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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

**(AMENDMENT        NO. 1)**

| x | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|-----------------------------------------------------------------------------------------------------------------|

**November      30, 2006**

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|------------------------------------------------------------------------------------------------------------------|

**000-31329**

**ROYAL      SPRING WATER INC. **

| **Nevada**                                                                    | **N/A**                                             |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

**14553      Delano Street Suite 217, Van-Nuys CA, 91411**

**None**

**Common      Shares, $0.001 par value**

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**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**Form      10-QSB**

**For      the Quarter Ended **
**November      30**
**,      2006**

**TABLE      OF CONTENTS**

|                                              |                                                                                            | Page   |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------|--------|
|                                              |                                                                                            |   |
| **PART                I - FINANCIAL INFORMATION** |
|                                              |                                                                                            |   |
| Item                1.                            | Financial                Statements                                                             |   |
|                                              | Balance                Sheets                                                                   | 3      |
|                                              | Statements                of Operations                                                         | 4      |
|                                              | Statements                of Cash Flows                                                         | 5      |
|                                              | Notes                to Financial Statements                                                    | 6      |
| Item                2.                            | Management’s                Discussion & Analysis or Plan of                Operation | 9      |
| Item                3.                            | Controls                and Procedures                                                          | 13     |
|                                              |                                                                                            |   |
| **PART                II - OTHER INFORMATION**    |
|                                              |                                                                                            |   |
| Item                1.                            | Legal                Proceedings                                                                | 14     |
| Item                2.                            | Unregistered                Sales of Equity securities and Use of                Proceeds       | 14     |
| Item                3.                            | Defaults                Upon Senior Securities                                                  | 14     |
| Item                4.                            | Submission                of Matters to a Vote of Security                Holders               | 14     |
| Item                5                             | Other                Information                                                                | 14     |
| Item                6.                            | Exhibits                                                                                        | 14     |

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Table          of Contents

**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**BALANCE      SHEETS**

|                                                                                                                                     |   | **November                30****,                2006** |       | **August                31, 2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|------------|------------------------------------|--------|
|                                                                                                                                     |   | **(Unaudited)**                                         |       |                               |   |
| **ASSETS**                                                                                                                               |   |                                                    |       |                               |   |
| CURRENT                ASSETS                                                                                                            |   |                                                    |       |                               |   |
| Cash                and cash equivalents                                                                                                 |   | $                                                       | 16,861     |                               | $      | 252,197 |   |
| Inventory                                                                                                                                |   |                                                    | 112,257    |                               |   | 65,912 |   |
| Prepaid                expenses and deposits                                                                                             |   |                                                    | 105,722    |                               |   | 32,722 |   |
| Total                Current Assets                                                                                                      |   |                                                    | 234,840    |                               |   | 350,831 |   |
|                                                                                                                                     |   |                                                    |       |                               |   |  |   |
| Property,                plant and equipment, net                                                                                        |   |                                                    | 3,725,397  |                               |   | 3,768,892 |   |
| TOTAL                ASSETS                                                                                                              |   | $                                                       | 3,960,237  |                               | $      | 4,119,723 |   |
|                                                                                                                                     |   |                                                    |       |                               |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ DEFICIT**                                                                           |   |                                                    |       |                               |   |   |   |
|                                                                                                                                     |   |                                                    |       |                               |   |   |   |
| CURRENT                LIABILITIES                                                                                                       |   |                                                    |       |                               |   |   |   |
| Accounts                payable and accrued liabilities                                                                                  |   | $                                                       | 82,382     |                               | $      | 64,398 |   |
| Advances                from shareholders                                                                                                |   |                                                    | 1,905,974  |                               |   | 1,649,609 |   |
| Obligation                under capital lease - current portion                                                                          |   |                                                    | 176,267    |                               |   | 171,083 |   |
| Total                Current Liabilities                                                                                                 |   |                                                    | 2,164,623  |                               |   | 1,885,090 |   |
|                                                                                                                                     |   |                                                    |       |                               |   |  |   |
| Obligation                under capital lease                                                                                            |   |                                                    | 3,761,326  |                               |   | 3,690,442 |   |
| TOTAL                LIABILITIES                                                                                                         |   |                                                    | 5,925,949  |                               |   | 5,575,532 |   |
|                                                                                                                                     |   |                                                    |       |                               |   |  |   |
| STOCKHOLDERS’                DEFICIT                                                                                               |   |                                                    |       |                               |   |  |   |
| Preferred                stock - $.001 par value; 5,000,000 shares authorized, none issued                or                outstanding  |   |                                                    | -          |                               |   | - |   |
| Common                stock - $.001 par value; 50,000,000 shares authorized, 30,072,000                shares                outstanding |   |                                                    | 30,072     |                               |   | 30,072 |   |
| Additional                paid-in capital                                                                                                |   |                                                    | 165,633    |                               |   | 135,633 |   |
| Deficit                accumulated during the development stage                                                                          |   |                                                    | (2,161,417 | )                                  |   | (1,621,514 | ) |
| TOTAL                STOCKHOLDERS’ DEFICIT                                                                                         |   |                                                    | (1,965,712 | )                                  |   | (1,455,809 | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                         |   | $                                                       | 3,960,237  |                               | $      | 4,119,723 |   |

**_______________**

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Table          of Contents

**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF OPERATIONS**

**FOR      THE THREE MONTHS ENDED NOVEMBER 30, 2006 AND 2005**

**AND      FROM INCEPTION TO NOVEMBER 30, 2006**

|                                                                          |   | **Three                        Months Ended November 30, 2006****(Unaudited)** |       | **Three                        Months Ended November 30, 2005****(Unaudited)** |   | **For                        the Period From April 20, 2005 (Date of Inception)                        to****November                        30****,                        2006****(Unaudited)** |   |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |
| EXPENSES                                                                      |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |
| General                        and administrative                             |   | $                                                                              | 94,352     |                                                                           | $      | 36,257                                                                                                                                                                                            |   | $ | 382,317 |   |
| Interest                        and bank charges                              |   |                                                                           | 46,080     |                                                                           |   | 556                                                                                                                                                                                               |   |   | 48,755 |   |
| Salaries                        and wages                                     |   |                                                                           | 45,959     |                                                                           |   | -                                                                                                                                                                                                 |   |   | 76,737 |   |
| Advertising                        and promotion                              |   |                                                                           | 38,076     |                                                                           |   | 758                                                                                                                                                                                               |   |   | 60,839 |   |
| Consulting                        fees                                        |   |                                                                           | 17,049     |                                                                           |   | -                                                                                                                                                                                                 |   |   | 29,549 |   |
| Professional                        fees                                      |   |                                                                           | 15,912     |                                                                           |   | 23,200                                                                                                                                                                                            |   |   | 256,269 |   |
| Vehicle                                                                       |   |                                                                           | 15,433     |                                                                           |   | 4,437                                                                                                                                                                                             |   |   | 56,306 |   |
| Travel                        and entertainment                               |   |                                                                           | 12,257     |                                                                           |   | 4,871                                                                                                                                                                                             |   |   | 43,841 |   |
| Occupancy                        costs                                        |   |                                                                           | 9,444      |                                                                           |   | -                                                                                                                                                                                                 |   |   | 51,806 |   |
| Insurance                                                                     |   |                                                                           | 6,959      |                                                                           |   | -                                                                                                                                                                                                 |   |   | 20,063 |   |
| Telecommunications                                                            |   |                                                                           | 6,620      |                                                                           |   | 2,339                                                                                                                                                                                             |   |   | 29,672 |   |
| Depreciation                                                                  |   |                                                                           | 80,695     |                                                                           |   | 43,097                                                                                                                                                                                            |   |   | 278,234 |   |
| TOTAL                        EXPENSES                                         |   |                                                                           | 388,836    |                                                                           |   | 115,515                                                                                                                                                                                           |   |   | 1,334,388 |   |
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| LOSS                        FROM OPERATIONS                                   |   |                                                                           | (388,836   | )                                                                              |   | (115,515                                                                                                                                                                                          | )      |   | (1,334,388 | ) |
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| OTHER                        EXPENSES                                         |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| Interest                        on capital lease obligation                   |   |                                                                           | 151,068    |                                                                           |   | 158,368                                                                                                                                                                                           |   |   | 827,029 |   |
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| NET                        LOSS                                               |   | $                                                                              | (539,904   | )                                                                              | $      | (273,883                                                                                                                                                                                          | )      | $ | (2,161,417 | ) |
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| Loss                        per common share, basic and diluted               |   | $                                                                              | (0.02      | )                                                                              | $      | (0.01                                                                                                                                                                                             | )      | $ |   |   |
|                                                                          |   |                                                                           |       |                                                                           |   |                                                                                                                                                                                              |   |   |   |   |
| Weighted                        average shares outstanding, basic and diluted |   |                                                                           | 30,072,000 |                                                                           |   | 30,072,000                                                                                                                                                                                        |   |   |   |   |

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Table          of Contents

**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**STATEMENTS      OF CASH FLOWS**

**FOR      THE THREE MONTHS ENDED NOVEMBER 30, 2006 AND 2005**

**AND      FROM INCEPTION TO NOVEMBER 30, 2006**

|                                                                                                              |   | **Three                    Months Ended November 30, 2006****(Unaudited)** |     | **Three                    Months Ended November 30, 2005****(Unaudited)** |   | **For                    the Period From April 20, 2005 (Date of Inception)                    to****November                    30****,                    2006****(Unaudited)** |    |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|----------|----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                                                          |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |
| Net                    Loss                                                                                       |   | $                                                                          | (539,904 | )                                                                          | $      | (273,883                                                                                                                                                                          | )       | $ | (2,161,417 | ) |
| Adjustments                    to reconcile net loss to net cash used by operating                    activities: |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| Depreciation                                                                                                      |   |                                                                       | 80,695   |                                                                       |   | 43,097                                                                                                                                                                            |    |   | 278,234 |   |
| Interest                    accrued on obligation under capital lease                                             |   |                                                                       | 151,068  |                                                                       |   | 158,368                                                                                                                                                                           |    |   | 827,029 |   |
| Acquisition                    of the net liabilities of Easy.com Inc.                                            |   |                                                                       | -        |                                                                       |   | -                                                                                                                                                                                 |    |   | (4,295 | ) |
| Services                    contributed by shareholders                                                           |   |                                                                       | 30,000   |                                                                       |   | 30,000                                                                                                                                                                            |    |   | 200,000 |   |
| Changes                    in Assets and Liabilities:                                                             |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| Prepaid                    expenses and deposits                                                                  |   |                                                                       | (73,000  | )                                                                          |   | (15,000                                                                                                                                                                           | )  |   | (105,722 | ) |
| Inventory                                                                                                         |   |                                                                       | (46,345  | )                                                                          |   | -                                                                                                                                                                                 |    |   | (112,257 | ) |
| Accounts                    payable and accrued liabilities                                                       |   |                                                                       | 17,985   |                                                                       |   | -                                                                                                                                                                                 |    |   | 82,382 |   |
| NET                    CASH USED IN OPERATING ACTIVITIES                                                          |   |                                                                       | (379,501 | )                                                                          |   | (57,418                                                                                                                                                                           | )  |   | (996,046 | ) |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                                                          |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| Acquisition                    of property and equipment                                                          |   |                                                                       | (37,200  | )                                                                          |   | (1,700                                                                                                                                                                            | )       |   | (653,067 | ) |
| NET                    CASH PROVIDED BY INVESTING ACTIVITIES                                                      |   |                                                                       | (37,200  | )                                                                          |   | (1,700                                                                                                                                                                            | )  |   | (653,067 | ) |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                                                          |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| Advances                    from shareholders                                                                     |   |                                                                       | 256,365  |                                                                       |   | 102,509                                                                                                                                                                           |    |   | 1,905,974 |   |
| Repayment                    of obligation under capital lease                                                    |   |                                                                       | (75,000  | )                                                                          |   | -                                                                                                                                                                                 |    |   | (240,000 | ) |
| NET                    CASH PROVIDED BY FINANCING ACTIVITES                                                       |   |                                                                       | 181,365  |                                                                       |   | 102,509                                                                                                                                                                           |    |   | 1,665,974 |   |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| NET                    CHANGE IN CASH & CASH EQUIVALENTS                                                      |   |                                                                       | (235,336 | )                                                                     |   | 43,391                                                                                                                                                                            |    |   | 16,861 |   |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                               |   |                                                                       | 252,197  |                                                                       |   | 12                                                                                                                                                                                |    |   | - |   |
|                                                                                                              |   |                                                                       |     |                                                                       |   |                                                                                                                                                                              |    |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT END OF PERIOD                                                     |   | $                                                                          | 16,861   |                                                                       | $      | 43,403                                                                                                                                                                            |    | $ | 16,861 |   |

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Table          of Contents

**ROYAL      SPRING WATER INC. **

**(A      DEVELOPMENT STAGE COMPANY)**

| **NOTE                1.** | **SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF                OPERATIONS** |
|----------------------------|-------------------------------------------------------------------------------------------------------|

**ORGANIZATION**

**BASIS      OF PRESENTATION**

*Accounting      and Reporting by Development Stage Enterprises*

**RECENT      ACCOUNTING PRONOUNCEMENTS**

*Fair      Value Measurements*

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Table          of Contents

**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

| **NOTE                2.** | **PROPERTY,                PLANT & EQUIPMENT** |
|----------------------------|----------------------------------------------------|

| Land                and water rights under capital lease |   | $      | 1,287,853 |   |
|----------------------------------------------------------|--------|--------|-----------|--------|
| Equipment                under capital lease             |   |   | 506,555   |   |
| Locomotive                under capital lease            |   |   | 53,661    |   |
| Computer                                                 |   |   | 70,410    |   |
| Software                                                 |   |   | 3,275     |   |
| Water                treatment system                    |   |   | 461,068   |   |
| Building                under capital lease              |   |   | 1,502,495 |   |
| Furniture                and equipment                   |   |   | 81,120    |   |
| Leasehold                improvements                    |   |   | 37,194    |   |
|                                                     |   |   | 4,003,631 |   |
| Less:                accumulated depreciation            |   |   | (278,234  | )      |
| Net                property, plant and equipment         |   | $      | 3,725,397 |   |

| **NOTE                3.** | **RELATED                PARTY TRANSACTIONS** |
|----------------------------|-----------------------------------------------|

| **NOTE                4.** | **OBLIGATION                UNDER CAPITAL LEASE** |
|----------------------------|---------------------------------------------------|

| 2007                (9 months)                                               |   | $      | 225,000    |   |
|------------------------------------------------------------------------------|--------|--------|------------|--------|
| 2008                                                                         |   |   | 307,000    |   |
| 2009                (11 months), including bargain purchase option           |   |   | 4,881,929  |   |
| Total                minimum lease payments                                  |   |   | 5,413,929  |   |
| Less:                amount representing interest at 19%                     |   |   | (1,476,336 | )      |
| Total                obligations under capital lease                         |   |   | 3,937,593  |   |
| Less:                current installments of obligations under capital lease |   |   | (176,267   | )      |
| Long-term                obligation under capital lease                      |   | $      | 3,761,326  |   |

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Table          of Contents

**ROYAL      SPRING WATER INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

| **NOTE                5.** | **SUBSEQUENT                EVENTS** |
|----------------------------|--------------------------------------|

*Accounting          for Derivative Financial Instruments Indexed To, and Potentially Settled          In, a          Company's Own Common Stock*
*Accounting          for Derivative Instruments and Hedging Activities*

| **NOTE                6.** | **COMMITMENT                AND CONTINGENCY** |
|----------------------------|-----------------------------------------------|

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Table          of Contents

| **I****TEM****2.** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION** |
|--------------------|---------------------------------------------------------------------------------------------|

**PLAN      OF OPERATION**

**Overview**

** **

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Table          of Contents

| 1. | From                the point of capture, a network of underground pipes transfers the                water                to our treatment plant where the water is first filtered through                sand                traps and stored in indoor holding tanks (one of six 25,000 gallon                tanks)                subsequent to the filtration and treatment process to prepare water                for                the bottling process. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | After                the primary storage, water is pumped to a Multi-Media Filter to an                Activated Carbon Pre-Filter, to a 5-Micron Sediment Filter to Reverse                Osmosis to Ozone Disinfection treated water pumped in two 6,000 gallon                Stainless Steel Production Water Storage Tanks. The water is then                transferred to the bottling zone via stainless steel pipes and Post                Activated Carbon Filter and a Ultra-Violet Sterilization system. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The                water is then moved to the bottling room which is pressurized and                air                conditioned (filtered air) to avoid all possible contamination during                the                bottle filling process. These operations consist of rinsing of the                bottle                prior to filling, filling of the bottle with the purified water,                capping                it, labeling it, assigning it with a batch number, year and time                of                bottling and expiration date. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                bottles are then moved to the packing and shipping area where a bundling                machine groups the various forms into packs of 6, 12, 24 and 32 bottles,                wrapping them in printed film. The packs are then transferred to                the                robotic pallet- forming area where they are palletized for                shipment. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Our                in house laboratory staff                maintains a constant control on the quality of the water. Weekly                water                samples are sent out to a certified lab in order to maintain our                certification by the EPA, TCEQ and Texas Department of Health authorities.                To further guarantee a superior quality product, the laboratory has                to                process daily chemical and bacteriological analyses on the entire                production chain. We are using polyethylene Terephthalate (known                as PET)                bottles in various sizes - 12oz, 16.9oz 1L and 1.5L. Our current                system                can also manufacture flavored water and carbonated water. Our capping                machines can handle both a regular flat cap as well as a                sports** **cap.                We have a Krup stretch blow molder which we will use to blow our                PET                bottles. The PET bottles are blown from what is called a preform.                This is                supplied to us by the Ball Corporation, one of the leading PET                manufacturers. We have made a decision to buy all of our raw materials                from US based companies instead of China made products. (see details                of                our current existing production capacity and potential capacity in                the                paragraph below entitled “Acquisition or Disposition of Plant and                Equipment”) |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table          of Contents

**Results      of Operations for the Three Months Ended **
**November      30**
**,      2006**

**Licensing      and Water Rights:**

**Product      Research and Development:**

**Acquisition      or Disposition of Plant and Equipment:**

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Table          of Contents

**Liquidity      and Capital Resources and Future Funding Requirements**

| · | Building                - 20,000 square feet three story building attached to the                warehouse |
|--------|------------------------------------------------------------------------------------------------------------|

| · | Warehouse                - 15,000 square feet adjacent to the three story building |
|--------|------------------------------------------------------------------------------------|

| · | Warehouse                - additional 36,000 square feet space, added April                2006 |
|--------|-------------------------------------------------------------------------------------------------|

| · | Equipment                - six 25,000 gallon liquid holding tanks (4 tanks are inside the                building                and 2 outside) related water pumps and pipes connecting wells and                tanks,                motors and agitators |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Land                and Water Rights - Well #11 and Well #12 located on the real                Property |
|--------|----------------------------------------------------------------------------------------------------------|

| · | Waste                water ponds |
|--------|----------------------------------|

| · | Paved                parking |
|--------|------------------------------|

| · | Access                to existing rail |
|--------|----------------------------------------|

| December                1, 2006 - December 31, 2006 |   | $      | 175,000 |   |
|-----------------------------------------------------|--------|--------|---------|--------|
| January                1, 2007 - December 31, 2007  |   |   | 300,000 |   |
| January                1, 2008 - December 31, 2008* |   |   | 310,500 |   |
| January                1, 2009 - July 31, 2009*     |   |   | 187,464 |   |
|                                                |   |   |    |   |
|                                                |   | $      | 972,964 |   |

** **

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Table          of Contents

**Determination        of the classification of the lease**

*Accounting      for leases, *

**Off-Balance      Sheet Arrangements**

**Going      Concern**

| **I****TEM****3.** | ** CONTROLS                AND PROCEDURES** |
|--------------------|--------------------------------------------------|

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Table          of Contents

**PART      II - OTHER INFORMATION**

| **I****TE****M                1** | **LEGAL                PROCEEDINGS** |
|-----------------------------------|--------------------------------------|

| **ITE****M                2** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS** |
|-------------------------------|--------------------------------------------------------------------------------|

| **I****TE****M                3** | **DEFAULTS                UPON SENIOR SECURITIES** |
|-----------------------------------|----------------------------------------------------|

| **I****TE****M                4** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS** |
|-----------------------------------|------------------------------------------------------------------------|

| **ITE****M                5** | **OTHER                INFORMATION** |
|-------------------------------|--------------------------------------|

| **I****TEM****6** | **EXHIBITS** |
|-------------------|--------------|

| Exhibit                No. |   | Description                                                                                                                                                                                                                                |
|----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                       |
| 31.1                       |   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 and Rule 13a-14(a)/15d-14(a) of the Securities Exchange                Act of                1934.        |
|                       |   |                                                                                                                                                                                                                                       |
| 31.2                       |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002 and Rule 13a-14(a)/15d-14(a) of the Securities Exchange                Act of                1934.        |
|                       |   |                                                                                                                                                                                                                                       |
| 32.1                       |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350, as adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002. |

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Table          of Contents

**SIGNATURES**

|   | **ROYAL                  SPRING WATER INC.** |
|--------|----------------------------------------------|
|   |                                         |   |
|   |                                         |   |
|   | By:                                | /s/                  Alex Hazan |
|   |                                         | Name:                  Alex Hazan |
|   |                                         | Title:                  Chief Executive Officer |
|   |                                         |   |
|   | Date:                  March 27, 2007        |
|   |                                         |
|   |                                         |
|   | By:                                | /s/                  Harel Goldstein |
|   |                                         | Name:                  Harel Goldstein |
|   |                                         | Title:                  Chief Financial Officer |
|   |                                         |   |
|   | Date:                  March 27, 2007        |

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