WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

              [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 2002

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13
                 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

        For the transition period from _______________ to _______________

                         Commission File Number: 0-29483


                               Pacific Sands, Inc.
                               -------------------
        (Exact name of small business issuer as specified in its charter)


           Nevada                                              88-0322882
  State or other jurisdiction                                (IRS Employer
of incorporation or organization)                         Identification No.)

                            601 W. Shaw Ave., Suite D
                                Clovis, CA 93612
                    (Address of principal executive offices)

                                 (559) 325-7023
                           ---------------------------
                           (Issuer's telephone number)


Not Applicable  (Former name,  former address and former fiscal year, if changed
since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act of 1934  during the past 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
                                               -------             -------

As of December  31,  2002,  the Company had  26,698,373  shares of its $.001 par
value common stock issued and outstanding.

Transitional Small Business Disclosure Format (check one):

                                           Yes                  No     X
                                               -------             -------

<PAGE>

PART I FINANCIAL INFORMATION

     Item 1. Financial Statements

               Condensed Balance Sheet at December 31, 2002 (unaudited)

               Condensed Statements of Operations for the Quarter Ended December
               31, 2002 and 2001 (unaudited)

               Condensed Statements of Cash Flows for the Quarter Ended December
               31, 2002 and 2001 (unaudited)

               Notes to Condensed Financial Statements (unaudited)

     Item 2. Management's Discussion and Analysis or Plan of Operation

PART II OTHER INFORMATION

         Item 1.  Legal Proceedings

         Item 2.  Changes in Securities

         Item 3.  Defaults Upon Senior Securities

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

         Item 5.  Other Information

         Item 6.  Exhibits and Reports on Form 8-K

         Signatures
<PAGE>







================================================================================
                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
================================================================================


                              Financial Statements
              For the Six Months Ending December 31, 2002 and 2001




<PAGE>

                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                              FINANCIAL STATEMENTS
                   FOR THE SIX MONTHS ENDING DECEMBER 31, 2002



                                TABLE OF CONTENTS



         Independent Auditors' Report.....................................1


         FINANCIAL STATEMENTS

         Balance Sheet....................................................2

         Statement of Stockholders' Equity................................3

         Statement of Operations..........................................4

         Statement of Cash Flows..........................................5

         Notes to Financial Statements.................................6-10



<PAGE>


                          ALEX D. DOMANTAY & ASSOCIATES
                          CERTIFIED PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------






                          INDEPENDENT AUDITORS' REPORT


Board of Directors
Pacific Sands, Inc.
Clovis, CA 93711


We have reviewed the  accompanying  balance sheets of Pacific Sands,  Inc. as of
December 31, 2002 and 2001,  and the related  statements  of income and retained
earnings,  and cash flows for the years then ended, in accordance with standards
established  by the  American  Institute of Certified  Public  Accountants.  All
information  included in these  financial  statements is the  representation  of
Pacific Sands, Inc.

A review consists  principally of inquiries of Company  personnel and analytical
procedures  applied to financial data. It is substantially less in scope than an
examination  in accordance  with  generally  accepted  auditing  standards,  the
objective  of which is the  expression  of an opinion  regarding  the  financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements  in order  for them to be in
conformity with generally accepted accounting principles.


                                              /s/  ALEX D. DOMANTAY & ASSOCIATES

Los Angeles, California
February 7, 2003













             2750 Medlow Avenue, Los Angeles, California 90065-4619
   Tel. No. (323) 982-9062 o email: addacpas@aol.com o Fax No. (323) 982-9036
                                ----------------




<PAGE>

                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                                  BALANCE SHEET
               FOR THE SIX MONTHS ENDED DECEMBER 31, 2002 AND 2001



                                                    December 31,    December 31,
                                                        2002            2001
                                                   -------------    ------------

ASSETS
------

Current Assets

     Cash                                           $     9,611     $    12,272
     Accounts receivable                                179,780          83,491
     Inventory                                          152,867           7,518
     Other current assets                                  --               551
                                                   -------------    ------------

         Total Current Assets                           342,258         103,832

Property and Equipment - net                              3,332           5,173

Distribution Rights                                      40,000            --
                                                   -------------    ------------

Total Assets                                        $   385,590     $   109,005
                                                   =============    ============

 LIABILITIES & STOCKHOLDERS' EQUITY
 ----------------------------------

Current Liabilities

     Accounts payable                               $    61,275     $    48,162
     Other liabilities                                  230,186         155,553
     Notes payable                                       15,000          52,291
                                                   -------------    ------------
         Total Current Liabilities                      306,461         256,006

Commitments and Contingencies                              --              --


 Stockholders' Equity

     Common stock                                        28,699          18,643
     Additional paid-in capital                       2,360,903       1,966,467
     Treasury stock, at cost                             (5,514)        (40,189)
     Deficit                                         (2,304,959)     (2,091,922)
                                                   -------------    ------------
                                                         79,129        (147,001)
                                                   -------------    ------------

Total Liabilities and Stockholders' Equity          $   385,590     $   109,005
                                                   =============    ============



         The accompanying Notes to Financial Statements are an integral
                            part of these statements.

                                      -2-

<PAGE>
<TABLE>
<CAPTION>




                                                         PACIFIC SANDS, INC.
                                                   DBA NATURAL WATER TECHNOLOGIES
                                                  STATEMENT OF STOCKHOLDERS' EQUITY
                                                          DECEMBER 31, 2002



                                                    Common        Additional    Treasury     Treasury                     Retained
                            Number of    Cost Per    Stock         Paid In        Stocks       Stocks    Stockholders'    Earning/
                              Shares      Share    At Par Value    Capital        Shares       Amount       Equity       (Deficit)
                          ------------ --------  ------------  -----------     ----------   ----------   ---------     ------------
<S>                         <C>         <C>       <C>           <C>             <C>          <C>          <C>           <C>
Balance - June 30, 2002     19,648,873            $  19,649     $ 2,032,128      (320,523)   $ (40,189)   $ (74,793)    $(2,086,381)

For Professional Services    3,950,000     0.04       3,950         164,550          --           --        168,500            --

For Professional Services         --                   --           (34,675)      311,523       34,675         --              --

For Distribution Rights      1,000,000     0.04       1,000          39,000          --           --         40,000            --

For Technical &
   Environmental Books       3,750,000     0.04       3,750         146,250          --           --        150,000            --

For Office Expense &
   Supplies                    100,000     0.04         100           3,900          --           --          4,000            --

For Cash                       250,000     0.04         250           9,750          --           --         10,000            --

Net loss                          --       --           --              --            --           --       (218,578)      (218,578)
                           ------------           ---------     -----------     ----------   ----------   ---------     ------------
Balance - Dec. 31, 2002     28,698,873            $  28,699     $ 2,360,903        (9,000)   $  (5,514)   $  79,129     $(2,304,959)
                           ============           =========     ===========     ==========   ==========   =========     ============

          The accompanying Notes to Financial Statements are an integral part of these statements.


                                                                - 3 -
</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                                      PACIFIC SANDS, INC.
                                DBA NATURAL WATER TECHNOLOGIES
                                    STATEMENT OF OPERATIONS
                      FOR THE SIX MONTHS ENDED DECEMBER 31, 2002 AND 2001



                                                      December 31, 2002     December 31, 2001
                                                      -----------------     -----------------
<S>                                                   <C>                   <C>
Net Sales                                              $     33,055           $     95,758

Cost of sales                                                13,222                 66,794
                                                       -------------          -------------
         Gross Profit                                        19,833                 28,964

Selling, General, and Administrative Expenses               238,411                113,546
                                                       -------------          -------------
         Loss from Operations                              (218,578)               (84,582)

Other Income                                                   --                      711

Interest Expenses                                              --                  (22,667)
                                                       -------------          -------------
         Net Loss                                      $   (218,578)          $   (106,538)
                                                       =============          =============

Basic and Diluted Net Loss Per Share                   $      (0.01)          $      (0.01)
                                                       =============          =============

Basic and Diluted Weighted Average Shares                26,931,373             18,128,274
                                                       =============          =============









The accompanying Notes to Financial Statements are an integral part of these statements.








                                             - 4 -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                   PACIFIC SANDS, INC.
                             DBA NATURAL WATER TECHNOLOGIES
                                 STATEMENT OF CASH FLOWS
                       FOR THE SIX MONTHS ENDING DECEMBER 31, 2002

<S>                                                              <C>          <C>
Cash Flows From Operating Activities
     Net loss for the year                                                    $(218,578)
     Adjustments to reconcile net loss to net cash provided by
         operating activities
         Depreciation                                            $     920
         Common shares issued for services, properties, etc        372,500
         Changes in asset and liabilities
               Accounts receivable                                     941
               Inventories                                           6,978
               Other current assets                                (40,000)
               Accounts payable                                     14,109
               Notes payable                                        15,000
               Other current liabilities                            (1,148)     369,300
                                                                -----------   ---------


         Net Cash Flows Used By Operating Activities                            150,722

Cash Flows Used In Investing Activities

     Purchases of property and equipment                                       (150,000)

Cash Flows From Financing Activities

     Issuance of common stocks                                                     --
                                                                              ---------

Net Increase (Decrease) in Cash                                                     722

Cash - Beginning of the Year                                                      8,889
                                                                              ---------
Cash - End of the Year                                                        $   9,611
                                                                              =========
Supplemental Disclosure of Cash Flow Information

     Cash paid for:
         Interest                                                             $    --
                                                                              =========

         Income taxes                                                         $    800
                                                                              =========

     Non-cash Investing and Financing Activities

         Stock issued for services                                            $ 375,000
                                                                              =========

         Debenture discount deducted as interest                              $    --
                                                                              =========

The accompanying Notes to Financial Statements are an integral part of these statements.


                                          - 5 -
</TABLE>

<PAGE>

                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002


NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Nature of Operations
     -------------------------------------

     Pacific  Sands,  Inc.  doing  business as Natural Water  Technologies  (the
     "Company")  was  incorporated  in Nevada  on July 7, 1994 with an  original
     authorized  capital  stock of 25,000  shares of $0.001 par value  which was
     increased to 20,000,000  shares in 1977 with the same par value.  On May 6,
     2002, the capital stock was increased to 50,000,000 shares.

     The Company  manufactures  and distributes a nontoxic  product  formulation
     that  eliminates   itching,   rashes,   and  scum  lines  from  spa  water.
     Additionally, in June 2000, the Company introduced an industrial wastewater
     cleaning system which is designed to lower  Biological  Oxygen Demand (BOD)
     output.

     Inventory
     ---------

     Inventory is stated at the lower of cost or market value  determined  using
     the first-in, first-out (FIFO) method.

     Property and Equipment
     ----------------------

     Property and  equipment are stated at cost.  Depreciation  is computed over
     the estimated  useful lives of three to five years using the  straight-line
     method.

     Revenue Recognition
     -------------------

     Revenue from sales to  distributors  and resellers is  recognized  when the
     related  products  are  shipped.   Products  shipped  to  distributors  and
     resellers  where  significant  obligations  exist and/or  collection is not
     probable are recorded as deferred revenue.

     Advertising and Promotional Costs
     ---------------------------------

     Advertising  and promotion  costs are expensed as incurred.  During the two
     quarter period in December 2002 and 2001,  advertising  and promotion costs
     totaled $1,127 and $1,295 respectively.








                                      - 6 -

<PAGE>

                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002


NOTE 1. NATURE OF  OPERATIONS  AND SUMMARY OF  SIGNIFICANT  ACCOUNTING  POLICIES
        (Continued)

     Income Taxes
     ------------

     The  Company  accounts  for  income  taxes  under  Statement  of  Financial
     Accounting  Standards  (SFAS) 109. Under the asset and liability  method of
     SFAS 109,  deferred income taxes are recognized for the tax consequences of
     temporary  differences by applying  enacted  statutory rates  applicable to
     future years to the  difference  between the financial  statement  carrying
     amounts and the tax bases of existing assets and liabilities.

     Basic and Diluted Net Loss Per Share
     ------------------------------------

     Net loss per share is calculated in accordance  with Statement of Financial
     Accounting  Standards 128, Earnings Per Share ("SFAS 128").  Basic net loss
     per share is based  upon the  weighted  average  number  of  common  shares
     outstanding. Diluted net loss per share is based on the assumption that all
     dilutive  convertible shares and stock options were converted or exercised.
     Dilution is computed by applying  the  treasury  stock  method.  Under this
     method,  options and warrants are assumed to be exercised at the  beginning
     of the  period  (or at the time of  issuance,  if  later),  and as if funds
     obtained  thereby were used to purchase  common stock at the average market
     price during the period.

     Use of Estimates
     ----------------

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions   that  affect  certain   reported   amounts  and  disclosures.
     Accordingly, actual results could differ from those estimates.


     NOTE 2. INVENTORY


                                        December 31, 2002     December 31, 2001
                                        -----------------     ----------------
           Raw materials and supplies       $    2,867           $    7,518

           Technical books for re-sale         150,000                    -
                                        -----------------     ----------------

                                            $  152,867           $    7,518
                                        ================      ================




                                      - 7 -
<PAGE>

                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002


     NOTE 3. PROPERTY AND EQUIPMENT

                                                   December 31,    December 31,
                                                       2002            2001
                                                   ------------    -------------
                     Office equipment              $   15,024       $  15,024

                     Accumulated depreciation          11,692           9,851
                                                   ------------    -------------
                                                    $   3,332       $   5,173
                                                   ------------    -------------

     NOTE 4. COMMON STOCK

     For the six months ending December 31, 2002, the Company issue 9,050,000 at
     the  prevailing  market  value at four  (4(cent))  cents a share for needed
     cash,  services  rendered,  distribution  rights,  and technical  books for
     re-sale.


     NOTE 5. BASIC AND DILUTED LOSS PER SHARE

     The following table  illustrates the  reconciliation  of the numerators and
     denominators of the basic loss per share  computations.  The Company has no
     potentially  dilutive  securities,   options,   warrants  or  other  rights
     outstanding.


                                                     Period Ended December 31
                                                 -------------------------------
                                                       2002             2001
 Basic and diluted loss per share:
 Numerator:
 Net loss                                        $    (218,578)    $   (106,538)
                                                 -------------     ------------

 Denominator:

 Basic and diluted weighted average number of
 common shares outstanding during the period     $  26,931,373     $ 18,128,274
                                                 -------------     ------------
 Basic and diluted loss per share:               $       (0.01)    $      (0.01)
                                                 =============     ============




                                      - 8 -

<PAGE>


                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002



     NOTE 6. INCOME TAXES

          The  Company  recognizes  deferred  tax  assets  and  liabilities  for
          temporary differences between the financial reporting and tax bases of
          its assets and liabilities. Deferred assets are reduced by a valuation
          allowance when deemed appropriate.

          At December  31,  2002,  the Company  has a net  operating  loss carry
          forward for federal tax purposes of $2,304,959.  The Company  recorded
          no benefit for income taxes during the periods presented. The deferred
          tax benefit  allowed at December 31, 2002 was  approximately  $784,000
          using a tax rate of 34%.


     NOTE 7. RELATED PARTY TRANSACTIONS

          Stanley R.  Paulus,  President,  serves  under a  two-year  employment
          contract  renewed  effective August 28, 2000 at compensation of $6,000
          per month. The agreement provides for automatic two year renewals with
          any changes in terms or  compensation  to be negotiated 90 days before
          the contract ends. In addition,  the agreement  provides for incentive
          compensation  based on debts  and  equity  financing  arranged  by Mr.
          Paulus and such  compensation  may be paid in common stock  options at
          $0.01 per share.

          Rita M. Paulus, Treasurer, serves under a two year employment contract
          renewed  effective August 28,2000 at compensation of $1,500 per month.
          The  agreement  provides for  automatic  renewals  with any changes in
          terms or  compensation  to be  negotiated  90 days before the contract
          ends.

          Glenn Dunning,  Secretary, serves under a one-year employment contract
          effective  April 1, 2000 at  compensation  of  $2,000  per  month.  In
          addition,  Mr.  Dunning  shall be paid  200,000  shares of the Company
          stock,  50,000 upon  signing and 50,000 every 90 days.  The  agreement
          provides for  automatic two year renewals with any changes in terms or
          compensation  to be negotiated 90 days before the contract  ends.  The
          employment agreement was terminated in September 2001.


     NOTE 8. GOING CONCERN

          The  accompanying  financial  statements  have been  assuming that the
          Company will  continue as a going  concern.  This basis of  accounting
          contemplates the recovery of the Company's assets and the satisfaction
          of its liabilities in the normal course of business.  Through December
          31, 2002,  the Company had incurred  cumulative  losses of $2,299,959.
          The



                                      - 9 -
<PAGE>


                               PACIFIC SANDS, INC.
                         DBA NATURAL WATER TECHNOLOGIES
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2002



     NOTE 8. GOING CONCERN (Continued)

          Company's successful  transition to attaining profitable operations is
          dependent   upon   obtaining   financing   adequate   to  fulfill  its
          development, marketing, and sales activities, and achieving a level of
          revenues   adequate  to  support   the   Company's   cost   structure.
          Management's plan of operations anticipates that the cash requirements
          of the  Company for the next  twelve  months will be met by  obtaining
          capital  contributions through the sale of common stock and sales from
          operation.  However,  there is no  assurance  that the Company will be
          able to implement its plan and that the remaining  authorized unissued
          stocks  might not be enough to  generate  the funds  needed to be on a
          going concern basis.


     NOTE 9. CONTINGENCIES

          The Company is involved in a lawsuit from a supplier for withholding a
          payment.  This matter concerns a remaining balance due to the supplier
          in the amount of $13,678  representing  approximately 25% of the total
          to be paid due to what the  Company  believe are  deficiencies  in the
          work  performed  by the  supplier.  To date,  the  parties  entered  a
          settlement agreement, wherein the supplier would do the needed repairs
          to their work and at such time as repairs  are  completed  the Company
          agrees to make payments. Should the agreed settlement be unsuccessful,
          the  parties  have  agreed to use  arbitration  to settle any  further
          disagreements.

          No provision was made with regard to the legal case.

          Accounts  receivable  from a major  customer in the amount of $235,718
          invoiced on October 25,2001 and January 17,2002 is being contested for
          compliance  requirements.  Management  believes the  collectibility of
          this  account  although  it has been  past due for  over 120  days.  A
          provision for bad debts of $63,750 was provided todate.





                                     - 10 -



<PAGE>


                            PART II OTHER INFORMATION

      Item 1.     Legal Proceedings

                  There are no legal  proceedings  against the Company and the
                  Company is unaware of proceedings contemplated against it.

      Item 2.     Changes in Securities

                  None

      Item 3.     Defaults Upon Senior Securities

                  None.

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

                  No matters were submitted to the security holders for a vote.

      Item 5.     Other Information

                  There is no other information  deemed material by management
                  for disclosure herein.

      Item 6.     Exhibits and Reports on Form 8-K



                  Reports on Form 8-K
                  -------------------

                  Inapplicable



                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                                          PACIFIC SANDS, INC.

                                                         By:  /s/ Stan Paulus
                                                                  Stan Paulus
                                                      Chief Executive Officer
      Dated: February 14, 2003