FORM 10-K/A

                      AMENDMENT TO FORM 10-K ANNUAL REPORT

                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                 AMENDMENT NO. 1

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

                  For the fiscal year ended: December 31, 2001

                                       OR

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

            For the transition period ended:_________________________


                         Commission File Number: 1-7211

                              IONICS, INCORPORATED
             (Exact name of registrant as specified in its charter)



         Massachusetts                              04-2068530
 (State or other jurisdiction             (IRS Employer Identification Number)
 of incorporation of organization)

         65 Grove Street
     Watertown, Massachusetts                        02472
 (Address of principal executive offices)          (Zip Code)

       Registrant's telephone number, including area code: (617) 926-2500

         Former name, former address and former fiscal year, if changed
                            since last report: None

           Securities registered pursuant to Section 12(b) of the Act:
                 Title of each class: Common Stock, $1 par value

       Name of each exchange on which registered: New York Stock Exchange

        Securities registered pursuant to Section 12(g) of the Act: None



                                      -1-
<PAGE>



The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report on Form 10-K for the
fiscal year ended December 31, 2001 as set forth in the pages attached hereto:

1. Item 14(a) 3. of Part IV of said report on Form 10-K is amended to list Form
11-K, Annual Report of the Ionics Section 401(k) Stock Savings Plan for the year
ended December 31, 2001, as Exhibit 13 thereto, and the Consent of Belanger &
Company, P.C., independent public accountants, as Exhibit 23.2 thereto. The
Annual Report of the Ionics Section 401(k) Stock Savings Plan on Form 11-K for
the year ended December 31, 2001 is hereby filed pursuant to Rule 15d-21 and
General Instruction F to Form 10-K as an Exhibit to said Annual Report on Form
10-K.

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                         IONICS, INCORPORATED
                                         (Registrant)



Date:  June 26, 2002                     By     /s/Stephen Korn
                                              --------------------------
                                                Stephen Korn
                                                Vice President and
                                                General Counsel



                                      -2-
<PAGE>



                                     PART IV

ITEM 14.      EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)  1.       Financial Statements

              See Index to Financial Statements and Financial Statement Schedule
              on page 30.

     2.       Financial Statement Schedule

              See Index to Financial Statements and Financial Statement Schedule
              on page 30. All other Financial Statement Schedules have been
              omitted because they are either not applicable or the required
              information is included in the Consolidated Financial Statements
              or notes thereto.

     3.       Exhibits


<TABLE>
<CAPTION>

         Exhibit No.        Description
         -----------        -----------
         <S>                <C>         <C>                                            <C>

         3.0                Articles of Organization and By-Laws

                            3.1         Restated Articles of Organization filed         *
                                        April 16, 1986 (filed as Exhibit 3.1
                                        to the Company's Annual Report on Form
                                        10-K for the year ended December 31,
                                        1997).

                            3.1(a)      Amendment to Restated Articles of               *
                                        Organization filed June 19, 1987
                                        (filed as Exhibit 3.1(a) to the
                                        Company's Annual Report on Form 10-K for
                                        the year ended December 31, 1997).

                            3.1(b)      Amendment to Restated Articles of               *
                                        Organization filed May 13, 1988
                                        (filed as Exhibit 3.1(b) to Registration
                                        Statement No. 33-38290 on
                                        Form S-2 effective January 24, 1991).

                            3.1(c)      Amendment to Restated Articles of               *
                                        Organization filed May 8, 1992
                                        (filed as Exhibit 3.1 to the Company's
                                        Quarterly Report on Form 10-Q for the
                                        quarterly period ending June 30, 1996.

                            3.1(d)      Amendment to Restated Articles of               *
                                        Organization filed May 8, 1998
                                        (filed as Exhibit 3.1 to the Company's
                                        Quarterly Report on Form 10-Q for the
                                        quarterly period ending March 31, 1998).

                            3.2         By-Laws, as amended through May 2, 2000         *
                                        (filed as Exhibit 3.2 to the Company's
                                        Quarterly Report on Form 10-Q for the
                                        quarterly period ended March 31, 2000).

         4.0                Instruments defining the rights of security holders,
                            including indentures

                            4.1         Renewed Rights Agreement, dated as of           *
                                        August 19, 1997 between  Registrant and
                                        BankBoston N.A. (filed as Exhibit 1 to
                                        the Company's Current Report on Form 8-K
                                        dated August 27, 1997).

                            4.2         Form of Common Stock Certificate (filed         *
                                        as Exhibit 4.2 to the  Company's Annual
                                        Report on Form 10-K for the year ended
                                        December 31, 1997).

         10.0               Material Contracts

                            10.1        1979 Stock Option Plan, as amended              *
                                        through February 22, 1996  (filed as
                                        Exhibit 10.1 to the Company's Annual
                                        Report on Form 10-K for the year ended
                                        December 31, 1995).

                            10.2        1986 Stock Option Plan for Non-Employee
                                        Directors, as amended through February
                                        26, 2002.

                            10.3        Second Amendment and Waiver to Third
                                        Amended and Restated Revolving Credit
                                        Agreement dated as of March 28, 2002
                                        between the Company and Fleet National
                                        Bank.

                            10.3(1)     First Amendment and Waiver to Third
                                        Amended and Restated Revolving Credit
                                        Agreement dated as of December 21, 2001
                                        by and among the Company, Fleet National
                                        Bank (as agent and lender), Bank
                                        America, N.A., The Chase Manhattan Bank
                                        and Mellon Bank, N.A.

                            10.4        Third Amended and Restated Credit               *
                                        Agreement dated as of June 29, 2001,
                                        among the Company, Fleet National Bank
                                        (as agent and lender), Bank of America,
                                        N.A., The Chase Manhattan Bank and
                                        Mellon Bank, N.A. (filed as Exhibit 4.1
                                        to the Company's Quarterly Report on
                                        Form 10-Q for the quarterly period ended
                                        June 30, 2001).

                            10.5        Global Amendment and Affirmation                *
                                        Agreement dated as of June 29,  2001,
                                        among the Company, Fleet National Bank
                                        and certain subsidiaries of the Company
                                        (filed as Exhibit 4.2 to the Company's
                                        Quarterly Report on Form 10-Q for the
                                        quarterly period ended June 30, 2001).

                            10.6        Second Amended and Restated Credit              *
                                        Agreement dated as of July 28, 2000,
                                        among the Company, Fleet National Bank
                                        and Fleet National Bank as agent (filed
                                        as Exhibit 10.1 to the Company's
                                        Quarterly Report on Form 10-Q for the
                                        quarterly period ended June 30, 2000).

                            10.6(1)     Amendment Agreement No. 1 to Second             *
                                        Amended and Restated Credit  Agreement
                                        among the Company, Fleet National Bank
                                        and Fleet National Bank as Agent dated
                                        March 1, 2001 (filed as Exhibit 10.3(1)
                                        to the Company's Annual Report on Form
                                        10-K for the year ended December 31,
                                        2000).

                            10.6(2)     Amendment Agreement No. 2 to Second             *
                                        Amended and Restated Credit  Agreement
                                        among the Company, Fleet National Bank
                                        and Fleet National Bank as Agent dated
                                        May 14, 2001 (filed as Exhibit 10.2 to
                                        the Company's Quarterly Report on Form
                                        10-Q for the quarterly period ended
                                        March 31, 2001).

                            10.7        1994 Restricted Stock Plan (filed as            *
                                        Exhibit 10.12 to the Company's Annual
                                        Report on Form 10-K dated March 30,
                                        1995).

                            10.8        1997 Stock Incentive Plan (filed as             *
                                        Exhibit 10.12 to the Company's
                                        Annual Report on Form 10-K dated
                                        December 31, 1996).

                            10.9        Ionics, Incorporated Supplemental               *
                                        Executive Retirement Plan
                                        effective as of January 1, 1996 (filed
                                        as Exhibit 10.9 to the Company's Annual
                                        Report on Form 10-K dated December 31,
                                        1997).

                            10.10       Form of Employee Retention Agreement            *
                                        dated February 24, 1998 between the
                                        Company and certain officers of the
                                        Company and its subsidiaries (filed as
                                        Exhibit 10.10 to the Company's Annual
                                        Report on Form 10-K dated December 31,
                                        1997).

                            10.11       Shareholders' Agreement dated April 3,          *
                                        2001 between the Company and Mohammed
                                        Abdulmohsin Al-Kharafi & Sons (filed as
                                        Exhibit 10.1 to the Company's Quarterly
                                        Report on Form 10-Q for the quarterly
                                        period ended March 31, 2001).

                            10.12       1998 Non-Employee Directors Fee Plan            *
                                        (filed as Exhibit 10.1 to the
                                        Company's Quarterly Report on Form 10-Q
                                        for the quarterly period ending
                                        September 30, 1998).

                            10.13       Shareholders' Agreement dated as of May         *
                                        12, 2000, by and among the  Company,
                                        Hafeez Karamath Engineering Services
                                        Limited, and Desalination Company of
                                        Trinidad and Tobago Ltd., as amended on
                                        June 16, 2000 (filed as Exhibit 10.2 to
                                        the Company's Quarterly Report on Form
                                        10-Q for the quarterly period ended June
                                        30, 2000).

                            10.14       Loan Agreement dated as of October 25,          *
                                        2000 between the Company and Hafeez
                                        Karamath Engineering Services Limited
                                        (filed as Exhibit 10.13 to the Company's
                                        Annual Report on Form 10-K for the year
                                        ended December 31, 2000).

         13.0               Annual Report of the Ionics Section 401(k) Stock
                            Savings Plan on Form 11-K for the year ended
                            December 31, 2001.

         21.0               Subsidiaries of the Registrant.


         23.0               Consents

                            23.1          Consent of PricewaterhouseCoopers LLP

                            23.2          Consent of Belanger & Company, P.C.

         24.0               Power of Attorney.
         -------------------------------
         *Incorporated herein by reference

(b)        Reports on Form 8-K

           A report on Form 8-K was filed by the Company on December 3, 2001,
           reporting under Item 5 the issuance of a press release announcing the
           Company's agreement to sell its bottled water business.

</TABLE>



                                      -3-
<PAGE>



                 Exhibit No. 13 to Annual Report on Form 10-K of
            Ionics, Incorporated for the year ended December 31, 2001



                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 11-K




               [X] Annual report pursuant to Section 15(d) of the
                        Securities Exchange Act of 1934

                   For the fiscal year ended December 31, 2001

                                       OR

             [ ] Transition report pursuant to Section 15(d) of the
                        Securities Exchange Act of 1934

             For the transition period from __________ to __________

                         Commission File Number: 1-7211


A.       Full title of the plan and the address of the plan, if different from
         that of the issuer named below:

                    Ionics Section 401(k) Stock Savings Plan

B.       Name of issuer of the securities held pursuant to the plan and the
         address of its principal executive office:


                              IONICS, INCORPORATED
                                 65 Grove Street
                            Watertown, MA 02472-2882



                                      -4-
<PAGE>




                    IONICS SECTION 401(k) STOCK SAVINGS PLAN

            INDEX OF FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES

                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000



                                                                        Page
                                                                        ----

Independent Auditor's Report                                              2

Financial Statements:

     Statements of Net Assets Available for Benefits
     at December 31, 2001 and 2000                                        3

     Statements of Changes in Net Assets Available for
     Benefits for the year ended December 31, 2001                        4

Notes to Financial Statements                                             5

Supplemental Schedules:

     Schedule of Assets Held for Investment Purposes at
     December 31, 2001                                                    9

     Schedule of Nonexempt Transactions for the year ended
     December 31, 2001                                                   10





                                      -5-
<PAGE>



                          INDEPENDENT AUDITOR'S REPORT


Administrators
Ionics Section 401(k) Stock Savings Plan
Watertown, Massachusetts

We have audited the accompanying statements of net assets available for benefits
of the Ionics Section 401(k) Stock Savings Plan (the Plan) as of December 31,
2001 and 2000, and the related statement of changes in net assets available for
benefits for the year ended December 31, 2001. These financial statements are
the responsibility of the plan administrator. Our responsibility is to express
an opinion on these financial statements and schedules based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2001 and 2000 and the changes in its net assets available for
benefits for the year ended December 31, 2001, in conformity with generally
accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and nonexempt transactions are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental schedules are the
responsibility of the Plan's management. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.





                                /s/Belanger & Company, P.C.
                                ---------------------------
                                BELANGER & COMPANY, P.C.
                                CERTIFIED PUBLIC ACCOUNTANTS

Chelmsford, Massachusetts
June 5, 2002



                                      -6-
<PAGE>

                    IONICS SECTION 401(k) STOCK SAVINGS PLAN
                 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS






                                                     December 31,
                                       ----------------------------------------
                                               2001                  2000
                                       ------------------    ------------------


Assets:
     Investments (see Note C)               $ 27,121,799          $ 25,348,894
                                       ------------------    ------------------

Receivables:
     Employer contribution                        49,014                54,346
     Participant contributions                   248,934               264,942
                                       ------------------    ------------------

     Total receivables                           297,948               319,288
                                       ------------------    ------------------

     Total assets                             27,419,747            25,668,182

Liabilities                                            0                     0
                                       ------------------    ------------------

Net assets available for benefits           $ 27,419,747          $ 25,668,182
                                       ==================    ==================



See accompanying notes to the financial statements.


                                      -7-
<PAGE>
                    IONICS SECTION 401(k) STOCK SAVINGS PLAN
            STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS




                                                                Year Ended
                                                            December 31, 2001
                                                            -----------------

Additions:
  Additions to net assets attributed to:
  Investment income:
      Net depreciation in fair value
      of investments (see Note C)                                 $ (394,510)
      Interest                                                       134,591
      Dividends                                                      167,882
                                                             ----------------
                                                                     (92,037)
                                                             ----------------
  Contributions:
      Participant                                                  3,253,629
      Employer                                                       709,729
                                                             ----------------
                                                                   3,963,358
                                                             ----------------
       Total additions                                             3,871,321

Deductions:
     Withdrawals by and distributions to participants              2,119,756
                                                             ----------------
         Net increase                                              1,751,565

     Net assets available for benefits:
         Beginning of year                                        25,668,182
                                                             ----------------
         End of year                                             $27,419,747
                                                             ================


See accompanying notes to the financial statements.



                                      -8-
<PAGE>





                          NOTES TO FINANCIAL STATEMENTS



A.   Description of Plan

     The following description of the Ionics, Incorporated and domestic
     subsidiaries ("Company") 401(k) Plan (Plan) provides only general
     information. Participants should refer to the Plan agreement for a more
     complete description of the Plan's provisions.

1.   General. The Plan is a defined contribution plan covering all permanent
     employees of the Company working at least 20 hours per week who have
     completed one year of service (effective March 1, 2000, the Plan was
     amended to permit new employees to become eligible to participate effective
     as of the first day of the month coincident with or next following the
     employee's date of hire).

2.   Contributions. Each year, participants may contribute up to 12 percent of
     pretax annual compensation, as defined in the Plan. Participants may also
     contribute amounts representing distributions from other qualified defined
     benefit or defined contribution plans. Participants direct the investment
     of their contributions into various investment options offered by the Plan.
     The Plan currently offers Company stock and seven mutual funds as
     investment options for participants. The Company contributes 50% of the
     first 6 percent of base compensation that a participant contributes to the
     Company stock portion of the Plan. The matching Company contribution is
     invested directly in Ionics, Incorporated common stock. Contributions are
     subject to certain limitations.

3.   Participant  Accounts.  Each  participant's  account is  credited  with the
     participant's   contribution   and   allocations   of  (a)  the   Company's
     contribution  and  (b)  Plan  earnings.  Allocations  are  based  on  total
     investment  earnings  and  average  participant   investment  balances,  as
     defined. The benefit to which a participant is entitled is the benefit that
     can be provided from the participant's vested account.

4.   Vesting.  Participants are vested  immediately in their  contributions plus
     actual earnings thereon.  Vesting in the Company's  contribution portion of
     their accounts is based on years of continuous service ranging from 33 1/3%
     after two years to 100% after four years.

5.   Participant Loans. Participants may borrow from their fund accounts a
     minimum of $1,000, up to a maximum of $50,000 or 50 percent of their
     account balance, whichever is less. The loans are secured by the balance in
     the participant's account and bear interest at rates that are commensurate
     with local prevailing rates as determined by the Plan administrator.

6.   Payment of Benefits. On termination of service due to death, disability, or
     retirement, a participant may elect to receive either a lump-sum amount
     equal to the value of the participant's vested interest in his or her
     account, or annual installments over the life expectancy of the Participant
     (or the joint life expectancy of the Participant and spouse or
     beneficiary).

7.   Plan Expenses. The Plan provides that the Company shall pay all expenses of
     the Plan and its administration.



                                      -9-
<PAGE>




B.   Summary of Accounting Policies

     Use of Estimates

     The preparation of financial statements in conformity with generally
     accepted accounting principles requires management to make estimates and
     assumptions that affect the reported amounts of assets and liabilities and
     changes therein, and disclosure of contingent assets and liabilities.
     Actual results could differ from those estimates.

     Investment Valuation and Income Recognition

     Investment of the Plan in Ionics, Incorporated Common Stock is stated at
     the last sales price on December 31, 2001 as reported on the New York Stock
     Exchange. Shares of mutual funds are valued at the Net Asset Value of
     shares held by the Plan at year-end.

     Purchases and sales of securities are recorded on a trade-date basis.
     Dividends are recorded on the ex-dividend date.

C.   Investments

     The following presents investments that represent 5 percent or more of the
     Plan's net assets.

                                                          December 31,
                                             -----------------------------------
                                                   2001               2000
                                             -----------------  ----------------

Ionics, Incorporated common stock, 469,796
and 436,598 shares, respectively                 $14,107,974*       $12,388,468*

Puritan Fund, 125,870 and 114,594 shares,
respectively                                       2,224,126          2,157,798

Contrafund Fund, 101,392 and 99,513 shares,
respectively                                       4,336,547          4,893,052

Janus Worldwide Fund, 31,458 and 26,252
shares, respectively                               1,379,131          1,492,678


BT Pyramid GIC Fund                                1,396,208            N/A

*Nonparticipant-directed

During 2001, the Plan's  investments  (including gains and losses on investments
bought  and  sold,  as well as held  during  the year)  depreciated  in value by
$394,510 as follows:

Mutual funds                                    $ (1,255,521)
Ionics, Incorporated common stock                    861,011
                                               --------------
                                                  $ (394,510)
                                               ==============





                                      -10-
<PAGE>




D.   Nonparticipant-Directed Investments

     Information about the net assets and the significant components of the
     changes in net assets relating to the nonparticipant-directed investments
     is as follows:

                                                   December 31,
                                     -------------------------------------
                                            2001                2000
                                     -----------------   -----------------

     Common stock                        $ 14,107,974        $ 12,388,468
                                     =================   =================

                                                            Year Ended
                                                             12/31/01
                                                         -----------------

     Contributions                                            $ 1,583,607
     Net appreciation                                             861,011
     Benefits paid to participants                               (725,112)
                                                         -----------------
                                                              $ 1,719,506
                                                         =================



E.   Plan Termination

     Although it has not expressed any intent to do so, the Company has the
     right under the Plan to discontinue its contributions at any time and to
     terminate the Plan subject to the provisions of ERISA. In the event of Plan
     termination, participants will become 100 percent vested in their accounts.



                                      -11-
<PAGE>




F.   Reconciliation of Financial Statements to Form 5500

     The following is a reconciliation of net assets available for benefits per
     the financial statements at December 31, 2001 and 2000 to Form 5500:

                                                   2001               2000
                                             -----------------   ---------------
Net assets available for benefits per the
financial statements                              $27,419,747       $25,668,182

Amounts allocated to withdrawing
participants                                         (165,207)         (301,050)
                                             -----------------   ---------------

Net assets available for benefits per the
Form 5500                                         $27,254,540       $25,367,132
                                             =================   ===============


The  following is a  reconciliation  of benefits  paid to  participants  per the
financial statements for the year ended December 31, 2001 to Form 5500:

Distributions to participants per the
financial statements:                              $2,119,756

Add:  Amounts allocated to withdrawing
participants at December 31, 2001                     165,207

Less: Amounts allocated to withdrawing
participants at December 31, 2000                    (301,050)
                                               --------------

Benefits paid to participants per Form 5500        $1,983,913
                                               ==============

     Amounts allocated to withdrawing participants are recorded on the Form 5500
     for benefit claims that have been processed and approved for payment prior
     to December 31st but not yet paid as of that date.

G.   Tax Status

     The Internal Revenue Service has determined and informed the Company by a
     letter dated September 12, 1995, that the Plan and related trust are
     designed in accordance with applicable sections of the Internal Revenue
     Code (IRC). Although the Plan has been amended since receiving the
     determination letter, it is believed that the Plan is designed and is
     currently being operated in compliance with the applicable requirements of
     the IRC.


                                      -12-
<PAGE>



     Attachment to Form 5500
     Schedule H, Line 4 I
     EIN: 04-2068530
     Plan Number 003

                                   Schedule I

                    IONICS SECTION 401(k) STOCK SAVINGS PLAN
                 SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
                                DECEMBER 31, 2001



                               Face Amount                         Current
Description of Investment     Shares or Rate       Cost             Value
                              --------------   ------------     -------------

Ionics, Incorporated
Common Stock                  469,796        $ 12,941,167       $ 14,107,974

Fidelity Investments:
Puritan Fund                  125,870           2,260,636          2,224,126
Contrafund                    101,392           4,851,452          4,336,547

MainStay Institutional:
Indexed Bond                   62,640             676,615            657,723
Asset Manager Fund            102,998           1,568,698          1,269,964
Indexed Equity Fund            23,788             758,349            626,568
Money Market                                      207,982            207,982

Janus Worldwide Fund           31,458           1,764,702          1,379,131

BT Pyramid GIC Fund                             1,396,208          1,396,208

Participant Loans
(Rate of interest 6.25% to 11.00%)                      0            915,576
                                             -------------      -------------

Total funds invested                         $ 26,425,809       $ 27,121,799
                                             =============      =============


     See accompanying notes to the financial statements.



                                      -13-
<PAGE>



Attachment to Form 5500
Schedule H, line 4 d
EIN: 04-2068530
Plan Number 003

<TABLE>
<CAPTION>

                                   Schedule II

                    IONICS SECTION 401(k) STOCK SAVINGS PLAN
                       SCHEDULE OF NONEXEMPT TRANSACTIONS
                      FOR THE YEAR ENDED DECEMBER 31, 2001

<S>                  <C>             <C>                <C>          <C>          <C>          <C>               <C>

       (a)               (b)              (c)             (d)          (e)          (h)             (i)             (j)
   Identify of       Relationship    Description of     Purchase     Selling      Cost of      Current Value      Net Gain
  Party Involved       to Plan        Transaction        Price        Price        Asset          of Asset         (Loss)
----------------------------------  -----------------  -----------  -----------  -----------  -----------------  -----------

Ionics, Inc.        Employer        Late payment         $8,599       $8,599       $8,599          $8,599            $0
                                    of contributions
                                    to the Plan

Note:  The total amount due for the nonexempt transaction was paid on June 4, 2001

See accompanying notes to the financial statements.
</TABLE>



                                      -14-
<PAGE>




                                   SIGNATURES




Ionics Section 401(k) Stock Savings Plan. Pursuant to the requirements of the
Securities Exchange Act of 1934, the trustee (or other persons who administer
the employee benefit plan) has duly caused this annual report to be signed on
its behalf by the undersigned hereunto duly authorized.


                                    IONICS SECTION 401(k)
                                    STOCK SAVINGS PLAN


Date: June 25, 2002            By:  /s/Daniel M. Kuzmak
                                    -----------------------------
                                    Daniel M. Kuzmak, Member
                                    Plan Administrative Committee