UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-K/A
                                (Amendment No. 1)

[X]  Annual Report  Pursuant to Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934

     For the fiscal year ended December 31, 2006.

 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: 1-8389

                              PUBLIC STORAGE, INC.
             (Exact name of Registrant as specified in its charter)

            California                                    95-3551121
----------------------------------       ---------------------------------------
  (State or other jurisdiction of        (I.R.S. Employer Identification Number)
   incorporation or organization)


               701 Western Avenue, Glendale, California 91201-2349
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)


                                 (818) 244-8080
              (Registrant's telephone number, including area code)


           Securities registered pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>

                                                                                          Name of each exchange
                                Title of each class                                        on which registered
--------------------------------------------------------------------------------        -------------------------
<S>                                                                                      <C>
Depositary Shares Each Representing 1/1,000 of a Share of 7.625% Cumulative
     Preferred Stock, Series T, $.01 par value..................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.625% Cumulative
     Preferred Stock, Series U, $.01 par value..................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.500% Cumulative
     Preferred Stock, Series V $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.500% Cumulative
     Preferred Stock, Series W $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.450% Cumulative
     Preferred Stock, Series X $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.250% Cumulative
     Preferred Stock, Series Z $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.125% Cumulative
     Preferred Stock, Series A $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.125% Cumulative
     Preferred Stock, Series B $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.600% Cumulative
     Preferred Stock, Series C $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.180% Cumulative
     Preferred Stock, Series D $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.750% Cumulative
     Preferred Stock, Series E $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.450% Cumulative
     Preferred Stock, Series F $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.000% Cumulative
     Preferred Stock, Series G $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.950% Cumulative
     Preferred Stock, Series H $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.250% Cumulative
     Preferred Stock, Series I $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 7.250% Cumulative
     Preferred Stock, Series K $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.750% Cumulative
     Preferred Stock, Series L $.01 par value...................................         New York Stock Exchange
Depositary Shares Each Representing 1/1,000 of a Share of 6.625% Cumulative              New York Stock Exchange
     Preferred Stock, Series M $.01 par value...................................
Depositary Shares Each Representing 1/1,000 of a Share of Equity Stock, Series A,
     $.01 par value.............................................................         New York Stock Exchange
Common Stock, $.10 par value....................................................         New York Stock Exchange

</TABLE>

                                       1
<PAGE>

   Securities registered pursuant to Section 12(g) of the Act: None (Title of
     class)

Indicate by check mark if the  registrant is a well-known  seasoned  issuer,  as
defined in Rule 405 of the Securities Act. Yes [X] No [ ]

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the 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 by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer or a  non-accelerated  filer (as defined in Rule 12b-2 of the
Exchange Act).

  Large Accelerated Filer [X] Accelerated Filer [ ] Non-accelerated Filer [ ]

The  aggregate  market value of the voting and  non-voting  common stock held by
non-affiliates of the Registrant as of June 30, 2006:

Common Stock, $0.10 Par Value - $6,207,100,000  (computed on the basis of $75.90
per share which was the  reported  closing  sale price of the  Company's  Common
Stock on the New York Stock Exchange on June 30, 2006.

Depositary Shares Each Representing  1/1,000 of a Share of Equity Stock,  Series
A,  $.01 Par Value -  $198,175,000  (computed  on the basis of $26.70  per share
which  was the  reported  closing  sale  price  of the  Depositary  Shares  each
Representing  1/1,000 of a Share of Equity Stock, Series A on the New York Stock
Exchange on June 30, 2006.

         As of February 26,  2007,  the number of  outstanding  shares of Common
Stock,  $.10 par value,  was  170,388,218  shares and the number of  outstanding
Depositary Shares Each Representing  1/1,000 of a Share of Equity Stock,  Series
A, $.01 par value, was 8,744,193 (representing 8,744.193 shares of Equity Stock,
Series A).

                                       2
<PAGE>

                       DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive  proxy  statement to be filed in connection  with the
Annual Meeting of Shareholders to be held in 2007 are  incorporated by reference
into Part III of this Annual Report on Form 10-K.

                                EXPLANATORY NOTE
                                ----------------

This Amendment No. 1 to our Annual Report on Form 10-K for the fiscal year ended
December 31, 2006,  is being filed solely to change the date in the last line of
the Report of Independent  Registered Public Accounting Firm included in Item 9A
of the 10-K filed on March 1, 2007 (the "Original  Filing").  As required by SEC
rules, we have also included the complete text of Item 9A with no other changes.

Also  included as part of this filing is a currently  dated consent from Ernst &
Young LLP, our independent  registered  public  accounting  firm, dated March 8,
2007 and  currently  dated  certifications  as  required by Rules  13a-14(a)  or
15d-14(a) under the Securities Exchange Act of 1934.

Except as described above,  this amendment does not modify or update  disclosure
in, or exhibits to, the Original  Filing.  Furthermore,  this amendment does not
change any previously  reported  financial  results,  nor does it reflect events
occurring after the date of the Original Filing.

                                     PART II

ITEM 9A.          CONTROLS AND PROCEDURES

CONCLUSION REGARDING THE EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES

         The Company  maintains  disclosure  controls  and  procedures  that are
designed to ensure that  information  required  to be  disclosed  in reports the
Company  files and  submits  under the  Exchange  Act, is  recorded,  processed,
summarized and reported within the time periods specified in accordance with SEC
guidelines  and  that  such   information  is   communicated  to  the  Company's
management,  including its Chief Executive Officer and Chief Financial  Officer,
to allow timely decisions  regarding required disclosure based on the definition
of "disclosure  controls and procedures" in Rules 13a-15(e) of the Exchange Act.
In designing and evaluating the disclosure  controls and procedures,  management
recognized  that any controls and  procedures,  no matter how well  designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives  and  management  necessarily  was  required to apply its judgment in
evaluating the cost-benefit  relationship of possible controls and procedures in
reaching that level of reasonable  assurance.  Also, the Company has investments
in certain  unconsolidated  entities.  As the Company does not control or manage
these  entities,  its disclosure  controls and  procedures  with respect to such
entities are substantially  more limited than those it maintains with respect to
its consolidated subsidiaries.

         As of December 31, 2006, the Company  carried out an evaluation,  under
the  supervision  and  with  the  participation  of  the  Company's  management,
including  the  Company's  Chief  Executive  Officer  and  the  Company's  Chief
Financial  Officer,  of the  effectiveness  of the design and  operation  of the
Company's  disclosure  controls and procedures (as such term is defined in Rules
13a-15(e) and 15d-15(e) under the Securities Act of 1934 as amended).  The scope
of  our  evaluation  excluded  the  operations  of  Shurgard   Self-Storage  SCA
("Shurgard Europe"), our subsidiary based in Europe. For the year ended December
31,  2006,  our total  revenues  were $1.4  billion,  of which  Shurgard  Europe
represented  $65  million;  our total net assets at December  31, 2006 were $8.2
billion,  of which  Shurgard  Europe  represented  $445  million.  Based on that
evaluation,  and considering the relative significance of Shurgard Europe to our
operations,  the Company's Chief Executive  Officer and Chief Financial  Officer
concluded that the Company's  disclosure  controls and procedures were effective
as of December 31, 2006.

                                       3
<PAGE>


MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

         Our management is responsible for establishing and maintaining adequate
internal control over financial  reporting,  as such term is defined in Exchange
Act Rules  13a-15(f).  Under the supervision and with the  participation  of our
management,  including our Chief Executive Officer and Chief Financial  Officer,
we conducted an evaluation  of the  effectiveness  of our internal  control over
financial  reporting  based  on the  framework  in  Internal  Control-Integrated
Framework  issued by the Committee on Sponsoring  Organizations  of the Treadway
Commission.  The scope of our  evaluation  excluded the  operations  of Shurgard
Self-Storage SCA ("Shurgard  Europe"),  our subsidiary based in Europe.  For the
year ended  December 31, 2006,  our total  revenues were $1.4 billion,  of which
Shurgard Europe  represented  $65 million;  our total net assets at December 31,
2006 were $8.2 billion, of which Shurgard Europe represented $445 million. Based
on our evaluation under the framework in Internal Control-Integrated  Framework,
and considering the relative  significance  of Shurgard  Europe,  our management
concluded that our internal control over financial reporting was effective as of
December 31, 2006.

         Our  management's  assessment  of the  effectiveness  of  our  internal
control  over  financial  reporting  as of December 31, 2006 has been audited by
Ernst & Young LLP, an independent  registered  public accounting firm, as stated
in their report which is included herein.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

         There have not been any changes in our internal  control over financial
reporting (as such term is defined in Rules  13a-15(f)  and 15d-15(f)  under the
Exchange  Act)  during  the  quarter  to which  this  report  relates  that have
materially affected, or are reasonable likely to materially affect, our internal
control over financial reporting.

                                       4



<PAGE>


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



The Board of Directors and Shareholders of Public Storage, Inc.:

We  have  audited   management's   assessment,   included  in  the  accompanying
Management's  Report on Internal Control Over Financial  Reporting,  that Public
Storage,  Inc. maintained effective internal control over financial reporting as
of   December   31,   2006,   based  on   criteria   established   in   Internal
Control--Integrated   Framework   issued   by  the   Committee   of   Sponsoring
Organizations  of the Treadway  Commission (the COSO criteria).  Public Storage,
Inc.'s management is responsible for maintaining effective internal control over
financial  reporting  and for its  assessment of the  effectiveness  of internal
control over financial reporting. Our responsibility is to express an opinion on
management's  assessment  and an opinion on the  effectiveness  of the company's
internal control over financial reporting based on our audit.

We conducted  our audit in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain  reasonable  assurance  about whether  effective
internal  control  over  financial  reporting  was  maintained  in all  material
respects. Our audit included obtaining an understanding of internal control over
financial reporting,  evaluating management's assessment, testing and evaluating
the design and operating  effectiveness of internal control, and performing such
other  procedures as we considered  necessary in the  circumstances.  We believe
that our audit provides a reasonable basis for our opinion.

A company's  internal control over financial  reporting is a process designed to
provide reasonable  assurance  regarding the reliability of financial  reporting
and the preparation of financial  statements for external purposes in accordance
with generally accepted accounting principles. A company's internal control over
financial  reporting  includes those policies and procedures that (1) pertain to
the  maintenance  of records that, in reasonable  detail,  accurately and fairly
reflect the  transactions  and  dispositions  of the assets of the company;  (2)
provide  reasonable  assurance  that  transactions  are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting  principles,  and that receipts and  expenditures  of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of  unauthorized  acquisition,  use, or  disposition  of the company's
assets that could have a material effect on the financial statements.

Because of its inherent  limitations,  internal control over financial reporting
may not prevent or detect misstatements.  Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate  because of changes in  conditions,  or that the degree of compliance
with the policies or procedures may deteriorate.

As indicated in the accompanying  Management's  Report on Internal Controls Over
Financial   Reporting,   management's   assessment  of  and  conclusion  on  the
effectiveness of internal  control over financial  reporting did not include the
internal  controls  of Shurgard  Self  Storage  SCA and  subsidiaries,  which is
included in the 2006 consolidated  financial statements of Public Storage,  Inc.
and  constituted  $2,108  million  and $445  million  of total  and net  assets,
respectively, as of December 31, 2006 and $65 million of revenues and a net loss
of $43  million  for the year then ended.  Our audit of  internal  control  over
financial reporting of Public Storage Inc. and subsidiaries also did not include
an evaluation of the internal control over financial  reporting of Shurgard Self
Storage SCA and subsidiaries.

In our opinion,  management's  assessment that Public Storage,  Inc.  maintained
effective internal control over financial  reporting as of December 31, 2006, is
fairly stated, in all material  respects,  based on the COSO criteria.  Also, in
our  opinion,  Public  Storage,  Inc.  maintained,  in  all  material  respects,
effective  internal  control over  financial  reporting as of December 31, 2006,
based on the COSO criteria.

                                       5
<PAGE>


We also have  audited,  in accordance  with the standards of the Public  Company
Accounting  Oversight Board (United States),  the consolidated balance sheets of
Public  Storage,  Inc.  as of  December  31,  2006  and  2005,  and the  related
consolidated statements of income, shareholders' equity, and cash flows for each
of the three years in the period ended December 31, 2006 of Public Storage, Inc.
and our report dated February 28, 2007 expressed an unqualified opinion thereon.

                                                               Ernst & Young LLP

Los Angeles, CA
February 28, 2007


                                     PART IV

ITEM 15           EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

         (a)(3)  The  exhibits to this Form 10-K/A are set forth in the Index to
                 Exhibits beginning on page 7.

         (b)     Exhibits

         See Item 15(a)(3) above.

                                       6

<PAGE>


                                INDEX TO EXHIBITS

The following exhibits are filed with this Annual Report on Form 10-K/A:

23   Consent of Independent Registered Public Accounting Firm. Filed herewith.

31.1 Certification  of Chief Executive  Officer under Rules  13a-14(a)/15d-14(a)
     under the Securities and Exchange Act and Section 302 of Sarbanes-Oxley Act
     of 2002. Filed herewith.

31.2 Certification  of Chief Financial  Officer under Rules  13a-14(a)/15d-14(a)
     under the Securities and Exchange Act and Section 302 of Sarbanes-Oxley Act
     of 2002. Filed herewith.


                                       7

<PAGE>


                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended,  the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

                                   PUBLIC STORAGE, INC.

Date:  March 9, 2007               By:   /s/ Ronald L. Havner, Jr.
                                         -------------------------
                                         Ronald L. Havner, Jr., Vice-Chairman of
                                         the Board, Chief Executive Officer and
                                         President






                                       8