UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

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Item 1. Schedule of Investments.

Schedule of Investments (Unaudited)

Delaware Investments Colorado Municipal Income Fund, Inc.

December 31, 2011

		Principal
		Amount			Value
Municipal Bonds – 139.44%
Corporate-Backed Revenue Bond – 1.16%
Public Authority for Colorado Energy Natural Gas Revenue Series 2008 6.50% 11/15/38		$	750,000		$	823,193
						823,193
Education Revenue Bonds – 22.75%
Colorado Educational & Cultural Facilities Authority Revenue
(Bromley Charter School Project) 5.25% 9/15/32 (SGI)			3,245,000			3,268,072
(Charter School Project) 5.50% 5/1/36 (SGI)			1,720,000			1,729,013
(Johnson & Wales University Project) Series A 5.00% 4/1/28 (SGI)			3,000,000			2,971,800
(Littleton Charter School Project) 4.375% 1/15/36 (ASSURED GTY)			1,200,000			1,027,536
(Student Housing - Campus Village Apartments) 5.00% 6/1/23			1,065,000			1,161,414
Colorado State Board of Governors Revenue (University Enterprise System)
Series A 5.00% 3/1/39			700,000			738,087
University of Colorado 5.00% 6/1/31			3,185,000			3,580,417
University of Colorado Enterprise Systems Revenue Series A 5.375% 6/1/38			750,000			839,348
Western State College 5.00% 5/15/34			750,000			799,185
						16,114,872
Electric Revenue Bonds – 7.18%
Colorado Springs Utilities System Improvement Revenue Series C 5.50% 11/15/48			750,000			820,822
Platte River Power Authority Revenue Series HH 5.00% 6/1/28			1,500,000			1,692,344
Puerto Rico Electric Power Authority Revenue
Series TT 5.00% 7/1/37			685,000			690,076
Series WW 5.50% 7/1/38			300,000			311,358
Series XX 5.25% 7/1/40			750,000			771,488
Series ZZ 5.25% 7/1/26			750,000			800,018
						5,086,106
Healthcare Revenue Bonds – 25.08%
Aurora Hospital Revenue (Children's Hospital Association Project) Series A 5.00% 12/1/40			500,000			507,360
Colorado Health Facilities Authority Revenue
(Catholic Health Initiatives)
Series A 5.00% 7/1/39			750,000			768,615
Series A 5.00% 2/1/41			2,400,000			2,466,048
Series A 5.25% 2/1/33			1,625,000			1,710,670
Series C-1 5.10% 10/1/41 (AGM)			1,000,000			1,025,200
Series D 6.125% 10/1/28			750,000			850,800
(Christian Living Community) 6.375% 1/1/41			615,000			624,170
(Evangelical Lutheran Good Samaritan Society)
5.25% 6/1/23			1,000,000			1,043,140
Series A 6.125% 6/1/38			750,000			759,510
(Sisters of Charity of Leavenworth Health System) 5.00% 1/1/40			4,750,000			4,839,394
(Total Long-Term Care) Series A 6.00% 11/15/30			400,000			420,312
Colorado Springs Hospital Revenue 6.25% 12/15/33			750,000			794,505
Denver Health & Hospital Authority Revenue (Recovery Zone Facilities) 5.625% 12/1/40			750,000			734,235
University of Colorado Hospital Authority Revenue Series A
5.00% 11/15/37			500,000			504,365
6.00% 11/15/29			650,000			714,240
						17,762,564
Housing Revenue Bonds – 2.57%
Colorado Housing & Finance Authority (Single Family Mortgage - Class 1)
Series A 5.50% 11/1/29 (FHA) (VA) (HUD)			400,000			409,856
Puerto Rico Housing Finance Authority Subordinated-Capital Fund Modernization
5.125% 12/1/27			1,000,000			1,063,960
5.50% 12/1/18			300,000			346,158
						1,819,974
Lease Revenue Bonds – 7.81%
Aurora Certificates of Participation Refunding Series A 5.00% 12/1/30			630,000			681,937
Glendale Certificates of Participation 5.00% 12/1/25 (SGI)			1,500,000			1,590,045
•Puerto Rico Public Buildings Authority Revenue (Guaranteed Government Facilities)
Series M-2 5.50% 7/1/35 (AMBAC)			550,000			598,884
Regional Transportation District Certificates of Participation Series A 5.375% 6/1/31			460,000			498,833
Colorado State Building Excellent Schools Today Certificates of Participation
Series G 5.00% 3/15/32			2,000,000			2,161,480
						5,531,179
Local General Obligation Bonds – 17.00%
Adams & Arapahoe Counties Joint School District #28J (Aurora) 6.00% 12/1/28			600,000			709,854
Arapahoe County School District #1 Englewood 5.00% 12/1/31			2,935,000			3,307,744
Arapahoe County Water & Wastewater Public Improvement District Series A 5.125% 12/1/32 (NATL-RE)			635,000			640,994

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Boulder, Larimer & Weld Counties St. Vrain Valley School District No. Re-1J 5.00% 12/15/33		750,000			817,725
Bowles Metropolitan District 5.00% 12/1/33 (AGM)		2,000,000			2,029,319
Denver City & County (Better Denver & Zoo) Series A 5.00% 8/1/25		1,150,000			1,350,388
Denver City & County School District #1 Series A 5.00% 12/1/29		240,000			268,577
Denver International Business Center Metropolitan District No. 1 5.00% 12/1/30		650,000			654,856
Jefferson County School District #R-1 5.25% 12/15/24		750,000			964,493
Rangely Hospital District 6.00% 11/1/26		750,000			809,168
Sand Creek Metropolitan District Refunding & Improvement 5.00% 12/1/31 (SGI)		500,000			484,950
					12,038,068
§Pre-Refunded Bonds – 6.27%
Colorado Educational & Cultural Facilities Authority (University of Denver Project)
Series B 5.25% 3/1/35-16 (FGIC)		1,000,000			1,182,470
Denver Convention Center Hotel Authority Revenue Senior Lien Series A 5.00% 12/1/33-13 (SGI)		3,000,000			3,254,670
					4,437,140
Special Tax Revenue Bonds – 31.89%
Denver Convention Center Hotel Authority Revenue Refunding 5.00% 12/1/35 (SGI)		1,575,000			1,445,393
Guam Government Business Privilege Tax Revenue Series A
5.125% 1/1/42		435,000			452,970
5.25% 1/1/36		565,000			600,465
Puerto Rico Infrastructure Financing Authority Special Tax Revenue Series B 5.00% 7/1/41		2,475,000			2,446,760
Puerto Rico Sales Tax Financing Revenue Series C 5.00% 8/1/40		1,000,000			1,052,470
Puerto Rico Sales Tax Financing First Subordinate
Series A 5.50% 8/1/37		700,000			750,169
Series A 5.50% 8/1/42		1,000,000			1,063,280
Series A-1 5.00% 8/1/43		2,000,000			2,037,600
Series B 5.75% 8/1/37		590,000			645,053
Series C 6.00% 8/1/39		500,000			553,845
Regional Transportation District Revenue
(FasTracks Project) Series A
4.375% 11/1/31 (AMBAC)		1,250,000			1,272,850
4.50% 11/1/36 (AGM)		3,000,000			3,025,740
5.00% 11/1/28 (AMBAC)		2,500,000			2,797,225
5.00% 11/1/38		4,085,000			4,445,012
					22,588,832
State General Obligation Bonds – 4.31%
Puerto Rico Commonwealth (Public Improvement)
Series A 5.50% 7/1/19 (NATL-RE)		2,250,000			2,518,853
Series C 6.00% 7/1/39		505,000			536,759
					3,055,612
Transportation Revenue Bonds – 8.43%
Denver City & County Airport System Revenue Series A 5.25% 11/15/36		750,000			811,973
E-470 Public Highway Authority Revenue Series C 5.25% 9/1/25		310,000			313,202
Puerto Rico Highway & Transportation Authority Revenue Series K 5.00% 7/1/30		2,580,000			2,595,222
Regional Transportation District Revenue (Denver Transit Partners) 6.00% 1/15/41		2,175,000			2,248,276
					5,968,673
Water & Sewer Revenue Bonds – 4.99%
Colorado Water Resources & Power Development Authority Revenue
(Parker Water & Sanitation District) Series D
5.125% 9/1/34 (NATL-RE)		1,500,000			1,513,290
5.25% 9/1/43 (NATL-RE)		2,000,000			2,017,920
					3,531,210
Total Municipal Bonds (cost $95,197,180)					98,757,423
Short-Term Investment – 0.35%
¤Variable Rate Demand Note – 0.35%
Colorado Educational & Cultural Facilities Authority Revenue (Oaks Christian School Project)
0.05% 5/1/33 (LOC–U.S. Bank N.A.)		250,000			250,000
Total Short-Term Investment (cost $250,000)					250,000
Total Value of Securities – 139.79%
(cost $95,447,180)					99,007,423
Liquidation Value of Preferred Stock – (42.36%)†					(30,000,000	)
Receivables and Other Assets Net of Other Liabilities – 2.57%					1,820,454
Net Assets Applicable to 4,837,100 Shares Outstanding – 100.00%				$	70,827,877

•Variable rate security. The rate shown is the rate as of December 31, 2011. Interest rates reset periodically.
§Pre-Refunded bonds. Municipal bonds that are generally backed or secured by U.S. Treasury bonds. For Pre-Refunded bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 3 in "Notes."
¤Tax-exempt obligations that contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest upon a short notice period (generally up to 30 days) prior to specified dates either from the issuer or by drawing on a bank letter of credit, a guarantee or insurance issued with respect to such instrument.
†See Note 4 in “Notes.”

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Summary of Abbreviations:
AGM – Insured by Assured Guaranty Municipal Corporation
AMBAC – Insured by AMBAC Assurance Corporation
ASSURED GTY – Insured by Assured Guaranty Corporation
FGIC – Insured by Financial Guaranty Insurance Company
FHA – Federal Housing Administration
HUD – Housing & Urban Development Section 8
LOC – Letter of Credit
NATL-RE – Insured by National Public Finance Guarantee Corporation
SGI – Insured by Syncora Guarantee Inc.
VA – Veterans Administration Collateral

Notes

1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by Delaware Investments Colorado Municipal Income Fund, Inc. (Fund). This report covers the period of time since the Fund’s last fiscal year end.

Security Valuation – Debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Short-term debt securities are valued at market value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Directors (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security.

Federal Income Taxes – No provision for federal income taxes has been made as the Fund continues to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund's tax positions taken on federal income tax returns for all open tax years (March 31, 2008 – March 31, 2011), and has concluded that no provision for federal income tax is required in the Fund's financial statements.

Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of investments, the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material.

Other – Expenses directly attributable to a Fund are charged directly to that Fund. Other expenses common to various funds within the Delaware Investments^® Family of Funds are generally allocated amongst such funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. The Fund declares and pays dividends from net investment income monthly and distributions from net realized gain on investments, if any, annually. The Fund may distribute income dividends and capital gains more frequently, if necessary for tax purposes. Dividends and distributions, if any, are recorded on ex-dividend date.

2. Investments
At December 31, 2011, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At December 31, 2011, the cost of investments and unrealized appreciation (depreciation) for the Fund were as follows:

Cost of investments		$	95,447,180
Aggregate unrealized appreciation		$	3,962,448
Aggregate unrealized depreciation			(402,205	)
Net unrealized appreciation		$	3,560,243

For federal income tax purposes, at March 31, 2011, capital loss carryforwards of $509,083 may be carried forward and applied against future capital gains. Such capital loss carryforwards will expire in 2017.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the Act) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.

U.S. GAAP defines fair value as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.

Level 1 - inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)
Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)
Level 3 - inputs are significant unobservable inputs (including the Fund's own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair valued securities)

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The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of December 31, 2011:

			Level 2
Municipal Bonds		$	98,757,423
Short-Term Investment			250,000
Total		$	99,007,423

There were no unobservable inputs used to value investments at the beginning or end of the period.

During the period ended December 31, 2011, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the Fund. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

3. Credit and Market Risk
The Fund concentrates its investments in securities issued by Colorado municipalities. The value of these investments may be adversely affected by new legislation within the state, regional or local and national economic conditions and differing levels of supply and demand for municipal bonds. Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. A real or perceived decline in creditworthiness of a bond insurer can have an adverse impact on the value of insured bonds held in the Fund. At December 31, 2011, 42% of the Fund’s net assets were insured by bond insurers. These securities have been identified in the schedule of investments.

The Fund may invest a portion of its assets in high yield fixed income securities, which carry ratings of BB or lower by Standard & Poor’s Rating Group (S&P) and/or Ba or lower by Moody’s Investors Service, Inc. (Moody’s). Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities.

The Fund may invest in advanced refunded bonds, escrow secured bonds or defeased bonds. Under current federal tax laws and regulations, state and local government borrowers are permitted to refinance outstanding bonds by issuing new bonds. The issuer refinances the outstanding debt to either reduce interest costs or to remove or alter restrictive covenants imposed by the bonds being refinanced. A refunding transaction where the municipal securities are being refunded within 90 days from the issuance of the refunding issue is known as a "current refunding." "Advance refunded bonds" are bonds in which the refunded bond issue remains outstanding for more than 90 days following the issuance of the refunding issue. In an advance refunding, the issuer will use the proceeds of a new bond issue to purchase high grade interest bearing debt securities which are then deposited in an irrevocable escrow account held by an escrow agent to secure all future payments of principal and interest and bond premium of the advance refunded bond. Bonds are "escrowed to maturity" when the proceeds of the refunding issue are deposited in an escrow account for investment sufficient to pay all of the principal and interest on the original interest payment and maturity dates.

Bonds are considered "pre-refunded" when the refunding issue's proceeds are escrowed only until a permitted call date or dates on the refunded issue with the refunded issue being redeemed at the time, including any required premium. Bonds become "defeased" when the rights and interests of the bondholders and of their lien on the pledged revenues or other security under the terms of the bond contract are substituted with an alternative source of revenues (the escrow securities) sufficient to meet payments of principal and interest to maturity or to the first call dates. Escrowed secured bonds will often receive a rating of AAA from Moody's, S&P, and/or Fitch Ratings due to the strong credit quality of the escrow securities and the irrevocable nature of the escrow deposit agreement.

The Fund may invest up to 15% of its net assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. While maintaining oversight, the Fund’s Board has delegated to Delaware Management Company, a series of Delaware Management Business Trust, the day-to-day functions of determining whether individual securities are liquid for purposes of the Fund’s limitation on investments in illiquid securities. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in illiquid securities. As of December 31, 2011, there were no Rule 144A securities and no securities have been determined to be illiquid under the Fund's Liquidity Procedures.

4. Preferred Shares
On November 15, 2011, the Fund issued $30,000,000 Series 2016 Variable Rate Muni Fund Term Preferred (VMTP) Shares, with $100,000 liquidation value per share in a privately negotiated offering. Proceeds from the issuance of VMTP Shares, net of offering expenses, were invested in accordance with the Fund’s investment objective. The VMTP Shares were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

The Fund is obligated to redeem its VMTP Shares on December 1, 2016, unless earlier redeemed or repurchased by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares are subject to redemption at the option of the Fund, subject to payment of a premium until December 1, 2013, and at par thereafter. The Fund may be obligated to redeem certain of the VMTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Dividends on the VMTP Shares (which are treated as interest payments for financial reporting purposes) are set weekly.

The Fund uses leverage because its managers believe that, over time, leveraging may provide opportunities for additional income and total return for common shareholders. However, the use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage; accordingly, the use of structural leverage may hurt a fund’s overall performance.

Leverage may also cause the Fund to incur certain costs. In the event that the Fund is unable to meet certain criteria (including, but not limited to, maintaining certain ratings with Fitch Ratings and Moody’s Investor Service, funding dividend payments or funding redemptions), the Fund will pay additional fees with respect to the leverage.

5. Subsequent Events
Management has determined that no material events or transactions occurred subsequent to December 31, 2011 that would require recognition or disclosure in the Fund’s schedule of investments.

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Item 2. Controls and Procedures.

     The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

     There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

     File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below:

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