FORM 10-QSB
                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC 20549

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

For  Quarter  Ended  June  30,  1998

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, June
30,  1998:  2,995,495.




                        ELDORADO ARTESIAN SPRINGS, INC.





                                     INDEX
                                     -----

     Page
     ----
Part I - Financial Information

Item 1 - Financial Statements

         Balance Sheets June 30, 1998 (Unaudited) and March 31,1998       3

         Unaudited  Statements  of  Operations  For  the  Three  
          Months  Ended June  30,  1998  and  June  30,  1997             4

         Unaudited  Statements  of  Cash  Flows  For  the  
          Three  Months  Ended June  30,  1998  and  June  30,  1997      5

         Notes  to  Unaudited  Financial  Statements                      6

     Item  2  -  Management's  Discussion  and  Analysis  of  Financial
     Condition  &  Results  of  Operations                                8

Part  II  -  Other  Information                                          10

     Signature  page                                                     11


                        ELDORADO ARTESIAN SPRINGS, INC.


                                BALANCE SHEETS

<TABLE>
<CAPTION>
                                                June 30,     March 31,
                                                  1998         1998
                                               ----------   ----------
                                              (Unaudited)
<S>                                              <C>           <C>
                                    ASSETS
Current  assets
 Cash                                        $    420,732   $    70,166
 Accounts  receivable
   Trade  -  net                                  519,665       498,320
   Other                                            5,198         5,506
 Inventories                                      108,728       122,701
 Prepaid  expenses  and  other                      8,313        48,313
 Deferred  income  taxes                           16,829        16,829
                                                ---------     ---------
     Total  current  assets                     1,079,465       761,835
                                                ---------     ---------

Property,  plant  and  equipment  -  net        1,762,812     1,525,370
                                                ---------     ---------

Other  assets
 Water  rights  -  net                            113,496       114,618
 Restricted  cash                                 150,000          -
 Other  -  net                                     53,447        54,898
                                                ---------     ---------
     Total  other  assets                         316,943       169,516
                                                ---------     ---------

Total                                          $3,159,220    $2,456,721
                                                =========     =========

                     LIABILITIES AND STOCKHOLDERS' EQUITY
Current  liabilities
 Accounts  payable                             $  170,025    $  129,747
 Accrued  expenses                                 96,198        79,130
 Line-of-credit                                       -          40,000
 Deposits                                          47,002        49,178
 Current  maturities  of  long-term  debt         128,383       123,005
                                                ---------      --------
     Total  current  liabilities                  441,608       421,060

Long-term  liabilities
 Long-term  debt                                1,406,406     1,431,820
 Deferred  income  taxes                           52,921        52,921
                                                ---------      --------
     Total  liabilities                         1,900,935     1,905,801
                                                ---------     ---------

Stockholders'  equity
 Common  stock,  par  value  $.001  
  per  share;  50,000,000 shares authorized;
  2,995,495  issued  and  outstanding               2,995         2,695
 Additional  paid-in  capital                     984,656       294,875
 Retained  earnings                               270,634       253,350
                                                ---------     ---------
                                                1,258,285       550,920
                                                ---------     ---------

                                               $3,159,220    $2,456,721
                                                =========     =========
</TABLE>
                     See notes to financial statements.
<PAGE>


                        ELDORADO ARTESIAN SPRINGS, INC.

                           STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                              For the Three Months Ended
                                                       June  30,
                                              --------------------------
                                                  1998           1997
                                              ------------    ----------
                                                       (Unaudited)
<S>                                              <C>              <C>

Revenue
 Water  and  related                          $    881,057    $  736,905
 Rentals                                            10,900        11,865
 Pool                                               23,329        21,740
 Returns  and  allowances                           (2,594)       (1,656)
                                               -----------     ----------

 Net  revenue                                      912,692       768,854

Cost  of  goods  sold  exclusive  
 of  depreciation  and  amortization
                                                   123,837       118,866
                                               -----------     ---------

Gross  profit                                      788,855       649,988
                                               -----------     ---------

Operating  expenses
 Salaries  and  related                            347,276       295,978
 Administrative  and  general                      163,186        99,510
 Selling  and  delivery                            156,164       112,205
 Depreciation  and  amortization                    64,309        57,093
                                                ----------      --------
                                                   730,935       564,786
                                                ----------      ---------

Operating  income                                   57,920        85,202
                                                ----------      ---------

Other  income  (expense)
 Interest  income                                    4,574         1,281
 Interest  expense                                 (38,066)      (34,754)
                                                ----------      ---------
                                                   (33,492)      (33,473)
                                                ----------     ---------
Net  income  before  income  taxes                  24,428        51,729
                                                ----------     ---------

Provision for income taxes (Note 5)                  7,144            -
                                                ----------     ----------

Net  income  and  comprehensive  income        $    17,284     $  51,729
                                                ==========     =========

Basic  earnings  per  common  share            $       .01     $     .02
                                               ===========     =========

Weighted  average number of shares outstanding   2,995,495     2,695,495
                                               ===========     =========

</TABLE>
                        See notes to financial statements.



                        ELDORADO ARTESIAN SPRINGS, INC.

                           STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                              For the Three Months Ended
                                                       June  30,
                                              --------------------------
                                                  1998            1997
                                              -----------      ---------
                                                       (Unaudited)
<S>                                             <C>                <C>
Cash  flows  from  operating  activities
 Net  income                                   $    17,284   $    51,729
                                               -----------   -----------
 Adjustments  to  reconcile  net  
  income  to  net  cash  provided by
  (used in) operating  activities  -
   Depreciation  and  amortization                  64,309        57,093
   Amortization  of  loan  fees  and  
    origination  costs                               1,451            -
   Changes  in  certain assets and liabilities  -
     Accounts  receivable                          (21,037)     (148,588)
     Inventories                                    13,973          (212)
     Prepaid  expenses  and  other                  40,000         3,248
     Accounts  payable                              40,278        24,050
     Accrued  expenses                              17,068         5,714
     Deposits                                       (2,176)       (2,776)
                                                  --------      --------
                                                   153,866       (61,471)
                                                  --------      ---------
      Net cash provided by (used in)
       operating activities                        171,150        (9,742)
                                                  --------      ---------

Cash  flows  from  investing  activities
 Purchase  of  property,  plant  and  equipment   (300,629)      (70,345)
                                                 ---------       --------
      Net cash flows used in investing
       activities                                 (300,629)      (70,345)
                                                 ---------       ---------

Cash  flows  from  financing  activities
 Additions  to  long-term  debt                     41,050     1,500,000
 Loan  fees  and  origination  cost                    -         (19,771)
 Payments  on  long-term  debt                     (61,086)   (1,049,715)
 Payments  on  line-of-credit                      (40,000)           -
 Proceeds  from  sale  of  common  stock           825,000            -
 Costs  related  to  issuance  of  common  stock  (134,919)           -
 Restricted  cash                                 (150,000)           -
                                                  ----------  ------------
      Net cash flows provided by financing
       activities                                  480,045        430,514
                                                  ----------  ------------

Net  increase  in  cash                            350,566        350,427

Cash  -  beginning  of  period                      70,166        244,765
                                                  --------    ------------

Cash  -  end  of  period                      $    420,732   $    595,192
                                               ============    ==========
</TABLE>

Supplemental  disclosures  of  cash  flow  information:
     Cash  paid for interest for the three months ended June 30, 1998 and 1997
was  $38,066  and  $34,754,  respectively.
     Cash  paid  for income taxes for the three months ended June 30, 1998 and
1997  was  $14,011  and  $16,000,  respectively.


                    See notes to financial statements.



                        ELDORADO ARTESIAN SPRINGS, INC.

                         Notes to financial statements.


NOTE  1  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES
----------------------------------------------------------

Interim  Unaudited  Financial  Statements
-----------------------------------------

The financial statements are unaudited and reflect all adjustments (consisting
only of normal recurring adjustments) which are, in the opinion of management,
necessary  for  a  fair  presentation  of the financial position and operating
results  for  the  interim  periods.   The results of operations for the three
months  ended  June  30,  1998  and 1997 are not necessarily indicative of the
results  of  the  entire  year.   The financial statements included herein are
presented  in accordance with the requirements of Form 10-QSB and consequently
do not include all of the disclosures normally made in the registrant's annual
Form  10-KSB filing.  These financial statements should be read in conjunction
with  the  financial  statements  and notes thereto contained in the Company's
Form  10-KSB  for  the  year  ended  March  31,  1998.


NOTE  2  -  RECENTLY  ISSUED  ACCOUNTING  PRONOUNCEMENTS
--------------------------------------------------------

In  June 1997, the FASB issued Statement of Financial Accounting Standards No.
130,  "Reporting Comprehensive Income" (SFAS 130), which establishes standards
for  reporting  and  display  of  comprehensive  income,  its  components  and
accumulated  balances.  Comprehensive income is defined to include all changes
in  equity except those resulting from investments by owners and distributions
to owners.  Among other disclosures, SFAS 130 requires that all items that are
required  to be recognized under current accounting standards as components of
comprehensive  income,  be reported in a financial statement that is displayed
with  the  same  prominence  as  other  financial  statements.   Currently the
Company's  only  component,  which would comprise comprehensive income, is its
results  of  operations.    SFAS 130 is effective for financial statements for
periods  beginning  after  December  15,  1997,  and  requires  comparative
information  for  earlier  periods  to  be  restated.


NOTE  3  -  STOCKHOLDERS'  EQUITY
---------------------------------

Reverse  Stock  Split
---------------------

On  April  1,  1998, the Company filed with the state to amend its articles of
incorporation  to  reflect  a  12 to 1 reverse stock split that was previously
approved  by  a  vote  of  the  shareholders.    All  prior period comparative
information  has  been  restated  to  reflect  the  reverse  stock  split.

Private  Placement
------------------

On April 22, 1998, the Company completed a private placement of 300,000 shares
of  common  stock  at  $2.75  per share.  The Company received proceeds net of
offering  costs  of  $688,750 from the private placement of which $150,000 was
placed  in a joint account with the placement agent for a potential additional
private  placement.

<PAGE>

NOTE  3  -  STOCKHOLDERS'  EQUITY  (CONTINUED)
----------------------------------------------

Stock  Option  Plan
-------------------

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.

In  connection  with  the  private  placement, the Company issued a warrant to
purchase  30,000  and  250,000  shares of common stock at $3.30 and $11.00 per
share,  respectively.    Both  warrants  expire  on  April  22,  2003.


<PAGE>

ITEM  2:    MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS

This  filing contains certain forward-looking statements within the meaning of
Section  27A  of  the Securities Act of 1933 and Section 21E of the Securities
Exchange  Act  of  1934  and  the  Company  intends  that such forward-looking
statements  be  subject  to  the  safe  harbors  created  thereby.    These
forward-looking  statements include the plans and objectives of management for
future operations, including plans and objectives relating to services offered
by  and  future  economic  performance  of  the  Company.

The  forward-looking  statements  included  herein  are  based  on  current
expectations  that  involve  a  number  of  risks and uncertainties that might
adversely  affect  the Company's operating results in the future in a material
way.  Such  risks  and  uncertainties  include  but  are  not  limited  to the
following: interest rate fluctuations, effects of regional economic and market
conditions,  labor  and  marketing  costs,  operating  costs, packaging costs,
intensity  of  competition, legal claims and the contingencies associated with
year  2000  compliance.

OVERVIEW

Eldorado Artesian Springs, Inc. (Eldorado) is a Colorado based company that is
primarily  involved in the bottling and marketing of "natural" artesian spring
water.  The spring is located in the foothills of the Colorado Rocky Mountains
and  is surrounded by thousands of acres of state and city park land, assuring
a  well  protected  source.    The  artesian  springs located on the Company's
property,  emanate  from one of the most unique geologic sources in the world.
The  water  is  naturally  purified  as  it  rises  up  through many layers of
sandstone  under its own artesian pressure.  Eldorado Artesian Spring water is
bottled  at  the  source in its natural state and is not chemically treated in
any  way.    Currently,  Eldorado's  operations consist of its home/commercial
delivery business (5 gallon bottles) and the PET (polyethylene terephtalate, a
premium  clear  plastic  container)  consumer  business.

Beverage  industry  analysts  reveal that bottled water is the fastest growing
major category in the entire industry.  The bottled water industry as whole is
a  $3.9  billion  business and is currently growing at a rate of 9% to 10% per
year.    The  PET  segment  of  the bottled water industry is currently a $600
million  business and is growing at a much faster rate (at an estimated 20% to
30%  per  year)  than  the  industry as a whole.  Analysts expect just the PET
segment  of  the industry to reach $3 billion in wholesale sales over the next
ten  years,  which  is  an  indicated  rate  of  growth  of  17%  annually.

RESULTS  OF  OPERATIONS

Revenues  for the three months ended June 30, 1998 increased 18.7% to $912,692
versus  $768,854  for  the  same  period  in  1997.    This  increase resulted
principally  from  increased  sales  volume to the Company's existing customer
base  as  well  as from sales to new customers.  Sales of five gallon products
increased  by  15.2%,  one  gallon  sales  increased by 30.8% and sales of the
smaller  PET  packages  increased  by  59.3%.

<PAGE>

RESULTS  OF  OPERATIONS  (CONTINUED)

Cost  of  goods  sold increased 4.2% for the first three months ended June 30,
1998  which  was  attributable  to  the increase in sales.  The costs of goods
relative  to  sales  decreased  from  15.4% for the quarter ended June 1997 to
13.6%  for the quarter ended June 1998.  This decrease in costs in relation to
sales  is  due  to  more  efficient  production  procedures resulting in fewer
damaged goods.  In addition, more efficient purchasing practices have resulted
in  improved  prices  from  suppliers.

Operating  expenses  increased 29.4% for the three months ended June 30, 1998.
Wages, salaries and related items increased 17.3% which is consistent with the
increase  in  revenues  during  the  same  period.  Administrative and general
expenses increased 63.9% for the three months ended June 30,1998.  This larger
than  normal  increase  was  expected  due  to the increase in promotional and
advertising  expenses and product giveaways that occurred during this quarter.

Due  to the foregoing, net income for the three months ended June 30, 1998 was
$17,284  versus  $51,729  for the same period one year ago.  This represents a
decrease  of  52.7%.  This decrease is due in large part to the aforementioned
increase  in  operating  expenses  for  the  quarter  ended  June  30,  1998.

LIQUIDITY  AND  CAPITAL  RESOURCES

On April 22, 1998, the Company completed a private placement of 300,000 shares
of  common  stock  at  $2.75  per share.  The Company received proceeds net of
offering  costs  of  $688,750 from the private placement of which $150,000 was
placed  in  a  joint account with Mills Financial Services, Inc. (the "Agent")
for  a  potential  additional secondary stock offering.  The intention for the
use  of  proceeds  of  the  private  placement include replacing a five gallon
bottling  line  to increase capacity from 160 bottles to 600 bottles per hour.
By the end of June 1998, 50% of the bottling equipment was installed and being
utilized.    The  remaining  equipment  is anticipated to be fully utilized by
August  1998.    In addition, the company is pursuing a distribution agreement
with  a  major  distributor  of  bottled water.  The proceeds from the private
placement  are  being  utilized  to  pursue such a relationship and expand the
Company's  internal  sales  and  distribution  capabilities.  In addition, the
Company  is  actively  looking  to lease or construct a warehouse/distribution
facility  in  the  Denver,  Colorado area in order to add additional warehouse
space.

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.

The  Company  has  traditionally  financed  operations  with  debt.   With the
restructuring  of  debt in June 1997, the Company has been able to improve the
bottling/warehouse  facilities  by expanding floor space and adding additional
high  speed  bottling  equipment.    With the proceeds from a secondary public
offering  as  well as additional debt the company plans to continue to finance
capital  expenditures. No assurance of acquiring additional debt or equity can
be  made  and  this could have a negative effect on future operations if it is
not  successful.

<PAGE>

LIQUIDITY  AND  CAPITAL  RESOURCES  (CONTINUED)

Accounts receivable increased 4.3% to $519,665 for the three months ended June
30,  1998.   This represents 51.2 days sales in receivables.  This increase is
due in part to the effects of the installation of a new computer system in May
1997.    While  the  system  will  decrease  the  costs  for  delivery  and
administrative  expenses  there  were initial delays in billing customers that
caused  a  delay  in receivables. Management has made serious efforts to bring
receivables back to the targeted level of 38 days.  Expenses for bad debts are
expected to be .07% of revenues for the year end March 31, 1999 and management
has  taken  this  into  account  for  the  three  months  ended June 30, 1998.

Management  has  implemented  a  water  rights augmentation program to acquire
additional water rights in order to provide for a forecasted increase in water
sales  resulting  from the expected increase in sales. Management is currently
in negotiations to acquire additional water rights.  The  acquisition of these
water  rights will be at a significant cost to the Company and there can be no
assurance  that such water rights can be obtained.  The failure to augment the
Company's water rights could have an adverse effect on the Company's financial
condition  and  results  of  operations.

The  Company  also  plans to lease or purchase a plastics molding facility and
the necessary molds to produce their own supply of PET bottles and to sell the
bottles  to other companies.  In order to handle the increase in business, the
Company will need to acquire additional off-site warehouse space.  The Company
is  looking to either lease or construct space in order to store raw materials
and  finished  goods.  In addition, the Company will be improving the existing
bottling  and  office  facilities.

The  Company  is poised to achieve significant growth via the expansion of its
retail  PET  business  into  new  geographic  markets.  The PET segment of the
bottled  water  business  is  the fastest growing segment of the bottled water
market.   In order to accomplish broader distribution of the PET products, the
Company  will  need  additional  working capital for marketing investments for
such  things  as slotting fees and marketing promotions.  As the Company grows
and  expands its retail distribution there will be a need to add an additional
brand  marketing  executive.

YEAR  2000  COMPLIANCE

The  Company  is  in the process of developing and finalizing plans to address
the  Year 2000 computer problem and to begin converting their computer systems
to  be  Year  2000 compliant.  The Year 2000 problem is the result of computer
programs  being  written  using  two  digits  rather  than  four to define the
applicable  year.    The  Company  presently  believes  that  with upgrades to
existing  software  and  possibly some replacement, the Year 2000 problem will
not  pose  significant  operational  problems  for  their  computer  systems.
However,  if  such  upgrades  and  replacements  are  not  completed timely or
effectively implemented, the Year 2000 problem could have a material impact on
the  operations  of  the Company.  The Company expects to incur internal staff
costs,  as well as the cost of the software upgrades and replacement as a part
of  this effort.  However, until the Company's plans are finalized, management
is  not  able  to  reasonably  estimate  the  costs  of  achieving  Year  2000
compliance.

<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.    Changes  in  Securities
-----------------------------------

As  discussed  in  Note  3 to the Financial Information contained in Part I to
this  Form  10-QSB, the Company had a 12 to 1 reverse stock split, completed a
private  placement of 300,000 shares of common at $2.75 per share, established
a  stock  option  plan  and issued warrants.  Use of proceeds from the private
placement  were  primarily  used  or will be used for fixed asset purchases to
increase  production  capacity  and  pursuing  a major distribution agreement.
This  is  more  fully  described  in  Management's  Discussion and Analysis of
Financial  Condition  and  Results of Operations contained in Part I Item 2 to
this  Form  10-QSB.

Item  3.      Defaults  Upon  Senior  Securities
------------------------------------------------

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

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

None
----

Item  5.    Other  Information
------------------------------

None
----

Item  6.    Exhibits  and  Reports  on  Form  8-K
-------------------------------------------------

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
     ---                  ----------------