N-Q 1 njtaxfreefinal.htm NEW JERSEY TAX-FREE FUNDS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY


Investment Company Act file number: 811-5340

Name of Registrant: Vanguard New Jersey Tax-Free Funds

Address of Registrant: P.O. Box 2600
Valley Forge, PA 19482

Name and address of agent for service: Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482

Registrant’s telephone number, including area code: (610) 669-1000


Date of fiscal year end: November 30th

Date of reporting period: August 31, 2006

Item 1: Schedule of Investments



Vanguard New Jersey Tax-Exempt Money Market Fund
Schedule of Investments
August 31, 2006

Coupon Maturity
Date		 Face
Amount
($000)		 Market
Value
($000)
    Municipal Bonds (98.9%)        
    Bridgewater Township NJ BAN 4.000% 10/4/06  7,630  7,637 
    Bridgewater Township NJ BAN 4.750% 7/25/07  8,500  8,570 
    Burlington County NJ BAN 4.500% 3/1/07  19,655  19,756 
    Burlington County NJ BAN 4.500% 4/12/07  25,525  25,660 
    Burlington County NJ BAN 4.750% 7/12/07  11,205  11,295 
1 Burlington County NJ Bridge Comm. Rev. TOB VRDO 3.440% 9/7/06 (2)  5,335  5,335 
    Camden County NJ Improvement Auth. Lease Rev. VRDO 3.350% 9/7/06 LOC  32,100  32,100 
    Cherry Hill Township NJ BAN 4.000% 10/24/06  9,133  9,144 
    Delaware River & Bay Auth. New Jersey Rev. VRDO 3.360% 9/7/06 (2)  12,200  12,200 
1 Delaware River Port Auth. Pennsylvania & New Jersey Rev. TOB VRDO 3.440% 9/7/06 (4)  3,000  3,000 
    Dover Township NJ BAN 4.500% 6/22/07  8,170  8,227 
    Essex County NJ Improvement Auth. Rev. (Jewish Community Center) VRDO 3.370% 9/7/06 LOC  3,225  3,225 
    Essex County NJ Improvement Auth. Rev. (Pooled Govt. Loan) VRDO 3.420% 9/7/06 LOC  30,000  30,000 
1 Garden State Preservation Trust New Jersey TOB VRDO 3.420% 9/7/06 (4)  6,500  6,500 
1 Garden State Preservation Trust New Jersey TOB VRDO 3.430% 9/7/06 (4)  9,950  9,950 
    Gloucester County NJ BAN 4.000% 10/23/06  16,200  16,222 
    Gloucester County NJ PCR (Mobil Oil Refining Corp.) VRDO 3.200% 9/1/06  34,000  34,000 
    Hopewell Township NJ BAN 4.500% 11/17/06  16,940  16,987 
    Hopewell Township NJ BAN 4.500% 6/28/07  8,905  8,956 
    Lawrence Township NJ BAN 4.750% 7/26/07  4,910  4,949 
    Long Hill Township NJ BAN 4.500% 2/27/07  6,623  6,646 
    Monroe Township NJ BAN 4.250% 2/16/07  9,980  10,022 
    Mount Laurel Township NJ BAN 4.500% 5/25/07  10,508  10,570 
1 New Jersey Building Auth. Rev. TOB VRDO 3.450% 9/7/06 (1)  42,375  42,375 
1 New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) TOB VRDO 3.440% 9/7/06 (1)  4,790  4,790 
1 New Jersey COP TOB VRDO 3.420% 9/7/06 (2)  10,395  10,395 
    New Jersey Econ. Dev. Auth. Fac. Rev. (Logan Project) CP 3.590% 9/6/06 LOC  55,000  55,000 
1 New Jersey Econ. Dev. Auth. Lease Rev. TOB VRDO 3.440% 9/7/06 (1)  6,510  6,510 
    New Jersey Econ. Dev. Auth. Rev. (Airis Newark LLC Project) VRDO 3.320% 9/7/06 (2)  17,000  17,000 
    New Jersey Econ. Dev. Auth. Rev. (Bennedictine Abbey Newark) VRDO 3.420% 9/7/06 LOC  19,000  19,000 
    New Jersey Econ. Dev. Auth. Rev. (Bennedictine Abbey Newark) VRDO 3.420% 9/7/06 LOC  8,925  8,925 
    New Jersey Econ. Dev. Auth. Rev. (Chambers Cogeneration Limited Partnership) CP 3.790% 10/5/06 LOC  30,100  30,100 
    New Jersey Econ. Dev. Auth. Rev. (Columbia Univ. Project) CP 3.530% 11/7/06  7,880  7,880 
    New Jersey Econ. Dev. Auth. Rev. (Frisch School Project) VRDO 3.320% 9/7/06 LOC  5,800  5,800 
    New Jersey Econ. Dev. Auth. Rev. (Geriatric Services Housing Corp.) VRDO 3.370% 9/7/06 LOC  6,525  6,525 
    New Jersey Econ. Dev. Auth. Rev. (Hamilton YMCA) VRDO 3.420% 9/7/06 LOC  4,910  4,910 
    New Jersey Econ. Dev. Auth. Rev. (Hoffman-La Roche) VRDO 3.580% 9/1/06 LOC  17,500  17,500 
    New Jersey Econ. Dev. Auth. Rev. (Jewish Community Center) VRDO 3.410% 9/7/06 LOC  5,820  5,820 
    New Jersey Econ. Dev. Auth. Rev. (Lawrenceville School Project) VRDO 3.330% 9/1/06  25,000  25,000 
    New Jersey Econ. Dev. Auth. Rev. (Lawrenceville School Project) VRDO 3.530% 9/1/06  21,000  21,000 
    New Jersey Econ. Dev. Auth. Rev. (Lions Gate Project) VRDO 3.400% 9/7/06 LOC  5,045  5,045 
1 New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) TOB VRDO 3.430% 9/7/06 (1)  6,075  6,075 
1 New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) TOB VRDO 3.440% 9/7/06 (1)  8,000  8,000 
    New Jersey Econ. Dev. Auth. Rev. (Ocean Spray Cranberries) VRDO 3.420% 9/7/06 LOC  8,000  8,000 
    New Jersey Econ. Dev. Auth. Rev. (Order Saint Benedict Project) VRDO 3.370% 9/7/06 LOC  16,835  16,835 
    New Jersey Econ. Dev. Auth. Rev. (Passaic Hebrew Institute) VRDO 3.360% 9/7/06 LOC  3,150  3,150 
    New Jersey Econ. Dev. Auth. Rev. (Peddie School Project) VRDO 3.360% 9/7/06  6,725  6,725 
    New Jersey Econ. Dev. Auth. Rev. (Peddie School Project) VRDO 3.380% 9/7/06  5,000  5,000 
    New Jersey Econ. Dev. Auth. Rev. (Peddie School Project) VRDO 3.380% 9/7/06  1,500  1,500 
    New Jersey Econ. Dev. Auth. Rev. (Peddie School Project) VRDO 3.380% 9/7/06  7,500  7,500 
1 New Jersey Econ. Dev. Auth. Rev. (School Fac.) TOB VRDO 3.440% 9/7/06 (3)  14,150  14,150 
1 New Jersey Econ. Dev. Auth. Rev. (School Fac.) TOB VRDO 3.450% 9/7/06 (3)  39,440  39,440 
1 New Jersey Econ. Dev. Auth. Rev. (Transp. Project) TOB VRDO 3.440% 9/7/06 (4)  7,465  7,465 
    New Jersey Econ. Dev. Auth. Rev. (United States Golf Assn.) VRDO 3.380% 9/7/06 LOC  5,100  5,100 
    New Jersey Econ. Dev. Auth. Rev. (Visiting Nurse Association) VRDO 3.400% 9/7/06 LOC  5,000  5,000 
    New Jersey Econ. Dev. Auth. Rev. PCR (Exxon) VRDO 3.250% 9/1/06  2,000  2,000 
1 New Jersey Econ. Dev. Auth. Rev. TOB VRDO 3.440% 9/7/06 (4)  2,750  2,750 
1 New Jersey Econ. Dev. Auth. Rev. TOB VRDO 3.450% 9/7/06 (2)  4,065  4,065 
1 New Jersey Econ. Dev. Auth. Water Fac. Rev. (New Jersey Water Co. Project) TOB VRDO 3.460% 9/7/06 (3)  4,850  4,850 
    New Jersey Econ. Dev. Auth. Water Fac. Rev. (United Water Co.) VRDO 3.520% 9/1/06 (2)  6,600  6,600 
1 New Jersey Econ. Dev. Auth. Water Fac. Rev. (United Water Co.) VRDO 3.570% 9/1/06 (2)  20,165  20,165 
1 New Jersey Econ. Dev. Auth. Water Fac. Rev. (United Water Co.) VRDO 3.580% 9/1/06 (2)  16,250  16,250 
    New Jersey Educ. Fac. Auth. Rev. (Caldwell College) VRDO 3.370% 9/7/06 LOC  21,400  21,400 
    New Jersey Educ. Fac. Auth. Rev. (College of New Jersey) VRDO 3.370% 9/7/06 (2)  41,555  41,555 
1 New Jersey Educ. Fac. Auth. Rev. (Institute for Defense Analyses) VRDO 3.420% 9/7/06 (2)  12,930  12,930 
1 New Jersey Educ. Fac. Auth. Rev. (Montclair State Univ.) TOB VRDO 3.430% 9/7/06 (2)  6,145  6,145 
1 New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) TOB VRDO 3.440% 9/7/06  5,000  5,000 
1 New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) TOB VRDO 3.450% 9/7/06  5,210  5,210 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) VRDO 3.350% 9/1/06  37,955  37,955 
1 New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) TOB VRDO 3.450% 9/7/06 (2)  2,775  2,775 
1 New Jersey GO TOB VRDO 3.430% 9/7/06 (3)  3,380  3,380 
1 New Jersey GO TOB VRDO 3.450% 9/7/06  24,200  24,200 
1 New Jersey GO TOB VRDO 3.450% 9/7/06 (2)  8,870  8,870 
    New Jersey Health Care Fac. Financing Auth. Rev. (Capital Health Systems Obligated Group) VRDO 3.370% 9/7/06 LOC  21,710  21,710 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hosp. Capital Asset Pooled Program) VRDO 3.290% 9/7/06 LOC  20,000  20,000 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hosp. Capital Asset Pooled Program) VRDO 3.290% 9/7/06 LOC  21,000  21,000 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hosp. Capital Asset Pooled Program) VRDO 3.290% 9/7/06 LOC  24,500  24,500 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hosp. Capital Asset Pooled Program) VRDO 3.290% 9/7/06 LOC  23,600  23,600 
    New Jersey Health Care Fac. Financing Auth. Rev. (Meridian Health Systems) VRDO 3.260% 9/7/06 LOC  32,100  32,100 
    New Jersey Health Care Fac. Financing Auth. Rev. (Meridian Health Systems) VRDO 3.280% 9/7/06 LOC  31,100  31,100 
    New Jersey Health Care Fac. Financing Auth. Rev. (Robert Wood Johnson Univ.) VRDO 3.370% 9/7/06 LOC  32,855  32,855 
    New Jersey Health Care Fac. Financing Auth. Rev. (Robert Wood Johnson) VRDO 3.370% 9/7/06 LOC  16,300  16,300 
    New Jersey Health Care Fac. Financing Auth. Rev. (Southern Ocean County Hosp.) VRDO 3.370% 9/7/06 LOC  9,190  9,190 
    New Jersey Health Care Fac. Financing Auth. Rev. (St. Peters Univ. Hosp.) VRDO 3.210% 9/7/06 LOC  16,145  16,145 
    New Jersey Health Care Fac. Financing Auth. Rev. (Virtua Health) VRDO 3.370% 9/7/06 LOC  9,200  9,200 
1 New Jersey Health Care Fac. Financing Auth. Rev. TOB VRDO 3.430% 9/7/06 (2)  10,500  10,500 
1 New Jersey Health Care Fac. Financing Auth. Rev. TOB VRDO 3.430% 9/7/06 (3)  10,000  10,000 
1 New Jersey Health Care Fac. Financing Auth. Rev. TOB VRDO 3.440% 9/7/06  4,810  4,810 
    New Jersey Health Care Fac. Financing Auth. Rev. VRDO 3.380% 9/7/06 LOC  13,950  13,950 
    New Jersey Highway Auth. Rev. (Garden State Parkway) 5.000% 1/1/07 (3)(ETM)  8,565  8,612 
1 New Jersey Housing & Mortgage Finance Agency Mulity-Family Housing Rev. VRDO 3.420% 9/7/06 (4)  6,015  6,015 
1 New Jersey Housing & Mortgage Finance Agency Multi-Family Housing Rev. TOB VRDO 3.440% 9/7/06 (3)  3,615  3,615 
1 New Jersey Housing & Mortgage Finance Agency Multi-Family Housing Rev. TOB VRDO 3.460% 9/7/06 (7)  51,110  51,110 
    New Jersey Housing & Mortgage Finance Agency Multi-Family Housing Rev. VRDO 3.420% 9/7/06 (4)  8,790  8,790 
    New Jersey Housing&Mortgage Finance Agency Multi-Family Housing Rev. VRDO 3.440% 9/7/06 (3)  34,435  34,435 
    New Jersey Housing & Mortgage Finance Agency Multi-Family Housing Rev. VRDO 3.440% 9/7/06 (4)  18,755  18,755 
    New Jersey Housing & Mortgage Finance Agency Rev. VRDO 3.400% 9/7/06  22,120  22,120 
    New Jersey Housing & Mortgage Finance Agency Rev. VRDO 3.420% 9/7/06  26,820  26,820 
    New Jersey Housing & Mortgage Finance Agency Rev. VRDO 3.470% 9/7/06 LOC  17,200  17,200 
    New Jersey Housing & Mortgage Finance Agency Rev. VRDO 3.470% 9/7/06 LOC  13,400  13,400 
1 New Jersey Sports & Exposition Auth. Rev. (Convention Center Luxury Tax) TOB VRDO 3.440% 9/7/06 (1)  5,345  5,345 
    New Jersey Sports & Exposition Auth. Rev. VRDO 3.300% 9/7/06 (1)  34,785  34,785 
    New Jersey Sports & Exposition Auth. Rev. VRDO 3.380% 9/7/06 (1)  9,940  9,940 
    New Jersey Sports & Exposition Auth. Rev. VRDO 3.400% 9/7/06 (1)  6,383  6,383 
1 New Jersey Transp. Corp. COP TOB VRDO 3.440% 9/7/06 (3)  9,635  9,635 
    New Jersey Transp. Trust Fund Auth. Rev 5.000% 12/15/06 (1)  44,200  44,421 
    New Jersey Transp. Trust Fund Auth. Rev 5.000% 6/15/07 (10)(Prere.)  15,000  15,440 
    New Jersey Transp. Trust Fund Auth. Rev 6.000% 6/15/07 (Prere.)  34,660  35,933 
    New Jersey Transp. Trust Fund Auth. Rev 6.000% 6/15/07 (Prere.)  37,000  38,359 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.430% 9/7/06 (10)  5,995  5,995 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.430% 9/7/06 (2)  3,745  3,745 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.430% 9/7/06 (1)  5,680  5,680 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.430% 9/7/06 (1)  8,055  8,055 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.430% 9/7/06 (1)  10,985  10,985 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)  7,400  7,400 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (3)  5,345  5,345 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (2)  2,495  2,495 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (4)  7,025  7,025 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)  8,495  8,495 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (3)  5,330  5,330 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)  6,205  6,205 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)(3)  6,960  6,960 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.450% 9/7/06 (3)  20,000  20,000 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.450% 9/7/06 (4)  1,500  1,500 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.450% 9/7/06 (1)  2,950  2,950 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.470% 9/7/06 (2)  2,905  2,905 
1 New Jersey Transp. Trust Fund Auth. Rev. TOB VRDO 3.470% 9/7/06 (3)  4,920  4,920 
1 New Jersey Transp. Trust Fund Auth. Transp. System TOB VRDO 3.460% 9/7/06 (4)  21,995  21,995 
1 New Jersey Turnpike Auth. Rev. TOB PUT 3.550% 2/15/07 (3)  7,095  7,095 
1 New Jersey Turnpike Auth. Rev. TOB VRDO 3.440% 9/7/06 (4)  8,300  8,300 
1 New Jersey Turnpike Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)  4,995  4,995 
1 New Jersey Turnpike Auth. Rev. TOB VRDO 3.450% 9/7/06 (2)  16,000  16,000 
1 New Jersey Turnpike Auth. Rev. TOB VRDO 3.450% 9/7/06 (3)  13,640  13,640 
1 New Jersey Turnpike Auth. Rev. TOB VRDO 3.450% 9/7/06 (1)  18,335  18,335 
    New Jersey Turnpike Auth. Rev. VRDO 3.360% 9/7/06 (3)LOC  133,900  133,900 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  63,800  63,800 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  58,000  58,000 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  17,100  17,100 
    Parsippany - Troy Hills Township NJ BAN 4.750% 7/25/07  13,000  13,107 
    Port Auth. of New York & New Jersey CP 3.580% 9/6/06  15,210  15,210 
    Port Auth. of New York & New Jersey CP 3.600% 9/7/06  3,900  3,900 
    Port Auth. of New York & New Jersey Rev 3.530% 11/7/06  46,180  46,180 
1 Port Auth. of New York & New Jersey Rev. TOB VRDO 3.440% 9/7/06 (10)  5,415  5,415 
1 Port Auth. of New York & New Jersey Rev. TOB VRDO 3.440% 9/7/06 (10)  2,940  2,940 
1 Port Auth. of New York & New Jersey Rev. TOB VRDO 3.460% 9/7/06 (3)  5,930  5,930 
    Princeton Univ. New Jersey CP 3.500% 10/19/06  15,500  15,500 
    Readington Township NJ BAN 4.250% 2/7/07  20,000  20,082 
    Ridgewood NJ BAN 4.500% 6/29/07  19,680  19,801 
    Rutgers State Univ. New Jersey VRDO 3.470% 9/1/06  79,925  79,925 
    Salem County NJ Financing Auth. PCR (Atlantic City Electric Co.) VRDO 3.400% 9/7/06 (1)  9,850  9,850 
    Salem County NJ Financing Auth. PCR (Atlantic City Electric Co.) VRDO 3.500% 9/7/06 (1)  3,000  3,000 
    Salem County NJ Financing Auth. PCR (Exelon Project) CP 3.680% 9/12/06 LOC  19,000  19,000 
    Union County NJ BAN 4.500% 3/1/07  45,000  45,235 
    Univ. of Medicine & Dentistry New Jersey Rev. VRDO 3.410% 9/7/06 (2)  55,000  55,000 
1 Washington Township NJ Board of Educ. TOB VRDO 3.430% 9/7/06 (4)  8,010  8,010 
    Outside New Jersey:
1 Puerto Rico Electric Power Auth. Rev. TOB VRDO 3.400% 9/7/06 (4)  10,000  10,000 
1 Puerto Rico Electric Power Auth. Rev. TOB VRDO 3.410% 9/7/06 (1)  10,595  10,595 
1 Puerto Rico Electric Power Auth. Rev. TOB VRDO 3.440% 9/7/06 (1)  22,525  22,525 
1 Puerto Rico GO TOB VRDO 3.410% 9/7/06 (1)  7,995  7,995 
1 Puerto Rico GO TOB VRDO 3.420% 9/7/06 (4)  1,200  1,200 
    Puerto Rico Govt. Dev. Bank VRDO 3.290% 9/7/06 (1)  21,650  21,650 
1 Puerto Rico Highway & Transp. Auth. Rev. TOB VRDO 3.410% 9/7/06 (1)  22,532  22,532 
1 Puerto Rico Highway & Transp. Auth. Rev. TOB VRDO 3.420% 9/7/06 (3)  5,130  5,130 
1 Puerto Rico Highway & Transp. Auth. Rev. TOB VRDO 3.420% 9/7/06 (3)  18,890  18,890 
1 Puerto Rico Ind. Medical & Environmental Fac. Finance Auth. Rev. PCR (Abbott Laboratories) PUT 3.550% 3/1/07  12,575  12,575 
1 Puerto Rico Infrastructure Financing Auth. Special Obligation Bonds TOB VRDO 3.400% 9/7/06  29,105  29,105 
1 Puerto Rico Infrastructure Financing Auth. Special Tax Rev. TOB VRDO 3.400% 9/7/06 (2)  6,515  6,515 
1 Puerto Rico Public Finance Corp. TOB VRDO 3.410% 9/7/06 (11)  31,192  31,192 
1 Puerto Rico Public Finance Corp. TOB VRDO 3.440% 9/7/06 (3)  2,100  2,100 
1 Puerto Rico Public Finance Corp. TOB VRDO 3.460% 9/7/06 LOC  10,000  10,000 
    Total Municipal Bonds (Cost $2,721,878)       2,721,878
    Other Assets and Liabilities—Net (1.1%)       30,282
    Net Assets (100%)       2,752,160
1 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2006, the aggregate value of these securities was $800,604,000, representing 29.1% of net assets.

KEY TO ABBREVIATIONS
ARS - Auction Rate Security.
BAN - Bond Anticipation Note.
COP - Certificate of Participation.
CP - Commercial Paper.
FR - Floating Rate.
GAN - Grant Anticipation Note.
GO - General Obligation Bond.
IDA - Industrial Development Authority Bond.
IDR - Industrial Development Revenue Bond.
PCR - Pollution Control Revenue Bond.
PUT - Put Option Obligation.
RAN - Revenue Anticipation Note.
TAN - Tax Anticipation Note.
TOB - Tender Option Bond.
TRAN - Tax Revenue Anticipation Note.
UFSD - Union Free School District.
USD - United School District.
VRDO - Variable Rate Demand Obligation.
(ETM) - Escrowed to Maturity.
(Prere.) - Prerefunded.

Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Insurance Association).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) FSA (Financial Security Assurance).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty)
The insurance does not guarantee the market value of the municipal bonds.

LOC- Scheduled principal and interest payments are guaranteed by bank letter of credit.

Investment Securities: Securities are valued at amortized cost, which approximates market value.

Vanguard New Jersey Long-Term Tax-Exempt Fund
Schedule of Investments
August 31, 2006

Coupon Maturity
Date		 Face
Amount
($000)		 Market
Value
($000)
   Municipal Bonds (99.7%)        
    Atlantic County NJ Public Fac. COP 7.400% 3/1/10 (3)  1,755  1,964 
    Atlantic County NJ Public Fac. COP 7.400% 3/1/11 (3)  4,025  4,626 
    Atlantic County NJ Public Fac. COP 6.000% 3/1/14 (3)  3,685  4,198 
    Atlantic County NJ Public Fac. COP 6.000% 3/1/15 (3)  1,480  1,698 
    Atlantic County NJ Util. Auth. Sewer Rev 6.875% 1/1/12 (2)(ETM)  1,805  1,954 
    Bergen County NJ Util. Auth. Water PCR 5.000% 12/15/31 (2)  2,500  2,637 
    Burlington County NJ Bridge Comm. Rev 5.250% 12/15/21 (2)  3,200  3,489 
    Camden County NJ Improvement Auth. Lease Rev 5.375% 9/1/10 (4)(Prere.)  850  906 
    Camden County NJ Improvement Auth. Lease Rev 5.500% 9/1/10 (4)(Prere.)  1,470  1,574 
    Camden County NJ Improvement Auth. Lease Rev 5.500% 5/1/16  1,140  1,241 
    Camden County NJ Improvement Auth. Lease Rev 5.500% 5/1/17  1,025  1,112 
    Camden County NJ Improvement Auth. Lease Rev 5.500% 5/1/18  1,265  1,372 
    Camden County NJ Improvement Auth. Lease Rev 5.500% 5/1/19  1,335  1,448 
    Cape May County NJ Muni. Util. Auth. Rev 5.750% 1/1/14 (4)  6,930  7,811 
    Cape May County NJ Muni. Util. Auth. Rev 5.250% 1/1/17 (1)  2,560  2,731 
    Cape May County NJ Muni. Util. Auth. Rev 5.250% 1/1/18 (1)  2,165  2,310 
    Cape May County NJ PCR (Atlantic City Electric) 6.800% 3/1/21 (1)  15,400  19,927 
    Cumberland County NJ Improvement Auth. Solid Waste System Rev 5.125% 1/1/25 (1)  5,685  6,127 
    Delaware River & Bay Auth. New Jersey Rev 5.375% 1/1/10 (2)(Prere.)  750  798 
    Delaware River Port Auth. Pennsylvania & New Jersey Rev 5.750% 1/1/22 (4)  10,000  10,608 
    Delaware River Port Auth. Pennsylvania & New Jersey Rev 5.625% 1/1/26 (4)  5,000  5,272 
    Egg Harbor Township NJ School Dist. GO 5.000% 7/15/11 (3)(Prere.)  2,640  2,826 
    Egg Harbor Township NJ School Dist. GO 5.000% 7/15/11 (3)(Prere.)  2,780  2,976 
    Egg Harbor Township NJ School Dist. GO 5.000% 7/15/11 (3)(Prere.)  2,000  2,141 
    Egg Harbor Township NJ School Dist. GO 5.000% 7/15/11 (3)(Prere.)  1,400  1,499 
    Egg Harbor Township NJ School Dist. GO 5.100% 7/15/11 (3)(Prere.)  2,950  3,171 
    Egg Harbor Township NJ School Dist. GO 5.500% 7/15/20 (4)  3,775  4,369 
    Egg Harbor Township NJ School Dist. GO 5.500% 7/15/21 (4)  3,995  4,637 
    Egg Harbor Township NJ School Dist. GO 5.500% 7/15/22 (4)  4,220  4,915 
    Egg Harbor Township NJ School Dist. GO 5.750% 7/15/24 (4)  4,715  5,667 
    Egg Harbor Township NJ School Dist. GO 5.750% 7/15/25 (4)  4,885  5,901 
    Essex County NJ Improvement Auth. Lease Rev 5.750% 10/1/10 (3)(Prere.)  3,390  3,667 
    Essex County NJ Improvement Auth. Lease Rev 5.750% 10/1/10 (3)(Prere.)  5,090  5,506 
    Essex County NJ Improvement Auth. Lease Rev 5.750% 10/1/10 (3)(Prere.)  2,650  2,867 
    Essex County NJ Improvement Auth. Rev 5.500% 10/1/23 (1)  12,065  13,963 
    Essex County NJ Improvement Auth. Rev 5.500% 10/1/24 (1)  6,725  7,806 
    Essex County NJ Improvement Auth. Rev 5.500% 10/1/25 (1)  11,630  13,567 
    Essex County NJ Improvement Auth. Rev 5.500% 10/1/26 (1)  6,500  7,600 
    Essex County NJ Improvement Auth. Rev 5.500% 10/1/27 (1)  5,895  6,905 
    Essex County NJ Solid Waste Util. Auth 0.000% 4/1/10 (4)  1,000  876 
    Evesham NJ Util. Auth. Rev 5.000% 7/1/16 (2)  3,435  3,648 
    Evesham NJ Util. Auth. Rev 5.000% 7/1/17 (2)  3,705  3,914 
    Evesham NJ Util. Auth. Rev 5.000% 7/1/18 (2)  1,605  1,694 
    Garden State Preservation Trust New Jersey 0.000% 11/1/21 (4)  11,325  5,827 
    Garden State Preservation Trust New Jersey 0.000% 11/1/22 (4)  41,150  20,136 
    Garden State Preservation Trust New Jersey 0.000% 11/1/23 (4)  15,000  6,999 
    Garden State Preservation Trust New Jersey 5.750% 11/1/28 (4)  13,000  15,760 
    Gloucester County NJ Improvement Auth. Lease Rev 5.000% 7/15/16 (1)  1,000  1,068 
    Gloucester County NJ Improvement Auth. Lease Rev 5.000% 7/15/17 (1)  1,000  1,065 
    Gloucester County NJ Improvement Auth. Lease Rev 5.000% 7/15/20 (1)  1,150  1,222 
    Gloucester County NJ Improvement Auth. Lease Rev 5.000% 7/15/23 (1)  1,000  1,053 
    Gloucester Township NJ GO 5.750% 7/15/10 (2)  2,880  3,111 
    Gloucester Township NJ Muni. Util. Auth. Rev 5.650% 3/1/18 (2)  2,755  3,073 
    Higher Educ. Assistance Auth. of New Jersey Student Loan Rev 6.000% 6/1/13 (1)  1,685  1,723 
    Higher Educ. Assistance Auth. of New Jersey Student Loan Rev 6.000% 6/1/15 (1)  3,140  3,211 
    Higher Educ. Assistance Auth. of New Jersey Student Loan Rev 6.100% 6/1/16 (1)  1,685  1,725 
    Hillsborough Township NJ School Dist. GO 5.375% 10/1/13 (4)  1,250  1,381 
    Hillsborough Township NJ School Dist. GO 5.375% 10/1/15 (4)  1,720  1,929 
    Hillsborough Township NJ School Dist. GO 5.375% 10/1/17 (4)  720  814 
    Hillsborough Township NJ School Dist. GO 5.375% 10/1/19 (4)  1,720  1,974 
1 Hoboken-Union City-Weehawken NJ Sewerage Auth. Rev 6.250% 8/1/13 (1)  9,590  11,043 
    Hudson County NJ GO 6.550% 7/1/07 (3)  1,300  1,331 
    Irvington Township NJ GO 0.000% 8/1/07 (1)(ETM)  1,000  968 
    Irvington Township NJ GO 0.000% 8/1/09 (1)(ETM)  2,580  2,320 
    Irvington Township NJ GO 0.000% 8/1/10 (1)(ETM)  2,080  1,800 
    Jackson Township NJ Board of Educ. GO 5.375% 4/15/12 (3)(Prere.)  6,885  7,494 
    Jackson Township NJ Board of Educ. GO 5.375% 4/15/12 (3)(Prere.)  7,676  8,355 
    Jackson Township NJ Board of Educ. GO 5.250% 6/15/21 (1)  11,195  12,678 
    Marlboro Township NJ Board of Educ. GO 5.250% 7/15/09 (4)(Prere.)  2,625  2,746 
    Marlboro Township NJ Board of Educ. GO 5.250% 7/15/09 (4)(Prere.)  2,790  2,918 
    Marlboro Township NJ Board of Educ. GO 5.250% 7/15/09 (4)(Prere.)  2,850  2,981 
    Marlboro Township NJ Board of Educ. GO 5.000% 7/15/14  1,045  1,102 
    Mercer County NJ Improvement Auth. Solid Waste Rev 5.375% 9/15/12  11,120  11,521 
    Mercer County NJ Improvement Auth. Special Services School Dist. Rev 5.750% 12/15/08  1,165  1,220 
    Mercer County NJ Improvement Auth. Special Services School Dist. Rev 5.950% 12/15/12  4,895  5,506 
    Middlesex County NJ COP 5.000% 8/1/11 (1)  1,050  1,111 
    Middlesex County NJ COP 5.500% 8/1/15 (1)  1,195  1,287 
    Middlesex County NJ Improvement Auth 5.375% 3/15/22 (3)  1,825  1,968 
    Middlesex County NJ Improvement Auth 5.375% 3/15/23 (3)  1,925  2,076 
    Middlesex County NJ Improvement Auth. Rev. Heldrich Center Hotel/Conference Project 5.000% 1/1/15  500  507 
    Middlesex County NJ Improvement Auth. Rev. Heldrich Center Hotel/Conference Project 5.000% 1/1/20  500  507 
    Middlesex County NJ Improvement Auth. Rev. Heldrich Center Hotel/Conference Project 5.000% 1/1/32  5,100  5,056 
    Middlesex County NJ Improvement Auth. Rev. Heldrich Center Hotel/Conference Project 5.125% 1/1/37  3,500  3,512 
    Middlesex County NJ Improvement Auth. Rev. Open Space Trust Fund 5.250% 9/15/19  1,585  1,718 
    Middlesex County NJ Improvement Auth. Rev. Open Space Trust Fund 5.250% 9/15/20  1,600  1,734 
    Middlesex County NJ Improvement Auth. Rev. Open Space Trust Fund 5.250% 9/15/21  2,375  2,562 
    Middlesex County NJ Improvement Auth. Rev. Open Space Trust Fund 5.250% 9/15/22  2,000  2,157 
    Middlesex County NJ Improvement Auth. Util. Systems Rev. (Perth Amboy) 0.000% 9/1/15 (2)  2,000  1,395 
    Middlesex County NJ Improvement Auth. Util. Systems Rev. (Perth Amboy) 0.000% 9/1/16 (2)  3,000  1,999 
    Middlesex County NJ Improvement Auth. Util. Systems Rev. (Perth Amboy) 0.000% 9/1/18 (2)  4,550  2,740 
    Middletown Township NJ Board of Educ. GO 5.000% 8/1/14 (4)  2,735  2,862 
    Middletown Township NJ Board of Educ. GO 5.000% 8/1/15 (4)  2,015  2,106 
    Monmouth County NJ Improvement Auth. Rev. (Howell Township Board of Educ.) 5.800% 7/15/07 (2)(Prere.)  1,180  1,215 
    Monmouth County NJ Improvement Auth. Rev. (Howell Township Board of Educ.) 5.000% 7/15/19 (2)  2,115  2,233 
    Monmouth County NJ Improvement Auth. Rev. (Howell Township Board of Educ.) 5.000% 7/15/20 (2)  2,225  2,349 
    Montgomery Township NJ School Dist. GO 5.250% 8/1/13 (1)  1,285  1,384 
    Montgomery Township NJ School Dist. GO 5.250% 8/1/17 (1)  1,280  1,371 
    Montgomery Township NJ School Dist. GO 5.250% 8/1/18 (1)  1,280  1,371 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) 5.250% 1/1/20 (2)  2,945  3,228 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) 5.250% 1/1/21 (2)  6,255  6,847 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) 5.250% 1/1/22 (2)  5,585  6,114 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) 5.250% 1/1/23 (2)  3,900  4,269 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Hotel Room Fee) 5.250% 1/1/24 (2)  3,500  3,829 
    New Jersey Casino Reinvestment Dev. Auth. Rev. (Parking Fee) 5.250% 6/1/21 (1)  3,000  3,251 
2 New Jersey Econ. Dev. Auth. Lease Rev. (Bergen County Administration Complex) 5.500% 11/15/08 (1)(Prere.)  4,375  4,595 
2 New Jersey Econ. Dev. Auth. Lease Rev. (Bergen County Administration Complex) 5.625% 11/15/08 (1)(Prere.)  4,870  5,127 
2 New Jersey Econ. Dev. Auth. Lease Rev. (Bergen County Administration Complex) 5.750% 11/15/08 (1)(Prere.)  6,080  6,417 
2 New Jersey Econ. Dev. Auth. Lease Rev. (Bergen County Administration Complex) 5.750% 11/15/08 (1)(Prere.)  5,440  5,742 
    New Jersey Econ. Dev. Auth. Market Transition Fac. Rev 5.500% 9/1/28 (3)  8,000  9,433 
    New Jersey Econ. Dev. Auth. Market Transition Fac. Rev 5.500% 9/1/29 (3)  7,055  8,330 
    New Jersey Econ. Dev. Auth. Rev. (Cigarette Tax) 5.625% 6/15/17  6,500  6,591 
    New Jersey Econ. Dev. Auth. Rev. (Hillcrest Health Service) 0.000% 1/1/12 (2)  2,500  2,044 
    New Jersey Econ. Dev. Auth. Rev. (Hillcrest Health Service) 0.000% 1/1/13 (2)  3,000  2,349 
    New Jersey Econ. Dev. Auth. Rev. (Masonic Charity Foundation) 5.875% 6/1/18  1,250  1,362 
    New Jersey Econ. Dev. Auth. Rev. (Masonic Charity Foundation) 6.000% 6/1/25  1,000  1,102 
    New Jersey Econ. Dev. Auth. Rev. (Masonic Charity Foundation) 5.500% 6/1/31  1,665  1,769 
    New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) 5.250% 7/1/24 (1)  6,000  6,809 
    New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) 5.250% 7/1/25 (1)  14,000  15,939 
    New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) 5.250% 7/1/26 (1)  3,000  3,421 
    New Jersey Econ. Dev. Auth. Rev. (Motor Vehicle Comm.) 5.250% 7/1/31 (1)  25,175  26,922 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.250% 6/15/11 (2)(Prere.)  7,040  7,546 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.500% 6/15/13 (2)  1,200  1,325 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.250% 9/1/14 (3)(Prere.)  3,880  4,274 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.250% 3/1/24  15,550  16,719 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.250% 3/1/25  8,000  8,589 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.250% 3/1/26  10,000  10,700 
    New Jersey Econ. Dev. Auth. Rev. (School Fac.) 5.500% 9/1/27 (3)  24,500  28,877 
    New Jersey Econ. Dev. Auth. Rev. (St. Barnabas Project) 0.000% 7/1/08 (1)  2,305  2,156 
    New Jersey Econ. Dev. Auth. Rev. (St. Barnabas Project) 0.000% 7/1/11 (1)  4,650  3,886 
    New Jersey Econ. Dev. Auth. Rev. (St. Barnabas Project) 0.000% 7/1/12 (1)  4,550  3,649 
    New Jersey Econ. Dev. Auth. Rev. (St. Barnabas Project) 0.000% 7/1/13 (1)  4,500  3,451 
    New Jersey Econ. Dev. Auth. Rev. (St. Barnabas Project) 0.000% 7/1/14 (1)  4,210  3,089 
    New Jersey Econ. Dev. Auth. Rev. (Transp. Project) 5.250% 5/1/09 (4)(Prere.)  4,500  4,693 
    New Jersey Econ. Dev. Auth. Rev. (Transp. Project) 5.875% 5/1/09 (4)(Prere.)  3,465  3,668 
    New Jersey Econ. Dev. Auth. Rev. PCR (Exxon) VRDO 3.250% 9/1/06  2,600  2,600 
    New Jersey Econ. Dev. Auth. Water Fac. Rev. (NJ American Water Co.) 5.125% 4/1/22 (2)  5,000  5,252 
    New Jersey Educ. Fac. Auth. Rev 5.875% 9/1/07 (2)  5,890  6,024 
    New Jersey Educ. Fac. Auth. Rev 5.875% 9/1/08 (2)  6,165  6,438 
    New Jersey Educ. Fac. Auth. Rev 5.000% 9/1/10 (4)(Prere.)  2,715  2,857 
    New Jersey Educ. Fac. Auth. Rev 5.750% 9/1/10 (4)(Prere.)  8,425  9,101 
    New Jersey Educ. Fac. Auth. Rev 5.750% 9/1/12  7,595  8,386 
    New Jersey Educ. Fac. Auth. Rev 5.000% 9/1/20  6,405  6,632 
    New Jersey Educ. Fac. Auth. Rev. (College of New Jersey) VRDO 3.370% 9/7/06 (2)  2,450  2,450 
    New Jersey Educ. Fac. Auth. Rev. (Drew Univ.) 5.250% 7/1/20 (3)  2,060  2,329 
    New Jersey Educ. Fac. Auth. Rev. (Drew Univ.) 5.250% 7/1/21 (3)  1,550  1,756 
    New Jersey Educ. Fac. Auth. Rev. (Fairleigh Dickinson Univ.) 5.500% 7/1/23  2,750  2,932 
    New Jersey Educ. Fac. Auth. Rev. (Kean Univ.) 5.250% 7/1/21 (3)  2,605  2,804 
    New Jersey Educ. Fac. Auth. Rev. (Kean Univ.) 5.250% 7/1/22 (3)  2,775  2,980 
    New Jersey Educ. Fac. Auth. Rev. (Montclair State Univ.) 5.000% 7/1/27 (2)  11,275  11,948 
    New Jersey Educ. Fac. Auth. Rev. (Montclair State Univ.) 5.000% 7/1/32 (3)  4,700  4,943 
    New Jersey Educ. Fac. Auth. Rev. (New Jersey Institute of Technology) 5.250% 7/1/17 (1)  1,000  1,062 
    New Jersey Educ. Fac. Auth. Rev. (New Jersey Institute of Technology) 5.250% 7/1/18 (1)  1,470  1,561 
    New Jersey Educ. Fac. Auth. Rev. (New Jersey Institute of Technology) 5.250% 7/1/20 (1)  1,725  1,832 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) 5.250% 7/1/16  2,545  2,853 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) 5.250% 7/1/18  4,785  5,407 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) 5.250% 7/1/19  7,000  7,931 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) VRDO 3.180% 9/1/06  1,900  1,900 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) VRDO 3.350% 9/1/06  6,620  6,620 
    New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.) VRDO 3.430% 9/1/06  6,800  6,800 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.625% 7/1/09 (1)(Prere.)  2,105  2,231 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.000% 7/1/15 (3)  1,550  1,649 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.000% 7/1/17 (3)  1,700  1,796 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.000% 7/1/20 (3)  1,010  1,066 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.000% 7/1/34 (3)  15,760  16,481 
    New Jersey Educ. Fac. Auth. Rev. (Ramapo College) 5.000% 7/1/36 (1)  4,000  4,219 
    New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) 5.250% 7/1/10 (3)(Prere.)  11,210  11,874 
    New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) 5.250% 7/1/14 (3)  2,305  2,480 
    New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) 5.250% 7/1/15 (3)  1,880  2,020 
    New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) 5.250% 7/1/16 (3)  2,050  2,203 
    New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.) 5.125% 7/1/21 (3)  2,800  3,000 
    New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.) 5.250% 7/1/10 (2)  1,500  1,579 
    New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.) 5.250% 7/1/12 (2)  1,275  1,339 
    New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.) 5.250% 7/1/15 (2)  400  426 
    New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.) 5.250% 7/1/16 (2)  200  213 
    New Jersey Educ. Fac. Auth. Rev. (Stevens Institute of Technology) 5.125% 7/1/22  6,000  6,215 
    New Jersey Educ. Fac. Auth. Rev. (Stevens Institute of Technology) 5.250% 7/1/32  6,000  6,219 
    New Jersey Environmental Infrastructure Trust Wastewater Treatment Rev 5.000% 9/1/07 (Prere.)  1,525  1,562 
    New Jersey Environmental Infrastructure Trust Wastewater Treatment Rev 5.125% 9/1/10 (Prere.)  5,090  5,425 
    New Jersey Health Care Fac. Financing Auth. Rev. (Atlantic City Medical Center) 6.000% 7/1/08  2,530  2,608 
    New Jersey Health Care Fac. Financing Auth. Rev. (Atlantic City Medical Center) 6.250% 7/1/17  3,950  4,393 
    New Jersey Health Care Fac. Financing Auth. Rev. (Atlantic City Medical Center) 5.750% 7/1/25  5,000  5,346 
    New Jersey Health Care Fac. Financing Auth. Rev. (Capital Health Systems Obligated Group) 5.750% 7/1/23  7,000  7,514 
    New Jersey Health Care Fac. Financing Auth. Rev. (Children's Specialized Hospital) 5.000% 7/1/24  800  810 
    New Jersey Health Care Fac. Financing Auth. Rev. (Children's Specialized Hospital) 5.500% 7/1/30  2,405  2,525 
    New Jersey Health Care Fac. Financing Auth. Rev. (Children's Specialized Hospital) 5.500% 7/1/36  6,800  7,129 
    New Jersey Health Care Fac. Financing Auth. Rev. (Community Medical Center/Kimball Medical Center/Kensington Manor Care Center) 5.250% 7/1/09 (4)  5,500  5,710 
    New Jersey Health Care Fac. Financing Auth. Rev. (Community Medical Center/Kimball Medical Center/Kensington Manor Care Center) 5.000% 7/1/10 (4)  4,695  4,851 
    New Jersey Health Care Fac. Financing Auth. Rev. (Community Medical Center/Kimball Medical Center/Kensington Manor Care Center) 5.250% 7/1/12 (4)  1,500  1,550 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hackensack Univ. Medical Center) 5.375% 1/1/13 (1)  2,355  2,423 
    New Jersey Health Care Fac. Financing Auth. Rev. (Holy Name Hosp.) 5.250% 7/1/20 (2)  4,100  4,230 
    New Jersey Health Care Fac. Financing Auth. Rev. (Holy Name Hosp.) 5.250% 7/1/30  4,000  4,184 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hunterdon Medical Center) 5.250% 7/1/25  1,200  1,273 
    New Jersey Health Care Fac. Financing Auth. Rev. (Hunterdon Medical Center) 5.125% 7/1/35  2,450  2,513 
    New Jersey Health Care Fac. Financing Auth. Rev. (Meridian Health System Obligated Group) 5.625% 7/1/13 (4)  7,355  7,794 
    New Jersey Health Care Fac. Financing Auth. Rev. (Meridian Health System Obligated Group) 5.250% 7/1/29 (4)  13,450  14,052 
    New Jersey Health Care Fac. Financing Auth. Rev. (Riverside Medical Center) 6.250% 7/1/10 (2)(ETM)  2,935  3,204 
    New Jersey Health Care Fac. Financing Auth. Rev. (South Jersey Hosp.) 5.875% 7/1/21  3,500  3,755 
    New Jersey Health Care Fac. Financing Auth. Rev. (South Jersey Hosp.) 6.000% 7/1/26  3,500  3,757 
    New Jersey Health Care Fac. Financing Auth. Rev. (South Jersey Hosp.) 6.000% 7/1/32  3,000  3,201 
    New Jersey Health Care Fac. Financing Auth. Rev. (St. Barnabas Health Care) 5.250% 7/1/13 (1)  3,000  3,117 
    New Jersey Health Care Fac. Financing Auth. Rev. (St. Barnabas Health Care) 5.250% 7/1/16 (1)  3,300  3,434 
    New Jersey Health Care Fac. Financing Auth. Rev. (St. Barnabas Health Care) 0.000% 7/1/21 (1)  3,000  1,566 
    New Jersey Health Care Fac. Financing Auth. Rev. (Virtua Health) 5.250% 7/1/14 (4)  11,000  11,428 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 4.950% 6/1/10 (2)  2,980  3,001 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.050% 6/1/11 (2)  2,375  2,393 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.050% 6/1/12 (1)  525  532 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.150% 6/1/12 (2)  2,475  2,489 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.100% 6/1/13 (1)  1,200  1,216 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.200% 6/1/13 (2)  3,860  3,894 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.125% 6/1/14 (1)  685  694 
    New Jersey Higher Educ. Assistance Auth. Student Loan Rev 5.250% 6/1/18 (1)  380  384 
    New Jersey Highway Auth. Rev. (Garden State Parkway) 5.600% 1/1/10 (3)(Prere.)  7,535  8,078 
    New Jersey Housing & Mortgage Finance Agency Multi-Family Housing Rev 5.700% 5/1/20 (4)  2,255  2,362 
    New Jersey Housing & Mortgage Finance Agency Rev. (Home Buyer) 5.400% 10/1/20 (1)  735  749 
    New Jersey Sports & Exposition Auth. Rev 6.500% 3/1/13 (1)(ETM)  1,595  1,763 
    New Jersey Sports & Exposition Auth. Rev 6.500% 3/1/13 (1)  8,405  9,248 
    New Jersey Sports & Exposition Auth. Rev 5.500% 3/1/17 (1)(ETM)  250  284 
    New Jersey Sports & Exposition Auth. Rev 5.500% 3/1/17 (1)  5,505  6,261 
    New Jersey Sports & Exposition Auth. Rev. (Convention Center Luxury Tax) 5.500% 3/1/21 (1)  3,000  3,445 
    New Jersey Sports & Exposition Auth. Rev. (Convention Center Luxury Tax) 5.500% 3/1/22 (1)  1,000  1,153 
    New Jersey Transp. Corp. COP 5.750% 9/15/10 (2)(Prere.)  2,000  2,162 
    New Jersey Transp. Corp. COP 5.500% 9/15/12 (2)  20,000  21,837 
    New Jersey Transp. Corp. COP 5.500% 9/15/14 (2)  1,500  1,666 
    New Jersey Transp. Corp. COP 5.500% 9/15/15 (2)  15,000  16,779 
    New Jersey Transp. Trust Fund Auth. Rev 6.000% 6/15/10 (Prere.)  5,000  5,425 
    New Jersey Transp. Trust Fund Auth. Rev 5.750% 6/15/20  5,000  5,828 
    New Jersey Transp. Trust Fund Auth. Rev 5.500% 12/15/21 (1)  25,000  28,852 
    New Jersey Transp. Trust Fund Auth. Rev 5.750% 6/15/23 (3)  5,850  6,958 
    New Jersey Transp. Trust Fund Auth. Rev 5.250% 12/15/23 (2)  15,830  17,920 
    New Jersey Transp. Trust Fund Auth. Rev 5.750% 6/15/24 (3)  5,000  5,971 
    New Jersey Transp. Trust Fund Auth. Rev 5.750% 6/15/25 (3)  17,750  21,325 
    New Jersey Transp. Trust Fund Auth. Rev 0.000% 12/15/32 (4)  30,000  8,846 
    New Jersey Transp. Trust Fund Auth. Rev 0.000% 12/15/36 (2)  34,000  8,345 
    New Jersey Turnpike Auth. Rev 5.375% 1/1/10 (1)(Prere.)  3,500  3,697 
    New Jersey Turnpike Auth. Rev 5.500% 1/1/10 (1)(Prere.)  1,800  1,908 
    New Jersey Turnpike Auth. Rev 5.750% 1/1/10 (1)(Prere.)  1,620  1,730 
    New Jersey Turnpike Auth. Rev 5.750% 1/1/10 (1)(Prere.)  665  710 
    New Jersey Turnpike Auth. Rev 5.750% 1/1/10 (1)(Prere.)  7,365  7,865 
    New Jersey Turnpike Auth. Rev 6.000% 1/1/13 (1)  230  259 
    New Jersey Turnpike Auth. Rev 6.000% 1/1/13 (1)(ETM)  770  870 
    New Jersey Turnpike Auth. Rev 6.500% 1/1/13 (1)(ETM)  20,000  23,147 
    New Jersey Turnpike Auth. Rev 6.500% 1/1/16 (1)(ETM)  1,560  1,821 
    New Jersey Turnpike Auth. Rev 6.500% 1/1/16 (1)  4,615  5,371 
    New Jersey Turnpike Auth. Rev 6.500% 1/1/16 (1)(ETM)  22,095  25,795 
    New Jersey Turnpike Auth. Rev 5.750% 1/1/17 (1)  2,635  2,799 
    New Jersey Turnpike Auth. Rev 5.250% 1/1/26 (4)  5,500  6,291 
    New Jersey Turnpike Auth. Rev 5.250% 1/1/27 (4)  7,000  8,029 
    New Jersey Turnpike Auth. Rev 5.250% 1/1/29 (4)  19,000  21,781 
    New Jersey Turnpike Auth. Rev 5.250% 1/1/30 (4)  24,500  28,142 
2 New Jersey Turnpike Auth. Rev. TOB VRDO 3.430% 9/7/06 (2)  13,520  13,520 
2 New Jersey Turnpike Auth. Rev. TOB VRDO 3.430% 9/7/06 (2)  4,710  4,710 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  16,125  16,125 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  19,600  19,600 
    New Jersey Turnpike Auth. Rev. VRDO 3.400% 9/7/06 (4)  21,800  21,800 
    New Jersey Water Supply Auth. Delaware & Raritan Water System Rev 5.375% 11/1/10 (1)  2,230  2,323 
    New Jersey Water Supply Auth. Delaware & Raritan Water System Rev 5.375% 11/1/11 (1)  2,345  2,441 
    New Jersey Water Supply Auth. Delaware & Raritan Water System Rev 5.375% 11/1/13 (1)  2,600  2,702 
    Newark NJ GO 5.500% 10/1/08 (2)  1,660  1,724 
    Newark NJ GO 5.375% 12/15/13 (1)  2,000  2,182 
    Ocean County NJ Util. Auth. Wastewater Rev 5.250% 1/1/17  2,665  2,843 
    Ocean County NJ Util. Auth. Wastewater Rev 5.250% 1/1/18  2,345  2,502 
    Ocean County NJ Util. Auth. Wastewater Rev 6.600% 1/1/18 (3)(ETM)  2,500  2,989 
    Port Auth. of New York & New Jersey Rev 5.125% 11/15/12 (3)  2,500  2,588 
    Port Auth. of New York & New Jersey Rev 5.125% 11/15/14 (3)  6,025  6,223 
    Port Auth. of New York & New Jersey Rev 5.500% 12/15/14 (2)  2,790  3,039 
    Port Auth. of New York & New Jersey Rev 5.000% 8/1/15  3,370  3,460 
    Port Auth. of New York & New Jersey Rev 5.500% 12/15/19 (2)  5,125  5,548 
    Port Auth. of New York & New Jersey Rev 5.000% 7/15/31  12,830  13,486 
    Port Auth. of New York & New Jersey Rev 5.000% 7/15/34 (1)  12,095  12,709 
    Rahway Valley NJ Sewerage Auth. Sewer Rev 0.000% 9/1/31 (1)  4,215  1,322 
    Rahway Valley NJ Sewerage Auth. Sewer Rev 0.000% 9/1/32 (1)  5,000  1,487 
    Rahway Valley NJ Sewerage Auth. Sewer Rev 0.000% 9/1/34 (1)  10,220  2,754 
    Rahway Valley NJ Sewerage Auth. Sewer Rev 0.000% 9/1/35 (1)  10,215  2,627 
    Rutgers State Univ. New Jersey 6.400% 5/1/13  3,000  3,310 
    Rutgers State Univ. New Jersey 5.000% 5/1/31 (3)  2,000  2,093 
    South Jersey Port Corp. New Jersey Rev 5.000% 1/1/23  2,000  2,075 
    South Jersey Port Corp. New Jersey Rev 5.200% 1/1/23  1,500  1,551 
    South Jersey Port Corp. New Jersey Rev 5.100% 1/1/33  1,500  1,553 
    Stafford NJ Muni. Util. Auth. Water & Sewer Rev 5.500% 6/1/11 (3)  3,100  3,354 
    Union County NJ Improvement Auth. Rev. (Plainfield Board of Educ.) 5.800% 8/1/07 (3)(Prere.)  4,000  4,121 
    Union County NJ PCR (Exxon) VRDO 3.180% 9/1/06  415  415 
    Union County NJ Util. Auth. Rev. (Ogden Martin) 5.375% 6/1/11 (2)  8,375  8,636 
    Union County NJ Util. Auth. Rev. (Ogden Martin) 5.375% 6/1/12 (2)  8,995  9,269 
    Union County NJ Util. Auth. Rev. (Ogden Martin) 5.375% 6/1/13 (2)  9,445  9,708 
    Univ. of Medicine & Dentistry New Jersey COP 5.250% 6/15/18 (1)  1,975  2,138 
    Univ. of Medicine & Dentistry New Jersey COP 5.250% 6/15/20 (1)  2,185  2,354 
    Univ. of Medicine & Dentistry New Jersey COP 5.250% 6/15/22 (1)  2,420  2,604 
    Univ. of Medicine & Dentistry New Jersey Rev 6.500% 12/1/12 (1)(ETM)  4,000  4,447 
    Univ. of Medicine & Dentistry New Jersey Rev 5.375% 12/1/15 (2)  2,325  2,535 
    Univ. of Medicine & Dentistry New Jersey Rev 5.375% 12/1/16 (2)  1,110  1,208 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/18 (2)  1,250  1,366 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/19 (2)  3,000  3,278 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/20 (2)  3,675  4,015 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/21 (2)  2,000  2,185 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/23 (2)  7,330  7,966 
    Univ. of Medicine & Dentistry New Jersey Rev 5.500% 12/1/27 (2)  10,100  10,937 
    Vernon Township NJ School Dist. GO 5.250% 12/1/09 (3)(Prere.)  1,200  1,262 
    Vernon Township NJ School Dist. GO 5.300% 12/1/09 (3)(Prere.)  1,200  1,263 
    Vernon Township NJ School Dist. GO 5.375% 12/1/09 (3)(Prere.)  1,200  1,266 
    Vernon Township NJ School Dist. GO 5.375% 12/1/09 (3)(Prere.)  1,200  1,266 
    Vernon Township NJ School Dist. GO 5.375% 12/1/09 (3)(Prere.)  1,200  1,266 
    Washington Township NJ Board of Educ. GO 5.250% 1/1/23 (4)  1,875  2,127 
    Washington Township NJ Board of Educ. GO 5.250% 1/1/24 (4)  2,070  2,352 
    Washington Township NJ Board of Educ. GO 5.250% 1/1/25 (4)  1,500  1,710 
    Washington Township NJ Board of Educ. GO 5.250% 1/1/26 (4)  1,330  1,521 
    West Orange NJ Board of Educ. COP 5.625% 10/1/09 (1)(Prere.)  2,500  2,672 
    West Orange NJ Board of Educ. COP 5.625% 10/1/09 (1)(Prere.)  2,000  2,137 
    West Orange NJ Board of Educ. COP 6.000% 10/1/09 (1)(Prere.)  1,000  1,080 
    Outside New Jersey :
    Guam Govt. Ltd. Obligation Infrastructure Improvement Rev 5.125% 11/1/11 (2)  3,400  3,520 
    Puerto Rico Electric Power Auth. Rev 5.250% 7/1/07 (1)(Prere.)  3,200  3,294 
    Puerto Rico Electric Power Auth. Rev 5.250% 7/1/22 (1)  2,000  2,261 
    Puerto Rico GO 5.500% 7/1/18  5,540  6,162 
    Puerto Rico GO 5.500% 7/1/21 (1)  6,750  7,800 
    Puerto Rico Govt. Dev. Bank CP 3.850% 10/4/06  1,422  1,422 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/14 (Prere.)  3,500  3,905 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/14 (Prere.)  4,125  4,602 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/19 (1)  5,000  5,736 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/21 (4)  5,000  5,778 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/22 (4)  3,500  4,057 
    Puerto Rico Highway & Transp. Auth. Rev 5.500% 7/1/23 (4)  4,000  4,649 
    Puerto Rico Highway & Transp. Auth. Rev. VRDO 3.300% 9/7/06 (2)  29,100  29,100 
    Puerto Rico Housing Finance Corp. Home Mortgage Rev 5.300% 12/1/28  2,590  2,663 
    Puerto Rico Infrastructure Financing Auth. Special Tax Rev 5.500% 7/1/24 (2)  13,000  15,159 
    Puerto Rico Infrastructure Financing Auth. Special Tax Rev 5.500% 7/1/28 (2)  10,200  12,002 
    Puerto Rico Infrastructure Financing Auth. Special Tax Rev 0.000% 7/1/29 (2)  19,805  7,010 
    Puerto Rico Infrastructure Financing Auth. Special Tax Rev 0.000% 7/1/33 (3)  20,000  5,838 
    Puerto Rico Muni. Finance Agency 5.500% 8/1/09 (4)(Prere.)  2,000  2,127 
    Puerto Rico Muni. Finance Agency 5.250% 8/1/19 (4)  5,000  5,381 
    Puerto Rico Public Finance Corp. 5.500% 2/1/12 (Prere.)  3,250  3,541 
    Puerto Rico Public Finance Corp. 6.000% 8/1/26 (ETM)  720  897 
    Puerto Rico Public Finance Corp. 5.500% 8/1/29  1,135  1,204 
    Virgin Islands Public Finance Auth. Rev 5.250% 10/1/18  3,390  3,591 
    Total Municipal Bonds (Cost $1,603,399) 1,666,584
    Other Assets and Liabilities—Net (0.3%) 5,548
    Net Assets (100%) 1,672,132

1 Securities with a value of $2,418,000 have been segregated as initial margin for open futures contracts.
2 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2006, the aggregate value of these securities was $40,111,000, representing 2.4% of net assets.

KEY TO ABBREVIATIONS
ARS - Auction Rate Security.
BAN - Bond Anticipation Note.
COP - Certificate of Participation.
CP - Commercial Paper.
FR - Floating Rate.
GAN - Grant Anticipation Note.
GO - General Obligation Bond.
IDA - Industrial Development Authority Bond.
IDR - Industrial Development Revenue Bond.
PCR - Pollution Control Revenue Bond.
PUT - Put Option Obligation.
RAN - Revenue Anticipation Note.
TAN - Tax Anticipation Note.
TOB - Tender Option Bond.
TRAN - Tax Revenue Anticipation Note.
UFSD - Union Free School District.
USD - United School District.
VRDO - Variable Rate Demand Obligation.
(ETM) - Escrowed to Maturity.
(Prere.) - Prerefunded.

Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Insurance Association).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) FSA (Financial Security Assurance).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty)
The insurance does not guarantee the market value of the municipal bonds.

LOC - Scheduled principal and interest payments are guaranteed by bank letter of credit.

Investment Securities: Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the board of trustees to represent fair value.

At August 31, 2006, the cost of investment securities for tax purposes was $1,604,666,000. Net unrealized appreciation of investment securities for tax purposes was $61,918,000, consisting of unrealized gains of $63,161,000 on securities that had risen in value since their purchase and $1,243,000 in unrealized losses on securities that had fallen in value since their purchase.

Futures Contracts: Futures contracts are valued at their quoted daily settlement prices.

At August 31, 2006, the aggregate settlement value of open futures contracts expiring in December 2006, and the related unrealized appreciation (depreciation) were:

($000)
Futures Contracts Number of
Long (Short)
Contracts		 Aggregate
Settlement
Value		 Unrealized
Appreciation
(Depreciation)
30-Year U.S.Treasury Bond (150) 16,659  5 

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.

Item 2: Controls and Procedures.

(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

(b) Internal Control Over Financial Reporting. During the last fiscal quarter, there was no significant change in the Registrant’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3:

 Exhibits.
(a) Certifications.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VANGUARD NEW JERSEY TAX-FREE FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: October 18, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

VANGUARD NEW JERSEY TAX-FREE FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: October 18, 2006

VANGUARD NEW JERSEY TAX-FREE FUNDS

BY: (signature)
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER

Date: October 18, 2006

*By Power of Attorney. See File Number 002-65955-99, filed on July 27, 2006. Incorporated by Reference.