Delaware Distributors, L.P. 2005 Market Street Philadelphia, PA 19103

Ex.99.e.iii

Delaware Distributors, L.P.
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August 27, 2008

Voyageur Mutual Funds III
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Re: Expense Limitation

Ladies and Gentlemen:

By our execution of this letter agreement (the “Agreement”), intending to be legally bound hereby, Delaware Distributors, L.P. (the “Distributor”) agrees that in order to improve the performance of the Class R Shares of Delaware Select Growth Fund, which is a series of Voyageur Mutual Funds III, the Distributor shall waive a portion of the Rule 12b-1 (distribution) fees for the Fund’s Class R shares, so that the Fund’s Rule 12b-1 (distribution) fees with respect to its Class R shares will not exceed 0.50%, for the period September 1, 2008 through August 31, 2009.

The Distributor acknowledges that it shall not be entitled to collect on, or make a claim for, waived fees at any time in the future.

	Delaware Distributors, L.P.
	By:	/s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
		Name:	▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
		Title:	Executive Vice President
		Date:	August 27, 2008

Your signature below acknowledges
acceptance of this Agreement:

Voyageur Mutual Funds III

By:	/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
	Name:	▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
	Title:	President
	Date:	August 27, 2008