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 March 31, 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 March 31, 1997: 18,346



                                  Page 1 of 11
<PAGE>



Part I.           FINANCIAL INFORMATION


Item 1.           Financial Statements.
<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

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

                                                                        March 31,                December 31,
                                                                           1997                      1996
                                                                     -------------               -------------
<S>                                                                  <C>                         <C>
Assets
Investments in real estate:
    Rental property held for sale                                    $        2,565              $        2,563
    Land held for sale                                                        1,794                       1,794
                                                                     --------------              --------------
           Net real estate investments                                        4,359                       4,357

Cash                                                                            418                         467
Deferred financing costs and other fees,
    net of accumulated amortization of
    $111 and $109 at March 31, 1997
    and December 31, 1996, respectively                                          35                          37
Other assets                                                                     12                          16
                                                                     --------------              --------------

           Total assets                                              $        4,824              $        4,877
                                                                     ==============              ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Note payable                                                     $        1,813              $        1,821
    Accounts payable and other liabilities                                       65                          66
                                                                     --------------              --------------
       Total liabilities                                                      1,878                       1,887
                                                                     --------------              --------------

Partners' Equity (Deficit):
    General partners                                                            (20)                        (19)
    Limited partners, 18,346 limited partnership
      units outstanding at March 31, 1997 and
      December 31, 1996                                                       2,966                       3,009
                                                                     --------------              --------------
           Total partners' equity                                             2,946                       2,990
                                                                     --------------              --------------

              Total liabilities and partners' equity                 $        4,824              $        4,877
                                                                     ==============              ==============
</TABLE>

                 See accompanying notes to financial statements.




                                  Page 2 of 11
<PAGE>


<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Operations
          (in thousands, except units outstanding and per unit amounts)
                                   (Unaudited)
<CAPTION>

                                                                                        Three months ended
                                                                                             March 31,
                                                                                  1997                      1996
<S>                                                                             <C>                       <C>
Revenue:
    Rental income                                                               $    130                  $    128
    Interest and other income                                                          1                        10
                                                                                --------                  --------
        Total revenue                                                                131                       138
                                                                                --------                  --------

Expenses:
    Operating                                                                         59                        77
    Interest                                                                          44                        45
    Depreciation and amortization                                                      1                        49
    General and administrative                                                        59                        57
    Expenses associated with undeveloped land                                         12                        16
                                                                                --------                  --------
        Total expenses                                                               175                       244
                                                                                --------                  --------

Net loss                                                                        $    (44)                 $   (106)
                                                                                ========                  ========

Net loss per limited partnership unit                                           $  (2.34)                 $  (5.66)
                                                                                ========                  ========

Weighted average number of limited partnership
   units outstanding during the period used to
   compute net loss per limited partnership unit                                  18,346                    18,359
                                                                                ========                  ========



</TABLE>








                 See accompanying notes to financial statements.




                                  Page 3 of 11
<PAGE>



                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements of Partners' Equity (Deficit)
               For the three months ended March 31, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                             General              Limited
                                                             Partners            Partners               Total


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

Net loss                                                             (1)                 (43)                 (44)
                                                          -------------         ------------        -------------
Balance at March 31, 1997                                 $         (20)        $      2,966        $       2,946
                                                          =============         ============        =============


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

Net loss                                                             (2)                (104)                (106)
                                                          -------------         ------------        -------------
Balance at March 31, 1996                                 $          (5)        $      3,692        $       3,687
                                                          =============         ============        =============




</TABLE>










                 See accompanying notes to financial statements.



                                  Page 4 of 11
<PAGE>



                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                     Statements of Cash Flows (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                      Three months ended
                                                                                           March 31,
                                                                                 1997                     1996
<S>                                                                         <C>                     <C>
Cash flows from operating activities:
  Net loss                                                                  $       (44)            $        (106)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Depreciation and amortization                                                     1                        49
    Amortization of loan fees, included in
     interest expense                                                                 1                         1
Changes in certain assets and liabilities:
    Other assets                                                                      4                        15
    Accounts payable and other liabilities                                           (1)                       17
                                                                             ----------                ----------
       Net cash used for operating activities                                       (39)                      (24)
                                                                             ----------                ----------

Cash flows from investing activities:
    Additions to real estate                                                         (2)                      (13)
                                                                             ----------                ----------   
       Net cash used for investing activities                                        (2)                      (13)
                                                                             ----------                ----------
        
Cash flows from financing activities:
    Note payable principal payments                                                  (8)                       (6)
                                                                             ----------                ----------   
       Net cash used for  financing activities                                       (8)                       (6)
                                                                             ----------                ----------

Net decrease in cash                                                                (49)                      (43)

Cash at beginning of period                                                         467                        83
                                                                             ----------                ----------
Cash at end of period                                                        $      418                $       40
                                                                             ==========                ==========
Supplemental disclosure of cash flow information:
  Cash paid for interest                                                     $       49                $       45
                                                                             ==========                ==========

</TABLE>




                 See accompanying notes to financial statements.




                                  Page 5 of 11
<PAGE>


                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                 March 31, 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  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 March
31, 1997 and  December  31,  1996,  and the related  statements  of  operations,
changes in partners'  equity and cash flows for the three months ended March 31,
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 March 31, 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 March 31, 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 Inland Realty
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,  currently $151,000 per
year,  which is fixed for five years subject to reduction in the year  following
the sale of  assets;  (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 11
<PAGE>

                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                                 March 31, 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.






                                  Page 7 of 11
<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
March 31, 1997 and its results of  operations  for the three  months ended March
31,  1997 and 1996.  This  information  should be read in  conjunction  with the
Partnership's audited December 31, 1996 Consolidated 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 March 31, 1997, the Partnership had cash of $418,000. The remainder of the
Partnership's  assets consist  primarily of its investments in real estate,  all
held for sale, which totaled approximately $4,359,000 at March 31, 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  March 31, 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 March
31, 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 sources 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 the market
has  flattened and is no longer  falling in terms of sales prices.  While prices
have not increased  significantly,  the Southern  California  real estate market
appears to be improving.

The  Partnership  currently owns 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).

                                  Page 8 of 11
<PAGE>

The Rancon  Commerce  Center lots have  entitlements  in place for commercial or
industrial use within the Rancon  Commerce  Center.  In November 1996, a new 100
year flood plan map was  completed  and released as part of the  Murrieta  Creek
Flood Control  Project.  The Rancon Commerce Center lots,  which are adjacent to
the creek,  are shown to be outside the flood plan. The proposed  channel design
that benefits the Partnership's lots must still be approved and this may take as
long as three to four years.

On February 3, 1997,  the  Partnership  entered  into a letter of intent 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 letter of
intent  expired;  however,  the  Partnership  remains in  negotiations  with the
potential buyer which may result in a reduced  purchase  price.  The Partnership
would  pay-off the related debt on the Mountain View  Shopping  Center  property
with the proceeds from the sale.

The  Partnership  has a single note payable in the amount of $1,813,000 at March
31,  1997  secured by Mountain  View Plaza  Shopping  Center.  The note does not
mature until 2002.

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 three months ended March 31, 1997 was consistent  with the
three  months  ended March 31,  1996.  Occupancy  rates as of March 31, 1997 and
March 31,  1996 were 90% and 91%,  respectively,  for the  Mountain  View  Plaza
Shopping  Center and 91% and 78%,  respectively,  for 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  decreased  $9,000  for the first  quarter  of 1997
compared to the first quarter of 1996,  primarily  due to a one-time  settlement
fee of $10,000 received in 1996 from once potential buyers of the Bowling Center
property which sold in December 1996.

The decrease in operating  expenses of $18,000 or 23% is primarily  due to costs
incurred  in  1996  when  the  Partnership  obtained  appraisals  of the  rental
properties.

Depreciation and amortization  expense decreased $48,000 or 98% in 1997 compared
to 1996 as a result of  ceasing  depreciation  on  January  1,  1997,  of assets
classified as held for sale.

The decrease in expenses  associated with  undeveloped  land of $4,000 or 25% is
primarily due to costs incurred in 1996 when the Partnership obtained appraisals
of the undeveloped land.




                                  Page 9 of 11
<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 10 of 11
<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: May 15, 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 Partner


                                 Page 11 of 11