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 June 30, 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 August 4, 2003.



<PAGE>



                          PART I- FINANCIAL INFORMATION
                          =============================

ITEM 1.     FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                      -------------------------------------
                       JUNE 30, 2003 AND DECEMBER 31, 2002
                       -----------------------------------
                                 ($000 Omitted)


                                                      June 30,      December 31,
                                                        2003            2002
                                                    ------------    ------------
                                                    (Unaudited)
<S>                                                 <C>             <C>
                         ASSETS
                         ------

Cash and cash equivalents, including escrow
 deposits and restricted cash of $843 in 2003
 and $820 in 2002 .............................     $  1,405        $  1,039
                                                    --------        --------
Contracts receivable for land sales - net .....          204             930
                                                    --------        --------
Mortgages and other receivables - net .........           75             139
                                                    --------        --------

Inventories:
 Land and land improvements ...................        6,850           7,237
 Housing ......................................        2,124           1,754
                                                    --------        --------
        Total inventories .....................        8,974           8,991
                                                    --------        --------

Property, plant, and equipment - net ..........          605             608
Investment in venture .........................           36              70
Prepaid expenses and other ....................        1,042             967
                                                    --------        --------
        Total .................................     $ 12,341        $ 12,744
                                                    ========        ========


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

Mortgages and similar debt:
 Mortgage notes payable - related parties .....     $  2,400        $  3,000
 Other loans - related parties ................        8,098           8,282
 Other loans ..................................           67              95
                                                    --------        --------
   Total mortgages and similar debt ...........       10,565          11,377

Accounts payable - trade ......................        1,073             332
Accrued interest payable - related parties ....        1,694           2,466
Obligation under recourse provisions ..........        2,625           3,088
Accrued expenses and other ....................          845             334
Customers' deposits ...........................        1,896           1,161
Deferred revenue ..............................        3,383           3,818
                                                    --------        --------
   Total liabilities ..........................       22,081          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 ....................       52,590          52,518
Accumulated deficit ...........................      (75,874)        (75,894)
                                                    --------        --------
        Total stockholders' equity (deficit) ..       (9,740)         (9,832)
                                                    --------        --------
              Total ...........................     $ 12,341        $ 12,744
                                                    ========        ========

See accompanying notes.

</TABLE>
                                        2

<PAGE>

<TABLE>
<CAPTION>


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


                                            Six Months Ended               Three Months Ended
                                         ----------------------          ----------------------
                                         June 30,      June 30,          June 30,      June 30,
                                           2003          2002              2003          2002
                                         --------      --------          --------      --------
<S>                                      <C>           <C>               <C>           <C>
Revenues:
 Net land sales...................       $ 2,885       $ 3,112           $ 1,581       $  1,435
 Sales - Housing..................         3,438         2,335             2,361          1,362
 Recognized improvement revenue-
  prior period sales..............            99           129                51             88
 Gain on termination of recourse
  obligation......................           872           -0-               -0-            -0-
 Interest income..................           131           226                64            157
 Other ...........................           331           418               123            215
                                         -------       -------           -------       --------
     Total........................         7,756         6,220             4,180          3,257
                                         -------       -------           -------       --------

Costs and expenses :
 Cost of sales and improvements ..         3,741         2,844             2,430          1,594
 Selling, general, administrative
  and other expenses..............         3,485         2,995             1,818          1,544
 Loss in Joint Venture............            34             4                17            -0-
 Loss on transfer of contracts
  receivable......................           217            74                77             41
 Interest expense.................           258           217               127            125
                                         -------       -------           -------       --------
     Total........................         7,735         6,134             4,469          3,304
                                         -------       -------           -------       --------

Income (loss) from operations
 before income taxes..............            21            86              (289)           (47)

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

Net income (loss).................       $    21       $    86           $  (289)      $    (47)
                                         =======       =======           =======       ========

Net income (loss)per common share.       $  0.00       $  0.01           $ (0.02)      $  (0.00)
                                         =======       =======           =======       ========

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



See accompanying notes.
</TABLE>


                                        3

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE SIX MONTHS ENDED
                            ------------------------
                         JUNE 30, 2003 AND JUNE 30, 2002
                         -------------------------------
                                 ($000 Omitted)

                                                            Six Months Ended
                                                         -----------------------
                                                           June 30,   June 30,
                                                             2003       2002
                                                         ----------- -----------

<S>                                                      <C>         <C>
Cash flows from operating activities .................   $  (356)    $(1,676)
                                                         -------     -------

Cash flows from investing activities:
  Payment for acquisition of equipment ...............   $   (50)    $   (44)
                                                         -------     -------

Cash flows from financing activities:
  New borrowings .....................................       800       1,644
  Repayment of borrowings ............................       (28)        -0-
                                                         -------     -------
       Net cash provided by (used in)financing
        activities ...................................       772       1,644
                                                         -------     -------

Net increase (decrease) in cash and cash equivalents..       366         (76)

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

Cash and cash equivalents, end of period .............   $ 1,405     $   847
                                                         =======     =======





See accompanying notes.
</TABLE>


                                        4

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
            ---------------------------------------------------------
                            FOR THE SIX MONTHS ENDED
                            ------------------------
                         JUNE 30, 2003 AND JUNE 30, 2002
                         -------------------------------
                                 ($000 Omitted)


                                                            Six Months Ended
                                                         -----------------------
                                                           June 30,   June 30,
                                                             2003       2002
                                                         ----------- -----------
<S>                                                      <C>         <C>

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

  Net income .........................................   $    21     $    86
                                                         -------     -------

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

  Depreciation and amortization ......................        54          46
  Provision for estimated uncollectible sales-net ....      (459)        646
  Contract valuation discount, net of amortization ...       (75)        (25)
  Imputed Interest on debt with related party ........        72          86
  Equity in loss in joint venture ....................        34           4
  Loss on transfer of contracts receivable ...........       217          74
  Net change in assets and liabilities ...............      (220)     (2,593)
                                                         -------     -------
               Total adjustments .....................   $  (377)    $(1,762)
                                                         -------     -------

Net cash provided by (used in) operating activities ..   $  (356)    $(1,676)
                                                         =======     =======

Supplemental disclosure of non cash investing
 and financing activities:

 Interest expense treated as contribution to capital..   $    72     $    86
                                                         =======     =======
 Transfer of contracts receivable for debt repayment..   $ 2,764     $ 1,336
                                                         =======     =======



See accompanying notes.
</TABLE>


                                        5

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                                  JUNE 30, 2003
                                  -------------

THE INFORMATION PRESENTED HEREIN AS OF JUNE 30, 2003 FOR THE THREE MONTHS AND
SIX MONTHS ENDED JUNE 30, 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 and six months ended June 30,
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 six months ending June 30, 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
                              ---------------------
                                                       June 30,    December 31,
                                                         2003          2002
                                                     -----------   ------------
       Unimproved land.............................  $    420      $    420
       Land in various stages of development.......     2,714         2,622
       Fully improved land.........................     3,716         4,195
                                                     --------      --------
              Total................................  $  6,850      $  7,237
                                                     ========      ========

(c)  MORTGAGES AND SIMILAR DEBT

     As of  June  30,  2003,  the  Company's  outstanding  debt  to  Yasawa  was
$2,400,000  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,  4.25%
for January 1 through June 30, 2003 and 4.0% effective July 1, 2003. The Company
satisfied  its  principle  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 June 30,  2003,  the total  amount of interest
accrued on the Yasawa and Scafholding  obligations is approximately  $1,694,000,
which is included in accrued interest.


                                        6

<PAGE>



     During  the six months  ended June 30,  2003,  Swan  loaned the  Company an
additional  $800,000 to meet the Company's  working  capital  requirements.  The
Company's debt to Swan as of June 30, 2003, of $8,098,000 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,  4.25% for January 1 through  June 30, 2003 and
4.0%  effective  July 1, 2003. As of June 30, 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 $71,900 for the six months ended June 30,
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  $35,000 and  $38,000,  in the six months ended June 30,
2003 and 2002,  respectively,  in  revenue  pursuant  to these  agreements.  The
Company also services the Swan  receivable  portfolio,  which consisted of 1,106
contracts  (approximately  $13,015,000) as of June 30, 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 $269,000 and $254,000 for the six
months ended June 30, 2003 and 2002, respectively,  of which $11,000 and $37,000
was capitalized for the six months ended June 30, 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 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



                                        7

<PAGE>



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 Form 13E(3)
filings.

(h)  REPURCHASE OF CONTRACTS AND REDUCTION OF RECOURSE OBLIGATION LIABILITY

     On March 7, 2003,  the Company  closed on an  agreement to  repurchase  200
contracts  receivable  aggregating  approximately  $1 million  from an unrelated
third  party.  The Company had sold the  contracts in 1990 and 1992 subject to a
repurchase obligation.  The contract portfolio had been subsequently conveyed to
other unrelated investors. The Company did not service this contract portfolio.

     All of the  repurchased  contracts  were beyond their  original  term.  The
Company  entered  into  the  agreement   principally  to  reacquire   underlying
collateral,  the developed residential lots , under very favorable terms for the
Company because the  organization  selling the contracts back to the Company was
in  bankruptcy  proceedings  and desired to quickly  liquidate  these  contracts
receivable for a one-time cash payment.

     Based  upon  its  analysis  of  recent  payment  history,   management  has
determined approximately 25 contracts aggregating approximately $50,000 might be
collectable.   Management   exercised   its  right  to  cancel   the   remaining
nonperforming  contracts  and recover the  underlying  collateral  of  developed
residential  lots. The  reacquired  lots will be added to its land inventory and
sold in the normal course of business.

     The  aggregate   repurchase  cost  incurred  was  approximately   $215,000,
including costs of title searches,  legal fees,  transfer fees,  taxes and other
direct  costs.  The cost  was  first  assigned  to the net  realizable  value of
contracts  expected to be collected in the normal course of business of $50,000,
and the  remaining  cost of  $165,000  was  assigned  to  land  inventory  to be
recovered. The management believes, based on the sale of similar developed lots,
that the Company's  expected net realizable  value of the recoverable  developed
lots exceeds its cost basis.

     Prior to the repurchase of these contracts,  the Company had a net recourse
obligation  of  $872,000  for  this  portfolio  of  sold  contracts.  Management
periodically  analyzes and adjusts its recourse  obligation  liability  based on
reports  of the non-  performing  status  of the  contracts  receivable  and its
obligation  to replace the  contracts  (perpetuating  the recourse  obligation).
Management  also considered  other factors  including the negative impact of the
bankruptcy of the owner of the portfolio.  Management believes the liability was
equal to the expected  obligation to replace the  non-performing  contracts with
performing contracts in the normal course of business.  The Company recognized a
one-time gain approximately  $872,000 as a direct result of the reduction of the
recourse obligation  liability when the recourse obligation was eliminated.  The
Company was able to receive very favorable terms in this  transaction due to the
one-time cash repurchase of the remaining  contracts from an organization  going
through bankruptcy  proceedings.  Incidental to the transaction,  lots that were
designated as additional  collateral for the recourse obligation and owned by an
affiliated company, Citony Development Corporation, were released to Citony.

(i)  INCOME TAXES

     For the six  month  period  ending  June 30,  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)  OTHER 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 the 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 three and six months  ended
June 30, 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 six months ended June 30, 2003 and June 30, 2002.

Revenues
--------

     Total  revenues  were  $7,756,000  for the six months  ended June 30,  2003
($4,180,000  for the quarter ended June 30, 2003) compared to $6,220,000 for the
comparable 2002 period ($3,257,000 for the quarter ending June 30, 2002).

     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 six months ended June 30, 2003 and 2002 were  $3,912,000
($2,254,000 for the three months ended June 30, 2003) and $3,386,000 ($1,783,000
for the quarter ending June 30, 2002, respectively. The Company had a backlog of
approximately  $2,972,000  in  unrecognized  sales  as of June  30,  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.

     Housing  revenues were  $3,438,000  for the first six months of 2003 versus
$2,335,000 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  $11,809,000  and $7,077,000 as of June 30,
2003 and 2002, respectively.

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

                               Six Months Ended            Three Months Ended
                           -----------------------      -----------------------
                           June 30,       June 30,      June 30,       June 30,
                             2003           2002          2003           2002
                           --------       --------      --------       --------

     Gross Land Sales:     $ 3,418        $  3,792      $ 1,839        $ 1,728
                           -------        --------      -------        -------

     Housing Sales:          3,438           2,335        2,361          1,362
                           -------        --------      -------        -------

       Total Real Estate:  $ 6,856        $  6,127      $ 4,200        $ 3,090
                           =======        ========      =======        =======

     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 $99,000 for the first six months of 2003 ($51,000
for the three months  ending June 30, 2003) versus  $129,000 for the  comparable
2002 period ($88,000 for the three months ending June 30, 2002).


                                        9

<PAGE>



     Interest  income was $131,000 for the first six months of 2003 ($64,000 for
the three months ending June 30, 2003) versus $226,000 for the comparable period
in 2002 ($157,000 for the three months ending June 30, 2003).

     Other revenues were $331,000 for the first six months of 2003 ($123,000 for
the three months ending June 30, 2003 versus $418,000 for the comparable  period
in 2002 ($215,000 for the three months ending June 30, 2002). Other revenues are
principally generated by the Company's title insurance and real estate brokerage
subsidiaries.

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

     Costs  and  expenses  were  $7,735,000  for the  first  six  months of 2003
($4,469,000 for the three months ending June 30, 2003) versus $6,134,000 for the
comparable  period in 2002  ($3,304,000  for the three  months  ending  June 30,
2002).

     Cost of sales  increased  to  $3,741,000  for the first six  months of 2003
($2,430,000 for the three months ending June 30, 2003) versus $2,844,000 for the
comparable period in 2002 ($1,594,000 for the three months ending June 30, 2002)
due to increased housing sales.

     Commissions,  advertising and other selling expenses totaled $2,346,000 for
the six months of 2003  ($1,330,000  for the three months  ending June 30, 2003)
versus  $1,893,000  for the  comparable  period in 2002  ($934,000 for the three
months ending June 30, 2002). General and administrative  expenses were $672,000
for the first six months of 2003  ($256,000 for the three months ending June 30,
2003) versus $815,000 for the comparable  period in 2002 ($468,000 for the three
months ending June 30, 2002) as a result of increased  overhead  expenses.  Real
estate tax expenses were $467,000 for the first six months of 2003 ($233,000 for
the three months ending June 30, 2003) versus $287,000 for the comparable period
in 2002 ($143,000 for the three months ending June 30, 2002).

     Interest  expense was $258,000  for the first six months of 2003  ($127,000
for the three months  ending June 30,  2003)  compared to $217,000 for the first
six months of 2002  ($125,000 for the three months  ending June 30,  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 $21,000 for the first six months of 2003
(a net loss of  ($289,000)  for the three months  ending June 30, 2003) versus a
net  income  of  $86,000  for the  comparable  period  in  2002 ( a net  loss of
($47,000) for the three months ending June 30, 2002). The 2003 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.




                                       10

<PAGE>



     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 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  June  30,  2003,  the  Company's  outstanding  debt  to  Yasawa  was
$2,400,000  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  principle  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,  4.25%
effective  January 1, 2003 and 4% effective July 1, 2003. The Company  satisfied
its principle  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 June 30, 2003, the total amount of interest  accrued on
the Yasawa and Scafholding  obligations is  approximately  $1,694,000,  which is
included in accrued interest.

     During  the six months  ended June 30,  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 June 30, 2003, of $8,098,000 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,  4.25%  effective
January  1, 2003 and 4.0%  effective  July 1,  2003.  As of June 30,  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 June 30,
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
$2,687,000 remains at June 30, 2003.





                                       11

<PAGE>



     The  Company  has an  agreement  with  Scafholding  and Citony  Development
Corporation  for the  servicing  of their  receivable  portfolios.  The  Company
received  approximately  $35,000 and  $38,000,  in the six months ended June 30,
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.

     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 pay down
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 June 30, 2003,  the average stated rate
for contracts  receivable was 9.0%, 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 $234,000 at June 30, 2003. The  unamortized  valuation
adjustment at June 30, 2003 was $44,000. 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 June 30, 2003,  the Company has  outstanding  debt of  approximately
$10.5 million. The stated interest rate, which is adjusted semi-annually, is the
prime  rate,  which  was  4.0% at June 30,  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
$105,000, which would reduce net income.

                                       13

<PAGE>



ITEM 4.  CONTROLS AND PROCEDURES


     (a) Evaluation of disclosure controls and procedures.

     As required by Rule 13a-15 under the Exchange Act, within the 90 days prior
to the filing date of this report,  the Company carried out an evaluation of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures.  This evaluation was carried out under the supervision and with
the  participation  of the Company's  management,  including the Company's Chief
Executive Officer and Chief Financial Officer.  The evaluation  conducted by the
Company's Chief Executive  Officer and Chief Financial Officer has provided them
with reasonable  assurance that the Company's disclosure controls and procedures
are  effective  in  alerting  them in a timely  manner to  material  information
required to be included in periodic SEC filings.

     Disclosure  controls and procedures and other  procedures that are designed
to insure that information  required to be disclosed in Company reports filed or
submitted  and reported,  within the time periods  specified in the Security and
Exchange Commission's rules and forms.

     Disclosure  controls and procedures include,  without limitation,  controls
and procedures designed to ensure that the information  required to be disclosed
in Company reports filed under the Exchange Act is accumulated and  communicated
to  management,  including  the  Company's  Chief  Executive  Officer  and Chief
Financial Officer, as appropriate,  to allow timely decisions regarding required
disclosures.

     (b) Changes in internal controls.

     There have been no changes in internal  controls or in other  factors  that
could  significantly  affect  these  controls  subsequent  to the  date of their
evaluation,   including  any  corrective  actions  with  regard  to  significant
deficiencies and material weaknesses.



                                       14

<PAGE>



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

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

     (a)  Exhibits

     See attached Exhibit 31.1 for Certification  pursuant to Section 302 of the
Sarbanes - Oxley Act of 2002 (CEO Certification by Antony Gram)

     See attached Exhibit 31.2 for Certification  pursuant to Section 302 of the
Sarbanes - Oxley Act of 2002 (CFO Certification by Robert O. Moore)

     See attached Exhibit 32 for Certification under Section 906 of the Sarbanes
- Oxley Act of 2002.

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


                                       15

<PAGE>



                                                                    Exhibit 31.1

                    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

August 13, 2003

                                       16

<PAGE>

                                                                    Exhibit 31.2

                    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

August 13, 2003



                                       17

<PAGE>

                                                                      Exhibit 32


                         CERTIFICATION UNDER SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002


Pursuant  to  Section  906  of  the  Sarbanes-Oxley  Act of  2002,  each  of the
undersigned   certifies  that  the  periodic  report  fully  complies  with  the
requirements  of Section 13(a) or 15(d) of the  Securities  Exchange Act of 1934
and that information  contained in this periodic report fairly presents,  in all
material  respects,  the  financial  condition  and result of  operations of The
Deltona Corporation.


/S/ Antony Gram
-------------------------------
Antony Gram
Chairman of the Board, President and Chief Executive Officer
August 13, 2003



/S/ Robert O. Moore
--------------------------------
Robert O. Moore
Chief Financial Officer
August 13, 2003


     A signed  original of this  written  statement  required by Section 906 has
been  provided  to The Deltona  Corporation  and will be retained by The Deltona
Corporation and furnished to the Securities and Exchange Commission or its staff
upon request.

     The foregoing  certification  accompanies the issuer's  Quarterly report on
Form 10-Q and is not filed as provided in SEC Release Nos. 33-8212,  34-4751 and
IC-25967, dated June 30, 2003.

                                       18

<PAGE>