FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


For Quarter ended                      September 30, 1999
                      ------------------------------------------------------
Commission file number                       0-11068
                      ------------------------------------------------------


                         SIERRA PACIFIC DEVELOPMENT FUND
                             (A LIMITED PARTNERSHIP)


      State of California                             95-3643693
-----------------------------------    ----------------------------------------
(State or other jurisdiction of         (I.R.S. Employer Identification Number)
 incorporation or organizaiton)


       5850 San Felipe, Suite 450
              Houston, TX                                  77057
-----------------------------------    ----------------------------------------
(Address of principal executive offices)                 (Zip Code)


Registrant's telephone number,
including area code:                                  (713) 706-6271
                                       ----------------------------------------


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>
                         PART I - FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

The following financial statements are submitted in the next pages:

                                                                      PAGE
                                                                     NUMBER
                                                                     ------
Consolidated Balance Sheets - September 30, 1999 and
December 31, 1998 ...................................................   5

Consolidated Statements of Operations - For the Nine
Months Ended September 30, 1999 and 1998 and For the
Three Months Ended September 30, 1999 and 1998 ......................   6

Consolidated Statements of Changes in Partners'
Equity - From February 13, 1981 (inception of
Partnership) to December 31, 1998 and For the Nine
Months Ended September 30, 1999 .....................................   7

Consolidated Statements of Cash Flows - For the Nine
Months Ended September 30, 1999 and 1998 ............................   8

Notes to Consolidated Financial Statements ..........................   9


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

(a)     OVERVIEW

The following discussion should be read in conjunction with the Partnership's
Consolidated Financial Statements and Notes thereto appearing elsewhere in this
Form 10-Q.

The Partnership currently owns a 93.45% interest in the Sierra Creekside
Partnership, which operates the Sierra Creekside property.

(b)     RESULTS OF OPERATIONS

Rental income for the nine months ended September 30, 1999 decreased by $24,000,
or 3%, when compared to the same period in the prior year, primarily as a result
of a lease buy-out negotiated in May 1998. The decrease in rental income was
partially offset due to higher rental rates. Rental income for the quarter ended
September 30, 1999, increased by $18,000, or 8%, principally due to the higher
rental rates. The Property was 100% occupied at September 30, 1999.


                                        2
<PAGE>
Operating expenses for the nine months ended September 30, 1999 increased by
$18,000, or 5%, in comparison to the corresponding period in the prior year,
principally due to an increase in property taxes and administrative costs. This
increase was partially offset by a decrease in utilities accrued during the
period. Operating expenses for the three months ended September 30, 1999
increased by $5,000, or 4%, primarily due to higher maintenance and repair costs
incurred during the quarter.

Depreciation and amortization expenses for the nine months and three months
ended September 30, 1999 decreased by $23,000, or 8%, and by $13,000, or 13%,
respectively, primarily due to fully depreciated capitalized tenant
improvements.

(c)     LIQUIDITY AND CAPITAL RESOURCES

The Partnership is in a liquid position at September 30, 1999 with cash and
billed rents of $158,000 and current liabilities of $83,000. A source of cash is
available through advances from the minority owner of the property, Sierra Mira
Mesa Partners.

The Partnership's primary capital requirements will be for the construction of
new tenant space. It is anticipated that these requirements will be funded from
the operations of the Property.

(d)     YEAR 2000 COMPLIANCE

The Year 2000 Compliance issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of the
Partnership's computer programs that have time-sensitive software may recognize
a date using "00" as the year 1900 rather than the year 2000. This could result
in a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities. As a result,
many companies' software and computer systems may need to be upgraded or
replaced in order to comply with Year 2000 requirements.

The Partnership employs a property management company to manage, operate and
lease the property. The management company believes it will be ready for the
Year 2000 date change by the end of 1999. The impact of Year 2000 non-compliance
by other third parties cannot accurately be gauged.

The total cost to the Partnership of activities associated with Year 2000
Compliance is not anticipated to be material to its financial position or
results of operations in any given year. In January 1999, the Partnership began
utilizing a new software program to maintain books and records. The new software
program is Year 2000 compliant.

The total amount of potential risk that would be reasonably likely to result
from Year 2000 failures cannot presently be estimated. In the event the
Partnership does not properly identify Year 2000 issues in a timely manner,
there can be no assurance that Year 2000 issues will not materially affect the
Partnership's results.


                                       3

<PAGE>
The Partnership's contingency plan should systems fail due to the Year 2000 date
change is to temporarily convert to a manual system. The Partnership believes it
could temporarily operate on a manual system without adversely impacting
operations.

The preceding Year 2000 discussion contains various forward-looking statements
which represent the Partnership's beliefs or expectations regarding future
events. All forward-looking statements involve a number of risks and
uncertainties that could cause the actual results to differ materially from
projected results.


                                       4
<PAGE>
                        SIERRA PACIFIC DEVELOPMENT FUND
                            (A LIMITED PARTNERSHIP)
                             ---------------------

                          CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
--------------------------------------------------------------------------------

                                         SEPTEMBER 30, 1999    DECEMBER 31, 1998
                                         ------------------    -----------------

ASSETS

Cash and cash equivalents .................  $  153,519            $   83,408
Receivables:
   Unbilled rent ..........................      52,584                47,993
   Billed rent ............................       4,379                 8,297
Due from affiliates .......................      73,916                26,916
Income-producing property - net of
  accumulated depreciation and valuation
  allowance of $3,256,804 and $3,140,905,
  respectively ............................   2,587,860             2,772,712
Other assets ..............................     218,892               252,588
Excess distributions to minority Partner ..      79,957                75,610
                                             ----------            ----------

Total Assets ..............................  $3,171,107            $3,267,524
                                             ==========            ==========

LIABILITIES AND PARTNERS' EQUITY

Accrued and other liabilities .............  $   82,582            $   82,019
Note payable ..............................   1,685,370             1,720,324
                                             ----------            ----------

Total Liabilities .........................   1,767,952             1,802,343
                                             ----------            ----------

Partners' equity:
  General Partner .........................           0                     0
  Limited Partners:
       30,000 units authorized,
       29,354 issued and
       outstanding ........................   1,403,155             1,465,181
                                             ----------            ----------

Total Partners' equity ....................   1,403,155             1,465,181
                                             ----------            ----------

Total Liabilities and Partners' equity ....  $3,171,107            $3,267,524
                                             ==========            ==========


                                    UNAUDITED
                             SEE ACCOMPANYING NOTES
                                        5
<PAGE>
                         SIERRA PACIFIC DEVELOPMENT FUND
                             (A Limited Partnership)
                              ---------------------

                      CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
           AND FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                          Nine Months Ended         Three Months Ended
                                            September 30,             September 30,
                                        ----------------------    ----------------------
                                           1999         1998         1999         1998
                                        ---------    ---------    ---------    ---------
<S>                                     <C>          <C>          <C>            <C>
REVENUES:
  Rental income .....................   $ 682,407    $ 706,189    $ 234,341    $ 216,120
                                        ---------    ---------    ---------    ---------

          Total revenues ............     682,407      706,189      234,341      216,120
                                        ---------    ---------    ---------    ---------

EXPENSES:
  Operating expenses ................     376,008      357,587      128,931      123,719
  Depreciation and amortization .....     257,948      281,037       83,721       96,379
  Interest ..........................     114,824      117,844       38,010       39,040
                                        ---------    ---------    ---------    ---------

          Total costs and expenses ..     748,780      756,468      250,662      259,138
                                        ---------    ---------    ---------    ---------


LOSS BEFORE MINORITY INTEREST'S
  SHARE OF CONSOLIDATED JOINT VENTURE
  LOSS ..............................     (66,373)     (50,279)     (16,321)     (43,018)
                                        ---------    ---------    ---------    ---------

MINORITY INTEREST'S SHARE OF
  CONSOLIDATED JOINT VENTURE
  LOSS ..............................       4,347        4,691        1,068        4,014
                                        ---------    ---------    ---------    ---------

NET LOSS ............................   $ (62,026)   $ (45,588)   $ (15,253)     (39,004)
                                        =========    =========    =========    =========

Net loss per limited partnership unit   $   (2.11)   $   (1.55)   $   (0.52)   $   (1.33)
                                        =========    =========    =========    =========
</TABLE>


                                    UNAUDITED
                             SEE ACCOMPANYING NOTES
                                        6
<PAGE>
                         SIERRA PACIFIC DEVELOPMENT FUND
                             (A LIMITED PARTNERSHIP)
                              ---------------------

             CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
     FROM FEBRUARY 13, 1981 (INCEPTION OF PARTNERSHIP) TO DECEMBER 31, 1998
                AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                               LIMITED PARTNERS                                   TOTAL
                                           --------------------------         GENERAL            PARTNERS'
                                           PER UNIT         TOTAL             PARTNER             EQUITY
                                           -------       ------------       ------------       ------------
<S>                                        <C>           <C>                <C>                   <C>

Proceeds from sale of
  partnership units .................      $500.00       $ 14,677,000                          $ 14,677,000
Underwriting commissions
  and other organization expenses ...       (60.29)        (1,769,862)                           (1,769,862)
Cumulative net income (loss)
  (to December 31, 1998) ............      (223.05)        (6,547,484)      $     14,600         (6,532,884)
Cumulative distributions
  (to December 31, 1998) ............      (166.75)        (4,894,473)           (14,600)        (4,909,073)
                                           -------       ------------       ------------       ------------

Partners' equity - January 1, 1999 ..        49.91          1,465,181                  0          1,465,181
Net loss ............................        (2.11)           (62,026)                              (62,026)
                                           -------       ------------       ------------       ------------

Partners' equity - September 30, 1999      $ 47.80       $  1,403,155       $          0       $  1,403,155
                                           =======       ============       ============       ============
</TABLE>


                                   UNAUDITED
                             SEE ACCOMPANYING NOTES
                                        7
<PAGE>
                         SIERRA PACIFIC DEVELOPMENT FUND
                             (A LIMITED PARTNERSHIP)
                              ---------------------

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                 1999            1998
                                                              ---------       ---------
<S>                                                           <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss .............................................      $ (62,026)      $ (45,588)
  Adjustments to reconcile net loss
  to cash provided by operating activities:
    Depreciation and amortization ......................        257,948         281,037
    Minority interest's share of consolidated
      joint venture loss ...............................         (4,347)         (4,691)
    (Increase) decrease in rent receivable .............           (673)         27,396
    Increase in other assets ...........................        (29,758)        (68,083)
    Increase (decrease) in accrued and other liabilities            563             (90)
                                                              ---------       ---------

    Net cash provided by operating activities ..........        161,707         189,981
                                                              ---------       ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Payments for property additions ....................         (9,642)        (78,467)
                                                              ---------       ---------

    Net cash used in investing activities ..............         (9,642)        (78,467)
                                                              ---------       ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Principal payments on note payable .................        (34,954)        (31,957)
    Loan to affiliate ..................................        (47,000)        (95,500)
                                                              ---------       ---------

    Net cash used in financing activities ..............        (81,954)       (127,457)
                                                              ---------       ---------

NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS ................................         70,111         (15,943)

CASH AND CASH EQUIVALENTS
    Beginning of period ................................         83,408          87,192
                                                              ---------       ---------

CASH AND CASH EQUIVALENTS
    End of period ......................................      $ 153,519       $  71,249
                                                              =========       =========



SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

   Cash paid during the period for interest ............      $ 115,086       $ 118,084
                                                              =========       =========
</TABLE>


                                   UNAUDITED
                             SEE ACCOMPANYING NOTES
                                        8
<PAGE>
                         SIERRA PACIFIC DEVELOPMENT FUND
                             (A LIMITED PARTNERSHIP)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    ------------------------------------------------------------------------

1. ORGANIZATION

In February 1994, the Partnership created a general partnership (Sierra
Creekside Partners) with Sierra Mira Mesa Partners ("SMMP") to facilitate cash
contributions by SMMP for the continued development and operation of the Sierra
Creekside property. The Partnership Agreement of Sierra Creekside Partners (the
"Agreement") was amended effective January 1, 1995 to consider both
contributions and distributions when calculating each partners' percentage
interest at January 1 of each year as called for by the Agreement. Accordingly,
on January 1, 1999, the Partnership's interest in Sierra Creekside Partners was
increased from 90.67% to 93.45% to reflect 1998 contributions and distributions.

2. BASIS OF FINANCIAL STATEMENTS

The accompanying unaudited consolidated condensed financial statements include
the accounts of the Partnership and Sierra Creekside Partners, a majority owned
joint venture at September 30, 1999. All significant intercompany balances and
transactions have been eliminated in consolidation.

In the opinion of the Partnership's management, these unaudited financial
statements reflect all adjustments which are necessary for a fair presentation
of its financial position at September 30, 1999 and results of operations and
cash flows for the periods presented. All adjustments included in these
statements are of a normal and recurring nature. These financial statements
should be read in conjunction with the financial statements and notes thereto
contained in the Annual Report of the Partnership for the year ended December
31, 1998.

3. RELATED PARTY TRANSACTIONS

Included in the financial statements for the nine months ended September 30,
1999 and 1998 are affiliate transactions as follows:

                                                        September 30
                                                  ------------------------
                                                    1999             1998
                                                  -------          -------
             Management fees ............         $30,414          $32,620
             Administrative fees ........          38,877           27,189
             Leasing fees ...............               0           35,485
             Construction fees ..........               0            6,209


                                   UNAUDITED
                                        9
<PAGE>
SIERRA PACIFIC DEVELOPMENT FUND
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PAGE TWO


4. PARTNERS' EQUITY

Equity and net loss per limited partnership unit is determined by dividing the
Limited Partners' share of the Partnership's equity and net loss by the number
of limited partnership units outstanding, 29,354.


                                   UNAUDITED
                                       10
<PAGE>
                           PART II - OTHER INFORMATION
                          -----------------------------

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

    The following Exhibits are filed herewith pursuant to Rule 601 of Regulation
S-K.

      EXHIBIT
       NUMBER              DESCRIPTION OF EXHIBIT
      -------              -----------------------
         27                Financial Data Schedule


(b) Reports on Form 8-K

    None


                                   SIGNATURES

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


                                            SIERRA PACIFIC DEVELOPMENT FUND
                                            a Limited Partnership
                                            S-P PROPERTIES, INC.
                                            General Partner


Date:  OCTOBER 29, 1999                     /s/ THOMAS N. THURBER
       ----------------                     -----------------------------
                                                Thomas N. Thurber
                                                President and Director

Date:  OCTOBER 29, 1999                     /s/ G. ANTHONY EPPOLITO
       ----------------                     -----------------------------
                                                G. Anthony Eppolito
                                                Chief Accountant


                                   UNAUDITED
                                       11