FORM 10-QSB
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                  Quarterly Report Under Section 13 or 15(d)
                    of the Securities Exchange Act of 1934

For Quarter Ended December 31, 1997

Commission File Number: 33-6738-D

                        Eldorado Artesian Springs, Inc.
       (Exact name of registrant as specified in its charter as amended)

      Colorado                                    84-0907853
-----------------------
(State or other jurisdiction of incorporation   (IRS Employer
or organization                               Identification No.)        

                  PO Box 445, Eldorado Springs, Colorado  80025
                -----------------------------------------------
                (Address of principal executive offices) (Zip Code)


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


     Indicate  by  check mark whether the registrant (1) has filed all reports
required  to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12  months  (or for such shorter period that the
registrant  was  required  to  file such reports), and (2) has been subject to
such  filing  requirements  for  the  past  90  days.

Yes     X No _____
        -


Number  shares  of  common  stock  outstanding at the latest practicable date,
December  31,  1997:  32,344,948  with  56,045  shares  in  the  treasury.










<PAGE>

                        Eldorado Artesian Springs, Inc.
                        Form 10-QSB, December 31, 1997

                               TABLE OF CONTENTS


Part I - Financial Information                                       Page
                                                                     ----

     Balance Sheet as of March 31, 1997 and
      December 31, 1997                                               3

     Statement of Operations for the nine months and 3 months
      ended December 31, 1997 and 1996                                4

     Statement of Cash Flow for the nine months and 3 months
      ended December 31, 1997 and December 31, 1996                   5

     Notes to Financial Statements                                    6

     Management's Discussion and Analysis of Financial
      Condition & Results of Operations                               7

Part II - Other Information                                           8

Signature Page                                                        9










<PAGE>
                       ELDORADO ARTESIAN SPRINGS, INC.
                                 BALANCE SHEET

<TABLE>
<CAPTION>
                                                December 31,     March 31,
                                                    1997            1997
                                                ------------   -------------
<S>                                               <C>             <C>
                                    ASSETS
Current assets
 Cash                                             $  66,453      $ 244,765
 Accounts receivable
   Trade net                                        476,094        278,421
   Other                                              3,893          3,925
 Inventories                                        135,019         92,548
 Prepaid expenses and other                           9,768         10,893
 Deferred income taxes                               11,845         11,845
                                                    -------        -------
     Total current assets                           703,072        642,397
                                                    -------        -------

Property, plant & equipment (net of depreciation) 1,580,851      1,212,535

Other assets
 Water rights - net                                 115,740        119,106
 Other - net                                         67,909         50,376
 Total other assets                                 183,649        169,482
                                                   --------       --------

Total                                           $ 2,467,572    $ 2,024,414
                                                 ==========     ==========

                     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Accounts payable                               $   150,016    $    97,803
 Accrued expenses                                    78,318         82,230
 Unearned income                                     30,994         33,558
 Current maturities                                 150,466         78,680
                                                   --------        -------
     Total current liabilities                      409,794        292,271

Long-term debt                                    1,390,463      1,223,569

Deferred Income taxes                                40,882         40,882
                                                  ---------       --------
     Total liabilities                            1,841,139      1,556,722
                                                  ---------      ---------

Equity
 Common stock                                        32,345         32,345
 Additional paid-in capital                         265,225        265,225
 Retained earnings                                  170,122        170,122
 Net earnings                                       158,741            -
                                                  ---------      ---------
     Total equity                                   626,433        467,692
                                                  ---------      ---------

Total                                           $ 2,467,572    $ 2,024,414
                                                 ==========     ==========
</TABLE>
<PAGE>
                        ELDORADO ARTESIAN SPRINGS, INC.
                            STATEMENT OF OPERATIONS


<TABLE>
<CAPTION>
                                      Three Months             Nine Months
                                      December 31,             December 31,
                                  --------------------    -------------------
                                     1997        1996       1997         1996
                                  ---------   --------    --------    -------
<S>                                 <C>         <C>         <C>         <C>
Revenue
 Water and related              $   766,897 $   600,308 $ 2,357,476 $ 1,902,117
 Pool                                   (38)         -       68,350      75,419
 Rentals                             11,708      11,865      42,598      35,595
 Returns and allowances              (3,642)     (3,991)     (6,328)    (13,953)
                                 ----------   ---------  ----------  ----------
   Net revenue                      774,925     608,182    2,462,096  1,999,178

Cost of goods sold                  103,431      76,224      362,822    317,802

Gross profit                        671,494     531,958    2,099,274  1,681,376

Operating expenses
 Salaries and related               323,973     248,619      982,628    750,877
 Administrative and general         110,774      87,015      362,996    252,797
 Selling and delivery                74,779      82,708      271,408    283,279
 Depreciation and amortization       85,057      57,819      199,014    161,468
                                 ----------   ---------  -----------  ---------
     Total other expense            594,583     476,161    1,816,046  1,448,421
                                 ----------   ---------  -----------  ---------

Operating income                     76,911      55,797      283,228    232,955

Other income (expense)
 Interest income                        744         275        3,711        819
 Interest expense                   (37,286)    (27,636)    (108,066)   (84,072)
 Income tax expense                 (10,000)         -       (20,132)         -
                                 ----------    --------   ----------  ---------
     Net income (loss)               30,369      28,436      158,741    149,702

Basic net income per common share        -          -            -            -

Weighted average number of shares
 outstanding                     32,344,948  32,344,948   32,344,948 32,344,948
                                 ==========  ==========   ========== ==========
</TABLE>

<PAGE>
                        ELDORADO ARTESIAN SPRINGS, INC.
                            STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                           Three Months       Nine Months
                                           December 31,       December 31,
                                     ---------------------  -----------------
                                        1997      1996         1997    1996
                                     ---------   ---------  -------- --------
<S>                                   <C>           <C>        <C>       <C>
Cash  flows  from  activities
 Net  income                       $  30,369    $  28,436  $ 158,741  $ 149,702
 Adjustments  to  reconcile
   Depreciation  and  amortization    85,057       57,819    199,013    161,468
   Changes  in  assets  and  
    liabilities
     Accounts  receivable            (32,285)      36,491   (197,641)   (32,655)
     Inventory                       (11,413)      (7,564)   (42,471)   (18,892)
     Prepaid expenses and other           -       (39,075)     1,126    (39,075)
     Accounts  payable                18,140       12,868     52,213      3,200
     Accrued  expenses                23,435        8,184     (3,912)   (16,748)
     Unearned  income                    (40)      (1,691)    (2,564)    (7,275)
                                    --------     ---------   --------   --------
       Net cash from operating
        activities                   113,263       95,468    164,505    199,725
                                    --------      -------    --------   --------

Cash  flows  from  investing
 Purchase  of  property  and 
  equipment                         (327,636)     (33,538)  (563,963)  (135,154)
 Increase  in  note  receivable          -              -         -          -
                                    --------      -------    -------    -------
       Net  cash  investing         (327,636)     (33,538)  (563,963)  (135,154)
                                    ---------     --------   -------    --------

Cash  flows  from  financing  activities
 Additions  to  long-term  debt           -            -     1,500,000       -
 Loan fees and other assets              662           671     (17,534)   2,012
 Payments  on  long-term  debt       (28,490)      (13,768) (1,261,320) (40,612)
                                    --------      -------- -----------   ------
      Net cash flows from
       financing                     (27,828)      (13,097)    221,146  (38,600)
                                    --------      -------- -----------   -------

Net increase (decrease) in cash     (242,201)       48,833    (178,312)  25,971

Cash  -  beginning                   308,654        66,427     244,765   89,289
                                    --------        -------    -------- -------

Cash  -  end                       $  66,453    $  115,260   $  66,453 $115,260
                                    ========     =========    ========  ========
</TABLE>

<PAGE>
                         NOTES TO FINANCIAL STATEMENTS

OPINIONS  OF  MANAGEMENT

A.         In the opinion of management, the accompanying financial statements
contain  all  adjustments  (consisting  of  only  normal  recurring  accruals)
necessary  to  present  fairly the financial position as of December 31, 1997,
the  results  of  operations  and  cash  flow  for  the  period  then  ended.

B.        In the opinion of management, the results of operations for the nine
months  ended  December 31, 1997 are not necessarily indicative of the results
to  be  expected  for  the  full  year.

C.     Summary of the Company's significant accounting policies are
incorporated by reference to the Company's March 31, 1997 Annual Report filed
under cover of Form 10-KSB.

D.          The  financial  statements  presented  were prepared on a proforma
consolidated basis.  This gives effect to the combination of Eldorado Artesian
Springs, Inc. and Lexington Funding, Inc. as if it had occurred April 1, 1986.
This business combination was accounted for as a reverse acquisition using the
purchase  method in a manner similar to a pooling of interests. The management
of  Eldorado  Artesian  Springs,  Inc.  has  retained  control of the combined
entity.

E.          During  the  third quarter of fiscal 1998, the Company adopted the
provisions  of  Statement of Financing Accounting Standard, No. 128, "Earnings
Per Share" (FAS 128).  FAS 128 established new definitions for calculating and
disclosing  basic and diluted earnings per share.  In accordance with FAS 128,
all  prior  periods have been restated to conform to the new methodology.  The
restated  amounts  did not differ materially from amounts previously reported.
As  the  Company  has no dilutive potential common shares, no diluted earnings
per  share  is  presented.

<PAGE>
                      MANAGEMENT DISCUSSION AND ANALYSIS
               OF FINANCIAL CONDTITION AND RESULTS OF OPERATION


Revenues  for  the  three  months  ended  December 31, 1997 increased 27.4% to
$774,925    versus  $608,182 for the same period in 1996.  For the nine months
ended  December  31,  1997  revenues  increased  23.2%  to  $2,462,096  versus
$1,999,178  for  the  same  period  in  1996.    Sales of five gallon products
increased by 20.2%, one gallon sales increased by 15% and sales of the smaller
packages  increased  by  60%.

Cost  of  goods  sold  increased  by  14.2%  for  the first nine months.  This
compares  to  an increase of 35% for the same period a year ago.  The decrease
in  costs  is  due  in  large  part  to  improving  pricing  from  suppliers.

Operating expenses for the nine months ended December 31, 1997 increased 25.4%
and  increased  24.9%  for  the  three months ended December 31, 1997.  Wages,
salaries  and  related items increased 30% for the three and nine months ended
December  31, 1997.  This increase is consistent with the increase in revenues
during  the  same  period.

Accounts receivable increased to $479,987 from $267,119 a year ago. During May
1997,  the  Company  installed  a  new  route  accounting  system  which  has
contributed  to the increase in receivables.  The company has seen a reduction
in  the  costs  of  delivery  and are making measures to increase collections.
Accounts  receivable  has  also  been affected by seasonal holiday trends that
traditionally  occur  during this time.  By March 1998, the Company expects an
additional  bad  debt  charge  that  has  historically  been  0.8%  of  sales.

With  the restructuring of the Company debt in June 1997, the Company has used
proceeds  to purchase new bottling equipment.  The equipment will increase the
bottling  speed  which  will  ultimately decrease operating expenses.  The new
equipment  will  be  fully  operational  by  January  1998.

Net  income  for  the  nine months ended December 31, 1997 was $158,741 versus
$149,702  for  the  same  period  one  year ago and for the three months ended
December 31, 1997 was $30,369 versus $28,436 for the same period one year ago.
This  represents  an  increase  of  6.0%  and  6.8%  respectively.










<PAGE>

                          PART II - OTHER INFORMATION

Item 1 - Legal proceedings

No legal proceedings have been filed on behalf of or against the Company, nor
have any claims been made.

Item 2 - Change in Securities

None

Item 3 - Defaults Upon Senior Obligations

There have been no defaults on any securities.  The Company has no obligations
with regard to dividends and no preferred stock outstanding.

Item 4 - Submission of Matters to a Vote of the Security Holders

None

Item 5 - Other Information

None























<PAGE>
                                  SIGNATURES

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



ELDORADO  ARTESIAN  SPRINGS,  INC.

By:  /s/   Douglas  Larson
     ---   ---------------
           Douglas  A.  Larson,  President

By:  /s/   Kevin    M.  Sipple
     ---   -------------------
           Kevin  M.  Sipple,  Secretary