UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 1997

                                       OR

         [ ]       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: 0-10363


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP.
             (Exact name of registrant as specified in its charter)

                 California                            95-3523265
       (State or other jurisdiction of              (I.R.S. Employer
       incorporation or organization)              Identification No.)

    400 South El Camino Real, Suite 1100
            San Mateo, California                        94402-1708
  (Address of principal executive offices)               (Zip Code)

                                 (415) 343-9300
                         (Registrant's telephone number)

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 __



          Total number of units outstanding as of June 30, 1997: 18,346



                                  Page 1 of 13
<PAGE>


Part I.           FINANCIAL INFORMATION


Item 1.           Financial Statements.

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                                 Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                        June 30,                   December 31,
                                                                          1997                        1996
<S>                                                                  <C>                         <C>
Assets
Investments in real estate:
    Rental property held for sale                                    $        2,390              $        2,563
    Land held for sale                                                        1,769                       1,794
                                                                     --------------              --------------
           Net real estate investments                                        4,159                       4,357

Cash and cash equivalents                                                       354                         467
Deferred financing costs and other fees,
    net of accumulated amortization of
    $52 and $109 at June 30, 1997 and
    December 31, 1996, respectively                                              35                          37
Other assets                                                                     10                          16
                                                                     --------------              --------------

           Total assets                                              $        4,558              $        4,877
                                                                     ==============              ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Note payable                                                     $        1,806              $        1,821
    Accounts payable and other liabilities                                       46                          66
                                                                     --------------              --------------

       Total liabilities                                                      1,852                       1,887
                                                                     --------------              --------------

Partners' Equity (Deficit):
    General partners                                                            (25)                        (19)
    Limited partners, 18,346 limited partnership
      units outstanding at June 30, 1997 and
      December 31, 1996                                                       2,731                       3,009
                                                                     --------------              --------------

           Total partners' equity                                             2,706                       2,990
                                                                     --------------              --------------

              Total liabilities and partners' equity                 $        4,558              $        4,877
                                                                     ==============              ==============
</TABLE>

                 See accompanying notes to financial statements.




                                  Page 2 of 13
<PAGE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Operations
          (in thousands, except units outstanding and per unit amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Three Months ended                       Six Months ended
                                                      June 30,           June 30,              June 30,         June 30,
                                                        1997               1996                 1997               1996
                                                    ----------         ---------              ---------        ----------
<S>                                                 <C>                <C>                    <C>              <C>
Revenues:
 Rental income                                      $      137         $      146             $     267        $      274
 Interest and other income                                  22                  1                    23                11
                                                    ----------         ----------             ---------        ----------

        Total revenue                                      159                147                   290               285
                                                    ----------         ----------             ---------        ----------

Expenses:
 Operating                                                  55                 66                   114               143
 Interest                                                   45                 45                    89                91
 Depreciation (1996 only) and amortization                   6                 51                     7                99
 Provision for impairment of investments
    in real estate                                         215                 --                   215                --
 General and administrative                                 57                 79                   116               136
 Expenses associated with undeveloped land                  21                 11                    33                27
                                                    ----------         ----------             ---------        ----------

        Total expenses                                     399                252                   574               496
                                                    ----------         ----------             ---------        ----------
Net loss                                            $     (240)         $    (105)            $    (284        $     (211)
                                                    ==========         ==========             =========        ==========

Net loss per limited partnership unit               $  (12.81)         $    (5.61)            $  (15.15)       $   (11.27)
                                                    ==========         ==========             ==========       ==========

Weighted average number of limited partnership
  units outstanding during the period used to
  compute net loss per limited partnership unit         18,346             18,357                18,346            18,357
                                                    ==========         ==========             =========        ==========


</TABLE>








                 See accompanying notes to financial statements.




                                  Page 3 of 13
<PAGE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements of Partners' Equity (Deficit)
                 For the six months ended June 30, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                             General              Limited
                                                             Partners            Partners               Total

<S>                                                       <C>                   <C>
Balance at December 31, 1996                              $         (19)        $      3,009        $       2,990

Net loss                                                             (6)                (278)                (284)
                                                          --------------        -------------       --------------

Balance at June 30, 1997                                  $         (25)        $      2,731        $       2,706
                                                          ==============        ============        =============



Balance at December 31, 1995                              $          (3)        $      3,796        $       3,793

Net loss                                                             (4)                (207)                (211)
                                                          -------------         ------------        -------------

Balance at June 30, 1996                                  $          (7)        $      3,589        $       3,582
                                                          =============         ============        =============



</TABLE>












                 See accompanying notes to financial statements.



                                  Page 4 of 13
<PAGE>


                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                       Six months ended
                                                                                           June 30,
                                                                                 1997                     1996
                                                                             ----------                ----------
<S>                                                                          <C>                       <C>
Cash flows from operating activities:
  Net loss                                                                   $     (284)               $     (211)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Depreciation and amortization                                                     7                        99
    Amortization of loan fees, included in
      interest expense                                                                2                         2
    Provision for impairment of investments in
      real estate                                                                   215                        --
Changes in certain assets and liabilities:
    Deferred financing costs and other fees                                          (7)                       --
    Other assets                                                                      6                         5
    Accounts payable and other liabilities                                          (20)                       56
                                                                             -----------               ----------

       Net cash used for operating activities                                       (81)                      (49)
                                                                             -----------               ----------

Cash flows from investing activities:
    Additions to real estate                                                        (17)                      (21)
                                                                             -----------               ----------

Cash flows from financing activities:
    Note payable principal payments                                                 (15)                      (12)
                                                                             -----------               ----------

Net decrease in cash and cash equivalents                                          (113)                      (82)

Cash and cash equivalents at beginning of period                                    467                        83
                                                                             ----------                ----------

Cash and cash equivalents at end of period                                   $      354                $        1
                                                                             ==========                ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                     $       94                $       89
                                                                             ==========                ==========


</TABLE>




                 See accompanying notes to financial statements.




                                  Page 5 of 13
<PAGE>


                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                  June 30, 1997
                                   (Unaudited)


Note 1.           THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial  Corporation  (RFC) and Daniel Lee Stephenson
(the Sponsors) and Glenborough Corporation (successor by merger with Glenborough
Inland Realty  Corporation),  the accompanying  unaudited  financial  statements
contain all  adjustments  (consisting  of only  normal  accruals)  necessary  to
present  fairly the  financial  position of Rancon  Realty Fund I, a  California
Limited  Partnership,  (the  Partnership)  as of June 30, 1997 and  December 31,
1996,  and the related  statements  of  operations  for the three and six months
ended June 30, 1997 and 1996, and changes in partners' equity (deficit) and cash
flows for the six months ended June 30, 1997 and 1996.

Allocation of profits,  losses,  cash  distributions  from  operations  and cash
distributions  from sales or  financing  are made  pursuant  to the terms of the
Partnership  Agreement which  generally  allocates such items 98% to the limited
partners and 2% to the general partners.

On February 12, 1997, the general partners adopted a plan of orderly liquidation
of the  Partnership's  assets.  Accordingly,  all investments in real estate are
currently being marketed for sale. These  investments are classified as property
and land held for sale on the Partnership's  June 30, 1997 and December 31, 1996
balance  sheets and are recorded at the estimated  fair value of the  respective
asset.  The carrying  value of the  investments  in real estate at June 30, 1997
does not purport to represent  the  ultimate  sales price the  Partnership  will
realize from the  disposition  of these assets nor are the amounts  reflected in
the accompanying  financial statements intended to represent the ultimate amount
to be distributed to partners.

In December,  1994, RFC entered into an agreement with  Glenborough  Corporation
(Glenborough) whereby RFC sold to Glenborough the contract to perform the rights
and  responsibilities  under  RFC's  agreement  with the  Partnership  and other
related  Partnerships  (collectively,  the  Rancon  Partnerships)  to perform or
contract on the Partnership's behalf for financial, accounting, data processing,
marketing,  legal,  investor  relations,  asset and  development  management and
consulting  services for the  Partnership for a period of ten years or until the
liquidation  of  the  Partnership,  whichever  comes  first.  According  to  the
contract,  the Partnership will pay Glenborough for its services as follows: (i)
a specified asset  administration  fee, which is fixed for five years subject to
reduction in the year following the sale of assets, currently $151,000 per year;
(ii) sales fees of 2% for improved properties; (iii) a refinancing fee of 2% and
(iv) a management fee of 5% of gross rental receipts. As part of this agreement,
Glenborough will perform certain responsibilities for the general partner of the
Rancon  Partnerships  and RFC  agreed  to  cooperate  with  Glenborough,  should
Glenborough  attempt  to  obtain a  majority  vote of the  limited  partners  to
substitute itself as the Sponsor for the Rancon Partnerships. This agreement was
effective January 1, 1995. Glenborough is not an affiliate of RFC.

                                  Page 6 of 13
<PAGE>


                            RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                  June 30, 1997
                                   (Unaudited)

Basis of Accounting - The accompanying  financial  statements have been prepared
on the  accrual  basis of  accounting  in  accordance  with  generally  accepted
accounting  principles  under the presumption that the Partnership will continue
as a going  concern.  As discussed  above,  on February  12,  1997,  the general
partners  adopted a plan of orderly  liquidation  of the  Partnership's  assets.
However,  the  liquidation  proceeds  and the timing  thereof are not  currently
estimable.  Once  such  liquidation  proceeds  and the  cost and  timing  of the
liquidation become determinable,  the Partnership will commence reporting on the
liquidation  basis of accounting  whereby  remaining assets will be presented at
the estimated realizable value and remaining liabilities,  including a provision
for the  estimated  costs  of the  plan,  will  be  presented  at the  estimated
settlement  value.  Accordingly,  the accompanying  financial  statements do not
provide  for any  adjustments  relating  to the  aforementioned  plan of orderly
liquidation.  Effective January 1, 1997, the Partnership ceased  depreciation of
the rental properties held for sale.

Reclassification  - Certain 1996 balances have been reclassified to conform with
the current period presentation.

Note 2.           REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS
                  ----------------------------------------------

These  unaudited  financial  statements  should be read in conjunction  with the
Notes to Financial Statements included in the 1996 audited financial statements.

Note 3.           INVESTMENTS IN REAL ESTATE

As of June 30, 1997, the Partnership  owned the following  properties:  Mountain
View  Plaza  Shopping   Center  (a  57,456  square  foot  shopping   center  and
approximately  8.9 acres of undeveloped  land),  the Rancon Commerce Center Auto
Service  Center (a 25,761  square foot  commercial/industrial  center),  and the
Rancon  Commerce  Center lots (7 undeveloped  lots totaling  approximately  13.9
acres).

On March 11, 1997,  the  Partnership  entered into a Purchase and Sale Agreement
with an  unaffiliated  third party for the sale of Mountain View Plaza  Shopping
Center and the adjacent land. The sale was expected to be completed by April 15,
1997 for a purchase price of  approximately  $2,150,000.  On April 15, 1997, the
Purchase and Sale Agreement expired;  however,  on June 3, 1997, the Partnership
entered  into a  Reinstatement  of  Agreement  of  Purchase  and  Sale  with the
potential buyer at a reduced purchase price of $1,920,000.  The sale is expected
to be completed by September 14, 1997.  The  Partnership  intends to pay-off the
related debt on the Mountain  View  Shopping  Center  property with the proceeds
from the sale.

                                  Page 7 of 13
<PAGE>

                            RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                  June 30, 1997
                                   (Unaudited)


At June 30, 1997, due to the current potential sales price, management concluded
that the carrying value of the  Partnership's  investment in Mountain View Plaza
Shopping  Center and adjacent lots were in excess of their  estimated fair value
and a provision for  impairment of the  investment in the amount of $215,000 was
recorded.

On June 18, 1997,  the  Partnership  entered into a Purchase and Sale  Agreement
with an  unaffiliated  third  party for the sale of one of the  Rancon  Commerce
Center  lots.  The  potential  buyer has until  August  15,  1997 to ratify  the
agreement.  The Partnership is in negotiations with two potential buyers for the
remaining lots.

On August 1, 1997, the Partnership  sold the Rancon Commerce Center Auto Service
Center and a Rancon  Commerce  Center lot to an  unaffiliated  third party for a
purchase  price of  $1,176,000  less  commissions  and  other  closing  costs of
$68,000.  The sale was an all cash sale and the  Partnership  has no  continuing
obligations  or  involvement  in the  property.  The  Partnership  recognized  a
$138,000 gain on the sale of the property.






                                  Page 8 of 13
<PAGE>

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

INTRODUCTION

The following discussion addresses the Partnership's financial condition at June
30, 1997 and its results of  operations  for the six months  ended June 30, 1997
and 1996. This information  should be read in conjunction with the Partnership's
audited  December  31,  1996  Financial  Statements,  notes  thereto  and  other
information contained elsewhere in this report.

LIQUIDITY AND CAPITAL RESOURCES

Rancon  Realty  Fund I, a  California  limited  partnership,  (the  Partnership)
completed  its public  offerings  of limited  partnership  units  (Units) in the
amount of $15,981,000 (net of selling and organization  expenses) in July, 1983.
As of June 30, 1997, the Partnership had cash and cash  equivalents of $354,000.
The remainder of the  Partnership's  assets consist primarily of its investments
in real estate,  all held for sale,  which totaled  approximately  $4,159,000 at
June 30, 1997.

On February 12, 1997, the general partners adopted a plan of orderly liquidation
of the  Partnership's  assets.  Accordingly,  all investments in real estate are
currently  being marketed for sale.  These  investments are classified as rental
property and land held for sale on the  accompanying  June 30, 1997 and December
31, 1996  balance  sheets and are  recorded at the  estimated  fair value of the
respective  assets. The carrying value of the investments in real estate at June
30, 1997 does not purport to represent the ultimate sales price the  Partnership
will realize from the disposition of these assets nor are the amounts  reflected
in the  accompanying  financial  statements  intended to represent  the ultimate
amount to be distributed to partners.

The Partnership's source of funds have included mortgage indebtedness,  property
operations,  and property sales. Funds from property  operations consist of cash
generated from rental  activities  reduced by related rental  expenses and costs
associated with obtaining tenants.  Net cash generated by property operations as
well as the  Partnership's  cash reserves and interest  income thereon have been
used to pay expenses related to the Partnership's administrative operations.

All of the  Partnership's  assets  are  located  within  the  Inland  Empire,  a
submarket  of  Southern  California,  and have  been  directly  affected  by the
economic weakness of the region. Management believes, however, that while prices
have not increased  significantly,  the Southern  California  real estate market
appears to be improving.

As of June 30, 1997, the Partnership  owned the following  properties:  Mountain
View  Plaza  Shopping   Center  (a  57,456  square  foot  shopping   center  and
approximately  8.9 acres of undeveloped  land),  the Rancon Commerce Center Auto
Service  Center (a 25,761  square foot  commercial/industrial  center),  and the
Rancon Commerce  Center lots (7 undeveloped  lots totaling  approximately  15.52
acres).

                                  Page 9 of 13
<PAGE>

On March 11, 1997,  the  Partnership  entered into a Purchase and Sale Agreement
with an  unaffiliated  third party for the sale of Mountain View Plaza  Shopping
Center and the adjacent land. The sale was expected to be completed by April 15,
1997 for a purchase price of  approximately  $2,150,000.  On April 15, 1997, the
Purchase and Sale Agreement expired;  however,  on June 3, 1997, the Partnership
entered  into a  Reinstatement  of  Agreement  of  Purchase  and  Sale  with the
potential buyer at a reduced purchase price of $1,920,000.  The sale is expected
to be completed by September 14, 1997.  The  Partnership  intends to pay-off the
related debt on the Mountain  View  Shopping  Center  property with the proceeds
from the sale.

On June 18, 1997,  the  Partnership  entered into a Purchase and Sale  Agreement
with an  unaffiliated  third  party for the sale of one of the  Rancon  Commerce
Center  lots.  The  potential  buyer has until  August  15,  1997 to ratify  the
agreement.  The Partnership is in negotiations with two potential buyers for the
remaining lots.

On August 1, 1997, the Partnership  sold the Rancon Commerce Center Auto Service
Center and a Rancon  Commerce  Center lot to an  unaffiliated  third party for a
purchase  price of  $1,176,000  less  commissions  and  other  closing  costs of
$68,000.  The sale was an all cash sale and the  Partnership  has no  continuing
obligations  or  involvement  in the  property.  The  Partnership  recognized  a
$138,000 gain on the sale of the property.

Management believes that the Partnership's available cash together with the cash
generated by the  operations  prior to sales of the real estate and net proceeds
upon the sales of the assets will be sufficient to finance the cash requirements
of the Partnership until an orderly liquidation is completed.

RESULTS OF OPERATIONS

Rental income for the six months ended June 30, 1997 was consistent with the six
months  ended June 30,  1996.  Occupancy  rates as of June 30, 1997 and June 30,
1996 were 92% and 89%, respectively,  at the Mountain View Plaza Shopping Center
and 91% as of both  dates at the Auto  Service  Center.  Although  total  rental
income  remained  consistent,  the  rental  income  at the Auto  Service  Center
increased slightly with the addition of a new tenant in late 1996. This increase
is offset by the  decrease  in rental  income at the  Mountain  View  Plaza as a
result of a new  tenant  paying a lower  rental  rate per  square  foot than the
previous tenant that occupied the space in 1996.

Interest  and other income  increased  $12,000 for the six months ended June 30,
1997  compared to the six months  ended June 30,  1996.  $5,000 of the  increase
relates  to  additional  interest  income as a result of  higher  invested  cash
balances in 1997.  The  remaining  increase  is  primarily  due a $15,000  legal
settlement from a former tenant of the Mountain View Shopping Center netted with
a one-time  settlement fee of $10,000 received in 1996 from once potential buyer
of the Bowling Center property which sold in December 1996.

The decrease in operating expenses of $29,000 or 20% is partially due to $17,000
of costs incurred in 1996 when the Partnership obtained appraisals of the rental
properties.  The  remaining  decrease is a result of the  reduction in operating
expenses upon the sale of the Bowling Center property in December 1996.

                                 Page 10 of 13
<PAGE>

Depreciation and amortization  expense decreased $92,000 or 93% in 1997 compared
to 1996 as a result of  ceasing  depreciation  on  January  1,  1997,  of assets
classified as held for sale, and the sale of the Bowling Center property.

At June 30, 1997, due to the current potential sales price, management concluded
that the carrying value of the  Partnership's  investment in Mountain View Plaza
Shopping  Center and adjacent lots were in excess of their  estimated fair value
and a provision for  impairment of the  investment in the amount of $215,000 was
recorded.

General and  administrative  costs  decreased  $20,000 or 15% for the six months
ended  June 30,  1997  compared  to the same  period in 1996.  The  decrease  is
primarily  due to the one-time  payment of $7,000 for  professional  services in
1996 rendered in connection with the valuation of the limited partner  interests
combined  with the  decrease in tax  preparation  fees of $11,000 as a result of
additional services incurred in 1996.

The increase in expenses  associated with  undeveloped land from 1996 to 1997 of
$7,000 or 22% is primarily due to an $11,000  increase in association  dues as a
result of a change  in the  accounting  of such  fees  from  1996 to 1997.  This
increase is  partially  offset by costs  incurred  in 1996 when the  Partnership
obtained appraisals of the undeveloped land.




                                 Page 11 of 13
<PAGE>


Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

                  None.

Item 2.  Changes in Securities

                  Not applicable.

Item 3.  Defaults Upon Senior Securities

                  Not applicable.

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

                  None.

Item 5.  Other Information

                  None.

Item 6.  Exhibits and Reports on Form 8-K

                  (a) Exhibits:

                  #27 - Financial data schedule.

                  (b) Reports on Form 8-K:

                  None.




                                 Page 12 of 13
<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.


                                    RANCON REALTY FUND I,
                                    A CALIFORNIA LIMITED PARTNERSHIP
                                    (Registrant)



Date: August 14, 1997          By:  /s/ Daniel L. Stephenson
                                    -------------------------
                                    Daniel L. Stephenson,
                                    General Partner and Director,
                                    President, Chief Executive Officer
                                    and Chief Financial Officer of
                                    Rancon Financial Corporation,
                                    General Partner of
                                    Rancon Realty Fund I,
                                    a California Limited Partnership


                                 Page 13 of 13