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 September 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)

                                 (650) 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 September 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>

                                                                      September 30,                December 31,
                                                                          1997                        1996
<S>                                                                  <C>                         <C>
Assets
Investments in real estate:
    Rental property held for sale                                    $        1,507              $        2,563
    Land held for sale                                                        1,427                       1,794
                                                                     --------------              --------------
           Net real estate investments                                        2,934                       4,357

Cash and cash equivalents                                                     1,394                         467
Deferred financing costs and other fees,
    net of accumulated amortization of
    $49 and $109 at September 30, 1997
     and December 31, 1996, respectively                                         28                          37
Other assets                                                                     20                          16
                                                                     --------------              --------------

           Total assets                                              $        4,376              $        4,877
                                                                     ==============              ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Note payable                                                     $        1,799              $        1,821
    Accounts payable and other liabilities                                       61                          66
                                                                     --------------              --------------

       Total liabilities                                                      1,860                       1,887
                                                                     --------------              --------------

Partners' Equity (Deficit):
    General partners                                                            (28)                        (19)
    Limited partners, 18,346 limited partnership
      units outstanding at September 30, 1997 and
      December 31, 1996                                                       2,554                       3,009
                                                                     --------------              --------------

           Total partners' equity                                             2,516                       2,990
                                                                     --------------              --------------

              Total liabilities and partners' equity                 $        4,376              $        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                     Nine months ended
                                                               September 30,                         September 30,
                                                         1997               1996                  1997             1996
                                                    ----------         ---------              ---------        ----------
<S>                                                 <C>                <C>                    <C>              <C>
Revenue:
 Rental income                                      $      106         $      110             $     373        $      384
 Interest and other income                                   5                ---                    28                11
 Gain on sale of rental property and land                  116                ---                   116               ---
                                                    ----------         ----------             ---------        ----------

        Total revenue                                      227                110                   517               395
                                                    ----------         ----------             ---------        ----------

Expenses:
 Operating                                                  49                 68                   163               211
 Interest                                                   45                 49                   134               140
 Depreciation (1996 only) and amortization                 ---                 50                     7               149
 Provision for impairment of investments
    in real estate                                         262                 --                   477                --
 General and administrative                                 48                 56                   164               192
 Expenses associated with undeveloped land                  13                 11                    46                38
                                                    ----------         ----------             ---------        ----------

        Total expenses                                     417                234                   991               730
                                                    ----------         ----------             ---------        ----------

Net loss                                           $      (190)       $      (124)           $     (474)      $       (335)
                                                    ==========         ==========             =========        ===========



Net loss per limited partnership unit               $  (10.14)         $    (6.65)            $  (25.35)       $   (17.88)
                                                    =========          ==========             =========        ==========

Weighted average number of limited partnership
 units outstanding during the period used to
 compute net loss per limited partnership unit          18,346             18,346                18,346            18,348
                                                    ==========         ==========             =========        ==========

</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 nine months ended September 30, 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                                                             (9)                (465)                (474)
                                                          -------------         ------------        -------------

Balance at September 30, 1997                             $         (28)        $      2,544        $       2,516
                                                          =============         ============        =============



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

Net loss                                                             (7)                (328)                (335)
                                                          -------------         ------------        -------------

Balance at September 30, 1996                             $         (10)        $      3,468        $       3,458
                                                          =============         ============        =============




</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>

                                                                                       Nine months ended
                                                                                         September 30,
                                                                                 1997                     1996
<S>                                                                              <C>                   <C>
Cash flows from operating activities:
  Net loss                                                                   $     (474)               $     (335)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Depreciation and amortization                                                     7                       149
    Amortization of loan fees, included in
      interest expense                                                                3                         3
    Gain on sale of property                                                       (116)                      ---
    Provision for impairment of investments in
      real estate                                                                   477                       ---
Changes in certain assets and liabilities:
    Deferred financing costs and other fees                                          (8)                       (8)
    Other assets                                                                     (4)                       17
    Accounts payable and other liabilities                                           (5)                       41
                                                                             -----------               ----------

       Net cash used for operating activities                                      (120)                     (133)
                                                                             ----------                ----------

Cash flows from investing activities:
    Additions to real estate                                                        (24)                      (22)
    Proceeds from sale of rental property and land                                1,093                       ---
                                                                             ----------                ----------

       Net cash provided by (used for) investing activities                       1,069                       (22)
                                                                             ----------                ----------

Cash flows from financing activities:
    Note payable principal payments                                                 (22)                      (18)
    Proceeds from note payable                                                      ---                        90
                                                                             ----------                ----------

       Net cash provided by (used for) financing activities                         (22)                       72
                                                                             ----------                ----------

Net increase (decrease) in cash and cash equivalents                                927                       (83)

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

Cash and cash equivalents at end of period                                   $    1,394                $      ---
                                                                             ==========                ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                     $      138                $      134
                                                                             ==========                ==========
</TABLE>

                 See accompanying notes to financial statements.




                                  Page 5 of 13
<PAGE>


                              RANCON REALTY FUND I,

                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 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 September 30, 1997 and December 31,
1996,  and the related  statements of  operations  for the three and nine months
ended September 30, 1997 and 1996, and changes in partners' equity (deficit) and
cash flows for the nine months ended September 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 rental
property  and land held for sale on the  Partnership's  September  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
September  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  and 4% for  land;  (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
or the Partnership.


                                  Page 6 of 13
<PAGE>


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 September  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) and the Rancon Commerce Center lots
(six undeveloped lots totaling approximately 14.45 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.  At September 30,
1997, the sale is pending until the potential buyer obtains lender's approval to
assume  the  outstanding  note  on the  property.  The  sale is  expected  to be
completed by November 30, 1997. The  Partnership  intends to pay-off the related
debt on the Mountain View Plaza Shopping  Center property with the proceeds from
the sale.


                                  Page 7 of 13
<PAGE>


At June 30, 1997, due to the current potential sales price, management concluded
that the carrying value of the Partnership's  investments in Mountain View Plaza
Shopping  Center and adjacent lot 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 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  $1,174,000  less  commissions  and  other  closing  costs of
$81,000.  The sale was an all cash sale and the  Partnership  has no  continuing
obligations  or  involvement  in the  property.  The  Partnership  recognized  a
$116,000 gain on the sale of the property.

In the third  quarter of 1997,  the  Partnership  entered  into  three  separate
Purchase and Sale Agreements with unaffiliated third parties for the sale of the
six Rancon  Commerce  Center lots for a combined  sales  price of  approximately
$980,000. The sales are expected to be completed by the end of 1997.

At September 30, 1997,  due to the current  potential  sales price of the Rancon
Commerce  Center  lots,  management  concluded  that the  carrying  value of the
Partnership's  investments  were in excess of their  estimated fair value and as
such a provision for impairment of the investments in the amount of $262,000 was
recorded.






                                  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
September  30, 1997 and its  results of  operations  for the nine  months  ended
September 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 September  30, 1997,  the  Partnership  had cash and cash  equivalents  of
$1,394,000.  The remainder of the Partnership's  assets consist primarily of its
investments  in real  estate,  all held for sale,  which  totaled  approximately
$2,934,000 at September 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  September  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
September  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 September  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) and the Rancon Commerce Center lots
(six undeveloped lots totaling approximately 14.45 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.  At September 30,
1997, the sale is pending until the potential buyer obtains lender's approval to
assume  the  outstanding  note  on the  property.  The  sale is  expected  to be
completed by November 30, 1997. The  Partnership  intends to pay-off the related
debt on the Mountain View Plaza Shopping  Center property with the proceeds from
the sale.

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  $1,174,000  less  commissions  and  other  closing  costs of
$81,000.  The sale was an all cash sale and the  Partnership  has no  continuing
obligations  or  involvement  in the  property.  The  Partnership  recognized  a
$116,000 gain on the sale of the property.

In the third  quarter of 1997,  the  Partnership  entered  into  three  separate
Purchase and Sale Agreements with unaffiliated third parties for the sale of the
six Rancon  Commerce  Center lots for a combined  sales  price of  approximately
$980,000. The sales are expected to be completed by the end of 1997.

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 nine months ended  September 30, 1997  decreased  slightly
(approximately  3%)  compared  to the nine  months  ended  September  30,  1996.
Occupancy  rates as of September  30, 1997 and  September  30, 1996 were 92% and
89%, respectively, at the Mountain View Plaza Shopping Center. 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  Shopping  Center 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 as well as the sale of the Auto Service Center on August 1, 1997.

The  $17,000  increase in interest  and other  income for the nine months  ended
September  30,  1997  compared to the nine months  ended  September  30, 1996 is
primarily  due to a $10,000  increase in  interest  income as a result of higher
invested  cash  balances in 1997. In 1997,  the  Partnership  received a $15,000
legal  settlement  from a former  tenant of the  Mountain  View  Plaza  Shopping
Center,  and in 1996 the  Partnership  received  a  one-time  settlement  fee of
$10,000 from once potential  buyer of the Bowling Center  property which sold in
December 1996.




                                 Page 10 of 13
<PAGE>


As  discussed in Note 3 of the Notes to  Financial  Statements,  the sale of the
Auto  Service  Center  resulted  in a gain of  $116,000  and is  included on the
Partnership's 1997 statement of operations.

The decrease in operating expenses of $48,000 or 23% 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 and the
Auto Service Center in August 1997.

Interest  expense  continues  to decline  due to the  decreasing  balance of the
Partnership's outstanding debt on the Mountain View Plaza Shopping Center.

Depreciation and amortization expense decreased $142,000 or 95% 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.

During 1997,  due to pending  sales  contracts,  management  concluded  that the
carrying value of the Partnership's  investments in Mountain View Plaza Shopping
Center and the  adjacent  lot and the six Rancon  Commerce  Center  lots were in
excess of their  estimated  fair value and a  provision  for  impairment  of the
investment in the amount of $477,000 was recorded.

General and  administrative  costs decreased  $28,000 or 15% for the nine months
ended  September 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 $14,000 as a result of
additional services incurred in 1996. In addition, administrative overhead costs
decreased  $6,000  in 1997  upon  the sale of the  Bowling  Center  property  in
December 1996.

The increase in expenses  associated with  undeveloped land from 1996 to 1997 of
$8,000 or 21% 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:

                  On  August  18,  1997,  the  Partnership   filed  a  Form  8-K
                  announcing  the  August 1, 1997  sale of the  Rancon  Commerce
                  Center Auto Care Center and  adjacent  lot to an  unaffiliated
                  third party for a purchase price of $1,174,000.




                                 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: November 13, 1997    By:          /S/ Daniel L. Stephenson
                                        -------------------------
                                        Daniel L. Stephenson,
                                        General Partner and Director,
                                        President, Chief Executive Officer
                                        and Chief Financial Officer of
                                        Rancon Financial CorporationS
                                        General Partner of
                                        Rancon Realty Fund I,
                                        a California Limited Partnership

                                 Page 13 of 13