Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
DEMPSEY WILLIAM M
   2. Issuer Name and Ticker or Trading Symbol
COMMUNITY BANK SYSTEM INC [CBU] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
3003 GULFSHORE BLVD., NORTH, APT. #202		 3. Date of Earliest Transaction (Month/Day/Year)
12/31/2006
(Street)

NAPLES, FL 34103		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 01/01/2007   M   336 A $ 0 3,780.784 (1) D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option $ 22.94 01/17/2007   A   3,817   01/17/2007 01/17/2017 Common Stock 3,817 $ 0 3,817 D  
Phantom Stock (Stock Balance Plan) (2) 01/17/2007   A   949.72     (3)   (3) Common Stock 949.72 $ 0 14,800.3 D  
Deferred Stock (Deferred Comp.) (4) 12/31/2006   A   847.8497     (5)   (5) Common Stock 847.8497 $ 0 5,147.26 D  
Deferred Stock (Deferred Comp.) (4) 01/01/2007   M     336   (5)   (5) Common Stock 336 $ 0 4,811.26 D  
Deferred Stock (Deferred Comp.) (4) 01/10/2007   A   42.9328     (5)   (5) Common Stock 42.9328 $ 0 4,854.1928 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
DEMPSEY WILLIAM M
3003 GULFSHORE BLVD., NORTH
APT. #202
NAPLES, FL 34103		   X      

Signatures

 Donna J. Drengel, as attorney-in-fact, pursuant to a power of attorney   01/19/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 29.692, 31.205, 29.301, and 29.469 shares acquired on April 10, 2006, July 10, 2006, October 10, 2006, and January 10, 2007, respectively, under the Community Bank System, Inc. Dividend Reinvestment Plan.
(2) Each phantom stock unit is the economic equivalent of one share of Community Bank System, Inc. common stock.
(3) Phantom Stock (Stock Balance Plan) may be settled upon the later of the reporting person's attainment of age 55 or termination of service on Community Bank System, Inc.'s Board of Directors.
(4) Each deferred stock unit entitles the reporting person to receive one share of Community Bank System, Inc. common stock.
(5) Awards relating to the Deferred Stock units (Deferred Comp. Plan) may be settled upon the reporting person's attainment of age 64.

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