SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)

   X              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  ---             SECURITIES EXCHANGE ACT OF 1934.

                  For the quarterly period ending March 31, 2003
                                                  ---------------

                                       OR

                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
  ---             OF THE SECURITIES EXCHANGE ACT OF 1934.

                  For the transition period from       to
                                                 -----    -----
                          Commission file number 1-4719

                            THE DELTONA CORPORATION
             (Exact name of registrant as specified in its charter)


            DELAWARE                                       59-0997584
--------------------------------------------------------------------------------
(State of other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                       Identification Number)

 8014 SW 135 STREET ROAD, OCALA, FLORIDA                     34473
--------------------------------------------------------------------------------
(Address of principal executive office)                   (Zip Code)

Registrant's telephone number, including area code      (352)307-8100
                                                   -----------------------------

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of  Securities  Exchange Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X   No
                                      ---    ---

         Indicate the number of shares outstanding of the issuer's classes of
common stock, as of the latest practicable date: 13,544,277 shares of common
stock, $1 par value, excluding treasury stock, as of May 9, 2003.



<PAGE>


                         PART I- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                      -------------------------------------
                      MARCH 31, 2003 AND DECEMBER 31, 2002
                      ------------------------------------
                                 ($000 Omitted)

                                                       March 31,    December 31,
                                                         2003           2002
                                                      -----------   ------------
                                                      (Unaudited)

                                     ASSETS
                                     ------

Cash and cash equivalents, including escrow
 deposits and restricted cash of $801 in 2003
 and $820 in 2002 .................................   $  1,216      $  1,039
                                                      --------      --------
Contracts receivable for land sales - net .........        276           930
                                                      --------      --------
Mortgages and other receivables - net .............         46           139
                                                      --------      --------

Inventories:
 Land and land improvements .......................      7,199         7,237
 Housing ..........................................      2,279         1,754
                                                      --------      --------
         Total inventories ........................      9,478         8,991
                                                      --------      --------

Property, plant, and equipment - net ..............        630           608
Investment in venture .............................         54            70
Prepaid expenses and other ........................        853           967
                                                      --------      --------
       Total ......................................   $ 12,553      $ 12,744
                                                      ========      ========


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                 ----------------------------------------------

Mortgages and similar debt(c):
 Mortgage notes payable - related parties .........   $  2,700      $  3,000
 Other loans - related parties ....................      8,729         8,282
 Other loans ......................................         81            95
                                                      --------      --------
   Total mortgages and similar debt ...............     11,510        11,377

Accounts payable - trade ..........................        817           332
Accrued interest payable - related parties ........      1,663         2,466
Obligation under recourse provisions ..............      2,070         3,088
Accrued expenses and other ........................        566           334
Customers' deposits ...............................      1,362         1,161
Deferred revenue ..................................      4,054         3,818
                                                      --------      --------
   Total liabilities ..............................     22,042        22,576
                                                      --------      --------

Commitments and contingencies:

Stockholders' equity (deficit):

  Preferred stock, $1 par value - authorized
   5,000,000 shares; no shares are issued and
   outstanding, preferences will be determined
   prior to issuance...............................        -0-           -0-

  Common stock, $1 par value - authorized
  15,000,000 shares; outstanding: 13,544,277 shares
  (excluding 12,228 shares held in treasury........     13,544        13,544

Additional paid-in capital.........................     52,555        52,518
Accumulated deficit................................    (75,588)      (75,894)
                                                      --------      --------
         Total stockholders' equity (deficit)......     (9,489)       (9,832)
                                                      --------      --------
                  Total............................   $ 12,553      $ 12,744
                                                      ========      ========

See accompanying notes.

                                        2

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
            ---------------------------------------------------------
                            FOR THE PERIODS INDICATED
                            -------------------------
                     ($000 Omitted Except Per Share Amounts)

                                                          Three Months Ended
                                                      --------------------------
                                                       March 31,      March 31,
                                                         2003           2002
                                                      -----------   ------------
Revenues:
 Net land sales ....................................  $     1,304   $     1,677
 Sales - housing ...................................        1,077           973
 Recognized improvement revenue- prior period sales            49            42
 Gain on termination of recourse obligation ........          872           -0-
 Interest income ...................................           66            69
 Other .............................................          207           202
                                                      -----------   -----------
     Total .........................................        3,575         2,963
                                                      -----------   -----------

Costs and expenses :
 Cost of sales and improvements ....................        1,312         1,251
 Selling, general, administrative and other expenses        1,668         1,450
 Loss in Joint Venture .............................           17             4
 Loss on transfer of contracts receivable ..........          139            33
 Interest expense ..................................          132            92
                                                      -----------   -----------
     Total .........................................        3,268         2,830
                                                      -----------   -----------

Income from operations before income taxes .........          307           133

Provision for income taxes .........................          -0-           -0-
                                                      -----------   -----------

Net income .........................................  $       307   $       133
                                                      ===========   ===========

Net income per common share ........................  $      0.02   $      0.01
                                                      ===========   ===========

Number of common and common equivalent shares ......   13,544,277    13,544,277
                                                      ===========   ===========



See accompanying notes.


                                        3

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                           FOR THE THREE MONTHS ENDED
                           --------------------------
                        MARCH 31, 2003 AND MARCH 31, 2002
                        ---------------------------------
                                 ($000 Omitted)



                                                          Three Months Ended
                                                      --------------------------
                                                       March 31,      March 31,
                                                         2003           2002
                                                      -----------   ------------


Cash flows from operating activities ...............  $  (561)      $ (1,283)
                                                      -------       --------

Cash flows from investing activities:
  Payment for acquisition of equipment .............  $   (48)      $    (18)
                                                      -------       --------

Cash flows from financing activities:
  New borrowings ...................................      800          1,000
  Repayment of borrowings ..........................      (14)           (15)
                                                      -------       --------
         Net cash provided by (used in)financing
        activities .................................      786            985
                                                      -------       --------

Net increase (decrease) in cash and cash equivalents      177           (316)

Cash and cash equivalents, beginning of period .....    1,039            923
                                                      -------       --------

Cash and cash equivalents, end of period ...........  $ 1,216       $    607
                                                      =======       ========





See accompanying notes.


                                        4

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                           FOR THE THREE MONTHS ENDED
                           --------------------------
                        MARCH 31, 2003 AND MARCH 31, 2002
                        ---------------------------------
                                 ($000 Omitted)



                                                          Three Months Ended
                                                      --------------------------
                                                       March 31,      March 31,
                                                         2003           2002
                                                      -----------   ------------

Reconciliation of net income to net cash
 provided by (used in) operating activities:

  Net income .......................................  $    307      $    133
                                                      --------      --------

Adjustments to reconcile net income (loss) to
 net cash provided by (used in) operating
 activities:

  Depreciation and amortization ....................        26            20
  Provision for estimated uncollectible sales
   and Recourse obligation .........................       215           357
  Contract valuation discount, net of
   amortization ....................................        60           (45)
  Equity in loss in joint venture ..................        17             4
  Imputed interest on debt with related party ......        36            25
  Loss on transfer of contracts receivable .........       139            33

Net change in assets and liabilities ...............    (1,361)       (1,810)
                                                       -------       -------
         Total adjustments .........................   $  (868)      $(1,416)
                                                       -------       -------

Net cash provided by (used in) operating
 activities ........................................   $  (561)      $(1,283)
                                                       =======       =======

Supplemental disclosure of non cash investing
         and financing activities:
 Interest expense treated as contribution to
  capital...........................................   $    36       $    25
                                                       =======       =======
 Transfer of contracts receivable for debt
  repayment.........................................   $ 1,693       $   628
                                                       =======       =======



See accompanying notes.


                                        5

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                                 MARCH 31, 2003
                                 --------------

THE INFORMATION PRESENTED HEREIN AS OF MARCH 31, 2003 FOR THE THREE MONTHS ENDED
MARCH 31, 2003 AND 2002 IS UNAUDITED.

(a)  BASIS OF PRESENTATION

     The condensed unaudited financial statements of The Deltona Corporation and
subsidiaries  ("The  Company")  have  been  prepared  pursuant  to the rules and
regulations  of the  Securities  and  Exchange  Commission  (the  "Commission").
Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with accounting  principles generally accepted
in the United  States of America  have been  condensed  or omitted  pursuant  to
Commission rules and regulations.  The information  furnished  reflects,  in the
opinion of management,  all  adjustments  (consisting  only of normal  recurring
adjustments)  necessary  for a fair  statement  of the  results  for the interim
periods  presented.  Operating results for the three months ended March 31, 2003
are not necessarily  indicative of the results that may be expected for the year
ending December 31, 2003.  These  condensed  consolidated  financial  statements
should  be read in  conjunction  with the  financial  statements  and the  notes
thereto included in the Company's latest Annual Report on Form 10-K.

     Certain amounts have been reclassified for comparative purposes.

     The accompanying  financial statements of the Company have been prepared on
a going  concern  basis,  which  contemplates  the  realization  of  assets  and
satisfaction of liabilities in the normal course of business.  The  consolidated
financial   statements   do  not  include  any   adjustments   relating  to  the
recoverability of asset amounts or the amounts of liabilities should the Company
be unable to continue as a going concern.

     The Company has been dependent on its ability to sell or otherwise  finance
contracts  receivable  and/or  secure other  financing  sources to meet its cash
requirements. Additional financing in the amount of $800,000 was required during
the three months ending March 31, 2003 and was funded through  additional  loans
from Swan.  Additional  financing will be required in the future.  Although Swan
has  loaned  the  Company  additional  funds  to be  paid  back  with  contracts
receivable at the rate of 90% of face value, with recourse since 1999, there can
be no guarantee that the Company will be able to generate sufficient receivables
to obtain sufficient financing in the future or that the Company will be able to
obtain financing from Yasawa,  Scafholding,  Swan and other related parties,  or
from unrelated parties.

(b)  INVENTORIES

     Information  with  respect to the  classification  of inventory of land and
improvements  including  land  held  for  sale or  transfer  is as  follows  (in
thousands):

                              Land and Improvements
                              ---------------------

                                                     March 31,      December 31,
                                                      2003              2002
                                                    -----------     ------------
     Unimproved land.............................   $    420        $    420
     Land in various stages of development.......      2,714           2,622
     Fully improved land.........................      4,065           4,195
                                                    --------        --------
            Total................................   $  7,199        $  7,237
                                                    ========        ========

(c)  MORTGAGES AND SIMILAR DEBT

     As of  March  31,  2003,  the  Company's  outstanding  debt to  Yasawa  was
$2,700,000  secured by a first lien on the Company's  receivables and a mortgage
on all of the  Company's  properties.  The terms of repayment of the Yasawa loan
provide for  $100,000  of monthly  payments of  principal  in cash or  contracts
receivable at 100% of face value,  with recourse.  Interest accrues at the prime
rate adjusted semi-annually to the then current rate of 4.75% for 2002 and 4.25%
effective  January 1, 2003.  The Company  satisfied its principal  obligation to
Scafholding as of December 31, 1999.  Yasawa and  Scafholding  have not required
the Company to make interest  payments since  September 1, 1998. As of March 31,
2003,

                                        6

<PAGE>



the total amount of interest  accrued on the Yasawa and Scafholding  obligations
is approximately $1,663,000, which is included in accrued interest.

     During the three months  ended March 31,  2003,  Swan loaned the Company an
additional   $800,000  so  that  it  was  able  to  meet  its  working   capital
requirements.  The Company's debt to Swan as of March 31, 2003, of $8,729,000 is
secured by a second lien on the Company's receivables. Swan has agreed to accept
contracts  receivable  at 90% of face value,  with  recourse,  in payment of the
Company's  obligation to Swan. The Company  recognizes a loss on the transfer of
contracts at less than face value.  The amount of each  monthly  payment will be
dependent  upon the amount of contracts  receivable in the Company's  portfolio.
Each month, the Company is required to transfer to Swan , as debt repayment, all
current contracts  receivable in the Company's  portfolio in excess of $500,000,
including  contracts  that have not yet met the  Company's  revenue  recognition
criteria.  Swan does not  charge  interest  for the first  six  months  after an
advance;   thereafter,   the  interest   accrues  at  the  prime  rate  adjusted
semi-annually  to the then  current  rate of 4.75% for 2002 and 4.25%  effective
January 1, 2003.  As of March 31, 2003,  the Company paid the accrued and unpaid
interest on the Swan notes  through the transfer of contracts  receivable at 90%
of their face value.

     The Company  records  interest  expense for all  borrowing at the Company's
incremental  borrowing  rate,  which is  currently  the  prime  rate.  Since the
interest  does not  accrue for the first six  months of each loan  advance  from
Swan,  the interest  calculated is expensed and recorded as  additional  paid-in
capital.  This amount was approximately $37,000 for the three months ended March
31, 2003.

     In the future,  if the Company elects to do so, Yasawa and Scafholding have
agreed to purchase contracts receivable at 65% of face value, with recourse. The
Company has an agreement with Swan whereby Swan may loan the Company funds to be
repaid with contracts receivable at 90% of face value, with recourse.

     Indebtedness  under various purchase money mortgages and loan agreements is
collateralized by substantially all of the Company's assets,  including stock of
wholly-owned subsidiaries.

     The  Company  has an  agreement  with  Scafholding  and Citony  Development
Corporation  for the  servicing  of their  receivable  portfolios.  The  Company
received  approximately $18,000 and $17,000, in the three months ended March 31,
2003 and 2002,  respectively,  in  revenue  pursuant  to these  agreements.  The
Company also  services the Swan  receivable  portfolio,  which  consisted of 954
contracts  (approximately  $11,506,000) as of March 31, 2003; however,  the Swan
portfolio  is  serviced  at no  charge to Swan  under  the  Trust and  Servicing
Agreement.

(d)  COMMITMENTS AND CONTINGENCIES

     Homesite  sales  contracts  provide  for the return of all  monies  paid in
(including   paid-in  interest)  should  the  Company  be  unable  to  meet  its
contractual  obligations after the use of reasonable  diligence.  If a refund is
made, the Company will recover the related homesite and any improvement thereto.

(e)  CAPITALIZED INTEREST

     The  Company   capitalizes   interest  cost  incurred  during  a  project's
construction  period.  Interest incurred was $136,000 and $129,000 for the three
months ended March 31, 2003 and 2002,  respectively  of which $5,000 and $37,000
was   capitalized   for  the  three  months  ended  March  31,  2003  and  2002,
respectively.

(f)  EARNINGS OR LOSS PER SHARE

     Basic earnings (loss) per common and common  equivalent share were computed
by dividing net income (loss) by the weighted average number of shares of Common
Stock and common stock equivalents outstanding during each period.

(g)  CAPITAL TRANSACTION

     In 2002, the Company filed a Form 13E(3) and a preliminary  proxy statement
related to a proposed going private  transaction.  These documents are currently
being reviewed by the SEC staff. These filings were done pursuant to actions

                                        7

<PAGE>



by the  Board of  Directors.  On  December  13,  2001,  the  Board of  Directors
approved,  subject to stockholder approval, a 1 for 500,000 reverse split of the
Company's  common  stock and a related  amendment to the  Company's  Articles of
Incorporation  reducing  the  number of  authorized  shares to 30.  Based on the
current common  stockholdings,  if voted and approved by the  stockholders,  the
reverse  split  will  reduce  the number of the  Company's  stockholders  to two
stockholders: Selex International, B.V., a Netherlands corporation ("Selex") and
Yasawa Holdings,  N.V., a Netherlands Antilles corporation ("Yasawa").  The date
of the meeting of  stockholders to consider both matters will be determined upon
the  conclusion of the review and  subsequent  amendments to the  disclosures in
preliminary proxy statement and Form13E(3) filings.

(h)  REPURCHASE OF CONTRACTS AND TERMINATION OF RECOURSE OBLIGATION

     On March 7, 2003,  the Company  closed on an agreement that resulted in the
termination of its repurchase  obligation on contracts  receivable  sold in 1990
and 1992. The termination of this recourse obligation covering  approximately $1
million of contracts receivable, substantially all of which were non-performing,
resulted  in a  one-time  gain  on  termination  of  a  recourse  obligation  of
approximately  $872,000 and a reduction in the liability for  "Obligation  under
recourse provisions".  In terminating the obligation,  the Company acquired over
200 contracts receivable, substantially all of which are non-performing, each of
which is  collateralized  by an improved  vacant  residential  lot, and over 150
lots,  which  were  added to the  Company's  land  inventory.  As a part of this
transaction,  the  Company  received  lots  that are  being  conveyed  to Citony
Development  Corporation  pursuant to a 1992 purchase agreement,  which conveyed
all of the Company's property in the Citrus Springs  subdivision,  including any
lots  reacquired  under  this  transaction.  The  aggregate  costs  incurred  of
approximately  $215,000 were assigned to (a) $50,000 to contracts receivable for
the net value of contracts  expected to be  collected;  and (b) $165,000 to land
for the  remaining  value,  attributed  to the land  acquired and the land to be
acquired through the normal collateral process.

(i)  INCOME TAXES

     For the quarters ending March 31 2003 and 2002, the Company reported income
for financial  reporting  purposes,  and a net loss for tax purposes through the
utilization  of the benefit of net operating loss  carry-forwards.  Although the
Company utilized the tax benefit carry-forwards in these quarters,  there can be
no  assurance  that the Company  will  generate  taxable  income for the year or
utilize any of the carry-forward benefits.

(j)  SUBSEQUENT EVENTS

     On April 30, 2003, Florida Water Services sent the Company notice that they
believe  that  Marion  County  intends to acquire  their  assets in Marion  Oaks
subdivision  through a condemnation  action.  Florida Water stated that they are
not aware of "if or when" such  action may occur.  If this action were to occur,
it is expected that Marion County would replace Florida Water as the provider of
water and  sewer  services  within  Marion  Oaks  subdivision.  Without  further
information  concerning the timing and consequences of the potential action, the
financial and operational impact upon the Company is not known.







                                                         8

<PAGE>



ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
              RESULTS OF OPERATIONS

     This report on Form 10-Q of the  Company  for the  quarter  ended March 31,
2003 contains certain forward- looking  statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934,  as amended,  which are intended to be covered by the safe
harbors created thereby.  To the extent that such statements are not recitations
of historical fact, such statements constitute forward-looking statements which,
by definition, involve risks and uncertainties. In particular,  statements under
Items 1 and 2, contain forward-looking statements. Where, in any forward-looking
statement,  the Company  expresses an expectation or belief as to future results
or events, such expectation or belief is expressed in good faith and believed to
have  reasonable  basis,  but there can be no  assurance  that the  statement of
expectation or belief will result or be achieved or accomplished.

     All of the above  estimates  are based on the current  expectations  of our
management  team,  which  may  change  in the  future  due to a large  number of
potential events, including unanticipated future developments.

     The following factors are factors that could cause actual results or events
to differ materially from those  anticipated,  and include,  but are not limited
to: the  availability  of operating  capital,  general  economic,  financial and
business  conditions;   competition  for  customers  in  the  single-family  and
multi-family  home  market;  the  costs  of  construction;  and  changes  in and
compliance with governmental regulations.

RESULTS OF OPERATIONS
---------------------

     For the three months ended March 31, 2003 and March 31, 2002.

Revenues
--------

     Total revenues were  $3,575,000 for the first three months of 2003 compared
to $2,963,000 for the comparable 2002 period.

     New retail land sales contracts  entered into,  including  deposit sales on
which  the  Company  has  received  less  than 20% of the  sales  price,  net of
cancellations,  for the  three  months  ended  March  31,  2003  and  2002  were
$1,578,000  and  $2,064,000,   respectively.   The  Company  had  a  backlog  of
approximately  $2,549,000  in  unrecognized  sales as of March  31,  2003.  Such
contracts are not included in retail land sales until the applicable  rescission
period has expired and the Company has  received  payments  totaling  20% of the
contract  sales  price.  The  decrease  in  sales  reflects  lower  sales by the
Company's independent dealers for the period.

     Housing  revenues were $1,077,000 for the first three months of 2003 versus
$973,000 for the  comparable  2002  period.  Revenues  are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues  increased  as a result of more homes being  closed in the period.  The
backlog of houses under  contract was  $9,977,000 and $6,282,000 as of March 31,
2003 and 2002, respectively.

     The following  table reflects the Company's real estate product mix for the
periods indicated (in thousands):

                                                     Three Months Ended
                                                  March 31,          March 31,
                                                    2003               2002
                                                  ---------          ---------

         Gross land sales..................       $   1,578          $   2,064
         Housing Sales.....................           1,077                973
                                                  ---------          ---------
                  Total Real Estate               $   2,655          $   3,037
                                                  =========          =========

     Improvement  revenues  result from  recognition  of revenues  deferred from
prior period  sales.  Recognition  occurs as  development  work  proceeds on the
previously  sold  property  or  customers  are  exchanged  to a  developed  lot.
Improvement  revenues  totaled $49,000 for the first three months of 2003 versus
$42,000 for the comparable 2002 period.


                                        9

<PAGE>



     Interest  income was  $66,000  for the first  three  months of 2003  versus
$69,000 for the comparable period in 2002.

     Other  revenues were $207,000 for the three months of 2003 versus  $202,000
for the comparable  period in 2002. Other revenues are principally  generated by
the Company's title insurance and real estate brokerage subsidiaries.

Costs and Expenses
------------------

     Costs and  expenses  were  $3,268,000  for the first  three  months of 2003
versus $2,830,000 for the comparable period in 2002.

     Cost of sales  increased to $1,312,000  for the first three months of 2003,
versus  $1,251,000  for the comparable  period in 2002 due to increased  housing
sales.

     Commissions,  advertising and other selling expenses totaled $1,019,000 for
the three  months of 2003 versus  $959,000  for the  comparable  period in 2002.
General and administrative  expenses were $416,000 for the first three months of
2003 versus $347,000 for the comparable  period in 2002 as a result of increased
overhead  expenses.  Real estate tax expenses  were $233,000 for the first three
months of 2003 versus $144,000 for the comparable period in 2002.

     Interest  expense was $132,000 for the first three months of 2003  compared
to $96,000 for the first three months of 2002.  The interest  expense  increased
due to less interest being  capitalized for development  costs and increased due
to increased  outstanding debt. For an expanded discussion of the Company's debt
agreements, see the following section, "Liquidity and Capital Resources".

Net Income
----------

     The Company  reported  net income of $307,000 for the first three months of
2003 versus a net income of $133,000 for the comparable  period in 2002. The net
income is due to a non-cash gain of $872,000 on the  termination of a repurchase
obligation on contracts that had been sold in 1990 and 1992.

Regulatory Developments which may affect Future Operations
----------------------------------------------------------

     In Florida, as in many growth areas, local governments have sought to limit
or control population growth in their communities  through  restrictive  zoning,
density reduction,  the imposition of impact fees and more stringent development
requirements.  Although the Company has taken such factors into consideration in
its master  plans by  agreeing,  for example,  to make  improvements,  construct
public  facilities and dedicate  certain  property for public use, the increased
regulation  has  lengthened  the  development  process and added to  development
costs.

     The implementation of the Florida Growth Management Act of 1985 (the "Act")
precludes  the issuance of  development  orders or permits if public  facilities
such  as  transportation,  water  and  sewer  services  will  not  be  available
concurrent  with  development.  Development  orders have been  issued  for,  and
development  has  commenced  in,  the  Company's   existing   communities  (with
development  being  completed  in  certain  of  these  communities).  Thus,  the
Company's  communities  are  less  likely  to be  affected  by  the  new  growth
management policies than future communities. Any future communities developed by
the Company will be strongly impacted by new growth management  policies.  Since
the Act and its implications are  consistently  being  re-examined by the State,
together  with  local  governments  and  various  state and  local  governmental
agencies,  the Company  cannot  further  predict the timing or the effect of new
growth management policies,  but anticipates that such policies may increase the
Company's permitting and development costs.

     The Company's land sales activities are further subject to the jurisdiction
of the laws of various states in which the Company's  properties are offered for
sale.  In  addition,  Florida  and other  jurisdictions  in which the  Company's
properties  are offered for sale have  strengthened,  or may  strengthen,  their
regulation  of  subdividers  and  subdivided  lands in order to provide  further
assurances to the public. The Company has attempted to take appropriate steps to
modify its marketing programs and registration  applications in the face of such
increased  regulation,  but has  incurred  additional  costs  and  delays in the
marketing of certain of its  properties  in certain  states and  countries.  For
example,  the Company has complied with the  regulations of certain states which
require  that the Company  sell its  properties  to  residents  of those  states
pursuant to a deed and  mortgage  transaction,  regardless  of the amount of the
down payment. The Company intends to continue to monitor any changes in statutes
or regulations  affecting,  or anticipated to affect, the sale of its properties
and intends to take

                                       10

<PAGE>



all  necessary  and  reasonable  action to assure  that its  properties  and its
proposed marketing  programs are in compliance with such regulations,  but there
can be no  assurance  that the  Company  will be able to timely  comply with all
regulatory  changes in all  jurisdictions in which the Company's  properties are
presently offered for sale to the public.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

     Mortgages and Similar Debt

     As of  March  31,  2003,  the  Company's  outstanding  debt to  Yasawa  was
$2,700,000  secured by a first lien on the Company's  receivables and a mortgage
on all of the  Company's  properties.  The terms of repayment of the Yasawa loan
provide for  $100,000  of monthly  payments of  principal  in cash or  contracts
receivable at 100% of face value,  with recourse.  Interest accrues at the prime
rate adjusted semi-annually to the then current rate of 4.75% for 2002 and 4.25%
effective  January 1, 2003.  The Company  satisfied its principal  obligation to
Scafholding as of December 31, 1999.  Yasawa and  Scafholding  have not required
the Company to make interest  payments since  September 1, 1998. As of March 31,
2003,  the total  amount of  interest  accrued  on the  Yasawa  and  Scafholding
obligations is approximately $1,663,000, which is included in accrued interest.

     During the three months  ended March 31,  2003,  Swan loaned the Company an
additional   $800,000  so  that  it  was  able  to  meet  its  working   capital
requirements.  The Company's debt to Swan as of March 31, 2003, of $8,729,000 is
secured by a second lien on the Company's receivables. Swan has agreed to accept
contracts  receivable  at 90% of face value,  with  recourse,  in payment of the
Company's  obligation to Swan. The Company  recognizes a loss on the transfer of
contracts at less than face value.  The amount of each  monthly  payment will be
dependent  upon the amount of contracts  receivable in the Company's  portfolio.
Each month, the Company is required to transfer to Swan , as debt repayment, all
current contracts  receivable in the Company's  portfolio in excess of $500,000,
including  contracts  that have not yet met the  Company's  revenue  recognition
criteria.  Swan does not  charge  interest  for the first  six  months  after an
advance;   thereafter,   the  interest   accrues  at  the  prime  rate  adjusted
semi-annually  to the then  current  rate of 4.75% for 2002 and 4.25%  effective
January 1, 2003.  As of March 31, 2003,  the Company paid the accrued and unpaid
interest on the Swan notes  through the transfer of contracts  receivable at 90%
of their face value.

     The Company  recognizes  the  preferential  cost of borrowing from Swan and
other  related  parties  by  recording  the  difference  between  the  Company's
incremental  borrowing rate and the contractual  obligation rate as (i) interest
expense  and  (ii) a  capital  contribution.  The  Company  recorded  a  capital
contribution  of  $78,000,  $170,000  and  $407,000  in  2002,  2001  and  2000,
respectively, due to the preferential cost of funds from affiliated companies.

     Substantially all of the Company's assets are pledged as collateral for its
various  obligations.  The Company's  outstanding debt to Yasawa is secured by a
first lien on the Company's  receivables  and a mortgage on all of the Company's
property; and the Company's outstanding debt to Swan is secured by a second lien
on the Company's receivables.

     Contracts and Mortgages Receivable Sales and Transfers

     Approximately $20 million of outstanding contracts receivable had been sold
or  transferred by the Company  subject to recourse  obligations as of March 31,
2003.  There are no funds on  deposit  with  purchasers  of the  receivables  as
collateral for the recourse  obligations.  A provision has been  established for
the Company's  obligation under the recourse  provisions of which  approximately
$2,070,000 remains at March 31, 2003.

     The  Company  has an  agreement  with  Scafholding  and Citony  Development
Corporation  for the  servicing  of their  receivable  portfolios.  The  Company
received  approximately $18,000 and $17,000, in the three months ended March 31,
2003 and 2002,  respectively,  in  revenue  pursuant  to these  agreements.  The
Company also has an  agreement  with Swan for the  servicing  of its  receivable
portfolio; however, the Company does not receive servicing fees from Swan.

     In the future,  if the Company elects to do so, Yasawa and Scafholding have
agreed to purchase contracts receivable at 65% of face value, with recourse. The
Company has an agreement with Swan whereby Swan may loan the Company funds to be
repaid with contracts receivable at 90% of face value, with recourse.




                                       11

<PAGE>



 Other Obligations

     Currently,  the Company has an  obligation  to complete  land  improvements
prior to sale.  Prior to 1991,  the Company had an  obligation  to complete land
improvements upon deeding which, depending on contractual provisions,  typically
occurred within 90 to 120 days after the completion of payments by the customer.
The estimated cost to complete  improvements to lots and tracts from which sales
have been made is included in deferred revenue.

 Liquidity

     Retail land sales have  traditionally  produced  negative  cash flow at the
point of sale.  This is a result of (I)  regulatory  requirements  to sell fully
developed lots,  (ii) the payment of marketing and selling  expenses prior to or
shortly  after the point of sale,  and (iii) the  collection of payments on sold
lots  over  2-10  years.  In an effort to  offset  these  cash flow  effects  of
installment  land  sales,  the  Company is  directing  a greater  portion of its
marketing  efforts to the sale of lots with homes.  The Company is now  offering
lots for sale in compulsory  building  areas where a lot purchaser must complete
payments for the lot and construct a home within a limited period of time.

     The Company is dependent  on its ability to sell or  otherwise  finance its
contracts   receivable   and/or   secure  other   financing  to  meet  its  cash
requirements.  Since 1992,  the Company has been  largely  dependent  on Yasawa,
Scafholding  and Swan and related  parties for the financing of its  operations.
Although  Scafholding has purchased contracts  receivables at the rate of 65% of
face value, with recourse,  and Swan has loaned the Company  additional funds to
be paid back with  contracts  receivable at the rate of 90% of face value,  with
recourse,  there can be no  guarantee  that the Company will be able to generate
sufficient  receivables to obtain  sufficient  financing in the future,  nor can
there be any guarantee that Yasawa, Scafholding, Swan and other related parties,
or unrelated third party lenders will continue to make loans to the Company.


                                       12

<PAGE>



ITEM 3

            QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     The estimated fair values of financial  instruments have been determined by
the  Company  using  available  market  information  and  appropriate  valuation
methods.  Considerable  judgment  is  required  in  interpreting  market data to
develop the estimates of fair value. Accordingly, the estimates presented herein
are not necessarily indicative of the amounts the Company could realize or incur
in a current market transaction.  The use of different market assumptions and/or
estimation  methods  may have a  material  effect on the  estimated  fair  value
amounts.   The  Company's  financial   instruments  consist  of  cash  and  cash
equivalents,  contracts and mortgages  receivable  and similar debt.  The stated
amount of cash and cash equivalents is a reasonable  estimate of fair value. The
fair value of  contracts  and  mortgages  receivable  and similar  debt has been
estimated using interest rates currently available for similar terms. The stated
value of the  contracts and mortgages  receivable  and similar debt  approximate
fair value.

     Management  does not use  derivatives  to  manage  its  exposure  to market
interest rate risk.

     The  Company's  exposure  to market  interest  rate  risk on its  contracts
receivable has been minimized by the terms of its credit facilities  agreements.
Under the credit agreements, all excess contracts are transferred to paydown the
debt obligation.  Therefore, it is expected that the Company will have less than
$500,000 of current contracts  receivable in the portfolio at any time. Prior to
March  2003,  the Company was also  required  to maintain  contracts  receivable
adequate to cover the third party recourse obligation for contracts sold in 1990
and 1992. This recourse obligation was settled in March 2003.

     Contracts  receivable consists of fixed interest rate paper with an initial
collection term generally of ten years. The stated interest rate is below market
interest rates for similar paper.  The Company  periodically  adjusts the stated
rate on new  contracts  in response to changes in the market  interest  rate and
other  competitive  sales  factors.  The Company  discounts the contracts  notes
receivable to current  market rates.  At March 31, 2003, the average stated rate
for contracts receivable was 9%, and the discount rate used was 13.5%. Under its
credit  agreement,  the Company is required  to  transfer  all excess  contracts
receivable  as  defined  to  a  creditor  for  debt  reduction.   The  Company's
outstanding  contracts  receivable,  net of allowance for  cancellations  before
valuation  adjustment was $310,000 at March 31, 2003. The unamortized  valuation
adjustment  at  March  31,  2003 was  $34,000.  Management  estimates  that a 1%
increase in the market  interest  rate equals a valuation  discount  increase of
approximately $10,000, which would reduce net income.

     The Company also has exposure to market  interest rate risk on  outstanding
debt. As of March 31, 2003, the Company has  outstanding  debt of  approximately
$11,510,000.  The stated interest rate, which is adjusted semi-annually,  is the
prime  rate,  which was 4.25% at January 1, 2003.  The  outstanding  debt has no
standard  repayment  term:  it is  dependant on the  Company's  sales and future
contracts  receivable.  Under the assumption that additional  borrowing would be
approximate to any debt repayment,  the Company  estimates that a 1% increase in
the market interest rate equals an increase in interest expense of approximately
$115,000, which would reduce net income.

                                       13

<PAGE>


ITEM 4
                             CONTROLS AND PROCEDURES


     We maintain  disclosure controls and procedures that are designed to insure
the  information  required  to be  disclosed  in our  Exchange  Act  reports  is
recorded,  processed,  summarized and reported within the time periods specified
in the SEC's  rules and forms,  and that such  information  is  accumulated  and
communicated  to our management,  including the Chief Executive  Officer and the
Chief Financial  Officer,  as appropriate,  to allow timely decisions  regarding
required  disclosure.  Management  necessarily applied its judgment in assessing
the costs and benefits of such controls and procedures  which,  by their nature,
can provide only reasonable assurance regarding management's control objectives.

     Within  90 days  prior  to the  date  of this  report,  we  carried  out an
evaluation, under the supervision and with the participation of our management ,
including  the Chief  Executive  Officer  and the Chief  Financial  Officer,  an
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  pursuant to the exchange Act Rule 13a-14.  Based upon the foregoing,
our Chief  Executive  Officer along with our Chief Financial  Officer  concluded
that our disclosure  controls and  procedures  are effective in timely  alerting
them to material  information relating to the Company required to be included in
our Exchange Act reports.

     There have been no significant changes in our internal controls or in other
factors which could  significantly  affect internal  controls  subsequent to the
date we carried out our evaluation.



                                       14

<PAGE>



                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

          (a)  Exhibits

                    See attached Exhibit 99.1 for  Certification  pursuant to 18
                    U.S.C.  Section 1350, as adopted  pursuant to Section 906 of
                    the  Sarbanes  - Oxley  Act of 2002  (CEO  Certification  by
                    Antony Gram)

                    See attached Exhibit 99.2 for  Certification  pursuant to 18
                    U.S.C.  Section 1350, as adopted  pursuant to Section 906 of
                    the  Sarbanes  - Oxley  Act of 2002  (CFO  Certification  by
                    Robert O. Moore)

          (b)  Reports on Form 8-K

                     None.





                                    SIGNATURE



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



                                             THE DELTONA CORPORATION



Date: May 13, 2003                           By: /s/Robert O. Moore
                                             ---------------------------
                                             Robert O. Moore,
                                             Treasurer & Chief Financial Officer


                                       15


<PAGE>



                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER


I, Antony Gram, certify that:

1.   I have  reviewed  this  quarterly  report  on  Form  10-Q  of  The  Deltona
     Corporation;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

/s/   Antony Gram
----------------------------------
Antony Gram, Chairman, President,
  and Chief Executive Officer

May 9, 2003

                                       16

<PAGE>



                    CERTIFICATION OF CHIEF FINANCIAL OFFICER


I, Robert O Moore, certify that:

1.   I have  reviewed  this  quarterly  report  on  Form  10-Q  of  The  Deltona
     Corporation;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly  report  whether  there  were  significant  changes  in  internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

/s/ Robert O Moore
--------------------------
Robert O Moore, Treasurer
  and Chief Financial Officer

May 9, 2003



                                       17

<PAGE>