----

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| DELAWARE                        | 77-0313235          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (I.R.S. Employer    |
| incorporation or organization)  | Identification No.) |

| 550 South Hope Street, Suite 2850        |       |
|------------------------------------------|------------|
| Los Angeles, California                  | 90071      |
| (Address of principal executive offices) | (Zip Code) |

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| For the Three Months ended March 31, 2010                                                                           | Page   |
|---------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                |   |
| PART I – FINANCIAL INFORMATION                                                                                |   |
|                                                                                                                |   |
| ITEM 1.  Financial Statements                                                                             |   |
|                                                                                                                |   |
| Cadiz Inc. Consolidated Financial Statements                                                                        |   |
|                                                                                                                |   |
| Unaudited Statements of Operations for the three months ended March 31, 2010 and 2009                               | 1      |
|                                                                                                                |   |
| Unaudited Balance Sheets as of March 31, 2010 and December 31, 2009                                                 | 2      |
|                                                                                                                |   |
| Unaudited Statements of Cash Flows for the three months ended March 31, 2010 and 2009                               | 3      |
|                                                                                                                |   |
| Unaudited Statement of Stockholders’ Equity for the three months ended March 31, 2010                         | 4      |
|                                                                                                                |   |
| Unaudited Notes to the Consolidated Financial Statements                                                            | 5      |
|                                                                                                                |   |
| ITEM 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15     |
|                                                                                                                |   |
| ITEM 3.  Quantitative and Qualitative Disclosures about Market Risk                                       | 23     |
|                                                                                                                |   |
| ITEM 4.  Controls and Procedures                                                                          | 23     |
|                                                                                                                |   |
| PART II – OTHER INFORMATION                                                                                   | 24     |

----

Consolidated Statements of Operations (Unaudited)

|                                                  |   | For the Three Months |   |
|-------------------------------------------------------|--------|----------------------|--------|
|                                                  |   | Ended March 31,      |   |
| ($ in thousands except per share data)                |   | 2010                 |   |   | 2009 |   |
|                                                  |   |                 |   |
| Revenues                                              |   | $                    | 3      |   |   | $ | 29 |   |
|                                                  |   |                 |   |   |   |   |   |   |
| Costs and expenses:                                   |   |                 |   |   |   |   |   |   |
| Cost of sales                                         |   |                 | -      |   |   |   | 101 |   |
| General and administrative                            |   |                 | 4,077  |   |   |   | 2,052 |   |
| Depreciation                                          |   |                 | 99     |   |   |   | 86 |   |
|                                                  |   |                 |   |   |   |   |   |   |
| Total costs and expenses                              |   |                 | 4,176  |   |   |   | 2,239 |   |
|                                                  |   |                 |   |   |   |   |   |   |
| Operating loss                                        |   |                 | (4,173 | ) |   |   | (2,210 | ) |
|                                                  |   |                 |   |   |   |   |   |   |
| Other income (expense)                                |   |                 |   |   |   |   |   |   |
| Interest expense, net                                 |   |                 | (1,033 | ) |   |   | (1,184 | ) |
|                                                  |   |                 |   |   |   |   |   |   |
| Loss before income taxes                              |   |                 | (5,206 | ) |   |   | (3,394 | ) |
| Income tax provision                                  |   |                 | 1      |   |   |   | 1 |   |
|                                                  |   |                 |   |   |   |   |   |   |
| Net loss applicable to common stock                   |   | $                    | (5,207 | ) |   | $ | (3,395 | ) |
|                                                  |   |                 |   |   |   |   |   |   |
| Basic and diluted net loss per common share           |   | $                    | (0.38  | ) |   | $ | (0.27 | ) |
|                                                  |   |                 |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding |   |                 | 13,655 |   |   |   | 12,510 |   |
|                                                  |   |

----

Consolidated Balance Sheets (Unaudited)

|                                                                                                                  |   | March 31, |      |   | December 31, |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|
| ($ in thousands)                                                                                                      |   | 2010      |      |   | 2009         |
|                                                                                                                  |   |      |      |   |         |
| ASSETS                                                                                                                |   |      |      |   |         |
|                                                                                                                  |   |      |      |   |         |
| Current assets:                                                                                                       |   |      |      |   |         |
| Cash and cash equivalents                                                                                             |   | $         | 6,175     |   |         | $ | 8,878 |   |
| Accounts receivable                                                                                                   |   |      | 98        |   |         |   | 175 |   |
| Inventories                                                                                                           |   |      | 88        |   |         |   | 21 |   |
| Prepaid expenses                                                                                                      |   |      | 442       |   |         |   | 341 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Total current assets                                                                                                  |   |      | 6,803     |   |         |   | 9,415 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Property, plant, equipment and water programs, net                                                                    |   |      | 36,819    |   |         |   | 36,613 |   |
| Goodwill                                                                                                              |   |      | 3,813     |   |         |   | 3,813 |   |
| Other assets                                                                                                          |   |      | 436       |   |         |   | 478 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Total Assets                                                                                                          |   | $         | 47,871    |   |         | $ | 50,319 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                            |   |      |      |   |         |   |   |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Current liabilities:                                                                                                  |   |      |      |   |         |   |   |   |
| Accounts payable                                                                                                      |   | $         | 192       |   |         | $ | 499 |   |
| Accrued liabilities                                                                                                   |   |      | 579       |   |         |   | 829 |   |
| Current portion of long term debt                                                                                     |   |      | 18        |   |         |   | 20 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Total current liabilities                                                                                             |   |      | 789       |   |         |   | 1,348 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Long-term debt, net                                                                                                   |   |      | 37,685    |   |         |   | 36,665 |   |
| Tax liability                                                                                                         |   |      | 338       |   |         |   | 321 |   |
| Other long-term liabilities                                                                                           |   |      | 923       |   |         |   | 752 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Total Liabilities                                                                                                     |   |      | 39,735    |   |         |   | 39,086 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Stockholders’ equity:                                                                                           |   |      |      |   |         |   |   |   |
| Common stock - $.01 par value; 70,000,000 shares authorized; shares issued and outstanding – 13,677,772 at |   |      |      |   |         |   |   |   |
| March 31, 2010 and 13,500,997 at December 31, 2009                                                                    |   |      |  137 |   |         |   | 135 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Additional paid-in capital                                                                                            |   |      | 278,857   |   |         |   | 276,749 |   |
| Accumulated deficit                                                                                                   |   |      | (270,858  | )      |         |   | (265,651 | )  |
| Total stockholders’ equity                                                                                      |   |      | 8,136     |   |         |   | 11,233 |   |
|                                                                                                                  |   |      |      |   |         |   |   |   |
| Total Liabilities and Stockholders’ equity                                                                      |   | $         | 47,871    |   |         | $ | 50,319 |   |

----

Consolidated Statements of Cash Flows (Unaudited)

|                                                                                         |   | For the Three Months |   |
|----------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                         |   | Ended March 31,      |   |
| ($ in thousands except per share data)                                                       |   | 2010                 |   |   | 2009 |   |
|                                                                                         |   |                 |   |   |   |   |
| Cash flows from operating activities:                                                        |   |                 |   |   |   |   |
| Net lossAdjustments to reconcile net loss to                                                 |   | $                    | (5,207 | ) |   | $ | (3,395 | ) |
| net cash used for operating activities:                                                      |   |                 |   |   |   |   |   |   |
| Depreciation                                                                                 |   |                 | 99     |   |   |   | 86 |   |
| Amortization of debt discount & issuance costs                                           |   |                 | 380    |   |   |   | 685 |   |
| Interest expense added to loan principal                                                     |   |                 | 655    |   |   |   | 516 |   |
| Compensation charge for stock awards and share options                                       |   |                 | 2,110  |   |   |   | 403 |   |
|         Changes in operating assets and liabilities: |   |                 |   |   |   |   |   |   |
| Decrease in accounts receivable                                                              |   |                 | 77     |   |   |   | 27 |   |
| Increase in inventories                                                                      |   |                 | (67    | ) |   |   | (45 | ) |
| Increase in prepaid expenses and other                                                       |   |                 | (101   | ) |   |   | (122 | ) |
| Decrease in other assets                                                                     |   |                 | 32     |   |   |   | - |   |
| Decrease in accounts payable                                                                 |   |                 | (307   | ) |   |   | (176 | ) |
| Decrease in accrued liabilities                                                              |   |                 | (32    | ) |   |   | (53 | ) |
| Increase in tax liability                                                                    |   |                 | 17     |   |   |   | 27 |   |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Net cash used for operating activities                                                       |   |                 | (2,344 | ) |   |   | (2,047 | ) |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Cash flows from investing activities:                                                        |   |                 |   |   |   |   |   |   |
| Proceeds from sale of short-term investments                                                 |   |                 | -      |   |   |   | 1,500 |   |
| Additions to property, plant and equipment                                                   |   |                 | (352   | ) |   |   | (57 | ) |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Net cash (used in) provided by investing activities                                          |   |                 | (352   | ) |   |   | 1,443 |   |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Cash flows from financing activities:                                                        |   |                 |   |   |   |   |   |   |
| Proceeds from issuance of long-term debt                                                     |   |                 | -      |   |   |   | 48 |   |
| Principal payments on long-term debt                                                         |   |                 | (7     | ) |   |   | (2 | ) |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Net cash (used in) provided by financing activities                                          |   |                 | (7     | ) |   |   | 46 |   |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                    |   |                 | (2,703 | ) |   |   | (558 | ) |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                               |   |                 | 8,878  |   |   |   | 2,014 |   |
|                                                                                         |   |                 |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                     |   | $                    | 6,175  |   |   | $ | 1,456 |   |

----

Consolidated Statement of Stockholders' Equity (Unaudited)

|                                  |   |         |       |   | Additional |   |   |        |   |   | Total               |   |
|---------------------------------------|--------|--------------|------------|--------|------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                                  |   | Common Stock |       |   | Paid-in    |   |   | Accumulated |   |   | Stockholders’ |   |
|                                  |   | Shares       |       |   | Amount     |   |   | Capital     |   |   | Deficit             |   |   | Equity |   |
|                                  |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |
| Balance as of December 31, 2009       |   |         | 13,500,997 |   |       | $      | 135    |        |   | $      | 276,749             |   |   | $ | (265,651 | ) |   | $ | 11,233 |   |
|                                  |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Stock awards                          |   |         | 176,775    |   |       |   | 2      |        |   |   | -                   |   |   |   | - |   |   |   | 2 |   |
|                                  |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Stock based compensation expense |   |         | -          |   |       |   | -      |        |   |   | 2,108               |   |   |   | - |   |   |   | 2,108 |   |
|                                  |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Net loss                              |   |         | -          |   |       |   | -      |        |   |   | -                   |   |   |   | (5,207 | ) |   |   | (5,207 | ) |
|                                  |   |         |       |   |       |   |   |        |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance as of March 31, 2010          |   |         | 13,677,772 |   |       | $      | 137    |        |   | $      | 278,857             |   |   | $ | (270,858 | ) |   | $ | 8,136 |   |

----

Notes To The Consolidated Financial Statements

|                          |   | March 31 |   |   | December 31, |   |
|-------------------------------|--------|----------|--------|--------|--------------|--------|
|                          |   | 2010     |   |   | 2009         |   |
|                          |   |     |   |   |         |   |
| Land and land improvements    |   | $        | 23,334 |   |         | $      | 23,050 |   |
| Water programs                |   |     | 14,274 |   |         |   | 14,274 |   |
| Buildings                     |   |     | 1,161  |   |         |   | 1,161 |   |
| Leasehold improvements        |   |     | 570    |   |         |   | 570 |   |
| Furniture and fixtures        |   |     | 441    |   |         |   | 421 |   |
| Machinery and equipment       |   |     | 915    |   |         |   | 915 |   |
| Construction in progress      |   |     | 45     |   |         |   | 44 |   |
|                          |   |     | 40,740 |   |         |   | 40,435 |   |
|                          |   |     |   |   |         |   |   |   |
| Less accumulated depreciation |   |     | (3,921 | )      |         |   | (3,822 | ) |
|                          |   |     |   |   |         |   |   |   |
|                          |   | $        | 36,819 |   |         | $      | 36,613 |   |

|                                                                                                                                                |   | March 31, |   |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|
|                                                                                                                                                |   | 2010      |   |   | 2009         |   |
|                                                                                                                                                |   |      |   |   |         |   |
| Zero coupon secured convertible term loan due June 29, 2013.  Interest accruing at 5% per annum until June 29, 2009 and at 6%  thereafter |   | $         | 44,285 |   |         | $      | 43,632 |   |
| Other loans                                                                                                                                         |   |      | 34     |   |         |   | 40 |   |
| Debt discount, net of accumulated accretion                                                                                                         |   |      | (6,616 | )      |         |   | (6,987 | ) |
|                                                                                                                                                |   |      | 37,703 |   |         |   | 36,685 |   |
|                                                                                                                                                |   |      |   |   |         |   |   |   |
| Less current portion                                                                                                                                |   |      | 18     |   |         |   | 20 |   |
|                                                                                                                                                |   |      |   |   |         |   |   |   |
|                                                                                                                                                |   | $         | 37,685 |   |         | $      | 36,665 |   |

| 12 MonthsEnding March 31, |   | (in thousands) |   |
|---------------------------|--------|----------------|--------|
|                      |   |           |   |
| 2011                      |   |           | 18     |   |
| 2012                      |   |           | 16     |   |
| 2013                      |   |           | -      |   |
| 2014                      |   |           | 44,285 |   |
|                      |   | $              | 44,319 |   |

| ·   | Maturity date is extended from June 29, 2011, to June 29, 2013; |
|--------------------|-----------------------------------------------------------------|

| ·   | Interest will continue to accrue at 6% per annum through maturity; |
|--------------------|--------------------------------------------------------------------|

| ·   | The conversion feature has been modified to allow up to $4.55 million of principal to be converted into 650,000 shares of Cadiz common stock (“Initial Conversion Portion”) at a conversion price of $7 per share, and the remaining principal and interest to be converted into shares of Cadiz common stock at a conversion price of $35 per share.  If fully converted at June 29, 2013, this would result in Cadiz common stock being issued at an average conversion price of $26 per share; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company now has the right at any time prior to June 29, 2013 to prepay the loan's outstanding principal (other than as to the Initial Conversion Portion) plus all accrued interest in full without penalty, and may at the same time prepay the Initial Conversion Portion either in stock at a 110% conversion premium or, at the election of the lenders, in cash with an equal value (but not less than $4.55 million). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | A 150,000 share award, that vested in three equal installments on January 1, 2008, January 1, 2009, and January 1, 2010.  150,000 shares have been issued pursuant to this award as of January 2010; and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | 800,000 of the shares were designated as Milestone – Based Deferred Stock, none of which were ultimately issued.  The shares were allocated for issuance subject to the satisfaction of certain milestone conditions relating to the trading price of our common stock during the period commencing March 13, 2007, and ending March 12, 2009.  The milestone conditions were not satisfied by March 12, 2009, resulting in the expiration of all 800,000 shares. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Risk free interest rate         | 4.74%     |
|---------------------------------|-----------|
| Current stock price             | $19.74    |
| Expected volatility             | 38.0%     |
| Expected dividend yield         | 0.0%      |
| Weighted average vesting period | 2.0 years |

| ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

|                            | Three Months Ended |   |
|---------------------------------|--------------------|--------|
|                            | March 31,          |   |
|                            | 2010               |   |   | 2009 |   |
|                            |               |   |   |   |   |
| Interest on outstanding debt    |               | $      | 655 |   |   | $ | 516 |   |
| Amortization of financing costs |               |   | 10 |   |   |   | 22 |   |
| Amortization of debt discount   |               |   | 370 |   |   |   | 663 |   |
| Interest income                 |               |   | (2 | ) |   |   | (17 | ) |
|                            |               |   |   |   |   |   |   |   |
|                            |               | $      | 1,033 |   |   | $ | 1,184 |   |

| ·   | Maturity date is extended from June 29, 2011, to June 29, 2013; |
|--------------------|-----------------------------------------------------------------|

| ·   | Interest will continue to accrue at 6% per annum through maturity; |
|--------------------|--------------------------------------------------------------------|

| ·   | The conversion feature has been modified to allow up to $4.55 million of principal to be converted into 650,000 shares of Cadiz common stock (“Initial Conversion Portion”) at a conversion price of $7 per share, and the remaining principal and interest to be converted into shares of Cadiz common stock at a conversion price of $35 per share.  If fully converted at June 29, 2013, this would result in Cadiz common stock being issued at an average conversion price of $26 per share; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We now have the right at any time prior to June 29, 2013 to prepay the loan's outstanding principal (other than as to the Initial Conversion Portion) plus all accrued interest in full without penalty, and may at the same time prepay the Initial Conversion Portion either in stock at a 110% conversion premium or, at the election of the lenders, in cash with an equal value (but not less than $4.55 million). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   | Payments Due by Period |   |
|----------------------------|--------|------------------------|--------|
| Contractual Obligations    |   | Total                  |   |   | 1 year or less |   |   | 2-3 years |   |   | 4-5 years |   |   | After 5 years |   |
| (in thousands)             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long term debt obligations |   | $                      | 44,319 |   |   | $ | 18 |   |   | $ | 16 |   |   | $ | 44,285 |   |   | $ | - |   |
| Interest Expense           |   |                   | 9,599  |   |   |   | 1 |   |   |   | - |   |   |   | 9,598 |   |   |   | - |   |
| Operating leases           |   |                   | 625    |   |   |   | 352 |   |   |   | 273 |   |   |   | - |   |   |   | - |   |
|                       |   | $                      | 54,543 |   |   | $ | 371 |   |   | $ | 289 |   |   | $ | 53,883 |   |   | $ | - |   |
|                       |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

ITEM 

ITEM 

PART 

|   | 31.1 | Certification of Keith Brackpool, Chairman and Chief Executive Officer of Cadiz Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Timothy J. Shaheen, Chief Financial Officer and Secretary of Cadiz Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Keith Brackpool, Chairman and Chief Executive Officer of Cadiz Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Timothy J. Shaheen, Chief Financial Officer and Secretary of Cadiz Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| By:  | /s/ Keith Brackpool                                          | May 10, 2010      |
|-----------|--------------------------------------------------------------|-------------------|
|      | Keith Brackpool                                         | Date         |
|      | Chairman of the Board and Chief Executive Officer  |              |
|      | (Principal Executive Officer)                           |              |
|      |                                                         |              |
|      |                                                         |              |
| By:  | /s/ Timothy J. Shaheen                                       | May 10, 2010 |
|      | Timothy J. Shaheen                                      | Date         |
|      | Chief Financial Officer and Secretary                   |              |
|      | (Principal Financial Officer)                           |              |