River Auth. Poll. Cont. Rev. Rfdg. (Texas Utils. Elec.
Co. Proj.) Series 1996 A, 4% (AMBAC Insured)
(BPA Bank of New York, NA) VRDN (b) 300,000 300,000
Brazos River Harbor Navigation Dist. of Brazoria County
Rev. (Dow Chemical Co. Proj.) VRDN (b):
Series 1993, 4.15% 5,200,000 5,200,000
Series 1996, 4.15% 3,600,000 3,600,000
Gulf Coast Ind. Dev. Auth. Solid Waste Disp. Rev.
(Citgo Petroleum) 4.15%, LOC Wachovia Bank,
VRDN (b) 2,500,000 2,500,000
11,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
VIRGINIA - 0.4%
Southampton County Ind. Dev. Auth. Ind. Rev.
(Hadson Pwr. 11 - Southampton Proj.) Series 1990 A,
3.95%, LOC Credit Suisse, VRDN (b) $ 1,300,000 $ 1,300,000
WASHINGTON - 0.3%
Washington Hsg. Fin. Commission Multi-Family Mtg. Rev.
(Canyon Lake II) 4.10%, LOC U.S. Bank Washington,
VRDN (b) 1,000,000 1,000,000
TOTAL INVESTMENTS - 100% $ 320,834,389
Total Cost for Income Tax Purposes $ 320,834,407

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1995, the fund had a capital loss carryforward of
approximately $29,600 of which $1,400, $400, $8,900, $16,000 and $2,900
will expire on November 30, 1999, 2000, 2001, 2002 and 2003, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value - See accompanying 5. $ 320,834,389
schedule

6.Cash 7. 1,690,864

8.Receivable for investments sold 9. 1,005,669

10.Interest receivable 11. 2,601,369

12. 13.TOTAL ASSETS 14. 326,132,291

15.LIABILITIES 16. 17.

18.Payable for investments purchased $ 1,022,353 19.

20.Distributions payable 23,104 21.

22.Accrued management fee 105,615 23.

24.Other payables and accrued expenses 68,467 25.

26. 27.TOTAL LIABILITIES 28. 1,219,539

29.30.NET ASSETS 31. $ 324,912,752

32.Net Assets consist of: 33. 34.

35.Paid in capital 36. $ 324,942,306

37.Accumulated net realized gain (loss) on investments 38. (29,563)

39.Unrealized gain from accretion of market discount 40. 9

41.42.NET ASSETS, for 324,942,306 shares outstanding 43. $ 324,912,752

44.45.NET ASSET VALUE, offering price and redemption 46. $1.00
price per share ($324,912,752 (divided by) 324,942,306 shares)

</TABLE>

STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

47.48.INTEREST INCOME 49. $ 6,008,110

50.EXPENSES 51. 52.

53.Management fee $ 668,764 54.

55.Transfer agent, accounting and custodian fees 267,853 56.
and expenses

57.Non-interested trustees' compensation 1,111 58.

59.Registration fees 15,072 60.

61.Audit 10,238 62.

63. 64.Total expenses before reductions 963,038

65. Expense reductions (9,844) 953,194

66.67.NET INTEREST INCOME 68. 5,054,916

69.REALIZED AND UNREALIZED GAIN (LOSS) 71. (38)
70.Net realized gain (loss) on investment securities

72.Increase (decrease) in net unrealized gain from 73. 9
accretion of market discount

74.75.NET GAIN (LOSS) 76. (29)

77.78.NET INCREASE IN NET ASSETS RESULTING FROM 79. $ 5,054,887
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995

80.INCREASE (DECREASE) IN NET ASSETS

81.Operations $ 5,054,916 $ 10,252,453
Net interest income

82. Net realized gain (loss) (38) (2,885)

83. Increase (decrease) in net unrealized gain from 9 -
accretion of market discount

84. 85.NET INCREASE (DECREASE) IN NET ASSETS 5,054,887 10,249,568
RESULTING FROM OPERATIONS

86.Distributions to shareholders from net interest (5,054,916) (10,252,453)
income

87.Share transactions at net asset value of $1.00 per 467,568,013 718,824,759
share
Proceeds from sales of shares

88. Reinvestment of distributions from net interest 4,878,965 9,814,514
income

89. Cost of shares redeemed (469,404,009) (707,651,485)

90.91. 3,042,969 20,987,788
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS

92. 93.TOTAL INCREASE (DECREASE) IN NET ASSETS 3,042,940 20,984,903

94.NET ASSETS 95. 96.

97. Beginning of period 321,869,812 300,884,909

98. End of period $ 324,912,752 $ 321,869,812

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1996

(UNAUDITED) 1995 1994 1993 1992 1991

99.SELECTED PER-SHARE
DATA

100.Net $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
asset value,
beginning
of period

101.Income .015 .032 .022 .019 .027 .044
from
Investment
Operations
Net interest
income

102.Less (.015) (.032) (.022) (.019) (.027) (.044)
Distribution
s
From net
interest
income

103.Net $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
asset value,
end of
period

104.TOTAL 1.51% 3.29% 2.19% 1.87% 2.74% 4.54%
RETURN B

105.RATIOS AND SUPPLEMENTAL DATA

106.Net $ 324,913 $ 321,870 $ 300,885 $ 288,566 $ 331,909 $ 418,337
assets, end
of period
(000
omitted)

107.Ratio of .57%A .61% .60% .61% .43% .07%
expenses ,C C C
to average
net assets

108.Ratio of 3.00%A 3.24% 2.16% 1.87% 2.76% 4.45%
net interest
income to
average net
assets

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Connecticut Municipal Money Market Fund (the fund) is a fund of
Fidelity Court Street Trust II (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The financial
statements have been prepared in conformity with generally accepted
accounting principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR ) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .40% of the fund's average net
assets.
2. OPERATING POLICIES -
CONTINUED
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $2,011 for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the fund. UMB has entered
into a sub-contract with Fidelity Service Co. (FSC), an affiliate of FMR,
under which FSC performs the activities associated with the fund's transfer
and shareholder servicing agent and accounting functions. The fund pays
account fees and asset-based fees that vary according to account size and
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is based
on the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received transfer agent and accounting fees
amounting to $222,568 and $34,207, respectively.
For the period, the transfer a,gent fees were equivalent to an annualized
rate of .13% of the fund's average net assets.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $11,470.
3. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its transfer agent whereby
interest earned on uninvested cash balances was used to offset a portion of
the fund's expenses. During the period, the fund's transfer agent fees were
reduced by $9,844 under this arrangement.
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Fidelity Municipal Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(registered trademark)
CONNECTICUT
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
MAY 31, 1996
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

PERFORMANCE 23 How the fund has done over time.

FUND TALK 25 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 27 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 28 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 32 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 36 Notes to the financial statements.

</TABLE>

SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value), and the effect of the $5 account
closeout fee on an average sized account. You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain fund
expenses during the periods shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan Connecticut Municipal -0.60% 4.09% 39.46% 92.49%
Income Fund

Lehman Brothers Connecticut 4 Plus -0.40% 4.56% n/a n/a
Year Enhanced Municipal Bond Index

Connecticut Municipal -0.77% 3.78% n/a n/a
Debt Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on October 29, 1987. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Lehman Brothers Connecticut 4 Plus Year Enhanced
Municipal Bond Index, which includes Connecticut investment-grade municipal
bonds with maturities of four years or greater. To measure how the fund's
performance stacked up against its peers, you can compare it to the
Connecticut municipal debt funds average, which reflects the performance of
24 Connecticut municipal bond funds with similar objectives tracked by
Lipper Analytical Services over the past six months. Both benchmarks
include reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Connecticut Municipal 4.09% 6.88% 7.91%
Income Fund

Lehman Brothers Connecticut 4 Plus 4.56% n/a n/a
Year Enhanced Municipal Bond Index

Connecticut Municipal 3.78% n/a n/a
Debt Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960531 19960618 163529 S00000000000001
Spartan CT Muni Inc. LB Municipal Bond
00407 LB015
1987/10/31 10000.00 10000.00
1987/11/30 10121.14 10261.10
1987/12/31 10253.38 10409.99
1988/01/31 10621.33 10780.79
1988/02/29 10727.51 10894.75
1988/03/31 10415.77 10767.82
1988/04/30 10463.24 10849.66
1988/05/31 10515.58 10818.30
1988/06/30 10713.46 10976.57
1988/07/31 10766.94 11048.14
1988/08/31 10821.12 11057.86
1988/09/30 11033.66 11258.01
1988/10/31 11228.48 11456.71
1988/11/30 11123.75 11351.77
1988/12/31 11289.82 11467.90
1989/01/31 11442.62 11705.06
1989/02/28 11333.30 11571.50
1989/03/31 11345.51 11543.84
1989/04/30 11654.63 11817.90
1989/05/31 11899.33 12063.35
1989/06/30 12098.25 12227.17
1989/07/31 12229.60 12393.59
1989/08/31 12100.68 12272.25
1989/09/30 12064.54 12235.68
1989/10/31 12207.62 12385.32
1989/11/30 12387.76 12602.07
1989/12/31 12467.78 12705.15
1990/01/31 12357.27 12645.06
1990/02/28 12469.60 12758.23
1990/03/31 12491.34 12762.06
1990/04/30 12296.35 12669.66
1990/05/31 12602.20 12946.24
1990/06/30 12730.24 13060.04
1990/07/31 12919.64 13252.67
1990/08/31 12687.34 13060.24
1990/09/30 12769.37 13067.69
1990/10/31 12962.06 13304.73
1990/11/30 13241.66 13572.29
1990/12/31 13302.08 13631.33
1991/01/31 13449.71 13814.26
1991/02/28 13534.39 13934.45
1991/03/31 13556.04 13939.47
1991/04/30 13728.33 14125.56
1991/05/31 13850.06 14251.13
1991/06/30 13743.00 14237.02
1991/07/31 13906.13 14410.43
1991/08/31 14057.22 14600.22
1991/09/30 14183.28 14790.31
1991/10/31 14323.10 14923.42
1991/11/30 14357.59 14965.06
1991/12/31 14709.45 15286.21
1992/01/31 14731.80 15321.06
1992/02/29 14739.08 15325.97
1992/03/31 14671.72 15331.64
1992/04/30 14749.26 15468.09
1992/05/31 14951.25 15650.15
1992/06/30 15245.81 15912.76
1992/07/31 15720.88 16389.82
1992/08/31 15498.38 16230.02
1992/09/30 15604.48 16336.17
1992/10/31 15338.54 16175.58
1992/11/30 15752.71 16465.29
1992/12/31 15918.26 16633.40
1993/01/31 16155.63 16826.84
1993/02/28 16812.50 17435.47
1993/03/31 16583.73 17251.18
1993/04/30 16736.58 17425.24
1993/05/31 16834.46 17523.17
1993/06/30 17132.68 17815.63
1993/07/31 17158.04 17838.97
1993/08/31 17547.22 18210.38
1993/09/30 17760.01 18417.79
1993/10/31 17769.52 18453.34
1993/11/30 17613.41 18290.77
1993/12/31 17984.08 18676.89
1994/01/31 18192.21 18890.18
1994/02/28 17691.72 18400.92
1994/03/31 16886.79 17651.63
1994/04/30 17031.87 17801.32
1994/05/31 17133.36 17955.66
1994/06/30 17026.95 17845.95
1994/07/31 17368.71 18173.06
1994/08/31 17407.79 18235.94
1994/09/30 17121.76 17968.24
1994/10/31 16740.39 17649.12
1994/11/30 16273.39 17330.03
1994/12/31 16722.36 17711.46
1995/01/31 17257.49 18217.66
1995/02/28 17785.12 18747.42
1995/03/31 17975.02 18962.83
1995/04/30 17995.56 18985.21
1995/05/31 18555.39 19591.03
1995/06/30 18388.43 19419.61
1995/07/31 18493.83 19603.70
1995/08/31 18751.20 19852.28
1995/09/30 18902.35 19977.94
1995/10/31 19142.51 20268.42
1995/11/30 19431.77 20604.68
1995/12/31 19585.33 20802.69
1996/01/31 19756.12 20959.75
1996/02/29 19659.57 20818.27
1996/03/31 19393.70 20552.21
1996/04/30 19353.03 20494.05
1996/05/31 19315.79 20485.85
IMATRL PRASUN SHR__CHT 19960531 19960618 163535 R00000000000123

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Connecticut Municipal Income Fund on October 31, 1987, shortly after the
fund started. As the chart shows, by May 31, 1996, the value of your
investment would have grown to $19,316 - a 93.16% increase on your initial
investment. This assumes you still own the fund on May 31, 1996, and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond Index - which
reflects the performance of the investment-grade municipal bond market -
did over the same period. With dividends reinvested, the same $10,000 would
have grown to $20,486 - a 104.86% increase.

1996 1995 1994 1993 1992 1991

Dividend return 2.53% 6.62% 5.27% 6.29% 6.59% 6.65%

Capital appreciation
returns -3.13% 12.78% -12.89% 5.52% 3.12% 1.77%

Total return -0.60% 19.40% -7.62% 11.81% 9.71% 8.42%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.90(cents) 28.60(cents) 58.55(cents)

Annualized dividend rate 5.30% 5.14% 5.31%

30-day annualized yield 4.68% - -

30-day annualized tax-equivalent yield 7.66% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.89 over
the past month, $11.09 over the past six months and $11.03 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 38.88% 1996 combined federal and state tax bracket but does not
reflect payment of the alternative minimum tax, if applicable.

SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS:
On May 13, 1996, George Fischer became portfolio manager of Spartan
Connecticut Municipal Income Fund,
replacing Maureen Newman.
Q. HOW DID THE FUND PERFORM, GEORGE?
A. Fairly well, compared to its peer group. For the six-month period ended
May 31, 1996, the fund had a total return of -0.60%. For the same period,
the Connecticut municipal debt funds average, as tracked by Lipper
Analytical Services, returned -0.77%, while the Lehman Brothers Connecticut
4 Plus Year Enhanced Municipal Bond Index returned -0.40%. For the 12
months ended May 31, 1996, the fund returned 4.09%, the Lipper average
returned 3.78% and the index had a total return of 4.56%.
Q. WHAT WAS BEHIND THE RISE IN INTEREST RATES OVER THE PAST SEVERAL MONTHS?
A. I would say that the main "culprit" has been an economy that's turned
out to be stronger than most people had anticipated. Bond prices fell and,
correspondingly, rates rose. In general, the market prefers a steady,
low-growth environment. The rise certainly was not due to an uptick in
inflation; we haven't seen that happen for several years. From my
standpoint, having taken over management of the fund in May, I like the
fact that we had higher yields to work with in the market. That's because,
as long as inflation remains in check going forward, higher yields can help
make bonds more attractive investments relative to alternatives such as
stocks.
Q. ARE THERE ANY BENEFITS TO A STRONG ECONOMY FOR THE BOND MARKET?
A. Yes. A growing economy can reduce the need for municipalities to fund
various social services, for example, if more people are working and
providing for themselves. It can also help the revenue side, because more
workers and healthier corporations can generate better revenue streams for
municipalities to pay their debt. But you also have to keep in mind that
overall, there's probably more pressure on municipalities today than in the
past. The federal government is passing responsibilities down to the
states, where the resistance to taxes, especially new ones, is as strong as
ever.
Q. WHAT CHANGES HAVE YOU MADE TO THE PORTFOLIO SINCE YOU BEGAN MANAGING THE
FUND?
A. Actually, very few so far. As of the end of the period, I was still in
the process of reviewing all of the fund's holdings. Over the past few
years, the previous manager, Maureen Newman, had carefully selected
securities for the portfolio that she felt very strongly about. Like
Maureen, my background is also in credit analysis. From what I've seen, the
portfolio was, for the most part, in line with the way I would have
structured it through the end of the period.
Q. THE FUND HAD SIZABLE HOLDINGS IN EDUCATION BONDS DURING THE PERIOD.
WHAT'S YOUR PHILOSOPHY IN EVALUATING THE FUND'S POSITIONS IN THAT SECTOR?
A. It depends on the school. For instance, for schools such as the
University of Connecticut, I think it's important for me to see that the
state and its residents believe in and support the school. I look to see
whether parents are sending their kids there, whether there's a sense of
commitment to its future. I don't want to see what happened in California
happen here. That state went from being a national leader in support of
state colleges to withdrawing much of that support because of budget
pressures. A very different example is Quinnipiac College, a private
school. It's not a huge or super- wealthy school, but it's steady and
well-managed. It also has a couple of important niches - it's noted for
physical therapy and mass communications - that make it a first-choice
school for many students. So it's got a good story behind its attractive
bond yield, which gives the security some strength in a very competitive
environment.
Q. PUERTO RICO BONDS HAVE, IN THE PAST, PLAYED A KEY ROLE IN HELPING THE
FUND WEATHER DIFFICULTIES IN THE CONNECTICUT MUNICIPAL MARKET. HOW DO YOU
VIEW THEIR ROLE IN THE FUND'S PORTFOLIO?
A. Let me explain that a bit. From time to time, particularly when a state
is undergoing problems caused by budget difficulties or other problems,
Puerto Rico bonds - which are tax-exempt in every state - can be a useful
addition to the portfolio. That was the case during the previous period, as
Connecticut went through its biennial budget process. But, in general, I
plan to use them sparingly. I am looking to provide what shareholders want
most from this fund, which is tax-exempt income from Connecticut bonds.
Q. WE UNDERSTAND THERE WILL BE
SOME CHANGES TO THE FUND'S INVESTMENT POLICIES...
A. That's right. As of June 24, 1996, the fund will reserve the right to
invest up to 5% of its holdings - down from one-third - in below
investment-grade securities. The fund does not intend to seek out the
lower-quality, below investment-grade bonds. Instead, this change gives the
fund additional flexibility under unusual circumstances. Also, Fidelity
will use two additional credit agencies - Duff & Phelps Credit Rating Co.
and Fitch Investors Service, L.P., as well as Moody's Investors Service and
Standard & Poor's which the fund already uses - to determine the credit
quality of the fund's bonds.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. I'd say that the fund is very well positioned right now for the
high-tax-bracket Connecticut investor. The municipal market overall seems
to be attractive relative to corporate and U.S. Treasury bonds, as well as
to the stock market. The previous engines of job growth in the state were
defense and financial services, and nothing has stepped in to take their
place as of yet. Given that, I think that job growth will continue to be
sluggish in Connecticut and in the Northeast in general, but that the worst
may be past. I'll need to pay special attention to national trends in
health care as they relate to the fund's holdings in hospitals, which have
performed well so far. If those credits weaken, or if they don't live up to
the market's or my own expectations, I won't hesitate to sell them and look
for other good opportunities in the state.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: to provide high current
tax-free income for
Connecticut residents
START DATE: October 29, 1987
SIZE: as of May 31, 1996,
more than $331 million
MANAGER: George Fischer,
since May 1996; manager,
Spartan Bond Strategist,
since 1993; Fidelity Insured
Municipal Income, since
1995; Fidelity Municipal Bond
Fund, since 1995; joined
Fidelity in 1989
(checkmark)

GEORGE FISCHER ON HIS
INVESTMENT STYLE:
"In managing a state-specific
municipal fund, the real
challenge is to give the fund's
shareholders exactly what they
want: tax-exempt income,
delivered in a way that doesn't
expose them to undue risk.
The first way that I'll do that is
to manage the fund's duration
- - that is, its sensitivity to
interest rate changes - to be
similar to that of the fund's
benchmark index. Currently,
that's about 7 1/2 years, which
means that a movement of 100
basis points in rates would
cause the net asset value to
move by around 7 or 8% in the
opposite direction. Secondly, I
look for opportunities to invest
outside of the major issuers,
which include the general
obligations of the state, special
tax obligation bonds and those
issued by the Housing Finance
Authority. I look for what I
believe is a good combination
of high income and low risk.
Fortunately, there are some
local issuers in Connecticut
that meet these criteria,
although my style is to stay
diversified and not take on very
large positions in any one
security, no matter how
attractive it looks. The other
important aspect of my style is
to take input from our
quantitative research area.
That encompasses evaluating
weightings along the yield
curve, couponing strategies,
call features and tax
implications; in short,
everything besides credit
analysis that goes into the
pricing of a bond. I anticipate
working closely with this group
to help me craft the best
portfolio I can for my
shareholders."

SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

General Obligation 32.3 28.1

Health Care 11.9 15.0

Education 11.6 11.3

Special Tax 9.7 10.5

Housing 9.3 8.5

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 14.8 15.9

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1996
6 MONTHS AGO

Years 7.4 7.3

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
CAN ALSO INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995
Aaa 41.9%
Aa, A 40.3%
Baa 13.4%
Ba, B 0.0%
Non-rated 0.5%
Short-term
investments 3.9%
Aaa 33.7%
Aa, A 44.6%
Baa 14.2%
Ba, B 2.2%
Non-rated 0.9%
Short-term
investments 4.4%
Row: 1, Col: 1, Value: 41.9
Row: 1, Col: 2, Value: 40.3
Row: 1, Col: 3, Value: 13.4
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 1.5
Row: 1, Col: 6, Value: 3.9
Row: 1, Col: 1, Value: 33.7
Row: 1, Col: 2, Value: 44.6
Row: 1, Col: 3, Value: 14.2
Row: 1, Col: 4, Value: 3.2
Row: 1, Col: 5, Value: 1.9
Row: 1, Col: 6, Value: 4.4
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 96.1%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - 93.4%
Branford Gen. Oblig. Unltd. Tax:
7% 6/15/08 (FGIC Insured) Aaa $ 500,000 $ 565,625
7% 6/15/09 (FGIC Insured) Aaa 500,000 564,375
Bridgeport Gen. Oblig.:
Series A:
5.40% 9/1/08 (AMBAC Insured) Aaa 550,000 533,500
5.50% 9/1/09 (AMBAC Insured) Aaa 550,000 532,813
5.60% 9/1/10 (AMBAC Insured) Aaa 550,000 537,625
5.70% 9/1/11 (AMBAC Insured) Aaa 550,000 536,938
Series B, 7.75% 11/15/10 Baa 3,235,000 3,457,406
Unltd. Tax Series A:
7.20% 3/1/98 Baa 930,000 960,225
7.40% 3/1/00 Baa 1,080,000 1,142,100
7.25% 6/1/02 Baa 565,000 592,544
6% 9/1/03 (AMBAC Insured) Aaa 4,475,000 4,687,563
8.75% 8/15/05 (FGIC Insured) Aaa 670,000 823,263
6% 9/1/05 (AMBAC Insured) Aaa 4,000,000 4,175,000
7.625% 1/15/09 Baa 1,500,000 1,576,875
Canterbury Gen. Oblig. Unltd. Tax:
7.20% 5/1/05 A 350,000 388,938
7.20% 5/1/06 A 195,000 217,913
Cheshire Gen. Oblig. Unltd. Tax:
6.90% 2/15/06 Aa 100,000 113,250
6.90% 2/15/07 Aa 100,000 113,375
6.90% 2/15/08 Aa 100,000 113,500
Connecticut Clean Wtr. Fund Rev.:
Series 1991, 7% 1/1/11 Aaa 2,500,000 2,728,125
5.875% 11/1/03 Aaa 1,000,000 1,060,000
5.875% 5/1/04 Aaa 1,000,000 1,057,500
6.80% 7/1/05 Aaa 1,000,000 1,087,500
5.875% 4/1/08 Aaa 1,000,000 1,041,250
6% 10/1/12 (d) Aaa 6,000,000 6,172,500
Connecticut Dev. Auth. Health Care Rfdg.
(Duncaster, Inc. Proj.) 6.75% 9/1/15 Aa3 3,000,000 3,090,000
Connecticut Dev. Auth. Poll. Cont. Rev.:
(New England Pwr. Co. Proj.)
7.25% 10/15/15 A1 3,000,000 3,202,500
(United Illuminating Co. Proj.)
9.50% 6/1/16 BBB- 2,625,000 2,756,066
Connecticut Dev. Auth. Rev. (Hartford Civic Ctr.)
Series A:
6% 11/15/07 A1 1,525,000 1,599,344
6% 11/15/08 A1 3,050,000 3,170,094
4.75% 11/15/13 A1 1,525,000 1,294,344
Connecticut Dev. Auth. Wtr. Facs. Rev. Rfdg.
(Bridgeport Hydraulic Co. Proj.)
7.25% 6/1/20 A+ 1,000,000 1,073,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Gen. Oblig.:
Rfdg. Series B, 5.30% 3/15/07 Aa $ 1,500,000 $ 1,486,875
Series A:
6.10% 3/15/02 Aa 3,000,000 3,172,500
7% 3/15/03 Aa 5,000,000 5,550,000
Series B, 6% 10/1/05 Aa 5,000,000 5,312,500
(Cap. Appreciation College Savings Plan):
Series A, 0% 12/1/07 Aa 4,000,000 2,130,000
Unltd. Tax Series B, 0% 11/1/09 Aa 7,390,000 3,473,300
(College Savings Plan):
Series A:
0% 5/15/07 Aa 2,250,000 1,234,688
0% 5/15/10 Aa 7,980,000 3,620,925
Series B:
0% 11/15/10 Aa 4,460,000 1,967,975
0% 11/1/06 Aa 2,800,000 1,599,500
5% 10/1/06 (FGIC Insured) Aaa 1,020,000 997,050
6% 3/15/01 Aa 2,405,000 2,528,256
Connecticut Health & Ed. Facs. Auth. Rev.:
Rfdg. (Quinnipiac College) Series D:
6% 7/1/13 BBB- 3,500,000 3,259,375
6% 7/1/23 BBB- 3,975,000 3,567,563
(Bristol Hosp.) Issue A:
7% 7/1/09 (MBIA Insured) Aaa 1,750,000 1,879,063
7% 7/1/20 (MBIA Insured) Aaa 4,180,000 4,446,475
(Connecticut College) Issue B, 6.625% 7/1/11
(MBIA Insured) Aaa 1,200,000 1,282,500
(Kent School):
Series B:
3.90% 7/1/97 (MBIA Insured) Aaa 250,000 249,318
4% 7/1/98 (MBIA Insured) Aaa 200,000 198,500
4.125% 7/1/99 (MBIA Insured) Aaa 325,000 320,938
4.40% 7/1/01 (MBIA Insured) Aaa 250,000 244,688
4.50% 7/1/02 (MBIA Insured) Aaa 305,000 297,756
4.60% 7/1/03 (MBIA Insured) Aaa 150,000 146,063
4.70% 7/1/04 (MBIA Insured) Aaa 500,000 485,000
4.875% 7/1/05 (MBIAInsured) Aaa 400,000 389,500
5.10% 7/1/07 (MBIA Insured) Aaa 265,000 257,713
5.25% 7/1/08 (MBIA Insured) Aaa 305,000 297,375
5.375% 7/1/09 (MBIA Insured) Aaa 845,000 822,819
5.40% 7/1/10 (MBIA Insured) Aaa 685,000 664,450
5.50% 7/1/15 (MBIA Insured) Aaa 3,575,000 3,400,719
5.40% 7/1/23 (MBIA Insured) Aaa 2,000,000 1,842,500
(Lutheran Gen. Health Care Sys.) 7.375%
7/1/19 (Escrowed to Maturity) (e) Aaa 3,195,000 3,734,156
(New Britain Mem. Hosp.)
Series A, 7.75% 7/1/22 BBB- 6,500,000 6,784,375
(Quinnipiac College) Series C, 7.75% 7/1/20
(Pre-Refunded to 7/1/00 @102) (e) BBB- 1,000,000 1,128,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Ed. Facs. Auth. Rev. - continued
(St. Mary's Hosp.) Issue B:
7.60% 7/1/03 Baa $ 900,000 $ 943,875
7.80% 7/1/09 Baa 4,525,000 4,711,656
(St. Raphael Hosp.) Series H:
6.50% 7/1/11 (AMBAC Insured) Aaa 2,780,000 3,026,725
6.50% 7/1/13 (AMBAC Insured) Aaa 3,125,000 3,429,688
5.25% 7/1/14 (AMBAC Insured) Aaa 4,400,000 4,141,500
(Sacred Heart Univ.) Series A:
6.85% 7/1/22 LOC Fleet Nat'l. Bank
(Pre-Refunded to 7/1/02 @102) (e) Baa 1,000,000 1,113,750
6.50% 7/1/06 Baa 250,000 247,188
6.50% 7/1/16 Baa 4,000,000 3,980,000
(Sharon Healthcare, Inc.):
Series A:
8.75% 7/1/06
(Pre-Refunded to 7/1/01 @103) (e) AAA 450,000 540,000
9% 7/1/13
(Pre-Refunded to 7/1/01 @103) (e) AAA 1,300,000 1,573,000
9.20% 7/1/21
(Pre-Refunded to 7/1/01 @103) (e) AAA 1,500,000 1,830,000
(The Griffin Hosp.) Series A, 6% 7/1/13 Baa1 850,000 785,188
(Yale-New Haven Hosp.) Series F, 7.10%
7/1/25 (MBIA Insured) Aaa 5,000,000 5,337,500
(Yale Univ.) 5.929% 6/10/30 Aaa 14,000,000 13,737,500
Connecticut Higher Ed. Supplemental Loan
Auth. Rev. (b):
Series A:
7.375% 11/15/05 A1 525,000 550,594
7.50% 11/15/10 A1 1,815,000 1,905,750
(Family Ed. Loan Prog.)
Series A, 7.20% 11/15/10 A 890,000 936,725
Connecticut Hsg. Fin. Auth. (Hsg. Mtg. Fin. Prog.):
Series A, Subseries A-2, 6.45% 5/15/22 Aa 5,500,000 5,541,250
Series B:
6.20% 5/15/12 Aa 3,000,000 3,030,000
Subseries B-1:
7.55% 11/15/08 Aa 250,000 253,750
6.125% 5/15/18 Aa 4,650,000 4,655,813
Series C, 7.625% 11/15/17 Aa 530,000 546,563
Connecticut Hsg. Fin. Auth.:
(Hsg. Mtg. Fin. Prog.):
Series E:
6.20% 5/15/14 Aa 1,000,000 1,008,750
Subseries E-1, 6.30% 5/15/17 Aa 1,950,000 1,957,313
Series F:
Subseries F-1:
5.45% 11/15/08 Aa 1,635,000 1,610,475
6% 5/15/17 Aa 1,500,000 1,479,375
5.90% 11/15/15 Aa 5,000,000 4,987,500
6.05% 5/15/17 Aa 3,600,000 3,582,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Muni. Elec. Energy Coop. Pwr.
Supply Sys. Rev.:
6% 1/1/04 (MBIA Insured) Aaa $ 3,190,000 $ 3,349,500
6% 1/1/05 (MBIA Insured) Aaa 3,380,000 3,544,775
6% 1/1/06 (MBIA Insured) Aaa 2,000,000 2,092,500
Connecticut Resource Recovery Auth. Rev.:
Rfdg. Series A, 5.50% 11/15/11
(MBIA Insured) (f) Aaa 2,500,000 2,378,125
Series B, 7.30% 11/15/12 Aaa 775,000 810,371
(American Refuse Fuel Co.) 8.10% 11/15/15 A2 4,500,000 4,888,125
5.25% 11/15/08 (MBIA Insured) (f) Aaa 8,000,000 7,620,000
5.375% 11/15/10 (MBIA Insured) (f) Aaa 1,000,000 946,250
Connecticut Spl. Tax. Oblig. Rev.:
Rfdg. (Trans. Infrastructure):
Series 1993 A, 5.375% 9/1/08 A1 6,705,000 6,579,281
Series A, 5.25% 9/1/07 A1 2,165,000 2,121,700
(Trans. Infrastructure):
Series A:
6.50% 6/1/03 A1 2,800,000 3,034,500
7.125% 6/1/10 A1 3,550,000 4,073,625
Series B:
0% 6/1/08 A1 3,500,000 1,802,500
6.15% 9/1/09 A1 1,500,000 1,591,875
6.125% 9/1/12 A1 5,000,000 5,181,250
6.50% 10/1/10 A1 3,250,000 3,558,750
6.50% 10/1/12 A1 3,500,000 3,766,875
Eastern Resource Recovery Auth. Solid Waste Rev.
(Wheelabrator Lisbon Proj.) (b):
Series A:
5% 1/1/04 A 1,000,000 958,750
5.50% 1/1/15 A 8,000,000 7,150,000
5.50% 1/1/20 A 3,000,000 2,625,000
Franklin Gen. Oblig. Unltd. Tax:
7.30% 3/15/04 A 225,000 247,219
7.30% 3/15/05 A 225,000 249,188
7.30% 3/15/06 A 225,000 252,281
Hartford County Metropolitan Dist. Gen. Oblig.
6.20% 11/15/09 Aa1 250,000 266,875
Hartford County Metropolitan Dist. Gen. Oblig.
School Boards Unltd. Tax 9.50% 6/1/03 Aa1 100,000 125,375
Manchester Redev. Agcy. Multi-Family Mtg.
Rev. Rfdg. (Bennet Hsg. Dev.)
7.20% 12/1/18 - 1,520,000 1,529,500
Meriden Gen. Oblig. Unltd. Tax 7% 10/1/07
(MBIA Insured) Aaa 500,000 566,875
Milford Gen. Oblig.:
5.20% 1/15/11 Aa 550,000 520,438
Unltd. Tax:
6.70% 2/1/05 Aa 400,000 444,000
6.70% 2/1/08 Aa 315,000 350,831
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Monteville Gen. Oblig.:
6.30% 3/1/10 Aa $ 405,000 $ 433,856
Unltd. Tax:
7% 3/15/13 Aa 220,000 250,800
7% 3/15/14 Aa 220,000 250,525
7% 3/15/15 Aa 210,000 238,875
Naugatuck Gen. Oblig. Unltd. Tax:
7.25% 9/1/04 (MBIA Insured) Aaa 215,000 245,638
6.90% 6/15/07 (FGIC Insured) Aaa 485,000 542,594
7.40% 9/1/07 (MBIA Insured) Aaa 370,000 430,125
7.40% 9/1/08 (MBIA Insured) Aaa 370,000 430,125
New Britain Gen. Oblig.:
Series B, 6% 3/1/12 (MBIA Insured) Aaa 2,000,000 2,055,000
5% 2/1/12 (MBIA Insured) Aaa 885,000 814,200
5% 2/1/13 (MBIA Insured) Aaa 885,000 806,456
Unltd. Tax:
Rfdg. 6% 2/1/12 (MBIA Insured) Aaa 400,000 411,000
7% 4/1/07 (MBIA Insured) Aaa 580,000 650,325
7% 4/1/08 (MBIA Insured) Aaa 580,000 652,500
New Haven Gen. Oblig.:
Rfdg. Series A:
5% 8/1/07 (FGIC Insured) Aaa 1,000,000 961,250
5% 8/1/08 (FGIC Insured) Aaa 2,720,000 2,587,400
5% 8/1/09 (FGIC Insured) Aaa 1,775,000 1,668,500
Series A, 7.40% 3/1/12 Baa 1,000,000 1,052,500
7% 2/15/03 (FGIC Insured) Aaa 1,000,000 1,113,750
7% 2/15/04 (FGIC Insured) Aaa 1,150,000 1,289,437
7% 2/15/05 (FGIC Insured) Aaa 1,250,000 1,409,374
8.25% 8/15/01 Baa 3,280,000 3,710,500
6% 8/1/05 (FGIC Insured) Aaa 3,410,000 3,576,237
Newington Unltd. Tax:
6.50% 2/1/06 A1 320,000 345,200
6.60% 2/1/07 A1 200,000 218,500
North Haven Unltd. Tax 7% 10/1/08 Aa 375,000 424,218
North Thompsonville Fire Dist. #10:
6.75% 6/1/07 (MBIA Insured) Aaa 180,000 200,475
6.75% 6/1/08 (MBIA Insured) Aaa 190,000 211,138
6.75% 6/1/09 (MBIA Insured) Aaa 200,000 224,750
6.75% 6/1/10 (MBIA Insured) Aaa 215,000 242,144
6.75% 6/1/11 (MBIA Insured) Aaa 230,000 259,038
Norwalk Hsg. Auth. Mtg. Rev. (Monterey Village -
Section 8) Series 1985 B, 9% 11/1/99 BBB 145,000 148,625
Plainville Gen. Oblig.:
6.60% 8/15/08 A1 250,000 273,125
Unltd. Tax:
6.60% 8/15/09 A1 250,000 274,063
6.60% 8/15/10 A1 250,000 274,687
6.60% 8/15/11 A1 250,000 275,937
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
South Central Connecticut Wtr. Sys. Auth. Rev.
11th Series, 5.625% 8/1/05 (FGIC Insured) Aaa $ 5,000,000 $ 5,112,500
Stamford Gen. Oblig. Unltd. Tax:
6.60% 1/15/07 Aaa 295,000 329,294
6.60% 1/15/08 Aaa 1,480,000 1,650,200
6.60% 1/15/09 Aaa 1,000,000 1,112,500
Stratford Gen. Oblig. Unltd. Tax 7% 6/15/08
(FGIC Insured) Aaa 500,000 564,375
Thomaston Unltd. Tax 6.50% 8/1/09 A 210,000 225,225
Univ. of Connecticut 5.50% 2/1/06
(FGIC Insured) Aaa 3,070,000 3,112,213
Vernon Gen. Oblig. Unltd. Tax:
7.10% 10/15/07 A1 250,000 289,375
7.10% 10/15/08 A1 250,000 289,375
Voluntown Gen. Oblig. Unltd. Tax:
6.75% 10/1/03 A 210,000 226,274
6.75% 10/1/04 A 210,000 227,062
6.80% 10/1/06 A 210,000 231,524
6.80% 10/1/07 A 210,000 231,000
6.80% 10/1/08 A 210,000 235,200
6.80% 10/1/09 A 185,000 206,505
West Haven Impt. Unltd. Tax 6.70% 2/15/04
(MBIA Insured) Aaa 710,000 783,662
Winchester Gen. Oblig. Unltd. Tax:
7.10% 11/15/06 A1 125,000 140,780
7.10% 11/15/08 A1 110,000 125,262
Wolcott Gen. Oblig. Unltd. Tax :
7% 6/15/09 (FGIC Insured) Aaa 445,000 493,949
7% 6/15/10 (FGIC Insured) Aaa 440,000 491,149
Woodstock Spl. Oblig. Rev. (Woodstock Academy)
7% 3/1/08 (AMBAC Insured) Aaa 725,000 788,437
315,627,456
PUERTO RICO - 2.7%
Puerto Rico Commonwealth Gen. Oblig. Unltd. Tax
6.40% 7/1/11 Baa1 1,500,000 1,558,124
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. Rfdg. Series V, 6.625% 7/1/12 Baa1 1,750,000 1,844,063
Puerto Rico Elec. Pwr. Auth. Rev.:
Rfdg. Series W, 7% 7/1/07 (MBIA Insured) Aaa 2,000,000 2,270,000
7% 7/1/07 (MBIA Insured) Aaa 2,000,000 2,270,000
Puerto Rico Indl., Med. & Envir. Poll. Cont.
Facs. Fing. Auth. Rev. (Motorola, Inc.)
Series A, 6.75% 1/1/14 Aa3 1,285,000 1,358,888
9,301,075
TOTAL MUNICIPAL BONDS
(Cost $317,658,505) 324,928,531
MUNICIPAL NOTES (A) - 3.9%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CONNECTICUT - 3.2%
Connecticut Dev. Auth. (Light & Pwr. Co. Proj.)
Series 1993 A, 3.65%,
LOC Deutsche Bank, VRDN VMIG 1 $ 5,600,000 $ 5,600,000
Connecticut Dev. Auth. Health Care Rev.
(Corp. for Independent Living Proj.) Series 1990,
5.35%, LOC Chemical Bank, VRDN VMIG 1 1,600,000 1,600,000
Connecticut Economic Recovery Notes Gen. Oblig.
Unltd. 4.25% 12/15/96 Aaa 1,000,000 1,003,760
Connecticut Health & Ed. Facs. Auth. Rev.
(Kent School) Series B, 3.70% 7/1/96
(MBIA Insured) Aaa 200,000 199,960
Connecticut Hsg. Fin. Auth. (Hsg. Mtg. Fin. Prog.)
Series 1995 G, 3.55% (AMBAC Insured)
(BPA Morgan Guaranty Trust Co.) VRDN VMIG 1 1,265,000 1,265,000
Connecticut Spl. Tax Oblig. Rev. (2nd Lien)
(Trans. Infrastructure Purpose) Series 1, 3.60%,
LOC Commerzbank, VRDN VMIG 1 1,000,000 1,000,000
10,668,720
PUERTO RICO - 0.7%
Puerto Rico Gov't. Dev. Bank, CP:
3.60% 6/11/96 A-1+ 1,300,000 1,300,051
3.60% 7/17/96 A-1+ 500,000 500,094
Puerto Rico Commonwealth Highway & Trans. Rev.
Participating VRDN, Series PA-114, 3%
(Liquidity Facility Merrill Lynch & Co.) (g) A-1+ 600,000 600,000
2,400,145
TOTAL MUNICIPAL NOTES
(Cost $13,068,865) 13,068,865
TOTAL INVESTMENTS - 100%
(Cost $330,727,370) $ 337,997,396
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
140 Municipal Bond Contracts June 1996 $ 15,649,375 $ 190,293
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.6%

SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(d) A portion of the Security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $3,374,300.
(e) Security collateralized by an amount sufficient to pay interest and
principal.
(f) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(g) Provides evidence of ownership in one or more underlying municipal
bonds.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 77.6% AAA, AA, A 78.6%
Baa 8.2% BBB 7.9%
Ba 0.0% BB 2.3%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.5%. FMR has
determined that unrated debt securities that are lower quality account for
0.5% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 32.3%
Health Care 11.9
Education 11.6
Special Tax 9.7
Housing 9.3
Electric Revenue 7.4
Water & Sewer 5.1
Industrial Development 5.0
Others
(individually less than 5%) 7.7
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1996, the aggregate cost of investment securities for income tax
purposes was $330,730,334. Net unrealized appreciation aggregated
$7,267,062 of which $12,288,180 related to appreciated investment
securities and $5,021,118 related to depreciated investment securities.
At November 30, 1995, the fund was required to defer $2,575,125 of losses
on futures contracts.
At November 30, 1995, the fund had a capital loss carryforward of
approximately $2,544,000 all of which will expire on November 30, 2003.
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value (cost $330,727,370) 5. $ 337,997,396
- - See accompanying schedule

6.Interest receivable 7. 5,061,327

8.Receivable for daily variation on futures contracts 9. 161,875

10. 11.TOTAL ASSETS 12. 343,220,598

13.LIABILITIES 14. 15.

16.Payable to custodian bank $ 71,680 17.

18.Payable for investments purchased 11,182,310 19.
Delayed delivery

20.Payable for fund shares redeemed 263,975 21.

22.Distributions payable 359,270 23.

24.Accrued management fee 154,597 25.

26. 27.TOTAL LIABILITIES 28. 12,031,832

29.30.NET ASSETS 31. $ 331,188,766

32.Net Assets consist of: 33. 34.

35.Paid in capital 36. $ 326,079,967

37.Accumulated undistributed net realized gain (loss) on 38. (2,351,520)
investments

39.Net unrealized appreciation (depreciation) on 40. 7,460,319
investments

41.42.NET ASSETS, for 30,518,501 shares outstanding 43. $ 331,188,766

44.45.NET ASSET VALUE, offering price and redemption 46. $10.85
price per share ($331,188,766 (divided by) 30,518,501 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

47.48.INTEREST INCOME 49. $ 9,853,403

50.EXPENSES 51. 52.

53.Management fee $ 953,466 54.

55.Non-interested trustees' compensation 596 56.

57. Total expenses before reductions 954,062 58.

59. Expense reductions (66,383) 887,679

60.61.NET INTEREST INCOME 62. 8,965,724

63.REALIZED AND UNREALIZED GAIN (LOSS) 65. 66.
64.Net realized gain (loss) on:

67. Investment securities 1,901,719 68.

69. Futures contracts 310,695 2,212,414

70.Change in net unrealized appreciation (depreciation) 71. 72.
on:

73. Investment securities (13,691,552) 74.

75. Futures contracts 751,349 (12,940,203)

76.77.NET GAIN (LOSS) 78. (10,727,789)

79.80.NET INCREASE (DECREASE) IN NET ASSETS 81. $ (1,762,065)
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995

82.INCREASE (DECREASE) IN NET ASSETS

83.Operations $ 8,965,724 $ 19,553,566
Net interest income

84. Net realized gain (loss) 2,212,414 (1,590,927)

85. Change in net unrealized appreciation (depreciation) (12,940,203) 41,663,100

86. 87.NET INCREASE (DECREASE) IN NET ASSETS (1,762,065) 59,625,739
RESULTING FROM OPERATIONS

88.Distributions to shareholders (8,965,724) (19,553,566)
From net interest income

89. From net realized gain - (699,611)

90. In excess of net realized gain - (243,807)

91. 92.TOTAL DISTRIBUTIONS (8,965,724) (20,496,984)

93.Share transactions 20,131,555 49,373,918
Net proceeds from sales of shares

94. Reinvestment of distributions 6,956,076 16,090,044

95. Cost of shares redeemed (44,030,398) (61,340,934)

96. Redemption fees 10,380 14,848

97.98. (16,932,387) 4,137,876
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS

99. 100.TOTAL INCREASE (DECREASE) IN NET ASSETS (27,660,176) 43,266,631

101.NET ASSETS 102. 103.

104. Beginning of period 358,848,942 315,582,311

105. End of period $ 331,188,766 $ 358,848,942

106.OTHER INFORMATION 108. 109.
107.Shares

110. Sold 1,812,194 4,630,644

111. Issued in reinvestment of distributions 627,842 1,496,456

112. Redeemed (3,964,211) (5,779,595)

113. Net increase (decrease) (1,524,175) 347,505

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1996

(UNAUDITED) 1995 1994E 1993 1992 1991

114.SELECTED PER-SHARE DATA

115.Net asset value, beginning of period $ 11.200 $ 9.960 $ 11.840 $ 11.220 $ 10.880 $ 10.730

116.Income from Investment Operations .286 .617 .640 .680 .689 .684
Net interest income

117. Net realized and unrealized gain
(loss) (.350) 1.270 (1.472) .619 .338 .188

118. Total from investment operations (.064) 1.887 (.832) 1.299 1.027 .872

119.Less Distributions (.286) (.617) (.640) (.680) (.689) (.684)
From net interest income

120. From net realized gain - (.020) (.410) - - (.040)

121. In excess of net realized gain - (.010) - - - -

122. Total distributions (.286) (.647) (1.050) (.680) (.689) (.724)

123.Redemption fees added to paid in
capital .000 .000 .002 .001 .002 .002

124.Net asset value, end of period $ 10.850 $ 11.200 $ 9.960 $ 11.840 $ 11.220 $ 10.880

125.TOTAL RETURN B (.60)% 19.41 (7.61) 11.81 9.72 8.43%
% % % %

126.RATIOS AND SUPPLEMENTAL DATA

127.Net assets, end of period (000
omitted) $ 331,189 $ 358,849 $ 315,582 $ 450,113 $ 413,748 $ 346,781

128.Ratio of expenses to average net
assets .55%A .55 .55% .55 .55 .55%
% % % C

129.Ratio of expenses to average net
assets after expense reductions .51%A, .55 .55% .55 .55 .55%
D % % %

130.Ratio of net interest income to
average net assets 5.17%A 5.73 5.83% 5.81 6.21 6.34%
% % %

131.Portfolio turnover rate 32%A 39 11% 45 11 6%
% % %

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
E EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."

AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.

FINANCIAL HIGHLIGHTS

SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee on an average sized account.
Yield measures the income paid by a fund. Since a money market fund tries
to maintain a $1 share price, yield is an important measure of performance.
If Fidelity had not reimbursed certain fund expenses during the periods
shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan Connecticut Municipal 1.56% 3.23% 15.49% 16.53%
Money Market Fund

Connecticut Tax-Free 1.43% 2.97% 13.40% n/a
Money Market Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on March 4, 1991. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the Connecticut tax-free money
market funds average, which reflects the performance of 11 Connecticut
tax-free money market funds with similar objectives tracked by IBC
Financial Data, Inc. over the past year. (The periods covered by IBC
Financial Data Inc. numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Connecticut Municipal 3.23% 2.92% 2.96%
Money Market Fund

Connecticut Tax-Free 2.97% 2.54% n/a
Money Market Funds Average

Spartan Connecticut 3.64% 3.22% 3.32% 2.94% 3.19%
Municipal
Money Market Fund

Connecticut Tax-Free 3.37% 3.01% 3.09% 2.67% 2.91%
Money Market Funds
Average

Spartan Connecticut 5.92% 5.24% 5.38% 4.77% 5.19%
Municipal
Money Market Fund -
Tax-equivalent

Portion of fund's income 11.16% 9.50% 19.03% 18.12% 13.63%
subject to state taxes

YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the Connecticut tax-free money market funds average
as tracked by IBC Financial Data, Inc. Or you can look at the fund's
tax-equivalent yield, which is based on a combined effective 1996 federal
and state income tax rate of 38.88% and reflects that a portion of the
fund's income was subject to state taxes. A portion of the fund's income
may be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. Government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
(checkmark)
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jeff Parker,
Portfolio Manager of Spartan Connecticut Municipal Money Market Fund
Q. JEFF, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PAST SIX MONTHS?
A. When the period began, the Federal Reserve was in an easing mode, having
lowered the federal funds rate - the rate banks charge each other for
overnight loans - the previous July. With inflation under control, Congress
and the White House apparently making progress toward a balanced budget
agreement, and the economy losing steam, many market participants believed
it was only a matter of time before the Fed cut interest rates again. It
therefore came as no surprise when the Fed lowered the federal funds rate
one-quarter percentage point in early December, and lowered it again by an
equal amount on the last day of January 1996.
Q. WHAT HAS CHANGED SINCE THEN?
A. When Fed Chairman Alan Greenspan, testifying before Congress in
mid-February, seemed to suggest that the economy was basically sound, the
consensus shifted and rates backed up. Then came the infamous February
employment report, which was significantly stronger than most analysts had
predicted. Since then, a string of positive indicators has left little
doubt in most analysts' minds that, for the time being, the economy is in
no need of further stimulus.
Q. HOW DID YOU RESPOND TO CHANGING CONDITIONS?
A. The fund began the period with an average maturity of 62 days. In a
declining-rate environment, it usually makes sense to lock in attractive
rates for as long as possible by extending the fund's average maturity. As
evidence mounted that the economy was not as weak as we had thought, I
sought greater flexibility by reducing the fund's average maturity. By the
time the February employment report was released in early March, the fund's
average maturity was 42 days. Since then, I've held the average maturity
relatively stable, ending the period at 47 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1996 was 3.18%, compared to 3.31%
on November 30, 1995. The latest yield was the equivalent of a taxable
yield of 5.17% for Connecticut investors in the 38.88% combined federal and
state tax bracket. The fund's total return during the six-month period was
1.56%. That beat the total return of 1.43% for the Connecticut tax-free
money market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S THE OUTLOOK?
A. Given recent contradictory economic signals, I think it's likely the Fed
will stand pat for a while. Certainly no one expects the Fed to lower rates
again anytime soon. On the other hand, there have been ominous signs of
growing inflationary pressures in recent months. And if we continue to see
evidence of strong economic performance in key indicators such as
employment, housing and consumer spending, it's possible that the Fed will
choose to raise rates, perhaps sometime during the third quarter. Given the
lack of a solid direction, I'll probably aim to keep the fund's average
maturity about where it is right now - between 40 and 50 days. That gives
me maximum flexibility to adapt to changing conditions and take advantage
of buying opportunities as they arise.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income and stability by
investing mainly in high-quality,
short-term Connecticut
municipal money market
securities
START DATE: March 4, 1991
SIZE: as of May 31, 1996,
more than $183 million
MANAGER: Jeff Parker, since
June, 1995; manager, Fidelity
Connecticut Municipal Money
Market, Fidelity Michigan
Municipal Money Market,
Fidelity New Jersey Municipal
Money Market, and Spartan
New Jersey Municipal Money
Market, since June 1995;
joined Fidelity in 1991
(checkmark)

SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/96 11/30/95 5/31/95

0 - 30 59 65 61

31 - 90 28 11 26

91 - 180 8 3 12

181 - 397 5 21 1

WEIGHTED AVERAGE MATURITY
5/31/96 11/30/95 5/31/95

Spartan Connecticut
Municipal Money Market
Fund 47 days 62 days 30 days

Connecticut Tax-Free
Money Market Funds
Average * 27 days 58 days 38 days

ASSET ALLOCATION
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995

Row: 1, Col: 1, Value: 54.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 15.0
Row: 1, Col: 4, Value: 7.0
Row: 1, Col: 5, Value: 10.0
Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 22.0
Row: 1, Col: 3, Value: 16.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 5, Value: 5.0
Variable rate
demand notes
(VRDNs) 54%
Commercial
paper 14%
Tender bonds 15%
Municipal
notes 7%
Other 10%
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 22%
Tender bonds 16%
Municipal
notes 4%
Other 5%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS MAY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 74.2%
Bethel BAN 4.25% 7/12/96 $ 600,000 $ 600,324
Clipper Participating VRDN, Series 94-1,
3.60% (Liquidity Facility State Street Bank & Trust Co.) (c) 4,934,800
4,934,800
Connecticut Dev. Auth. Health Care Rev.
(Corp. for Independent Living Proj.) Series 1990,
3.55%, LOC Chemical Bank, VRDN 8,700,000 8,700,000
Connecticut Dev. Auth. Ind. Dev. Rev.
(W.E. Bassett Co. Proj.) Series 1986, 3.85%,
LOC Bank of Boston, VRDN (b) 1,000,000 1,000,000
Connecticut Dev. Auth. Poll. Cont. Rev. (Light & Pwr. Co. Proj.)
VRDN (b):
Series 1993 B, 3.65%, LOC Union Bank of Switzerland 8,000,000
8,000,000
Series 1996 A, 3.65%,
LOC Canadian Bank Imperial Bank 5,200,000 5,200,000
Connecticut Dev. Auth. Solid Waste Disp. Fac. Rev.
(Rand-Whitney Containerboard) 3.35%,
LOC Chase Manhattan Bank, VRDN (b) 3,300,000 3,300,000
Connecticut Dev. Auth. Wtr. Facs. Rev.
(Bridgeport Hydraulic Co.) Series 1995, 3.25%,
LOC Society Generale, VRDN 4,600,000 4,600,000
Connecticut Econ. Gen. Oblig. Bonds 4.25% 12/15/96 2,535,000 2,543,475
Connecticut Econ. Recovery Notes
Series A, 5.50% 6/15/96 600,000 600,494
Connecticut Gen. Oblig.:
Bonds:
6.50% 8/1/96 1,000,000 1,004,749
Series 1990 C, 6.50% 9/15/96 500,000 504,135
Series 1995 B, 4.50% 10/1/96 2,000,000 2,004,193
Series 1996 A, 4% 5/15/97 2,000,000 2,007,400
Participating VRDN (c):
Series BT-103, 3.70% (Liquidity Facility Bankers Trust Co.) 1,600,000
1,600,000
Series MGT-27, 3.60% (Liquidity Facility Morgan
Guaranty Trust Co.) 775,000 775,000
Connecticut Health & Ed. Facs. Auth. Rev.:
Bonds:
(Connecticut Univ. Sys. Issue) Series A
4.50% 11/1/96 (MBIA Insured) 1,000,000 1,003,247
(Yale Univ.):
Series L, 3.60%, tender 7/23/96 1,800,000 1,800,000
Series O, 3.60%, tender 7/24/96 3,200,000 3,200,000
Series M, 3.60%, tender 7/25/96 6,000,000 6,000,000
Series N, 3.60%, tender 7/25/96 1,000,000 1,000,000
Series N, 3.50%, tender 8/14/96 3,100,000 3,100,000
(Charlotte Hungerford Hosp.) Series B,
3.40%, LOC Bank of Boston, VRDN 3,000,000 3,000,000
Connecticut Hsg. & Fin. Auth. Bonds (Hsg. Mtg. Fin. Prog.):
Series 1989 D:
3.80%, tender 7/23/96 (b) 800,000 800,000
3.80%, tender 7/24/96 (b) 1,800,000 1,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Hsg. & Fin. Auth. Bonds (Hsg. Mtg. Fin. Prog.) - continued
Series 1990 C, 4.15%, tender 7/23/96 (b) $ 1,600,000 $ 1,600,000
Series 1993 E-1, 3.75%, tender 6/10/96 3,200,000 3,200,000
Series 1993 E-2, 3.85%, tender 6/10/96 (b) 3,440,000 3,440,000
Series 1996 A-3, 3.60%, tender 4/10/97 2,000,000 2,000,000
Series 1996 A-4, 3.65%, tender 4/10/97 (b) 3,500,000 3,500,000
Connecticut Muni. Elec. Energy Coop. Pwr. Supply Sys. Rev. Bonds
Series 1995 A, 3.35%, tender 6/18/96,
LOC Fleet Bank, NA 1,400,000 1,400,000
Connecticut Regional School Dist. #10 BAN 4% 9/30/96 1,300,000 1,301,892
Connecticut Resource Recovery Auth. Bonds (Mid-Conn Sys.)
Series A, 5.10% 11/15/96 1,000,000 1,007,540
Connecticut Second Lien Spl. Tax Oblig. Bonds
(Transport Infrastructure Purpose) Series 1, 3.60%,
LOC Commerzbank, VRDN 16,380,000 16,380,000
Connecticut Spl. Assessment Unemployment Compensation
Rev. Bonds Series A:
4.10% 5/15/97 (AMBAC Insured) 1,300,000 1,305,035
4.20% 5/15/97 700,000 702,572
Connecticut Spl. Assessment Unemployment Rev. Bonds:
Series 1993 C, 3.85%, tender 7/1/96 (FGIC Insured)
(Liquidity Facility FGIC Security Purchase Inc.) 14,600,000 14,600,000
East Haven BAN 4.25% 9/4/96 500,000 500,566
Hartford Gen. Oblig. Bond 6.75% 10/1/96 (FGIC Insured) 400,000 403,652
Hartford Redev. Auth. (Underwood Towers Proj.) (FSA Insured)
(BPA Barclays Bank) 3.75%, VRDN 1,100,000 1,100,000
New Haven BAN 4.25% 8/22/96, LOC State Street Bank
& Trust Co. 3,500,000 3,503,408
New Haven Gen. Oblig. Bonds Rfdg.
Series A, 4.50% 8/1/96 1,000,000 1,000,967
New Milford BAN 3.77% 8/16/96 1,000,000 1,000,039
Seymour BAN 4% 10/16/96 1,600,000 1,602,926
Shelton BAN 3.32% 6/4/96 600,000 600,000
Stamford Hsg. Auth. Mutimodal Rev. (Morgan St. Proj.)
Series 1994, 3.60%, LOC Deutsche Bank, VRDN (b) 2,500,000 2,500,000
Winchester BAN 3.875% 8/2/96 500,000 500,399
Windham BAN 3.50% 12/17/96 3,700,000 3,703,110
135,929,923
ILLINOIS - 0.6%
Southwestern Illinois Dev. Auth. Solid Waste Disp. Rev.
(Shell Oil Co.-Wood River Proj.) Series 1992,
4%, VRDN (b) 1,100,000 1,100,000
LOUISIANA - 2.4%
Calcasieu Parish Ind. Dev. Board Env. Rev. (Citgo Petroleum Corp.)
4.15%, LOC Banque Nationale de Paris, VRDN (b) 700,000 700,000
Plaquemines Parish Envir. Rev. Rfdg.
(BP Exploration & Oil, Inc.) VRDN (b):
Series 1995, 4.10% 2,900,000 2,900,000
Series 1994, 4.10% 800,000 800,000
4,400,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 12.6%
Puerto Rico Commonwealth Highway & Trans. Auth.
Highway Rev. Participating VRDN, Series PA-114,
3.45% (Liquidity Facility Merrill Lynch & Co., Inc) (c) $ 4,235,000 $
4,235,000
Puerto Rico Commonwealth Pub. Impt. Participating VRDN (c):
Series BT-165, 3.60% (Liquidity Facility Bankers Trust Co.) 2,142,000
2,142,000
Series PA-97, 3.45% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) 2,145,000 2,145,000
Series PT-63, 3.45% (Liquidity Facility Bayerische
Hypotheken) (c) 1,155,000 1,155,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg. Bonds
Series W, 4.25% 7/1/96 4,365,000 4,366,198
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
Series BT-105, 3.375%
(Liquidity Facility Bankers Trust Co.) (c) 3,978,000 3,978,000
Puerto Rico Govt. Dev. Bank 3.60% 7/17/96, CP 5,000,000 5,000,000
23,021,198
SOUTH CAROLINA - 0.6%
South Carolina Jobs Econ. Dev. Auth. Rev. (Wellman Inc. Proj.)
VRDN (b):
Series 1990, 3.95%, LOC Wachovia Bank 800,000 800,000
Series 1992, 3.95%, LOC Wachovia Bank 300,000 300,000
1,100,000
TEXAS - 9.6%
Brazos River Harbor Navigation Dist. of Brazoria County Rev.
(Dow Chemical Co. Proj.) Series 1993, 4.15%, VRDN (b) 6,300,000
6,300,000
Brazos River Harbor Navigation Dist. Rev.
(Dow Chemical Co. Proj.) Series 1996, 4.15% VRDN (b) 2,200,000 2,200,000
Gulf Coast Ind. Dev. Auth. Solid Waste Disp. Rev.
(Citgo Petroleum) 4.15%, LOC Wachovia Bank, VRDN (b) 5,400,000 5,400,000
Trinity River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.)
Series 1996 A, 4% (AMBAC Insured)
(BPA Bank of New York, NA) VRDN (b) 500,000 500,000
West Side Calhoun County Naval Dist. Sewage Solid Waste
Disposal Rev. (BP Chemicals Inc. Proj.) Series 1996,
4.10%, VRDN (b) 3,200,000 3,200,000
17,600,000
TOTAL INVESTMENTS - 100% $ 183,151,121
Total Cost for Income Tax Purposes $ 183,151,159

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a)The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b)Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c)Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1995, the fund had a capital loss carryforward of
approximately $13,000 of which $3,000 and $10,000 will expire on November
30, 2001 and 2002, respectively.
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

132.ASSETS 133. 134.

135.Investment in securities, at value - See 136. $ 183,151,121
accompanying schedule

137.Cash 138. 67,800

139.Receivable for investments sold 140. 503,219

141.Interest receivable 142. 1,384,023

143. 144.TOTAL ASSETS 145. 185,106,163

146.LIABILITIES 147. 148.

149.Payable for investments purchased $ 511,177 150.

151.Share transactions in process 1,356,248 152.

153.Distributions payable 16,359 154.

155.Accrued management fee 78,057 156.

157. 158.TOTAL LIABILITIES 159. 1,961,841

160.161.NET ASSETS 162. $ 183,144,322

163.Net Assets consist of: 164. 165.

166.Paid in capital 167. $ 183,157,720

168.Accumulated net realized gain (loss) on 169. (13,398)
investments

170.171.NET ASSETS, for 183,157,720 shares 172. $ 183,144,322
outstanding

173.174.NET ASSET VALUE, offering price and 175. $1.00
redemption price per share ($183,144,322 (divided by)
183,157,720 shares)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

176.177.INTEREST INCOME 178. $ 3,248,721

179.EXPENSES 180. 181.

182.Management fee $ 451,395 183.

184.Non-interested trustees' compensation 319 185.

186. Total expenses before reductions 451,714 187.

188. Expense reductions (7,076) 444,638

189.190.NET INTEREST INCOME 191. 2,804,083

192.193.NET REALIZED GAIN (LOSS) ON INVESTMENTS 194. 35

195.196.NET INCREASE IN NET ASSETS RESULTING FROM 197. $ 2,804,118
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995

198.INCREASE (DECREASE) IN NET ASSETS

199.Operations $ 2,804,083 $ 5,464,560
Net interest income

200. Net realized gain (loss) 35 4,063

201. Increase (decrease) in net unrealized gain from - (416)
accretion of market discount

202. 2,804,118 5,468,207
203.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

204.Distributions to shareholders from net interest (2,804,083) (5,464,560)
income

205.Share transactions at net asset value of $1.00 per 125,921,909 190,588,598
share
Proceeds from sales of shares

206. Reinvestment of distributions from net interest 2,699,895 5,248,200
income

207. Cost of shares redeemed (121,099,883) (187,273,625)

208.209. 7,521,921 8,563,173
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS

210. 7,521,956 8,566,820
211.TOTAL INCREASE (DECREASE) IN NET ASSETS

212.NET ASSETS 213. 214.

215. Beginning of period 175,622,366 167,055,546

216. End of period $ 183,144,322 $ 175,622,366

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30, MARCH 4, 1991
ENDED (COMMENCEME
MAY 31, 1996 NT
OF OPERATIONS) T
O
NOVEMBER 30,

(UNAUDITED) 1995 1994 1993 1992 1991

217.SELECTED PER-SHARE
DATA 219.
218.

220.Net asset
value,
beginning
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

221.Income
from
Investment
Operations .015 .034 .023 .022 .030 .029
Net interest income

222.Less
Distributions (.015) (.034) (.023) (.022) (.030) (.029)
From net interest income

223.Net asset
value, end
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

224.TOTAL
RETURN B 1.56% 3.41% 2.28% 2.21% 3.08% 2.97%

225.RATIOS AND SUPPLEMENTAL DATA

229.Net assets,
end of
period
(000 omitted) $ 183,144 $ 175,622 $ 167,056 $ 163,102 $ 86,672 $ 22,247

230.Ratio of
expenses to
average net
assets .50%A .50% .50% .24%C .02%C .00%C

231.Ratio of
expenses to
average net
assets after .49%A , .50% .50% .50% .50% .50%A
expense
reductions D

232.Ratio of
net interest
income to
average 3.10%A 3.36% 2.25% 2.17% 2.90% 4.05%A
net assets

</TABLE>

FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Connecticut Municipal Income Fund (the income fund ) is a fund of
Fidelity Court Street Trust. Spartan Connecticut Municipal Money Market
Fund (the money market fund) is a fund of Fidelity Court Street Trust II.
Each trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Court Street Trust and Fidelity Court Street Trust II (the trusts)
are organized as a Massachusetts business trust and a Delaware business
trust, respectively. Each fund is authorized to issue an unlimited number
of shares. The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to make
certain estimates and assumptions at the date of the financial statements.
The following summarizes the significant accounting policies of the income
fund and the money market fund:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix system
and/or appraisals by a pricing service, both of which consider market
transactions and dealer-supplied valuations. Short-term securities maturing
within sixty days of their purchase date are valued either at amortized
cost or original cost plus accrued interest, both of which approximate
current value. Securities for which quotations are not readily available
through the pricing service are valued at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
These differences, which may result in distribution reclassifications, are
primarily due to differing treatments for futures and options transactions,
capital loss carryforwards and losses deferred due to wash sales, futures
and options and excise tax regulations.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. Each fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
FUTURES CONTRACTS AND OPTIONS. The income fund may use futures and options
contracts to manage its exposure to the bond market and to fluctuations in
interest rates. Buying futures, writing puts, and buying calls tend to
increase the fund's exposure to the underlying instrument. Selling futures,
buying puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value of any open futures contracts at period
end, is shown in the schedule of investments under the caption "Futures
Contracts." This amount reflects each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $53,249,168 and $60,224,379, respectively. The
market value of futures contracts opened and closed during the period
amounted to $57,145,087 and $61,321,949, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% and .50% of average net assets
for the income and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$1,965 and $1,432 for the income and money market funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
or the funds' distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of each fund's shares. Subject to
the approval of each Board of Trustees, the Plans also authorize payments
to third parties that assist in the sale of each fund's shares or render
shareholder support services. FMR or FDC has informed the funds that
payments made to third parties under the Plans amounted to $257 for the
income fund and no payments were made for the money market fund for the
period.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of each fund with the funds'
custodian and transfer agent whereby interest earned on uninvested cash
balances was used to offset a portion of each fund's expenses. During the
period, the each fund' s expenses were reduced by $66,383 and $7,706 for
the income and money market funds, respectively, under these arrangements.

TO CALL FIDELITY

(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
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Just make a selection from this record-ed menu:
PRESS
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1.
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2.
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requested Fidelity fund quotes.
3.
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4.
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5.
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representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
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ed menu:
PRESS
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1.
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2.
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3.
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4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER,
MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President, MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant
Treasurer, MONEY MARKET FUND
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
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Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

FIDELITY

(registered trademark)
NEW JERSEY
MUNICIPAL
MONEY MARKET
FUND
(FORMERLY FIDELITY NEW JERSEY TAX-FREE
MONEY MARKET PORTFOLIO)
SEMIANNUAL REPORT
MAY 31, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 19 Notes to the financial statements.

Fidelity New Jersey Municipal 1.48% 3.11% 14.51% 36.75%
Money Market Fund

New Jersey Tax-Free Money Market 1.45% 3.04% 14.62% n/a
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on March 17, 1988. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the New Jersey tax-free money
market funds average, which reflects the performance of 10 New Jersey
tax-free money market funds with similar objectives tracked by IBC
Financial Data, Inc. over the past six months. (The periods covered by IBC
Financial Data, Inc. numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity New Jersey Municipal 3.11% 2.75% 3.88%
Money Market Fund

New Jersey Tax-Free Money Market 3.04% 2.76% n/a
Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
5/29/95 8/28/95 11/27/95 2/26/96 5/27/96

Fidelity New Jersey Municipa 3.53% 3.18% 3.17% 2.73% 3.10%
l
Money Market Fund

New Jersey Tax-Free 3.48% 3.06% 3.16% 2.68% 3.03%
Money Market Funds
Average

Fidelity New Jersey Municip 5.89% 5.31% 5.29% 4.56% 5.17%
al
Money Market Fund -
Tax-equivalent

</TABLE>
Row: 1, Col: 1, Value: 3.53
Row: 1, Col: 2, Value: 3.48
Row: 2, Col: 1, Value: 3.18
Row: 2, Col: 2, Value: 3.06
Row: 3, Col: 1, Value: 3.17
Row: 3, Col: 2, Value: 3.16
Row: 4, Col: 1, Value: 2.73
Row: 4, Col: 2, Value: 2.68
Row: 5, Col: 1, Value: 3.1
Row: 5, Col: 2, Value: 3.03
Fidelity New Jersey
Municipal Money
Market Fund
New Jersey Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the New Jersey tax-free money market funds average.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1996 federal and state income tax rate of 40.08%.
Figures for the New Jersey tax-free money market funds average are from IBC
Financial Data, Inc.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
Government neither insures
nor guarantees a money
market fund. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jeff Parker,
Portfolio Manager of Fidelity New Jersey Municipal Money Market Fund
Q. JEFF, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PAST SIX MONTHS?
A. When the period began, the Federal Reserve was in an easing mode, having
lowered the federal funds rate - the rate banks charge each other for
overnight loans - the previous July. With inflation under control, Congress
and the White House apparently making progress toward a balanced budget
agreement, and the economy losing steam, many market participants believed
it was only a matter of time before the Fed cut interest rates again. It
therefore came as no surprise when the Fed lowered the federal funds rate
one-quarter percentage point in early December, and lowered it again by an
equal amount on the last day of January 1996.
Q. WHAT HAS CHANGED SINCE THEN?
A. When Fed Chairman Alan Greenspan, testifying before Congress in
mid-February, seemed to suggest that the economy was basically sound, the
consensus shifted and rates began to climb. Then came the infamous February
employment report, which was significantly stronger than most analysts had
predicted. Since then, a string of positive indicators has left little
doubt in most analysts' minds that, for the time being, the economy is in
no need of further stimulus.
Q. HOW DID YOU RESPOND TO CHANGING CONDITIONS?
A. The fund began the period with an average maturity of 70 days. In a
declining-rate environment, it usually makes sense to try to lock in
attractive rates for as long as possible by extending the fund's average
maturity. As evidence mounted that the economy was not as weak as we had
thought, I sought greater flexibility by reducing the fund's average
maturity. By the time the February employment report was released in early
March, the fund's average maturity was 66 days. Since then, I've gradually
rolled down, ending the period at 50 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1996 was 3.06%, compared to 3.14%
on November 30, 1995. The latest yield was the equivalent of a taxable
yield of 5.11% for New Jersey investors in the 40.08% combined federal and
state tax bracket. The fund's total return during the six-month period was
1.48%. That beat the total return of 1.45% for the New Jersey tax-free
money market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S THE OUTLOOK?
A. Given recent contradictory economic signals, I think it's likely the Fed
may just stand pat for a while. Certainly no one expects the Fed to lower
rates again anytime soon. On the other hand, there have been ominous signs
of growing inflationary pressures in recent months. And if we continue to
see evidence of strong economic performance in key indicators such as
employment, housing and consumer spending, it's possible that the Fed will
choose to raise rates, perhaps sometime during the third quarter. Given the
lack of a solid direction, I'll probably aim to keep the fund's average
maturity about where it is right now - between 45 and 55 days. That gives
me maximum flexibility to adapt to changing conditions and take advantage
of buying opportunities as they arise.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: tax-free income &
stability by investing in
high-quality, short-term New
Jersey municipal money
market securities
START DATE: March 17, 1988
SIZE: as of May 31,1996,
more than $428 million
MANAGER: Jeff Parker, since
June, 1995; also manager,
Fidelity Connecticut Municipal
Money Market, Fidelity
Michigan Municipal Money
Market, Spartan Connecticut
Municipal Money Market, and
Spartan New Jersey Municipal
Money Market since June
1995; joined Fidelity in 1991
(checkmark)

NEW INVESTMENT POLICY:

The fund is now permitted to
invest in any amount of
municipal securities that may
be considered taxable under
the alternative minimum tax
(AMT). Previously, the fund
was limited to 20%. The AMT
is an alternative method for
calculating federal income tax
liabilities and is generally
limited to individuals in high
income tax brackets. The
portfolio manager is now able
to focus on all marketplace
opportunities - including
areas dominated by AMT
securities such as student
loans and airports. This policy
change will in no way affect
the tax-exempt status of
income from the fund for
shareholders not subject to
the AMT. Investors subject to
the AMT or who are unsure
should consult a tax advisor.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/96 11/30/95 5/31/95

0 - 30 72 63 62

31 - 90 9 11 21

91 - 180 8 8 8

181 - 397 11 18 9

WEIGHTED AVERAGE MATURITY
5/31/96 11/30/95 5/31/95

Fidelity New Jersey
Municipal Money Market
Fund 50 days 70 days 56 days

New Jersey Tax-Free
Money Market Funds
Average* 53 days 60 days 48 days

ASSET ALLOCATION
AS OF MAY 31, 1996 AS OF NOVEMBER 30, 1995

Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 34.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 30.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 51%
Commercial
paper 13%
Tender bonds 1%
Municipal
notes 34%
Other 1%
Variable rate
demand notes
(VRDNs) 56%
Commercial
paper 12%
Tender bonds 1%
Municipal
notes 30%
Other 1%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 85.5%
Allentown BAN 4.50% 1/15/97 $ 650,000 $ 651,959
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
3.40%, LOC Midland Bank PLC, VRDN 2,900,000 2,900,000
Atlantic Highland BAN 3.90% 6/27/96 800,000 800,055
Bergen County BAN 3.41% 7/8/96 6,000,000 6,000,229
Bloomfield Township BAN 3.81% 6/7/96 2,000,000 2,000,006
Bloomingdale BAN 3.60% 3/14/97 742,000 742,279
Brick Township Board of Ed. BAN 4.25% 8/1/96 1,800,000 1,801,598
Burlington County BAN 4% 11/27/96 2,900,000 2,904,776
Burlington County Gen. Oblig. Bond 4.875% 11/15/96 500,000 502,712
Caldwell BAN 4.25% 6/7/96 1,573,350 1,573,486
Camden County BAN 3.43% 2/11/97 1,215,374 1,216,284
Camden County Impt. Auth. Rev.
(Jewish Commty. Center Proj.) Series 1995, 3.65%,
LOC Nat'l Westminster Bank, VRDN 2,300,000 2,300,000
Chester Township BAN 3.64% 8/15/96 827,000 827,064
Clifton Board of Ed. BAN 4.25% 7/12/96 2,500,000 2,501,349
Cresskill BAN 3.78% 1/3/97 1,000,000 1,000,457
Delaware River Port Auth. Participating VRDN,
Series SG-53, 3.60%
(Liquidity Facility Societe Generale) (c) 9,000,000 9,000,000
Denville Board of Ed. BAN 3.50% 2/19/97 2,250,000 2,255,480
Denville Township BAN 4% 12/27/96 4,000,000 4,011,676
East Brunswick BAN 4% 1/3/97 1,500,000 1,503,931
Englewood BAN 3.78% 7/18/96 3,359,400 3,359,521
Essex County Gen. Oblig. Bonds 4.875% 11/15/96
(AMBAC Insured) 500,000 502,939
Essex County Impt. Auth. Rev. Series 1995, 3.40%
(AMBAC Insured)
(BPA Morgan Guaranty Trust Co.) VRDN 9,500,000 9,500,000
Essex County TAN 4.00% 8/19/96, LOC Chemical Bank 4,800,000 4,806,818
Essex Fells BAN 4% 12/13/96 2,250,000 2,255,205
Evesham Township BAN
Series 1995, 4.25% 9/27/96 1,250,000 1,252,541
Fair Lawn BAN 4% 12/13/96 3,000,000 3,006,943
Freehold Township BAN 3.95% 6/25/96 1,000,000 1,000,006
Hamilton Township Mercer County
BAN 4.125% 11/27/96 3,900,000 3,908,741
Highland Park BAN 3.75% 2/10/97 1,624,150 1,627,958
Hillside BAN 4% 8/9/96 2,625,200 2,627,144
Ho-ho-kus Borough BAN 3.74% 12/5/96 500,000 500,269
Hudson County BAN 4.375% 10/10/96 9,500,000 9,510,927
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled Gov't.
Loan Prog.) Series 1986, 3.50%, LOC Hong Kong
Shanghai Banking Corp., VRDN 30,595,000 30,595,000
Lacey Township BAN 4.25% 4/30/97 1,300,000 1,303,420
Lavallette BAN:
4% 2/28/97 974,000 977,488
4.25% 5/2/97 1,887,610 1,895,115
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Mahwah Board of Ed. BAN 4.50% 5/15/97 $ 1,100,000 $ 1,106,250
Margate BAN 3.51% 6/25/96 2,610,000 2,610,095
Mercer County Gen. Oblig. Bonds 5% 9/1/96 935,000 937,639
Mercer County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.25%, LOC Credit Suisse, VRDN 200,000 200,000
Middlesex County BAN 3.625% 6/27/96 10,000,000 10,000,171
Middletown Township BAN 4% 2/14/97 2,650,000 2,656,254
Mine Hill Township BAN 3.97% 8/2/96 500,000 500,032
Monmouth County Impt. Auth. Rev.:
Bonds 9.25% 12/1/96 420,000 431,337
(Pooled Gov't. Loan Prog.) Series 1986, 3.30%,
LOC Union Bank of Switzerland, VRDN 15,050,000 15,050,000
Montclair Township BAN:
4% 6/28/96 700,000 700,124
4% 1/24/97 2,200,000 2,207,565
4% 3/27/97 2,082,000 2,087,746
Morris County Gen. Oblig. BAN 3.47%
12/13/96 1,900,000 1,900,193
Morristown BAN 4% 8/15/96 2,800,000 2,801,636
New Jersey Econ. Dev. Auth. Bonds:
(Chambers Cogeneration Proj.) Series 1991 (b):
3.55%, tender 6/12/96, LOC Swiss Bank Corp. 5,000,000 5,000,000
3.35%, tender 6/19/96, LOC Swiss Bank Corp. 4,900,000 4,900,000
3.40%, tender 6/20/96, LOC Swiss Bank Corp. 5,000,000 5,000,000
3.35%, tender 6/21/96, LOC Swiss Bank Corp. 6,700,000 6,700,000
3.50%, tender 7/9/96, LOC Swiss Bank Corp. 4,300,000 4,300,000
(Keystone Proj.) Series 1992 (b):
3.45%, tender 6/18/96,
LOC Union Bank of Switzerland 2,500,000 2,500,000
3.35%, tender 6/19/96,
LOC Union Bank of Switzerland 5,000,000 5,000,000
(Morris Hall/ St. Lawrence Inc.) Series 1993, 4.625%,
tender 6/3/96, LOC New Jersey Nat'l. Bank 3,100,000 3,100,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (Church & Dwight Co.) Series 1991, 3.20%,
LOC Bank of Nova Scotia 3,300,000 3,300,000
Rfdg. (RJB Associates 1983 Proj.) 3.75%,
LOC PNC Bank 500,000 500,000
(AVP Realty Holdings, Inc.) Series 1989 A, 3.55%,
LOC Barclays Bank (b) 1,150,000 1,150,000
(Assoc. for Retarded Citizens) Series 1989 CC, 3.45%,
LOC Barclays Bank 1,050,000 1,050,000
(Bel Ray Co., Inc.) Series 1989 I, 3.55%,
LOC Barclays Bank (b) 50,000 50,000
(Catholic Commty. Services) Series 1995, 3.45%,
LOC First Union Nat'l. Bank 1,250,000 1,250,000
(Danic Urban Renewal Co. Proj.) Series 1985, 3.40%,
LOC Rabobank Nederland, N.V. 3,000,000 3,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN - continued
(Guttenplan's Bakery) Series 1989 G, 3.55%
LOC Barclays Bank (b) $ 650,000 $ 650,000
(Hirsh Enterprises) Series 1989 II, 3.55%,
LOC Barclays Bank (b) 400,000 400,000
(J.W. Holding Group) Series 1989 GG, 3.55%,
LOC Barclays Bank (b) 600,000 600,000
(M&S Realty) Series 1988 N, 3.55%,
LOC Barclays Bank (b) 800,000 800,000
(PVC Container Corp.) Series 1987 D, 3.75%,
LOC Nat'l. Westminster Bank (b) 1,285,000 1,285,000
(Philly Venture Fund) Series 1988 P, 3.45%,
LOC Barclays Bank 1,100,000 1,100,000
(Russ Berrie & Co. Inc.) 3.45%,
LOC Bank of New York 5,200,000 5,200,000
Series 1989 E, 3.45% LOC Barclays Bank 250,000 250,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev. Series F,
3.40%, LOC Nat'l. Westminster, VRDN 800,000 800,000
New Jersey Econ. Dev. Auth. First Mtg. Rev.
(Franciscan Oaks Proj.) Series 1992 B, 3.50%,
LOC Bank of Scotland, VRDN 8,000,000 8,000,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev.
(Casa DiBertacchi Corp. Facs.) Series 1988, 3.75%,
LOC Marine Midland Bank, VRDN (b) 1,000,000 1,000,000
New Jersey Econ. Dev. Auth. Poll. Cont. Rev.
(Hoffman-La Roche Proj.) Series 1985, 3.50%,
LOC Wachovia Bank of North Carolina, VRDN 3,000,000 3,000,000
New Jersey Econ. Dev. Auth. Rev. VRDN:
(500 International Drive Partners Proj.) Series 1995, 3.50%,
LOC First Union Nat'l. Bank 2,800,000 2,800,000
(Hoffman-La Roche Inc.) 3.70%, LOC Bayerische
Landesbank Girozentrale (b) 3,600,000 3,600,000
(Paterson Composite) (b):
Series B, 3.70%, LOC Chemical Bank 2,000,000 2,000,000
Series C, 3.70%, LOC Chemical Bank 400,000 400,000
(Peddie School Proj.) 3.60% (BPA PNC Bank) 500,000 500,000
New Jersey Edl. Facs. Auth.:
Bonds (Princeton Univ.) Series 1995 C, 4.50% 7/1/96 745,000 745,384
Participating VRDN Series SG-48, 3.60%
(Liquidity Facility Societe Generale) (c) 4,000,000 4,000,000
New Jersey Gen. Oblig. Participating VRDN (c):
Series BT-104, 3.65%
(Liquidity Facility Bankers Trust Co.) 2,500,000 2,500,000
Series BT-190, 3.65%
(Liquidity Facility Bankers Trust Co.) 4,800,000 4,800,000
Series MGT-21, 3.50%
(Liquidity Facility Morgan Guaranty Trust Co.) 2,500,000 2,500,000
Series 1995-CB1, 3.79%
(Liquidity Facility Chemical Bank) 4,900,000 4,900,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Gen. Oblig. TRAN:
Series 1996 A:
3.60% 6/13/96 (Liquidity Facility Union Bank
of Switzerland) $ 5,000,000 $ 5,000,000
3.80% 6/14/96 (Liquidity Facility Union Bank
of Switzerland) 5,000,000 5,000,000
Series 1996 C, 3.70% 6/14/96 (Liquidity Facility Union
Bank of Switzerland) 3,000,000 3,000,000
New Jersey Health Care Facs. Fing. Auth. Rev.
(Hosp. Cap. Asset Fing. Prog.) Series 1985 B, 3.45%,
LOC Chemical Bank, VRDN 8,100,000 8,100,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN (c):
Series 1994 C-3003, 3.85% (MBIA Insured)
(Liquidity Facility Citibank) 6,800,000 6,800,000
Series 1994 C-3004, 3.70% (MBIA Insured)
(Liquidity Facility Citibank) 4,500,000 4,500,000
New Jersey Sports and Exposition Auth. Rev.
Series 1992 C, 3.50% (MBIA Insured)
(BPA Barclays Bank) VRDN 1,800,000 1,800,000
New Jersey Trans. Auth. Participating VRDN,
Series 1996, 3.50%
(Liquidity Facility Bank of New York) (c) 3,600,000 3,600,000
New Jersey Turnpike Auth. Turnpike Rev. Series 1991 D,
3.25% (FGIC Insured) LOC Societe Generale, VRDN 4,700,000 4,700,000
North Brunswick Township BAN 4.125% 8/30/96 4,500,000 4,501,748
Ocean County BAN 4% 6/28/96 6,000,000 6,001,172
Passaic County BAN:
4% 6/27/96 7,500,000 7,501,506
4.125% 9/27/96 500,000 500,293
4.25% 9/27/96 2,400,000 2,402,599
4% 4/4/97 3,400,000 3,410,324
Passaic County Util. Auth. BAN (Solid Waste Sys. Proj.)
Series 1995 C, 3.90% 10/4/96 (MBIA Insured) 5,000,000 4,999,983
Paterson Gen. Impt. Bonds 4.75% 8/15/96
(FSA Insured) 766,000 767,922
Pequannock Township BAN 4% 12/5/96 610,000 611,203
Princeton BAN 3.58% 6/14/96 985,000 985,010
Randolph Township BAN 3.71% 6/21/96 2,000,000 1,999,957
Roselle Park BAN 4.25% 10/17/96 1,200,000 1,201,520
Salem County Ind. Poll. Cont. Fing. Auth. Poll. Cont.
Rev. Bonds (Philadelphia Elec. Co.) Series 1993 A,
3.55% 6/11/96, LOC Toronto Dominion Bank (b) 4,600,000 4,600,000
Somerset County Gen. Oblig. Bonds 4.35% 12/1/96 760,000 763,325
Somerset County Ind. Poll. Cont. Fing. Auth. Rev.
(Minnesota Mining & Manufacturing ) 3.70%, VRDN 600,000 600,000
Somerville BAN 3.50% 2/21/97 1,300,000 1,302,726
South Orange Maplewood School Dist.
BAN 3.85% 11/29/96 1,000,000 1,000,950
Southeast Morris County Muni. Util. Auth. Proj.
BAN 4% 1/15/97 1,000,000 1,002,706
Sparta Township BAN 4% 6/14/96 850,000 850,122
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
West Deptford Township BAN 4.25% 6/27/96 $ 1,000,000 $ 1,000,346
West Milford Township BAN 4% 1/24/97 4,403,200 4,416,961
West Orange Township Gen. Oblig. Bonds 4% 12/1/96 400,000 400,534
West Orange Township BAN 4.125% 1/13/97 1,200,000 1,203,416
Westwood BAN 4.25% 8/20/96 4,000,000 4,002,516
363,469,641
NEW YORK & NEW JERSEY - 10.8%
New York & New Jersey Port. Auth. Participating VRDN (c):
Series SG-52, 3.65% (Liquidity Facility Societe
Generale France) (b) 4,600,000 4,600,000
Series PA-67, 3.60% (Liquidity Facility Merrill
Lynch & Co.) 2,000,000 2,000,000
New York & New Jersey Port Auth. Versatile Structure
Gen. Oblig. Rev., VRDN:
Series 3, 3.75% (BPA Morgan Guaranty Trust Co.) 1,200,000 1,200,000
Series 4, 3.70% (BPA Landesbank Hessen-Thuringen) (b) 9,600,000
9,600,000
New York & New Jersey Port Auth. Rev.:
VRDN:
Series 1991, 3.821% (b) 8,800,000 8,800,000
Series 1992, 3.575% 6,800,000 6,800,000
Series 1995, 3.575% (b) 9,400,000 9,400,000
Series A, CP (b):
3.25% 6/17/96, LOC Bank of Nova Scotia 1,990,000 1,990,000
3.55% 7/10/96 (Liquidity Facility Bank of
Nova Scotia) 1,630,000 1,630,000
46,020,000
PUERTO RICO - 3.7%
Puerto Rico Commonwealth Participating VRDN (c):
Series BT-165, 3.60% (Liquidity Facility Bankers Trust Co.) 5,712,000
5,712,000
Series BT-167, 3.60% (Liquidity Facility Bankers Trust Co.) 4,900,000
4,900,000
Series PA-97, 3.45% (Liquidity Facility Merrill
Lynch & Co.) 1,000,000 1,000,000
Series PT-63, 3.45% (Liquidity Facility Bayerische
Hypotheken) 2,900,000 2,900,000
Univ. of Puerto Rico Participating VRDN, Series PA 109,
3.45% (Liquidity Facility Merrill Lynch & Co.) (c) 900,000 900,000
15,412,000
TOTAL INVESTMENTS - 100% $ 424,901,641
Total Cost for Income Tax Purposes $ 424,900,978

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1995, the fund had a capital loss carryforward of
approximately $29,000, of which $9,000 and $20,000 will expire on November
30, 2001 and 2003, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value - See accompanying 5. $ 424,901,641
schedule

6.Cash 7. 1,788,565

8.Interest receivable 9. 4,490,055

10. 11.TOTAL ASSETS 12. 431,180,261

13.LIABILITIES 14. 15.

16.Payable to custodian bank $ 14,785 17.

18.Payable for investments purchased 2,656,254 19.

20.Distributions payable 34,897 21.

22.Accrued management fee 142,983 23.

24.Other payables and accrued expenses 115,798 25.

26. 27.TOTAL LIABILITIES 28. 2,964,717

29.30.NET ASSETS 31. $ 428,215,544

32.Net Assets consist of: 33. 34.

35.Paid in capital 36. $ 428,243,827

37.Accumulated net realized gain (loss) on investments 38. (29,053)

39.Unrealized gain from accretion of market discount 40. 770

41.42.NET ASSETS, for 428,243,827 shares outstanding 43. $ 428,215,544

44.45.NET ASSET VALUE, offering price and redemption 46. $1.00
price per share ($428,215,544 (divided by) 428,243,827 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

47.48.INTEREST INCOME 49. $ 7,948,679

50.EXPENSES 51. 52.

53.Management fee $ 890,873 54.

55.Transfer agent, accounting and custodian fees 427,774 56.
and expenses

57.Non-interested trustees' compensation 1,474 58.

59.Registration fees 37,615 60.

61.Audit 10,381 62.

63.Legal 1,713 64.

65.Miscellaneous 647 66.

67. Total expenses before reductions 1,370,477 68.

69. Expense reductions (3,247) 1,367,230

70.71.NET INTEREST INCOME 72. 6,581,449

73.REALIZED AND UNREALIZED GAIN (LOSS) 75. 337
74.Net realized gain (loss) on investment securities

76.Increase (decrease) in net unrealized gain from 77. 417
accretion of market discount

78.79.NET GAIN (LOSS) 80. 754

81.82.NET INCREASE IN NET ASSETS RESULTING FROM 83. $ 6,582,203
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995

84.INCREASE (DECREASE) IN NET ASSETS

85.Operations $ 6,581,449 $ 13,958,335
Net interest income

86. Net realized gain (loss) 337 (20,623)

87. Increase (decrease) in net unrealized gain from 417 353
accretion of market discount

88. 89.NET INCREASE (DECREASE) IN NET ASSETS 6,582,203 13,938,065
RESULTING FROM OPERATIONS

90.Distributions to shareholders from net interest (6,581,449) (13,958,335)
income

91.Share transactions at net asset value of $1.00 per 660,136,897 1,061,922,377
share
Proceeds from sales of shares

92. Reinvestment of distributions from net interest 6,389,533 13,552,281
income

93. Cost of shares redeemed (673,020,485) (1,040,293,968)

94.95. (6,494,055) 35,180,690
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS

96. 97.TOTAL INCREASE (DECREASE) IN NET ASSETS (6,493,301) 35,160,420

98.NET ASSETS 99. 100.

101. Beginning of period 434,708,845 399,548,425

102. End of period $ 428,215,544 $ 434,708,845

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1996

(UNAUDITED) 1995 1994 1993 1992 1991

103.SELECTED PER-SHARE
DATA

104.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value,
beginning of
period

105.Income .015 .033 .022 .019 .028 .042
from
Investment
Operations
Net interest
income

106.Less (.015) (.033) (.022) (.019) (.028) (.042)
Distributions
From net
interest
income

107.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, end of
period

108.TOTAL 1.48% 3.33 2.19 1.94 2.81 4.29
RETURN B % % % % %

109.RATIOS AND
SUPPLEMENTAL DATA

110.Net assets, $ 428,216 $ 434,709 $ 399,548 $ 359,587 $ 359,093 $ 368,333
end of period
(000 omitted)

111.Ratio of .61%A .62 .62 .63 .64 .65
expenses to % % % % %
average net
assets

112.Ratio of net 2.94%A 3.28 2.17 1.92 2.78 4.23
interest % % % % %
income to
average net
assets

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New Jersey Municipal Money Market Fund(the fund)(formerly Fidelity
New Jersey Tax-Free Money Market Portfolio) is a fund of Fidelity Court
Street Trust II(the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Delaware business trust. The financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends are declared daily and paid monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .40% of the fund's average net
assets.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $8,659 for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the fund. UMB has entered
into a sub-contract with Fidelity Service Co. (FSC), an affiliate of FMR,
under which FSC performs the activities associated with the fund's transfer
and shareholder servicing agent and accounting functions. The fund pays
account fees and asset-based fees that vary according to account size and
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is based
on the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received transfer agent and accounting fees
amounting to $367,658 and $46,061, respectively.
For the period, the transfer agent fees were equivalent to an annualized
rate of .16% of average net assets.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $28,031.
3. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its transfer agent whereby
interest earned on uninvested cash balances was used to offset a portion of
the fund's expenses. During the period, the fund's transfer agent fees were
reduced by $3,247 under this arrangement.
TO CALL FIDELITY

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE