FORM 10-Q
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, 1995

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 (I.R.S. Employer
or organization)                               Identification No.)

 P.O. 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, 1995: 32,164,948 with 56,045 shares in the treasury.








Eldorado Artesian Springs, Inc.
Form 10-Q, September 30, 1995

TABLE OF CONTENTS


		
Part I - Financial Information	Page
	
	Balance Sheet as of March 31, 1995 and
	December 31, 1995		3

	Statement of Operations for the three and nine months
	ended December 31, 1995 and December 31, 1994		4

	Statement of Cash Flow for the three and nine months
	ended December 31, 1995 and December 31, 1994		5

	Notes to Financial Statements		6

	Management's Discussion and Analysis of Financial 
	Condition and Results of Operations	 7-8

Part II - Other Information		9

Signature Page	  10





	The financial statements for the year ended March 31, 1995,
 have been audited.  The financial statements have not been audited 
for the nine months ended December 31, 1995 or 1994.  However, the
 management of Eldorado Artesian Springs, Inc. believe that all 
necessary adjustments have been reflected to present fairly the
 Company's financial position at December 31, 1995, and the results
 of its operations and cash flows for the nine months ended December 31
 1995.	






ELDORADO ARTESIAN SPRINGS, INC.		
Balance Sheet		
		
		
	                           Dec. 31, 1995	March 31, 1995
Assets		
Current Assets		
Cash					94,795		44,120
Accounts Receivable		
Trade Net				210,763		195,673
Other					5,963		5.078
Inventories				84,984		91,472	
Prepaid Expenses and Other		28,739		37,126
Total Current Assets			425,244		373,469
		
Property, Plant & Equipment		1,124,099	918,778
		
Other Assets		
Notes Receivable - stockholders		41,755		40,088
Water Rights - net			124,715		128,081
Other - net				134,833		111,463
Total Other Assets			301,303		279,632
Total					1,850,646	1,571,879
	
Liabilities and Stockholders' Equity	
Current Liabilities	
Accounts Payable			49,149		46,244
Accrued Expenses			40,517		48,025
Unearned Income				6,408		12,268
Current Maturities			163,771		155,327
Total Current Liabilities		259,845		261,864
		
Long Term Debt				1,182,787	1,034,859
Deferred Income Taxes			16,240		16,240
Total Long Term Debt			1,199,027	1,051,099
		
Equity		
Common Stock				32,165		32,165
Additional Paid-in Capital		266,303		266,303
Accumulated Deficit			(27,357)	(27,357)
Less Cost of Treasury Stock		(12,195)	(12,195)
Net Earnings				132,858
Total Equity				391,774		258,916
Total					 1,850,646	 1,571,879
		

ELDORADO ARTESIAN SPRINGS, INC.				
Statement of Operations				
				
			3 Months Ended Dec. 31	9 Months Ended Dec. 31		
				1995	1994	1995	    1994
Revenue				
Water and Related	     468,543	415,055 1,508,491  1,228,007
Pool				378	-	78,420	   79,954
Rentals 			11,515	10,365	31,345	   30,395
Returns and Allowances		7,304	 (94)	 (851)	   (6,113)

NET REVENUE			487,740	425,326	1,617,405  1,322,243
				
Cost of Goods Sold		66,388	48,124	235,384	   161,308
				
Gross Profit			421,352	377,202	1,382,021   1,170,935
				
Operating Expenses				
Salaries and Related		190,722	164,289	627,734	527,459
Administrative and General	60,583	52,114	184,211	163,280
Selling and Delivery		71,753	61,178	211,549	209,936
Depreciation and Amortization	43,973	34,463	131,921	103,423
TOTAL OPERATING EXPENSE		367,031	312,044	1,155,415 1,004,098
Operating Income		54,321	65,158	226,606	166,837
				
Other Income (expense)				
Interest Income			651	793	2,313	2,201
Interest Expense		(32,066) (29,373) (96,061) (80,972)
TOTAL OTHER EXPENSE		(31,415)(28,580)(93,748)(78,771)
		
Net Income (loss)		22,906	36,578	132,858	88,066
				
Net Income Per Share		-	-	-	-
				
Weighted Average Number of				
Shares Outstanding		32,108,90332,108,90332,108,90332,108,903
				
ELDORADO ARTESIAN SPRINGS, INC.							
Statement of Cash Flow							
							
			3 Months Ended			9 Months Ended				
			Dec. 31, '95Dec. 31, '94Dec. 31, '95Dec. 31, '94
							
Cash Flows From Activities							
Net Income			22,906	36,578	132,858	88,066
Adjustments to Reconcile							
Depreciation and Amortization	43,973	34,463	131,921	103,423
Changes in Assets and Liabilities							
Accounts Receivable		12,333	63	(15,975)(12,414)
Inventory			(6,927)	(15,897)6,488	(30,013)
Prepaid Expenses and Other	(1,415)	6,376	8,387	7,773
Accounts Payable		(33,342)(7,899)	2,905	20,784
Accrued Expenses		(1,106)	(5,484)	(7,508)	4,949
Unearned Income			(2,249)	(2,257)	(5,860)	(5,050)
Net Cash From Operating		34,173	45,943	253,216	177,518
							
Cash Flows From Investing 							
Purchase of Property and Equipment(176,106)(64,784)(333,876)(225,795)
Increase in							
Note Receivable (-)		(555)	(555)	(1,667)	(1,667)
Net Cash From Investing Activities(176,661)(65,339)(335,543)	(227,462)
							
Cash Flows From Financing Activities							
Increase In Long-Term Debt	186,210	56,588	300,123	172,069
Loan Fees and Other Assets	(680)	(680)	(23,370)(19,191)
Payments On Long-Term Debt	(64,177)(32,643)(143,751)(87,795)
Net Cash From Financing 	121,353	23,265	133,002	65,083
							
Net Increase (Decrease) in Cash	(21,135)3,869	50,675	15,139
							
Cash - Beginning		115,930	53,232	44,120	41,962
							
Cash - Ending			94,795	57,101	94,795	57,101
							
							
NOTES TO FINANCIAL STATEMENTS
OPINIONS OF MANAGEMENT
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, 1995, the 
results of operations and cash flow for the period then ended.
In the opinion of management, the results of operations for the three months
ended December 31, 1995 are not necessarily indicative of the results to be
expected for the full year.
Summaries of the Company's significant accounting policies are incorporated
by reference to the Company's March 31, 1995, Annual Report filed under
cover of Form 10-K.
The financial statements presented were prepared on a pro forma 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.
Income per common share is computed by dividing the net income by the
weighted average number of shares of common stock outstanding during the
period.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
Revenues for the quarter end December 31, 1995, were $487,740, an increase
of 14.7% from the same period a year ago.  For the nine months ended
December 31, 1995, revenues increased 21.4% from the similar nine months
ended December 31, 1994, to $1,617,405.  Industry information tracking
services estimated growth for the bottled water industry for the year 
1995 to be 10.8%.  The company's revenue growth is nearly twice the industry
average.  Of the company's net revenues, only 93.27% are derived from the
sales of bottled water and related items, the balance of revenues are 
attained through property rentals and operation of the summer resort 
facilities.  When water and related revenues only are compared to the same 
period a year ago the increase is 22.8% ($1,508,491 in 1995 versus 
$1,228,007 in 1994).
Cost of goods sold expenses increased by 38% for the three months ended 
December 31, 1995, and by 45.9% for the nine month period when compared to 
the same period a year ago.  These larger than revenue increases are mostly
due to the increased volume of PET bottle products that have significantly 
higher costs of inventory than the basic five gallon delivered products.  
An ongoing higher cost of goods is expected as management promotes the 
company's PET bottle products to an ever increasing percentage of the 
company's business.
Operating expenses for the three months and nine months ended December 31, 
1995, increased by 17.6% and 15.1% respectively from the same periods a year
ago.  The individual categories of Salaries and Wages, General and 
Administrative, Selling and Delivery, and Depreciation and Amortization all
were very representative of the category increase as a whole, except for 
depreciation that increased 27.6% when compared to a year ago for both the 
three and nine month periods.  The increased depreciation expense is a 
direct result of the additions of machinery and equipment necessary to 
expand manufacturing capabilities and provide dispenser rental equipment to
an increasing customer base.
Interest expense increased by 9.1% and 19% from a year ago for the three and 
nine month reporting periods.  The overall increase is attributable to 
additional debt financing of the aforementioned equipment additions.  
The lower increase for the three months when compared to year to date 
increases reflects the seasonal slowing of business for winter and thus 
reduced equipment additions.
Net income for the three months was $22,906 down 37.4% from the same period
a year ago.  This is representative in part by a $10,224 expense for damaged
inventory, the increased depreciation, and a slower than expected sales 
period.  Net income for the nine months was $132,858 and increase of 50.9% 
from the same nine months in 1994.
During the nine months ended December 31, 1995, total assets of the company
have increased $278,767 to $1,850,646.  During the same period of time 
liabilities increased by $145,909 and shareholder's equity increased 
$132,858 to $391,774.  For the same nine months the liquidity position of 
the company has improved significantly as is demonstrated by the current 
ratio, which has improved to 1.64:1 from 1.43:1 on March 31, 1995.
Accounts receivable increased slightly during the latest three months end 
December 31,1995.  When measured in terms of days sales in receivables, the
increase was from 38 days to 39.6 days.  This reflects prior years history 
for this quarter.  Management believes this to be a seasonal holiday related
occurrence and not a long-term trend.
During the quarter ended December 31, 1995, the company purchased a parcel 
of adjacent (surrounded) property for a total cost of $175,000.  The 
property contains two dwelling units that the company intends to rent out to
defray any effects of negative cash flow.  Management believed this 
acquisition prudent for several reasons: 1) Parts of the dwellings were 
constructed on land already deeded to the company, therefore this purchase 
circumvents the protracted costs of expensive litigation. 2) The dwelling 
units are in close proximity to one of the twelve sources of water the 
company uses, and now management can undertake measures to insure protection
of the water source in question from household waste.
On December 18, 1995, the company received a letter of commitment from its 
principle bank (Bank One - Boulder) to restructure the company's debt by 
bundling it into one all-encompassing note secured by the company's real 
properties.  This commitment is pending completion of an environmental audit
and depends upon adequate appraisal valuation of the property.  Terms of the
commitment are a rate of prime plus 3/4%, amortized over twelve years, with
a five year call.  There are additional financial covenants contained in the
commitment that were negotiated and mutually agreed upon by management and 
Bank One representative.  Management is cautiously optimistic that this debt
restructuring will be completed prior to the end of the fiscal year on March
31, 1996.  If closed the net effect of the new note structure would increase
earnings before tax an estimated  $60,oo annually and also increase free 
cash flow approximately $200,000 per year.  This would enable the company to
fund growth and capital equipment additions from internally generated funds.
Management is continuing to investigate the possibility of raising equity 
capital through private placement sources.  Even though the aforementioned 
debt restructuring would greatly improve the company's cash position, 
management believes an equity infusion is necessary if the company is to 
become a viable factor in the bottled water market.
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

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 Sipple
Kevin M. Sipple, Secretary