Toledo fired a 6-under 66 in round three and posted 15-under-par 201. Delsing joined him there at Somerby Golf Club after a bogey-free round.
Former American Ryder Cupper Chris Riley (67), Greg Chalmers (67) and Jason Enloe (66) are knotted in third place at 14-under-par 202.
Delsing wasted little time in breaking into red numbers for the day. He tallied birdies at the second and fourth holes to reach 13 under par for the championship.
He went on a par binge with six consecutive until a birdie at the par-5 11th. Delsing, a college teammate of Corey Pavin and Steve Pate at UCLA, birdied the 15th to join Toledo in the lead.
'I'm fired up for tomorrow,' said Delsing, a two-time winner on the Nationwide Tour. 'I am excited, but tonight will be a restful night. I hope to come out tomorrow to do the same things I've been doing. I'll be mentally prepared and I'll be looking forward to it.'
Toledo, who began the round tied for fourth place, recorded three birdies in his first seven holes to get to 12-under par. He too birdied the par-5 11th, then parred the next four.
Toledo, who owns one Nationwide Tour win, birdied 16 and 18 to get into the clubhouse at minus-15.
He credits his success this week to a family vacation last week.
'We had a wonderful time on the beach,' Toledo said. 'It was great to be with my family. I came back very fresh and ready to go. This course is beautiful, the people are great. The food here is fantastic. I really enjoy this place.'
Patrick Sheehan (66), Brad Elder (67), Richard Johnson (68), Jeremy Anderson (69) and Lee Williamson (69) are knotted in sixth place at 13-under-par 203.
Mark Brooks, the 1996 PGA Champion who was tied for fourth place after Friday's second round, only managed a 2-under 70 and is part of a group tied for 14th at minus-11.