`SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB
                                   (Mark One)
       [X] Annual report pursuant to Section 13 or 15(d) of the Securities
          Exchange Act of 1934 for the fiscal year ended 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 0-18235

                         ELDORADO ARTESIAN SPRINGS, INC.
                 (Exact name of business issuer in its charter)

                Colorado                                 84-0907853
------------------------------------------ ------------------------------------
     (State or other jurisdiction of       I.R.S. Employer Identification Number
     incorporation or organization)

                 1783 Dogwood Street, Louisville, Colorado 80027
                ------------------------------------------------
              (Address of principal executive offices and zip code)

         Issuer's telephone number, including area code: (303) 499-1316

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

           Securities registered pursuant to Section 12(b) of the Act:

                     Common Stock, par value $.001 per share
                                (Title of Class)

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 requirement for the past 90 days. Yes [X] No[ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-B 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-KSB or any  amendment to
this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year. $7,915,110

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates of the registrant. The aggregate market value will be computed
by  reference to the price at which the common  equity was sold,  or the average
bid and asked prices of such common  equity,  as of a specified  date within the
past 60 days.  (See  definition  of affiliate in Rule 12b-2 of the Exchange Act)
$1,222,823.

The number of shares  outstanding of the Issuer's Common Stock, $.001 par value,
was 2,995,495 on June 30, 2003.

                       Documents Incorporated by Reference

     (If the following documents are incorporated by reference, briefly describe
them and identify the part of the form 10-KSB (e.g., Part I, Part II, etc.) into
which the document is incorporated:  (1) any annual report to security  holders;
(2) any proxy or information statement; and (3) any prospectus filed pursuant to
Rule 424 (b) or (c) of the Securities Act of 1933 ("Securities Act"). The listed
Documents should be clearly described for identification purposes. None.

ITEM 1. BUSINESS.

The Company  bottles,  markets and  distributes  natural  spring water under the
Eldorado  Artesian Spring Water brand. The Company sells its products  primarily
in Colorado.

Industry Background

According  to Beverage  Marketing  Corporation,  the bottled  water  industry is
considered  by many  analysts to be the fastest  growing  major  category in the
beverage industry.  Total bottled water consumption on a per capita basis in the
United States  increased 88%, or 7.7 gallons,  from 1990 to 2000.  Bottled water
volume in the United  States  has grown to  approximately  6 billion  gallons in
2002. In 1990, retail sales value was  approximately  $2.6 billion and has grown
to  approximately  $6.0  billion  in 2002.  Bottled  water has been the  fastest
growing beverage category since 1993.

The bottled water industry is generally broken down into two segments: sparkling
and  non-sparkling  waters.  Non-sparkling  waters dominate the industry with an
estimated 91 percent share of total category volume. In addition,  non-sparkling
water accounts for 99% of the industry growth.

Bottled water has been marketed in the United States for over 100 years,  but it
really burst onto the beverage scene in the mid 1970's.  During this same period
of time,  the  American  populace  became  more  aware of the  deterioration  of
municipal  water  supplies  and the harmful  effects of both  contamination  and
chemical additives.  Further fuel to the water market was provided by the rising
health consciousness of people in general, as they turned away from high caloric
and  alcoholic  beverages in favor of products that are perceived as natural and
beneficial.  Bottled  water is perceived  by many  consumers as being a healthy,
natural,  beverage and this  perception has driven demand for this product among
many consumers.

Bottles  used for the  smaller  packaging,  typically  in sizes 1.5  liters  and
smaller,  are made of polyethylene  terephtalate (PET), a premium clear plastic.
These bottles are commonly  referred to in the beverage industry as PET bottles.
The  introduction of bottled water in convenience  packaging has recently driven
the explosive growth of the PET segment of the bottled water market. This market
has been driven by manufacturers who have begun bottling their water in smaller,
more portable sizes,  which are sold at retail and which are intended to fit the
active lifestyles of bottled water consumers.

The bottled water industry has also experienced recent periods of consolidation.
Industry  analysts  estimate that there are over 780 companies  competing in the
bottled water industry.  Larger multi-national companies such as Perrier, Groupe
Danone and Suntory Water Group have been active in  acquisitions of smaller more
regional  bottled water companies.  Within the last few years,  larger companies
such as Coca-Cola and Pepsi have been producing and marketing their own brands.

Company Background

Eldorado  Artesian  Springs,  Inc.  was  formed  under  the laws of the State of
Colorado  on  April  15,  1986,   under  the  name   Lexington   Funding,   Inc.
("Lexington").  Lexington  was  organized  for the  primary  purpose  of seeking
selected  mergers  or  acquisitions  with a small  number of  business  entities
expected to be private companies,  partnerships, or sole proprietorships.  Prior
to  April  1987,   the  primary   activity  of  the  Company  was   directed  to
organizational efforts and obtaining initial financing. The Company sold 208,333
shares of its $.001 par value common stock at $1.20 per share for total proceeds
of $250,000 in a public offering which closed on December 17, 1986.

Effective  April 10,  1987,  the Company  acquired all of the shares of Eldorado
Artesian Springs, Inc. ("Eldorado") of Eldorado Springs,  Colorado.  Eldorado, a
Colorado  corporation,  was formed in 1983. The acquisition was  accomplished by
the exchange of Company stock for all of the outstanding shares of Eldorado from
its shareholders,  Douglas A. Larson, Jeremy S. Martin, Kevin M. Sipple, Raymond
Kerbaugh and Melvin Larson.  Pursuant to the  acquisition of Eldorado,  Eldorado
shareholders  received an aggregate of 2,340,000  shares of the Company's Common
Stock,  representing  90%  of  outstanding  shares  of  the  Company  after  the
acquisition.  The number of Company shares of stock exchanged in the acquisition
was determined  through  arms-length  negotiations.  In June 1988,  Eldorado was
merged into Lexington  pursuant to a statutory merger, and Lexington changed its
name to Eldorado Artesian Springs, Inc.

As a result of the  Eldorado  acquisition  and  subsequent  merger,  the primary
business of the Company is the  bottling  and sale of spring  water from springs
located on property  owned by the Company.  In addition to real property and the
wells and springs thereon,  and water rights,  the Company owns a bottling plant
(including  building  and  bottling   equipment),   associated   containers  and
equipment,  resort  buildings,  a residential home, and an outdoor swimming pool
which are located on the property.

The  Company  began  operations  by  delivery  5 gallon  bottles  and  rental of
equipment  to homes and  offices as well as 1 gallon  bottles to  retailers.  In
1994,  management  introduced the 1.5 liter bottle which was followed,  in 1995,
with the 1.0 and 0.5 liter  bottles.  Eldorado  introduced  its PET  bottles  to
grocery  retailers and these  products have gained market share among the larger
retail grocery gains.

During the fiscal year ended 2002,  to  accommodate  the growing  demand for the
Company's  bottled spring water products,  the Company entered into an agreement
for the purchase and construction of a new warehouse facility in Louisville, CO.
The new facility was completed in August 2001 and the Company  began  operations
out of the new facility at that time.  The Company  continues to bottle the same
natural spring water that emanates from the source in Eldorado Springs, CO.

The Company  also  leased  additional  high speed  bottling  equipment  that was
installed at the new facility. By utilizing the new equipment and the additional
warehouse,  bottling  and  office  space the  Company  has been able to  realize
benefits in increased  bottling  speeds as well as  efficiencies in transporting
and storing of raw  materials  and  finished  goods.  The Company  continues  to
increase  sales to home and  office  accounts  as well as retail  grocery  store
chains.

Water Source and Bottling

The source of the natural  spring water used by the Company are springs  located
on property owned by the company in Eldorado Springs, CO. The Company is located
at the  base  of a six  hundred  foot  deep  canyon  in  Eldorado  Springs,  CO.
Furthermore, Eldorado Springs is surrounded by hundreds of acres of local, state
and federal park land.

When the  Company  purchased  the  mountain  property  in 1983,  included in the
purchase  price were  certain  water rights for  Eldorado  Springs.  These water
rights are  relatively  junior to other water rights in the South  Boulder Creek
and South Platte Basins.  The Company has the right to  beneficially  use all of
the water which  emanates from the springs in  accordance  with its water rights
unless  there is a more senior  call on the water.  A senior call might occur in
the winter or when  runoff is low and  insufficient  to meet the water  needs of
more senior water users below  Eldorado  Springs.  Because of Colorado's  recent
drought  conditions,  the  possibility of a senior call has increased.  For many
years the Company had  enrolled  its water  rights in a  substitute  supply plan
approved  by the State  Engineer  which  served to protect the  Company's  water
supply in the event of a senior call.

As of  January 1, 2003 the State  Engineer  is no longer  authorized  to approve
substitute  supply  plans of the nature in which the Company was  enrolled.  The
Company has filed  application for a temporary  supply plan to protect its water
supply  pending  the Water  Court's  review of an  application  for a  permanent
augmentation  plan. The Company is also pursuing  other possible  supply sources
for use in augmenting the stream flows as a result of the Company's  withdrawals
of water.  There is no assurance  that any of the  applications  or  alternative
arrangements  being  sought by the Company will be  approved.  If the  Company's
application  for temporary  supply plan or permanent  augmentation  plan are not
approved and a senior call on the  Company's  water  supply is made,  this would
result in a significant  negative  financial impact on the Company.  The Company
will also incur  significant  expenses in connection  with its efforts to obtain
approval  of  these  plans.  In  the  event  of  the  approval  of  a  permanent
augmentation  plan, the Company will also incur additional  expenses  associated
with its required purchase of additional water rights.

Water is produced at two springs and eleven wells on the Company's property. The
well heads are in close  proximity  to the fill  station.  The  source  water is
bacteria-free as it emanates from the source, and nothing is added to or removed
from the water  during the  bottling  process.  The  product is packaged in high
quality plastic bottles, and each one is sealed with a tamper evident cap.

In Eldorado Springs,  the water is loaded into stainless steel tanker trucks and
transported  to the  new  bottling  facility  in  Louisville,  CO.  Once  at the
facility, the water is transferred into stainless steel tanks until bottled. The
Company  installed all  stainless  steel piping in the new facility and monitors
quality  on a  regular  basis to  assure  the  highest  quality  products.  As a
safeguard to any contamination, the water passes through a protective filter and
an ultra-violet light.

Products

The Company is principally in the business of selling  bottled  artesian  spring
water.  Sales of the Company's water have historically been made by selling five
gallon and three gallon bottles of water  directly to home and business,  retail
grocery stores and distributors located in Colorado.  The Company also sells its
water at  wholesale  to retail  food  stores  (grocery  chains)  packaged in the
smaller, more convenient sizes, which are suitable for retail distribution.  The
Company owns and operates a resort on its property  during the summer months and
rents a single-family  home. The Company's water bottling  operation account for
98% of the Company's revenues.

Sales and Distribution

The Company sells its bottled  artesian spring water into two distinct  segments
of the market for bottled water.

Home/Commercial Delivery Business
Direct delivery of bottled water to homes and businesses has  historically  been
the focus of the  Company's  business.  The  Company's  bottled  water  delivery
business  primarily  consists  of the  sale  of five  gallon  and  three  gallon
containers  of water to customers who lease water  dispensers  from the Company.
The Company  delivers these bottles directly to customers using its trucks owned
or leased by the Company. The Company's delivery sales are made primarily in the
Denver/Boulder  metropolitan  area (but also include selected other cities along
the front range).  As of March 31, 2003,  the Company had  approximately  13,400
active  delivery  accounts  and the  delivery  business  currently  accounts for
roughly 69% of the Company's  revenues.  Of the five and three gallon  accounts,
approximately 68% were home accounts and 32% were commercial establishments.

PET Packaging/Retail Distribution Business
The PET business  consists  principally  of the  wholesale  distribution  of the
Company's  PET  products to grocery  store chains with  operations  primarily in
Colorado.  The Company uses its own trucks to deliver its PET water  products to
grocery customers  warehouses in the Denver  metropolitan  area. From there, the
water is shipped to customers grocery stores throughout  Colorado.  In addition,
because some of the grocery customers warehouse  distribution extends beyond the
State of Colorado,  the Company  obtains some  distribution  at these  customers
grocery stores which are located in New Mexico, Wyoming,  Kansas, Utah, Oklahoma
and Texas.

Marketing

The Company focuses on three major areas in marketing its products:  five gallon
and three gallon sales, small package products, and brand name recognition.

The five  gallon and three  gallon  products  are  primarily  sold  through  the
acquisition  of  new  accounts  attracted  by  personal  sales   representatives
strategically  located  throughout the area at local events.  The efforts of the
staff are augmented by yellow pages, radio, occasional television advertisements
and product donation to local events.

The smaller packages that are sold  principally  through retail chain stores are
effectively  marketed by using point of purchase  inducements to gain new trial,
usually in the form of discounts in price in conjunction with signage.

The  Company   attempts  to  build  brand  name   awareness  by   sponsoring  or
participating  in many local events.  Eldorado  Artesian Springs is a sponsor of
the Bolder Boulder 10K race, the Eldorado Springs Cancer Research Run, the Taste
of Colorado and participates in part in many other local events.

Supplies

Water  bottled by the  Company  comes  from  springs  located  on the  Company's
property  which have been  flowing for many years.  The Company does not foresee
any disruption in the flow of the spring water.  The Company  currently  sources
all of its raw  materials  from outside  vendors.  Suppliers of the bottles have
experienced  seasonal shortages  resulting from resin shortages.  Changes in the
supply of the  bottles  can affect the  prices.  The  Company  tries to mitigate
possible shortages by maintaining  sufficient  inventory safety stocks so as not
to interrupt production.

Seasonality

Sales tend to be mildly seasonal in the bottled water business. A ten to fifteen
percent  differential in sales is normally  experienced  between the peak summer
months from May to September and the low winter months.

Competition

The bottled water industry has numerous competitors.  Generally, the industry is
made up of a few large companies (who own multiple  brands),  smaller  companies
whose  products  are  distributed  only on a  regional  or local  basis and some
private  label  brands.  The  Company's  competitors  include  more  diversified
corporations having substantially  greater assets and larger sales organizations
than the Company, as well as other small firms. The Company's competitors in the
local  Denver/Boulder  area for home and office  delivery  include Deep Rock and
Sierra Springs. The Company also competes in the retail area for the smaller PET
packages with products  including  Aquafina,  Evian,  Deep Rock and Dasani.  The
Company is a smaller regional company compared to the competitors as most of its
products  are sold in  Colorado.  The Company  competes on the basis of customer
service,  product  quality and price.  Management  believes  that the  products'
superior  taste,  competitive  pricing and attractive  packaging are significant
factors in maintaining the Company's competitive position.


Government Regulation

The Company's bottling operations are subject to regulation by the Food and Drug
Administration of the federal government.  These regulations are administered by
the Colorado  Department of Public Health and  Environment  Consumer  Protection
Division.  Weekly  product and source  bacteriological  tests are  required  and
annual inspections are performed.

The Company is also subject to regulation  under the Colorado  Primary  Drinking
Water  Regulations  and  the  United  States  Safe  Drinking  Water  Act.  These
regulations  pertain to the operation of the water  utility  system owned by the
Company that services the town of Eldorado  Springs.  These regulations are also
administered by the State of Colorado Health Department Drinking Water Division.
Regular periodic testing is also required for this operation.

Additionally,  the Company  operates the swimming  pool which is also subject to
regulation by the State of Colorado.  These  regulations are administered by the
Boulder County Health  Department and require  periodic daily testing and agency
inspections.

It  is  the  Company's  understanding  that  it  is  in  compliance  with  these
regulations  as  communicated  by   representatives  of  the  responsible  local
agencies.  Compliance  with the standards and  regulations  above do not require
material expenditures.

Employees

As of March 31,  2003,  the Company had 70 full-time  employees  and 4 part-time
employees.  During the summer  months,  the  Company  employs  approximately  14
seasonal employees for the operation of the pool.

ITEM 2. DESCRIPTION OF PROPERTY.

The Company owns  property in two  locations.  The Company also rents  warehouse
space on a short-term agreement in Denver, Colorado.

Eldorado Springs, Colorado
The Company owns  approximately 24 acres of land in Eldorado Springs,  Colorado.
The buildings owned by the Company total  approximately  12,000 square feet. The
Company uses this  warehouse  space for the fill station for the spring water as
well as for storage of products from time to time. The Company also continues to
use office  space next to the  warehouse.  As part of the  property  in Eldorado
Springs,  the Company owns the wells and springs thereon,  and the water rights.
The Company owns an outdoor  swimming  pool which is operated  during the summer
months.  Virtually  all of the  Company's  property  in  Eldorado  is pledged as
collateral on Company loan balances.

Louisville, Colorado
In August 2001,  the Company  purchased a new facility in  Louisville,  Colorado
located  approximately  10 miles from  Eldorado  Springs.  This new  facility is
approximately  40,000  square feet.  The Company  utilizes  approximately  9,000
square feet for office  space.  The new  facility  also  serves as the  bottling
facility and warehouse space for raw and finished  materials.  The building sits
on 6.6 acres owned by the Company.  The new facility was financed  through a SBA
loan and traditional bank financing.

ITEM 3. LEGAL PROCEEDINGS.

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matter was  submitted  to a vote of our  security  holders  during the fourth
quarter of the fiscal year covered by this report.

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

Eldorado's  common  stock is  traded in the  over-the-counter  market on the OTC
Bulletin  Board.  The quotations  presented below reflect  inter-dealer  prices,
without  retail  mark-up,  mark-down  or  commissions  and may  not  necessarily
represent actual transactions. The following table sets forth the periods shown,
the quotations for the common stock:


Calendar 2003                                    High    Low
 First Quarter through March 31, 2003            $1.75   $1.40

Calendar 2002
 First Quarter through March 31, 2002            $1.75   $1.40
 Second Quarter through June 30, 2002            $4.00   $2.00
 Third Quarter through September 30, 2002        $2.15   $1.75
 Fourth Quarter through December 31, 2002        $1.85   $1.25

Calendar 2001
 First Quarter through March 31, 2001            $2.94   $1.50
 Second Quarter through June 30, 2001            $1.75   $1.40
 Third Quarter through September 30, 2001        $1.74   $0.45
 Fourth Quarter through December 31, 2001        $1.42   $0.90


The Company had 195 record owners of the Common Stock as of June 30, 2003.

No dividends  have been declared or paid to date on the Company's  common stock,
and the Company does not anticipate paying dividends in the foreseeable  future.
The  Company  follows  a  policy  of cash  preservation  for  future  use in the
business.


                      Equity Compensation Plan Information

                                                                    Number of
                                                                    securities
                                                                     remaining
                                                                   available for
                          Number of                               future issuance
                          securities                                under equity
                         to be issued       Weighted-average        compensation
                         upon exercise       exercise price       plans (excluding)
                         of outstanding      of outstanding          securities
                        options, warrants   options, warrants       reflected in
Plan Category            and rights (a)      and rights (b)        column (a)) (c)
-------------------     ----------------    -----------------     ------------------

Equity compensation
 plans approved by
 security holders              875,000                 2.85            291,000

Equity compensation
 plans not approved
 by security holders                -                    -                  -

Total                          875,000                 2.85            291,000


ITEM 6. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

Results of Operations

Year Ended March 31, 2003 Compared to Year Ended March 31, 2002

Revenues  for the  year  ended  March  31,  2003  were  $7,915,110  compared  to
$7,556,486 for the same period ended March 31, 2002, an increase of 4.7%.

Sales of the five and three  gallon  products  used in the delivery to homes and
offices were 58% of sales and increased from $4,180,987 in 2002 to $4,562,639 in
2003, an increase of $381,652 or 9.1%. Sales of other products, including rental
of dispensers used in the home and office delivery, increased to $949,389 or 12%
of sales in 2003 from  $869,107 or 11.5% of sales in 2002,  an increase of 9.2%.
The growth in this segment of the Company's operations is directly  attributable
to an increase of approximately  9% in the total number of accounts  serviced by
the Company.

Sales of the  Company's  retail-size  products  were  28.3% of total  sales  and
decreased from  $2,243,417 in 2002 to $2,227,780 in 2003, a decrease of $15,637,
or less than 1%. Sales of the  Company's  PET  products  (.5 liter,  24 oz and 1
liter sizes) represented 18% of sales or $1,427,797 in 2003 compared to 20.2% of
sales or $1,523,391 in 2002, a decrease of 6.3%. The decrease in the PET revenue
is due to the  inability of the Company to compete  effectively  with respect to
pricing,  as intensified  competition from larger  companies  continues to drive
retail prices  downward.  The Company's gallon size products were 10.1% of sales
or $799,694 in 2003  compared  to  $720,026 in 2002,  an increase of 11.1%.  The
increase  in  revenues  of the gallon  sized  package is  attributable  to a 10%
increase in unit volume and a slightly  higher  average  selling  price.  Volume
increases are due to a combination of increased distribution, aggressive pricing
policies  at  the  retail  level,   and  the  absence  of  Coca-Cola  and  Pepsi
participation in the gallon sized segment of the bottled water market.

Cost of goods  sold for 2003 were  $1,411,590,  or 17.8% of sales,  compared  to
$1,469,109 or 19.4% of sales for 2002.  The decrease in cost of goods sold, as a
percentage of sales,  compared to the prior year is attributable to the decrease
in sales of the smaller retail products.  The smaller products cost more because
the products require more material, therefore a drop in volume of those products
combined with an increase in the higher margin  products  produces a drop in the
overall cost of goods. The home and office products require lower bottling costs
because of the larger sizes and re-fillable bottles.

Gross profit increased to $6,503,520,  or 82.2% of sales in 2003 from $6,087,377
or 80.6% of sales for 2002. Overall,  gross profit increased 6.8% from the prior
year. The increase in gross profit is due to increased  sales volume and average
selling prices of the products with greater gross margins and the drop in volume
of products with the lowest gross margins.

Total  operating  expenses  increased to $6,225,620  in 2003 from  $5,621,592 in
2002,  an increase  of  $604,028,  or 10.7%.  Of the total  operating  expenses,
salaries and related expenses  increased 9.2% to $2,996,145 in 2003, or 37.9% of
sales,  from $2,744,494,  or 36.3% of sales in 2002. This increase is due to the
increase in sales for the year resulting in higher  commissions and the need for
additional  employees.  Due to  increased  competition  and  declining  economic
conditions the Company had to increase sales  commissions to obtain the level of
new Home & Office delivery  accounts needed to produce the desired gain in total
accounts,  net of customers terminating service.  Additionally the Company added
positions  related to quality control  functions to meet the needs of compliance
and  increased  volumes.  Additionally,  unseasonably  hot dry weather  produced
unusually heavy demand for the Company's  products during the summer months. The
Company incurred an expense for temporary labor during these months.

Administrative  and general expenses  increased 13.2% for 2003. This increase is
attributable to the additional  expenses  resulting from the increase in volume.
One area the Company has experienced an increase was in cost for insurance.  The
Company's  cost for insurance has increased 12% in 2003 compared to the previous
year. Also the Company's  property taxes from 2002 to 2003 doubled.  The Company
also  experienced  increased  expenses  related to drought  conditions and water
rights primarily for legal fees and engineering work.

Delivery  expenses  increased  32.2%  for  2003.  This  increase  is  due to the
increased need for additional  leased vehicles for the home and office delivery.
The need for additional vehicles occurred during the summer months. Subsequently
lower  sales  volumes  during the  colder  months  produced  a  disproportionate
increase in this expense component.

Advertising  and  promotion  expenses  decreased  9.1% for 2003  compared to the
previous year. For 2003,  advertising and promotion  expenses were 9.6% of sales
compared to 11.0% of sales for 2002.  The decrease is  primarily  related to the
increase in sales  volume and greater  selectivity  in choosing  which venues to
advertise in. Given the competitive  nature of the bottled water  industry,  the
Company  anticipates that it will continue to spend  significant  amounts in the
future for  advertising  and  promotion  as it  continues to promote and develop
brand recognition and increase market penetration.

Depreciation and amortization increased 29.3% for 2003. During fiscal year ended
March  2002,  the  Company  purchased  the new  facility,  which  resulted in an
increase in depreciation  expense.  Depreciation for the most recent fiscal year
increased due to the  accumulation of twelve months of  depreciation  related to
the new facility versus only seven months in the prior year. Additionally,  this
increase is due to the purchase of new  equipment  over the last year to service
home and office delivery accounts.

Income from  operations  was $277,900  for 2003  compared to $465,785 in 2002, a
decrease of $187,885. This is a direct result of increasing operational expenses
at a greater rate than the increase in gross profit.

Interest  expense  increased less than1/2% to $243,027 in 2003, from $239,516 in
2002.  Interest  expense is virtually  identical in amount compared to the prior
year. This is because the increased annual expense of servicing  interest on the
indebtedness of the new facility for the entire year, versus seven months in the
prior  year,  is offset by  declining  interest  rates on the notes  owed by the
Company.

During the year ended March 31, 2002,  the Company  entered into an agreement to
sell certain parcels of real estate to two senior  executives of the Company for
a total of $900,000.  The Company  received cash from the sale of $500,000.  The
Company also provided 60 month carry back financing on $400,000 with interest at
7.5% due annually that has been recorded as notes  receivable  related party and
includes  $35,290 of accrued  interest at March 31, 2003.  The collateral on the
notes receivable included a junior deed of trust on the properties and shares of
common  stock.  During the year ended  March 31,  2003,  the Board of  Directors
determined  that 250,000  shares of common  stock of the Company was  sufficient
collateral and released the junior deed of trust on the properties. During 2002,
the Company  recognized a gain on the real estate sales of $519,937 and deferred
an additional  $357,544 of gain as required by the terms of the carry back note.
As a  result  of the  carry  back  financing,  interest  income  of the  Company
increased to $30,023 in 2003 from $17,104 in 2002.

In July 2001,  when the Board of Directors  authorized the  aforementioned  real
estate transactions, the Company also authorized the sale of certain real estate
at the then fair value to another officer of the Company. Because of county land
approval  processes and associated  delays, the officer's option to purchase the
real estate has been extended through September 26, 2007.

Net income of $43,651 in 2003  compared  to net income of $486,563 in 2002 was a
decrease of $442,912.  The Company recorded net tax expenses of $21,245 for 2003
compared to tax expenses of $276,747 in 2002. Of the net tax  expenses,  $60,329
of income tax expense is current  expense  and a tax expense  benefit of $39,084
will be  deferred  due to  financial  statement  and tax return  differences  in
accounting  for  certain  balances  and  transactions  and  primarily  relate to
depreciation.

Liquidity and Capital Resources

Trade accounts  receivable for the year ended March 31, 2003 were 7% higher than
at year ended March 31, 2002.  This  resulted from the 4.7% increase in revenues
for the year ended March 31, 2003 and the increased  difficulty  in  collections
due to declining economic  conditions.  Days sales outstanding was approximately
40 for March 31, 2003 and 2002.

Cash flows from operating activities had a net inflow of $514,253.  The increase
in cash from  operating  activities  represents a decrease of $290,486  from the
year ended 2002.  The decrease in cash flow from  operations is primarily due to
the  decrease in  operating  income.  The largest  reconciling  item between net
income and net cash flow from  operations was the $568,332 of  depreciation  and
amortization.

Cash flows from investing activities resulted in a net outflow of $116,323. This
total represents  expenditures on equipment,  principally electric water coolers
that are rented to delivery customers,  net of repayments on related party notes
receivable interest of $12,210.

Cash flows from financing activities resulted in a net outflow of $328,535.  The
Company made payments on long term debt of $328,535.

The  Company's  cash  balance  at March 31,  2003  increased  by a net amount of
$69,395  from March 31, 2002.  Because of the  increase in net cash  provided by
operating  activities  the  Company  was able to  utilize  cash in other  areas,
primarily the payments on long-term debt.

The Company is in compliance with its financial covenants for its long-term debt
agreements  with U.S Bank and the Bank of Cherry Creek.  The Company has line of
credit with the Bank of Cherry Creek for $500,000. The line of credit is due for
renewal on June 30, 2003. Management believes the line of credit will be renewed
when  due.  The  Company  has  no  other   material   commitments   for  capital
expenditures.

On May 19, 1998,  the Company  registered  875,000 shares of common stock of the
company  pursuant to the 1997 stock option plan. The plan provides for the grant
of stock options to employees,  directors and consultants of the company.  As of
March 31, 2003,  584,000  options were  outstanding,  of which 473,500 are fully
vested and exercisable.


Other Recent Accounting Developments

In April 2002,  the FASB issued SFAS No. 145,  "Rescission of FASB No. 4, 44 and
64, Amendment of FASB No. 13, and Technical Corrections." SFAS rescinds FASB No.
4  "Reporting  Gains and  Losses  from  Extinguishments  of Debt Made to Satisfy
Sinking-Fund Requirements." This statement also rescinds SFAS No. 44 "Accounting
for Intangible Assets of Motor Carriers" and amends SFAS No. 13, "Accounting for
Leases".  This statement is effective for fiscal years  beginning  after May 15,
2002.  The  Company  does not expect the  adoption of this  statement  to have a
material effect on the Company's financial statements.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal  Activities,"  which  supersedes  previous  accounting and
reporting  standards for costs  associated  with exit or disposal  activities by
requiring the related liability to be recognized and measured  initially at fair
value  when the  liability  is  incurred.  Under  the  previous  accounting  and
reporting standards,  the liability for exit or disposal costs was recognized at
the date  management  committed  to a plan.  The  Company  does not  expect  the
adoption of this statement to have a material effect on the Company's  financial
statements.

In  December  2002,  the FASB issued SFAS No. 148  "Accounting  for  Stock-Based
Compensation - Transition and  Disclosure".  This statement amends SFAS No. 123,
"Accounting  for Stock-Based  Compensation"  to provide  alternative  methods of
transition  for an entity that  voluntarily  changes to the fair value method of
accounting  for  stock-based  compensation.  In  addition,  SFAS 148  amends the
disclosure  provision of SFAS 123 to require more prominent disclosure about the
effects of an entity's  accounting  policy decisions with respect to stock-based
employee  compensation  on reported  net  income.  The  effective  date for this
Statement  is for fiscal years ended after  December  15, 2002.  The adoption of
this  statement  has  not  had a  material  effect  on the  Company's  financial
statements.

In November 2002, the FASB issued FASB Interpretation No. (FIN) 45, "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantees,  Including  Indirect
Guarantees of  Indebtedness of Others" (FIN 45), which expands the disclosures a
guarantor is required to provide in its annual and interim financial  statements
regarding its obligations for certain guarantees. Disclosures are required to be
included in financial  statements  issued after  December 15, 2002.  FIN 45 also
requires  the  guarantor  to  recognize  a  liability  for the fair  value of an
obligation  assumed for  guarantees  issued or modified after December 31, 2002.
The Company  does not expect the  adoption of this  statement to have a material
effect on the Company's financial statements.

In January 2003,  the FASB issued FIN 46,  "Consolidation  of Variable  Interest
Entities" (FIN 45), which addresses how to identify  variable  interest entities
and the criteria  that  require a company to  consolidate  such  entities in its
financial  statements.  FIN  46  is  effective  on  February  1,  2003  for  new
transactions and on July 1, 2003 for existing transactions. The Company does not
expect the adoption of this statement to have a material effect on the Company's
financial statements.

Item 7.  Financial Statements.










                         ELDORADO ARTESIAN SPRINGS, INC.

                              Financial Statements
                                       and
                          Independent Auditors' Report
                             March 31, 2003 and 2002




                         ELDORADO ARTESIAN SPRINGS, INC.





                                Table of Contents

Independent Auditors' Report

Financial Statements

Balance Sheet

Statements of Income

Statement of Changes in Stockholders' Equity

Statements of Cash Flows

Notes to Financial Statements














                          INDEPENDENT AUDITORS' REPORT





Board of Directors and Stockholders
Eldorado Artesian Springs, Inc.
Eldorado Springs, Colorado


We have audited the  accompanying  balance sheet of Eldorado  Artesian  Springs,
Inc. as of March 31,  2003,  and the related  statements  of income,  changes in
stockholders' equity and cash flows for the years ended March 31, 2003 and 2002.
These financial  statements are the responsibility of the Company's  management.
Our responsibility is to express an opinion on these financial  statements based
on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Eldorado Artesian Springs, Inc.
as of March 31, 2003,  and the results of its  operations and its cash flows for
the years ended March 31, 2003 and 2002 in conformity with accounting principles
generally accepted in the United States of America.


                                          /s/Ehrhardt Keefe Steiner & Hottman PC
                                             Ehrhardt Keefe Steiner & Hottman PC

May 15, 2003
Denver, Colorado






                         ELDORADO ARTESIAN SPRINGS, INC.

                                  Balance Sheet
                                 March 31, 2003

                                     Assets
Current assets
  Cash ....................................................   $  149,154
  Accounts receivable - trade, net ........................      828,277
  Accounts receivable - other .............................       11,047
  Inventories .............................................      232,203
  Prepaid expenses ........................................       37,832
  Deferred tax asset ......................................       35,725
                                                              ----------
      Total current assets ................................    1,294,238
                                                              ----------

Non-current assets
  Property, plant and equipment - net .....................    5,129,457
  Notes receivable - related party ........................      435,290
  Water rights - net ......................................       92,552
  Deposits ................................................       41,205
  Other - net .............................................       89,634
                                                              ----------
      Total non-current assets ............................    5,788,138
                                                              ----------

Total assets ..............................................   $7,082,376
                                                              ==========

                      Liabilities and Stockholders' Equity
Current liabilities
  Accounts payable ........................................   $  368,282
  Accrued expenses ........................................      258,978
  Income taxes payable ....................................       58,807
  Customer deposits .......................................       69,776
  Current portion of capital lease obligations ............      147,320
  Current portion of long-term debt .......................      125,415
                                                              ----------
      Total current liabilities ...........................    1,028,578
                                                              ----------

Non-current liabilities
  Capital lease obligations, less current portion .........      137,419
  Long term debt, less current portion ....................    3,515,687
  Deferred tax liability ..................................      255,314
  Deferred gain on the sale of real estate ................      357,544
                                                              ----------
      Total non-current liabilities .......................    4,265,964
                                                              ----------
      Total liabilities ...................................    5,294,542
                                                              ----------

Commitments and contingency

Stockholders' equity
  Preferred stock, par value $.001 per share;
   10,000,000 shares authorized; 0  shares
   issued and outstanding .................................         --
  Common stock, par value $.001 per share;
   50,000,000 shares authorized; 2,995,495
   issued and outstanding .................................        2,995
  Additional paid-in capital ..............................      984,656
  Retained earnings .......................................      800,183
                                                              ----------
      Total stockholders' equity ..........................    1,787,834
                                                              ----------

Total liabilities and stockholders' equity ................   $7,082,376
                                                              ==========

                       See notes to financial statements.






                         ELDORADO ARTESIAN SPRINGS, INC.

                              Statements of Income


                                                        For the Years Ended
                                                              March 31,
                                                     --------------------------
                                                         2003          2002
                                                     -----------    -----------

Revenues
  Water and related ..............................   $ 7,804,857    $ 7,436,500
  Rentals ........................................         4,129         26,141
  Pool ...........................................       106,124         93,845
                                                     -----------    -----------
      Total revenues .............................     7,915,110      7,556,486

Cost of goods sold ...............................     1,411,590      1,469,109
                                                     -----------    -----------

Gross profit .....................................     6,503,520      6,087,377
                                                     -----------    -----------

Operating expenses
  Salaries and related ...........................     2,996,145      2,744,494
  Administrative and general .....................     1,293,233      1,142,124
  Delivery .......................................       609,388        460,799
  Advertising and promotions .....................       758,522        834,786
  Depreciation and amortization ..................       568,332        439,389
                                                     -----------    -----------
      Total operating expenses ...................     6,225,620      5,621,592
                                                     -----------    -----------

Income from operations ...........................       277,900        465,785
                                                     -----------    -----------

Other income (expense)
  Interest income ................................        30,023         17,104
  Interest expense ...............................      (243,027)      (239,516)
  Gain on sale of real estate ....................          --          519,937
                                                     -----------    -----------
      Total other income (expense) ...............      (213,004)       297,525
                                                     -----------    -----------

Income before income taxes .......................        64,896        763,310
                                                     -----------    -----------

Income tax expense
  Current ........................................       (60,329)       (84,373)
  Deferred .......................................        39,084       (192,374)
                                                     -----------    -----------
      Total income tax expense ...................       (21,245)      (276,747)
                                                     -----------    -----------

Net income available to common shareholders ......   $    43,651    $   486,563
                                                     ===========    ===========

Basic weighted average common shares outstanding .     2,995,495      2,995,495
                                                     ===========    ===========

Basic income per common share ....................   $      0.01    $      0.16
                                                     ===========    ===========

Diluted weighted average common shares outstanding     2,995,495      3,007,745
                                                     ===========    ===========

Diluted income per common share ..................   $      0.01    $      0.16
                                                     ===========    ===========

                       See notes to financial statements.



                         ELDORADO ARTESIAN SPRINGS, INC.

                  Statement of Changes in Stockholders' Equity
                   For the Years Ended March 31, 2003 and 2002



                               Common Stock       Additional                  Total
                         ------------------------   Paid-in     Retained   Stockholders'
                              Shares      Amount    Capital     Earnings      Equity
                            ---------   --------- ----------   ----------   ----------

Balance - March 31, 2001    2,995,495   $   2,995 $  984,656   $  269,969   $1,257,620

Net income .............         --            --       --        486,563      486,563
                            ---------   --------- ----------   ----------   ----------

Balance - March 31, 2002    2,995,495         2,995  984,656      756,532    1,744,183

Net income .............         --            --       --         43,651       43,651
                            ---------   --------- ----------   ----------   ----------

Balance - March 31, 2003    2,995,495   $   2,995 $  984,656   $  800,183   $1,787,834
                            =========   ========= ==========   ==========   ==========

                       See notes to financial statements.




                         ELDORADO ARTESIAN SPRINGS, INC.

                            Statements of Cash Flows

                                                         For the Years Ended
                                                               March 31,
                                                       ----------------------
                                                          2003         2002
                                                       ---------    ---------
Cash flows from operating activities
  Net income .......................................   $  43,651    $ 486,563
                                                       ---------    ---------
  Adjustments to reconcile net income to net cash
   provided by operating activities
   Depreciation and amortization ...................     568,332      439,389
   Gain on sale of real estate .....................        --       (519,937)
   Accrued interest on related party note receivable     (30,000)     (17,500)
   Deferred income taxes ...........................     (39,084)     192,374
   Changes in assets and liabilities
     Accounts receivable ...........................     (54,315)     (21,407)
     Inventories ...................................     (31,629)      16,904
     Prepaid expenses ..............................      (6,602)      (3,690)
     Deposits ......................................     (18,294)      66,286
     Accounts payable ..............................      40,209       31,714
     Accrued expenses ..............................      51,699       84,453
     Income taxes payable ..........................     (25,566)      84,373
     Customer deposits .............................      15,852      (34,783)
                                                       ---------    ---------
                                                         470,602      318,176
                                                       ---------    ---------
      Net cash provided by operating activities ....     514,253      804,739
                                                       ---------    ---------

Cash flows from investing activities
  Proceeds from the sale of property ...............        --        500,000
  Purchase of property, plant and equipment ........    (128,533)    (642,957)
  Purchase of other assets .........................        --        (59,941)
  Interest payments received on notes receivable -
   related party ...................................      12,210         --
                                                       ---------    ---------
      Net cash used in investing activities ........    (116,323)    (202,898)
                                                       ---------    ---------

Cash flows from financing activities
  Line of credit payments, net .....................        --       (290,716)
  Payments on long-term obligations ................    (328,535)    (372,698)
                                                       ---------    ---------
      Net cash used in financing activities ........    (328,535)    (663,414)
                                                       ---------    ---------

Net increase (decrease) in cash ....................      69,395      (61,573)

Cash - beginning of year ...........................      79,759      141,332
                                                       ---------    ---------

Cash - end of year .................................   $ 149,154    $  79,759
                                                       =========    =========

Supplemental disclosure of cash flow information

     Cash paid during the year for  interest  was  $243,027  (2003) and $239,516
     (2002).

     Cash paid  during  the year for  income  taxes was  $84,373  (2003)  and $0
     (2002).

Supplemental disclosure of non-cash activity:

     During  the years  ended  2003 and 2002,  equipment  was  acquired  through
     capital leases of $187,507 and $154,056, respectively.

     During the year ended March 31,  2002,  notes  payable of  $2,842,000  were
     entered into for the  purchase of real  estate,  and real estate sales were
     made for cash and $400,000 in notes  receivable  related  party.  This sale
     resulted in a gain of $877,481 of which $357,544 has been deferred.

                       See notes to financial statements.




                         ELDORADO ARTESIAN SPRINGS, INC.

                         Notes to Financial Statements





Note 1 - Description of Business and Summary of Significant Accounting Policies

Eldorado  Artesian  Springs,  Inc., (the "Company"),  is a Colorado  corporation
which  primarily  sells bottled  Artesian  spring water from springs  located in
Eldorado Springs,  Colorado and rents water  dispensers.  The Company also rents
housing,  and during the summer months,  it operates a natural  Artesian  spring
pool. The Company grants credit to its customers,  substantially all of whom are
located in Colorado. The Company's bottling and distribution facility is located
in Louisville, Colorado.

Concentrations of Credit Risk

The Company  maintains  cash in bank  accounts  that may, at times,  exceed FDIC
insurance limits.  Financial instruments  potentially  subjecting the Company to
concentrations  of credit risk  consist  primarily of accounts  receivable.  The
Company grants credit to customers  located  primarily in Colorado.  The Company
periodically  performs credit  analysis and monitors the financial  condition of
its clients in order to minimize credit risk.

Inventories

Inventories  consist  primarily of water bottles and packaging and are stated at
the lower of cost or market,  determined  using the first-in,  first-out  method
(FIFO).

Deposits

Deposits consist primarily of deposits related to the purchase of equipment.

Property, Plant, and Equipment

Property,  plant  and  equipment  are  stated  at  cost.  Machinery,  equipment,
furniture  and  fixtures  are  depreciated  using  various  methods  over  their
estimated  useful lives,  ranging from 3 to 7 years.  Buildings and improvements
are depreciated using the  straight-line  method over the estimated useful lives
for owned assets, ranging from 15 to 39 years. Equipment under capital leases is
valued at the lower of fair  market  value or net  present  value of the minimum
lease  payments at inception of the lease.  Depreciation  is provided  utilizing
lease terms for leasehold improvements and equipment under capital leases.

Water Rights

Water rights are recorded at cost and are  amortized  on a  straight-line  basis
over 40 years.

Other Assets

Other  assets  consist of customer  lists,  loan fees and other costs which have
been recorded at cost and are being amortized on the straight-line  basis over 5
to 40 years.

Long-Lived Assets

The Company  reviews its  long-lived  assets for impairment  whenever  events or
changes in circumstances  indicate that the carrying amount of the asset may not
be recovered.  The Company looks primarily to the undiscounted future cash flows
in its assessment of whether or not long-lived assets have been impaired.

Customer Deposits

Customer deposits consist primarily of deposits on bottles and equipment.

Stock Based Compensation

The Company has adopted both SFAS 123 "Accounting for Stock-Based Compensation,"
which requires  disclosure of the fair value and other  characteristics of stock
options, and SFAS 148 "Accounting for Stock-Based  Compensation - Transition and
Disclosure,"  which requires more prominent  disclosure  about the effects of an
entity's accounting policy decisions with respect to stock-based compensation on
reported net income.  The Company has chosen under the provisions of SFAS 123 to
continue using the intrinsic-value method of accounting for employee stock-based
compensation  in  accordance  with  Accounting  Principles  Board Opinion No. 25
"Accounting   for  Stock  Issued  to  Employees"  (APB  25).   Accordingly,   no
compensation   cost  has  been  recognized  for  the  stock  option  plans.  Had
compensation  cost for the Company's  option plan been  determined  based on the
fair value at the grant date for awards  consistent  with the provisions of SFAS
No. 123, the  Company's  net income,  basic and diluted  income per common share
would have been changed to the pro forma amounts indicated below:

                                                           For the Years Ended
                                                                 March 31,
                                                         ------------------------
                                                             2003        2002
                                                         -----------  -----------

Net income - as reported                                 $    43,651  $  486,563
Net (loss) income - pro forma                            $   (48,432) $  384,152
Basic income per common share - as reported              $      0.01  $     0.16
Basic (loss) income per common share - pro forma         $     (0.02) $     0.13
Diluted earnings per common share - as reported          $      0.01  $     0.16
Diluted (loss) earnings per common share - proforma      $     (0.02) $     0.13

The fair value of each option  grant is estimated on the date of grant using the
Black-Scholes   option-pricing   model  with  the   following   weighted-average
assumptions used:

                                                           For the Years Ended
                                                                 March 31,
                                                         -----------------------
                                                             2003        2002
                                                         ----------- -----------

Approximate risk free rate                                    4%            5%
Average expected life                                      10 years      10 years
Dividend yield                                                0%            0%
Volatility                                                    1%            1%
Estimated fair value of total options granted               $92,083      $102,411


Basic and Diluted Earnings Per Common Share

In accordance  with FAS 128  "Earnings per Share," basic  earnings per share are
computed by dividing net income by the number of weighted  average common shares
outstanding  during the year. Diluted earnings per share is computed by dividing
net income by the number of weighted  average common shares  outstanding  during
the year,  including  potential  common shares,  which  consisted of options and
warrants to purchase the Company's common stock.

Fair Value of Financial Instruments

The  carrying  amounts of financial  instruments  including  cash,  receivables,
accounts  payable and accrued expenses  approximated  fair value as of March 31,
2003 because of the relatively short maturity of these instruments.

The carrying  amounts of notes receivable and long-term debt  approximates  fair
value  as of  March  31,  2003  because  interest  rates  on  these  instruments
approximate market interest rates.

Revenue Recognition

Revenue is  recognized  on the sale of products as customer  shipments are made.
Returns  are  recognized  when  the  product  is  received.  Rental  revenue  is
recognized on a monthly basis upon commencement of the lease agreement.

Advertising Costs

The Company expenses advertising costs as incurred.  Advertising expense for the
years ended March 31, 2003 and 2002 were $758,522 and $834,786, respectively.

Comprehensive Income

The Company did not engage in any activities that would result in  comprehensive
income being different than net income.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities, disclosures of contingent assets and liabilities at the date of the
financial  statements and the reported  amounts of revenues and expenses  during
the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

In April 2002,  the FASB issued SFAS No. 145,  "Rescission of FASB No. 4, 44 and
64, Amendment of FASB No. 13, and Technical Corrections." SFAS rescinds FASB No.
4  "Reporting  Gains and  Losses  from  Extinguishments  of Debt Made to Satisfy
Sinking-Fund Requirements." This statement also rescinds SFAS No. 44 "Accounting
for Intangible Assets of Motor Carriers" and amends SFAS No. 13, "Accounting for
Leases".  This statement is effective for fiscal years  beginning  after May 15,
2002.  The  Company  does not expect the  adoption of this  statement  to have a
material effect on the Company's financial statements.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal  Activities,"  which  supersedes  previous  accounting and
reporting  standards for costs  associated  with exit or disposal  activities by
requiring the related liability to be recognized and measured  initially at fair
value  when the  liability  is  incurred.  Under  the  previous  accounting  and
reporting standards,  the liability for exit or disposal costs was recognized at
the date  management  committed  to a plan.  The  Company  does not  expect  the
adoption of this statement to have a material effect on the Company's  financial
statements.

In  December  2002,  the FASB issued SFAS No. 148  "Accounting  for  Stock-Based
Compensation - Transition and  Disclosure".  This statement amends SFAS No. 123,
"Accounting  for Stock-Based  Compensation"  to provide  alternative  methods of
transition  for an entity that  voluntarily  changes to the fair value method of
accounting  for  stock-based  compensation.  In  addition,  SFAS 148  amends the
disclosure  provision of SFAS 123 to require more prominent disclosure about the
effects of an entity's  accounting  policy decisions with respect to stock-based
employee  compensation  on reported  net  income.  The  effective  date for this
Statement  is for fiscal years ended after  December  15, 2002.  The adoption of
this  statement  has  not  had a  material  effect  on the  Company's  financial
statements.

In November 2002, the FASB issued FASB Interpretation No. (FIN) 45, "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantees,  Including  Indirect
Guarantees of  Indebtedness of Others" (FIN 45), which expands the disclosures a
guarantor is required to provide in its annual and interim financial  statements
regarding its obligations for certain guarantees. Disclosures are required to be
included in financial  statements  issued after  December 15, 2002.  FIN 45 also
requires  the  guarantor  to  recognize  a  liability  for the fair  value of an
obligation  assumed for  guarantees  issued or modified after December 31, 2002.
The Company  does not expect the  adoption of this  statement to have a material
effect on the Company's financial statements.

In January 2003,  the FASB issued FIN 46,  "Consolidation  of Variable  Interest
Entities" (FIN 45), which addresses how to identify  variable  interest entities
and the criteria  that  require a company to  consolidate  such  entities in its
financial  statements.  FIN  46  is  effective  on  February  1,  2003  for  new
transactions and on July 1, 2003 for existing transactions. The Company does not
expect the adoption of this statement to have a material effect on the Company's
financial statements.


Note 2 - Balance Sheet Disclosures

Accounts receivable consist of the following at March 31, 2003:

Accounts receivable
  Accounts receivable                                    $     908,277
  Allowance for doubtful accounts                              (80,000)
                                                         -------------
                                                         $     828,277
                                                         =============

Property, plant and equipment consist of the following at March 31, 2003:


Property, plant and equipment
  Land                                                   $   1,000,263
  Buildings and improvements                                 3,903,246
  Machinery and equipment                                    3,232,271
  Office furniture and fixtures                                297,303
                                                         -------------
                                                             8,433,083
  Less accumulated depreciation and amortization            (3,303,626)
                                                         -------------
                                                         $   5,129,457
                                                         =============

Water rights consist of the following at March 31, 2003:


Water rights                                             $     179,500
Less accumulated amortization                                  (86,948)
                                                         -------------
                                                         $      92,552
                                                         =============

Other assets consist of the following at March 31, 2003:

Other assets
  Customer lists, loan fees and other                    $     134,182
  Accumulated amortization                                     (44,548)
                                                         -------------
                                                         $      89,634
                                                         =============

Accrued expenses consist of the following at March 31, 2003:


Accrued expenses
  Accrued payroll and taxes                              $     132,226
  Accrued property taxes                                       108,221
  Accrued sales taxes                                           18,531
                                                         -------------
                                                         $     258,978
                                                         =============


Note 3 - Purchase and Sale of Real Estate

New Facility Purchase

In November 2000, the Company entered into an agreement for the purchase of land
and the  construction of a bottling and distribution  facility.  In August 2001,
the Company closed on the purchase of the facility for a price of  approximately
$3,400,000.  The Company  received  bank  financing  for the new facility in the
amount of $2,842,000,  with a term of 25 years and interest at prime plus 0.75%,
subject to other defined terms and  conditions.  The Company paid the unfinanced
portion in cash.

Sale of Real Estate - Related Parties

During the year ended March 31, 2002,  the Company  entered into an agreement to
sell certain parcels of real estate to two senior  executives of the Company for
a total of $900,000.  The Company  received cash from the sale of $500,000.  The
Company also provided 60 month carry back financing of $400,000 with interest at
7.5% due annually that has been recorded as notes  receivable  related party and
includes  $35,290 of accrued  interest at March 31, 2003.  The collateral on the
notes receivable included a junior deed of trust on the properties and shares of
common  stock.  During the year ended  March 31,  2003,  the Board of  Directors
determined  that 250,000  shares of common  stock of the Company was  sufficient
collateral and released the junior deed of trust on the properties. During 2002,
the Company  recognized a gain on the real estate sales of $519,937 and deferred
an additional $357,544 of gain as required by the terms of the carry back note.

In July 2001,  when the Board of Directors  authorized the  aforementioned  real
estate transactions, the Company also authorized the sale of certain real estate
at the then fair value to another officer of the Company. Because of county land
approval  processes and associate  delays,  the officer's option to purchase the
real estate has been extended through September 26, 2007.


Note 4 - Line of Credit

The  Company  has a bank line of  credit  that  provides  for  borrowings  up to
$500,000  subject to  certain  borrowing  base  requirements,  requires  monthly
interest  payments  calculated at prime plus 0.5% with all unpaid  principal and
interest due in June 2003.  The line  includes  certain  reporting and financial
covenants  and is  cross-collateralized  by accounts  receivable,  inventory and
defined real property and guaranteed by three  stockholders  and officers of the
Company. The outstanding balance on the line was $0 at March 31, 2003.


Note 5 - Capital Leases

The Company has acquired  assets under the provisions of long-term  leases.  For
financial reporting purposes, minimum lease payments relating to the assets have
been  capitalized.  The leases  expire  between  April 2003 and  December  2005.
Amortization of the leased property is included in depreciation and amortization
expense.

The assets under capital lease have cost and accumulated amortization as follows
at March 31, 2003:

Cost                                                     $     984,854
Less accumulated amortization                                 (455,891)
                                                         -------------
                                                         $     528,963
                                                         =============
Maturities of capital lease obligations are as follows:

Year Ending March 31,
---------------------
       2004                                              $     165,918
       2005                                                    111,000
       2006                                                     37,141
                                                         -------------
       Total minimum lease payments                            314,059
       Amount representing interest                            (29,320)
                                                         -------------
       Present value of net minimum lease payments             284,739
       Less current portion                                   (147,320)
                                                         -------------

       Long-term capital lease obligations               $     137,419
                                                         =============


Note 6 - Long-Term Debt
-----------------------

Long-term debt is as follows at March 31, 2003

Note payable to a bank with  interest at .75% over prime (5% at March
 31,  2003).  The note  calls  for  monthly  principal  and  interest
 payments  of $8,379 and matures  August  2026.  Collateralized  by a
 second deed of trust on the  building  and land  purchased  with the
 proceeds and  guaranteed by the Small  Business  Administration  and
 three  stockholders  and  officers  of  the  Company.  The  note  is
 subject to certain restrictive covenants.                             $   1,377,169

Note payable to a bank with  interest at .75% over prime (5% at March
 31,  2003).  The note  calls  for  monthly  principal  and  interest
 payments of $8,328 and matures  August 2026.  Collateralized  by the
 building and land  purchased  with the proceeds  and  guaranteed  by
 three  stockholders  and  officers  of  the  Company.  The  note  is
 subject to certain restrictive covenants.                                 1,380,857

Note payable to a bank with  interest at prime  adjusted  bi-annually
 (4.75% at March 31, 2003). The note calls for monthly  principal and
 interest  payments of $9,858 with all unpaid  principal and interest
 due June 2012.  Cross-collateralized  by substantially all assets of
 the Company and  guaranteed  by three  stockholders  and officers of
 the Company.                                                                883,076
                                                                       -------------
                                                                           3,641,102
      Less current portion                                                  (125,415)
                                                                       -------------
                                                                       $   3,515,687
                                                                       =============

Maturities of long-term obligations are as follows:

Year Ending March 31,
---------------------
        2004                                             $     125,415
        2005                                                   147,818
        2006                                                   155,167
        2007                                                   162,882
        2008                                                   170,980
        Thereafter                                           2,878,840
                                                         -------------
                                                         $   3,641,102
                                                         =============


Note 7 - Income Taxes

The Company  recognizes  deferred  tax  liabilities  and assets for the expected
future tax  consequences  of events  that have been  included  in the  financial
statements or tax returns.  Deferred tax  liabilities  and assets are determined
based on the differences between the financial statement and tax basis of assets
and liabilities  using the enacted tax rates in effect for the year in which the
differences  are expected to reverse.  The measurement of deferred tax assets is
reduced,  if necessary,  by the amount of any tax benefits that are not expected
to be realized based on available  evidence.  The Company expects future taxable
income and, therefore, believes it will recognize future benefits related to its
deferred tax asset.

The net  current  and  long-term  deferred  tax  assets and  liabilities  in the
accompanying balance sheet include the following at March 31, 2003:


Current deferred tax asset                               $      35,725
Current deferred tax liability                                      -
                                                         ------------

Net current deferred tax asset                           $      35,725
                                                         =============

Long-term deferred tax asset                             $          -
Long-term deferred tax liability                               255,314
                                                         -------------

Net long-term deferred tax liability                     $     255,314
                                                         =============

Temporary  differences  giving rise to the net  deferred  tax  liability  are as
follows at March 31, 2003:

Allowance for doubtful accounts                          $      29,064
Property and equipment                                        (235,359)
Other assets                                                    (4,531)
Accrued compensation                                             6,661
Deferred gain                                                  (15,424)
                                                         -------------
                                                         $    (219,589)
                                                         =============

The  following is a  reconciliation  of the  statutory  federal  income tax rate
applied to pre-tax  accounting  net income  compared to the income tax (expense)
benefit in the statements of income:

                                                           For the Years Ended
                                                                 March 31,
                                                         --------------------------
                                                              2003          2002
                                                         ------------  ------------

Federal income taxes computed at statutory rate          $    (23,576) $   (240,490)
State income taxes and other                                    2,331       (36,257)
                                                         ------------  ------------
                                                         $    (21,245) $   (276,747)
                                                         ============  ============


Note 8 - Commitments

Operating Leases

The Company  leases  delivery  trucks,  vehicles,  equipment and property  under
non-cancelable  operating leases. Rent expense for these leases was $556,529 and
$449,497 for the years ended March 31, 2003 and 2002, respectively.

Future minimum lease payments under these leases are approximately as follows:

Year Ending March 31,
---------------------
        2004                                             $     465,000
        2005                                                   413,000
        2006                                                   230,000
        2007                                                    74,000
        2008                                                    45,000
        Thereafter                                              18,000
                                                         -------------
                                                         $   1,245,000
                                                         =============


Note 9 - Contingency

When the Company purchased  mountain property in 1983,  included in the purchase
price were certain  water rights for  Eldorado  Springs.  These water rights are
relatively  junior to other water  rights in the South  Boulder  Creek and South
Platte Basins.  The Company has the right to  beneficially  use all of the water
that emanates from the springs in accordance with its water rights unless a more
senior rights holder makes a call on the water. A senior call might occur in the
winter or when  runoff is low and  insufficient  to meet the water needs of more
senior water users below Eldorado Springs. Because of Colorado's current drought
conditions,  the possibility of a senior call has increased. For many years, the
Company has enrolled its water  rights in a substitute  supply plan  approved by
the State  Engineer,  which serves to protect the Company's  water supply in the
event of a senior call.

As of January 1, 2003,  the State  Engineer is no longer  authorized  to approve
substitute  supply  plans of the nature in which the  Company is  enrolled.  The
Company has filed  application for a temporary  supply plan to protect its water
supply  pending  the Water  Court's  review of an  application  for a  permanent
augmentation  plan. The Company is also pursuing  other possible  supply sources
for use in augmenting the stream flows as a result of the Company's  withdrawals
of water.  There is no assurance  that any of the  applications  or  alternative
arrangements  being  sought by the Company will be  approved.  If the  Company's
applications  for substitute or temporary plans or for a permanent  augmentation
plan are not approved and a senior call on the  Company's  water supply is made,
this would result in a significant  financial impact on the Company. The Company
will also incur  significant  expenses in connection  with its efforts to obtain
approval  of  these  plans.  In  the  event  of  the  approval  of  a  permanent
augmentation  plan, the Company will also incur additional  expenses  associated
with its required purchase of additional water rights.


Note 10 - Stockholders' Equity

Stock Options

On May 19, 1998,  the Company  registered  875,000 shares of common stock of the
Company pursuant to the 1997 stock option plan (the Plan). The Plan provides for
the grant of stock  options to  employees,  directors,  and  consultants  of the
Company.  From time to time, the board may grant options to advance the interest
of the Company.

The following table presents the activity for options outstanding:
                                                                          Weighted
                                                                           Average
                                                              Stock       Exercise
                                                             Options        Price
                                                         -------------   ----------

Outstanding - March 31, 2001                                   558,000   $     2.89
      Granted                                                   18,000         1.75
      Forfeited/canceled                                        (6,000)        3.39
      Exercised                                                     -            -
                                                         -------------   ----------

Outstanding - March 31, 2002                                   570,000         2.86
      Granted                                                   18,000         2.00
      Forfeited/canceled                                        (4,000)        1.90
      Exercised                                                     -            -
                                                         -------------   ----------

Outstanding - March 31, 2003                                   584,000   $     2.85
                                                         =============   ==========

The  following  table  presents  the  composition  of  options  outstanding  and
exercisable:

                            Options Outstanding                 Options Exercisable
                         ----------------------- ----------- ----------------------
     Exercise Prices        Number      Price*       Life*      Number      Price*
-----------------------  ----------- ----------- ----------- ----------- ---------
      1.75                    11,500                     8.1      11,500
      2.00                    14,500                     9.1      14,500
      2.75                   490,500                     5.3     403,000
      3.88                    59,000                     7.1      36,000
      4.25                     8,500                     6.1       8,500
                         -----------             ----------- -----------

Total - March 31, 2003       584,000 $      2.85         5.6     473,500 $      2.82
                         =========== =========== =========== =========== ===========

*Price and Life reflect the weighted average exercise price and weighted average
remaining contractual life, respectively.


Warrants

In connection  with a private  placement  completed  during March 31, 1999,  the
Company issued warrants to purchase 30,000 and 250,000 shares of common stock at
$3.30 and $11.00 per share,  respectively,  a weighted average exercise price of
$10.18. Both warrants are exercisable until expiration on April 22, 2003.


Note 11 - Employee Benefit Plan

The  Company  has  adopted  a 401(k)  profit  sharing  plan  for its  employees.
Employees  become  eligible to  participate in the plan once they have completed
one year of  service  and have  reached  21 years of age.  Contributions  by the
Company and employees vest  immediately.  The Company  matches 100% of employees
contributions  up to 3% of the employees gross pay. During the years ended March
31,  2003 and 2002,  the Company  matched  approximately  $35,000  and  $40,000,
respectively. No discretionary profit sharing contributions were approved by the
Board of Directors for the years ended March 31, 2003 and 2002.


Note 12 - Subsequent Events

Subsequent to year-end, the Company granted options to purchase 16,500 shares of
the Company's  common stock at an exercise  price of $1.75 (fair market value at
the date of grant) to employees of the Company. All options were fully vested at
the date of grant.





Item  8.  Changes  in and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure.


There  have  been no  disagreements  between  the  Company  and its  independent
accountants  on any matter of  accounting  principles  or practices or financial
statement disclosure since the Company's inception.




                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
with Section 16(a) of the Exchange Act.

The following table sets forth information with respect to directors,  executive
officers, and significant employees of the Company. Directors serve for one year
terms. Each director is also a nominee for election to the Board of Directors.

                                                             Tenure as
                                                              Officer
            Name          Age       Position(s)              or Director
------------------------  --  ----------------------       ---------------
      Douglas A. Larson*  48  President and Director       1986 to present

      Kevin M. Sipple     47  Vice President,              1986 to present
                              Secretary and Director

      Jeremy S. Martin    48  Vice President and           1986 to present
                              Director

      Robert E. Weidler   57  Vice President               1998 to present

      Cathleen M. Shoenfel34  Chief Financial Officer      1998 to present

      Kate Janssen        31  Vice President               2002 to present

      George J. Schmitt*  71  Director                     1998 to present

      Don P. Van Winkle*  46  Director                     1998 to present


        * Audit Committee

Douglas  A.  Larson was a  co-founder  of  Eldorado  and has been  President  of
Eldorado since 1991. Mr. Larson's  responsibilities  include corporate  strategy
and  administration  of  all  operating  activities  at  Eldorado.   Before  his
association   with   Eldorado,   Mr.  Larson  worked  as  a  stock  broker  with
Richey-Frankel  and Co. from 1981 to 1983 and with B.J. Leonard,  Inc. from 1980
to 1981. Mr. Larson holds a Bachelor of Science Degree in Business  Finance from
the University of Colorado.

Kevin M. Sipple was a co-founder  of Eldorado  and has served as Vice  President
and Secretary of Eldorado  since 1991.  Mr.  Sipple's  responsibilities  include
management  of  the  wholesale  products  division.  In  addition,  he  is  also
responsible for quality control,  testing,  source  protection and is a licensed
Water Plant operator and manages the utility productions. Before his association
with  Eldorado,  Mr.  Sipple  worked for King  Soopers,  Inc. from 1972 to 1983,
serving in a variety of positions including inventory ordering and control.  Mr.
Sipple attended the University of Colorado from 1973 to 1977.

Jeremy S. Martin was a co-founder  of Eldorado and has served as Vice  President
since 1985. Mr. Martin's  responsibilities  include  management of the sales and
service  business.  In  addition,  he is  also  responsible  for  special  event
promotions and public  relations.  Before his  association  with  Eldorado,  Mr.
Martin was an independent  distributor for Sunasu  International,  a nutritional
products manufacturer. Mr. Martin holds a Bachelor of Science Degree in Business
from the University of Colorado.

Robert E. Weidler joined  Eldorado in 1990 and has served as Production  Manager
from  1991  to  1998.   Currently,   Mr.  Weidler  is  Vice  President  and  his
responsibilities  include  inventory  management,  daily operations for finished
goods and conforming to safety standards,  health department standards and other
governmental  requirements.  Mr.  Weidler holds a Bachelor of Science  Degree in
Sociology from Michigan State University.

Cathleen  M.  Shoenfeld  joined  Eldorado  in 1990 and has  served as  Assistant
Treasurer from 1991 to 1998. Currently, Ms. Shoenfeld is Chief Financial Officer
and her  responsibilities  include the  procurement  of financing  for growth of
operations  of Eldorado  as well as  overseeing  the  accounting  functions  for
Eldorado including the annual audit and corporate reporting. Ms. Shoenfeld holds
a  Bachelor  of  Science   Degree  in  Economics   and  a  Masters  of  Business
Administration from the University of Colorado.

Kate  Janssen  joined  Eldorado  in 1995 and has served as Director of Sales and
Service.  Currently,  Ms.  Janssen is Vice  President in charge of Sales and her
responsibilities  include  management  of the  sales and  service  sector of the
business. Ms Janssen holds a Bachelor of Fine Arts Degree from the University of
Colorado.

George J. Schmitt has been a director of Eldorado since December 1998. From 1968
to 1996, Mr.  Schmitt was CEO and President of Hinckley & Schmitt  Bottled Water
Group.  Mr.  Schmitt  was a  founding  member  of  the  American  Bottled  Water
Association, now called the International Bottled Water Association, in 1959 and
was inducted into the Industry Hall of Fame in 1991.  Mr.  Schmitt is a director
of Eureka Bottled Water Co. and National Fuel  Corporation.  Mr. Schmitt holds a
Bachelor of Arts degree from Dartmouth.

Don P. Van Winkle has been a director of Eldorado since December 1998. From 1996
to present,  Mr. Van Winkle has served as President and CEO of Van Winkle's IGA,
a family owned six store retail  supermarket  chain in New Mexico.  From 1991 to
1996, he resided in Colorado where he provided  contract chief financial officer
and advisory services to a wide range of companies which included Eldorado. From
1980 to 1991,  Mr.  Van  Winkle  was a  corporate  banker  with the two  largest
Colorado based bank holding companies,  formerly United Banks and First National
Bancorporation. Mr. Van Winkle is a director of The Great Divide Brewing Company
in Denver,  CO and Fresh  Produce  Sportswear,  Inc. in Boulder,  CO. He holds a
Bachelor of Science Degree in Finance from New Mexico State University.

Family Relationships

There are no family relationships between any directors or executive officers of
the Company.

Item 10.  Executive Compensation.

In the fiscal  year ended  March 31, 2003 the  Company's  President,  Douglas A.
Larson,  received  compensation  of $119,907 plus other annual  compensation  of
$14,490.  Other  annual  compensation  includes  $6,567 for annual  health  care
premiums,  $3,363 for a 3% match for all  contributions  to the 401(k)  plan and
$4,560 for a car allowance.  Kevin Sipple, Vice President received  compensation
of $119,825 plus other annual compensation of $9,144.  Other annual compensation
includes  $1,988 for annual health care premiums,  $3,360 for a 3% match for all
contributions to the 401(k) plan and $3,796 for a car allowance.  Jeremy Martin,
Vice President received  compensation of $119,951 plus other annual compensation
of $12,591.  Other annual  compensation  includes  $1,988 for annual health care
premiums,  $3,362 for a 3% match for all  contributions  to the 401(k)  plan and
$7,421 for a car allowance.


Item 11.  Security Ownership of Certain Beneficial Owners and Management.

The  following  table sets forth  certain  data with respect to the only persons
known by the Company to be the beneficial  owners of more than five percent (5%)
of the  outstanding  shares of common  stock of the Company as of March 31, 2003
and for all Officers and  Directors as a group.  The persons  indicated  are the
sole beneficial owners of the stock and possess sole voting and investment power
with respect to the shares indicated.


                                          Number of    Percent
 Name and Address of Beneficial Owners      Shares      Owned
--------------------------------------   -----------  ---------


 Kevin M. Sipple......................       763,674      25.5%
 43 Fowler Lane
 Eldorado Springs, CO 80025


Douglas A. Larson.....................       779,005(1)   26.0%
12 Baldwin Circle
Eldorado Springs, CO 80025


Jeremy S. Martin......................       771,060      25.7%
2707 - 4th Street
Boulder, CO 80302


George J. Schmitt.....................       100,000       3.3%
11 Castle Pines N.
Castle Rock, CO 80104


Don P. Van Winkle.....................        50,000       1.7%
4325 Clay Commons Court
Boulder, CO 80303


All Officers and Directors as a Group,     2,679,739      89.4%
8 persons.............................



(1)  Mr.  Larson's  shares  include  options  to buy 17,000  shares  held by Mr.
     Larson's spouse.
(2)  The shares owned by all officers and directors as a group  include  options
     to buy 216,000  shares,  of which 85,000 shares are held by Ms.  Shoenfeld,
     85,000 shares held by Mr. Weidler and 46,000 shares held by Ms. Janssen.

Item 12.  Certain Relationships and Related Transactions.

In August 2001, the Company entered into an agreement to sell certain parcels of
real  estate  to two  Company  officers  for a total of  $900,000.  The  Company
received  cash from the sale of  $500,000.  The Company  also  provided 60 month
carry back  financing of $400,000  with  interest at 7.5% due annually  that has
been recorded as notes  receivable  related  party.  The collateral on the notes
receivable  included  a junior  deed of trust on the  properties  and  shares of
common  stock.  During the year ended  March 31,  2003,  the Board of  Directors
determined  that 250,000  shares of common  stock of the Company was  sufficient
collateral  and  released the junior deed of trust on the  properties.  The note
receivables  include  $35,290 of accrued  interest at March 31, 2003,  including
$5,290 of accrued interest from the year ended March 31, 2002.

The Company  recognized a gain on the real estate sales of $519,937 and deferred
an additional  $357,544 of gain as required by the terms of the carry back note.
In July 2001,  when the Board of Directors  authorized the  aforementioned  real
estate transactions, the Company also authorized the sale of certain real estate
at the then fair value to another officer of the Company. Because of county land
approval  processes and associated  delays, the officer's option to purchase the
real estate has been extended through September 26, 2007.



                                      PART IV

Item 13.  Exhibits and Reports on Form 8-K.

   (a)       Documents filed as a part of this Report.
             ----------------------------------------

The following Exhibits and financial  statement  schedules are filed as exhibits
to this Report:


Exhibit
No.          Description                         Location
--------     -----------                         --------

3            Articles of Incorporation and       Incorporated by reference to
             Bylaws                              Exhibit No. 3 to the
                                                 Registration Statement (No.
                                                 33-6738-D)

3.1          Amended Articles of Incorporation   Incorporated by reference to
                                                 Exhibit 3.1 filed with
                                                 Eldorado's Form 10-KSB for
                                                 the fiscal year ended March
                                                 31, 1998

10.1         1997 Stock Option Plan              Incorporated by reference to
                                                 Exhibit 10.1 to Registration
                                                 Statement No. 333-68553

10.2         Promissory Note with First          Incorporated by reference to
             National Bank of Boulder County     Exhibit No. 10.2 to
             dated June 27, 1997                 Registration Statement No.
                                                 333-68553

10.3         Deed of Trust dated June 27, 1997   Incorporated by reference to
                                                 Exhibit No. 10.3 to
                                                 Registration Statement No.
                                                 333-68553

10.4         U.S. Small Business Administration
             Note - U.S. Bank, August 21, 2001

10.5         U.S. Bank, August 21, 2001
             Deed of Trust

10.6         U.S. Small Business Administration
             Note - Bank of West, August 21, 2001

10.7         Bank of West, August 21, 2001
             Deed of Trust

10.8         Note Receivable - Doug Larson

10.9         Doug Larson - Pledge Agreement

10.10        Note Receivable - Kevin Sipple

10.11        Kevin Sipple - Pledge Agreement


     (b)  Reports on Form 8-K.
          -------------------

No report on Form 8-K was filed during the last quarter of the period covered by
this report.


Item 14.  Controls and Procedures.

(a)  Evaluation of Disclosure  Controls and Procedures.  The Company,  under the
     supervision of the chief executive and financial officer,  has conducted an
     evaluation  of  the  effectiveness  of  the  design  and  operation  of the
     Company's  disclosure  controls and procedures within 90 days of the filing
     date of this quarterly  report.  Based upon the results of this evaluation,
     the Company believes that it maintains  adequate  procedures for gathering,
     analyzing and disclosing all material  information  relating to the Company
     in a  timely  fashion.  There  have  been  no  significant  changes  in the
     Company's controls subsequent to the evaluation date.

(b)  Changes in Internal  Controls.  There were not  significant  changes in our
     internal  controls  or,  to our  knowledge,  in other  factors  that  could
     significantly  affect our disclosure controls and procedures  subsequent to
     the date of their evaluation.




                                   SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities  Exchange
Act of 1934,  the Company has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                      ELDORADO ARTESIAN SPRINGS, INC.



                                      By:/S/ Douglas A. Larson
                                         ---------------------
                                            Douglas A. Larson,
                                            President and Principal
                                            Executive Officer

Dated: June 30, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report
is  signed  below by the  following  persons  on behalf  of the  Company  in the
capacities and on the dates indicated.

     Name and Capacity                                              Date
     -----------------                                              ----

 /S/ Douglas A. Larson                                          June 30, 2003
----------------------------------------------
Douglas A. Larson, President
and Director

/S/ Kevin M. Sipple                                             June 30, 2003
-----------------------------------------------
Kevin M. Sipple, Vice-President,
Secretary and Director

/S/ Cathleen Shoenfeld                                          June 30, 2003
-------------------------------------------
Cathleen Shoenfeld, Chief Financial Officer

/S/ Jeremy S. Martin                                            June 30, 2003
------------------------------------------------
Jeremy S. Martin, Vice-President
and Director

/S/ George J. Schmitt                                           June 30, 2003
------------------------------------------------
George J. Schmitt, Director

/S/ Don P. Van Winkle                                           June 30, 2003
---------------------------------------------
Don P. Van Winkle, Director









          Certification Pursuant to 18 U.S.C. Section 1350, As Adopted
            Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

I, Cathleen Shoenfeld, the Chief Financial Officer of Eldorado Artesian Springs,
Inc. (the "Company"), certify that:

1.   I have reviewed this annual report on Form 10-KSB of the Company;

2.   Based on my  knowledge,  this  annual  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 annual report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information included in this annual 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 annual 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 we 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 annual 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 annual report (the "Evaluation Date"); and

     c)   presented   in  this   annual   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
     annual  report  whether or not 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.

Dated: June 27, 2003


                                          /s/Cathleen Shoenfeld
                                          Name: Cathleen Shoenfeld
                                          Title: Chief Financial Officer





          Certification Pursuant to 18 U.S.C. Section 1350, As Adopted
            Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

I, Douglas Larson,  the Chief Executive  Officer of Eldorado  Artesian  Springs,
Inc. (the "Company"), certify that:

1.   I have reviewed this annual report on Form 10-KSB of the Company;

2.   Based on my  knowledge,  this  annual  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 annual report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information included in this annual 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 annual 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 we 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 annual 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 annual report (the "Evaluation Date"); and

     c)   presented   in  this   annual   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
     annual  report  whether or not 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.

Dated: June 20, 2003


                                          /s/Douglas Larson
                                          Name: Douglas Larson
                                          Title: Chief Executive Officer`