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 June 30, 1999

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      (IRS Employer Identification No.)
         incorporation)                      Or organization)

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, 1999 : 2,995,495.




<PAGE>




                         ELDORADO ARTESIAN SPRINGS, INC.




                                      INDEX

                                                                        Page
Part I - Financial Information

Item 1 - Financial Statements

      Balance Sheets June 30, 1999 (Unaudited) and March 31, 1999       F - 1

      Unaudited Statements of Operations For the Three Months Ended
       June 30, 1999 and June 30, 1998............................      F - 2

      Unaudited Statements of Cash Flows For the Three Months Ended
       June 30, 1999 and June 30, 1998 ...........................      F - 3

      Notes to Unaudited Financial Statements ....................      F - 4

Item 2 - Management's Discussion and Analysis of Financial Condition
 and Results of Operations .......................................      F - 5

Part II - Other Information .....................................       F - 9

Signature Page ..................................................       F - 10




<PAGE>


                         ELDORADO ARTESIAN SPRINGS, INC.

                                 Balance Sheets

<TABLE>
<CAPTION>

                                                               June 30,       March 31,
                                                                 1999           1999
                                                              ----------     ----------
                                                              (Unaudited)
                                    Assets
<S>                                                           <C>            <C>
Current assets
  Cash ..................................................     $  354,035     $  361,439
  Accounts receivable
    Trade, net ..........................................        627,963        615,969
    Other ...............................................         14,279         16,326
  Inventories ...........................................        184,085        205,264
  Prepaid expenses and other ............................         26,871         33,106
  Deferred income taxes .................................         18,169         18,169
                                                              ----------     ----------
         Total current assets ...........................      1,225,402      1,250,273
                                                              ----------     ----------

Property, plant & equipment - net .......................      1,744,036      1,773,327
                                                              ----------     ----------

Other assets
  Water rights - net ....................................        109,008        110,130
  Deferred offering costs ...............................        201,506        199,327
  Other, net ............................................         78,552         53,317
                                                              ----------     ----------
         Total other assets .............................        389,066        362,774
                                                              ----------     ----------

                                                              $3,358,504     $3,386,374
                                                              ==========     ==========

                     Liabilities and Stockholders' Equity

Current liabilities
  Accounts payable ......................................     $  122,477     $  152,557
  Accrued expenses ......................................        144,114        134,005
  Deposits ..............................................         73,114         74,757
  Current maturities of long-term debt ..................        188,188        167,385
                                                              ----------     ----------
         Total current liabilities ......................        527,893        528,704

Long-term liabilities
  Long-term debt ........................................      1,357,511      1,417,336
  Deferred income taxes .................................         61,219         61,219
                                                              ----------     ----------
         Total long-term liabilities ....................      1,418,730      1,478,555
                                                              ----------     ----------
         Total liabilities ..............................      1,946,623      2,007,259
                                                              ----------     ----------

Stockholders' equity
   Common stock, par value $.001 per share;
    50,000,000 shares authorized; 2,995,495
    issued and outstanding ..............................          2,995          2,995

  Additional paid-in capital ............................        984,656        984,656
  Retained earnings .....................................        424,230        391,464
                                                              ----------     ----------
                                                               1,411,881      1,379,115
                                                              ----------     ----------

                                                              $3,358,504     $3,386,374
                                                              ==========     ==========
</TABLE>


                       See notes to financial statements.

                                      F - 1
<PAGE>

                         ELDORADO ARTESIAN SPRINGS, INC.

                            Statements of Operations


                                                      Three Months Ended
                                                            June 30,
                                                  ----------------------------
                                                      1999              1998
                                                  -----------      -----------
                                                           (Unaudited)

Revenue
  Water and related .........................     $ 1,223,622      $   878,463
  Pool ......................................          18,259           23,329
  Rentals ...................................          12,900           10,900
                                                  -----------      -----------
   Net revenue ..............................       1,254,781          912,692

Cost of goods sold ..........................         211,605          123,837
                                                  -----------      -----------

Gross profit ................................       1,043,176          788,855
                                                  -----------      -----------

Operating expenses
  Salaries and related ......................         449,365          347,276
  Administrative and general ................         196,138          163,186
  Selling and delivery ......................         243,233          156,164
  Depreciation and amortization .............          78,070           64,309
                                                  -----------      -----------
                                                      966,806          730,935
                                                  -----------      -----------

Operating income ............................          76,370           57,920
                                                  -----------      -----------

Other income (expense)
  Interest income ...........................           1,697            4,574
  Loss on sale of asset .....................            --               --
  Interest expense ..........................         (26,871)         (38,066)
                                                  -----------      -----------
                                                      (25,174)         (33,492)
                                                  -----------      -----------

Income before income taxes ..................          51,196           24,428

Provision for income taxes ..................          18,430            7,144
                                                  -----------      -----------

Net income ..................................     $    32,766      $    17,284
                                                  ===========      ===========

Basic earnings per common share .............     $      0.01      $      0.01
                                                  ===========      ===========

Weighted average number of shares outstanding       2,995,495        2,923,756
                                                  ===========      ===========



                       See notes to financial statements.

                                      F - 2
<PAGE>

                         ELDORADO ARTESIAN SPRINGS, INC.

                            Statements of Cash Flows


                                                       Three Months Ended
                                                            June 30,
                                                     ------------------------
                                                        1999          1998
                                                     ---------      ---------
                                                            (Unaudited)

Cash flows from operating activities
  Net income ...................................     $  32,766      $  17,284
                                                     ---------      ---------
  Adjustments  to  reconcile  net  income to net
  cash provided by operating activities
   Depreciation and amortization ...............        78,070         64,309
   Changes in certain assets and liabilities
    Accounts receivable ........................        (9,947)       (21,037)
    Inventories ................................        21,179         13,973
    Prepaid expenses and other .................         6,235         40,000
    Accounts payable ...........................       (30,080)        40,278
    Accrued expenses ...........................        10,109         18,519
    Deposits ...................................        (1,643)        (2,176)
    Other ......................................       (17,400)          --
                                                     ---------      ---------
                                                        56,523        153,866
                                                     ---------      ---------
      Net cash provided by operating activities         89,289        171,150
                                                     ---------      ---------

Cash flows from investing activities
  Purchase of property and equipment ...........       (46,206)      (300,629)
  Purchases of other assets ....................        (9,286)          --
                                                     ---------      ---------
      Net cash flows used in investing
       activities ..............................       (55,492)      (300,629)
                                                     ---------      ---------

Cash flows from financing activities
  Proceeds from additions to long-term debt ....          --           41,050
  Payments on long-term debt ...................       (39,022)       (61,086)
  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)
  Deferred offering costs ......................        (2,179)          --
                                                     ---------      ---------
      Net cash flows (used in) provided
       by financing activites ..................       (41,201)       480,045
                                                     ---------      ---------

Net (decrease) increase in cash ................        (7,404)       350,566

Cash-- beginning of period .....................       361,439         70,166
                                                     ---------      ---------

Cash-- ending of period ........................     $ 354,035      $ 420,732
                                                     =========      =========

Supplemental disclosures of cash flow information:
  Cash paid for  interest  for the three months ended June 30, 1999 and 1998 was
  $26,781 and  $38,066,  respectively.  Cash paid for income taxes for the three
  months ended June 30, 1999 and 1998 was $0 and $14,011, respectively.

                       See notes to financial statements.

                                      F - 3


<PAGE>



                         ELDORADO ARTESIAN SPRINGS, INC.

                     Notes to Unaudited Financial Statements


Note 1 - Summary of Significant Accounting Policies

Interim Unaudited Financial Statements

The interim  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, 1999 and 1998 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, 1999.


Note 2 - Recently Issued Accounting Pronouncements

During  April 1998,  Statement  of  Position  98-5,  "Reporting  on the Costs of
Start-Up  Activities" was issued. SOP 98-5 requires costs of start-up activities
and organization costs to be expensed as incurred and is effective for financial
statements for fiscal years  beginning  after December 15, 1998. SOP 98-5 is not
expected  to have an impact on the  Company's  financial  position or results of
operations as the Company currently has no such cost capitalized.

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and  Hedging  Activities"  (FAS  133).  FAS  133  requires  all  derivatives  be
recognized  as either  assets  or  liabilities  in the  statement  of  financial
position and  requires  that those  assets and  liabilities  be measured at fair
value.  FAS 133 is effective for all fiscal  quarters of fiscal years  beginning
after June 15, 1999.  Early  application  of all provisions of this statement is
permitted but only as of the  beginning of any fiscal  quarter  beginning  after
issuance  of the  statement.  FAS 133 is not  expected  to have an impact on the
Company's  financial  position or results of  operations  as the Company has not
been involved in derivative activities.


Note 3 - Stockholders' Equity

Stock Option Plan

On May 1, 1999,  the  Company  granted  11,000  options to  employees  under the
Company's  1997 Stock  Option Plan to purchase  common stock at $4.25 per share,
fair market value at the date of the grant.


                                      F - 4


<PAGE>


                         ELDORADO ARTESIAN SPRINGS, INC.


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: availability of debt
and equity financing,  interest rate fluctuations,  effects of regional economic
and market  conditions,  ability to obtain  additional  water rights,  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. 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 and 3
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 $930  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.








                                      F - 5


<PAGE>


                         ELDORADO ARTESIAN SPRINGS, INC.


Results of Operations

The  Company's  net revenues for the three months ended June 30, 1999  increased
$342,089 or 37.5%  compared to the same period in 1998.  This increase  resulted
from increased sales volumes to the Company's  existing customer base as well as
from sales to new customers.  Five and three gallon product sales  generated the
majority of the  increase  in overall  revenues  compared  to the  smaller  size
products.  Revenues for the five and three gallon  products  increased 27.4% for
the three month period  ending June 30, 1999 versus the same period  ending June
30,  1998.  Sales of the one gallon  products  increased  42.4% and sales of the
smaller  (1.5  liter and less) PET  packages  increased  by 134.9% for the three
months ended June 30, 1999 compared to the same period ending June 30, 1998.

For the first  three  months of fiscal  1999,  cost of goods  sold was  $211,605
compared to $123,837 for the same period of fiscal 1998.  Gross profit increased
32.2% from $788,855 for the three months ended June 30, 1998 to  $1,043,176  for
the same period in 1999.

Operating  expenses for the three months ended June 30, 1999 increased  32.3% to
$966,806 from $730,935 for the same period of fiscal 1998.  Salaries and related
expenses  increased  29.4% to $449,365 for the period ended June 30, 1999 versus
$347,276 for the same period of fiscal 1998.  Salaries and related  expenses are
36% and 38% of  sales  for the  three  months  ended  June 30,  1999  and  1998,
respectively.

General and administrative  expenses increased to $196,138 or 15.6% of sales for
the three months ended June 30, 1999  compared to $163,186 or 17.9% of sales for
the same period ending June 30, 1998. Selling and delivery expenses increased to
$243,233 for the three  months ended June 30, 1999 versus  $156,164 for the same
period of fiscal 1998. As a percent of sales,  this  represents  19.4% and 17.1%
for the three months ended June 30, 1999 and 1998, respectively.

Depreciation  and  amortization  was $78,070 for the three months ended June 30,
1999  compared to $64,309 for the same period ended June 30,  1998.  The company
added additional bottling equipment and improvements to the plant that increased
the amount of depreciation.

Interest  income  decreased from $4,574 for the three months ended June 30, 1998
to $1,697 for the same period ended June 30, 1999.

The  Company's  net income for the first three months of fiscal 1999 was $32,766
compared to $17,284 for the three months ended June 30, 1998. This represents an
increase in net income of 89.6% for the three months ended June 30, 1999.








                                      F - 6

<PAGE>


                         ELDORADO ARTESIAN SPRINGS, INC.


Liquidity and Capital Resources

The Company has filed a registration  statement on Form SB-2 with the Securities
and Exchange  Commission  for a secondary  public  offering of 700,000 shares of
common stock.  There is an extremely limited and very sporadic public market for
Eldorado's  common stock at the present time. The anticipated  offering price of
$6 to $7 has  been  determined  by  Eldorado  and  the  underwriter  based  upon
Eldorado's  financial  condition and  prospects  and certain  other  information
rather than upon current market prices of the common stock.  Eldorado intends to
file for  listing  on the  NASDAQ  Small  Cap  Market at the  completion  of the
proposed public  offering.  Eldorado intends to use the proceeds from the public
offering to acquire  additional water rights in order to provide for anticipated
growth in water sales; for the lease or construction of a warehouse/distribution
facility in Denver,  Colorado; and for marketing of its products,  including the
pursuit of  distribution  agreements  with  distributors  of bottled water.  The
Company has $201,506 in deferred  offering costs related to the secondary public
offering  which  have  been  recorded  as an other  asset.  If the  offering  is
successful,  such costs will be charged against the gross proceeds received.  If
at any time it becomes  probable  that the offering will not be  consummated  or
after an unreasonable postponement, such costs will be expensed.

Accounts  receivable  increased  1.9% for the first three  months ended June 30,
1999 compared to the same period ending June 30, 1998.  This  represents 47 days
sales in  receivables  for the three  months  ended June 30, 1999 versus 54 days
sales in receivable for the same period of 1998. The Company has implemented new
credit  policies as well as  increasing  efforts to collect from  customers in a
more timely manner.  Management believes the investment in receivables should be
under 40 days sales outstanding, more in line with industry averages.

Year 2000 Issues

The year 2000  issue is the  result  of  computer-controlled  systems  using two
digits rather than four to define the  applicable  year.  For example,  computer
programs that have  time-sensitive  software may recognize a date ending in "00"
as the year 1900 rather than the year 2000.  This could result in system failure
of  miscalculations  causing  disruptions of operations  including,  among other
things, a temporary inability to process transactions,  send invoices, or engage
in similar normal business activities.

Currently,  our bottling production facilities are not dependent on any computer
systems. Therefore, any potential year 2000 problem that Eldorado faces will not
affect our bottling  lines.  Any future  purchases of equipment will be analyzed
for year 2000 compliance.






                                      F - 7

<PAGE>


                         ELDORADO ARTESIAN SPRINGS, INC.


In  anticipation  of  potential  year 2000  problems,  the  Company has begun to
replace  and  upgrade  its  management  information  systems  to  be  year  2000
compliant.  The Company  expects to complete this process by the quarter  ending
September  1999.  Eldorado  has  consultants  to  coordinate  successful  system
implementation,  including  testing of year 2000 related  problems.  Testing for
year 2000 compliance will commence upon system  implementation and will continue
throughout  1999.  Eldorado  presently  believes  that  with  successful  system
conversions,  the year 2000 issue will not pose significant operational problems
for its systems. Although the Company's new software is designed to be year 2000
compliant,  there can be no assurance  that it contains all necessary  data code
changes.  The reasonably  likely worst case scenario would be that we are unable
to complete our planned  conversions of our management  information systems in a
timely  fashion.  In such case,  year 2000  could have a material  impact on our
operations by requiring us to convert the data to a new system that is year 2000
compliant. The time requirements and cost to do this could be substantial.

The Company  expects  that  assessment,  remediation  and  contingency  planning
activities  for its internal  systems will be ongoing  through 1999. The Company
currently  expects  the total  cost for  these  activities  to be  approximately
$15,000.  This total cost  estimate  does not  include  replacement  of internal
software and hardware in the normal course of business. The costs of the project
and the date established for completion of year 2000  modifications are based on
managements  best  estimates.   These  estimates  were  derived  using  numerous
assumptions of future events,  including the continued  availability  of certain
resources,  third party modification plans and other factors. However, there can
be no guarantee that these estimates will be achieved,  and actual results could
differ materially from those anticipated. Specific factors that might cause such
material  differences include, but are not limited to, the availability and cost
of  personnel  trained in this area and the  ability to locate and  correct  all
relevant  computer codes.  Eldorado does not currently have any information that
would lead it to believe that year 2000 issues relating to its internal  systems
will have a material adverse impact on Eldorado's financial condition or overall
trends in results of operations.

The Company intends to obtain information from its suppliers and major customers
regarding their  products' year 2000  compliance by September 1999.  Third party
year  2000  compliance  is not  within  Eldorado's  control  and we have not yet
received  compliance  information  from all of our  suppliers.  There  can be no
assurance that the failure by a supplier to achieve year 2000  compliance  would
not adversely  affect us. Based on the  information  we receive from third party
suppliers,  we can decide if it will be reliable to continue to do business with
the third party. If we decide the  relationship is  unsatisfactory  based on our
supplier's  inability to deal with the year 2000 issues,  our  contingency  plan
would be to have  sufficient  inventory on hand for a period of time to allow us
to look elsewhere for another  supplier.  No assurances can be made that we will
be able to find another supplier with similar terms and pricing.



                                      F - 8


<PAGE>




                         ELDORADO ARTESIAN SPRINGS, INC.



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

None

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













                                      F - 9


<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

By: /s/Cathleen Collins
       Cathleen Collins, Chief Financial Officer


August 13, 1999










                                F - 10