UNITED STATES
	SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C. 20549

	FORM 10-Q

[X]	Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2001 or

[ ]	Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from ________________to_____________

Commission file number 0-23577

	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP

	(Exact name of registrant as specified in its charter)


		Delaware						     13-3461507
(State or other jurisdiction of		   	  (I.R.S. Employer
incorporation or organization)			      Identification No.)


c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY    	  10048
(Address of principal executive offices)	  	     (Zip Code)


Registrant's telephone number, including area code (212) 392-5454




(Former name, former address, and former fiscal year, if changed
since last report)


Indicate by check-mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.


Yes    X       	No___________





<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	June 30, 2001
<caption>

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
	Statements of Financial Condition as of
	June 30, 2001 (Unaudited) and December 31, 2000...........2

	Statements of Operations for the Quarters Ended
	June 30, 2001 and 2000 (Unaudited)........................3

	Statements of Operations for the Six Months Ended
	June 30, 2001 and 2000 (Unaudited)........................4

	Statements of Changes in Partners' Capital for the
	Six Months Ended June 30, 2001 and 2000 (Unaudited).......5

	Statements of Cash Flows for the Six Months Ended
	June 30, 2001 and 2000 (Unaudited)........................6

	Notes to Financial Statements (Unaudited)..............7-12

Item 2.	Management's Discussion and Analysis of Financial
			Condition and Results of Operations..............13-22

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk .....................................22-34


PART II. OTHER INFORMATION

Item 1.		Legal Proceedings...................................35

Item 6.	Exhibits and Reports on Form 8-K....................35





</table>




<page>
<table>
PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF FINANCIAL CONDITION

<caption>

	June 30,	December 31,
	   2001   	       2000
	$	$
	(Unaudited)
ASSETS

	<c>	<c>
Equity in futures interests trading accounts:
	Cash	78,487,615  	 79,043,824

	Net unrealized gain on open contracts (MS & Co.)	5,293,404	     11,335,616
	Net unrealized gain (loss) on open contracts (MSIL)	    1,112,116	                        (1,737,408)

	Total net unrealized gain on open contracts	    6,405,520	    9,598,208

	     Total Trading Equity	84,893,135  	 88,642,032

Interest receivable (Morgan Stanley DW)	217,502  	330,493
Due from Morgan Stanley DW	______-___	         96,981

	     Total Assets	   85,110,637	   89,069,506

LIABILITIES AND PARTNERS' CAPITAL

Liabilities

	Redemptions payable	788,881  	2,023,188
	Accrued management fees (DWFCM)	217,079  	185,542
	Administrative expenses payable	     158,660 	      114,810

	     Total Liabilities	   1,164,620  	  2,323,540

Partners' Capital

	Limited Partners (68,013.844 and
	     72,136.471 Units, respectively) 	81,923,303	  84,772,523
	General Partner (1,679.285 Units)	    2,022,714 	    1,973,443

	     Total Partners' Capital	   83,946,017	   86,745,966

Total Liabilities and Partners' Capital	   85,110,637	   89,069,506


NET ASSET VALUE PER UNIT	       1,204.51     	       1,175.17
<fn>

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

</table>
<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF OPERATIONS
(Unaudited)

<caption>




	    For the Quarters Ended June 30,

                                                                                                           2001   	   2000
                                                      $	                                      $

REVENUES

			<c>		<c>
	Trading profit (loss):
		Realized	  (586,741)	                 12,453,197
		Net change in unrealized	   (1,031,724)		                (9,824,031)

			Total Trading Results	(1,618,465)	                   2,629,166

	Interest income (Morgan Stanley DW)                                        688,527		      994,054

			Total                                                                                (929,938)	      	   3,623,220


EXPENSES

	Brokerage commissions (Morgan Stanley DW)                       1,280,123	   	1,180,558
Management fees (DWFCM)                                                       645,456	  	 650,848
Transaction fees and costs                                                            67,684	  	73,713
Administrative expenses                                                                30,000 	                         37,000

		Total                                                                               2,023,263		   1,942,119


NET INCOME (LOSS)	   (2,953,201)		  1,681,101


NET INCOME (LOSS) ALLOCATION

	  Limited Partners	(2,884,343)		1,637,805
	  General Partner	(68,858)		43,296


NET INCOME (LOSS) PER UNIT

	  Limited Partners	(41.00)		18.99
	  General Partner	(41.00)		18.99



<fn>
	The accompanying notes are an integral part
	of these financial statements.
</table>
<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF OPERATIONS
(Unaudited)



<caption>

	     For the Six Months Ended June 30,


                                                                                                             2001   	   2000
                                                                                                               $	   $

REVENUES

			<c>		<c>
	Trading profit (loss):
		Realized	7,354,179		12,219,727
 		Net change in unrealized                                                  (3,192,688)		                (5,428,635)

			Total Trading Results	4,161,491		6,791,092

	Interest income (Morgan Stanley DW)	   1,629,425		     1,921,410

			Total	   5,790,916		     8,712,502


EXPENSES

	Brokerage commissions (Morgan Stanley DW)	2,258,197        	2,692,465
 	Management fees (DWFCM)	1,274,803		1,317,133
	Transaction fees and costs	115,140		       189,317
	Administrative expenses	      66,000		       74,000

			Total	   3,714,140		   4,272,915


NET INCOME                              2,076,776 	                  4,439,587


NET INCOME ALLOCATION

	   Limited Partners	2,027,505		4,325,601
	   General Partner	49,271		113,986


NET INCOME PER UNIT

	   Limited Partners	29.34		50.01
	   General Partner	29.34		50.01

<fn>

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

</table>
<page>
<table>

	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
	For the Six Months Ended June 30, 2001 and 2000
	(Unaudited)

<caption>



	 Units of
	 Partnership	Limited	General
                  Interest              Partners	            Partner                    Total
     		                         $                        $                               $


	<c>		<c>		<c>		<c>
Partners' Capital,
	December 31, 1999                                   95,144.619          89,453,674          2,195,549 		91,649,223

Net Income                                                                -			4,325,601		113,986		4,439,587

Redemptions	         (12,963.421)		      (12,208,903)    	       (607,962)	       	  (12,816,865)

Partners' Capital,
	June 30, 2000                                           82,181.198           81,570,372 	  	 1,701,573 	           83,271,945




Partners' Capital,
	December 31, 2000                                  73,815.756	           84,772,523		          1,973,443           86,745,966

Net Income                                                                -			2,027,505		 49,271	            2,076,776

Redemptions	         (4,122.627)          (4,876,725)       -  	        (4,876,725)

Partners' Capital,
	June 30, 2001                                           69,693.129  	         81,923,303 		 2,022,714 	          83,946,017





<fn>








The accompanying notes are an integral part
	of these financial statements.
</table>


<page>
<table>
	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF CASH FLOWS
(Unaudited)



<caption>

	    For the Six Months Ended June 30,

	      2001     	      2000
	    $	      $
CASH FLOWS FROM OPERATING ACTIVITIES

			<c>		<c>
Net income	2,076,776		4,439,587

Noncash item included in net income:
	   Net change in unrealized                                                          3,192,688                  5,428,635

(Increase) decrease in operating assets:
   Interest receivable (Morgan Stanley DW)                                    112,991		                    (22,483)
	   Due from Morgan Stanley DW                                                       96,981                         -

Increase (decrease) in operating liabilities:
	   Accrued management fees (DWFCM)                                          	31,537       	              (14,006)
	   Administrative expenses payable                                           	43,850 	                       2,208

Net cash provided by operating activities	  5,554,823	                  9,833,941


CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in redemptions payable              (1,234,307)                   (54,693)
Redemptions of Units                                                                       (4,876,725)            (12,816,865)

Net cash used for financing activities                                               (6,111,032)            (12,871,558)

Net decrease in cash                                                                           (556,209)              (3,037,617)

Balance at beginning of period	                                                        79,043,824              92,093,924

Balance at end of period	                   78,487,615	      89,056,307




<fn>





	The accompanying notes are an integral part
	of these financial statements.
</table>


-	<page>
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
June 30, 2001
 (UNAUDITED)
The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the results of operations and financial condition
of Dean Witter Diversified Futures Fund Limited Partnership (the
"Partnership"). The financial statements and condensed notes
herein should be read in conjunction with the Partnership's
December 31, 2000 Annual Report on Form 10-K.

1. Organization
Dean Witter Diversified Futures Fund Limited Partnership is a
Delaware limited partnership organized to engage primarily in the
speculative trading of futures contracts and forward contracts on
physical commodities and other commodity interests, including
foreign currencies, financial instruments, metals, energy products
and agriculturals.

The general partner for the Partnership is Demeter Management
Corporation ("Demeter").  The non-clearing commodity broker is
Morgan Stanley DW Inc. ("Morgan Stanley DW").  Dean Witter
Reynolds Inc. changed its name to Morgan Stanley DW Inc.,
effective April 2, 2001.  The clearing commodity brokers are
Morgan Stanley & Co., Inc. ("MS & Co.") and Morgan Stanley & Co.

<page>
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

International Limited ("MSIL").  The trading manager is Dean
Witter Futures & Currency Management Inc.  ("DWFCM" or the
"Trading Manager").  Demeter, Morgan Stanley DW, MS & Co., MSIL
and DWFCM are wholly-owned subsidiaries of Morgan Stanley Dean
Witter & Co.

2. Related Party Transactions
The Partnership's cash is on deposit with Morgan Stanley DW, MS &
Co. and MSIL in futures and forwards trading accounts to meet
margin requirements as needed. Morgan Stanley DW pays interest on
these funds based on a prevailing rate on U.S. Treasury bills. The
Partnership pays brokerage commissions to Morgan Stanley DW.
Management fees and incentive fees (if any) incurred by the
Partnership are paid to DWFCM.

3.  Financial Instruments
The Partnership trades futures contracts and forward contracts on
physical commodities and other commodity interests, including
foreign currencies, financial instruments, metals, energy products
and agriculturals.  Futures and forwards represent contracts for




<page>
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

delayed delivery of an instrument at a specified date and price.
Risk arises from changes in the value of these contracts and the
potential inability of counterparties to perform under the terms
of the contracts.  There are numerous factors which may
significantly influence the market value of these contracts,
including interest rate volatility.

The Partnership accounts for its derivative investments in
accordance with the provisions of Statement of Financial
Accounting Standard No. 133, "Accounting for Derivative
Instruments and Hedging Activities" ("SFAS No. 133"). SFAS No.
133 defines a derivative as a financial instrument or other
contract that has all three of the following characteristics:

1)	One or more underlying notional amounts or payment
provisions;
2)	Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3)	Terms require or permit net settlement.




<page>
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Generally derivatives include futures, forward, swaps or option
contracts and other financial instruments with similar
characteristics such as caps, floors and collars.

The net unrealized gains on open contracts reported as a component
of "Equity in future interests trading accounts" on the statements
of financial condition and longest contract maturity were as
follows:

                    Net Unrealized Gains on Open
                             Contracts                    Longest Maturity

   	            Exchange-  Off-Exchange-            Exchange-  Off-Exchange-
                   Traded      Traded       Total      Traded       Traded
Date              Contracts   Contracts   Contracts   Contracts    Contracts
                       $          $		    $

June 30, 2001      5,521,240     884,280   6,405,520    Dec. 2001    Oct. 2001

December 31, 2000  6,223,198	 3,375,010	9,598,208	 June 2002	  March 2001



The Partnership has credit risk associated with counterparty non-
performance.  The credit risk associated with the instruments in
which the Partnership is involved is limited to the amounts
reflected in the Partnership's statements of financial condition.






<page>
DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership also has credit risk because Morgan Stanley DW,
MS & Co. and MSIL act as the futures commission merchants or the
counterparties with respect to most of the Partnership's assets.
Exchange-traded futures contracts are marked to market on a daily
basis, with variations in value settled on a daily basis.  Morgan
Stanley DW, MS & Co. and MSIL, each as a futures commission
merchant for the Partnership's exchange-traded futures contracts,
are required, pursuant to regulations of the Commodity Futures
Trading Commission ("CFTC"), to segregate from their own assets,
and for the sole benefit of their commodity customers, all funds
held by them with respect to exchange-traded futures contracts,
including an amount equal to the net unrealized gain on all open
futures contracts, which funds, in the aggregate, totaled
$84,008,855 and $85,267,022 at June 30, 2001 and December 31,
2000, respectively. With respect to the Partnership's off-
exchange-traded forward currency contracts, there are no daily
settlements of variations in value nor is there any requirement
that an amount equal to the net unrealized gain on open forward
contracts be segregated.  With respect to those off-exchange-
traded forward currency contracts, the Partnership is at risk to
the ability of MS & Co., the sole counterparty on all such


                                                            <page>

DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
             NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

contracts, to perform. The Partnership has a netting agreement
with MS & Co.  This agreement, which seeks to reduce both the
Partnership's and MS & Co.'s exposure on off-exchange-traded
forward currency contracts, should materially decrease the
Partnership's credit risk in the event of MS & Co.'s bankruptcy or
insolvency.
















<page>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS

Liquidity - The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker and MS & Co. and MSIL as
clearing brokers in separate futures and forwards accounts
established for the Trading Manager, which assets are used as
margin to engage in trading. The assets are held in either non-
interest-bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds.  The Partnership's assets held by the commodity
brokers may be used as margin solely for the Partnership's
trading.  Since the Partnership's sole purpose is to trade in
futures and forwards, it is expected that the Partnership will
continue to own such liquid assets for margin purposes.

The Partnership's investment in futures and forwards may, from
time to time, be illiquid.  Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as "daily price fluctuations limits" or "daily limits".  Trades
may not be executed at prices beyond the daily limit.  If the
price for a particular futures contract has increased or decreased
by an amount equal to the daily limit, positions in that futures
contract can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit.  Futures prices
have occasionally moved the daily limit for several consecutive

<page>
days with little or no trading.  These market conditions could
prevent the Partnership from promptly liquidating its futures
contracts and result in restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies.  The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses.  Either of these market conditions could
result in restrictions on redemptions.

The Partnership has never had illiquidity affect a material
portion of its assets.

Capital Resources. The Partnership does not have, or expect to
have, any capital assets.  Redemptions of additional units of
limited partnership interest ("Unit(s)") in the future will affect
the amount of funds available for investment in futures and
forwards in subsequent periods.  It is not possible to estimate
the amount and therefore the impact of future redemptions of
Units.



<page>
Results of Operations
General.  The Partnership's results depend on its Trading Manager
and the ability of the Trading Manager's trading programs to take
advantage of price movements or other profit opportunities in the
futures and forwards markets.  The following presents a summary of
the Partnership's operations for the three and six month periods
ended June 30, 2001 and 2000, and a general discussion of its
trading activities during each period.  It is important to note,
however, that the Trading Manager trades in various markets at
different times and that prior activity in a particular market
does not mean that such market will be actively traded by the
Trading Manager or will be profitable in the future. Consequently,
the results of operations of the Partnership are difficult to
discuss other than in the context of its Trading Manager's trading
activities on behalf of the Partnership as a whole and how the
Partnership has performed in the past.

For the Quarter and Six Months Ended June 30, 2001
For the quarter ended June 30, 2001, the Partnership recorded
total trading losses, net of interest income, of $929,938 and
posted a decrease in net asset value per Unit.  The most
significant losses of approximately 2.8% were experienced
primarily during June in the global interest rate futures markets
from short U.S. and German interest rate futures positions as
prices jumped higher on weaker-than-expected U.S. and European

<page>
economic data that set the stage for possible interest rate cuts.
In the metals markets, losses of approximately 2.4% were incurred
primarily during April from short aluminum futures positions as
prices rose on technically-based buying and production concerns.
In the global stock index futures markets, losses of
approximately 2.0% were recorded primarily during late May and
June from long positions in S&P 500 Index futures as global stock
prices declined on worries that the U.S. economic slowdown will
ignite a global downturn and corporate earnings will suffer.  In
the currency markets, losses of approximately 0.1% were recorded
primarily during April and May from short positions in the
Japanese yen as the value of the yen reversed higher versus the
U.S. dollar following a surprise interest rate cut by the U.S.
Federal Reserve and on optimism that the Japanese government
would unveil an emergency package to stimulate that country's
ailing economy.  Offsetting currency gains were recorded during
May from short positions in the euro as its value weakened
relative to the British pound amid pessimism about European
growth prospects.  These losses were partially offset by gains of
approximately 3.4% recorded in the energy markets primarily
during May and June from short natural gas futures positions as
prices declined on reports of growing inventories and a lack of
demand throughout most of the United States.  In soft
commodities, gains of approximately 0.9% were recorded throughout
a majority of the quarter from short cotton futures positions as
prices moved lower on weak export sales and low demand.  Total
<page>
expenses for the three months ended June 30, 2001 were
$2,023,263, resulting in a net loss of $2,953,201.  The net asset
value of a Unit decreased from $1,245.51 at March 31, 2001 to
$1,204.51 at June 30, 2001.

For the six months ended June 30, 2001, the Partnership recorded
total trading revenues, including interest income, of $5,790,916
and posted an increase in net asset value per Unit.  The most
significant gains of approximately 5.1% were recorded throughout
a majority of the first quarter in the global interest rate
futures markets from long positions in Japanese government bond
futures as prices moved higher on concerns regarding that
country's economy.  Additional gains were recorded from short
positions in Australian interest rate futures as prices moved
lower amid the weakening of the Australian dollar.  In soft
commodities, gains of approximately 3.8% were recorded throughout
a majority of the first and second quarters from short cotton
futures positions as prices moved lower on weak export sales and
low demand.  In the currency markets, gains of approximately 1.6%
were recorded during May from short positions in the euro as its
value weakened relative to the British pound amid pessimism about
European economic growth prospects.  These gains were partially
offset by losses of approximately 3.4% recorded in the metals
markets primarily during February from long positions in aluminum
futures as prices moved lower, pressured by the decline in the
U.S. equity market and the subsequent concerns over demand.
<page>
Additional losses were incurred during April from short aluminum
futures positions as prices rose on technically-based buying and
production concerns.  In the energy markets, losses of
approximately 3.4% were recorded throughout the first six months
of the year from crude oil futures and its related products as a
result of volatility in oil prices due to a continually changing
outlook for supply, production and demand.  In the global stock
index futures markets, losses of approximately 1.4% were recorded
primarily during late May and June from long positions in S&P 500
Index futures as global stock prices declined on worries that the
U.S. economic slowdown will ignite a global downturn. Total
expenses for the six months ended June 30, 2001 were $3,714,140,
resulting in net income of $2,076,776.  The net asset value of a
Unit increased from $1,175.17 at December 31, 2000 to $1,204.51
at June 30, 2001.

For the Quarter and Six Months Ended June 30, 2000
For the quarter ended June 30, 2000, the Partnership recorded
total trading revenues, including interest income, of $3,623,220
and posted an increase in net asset value per Unit.  The most
significant gains of approximately 10.2% were recorded in the
energy markets primarily during May from long positions in
natural gas futures as prices continued their upward trend on
fears that inventory levels would remain low and that U.S. demand
will outstrip production this summer, when inventories are

<page>
typically refilled for the winter.  Additional gains were
recorded during May and June from long futures positions in crude
oil and its related products as the previous upward movement in
oil prices re-emerged amid rising concerns regarding supplies and
production levels.  In the agricultural markets, gains of
approximately 1.1% were recorded primarily during June from short
corn futures positions as corn prices were pressured lower by a
damp weather forecast in the U.S. Midwest.  In soft commodities,
gains of approximately 0.4% were recorded primarily during June
from short coffee futures positions as prices decreased amid
continued pressure from bearish technical factors and large
warehouse supplies.  These gains were partially offset by losses
of approximately 6.5% recorded throughout a majority of the
quarter primarily from long positions in U.S. interest rate
futures as prices declined on inflation fears provoked by
stronger-than-forecasted U.S. economic data.  Losses were also
recorded throughout the majority of the quarter from short
positions in German bond futures as prices were pushed higher by
the rise in U.S. prices.  In the global stock index futures
markets, losses of approximately 1.8% were incurred primarily
during April from long positions in S&P 500 Index futures as fears
of inflation negatively impacted domestic equity prices.  In the
currency markets, losses of approximately 1.2% were experienced
primarily during April and early May from long positions in the
Japanese yen as its value weakened relative to the U.S. dollar
amid fears of an additional Bank of Japan intervention and as
<page>
Japanese consumer confidence remained sluggish.  In the metals
markets, losses of approximately 0.5% were recorded primarily
during June from short aluminum futures positions as prices
increased on consumer and speculative buying. Total expenses for
the three months ended June 30, 2000 were $1,942,119, resulting in
net income of $1,681,101.  The net asset value of a Unit increased
from $994.28 at March 31, 2000 to $1,013.27 at June 30, 2000.

For the six months ended June 30, 2000, the Partnership recorded
total trading revenues, including interest income, of $8,712,502
and posted an increase in net asset value per Unit.  The most
significant gains of approximately 15.1% were recorded in the
energy markets primarily during May from long positions in
natural gas futures as prices continued their upward trend on
fears that inventory levels would remain low and that U.S. demand
will outstrip production this summer, when inventories are
typically refilled for the winter.  Additional gains were
recorded during February from long positions in crude oil futures
as prices increased due to a combination of cold weather,
declining inventories and increasing demand.  Oil prices also
increased during June in reaction to the dismissal by OPEC of a
price setting mechanism and a promise of a modest production
increase. In the currency markets, gains of approximately 1.2%
were recorded primarily during January from short positions in
the Swedish krona, the euro and the Swiss franc as the value of
these European currencies weakened relative to the U.S. dollar,
<page>
hurt by skepticism about Europe's economic outlook and lack of
support from European officials.  During April, profits were
recorded from short positions in the euro as the value of the
European common currency dropped to record lows versus the U.S.
dollar and British pound.  In the agricultural markets, gains of
approximately 0.9% were recorded primarily during June from short
corn futures positions as corn prices were pressured lower by a
damp weather forecast in the U.S. Midwest.  These gains were
partially offset by losses of approximately 7.6% recorded
throughout a majority of the second quarter from long positions
in U.S. interest rate futures as prices declined on inflation
fears provoked by stronger-than-forecasted U.S. economic data.
Losses were also recorded throughout the majority of the second
quarter from short positions in German bond futures as prices
were pushed higher by the rise in U.S. prices.  In the global
stock index futures markets, losses of approximately 3.3% were
incurred throughout a majority of the first quarter and during
April from long positions in S&P 500 Index futures as domestic
stock prices declined due to volatility in the technology sector
and fears that the Federal Reserve will be forced to take
aggressive action to slow the economy.  In the metals markets,
losses of approximately 2.0% were experienced primarily from long
positions in base metal futures as a previous upward price trend
reversed sharply lower during February in response to interest
rate hikes across the globe.  During June, smaller losses were

<page>
recorded from short aluminum futures positions as prices
increased on consumer and speculative buying.  Total expenses for
the six months ended June 30, 2000 were $4,272,915, resulting in
net income of $4,439,587.  The net asset value of a Unit
increased from $963.26 at December 31, 1999 to $1,013.27 at June
30, 2000.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures and forwards.  The market-sensitive
instruments held by the Partnership are acquired for speculative
trading purposes only and, as a result, all or substantially all
of the Partnership's assets are at risk of trading loss.  Unlike
an operating company, the risk of market-sensitive instruments is
central, not incidental, to the Partnership's main business
activities.

The futures and forwards traded by the Partnership involve
varying degrees of related market risk.  Market risk is often
dependent upon changes in the level or volatility of interest
rates, exchange rates, and prices of financial instruments and
commodities. Fluctuations in market risk based upon these factors
result in frequent changes in the fair value of the Partnership's
open positions, and consequently, in its earnings and cash flow.

<page>
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification among the
                              - 22 -
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets.  At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.

The Partnership's past performance is not necessarily indicative
of its future results.  Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading.  The Partnership's speculative trading may
cause future losses and volatility (i.e. "risk of ruin") that far
exceed the Partnership's experience to date or any reasonable
expectations based upon historical changes in market value.

Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the Partnership's
market risk exposures contain "forward-looking statements" within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). All
quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.
<page>
The Partnership accounts for open positions using mark-to-market
accounting principles.  Any loss in the market value of the
Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and its
cash flow.  Profits and losses on open positions of exchange-
traded futures and forwards are settled daily through variation
margin.

The Partnership's risk exposure in the market sectors traded by
the Trading Manager is estimated below in terms of Value at Risk
("VaR"). The VaR model used by the Partnership includes many
variables that could change the market value of the Partnership's
trading portfolio.  The Partnership estimates VaR using a model
based upon historical simulation with a confidence level of 99%.
Historical simulation involves constructing a distribution of
hypothetical daily changes in the value of a trading portfolio.
The VaR model takes into account linear exposures to price and
interest rate risk.  Market risks that are incorporated in the
VaR model include equity and commodity prices, interest rates,
foreign exchange rates, and correlation among these variables.
The hypothetical changes in portfolio value are based on daily
percentage changes observed in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive.  The historical observation period of the Partner-
ship's VaR is approximately four years.  The one-day 99%
confidence level of the Partnership's VaR corresponds to the
<page>
negative change in portfolio value that, based on observed market
risk factors, would have been exceeded once in 100 trading days.

VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve.  Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Manager in its daily risk management
activities.

The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total net assets
by primary market risk category at June 30, 2001 and 2000. At
June 30, 2001 and 2000, the Partnership's total capitalization
was approximately $84 million and $83 million, respectively.

     Primary Market      	     June 30, 2001         June 30, 2000
     Risk Category	  	    Value at Risk	      Value at Risk

Currency				  (2.94)%				(1.45)%
Commodity  			  (2.29)				(1.87)
Interest Rate			  (1.07)		  	     (1.65)
Equity				  (0.07)				(0.06)
Aggregate Value at Risk	  (3.88)%				(2.75)%


<page>
Aggregate Value at Risk represents the aggregate VaR of all the
Partnership's open positions and not the sum of the VaR of the
individual market categories listed above.  Aggregate VaR will be
lower as it takes into account correlation among different
positions and categories.

The table above represents the VaR of the Partnership's open
positions at June 30, 2001 and 2000 only and is not necessarily
representative of either the historic or future risk of an
investment in the Partnership. Because the Partnership's only
business is the speculative trading of futures and forwards, the
composition of its trading portfolio can change significantly
over any given time period, or even within a single trading day.
Any changes in open positions could positively or negatively
materially impact market risk as measured by VaR.

The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR, as a percentage of total
net assets for the four quarterly reporting periods from July 1,
2000 through June 30, 2001.






<page>
Primary Market Risk Category      High        Low        Average
Currency	(2.94)%	(1.66)%	(2.49)%
Commodity     	(2.47)	(1.14)	(1.90)
Interest Rate    	(2.89)	(0.48)	(1.65)
Equity    	(0.13)	   -	(2.08)
Aggregate Value at Risk  	(3.88)%	(3.38)%	(3.64)%

Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements.  Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by the
Partnership to typically be many times the total capitalization of
the Partnership.  The value of the Partnership's open positions
thus creates a "risk of ruin" not typically found in other
investments.  The relative size of the positions held may cause
the Partnership to incur losses greatly in excess of VaR within a
short period of time, given the effects of the leverage employed
and market volatility.  The VaR tables above, as well as the past
performance of the Partnership, give no indication of such "risk
of ruin". In addition, VaR risk measures should be viewed in light
of the methodology's limitations, which include the following:
?	past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
<page>
?	changes in portfolio value caused by market movements may
differ from those of the VaR model;
?	VaR results reflect past trading positions while future risk
depends on future positions;
?	VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
?	the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

The VaR tables above present the results of the Partnership's VaR
for each of the Partnership's market risk exposures and on an
aggregate basis at June 30, 2001 and for the end of the four
quarterly reporting periods from July 1, 2000 through June 30,
2001.  Since VaR is based on historical data, VaR should not be
viewed as predictive of the Partnership's future financial
performance or its ability to manage or monitor risk.  There can
be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated above or
that such losses will not occur more than once in 100 trading
days.



<page>
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin.  These balances and any market
risk they may represent are immaterial.

At June 30, 2001, the Partnership's cash balance at Morgan Stanley
DW was approximately 89% of its total net asset value.  A decline
in short-term interest rates will result in a decline in the
Partnership's cash management income. This cash flow risk is not
considered material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments, in relation to the Partnership's net
assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures - constitute
forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act.

<page>
The Partnership's primary market risk exposures as well as the
strategies used and to be used by Demeter and the Trading Manager
for managing such exposures are subject to numerous uncertainties,
contingencies and risks, any one of which could cause the actual
results of the Partnership's risk controls to differ materially
from the objectives of such strategies. Government interventions,
defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in
historical price relationships, an influx of new market
participants, increased regulation and many other factors could
result in material losses as well as in material changes to the
risk exposures and the risk management strategies of the
Partnership.  Investors must be prepared to lose all or
substantially all of their investment in the Partnership.

The following were the primary trading risk exposures of the
Partnership at June 30, 2001, by market sector.  It may be
anticipated however, that these market exposures will vary
materially over time.

Currency.  The Partnership's primary market exposure at June 30,
2001 was to exchange rate fluctuations, primarily fluctuations
which disrupt the historical pricing relationships between
different currencies and currency pairs.  Interest rate changes
as well as political and general economic conditions influence
these fluctuations.  The Partnership trades in a large number of
<page>
currencies, including cross-rates - i.e., positions between two
currencies other than the U.S. dollar.  At June 30, 2001, the
Partnership's major exposures were to outright U.S. dollar
positions.  Outright positions consist of the U.S. dollar vs.
other currencies.  These other currencies include major and minor
currencies.  Demeter does not anticipate that the risk profile of
the Partnership's currency sector will change significantly in
the future.  The currency trading VaR figure includes foreign
margin amounts converted into U.S. dollars with an incremental
adjustment to reflect the exchange rate risk inherent to the
dollar-based Partnership in expressing VaR in a functional
currency other than dollars.

Commodity
Energy.  The next largest market exposure of the Partnership
at June 30, 2001 was in the energy sector.  The
Partnership's energy exposure was shared primarily by
futures contracts in the crude oil and natural gas markets.
Price movements in these markets result from political
developments in the Middle East, weather patterns, and other
economic fundamentals.  It is possible that volatility will
remain high.  Significant profits and losses, which have
been experienced in the past, are expected to continue to be
experienced in this market.  Natural gas has exhibited
volatility in prices resulting from weather patterns and

<page>
supply and demand factors and may continue in this choppy
pattern.

Soft Commodities and Agriculturals.  At June 30, 2001, the
Partnership had exposure in the markets that comprise these
sectors. Most of the exposure, however, was in the corn,
cocoa, cotton and coffee markets.  Supply and demand
inequalities, severe weather disruption and market
expectations affect price movements in these markets.

Metals.  The Partnership's metals market exposures at June
30, 2001 were primarily to fluctuations in the price of base
metals.  During periods of volatility, base metals will
affect performance dramatically.  The Trading Manager will
from time to time trade precious metals, such as gold.
Demeter anticipates that the base metals will remain the
primary metals market exposure of the Partnership.

Interest Rate.  At June 30, 2001, the Partnership's exposure in
the interest rate market complex was primarily spread across the
U.S., Australian and Japanese interest rate sectors.  Interest
rate movements directly affect the price of the sovereign bond
futures positions held by the Partnership and indirectly affect
the value of its stock index and currency positions.  Interest
rate movements in one country as well as relative interest rate
movements between countries materially impact the Partnership's
<page>
profitability.  The Partnership's primary interest rate exposure
was generally to interest rate fluctuations in the United States
and the other G-7 countries.  The G-7 countries consist of
France, U.S., Britain, Germany, Japan, Italy and Canada.
However, the Partnership also takes futures positions in the
government debt of smaller nations - e.g. Australia.  Demeter
anticipates that G-7 interest rates will remain the primary
interest rate exposure of the Partnership for the foreseeable
future.  The changes in interest rates which have the most effect
on the Partnership are changes in long-term, as opposed to short-
term rates.  Most of the speculative futures positions held by
the Partnership are in medium- to long-term instruments.
Consequently, even a material change in short-term rates would
have little effect on the Partnership, were the medium- to long-
term rates to remain steady.

Equity.  At June 30, 2001, the Partnership's equity exposure was
in the Nikkei (Japan) stock index. The stock index futures traded
by the Partnership are by law limited to futures on broadly-based
indices.  The Partnership is primarily exposed to the risk of
adverse price trends or static markets in the U.S. and Japanese
stock indices.  Static markets would not cause major market
changes but would make it difficult for the Partnership to avoid
being "whipsawed" into numerous small losses.

<page>
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership at June 30, 2001:

Foreign Currency Balances.	The Partnership's primary
foreign currency balances at June 30, 2001 were in euros and
British pounds.  The Partnership controls the non-trading
risk of these balances by regularly converting these
balances back into dollars upon liquidation of the
respective positions.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Manager, separately, attempt to
manage the risk of the Partnership's open positions in essentially
the same manner in all market categories traded. Demeter attempts
to manage market exposure by diversifying the Partnership's assets
among different market sectors and trading approaches, and
monitoring the performance of the Trading Manager daily. In
addition, the Trading Manager establishes diversification
guidelines, often set in terms of the maximum margin to be
committed to positions in any one market sector or market-
sensitive instrument.

Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash.  Cash is the only Partnership investment
directed by Demeter, rather than the Trading Manager.
<page>
PART II.   OTHER INFORMATION

Item 1.  LEGAL PROCEEDINGS
In April 2001 the Appellate Division of New York State dismissed
the class action previously disclosed in the Partnership's Form
10-K for the year ended December 31, 2000.  Because plaintiffs
did not exercise their right to appeal any further, this
dismissal constituted a final resolution of the case.

Item 6.	EXHIBITS AND REPORTS ON FORM 8-K

(A)	Exhibits

3.01 Amended and Restated Limited Partnership Agreement of the
Partnership, dated as of June 30, 1995, is incorporated by
reference to Exhibit 3.01 of the Partnership's Registration
Statement on Form S-1 (File No. 33-90360).

10.01	Amended and Restated Management Agreement among the
Partnership, Demeter and DWFCM, dated as of August 31,
1995, is incorporated by reference to Exhibit 10.02 of the
Partnership's Registration Statement on Form S-1 (File No.
33-90360).

10.02	Amended and Restated Customer Agreement, dated as of
December 1, 1997, between the Partnership and Dean Witter
Reynolds Inc. is incorporated by reference to Exhibit 10.02
of the Partnership's Form 10-K (File No. 0-23577) for the
year ended December 31, 1998.

10.03	Customer Agreement, dated as of December 1, 1997, among the
Partnership, Carr Futures, Inc., and Dean Witter Reynolds
Inc. is incorporated by reference to exhibit 10.03 of the
Partnership's Form 10-K (File No. 0-23577) for the year
ended December 31, 1998.

10.04	International Foreign Exchange Master Agreement, dated as of
August 1, 1997, between the Partnership and Carr Futures,
Inc. is incorporated by reference to exhibit 10.04 of the
Partnership's Form 10-K (File No. 0-23577) for the year
ended December 31, 1998.

(B)	Reports on Form 8-K. - None.

<page>







	SIGNATURE



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




                       	Dean Witter Diversified Futures
                           	 Fund Limited Partnership
                            	 (Registrant)

                            	By:	Demeter Management Corporation
		(General Partner)

August 14, 2001                By:/s/Raymond E. Koch
                                     Raymond E. Koch
                                     Chief Financial Officer




The General Partner which signed the above is the only party
authorized to act for the Registrant.  The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.