U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

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

     For the quarterly period ended February 28, 2006.

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

     For the transition period from _______ to ________


                        COMMISSION FILE NUMBER: 000-31343


                         INTERNATIONAL DEVELOPMENT CORP.
                 (Name of small business issuer in its charter)

                  NEVADA                                    36-4567500
    (State or other jurisdiction of                      (I.R.S. Employer
     incorporation or organization)                     Identification No.)

      534 DELAWARE AVENUE, SUITE 412                          14202
             BUFFALO, NEW YORK                              (Zip Code)
 (Address of principal executive offices)

                                 (416) 490-0254
                           (Issuer's telephone number)

     Check whether the issuer  (1) filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the past 12 months (or for such
shorter  period  that the registrant was required to file such reports), and (2)
has  been  subject  to such filing requirements for the past 90 days. Yes [X] No
[_]

     Indicate  by  check  mark  whether  the  registrant  is a shell company (as
defined  in  Rule  12b-2  of  the  Exchange  Act).  Yes  [X]  No  [_]

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable date: As of April 7, 2006, the
issuer  had  483,404,226  shares  of  its  common  stock issued and outstanding.

     Transitional Small Business Disclosure Format (check one): Yes [_] No  [X]


<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
<S>                                                                       <C>
PART I - FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . .  2
Item 1.  Financial Statements (Unaudited). . . . . . . . . . . . . . . . .  2
Item 2.  Management's Discussion and Analysis or Plan of Operation . . . .  2
Item 3.  Controls and Procedures . . . . . . . . . . . . . . . . . . . . .  5
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . .  5
Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . .  5
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds . . .  5
Item 3.  Defaults Upon Senior Securities . . . . . . . . . . . . . . . . .  5
Item 4.  Submission of Matters to a Vote of Security Holders . . . . . . .  5
Item 5.  Other Information . . . . . . . . . . . . . . . . . . . . . . . .  6
Item 6.  Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . .  6
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. .
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. .
</TABLE>


                                        1
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL  STATEMENTS.

     The  financial  statements  and  related notes are included as part of this
Quarterly  Report  as  indexed  in  the  appendix  on  page  F-1  through  F-6.

ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATIONS.

FORWARD-LOOKING INFORMATION

     Much  of  the  discussion  in  this  Item  is  "forward  looking."  Actual
operations  and results may materially differ from present plans and projections
due  to  changes  in  economic  conditions,  new business opportunities, changed
business  conditions,  and  other  developments.  Other factors that could cause
results  to  differ  materially are described in our filings with the Securities
and  Exchange  Commission.

     The  following  are  factors  that  could cause actual results or events to
differ  materially  from  those anticipated, and include, but are not limited to
general  economic,  financial and business conditions, changes in and compliance
with  governmental  laws  and  regulations,  including various state and federal
environmental  regulations,  our  ability  to  obtain  additional financing from
outside investors and/or bank and mezzanine lenders; and our ability to generate
sufficient  revenues  to  cover  operating  losses  and  position  us to achieve
positive  cash  flow.

     Readers  are  cautioned  not to place undue reliance on the forward-looking
statements contained herein, which speak only as of the date hereof.  We believe
the  information  contained  in  this  Form 10-QSB to be accurate as of the date
hereof.  Changes may occur after that date.  We will not update that information
except  as  required  by  law  in  the  normal  course  of our public disclosure
practices.

     Additionally, the following discussion regarding our consolidated financial
condition  and  results  of  operations  should  be read in conjunction with the
consolidated  financial statements and related notes contained in Item 1 of Part
I  of this Form 10-QSB, as well as the consolidated financial statements in Item
7  of  Part  II  of  our  Form 10-KSB for the fiscal year ended August 31, 2005.

RESULTS OF OPERATIONS

     For  the  six months ended February 28, 2006 and 2005, we had no sales. The
net  loss  for  the six months ended February 28, 2006 was $26,593 compared to a
net  loss  of  $683,664  for  the  six  months  ended  February  28,  2005.

     Subsequent  to our fiscal year ended August 31, 2005, we finalized the sale
of  the  assets and liabilities of our subsidiary, Freshwater Technologies, Inc.
to  Max Weissengruber, our chief operations officer and a director, and D. Brian
Robertson,  our  former chief financial officer, based on our audited financials
at  August 31, 2005, with an effective date of October 1, 2005. This resulted in
a  gain  on  the  sale of the assets and liabilities of Freshwater Technologies,
Inc.  of  $194,742.  Additionally,  the remainder of Messrs. Weissengruber's and
Robertson's  consulting  contracts were mutually cancelled as of August 31, 2005
with  no  resulting  penalties  to  International  Development  Corp.

     Expenses have decreased by $462,000 for the first six months of our current
fiscal year from $683,000 for the six months ended February 28, 2005 to $221,000
for  the  six  months  ended  February  28,  2006.  The decrease can be directly
attributed  to  the reorganization costs during the fiscal year ended August 31,
2005,  including  costs  relating to the development of new marketing strategies
and  discussions  regarding the reorganization of the corporation, that were not
incurred  in  the  current  year.

     On  October 12, 2005, we entered into an Exclusive Licensing Agreement with
Wataire  Industries,  Inc.,  an  unrelated  party,  for  the  exclusive right to
distribute  and  sell  the  technology-based  water  generation and purification
products  of  Wataire  Industries,  Inc. in the United States of America, for an
indefinite  period.  In  consideration  of the Exclusive Licensing Agreement, we
issued  15,000,000  shares  of  our  Series C preferred stock valued at $15,000.
We anticipate to begin recognizing revenue under this licensing agreement before
the close of the August  31,  2006  fiscal  year.

     For  the  three months  ended February 28, 2006 and 2005, we had no sales.
The net loss for the three months ended February 28, 2006 was $122,198 compared
to  a  net  loss  of  $353,889 for  the  three  months ended February 28, 2005.

Expenses  have  decreased  by  $232,000 from $354,000 for the three months ended
February  28, 2005 to $122,000 for the three months ended February 28, 2006. The
decrease  can  be  directly  attributed  to  the reorganization costs during the
fiscal year ended August 31,2005, including costs relating to the development of
new  marketing  strategies  and  discussions regarding the reorganization of the
corporation,  that  were  not  incurred  in  the  current  year.


                                        2
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

     Our  operations  used  $175,000  of  cash, which was advanced by a Director
during the six months ended February 28, 2006. The Company's main impetus was on
the  sale  of  the  assets  and  liabilities  of  our  subsidiary,  Freshwater
Technologies,  Inc.,  and the formulation of our marketing plan for the sale and
distribution  of the technology-based water generation and purification products
of  Wataire  Industries,  Inc.

     We  estimate  our  business  operational expenses during the next 12 months
will  be  approximately  $1.3  million.

     As  discussed  by  our  accountants in the unaudited consolidated financial
statements included in Item 1 of Part I of this Quarterly Report on Form 10-QSB,
our  revenues  are  currently  insufficient  to  cover  our  costs and expenses.

     Directors  and  shareholders  continue  to  provide  us the funds needed to
continue  our  development  and operations.  To the extent our revenue shortfall
exceeds  the  willingness  and ability of our directors and shareholders and the
selling  of  our shares to continue providing us the funds needed, we anticipate
raising  any  necessary  capital  from  outside  investors  coupled with bank or
mezzanine  lenders.  As of the date of this report, we have not entered into any
negotiations  with  any  third  parties  to  provide  such  capital.

     We  anticipate  that  our  current  financing  strategy  of  private  debt,
including  additional  funds  from  our directors and existing stockholders, and
equity  offerings  will  meet our anticipated objectives and business operations
for  the  next  12  months.  We continue to evaluate opportunities for corporate
development.  Subject  to  our  ability  to  obtain  adequate  financing  at the
applicable time, we may enter into definitive agreements on one or more of those
opportunities.

     Our  independent  accountants'  review  report  on  our  February 28, 2006
unaudited  consolidated  financial statements states that our lack of sources of
revenues  raise  substantial  doubts  about  our  ability to continue as a going
concern.

APPLICATION OF CRITIAL ACCOUNTING POLICIES

     Our  consolidated  financial statements and accompanying notes are prepared
in accordance with accounting principles generally accepted in the United States
of  America.  Preparing consolidated financial statements requires management to
make  estimates  and  assumptions  that  affect  the reported amounts of assets,
liabilities,  revenues,  and  expenses.  These  estimates  and  assumptions  are
affected  by  management's  application  of  accounting  policies.  Critical
accounting  policies include revenue recognition, impairment of marketing rights
and  accounting  for  stock-based  compensation.

     We  recognize  revenue in accordance with Staff Accounting Bulletin No.101,
"Revenue Recognition in Financial Statements."  Sales are recorded when products
are  shipped  to  customers.  Provisions for discounts and rebates to customers,
estimated  returns and allowances, and other adjustments are provided for in the
same  period  the  related  sales  are  recorded.

     We  evaluate  our  long-lived  assets for financial impairment on a regular
basis  in  accordance  with Statement of Financial Accounting Standards No. 144,
"Accounting  for  the Impairment or Disposal of Long-Lived Assets."  We evaluate
the  recoverability  of  long-lived  assets  not  held for sale by measuring the
carrying amount of the assets against the estimated discounted future cash flows
associated  with  them.  At  the  time such evaluations indicate that the future
discounted cash flows of certain long-lived assets are not sufficient to recover
the carrying value of such assets, the assets are adjusted to their fair values.

     We  account  for  stock-based  compensation in accordance with Statement of
Financial  Accounting  Standards  No.  123R,  "Share-Based  Payment"  and  Staff
Accounting  Bulletin  No.  107,  which  requires  us  to  measure  and recognize
compensation expense for all stock-based payments for services at the grant-date
fair  value,  with  the  cost  recognized  over  the  vesting  period.


                                        3
<PAGE>
RECENT DEVELOPMENTS

     On  September  29,  2005,  our  board  of directors approved the following:

     -    Discretionary  approval  to  implement  a  reverse  stock split of our
          common  stock on the basis of up to one for 1,000, pending stockholder
          approval.  However, on January 6, 2006, our board of directors changed
          the  proposed  reverse split to a definite reverse split of the issued
          and  outstanding  shares  of  our  common  stock  on  the basis of one
          post-consolidation  share  for  each 1,000 pre-consolidation shares to
          occur  immediately. The reverse split will occur once our shareholders
          approve  the  proposal  at  a  meeting scheduled for April 13, 2006.

     -    Discretionary  approval  of  the  Freshwater  Technologies, Inc. Stock
          Purchase  Agreement  between  International  Development Corp. and Max
          Weissengruber,  our  chief  operations  officer and a director, and D.
          Brian Robertson, our then chief financial officer. We proposed to sell
          100  percent of the outstanding stock of Freshwater Technologies, Inc.
          to  Messrs.  Weissengruber and Robertson for a total purchase price of
          $60,211,  pending  stockholder  approval. The purchase price was to be
          paid  through  the  forgiveness of debts owed to Messrs. Weissengruber
          and Robertson by International Development Corp. The fair market value
          of  the  liabilities of Freshwater Technologies, Inc. to be assumed by
          Messrs.  Weissengruber and Robertson would have exceeded the assets to
          be  sold  to  them  by  $134,531.  On  January 6, 2006, we and Messrs.
          Weissengruber and Robertson changed our agreement to reflect that only
          certain  assets  of  Freshwater  would  be  sold  and  that  Messrs.
          Weissengruber  and  Robertson  would  assume  certain  liabilities and
          forgive  debts  owed by Freshwater and International Development Corp.
          to  them.  As  a  result,  Freshwater would continue as a wholly-owned
          subsidiary of International Development Corp. In addition, we sold the
          Freshwater  name  to Messrs. Weissengruber and Robertson and agreed to
          change the name of Freshwater. The agreements were all effective as of
          October  1,  2005.

     -    Established  a  Series  C  preferred  stock,  $0.001 par value. We are
          authorized  to  issue  15,000,000  shares,  which are convertible into
          common  stock  on  a  one  for  one basis and carry one for one voting
          rights.  On  October  12, 2005, we entered into an Exclusive Licensing
          Agreement  with  Wataire Industries, Inc., an unrelated party, for the
          exclusive  right  to  distribute  and  sell the technology-based water
          generation  and  purification  products of Wataire Industries, Inc. in
          the  United  States  of  America.  In  consideration  of the Exclusive
          Licensing  Agreement,  we  issued  15,000,000  shares  of our Series C
          preferred  stock,  valued  at  $15,000.

     On  January  6,  2006,  our  board  of  directors  approved  the following:

     -    A  grant  of  discretionary  authority  to  our  board of directors to
          implement  a reverse split of the issued and outstanding shares of our
          common  stock  on  the  basis of one post-consolidation share for each
          1,000  pre-consolidation  shares  to  occur  immediately, as discussed
          above.

     -    An  amendment  to  our  Articles  of  Incorporation to provide for the
          creation  of  a second series of common stock to be known as "Series B
          Common Stock." The authorization for a new series of common stock will
          occur  once  our  shareholders  approve  the  proposal  at  a  meeting
          scheduled  for April 13, 2006.

     -    An  amendment  to  our  Articles  of  Incorporation to provide for the
          change  in  our corporate name from International Development Corp. to
          Global  Wataire,  Inc.  The  change  of  name  will  occur  once  our
          shareholders approve the proposal at a meeting scheduled for April 13,
          2006.

     -    Rescinding a written consent of directors at a meeting on December 12,
          2005  appointing  Max  Weissengruber,  Douglas  Robertson and D. Brian
          Robertson  as  directors  of  Freshwater  Technologies,  Inc.

OFF-BALANCE SHEET ARRANGEMENTS

     We  do  not  have  any  off-balance  sheet  arrangements.


                                        4
<PAGE>
ITEM 3.  CONTROLS  AND  PROCEDURES.

     Disclosure  controls  and procedures are controls and other procedures that
are  designed  to  ensure that information required to be disclosed by us in the
reports  that  we  file or submit under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange  Commission's  rules  and  forms.  Disclosure  controls  and procedures
include,  without  limitation,  controls  and procedures designed to ensure that
information required to be disclosed by us in the reports that we file under the
Exchange  Act  is  accumulated and communicated to our management, including our
principal  executive  and  financial  officers,  as  appropriate to allow timely
decisions  regarding  required  disclosure.

     Evaluation  of disclosure and controls and procedures. As of the end of the
period  covered  by this Quarterly Report, we conducted an evaluation, under the
supervision  and  with  the  participation  of  our  chief executive officer and
principal  financial  officer,  of  our  disclosure  controls and procedures (as
defined  in  Rules 13a-15(e) of the Exchange Act). Based on this evaluation, our
chief  executive  officer  and  principal  financial  officer concluded that our
disclosure  controls  and  procedures  are  effective to ensure that information
required  to  be  disclosed  by  us  in reports that we file or submit under the
Exchange  Act  is  recorded,  processed, summarized and reported within the time
periods  specified  in  Securities  and  Exchange  Commission  rules  and forms.

     Changes in internal controls over financial reporting.  There was no change
in  our  internal  controls,  which  are included within disclosure controls and
procedures,  during  our  most  recently  completed  fiscal  quarter  that  has
materially  affected, or is reasonably likely to materially affect, our internal
controls.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL  PROCEEDINGS.

     As  of  the  date  of  this  report,  we  are  not  involved  in  any legal
proceedings.

ITEM 2.  UNREGISTERED  SALES  OF  EQUITY  SECURITIES  AND  USE  OF  PROCEEDS.

     In  consideration  of  the  Exclusive  License  Agreement  with  Wataire
Industries, Inc., on October 12, 2005, we issued to Wataire 15,000,000 shares of
our  Series  C  preferred  stock, par value $0.001 per share.  Each share of the
Series  C  preferred  stock received by Wataire is convertible into one share of
our  common  stock.  Likewise,  each  share  of the Series C preferred stock has
voting  rights  equal  to one share of our common stock.  On October 21, 2005 we
filed  a  Form  8-K  with  respect to the unregistered sale of our securities to
Wataire  Industries,  Inc.

     There  were  no proceeds received as a result of the issuance of the shares
of  our  Series  C  preferred  stock.

     All  of  our  shares  were  issued  in  reliance  upon  an  exemption  from
registration  pursuant  to  Section  4(2)  of  the  Securities  Act.  All of the
investors  took  their  securities  for  investment  purposes  without a view to
distribution  and had access to information concerning International Development
Corp.  and  our  business  prospects,  as  required  by  the  Securities  Act.

     In  addition,  there  was  no  general  solicitation or advertising for the
purchase  of  our shares.  The securities were sold only to persons with whom we
had a direct personal preexisting relationship, and after a thorough discussion.

     Finally,  our  stock transfer agent has been instructed not to transfer any
of  such  shares,  unless  such  shares are registered for resale or there is an
exemption  with  respect  to  their  transfer.

ITEM 3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     None.

ITEM 4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

     None.


                                        5
<PAGE>
ITEM 5.  OTHER  INFORMATION.

     None.

ITEM 6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

    (a)  Exhibits.

<TABLE>
<CAPTION>
 NO.                                   IDENTIFICATION OF EXHIBIT
------                                 -------------------------
<S>       <C>
   2.1*   Certificate of Designation for Series B preferred stock filed April 7, 2005.
   2.2*   Certificate of Designation for Series C preferred stock filed October 6, 2005.
  10.1*   Exclusive License Agreement with Wataire Industries, Inc. dated October 12, 2005.
  31.1**  Certification of Betty-Ann Harland, Chief Executive Officer of International Development
          Corp., pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.302 of the Sarbanes-Oxley Act of 2002.
  31.2**  Certification of Betty-Ann Harland , Principal Financial Officer of International Development Corp., pursuant
          to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.302 of the Sarbanes-Oxley Act of 2002.
  32.1**  Certification of Betty-Ann Harland, Chief Executive Officer of International Development
          Corp., pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002.
  32.2**  Certification of Betty-Ann Harland, Principal Financial Officer of International Development Corp., pursuant
          to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.906 of the Sarbanes-Oxley Act of 2002.
</TABLE>

__________
*     Previously  filed.
**    Filed  herewith.

(b)  Reports  on  Form  8-K.

     -    On  November  29,  2005  we  filed  a  Form 8-K for the Certificate of
          Designation  for  Series  B  preferred  stock  and  the Certificate of
          Designation  for  Series  C  preferred  stock.

     -    On January 19, 2006 we filed a Form 8-K for the sale of certain assets
          and  liabilities  of  Freshwater  Technologies,  Inc.,  International
          Development  Corp.'s  wholly-owned  subsidiary.


                                   SIGNATURES

     In  accordance  with  the  requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

     Dated  April 12,  2006.

                                        INTERNATIONAL DEVELOPMENT CORP.


                                        By /s/ Betty-Ann Harland
                                           -------------------------------------
                                           Betty-Ann Harland,
                                           Chief Executive Officer


                                        By /s/ Betty-Ann Harland
                                           -------------------------------------
                                           Betty-Ann Harland,
                                           Principal Financial Officer


                                        6
<PAGE>
                         INTERNATIONAL DEVELOPMENT CORP.
                                 AND SUBSIDIARY
                             (A NEVADA CORPORATION)
                                BUFFALO, NEW YORK

                         ==============================
                                FINANCIAL REPORTS
                                       AT
                                FEBRUARY 28, 2006
                         ==============================


<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


TABLE OF CONTENTS
==============================================================================
<S>                                                                        <C>
Consolidated Balance Sheets at February 28, 2006 (Unaudited)
  and August 31, 2005                                                        1

Consolidated Statements of Operations for the Three and Six Months Ended
  February 28, 2006 and 2005 (Unaudited)                                     2

Consolidated Statements of Cash Flows for the Six Months Ended
  February 28, 2006 and 2005 (Unaudited)                                    3-4

Notes to Consolidated Financial Statements                                  5-6
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED BALANCE SHEETS
================================================================================================

                                                                     (UNAUDITED)
                                                                     FEBRUARY 28,    August 31,
                                                                         2006           2005
------------------------------------------------------------------------------------------------
<S>                                                                 <C>             <C>

ASSETS
CURRENT ASSETS
Cash and Cash Equivalents                                           $         122   $       194
Accounts Receivable - Net of Allowance for Doubtful Accounts                    -        15,678
Inventory                                                                       -       190,830
------------------------------------------------------------------------------------------------

TOTAL CURRENT ASSETS                                                          122       206,702

OTHER ASSETS
Marketing Rights                                                           15,000             -
------------------------------------------------------------------------------------------------

TOTAL ASSETS                                                        $      15,122   $   206,702
================================================================================================

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Accounts Payable                                                    $     107,596   $    89,524
Deferred Revenue                                                                -         7,037
Due to Directors                                                          337,318       367,696
Due to Stockholder                                                              -       172,940
------------------------------------------------------------------------------------------------

TOTAL LIABILITIES                                                         444,914       637,197
------------------------------------------------------------------------------------------------

STOCKHOLDERS' DEFICIT
Common Stock:  $.001 Par; 800,000,000 Shares Authorized;
               483,404,226 Issued and Outstanding                         483,404       483,404
Preferred Stock, Class A:  $.001 Par; 1,000,000 Shares Authorized;
               100,000 Issued and Outstanding                                 100           100
Preferred Stock, Class B:  $.001 Par; 5,000,000 Shares Authorized;
               1,000,000 Issued and Outstanding                             1,000         1,000
Preferred Stock, Class C:  $.001 Par; 15,000,000 and -0- Shares
               Authorized, respectively; 15,000,000 and -0-
               Issued and Outstanding, respectively.                       15,000             -
Additional Paid-In Capital                                              2,239,219     2,226,923
Accumulated Deficit                                                    (3,168,515)   (3,141,922)
------------------------------------------------------------------------------------------------

TOTAL STOCKHOLDERS' DEFICIT                                              (429,792)     (430,495)
------------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                         $      15,122   $   206,702
================================================================================================
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                      - 1 -
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
============================================================================================

                                        THREE MONTHS ENDED            SIX MONTHS ENDED
                                  -----------------------------  ---------------------------
                                           FEBRUARY 28,                  FEBRUARY 28,
                                       2006           2005           2006           2005
--------------------------------------------------------------------------------------------
<S>                                <C>            <C>            <C>            <C>

REVENUES, NET                      $          -   $          -   $          -   $         -

Cost of Goods Sold                            -              -              -             -
--------------------------------------------------------------------------------------------

GROSS PROFIT                                  -              -              -             -
--------------------------------------------------------------------------------------------

EXPENSES
Bad Debts                                     -         22,944              -        22,944
Consulting Fees                          58,000        133,002        116,000       193,337
Marketing, Including Amortization
  of Marketing Rights                         -         79,385              -        89,905
General and Administrative               56,819         64,378         93,039       105,318
Interest Expense                          7,379          4,180         12,296         7,992
Restructuring Charges                         -         50,000              -       264,168
--------------------------------------------------------------------------------------------

TOTAL EXPENSES                          122,198        353,889        221,335       683,664
--------------------------------------------------------------------------------------------

LOSS FROM OPERATIONS BEFORE
  PROVISION FOR TAXES                  (122,198)      (353,889)      (221,335)     (683,664)

Provision for Taxes                           -              -              -             -
--------------------------------------------------------------------------------------------

LOSS FROM OPERATIONS                   (122,198)      (353,889)      (221,335)     (683,664)

DISCONTINUED OPERATIONS
Gain from Sale of Net Assets of
  Subsidiary, Net of Taxes                    -              -        194,742             -
--------------------------------------------------------------------------------------------

NET LOSS FOR THE PERIOD            $   (122,198)  $   (353,889)  $    (26,593)  $  (683,664)
============================================================================================

WEIGHTED AVERAGE NUMBER OF
  COMMON SHARES OUTSTANDING -
  BASIC AND DILUTED                 483,404,226    110,082,002    483,404,226    78,003,674

NET LOSS PER COMMON SHARE -
  BASIC AND DILUTED                $      (0.00)  $      (0.00)  $      (0.00)  $     (0.01)
============================================================================================
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                      - 2 -
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
=============================================================================

Six Months Ended February 28,                             2006        2005
-----------------------------------------------------------------------------
<S>                                                    <C>         <C>

CASH FLOWS FROM OPERATING ACTIVITIES

NET LOSS FOR THE PERIOD                                $ (26,593)  $(683,664)

NON-CASH ADJUSTMENTS:
Gain on Sale of Net Assets of Subsidiary                (194,742)          -
Bad Debts                                                      -      22,944
Interest on Directors/Stockholder Loans                   12,296       7,992
Shares Issued to Consultants                                   -      10,000
Compensation Expense on Employee Stock Option Grants           -      69,436

CHANGES IN ASSETS AND LIABILITIES:
Accounts Receivable                                            -         240
Cash Overdraft                                                 -       4,010
Accounts Payable                                          33,529       4,264
-----------------------------------------------------------------------------

NET CASH FLOWS FROM OPERATING ACTIVITIES                (175,510)   (564,778)
-----------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES                           -           -
-----------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Common Stock                         -      25,000
Proceeds from Stock Options Exercised                          -     393,472
Payment for Purchase of Common Stock for Cancellation          -      (5,000)
Advances from Directors                                  175,438     271,191
Repayments to Directors                                        -    (142,897)
Advances from Stockholder                                      -      53,306
Repayments to Stockholder                                      -     (30,527)
-----------------------------------------------------------------------------

NET CASH FLOWS FROM FINANCING ACTIVITIES                 175,438     564,545
-----------------------------------------------------------------------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                      (72)       (233)

Cash and Cash Equivalents - Beginning of Period              194         233
-----------------------------------------------------------------------------

CASH AND CASH EQUIVALENTS - END OF PERIOD              $     122   $       -
=============================================================================
</TABLE>

                                                                  - continued -

   The accompanying notes are an integral part of these financial statements.


                                      - 3 -
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - CONTINUED
======================================================================================

Six Months Ended February 28,                                       2006        2005
--------------------------------------------------------------------------------------
<S>                                                              <C>         <C>
SUPPLEMENTAL DISCLOSURES
======================================================================================

Interest Paid                                                    $       -   $       -
Income Taxes Paid                                                $       -   $       -
======================================================================================

NON-CASH INVESTING AND FINANCING ACTIVITIES
======================================================================================

ACQUISITION OF MARKETING RIGHTS VIA ISSUANCE OF PREFERRED STOCK  $  15,000   $       -

ASSETS AND LIABILITIES TRANSFERRED TO RELATED PARTIES IN
  CONNECTION WITH SALE OF NET ASSETS OF SUBSIDIARY:
Accounts Receivable                                              $  15,678   $       -
Inventory                                                        $ 190,830   $       -
Accounts Payable                                                 $ (15,457)  $       -
Deferred Revenue                                                 $  (7,037)  $       -
Due to Directors                                                 $(173,333)  $       -
Due to Stockholder                                               $(145,212)  $       -

SALE OF NET ASSETS OF SUBSIDIARY PAID VIA FORGIVENESS OF
  LIABILITIES:
Due to Directors                                                 $ (32,483)  $       -
Due to Stockholder                                               $ (27,728)  $       -
======================================================================================
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                      - 4 -
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================

NOTE  A - BASIS  OF  PRESENTATION
          The  condensed  consolidated  financial  statements  of  International
          Development  Corp. and Subsidiary (the "Company") included herein have
          been prepared by the Company, without audit, pursuant to the rules and
          regulations  of  the  Securities  and Exchange Commission (the "SEC").
          Certain  information  and  footnote  disclosures  normally included in
          consolidated  financial  statements  prepared  in  conjunction  with
          generally  accepted  accounting  principles  have  been  condensed  or
          omitted  pursuant  to such rules and regulations, although the Company
          believes  that  the  disclosures  are adequate to make the information
          presented  not  misleading.  These  condensed  consolidated  financial
          statements  should  be  read  in  conjunction  with the annual audited
          consolidated  financial  statements  and the notes thereto included in
          the  Company's Form 10-KSB Annual Report, and other reports filed with
          the  SEC.

          The  accompanying  unaudited interim consolidated financial statements
          reflect all adjustments of a normal and recurring nature which are, in
          the  opinion  of management, necessary to present fairly the financial
          position,  results of operations and cash flows of the Company for the
          interim periods presented. The results of operations for these periods
          are  not  necessarily  comparable to, or indicative of, results of any
          other  interim  period  of  or  for  the fiscal year taken as a whole.
          Certain  financial  information  that  is  not  required  for  interim
          financial  reporting  purposes  has  been  omitted.

          RECLASSIFICATIONS
          Certain  amounts  in  the prior year consolidated financial statements
          have  been reclassified to conform with the current year presentation.
          The reclassifications made to the prior year have no impact on the net
          income  (loss),  or overall presentation of the consolidated financial
          statements.

NOTE  B - THE  COMPANY
          On  January  6,  2006,  the Board of Directors approved the following:
               1.   A  grant  of  discretionary authority to implement a reverse
                    split  of  the  issued  and outstanding shares of our common
                    stock  on the basis of one post-consolidation share for each
                    1,000 pre-consolidation shares to occur immediately, pending
                    stockholder  approval.
               2.   An amendment to our Articles of Incorporation to provide for
                    the  creation of a second series of common stock to be known
                    as  "Series  B  Common Stock," pending stockholder approval.
               3.   An amendment to our Articles of Incorporation to provide for
                    the  change  in  our  corporate  name  from  International
                    Development Corp. to Global Wataire Inc, pending stockholder
                    approval.

NOTE  C - DISCONTINUED  OPERATIONS
          On  January  6,  2006, the Board of Directors approved the Asset Sales
          Agreement  between  the  Company  and Max Weissengruber, the Company's
          Chief Operations Officer, and D. Brian Robertson, the Company's former
          Chief  Financial Officer. The Asset Sales Agreement replaces the Stock
          Purchase  Agreement that had been previously approved on September 29,
          2005,  but  was subsequently rescinded on January 6, 2006. The Company
          sold  100%  of  the assets and liabilities of FreshWater Technologies,
          Inc. to Mr. Weissengruber and Mr. Robertson for a total purchase price
          of  $60,211.  The  purchase  price was paid through the forgiveness of
          debts  owed to Mr. Weissengruber and Mr. Robertson by the Company. The
          fair  market value of the liabilities of FreshWater Technologies, Inc.
          being assumed by Mr. Weissengruber and Mr. Robertson exceed the assets
          being  sold  to  Mr. Weissengruber and Mr. Robertson by $134,531. As a
          result  of this sale, the Company has no revenue generating operations
          at  this  time.


                                      - 5 -
<PAGE>
INTERNATIONAL DEVELOPMENT CORP.
  AND SUBSIDIARY
(A NEVADA CORPORATION)
BUFFALO, NEW YORK


NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS
================================================================================

NOTE  D - MARKETING  RIGHTS
          On  October  12, 2005, the Company entered into an Exclusive Licensing
          Agreement  with  Wataire Industries, Inc., an unrelated party, for the
          exclusive  right  to  distribute  and  sell the technology-based water
          generation  and  purification  products of Wataire Industries, Inc. in
          the  United  States  of  America,  for  an  indefinite  period.  In
          consideration of the Exclusive Licensing Agreement, the Company issued
          15,000,000  shares  of  Preferred  Stock,  Class C, valued at $15,000.

NOTE  E - GOING  CONCERN
          The Company's consolidated financial statements have been presented on
          the  basis  that  it  is  a  going  concern,  which  contemplates  the
          realization  of  assets  and  the  satisfaction  of liabilities in the
          normal  course  of business. The Company has reported recurring losses
          from  operations.  As  a  result,  there  is an accumulated deficit of
          $3,168,515  at  February  28,  2006.

          The  Company's  continued  existence  is dependent upon its ability to
          raise  capital  or  to  successfully  market  and  sell  the  Wataire
          Industries,  Inc.'s products. The consolidated financial statements do
          not include any adjustments that might be necessary should the Company
          be  unable  to  continue  as  a  going  concern.

NOTE  F - RECENTLY  ISSUED  ACCOUNTING  STANDARDS
          In  February  2006,  the Financial Accounting Standards Board ("FASB")
          issued  Statement  of  Financial Accounting Standard ("SFAS") No. 155,
          "Accounting for Certain Hybrid Financial Instruments - an amendment of
          FASB Statement No. 133 and 140" ("SFAS 155"). SFAS 155 resolves issues
          addressed  in  Statement 133 Implementation Issue No. D1, "Application
          of  Statement  133  to  Beneficial  Interest  in Securitized Financial
          Assets."  SFAS 155 is effective for all financial instruments acquired
          or  issued  after  the  beginning of the first fiscal year that begins
          after  September  15,  2006. As such, the Company is required to adopt
          these  provisions at the beginning of the fiscal year ended August 31,
          2008.  The  Company  is currently evaluating the impact of SFAS 155 on
          its  consolidated  financial  instruments.

          In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing
          of  Financial  Assets - an amendment of FASB Statement No. 140" ("SFAS
          156").  SFAS  156  amends  FASB  Statement No. 140 with respect to the
          accounting  for  separately  recognized servicing assets and servicing
          liabilities.  SFAS  156  requires  all separately recognized servicing
          assets  and  servicing  liabilities  to  be initially measured at fair
          value,  if practical. SFAS 156 is effective as of the beginning of the
          first  fiscal  year that begins after September 15, 2006. As such, the
          Company  is required to adopt these provisions at the beginning of the
          fiscal year ended August 31, 2008. The Company is currently evaluating
          the  impact  of  SFAS  156  on  its consolidated financial statements.


                                      - 6 -