<PAGE>

                                    UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION 
                               Washington, D.C. 20549 
                                      FORM 10-Q



(Mark One)
[ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934
         For the quarterly period ended:  October 5, 1997

[   ]    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: 1-11012
                                 -------

                             GLACIER WATER SERVICES, INC.
                             ----------------------------
                  (Exact name of registrant as specified in its charter)

         Delaware                                              33-0493559
-------------------------------------------------------------------------------
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

2261 Cosmos Court, Carlsbad, California                           92009
-------------------------------------------------------------------------------
    (Address of principal executive offices)                    (Zip Code)

                                  (760)  930-2420
                                  ---------------
               (Registrant's telephone number, including area code)

    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   
                                                    -----      -----

    Indicate the number of shares outstanding of each of issuer's class of 
common stock as of the latest practicable date: 3,228,075 shares of common 
stock, $.01 par value, outstanding at October 5, 1997.

                                       1
<PAGE>

                         PART 1 - FINANCIAL INFORMATION
                         ITEM 1 - FINANCIAL STATEMENTS

                          GLACIER WATER SERVICES, INC.
                          CONSOLIDATED BALANCE SHEETS
                       (in thousands, except share data)

                                                       OCTOBER 5,   DECEMBER 31,
                                                          1997         1996*
                                                       ----------   ------------
ASSETS                                                 (unaudited)

Current assets:
  Cash . . . . . . . . . . . . . . . . . . . . .         $    10      $    11
  Accounts receivable. . . . . . . . . . . . . .             290          311
  Inventories. . . . . . . . . . . . . . . . . .           2,251        1,701
  Prepaid commissions and other. . . . . . . . .           1,044        1,084
                                                         -------      -------
    Total current assets . . . . . . . . . . . .           3,595        3,107

Property and equipment, net of accumulated 
 depreciation. . . . . . . . . . . . . . . . . .          48,619       37,999
Other assets . . . . . . . . . . . . . . . . . .           6,301        4,961
                                                         -------      -------
Total assets . . . . . . . . . . . . . . . . . .         $58,515      $46,067
                                                         -------      -------
                                                         -------      -------

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable . . . . . . . . . . . . . . .         $   871      $   640
  Accrued commissions. . . . . . . . . . . . . .           2,193          988
  Accrued liabilities. . . . . . . . . . . . . .           1,948        1,654
                                                         -------      -------
    Total current liabilities. . . . . . . . . .           5,012        3,282

Long-term debt . . . . . . . . . . . . . . . . .          26,022       15,820
Deferred income taxes. . . . . . . . . . . . . .           2,979        2,979

Stockholders' equity:
  Preferred stock, $.01 par value;
   100,000 shares authorized, 
   no shares issued or outstanding . . . . . . .               -            -
  Common stock, $.01 par value;
   10,000,000 shares authorized, 3,228,075 and
   3,208,575 shares issued and outstanding, 
   respectively. . . . . . . . . . . . . . . . .              34           34
Additional paid-in capital . . . . . . . . . . .          15,481       15,284
Retained earnings. . . . . . . . . . . . . . . .          12,550       12,231
Treasury stock; 170,500 shares, at cost. . . . .          (3,563)      (3,563)
                                                         -------      -------
  Total stockholders' equity . . . . . . . . . .          24,502       23,986
                                                         -------      -------

Total liabilities and stockholders' equity . . .         $58,515      $46,067
                                                         -------      -------
                                                         -------      -------


 * Amounts derived from audited information

                            See accompanying notes

                                       2
<PAGE>

                             GLACIER WATER SERVICES, INC.
                          CONSOLIDATED STATEMENTS OF INCOME
                  (in thousands, except shares and per share data)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED           NINE MONTHS ENDED
                                                   OCTOBER 5,   SEPTEMBER 30,   OCTOBER 5,  SEPTEMBER 30,
                                                      1997         1996           1997          1996
                                                   ----------   -------------   ----------  -------------
<S>                                                <C>          <C>             <C>         <C>
Revenues . . . . . . . . . . . . . . . . . . .     $  17,138    $  13,709       $  44,352    $  35,760

Operating costs and expenses: 
  Operating expenses . . . . . . . . . . . . .        10,573        8,302          27,482       22,009
  Selling, general and administrative 
    expenses . . . . . . . . . . . . . . . . .         1,992        1,408           5,461        4,155
  Depreciation and amortization. . . . . . . .         2,317        1,704           6,515        4,991
  Non-recurring acquisition charges. . . . . .         1,721           --           3,062           --
                                                   ---------    ---------       ---------    ---------
    Total operating costs and expenses . . . .        16,603       11,414          42,520       31,155
                                                   ---------    ---------       ---------    ---------

Income from operations . . . . . . . . . . . .           535        2,295           1,832        4,605

Interest expense (net) and other . . . . . . .           532          174           1,370          553
                                                   ---------    ---------       ---------    ---------

Income before income taxes . . . . . . . . . .             3        2,121             462        4,052
Income tax provision (benefit) . . . . . . . .           (29)         565             143        1,337
                                                   ---------    ---------       ---------    ---------

Net income . . . . . . . . . . . . . . . . . .     $      32    $   1,556       $     319    $   2,715
                                                   ---------    ---------       ---------    ---------
                                                   ---------    ---------       ---------    ---------

Net income per common and 
  common equivalent share. . . . . . . . . . .     $     .01    $     .46       $     .10    $     .80
                                                   ---------    ---------       ---------    ---------
                                                   ---------    ---------       ---------    ---------

Weighted average common and 
  common equivalent shares outstanding . . . .     3,351,034    3,398,650       3,324,525    3,389,893
                                                   ---------    ---------       ---------    ---------
                                                   ---------    ---------       ---------    ---------
</TABLE>

                             See accompanying notes

                                       3
<PAGE>

                          GLACIER WATER SERVICES, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)


                                                          NINE MONTHS ENDED
                                                      OCTOBER 5,   SEPTEMBER 30,
                                                         1997          1996
                                                      ----------   ------------
Cash flows from operating activities:
  Net income. . . . . . . . . . . . . . . . . . . .   $     319    $   2,715
  Adjustments to reconcile net income to 
   net cash provided by operating activities:
    Depreciation and amortization . . . . . . . . .       6,515        4,991
    Loss on disposal of assets. . . . . . . . . . .         195           --
  Change in operating assets and liabilities:
    Accounts receivable . . . . . . . . . . . . . .        (108)         262
    Inventories . . . . . . . . . . . . . . . . . .        (383)        (711)
    Prepaid commissions and other . . . . . . . . .         296         (370)
    Payments for prepaid marketing incentives . . .      (1,295)        (502)
    Other assets. . . . . . . . . . . . . . . . . .         (61)        (139)
    Accounts payable, accrued commissions 
     and other accrued liabilities. . . . . . . . .       1,323        1,285
                                                      ---------    ---------
      Net cash provided by operating activities . .       6,801        7,531
                                                      ---------    ---------
Cash flows from investing activities:
  Purchase of property and equipment. . . . . . . .        (241)        (411)
  Net investment in vending equipment . . . . . . .      (7,969)      (5,067)
  Proceeds from sale of property and equipment              111           --
  Purchase of Aqua-Vend . . . . . . . . . . . . . .      (9,355)          --
                                                      ---------    ---------
      Net cash used in investing activities . . . .     (17,454)      (5,478)
                                                      ---------    ---------
Cash flows from financing activities:
  Proceeds from long-term borrowings. . . . . . . .      25,140       10,010
  Principal payments on long-term borrowings. . . .     (14,684)     (10,808)
  Proceeds from issuance of stock . . . . . . . . .         196          111
  Purchase of treasury stock. . . . . . . . . . . .          --         (529)
                                                      ---------    ---------
      Net cash provided by (used in) 
       financing activities                              10,652       (1,216) 
                                                      ---------    ---------
Net increase (decrease) in cash . . . . . . . . . .          (1)         837
Cash, beginning of period . . . . . . . . . . . . .          11           29
                                                      ---------    ---------
Cash, end of period . . . . . . . . . . . . . . . .   $      10    $     866
                                                      ---------    ---------
                                                      ---------    ---------

Supplemental disclosure of cash flow information:
  Interest paid . . . . . . . . . . . . . . . . . .   $   1,506    $     702
                                                      ---------    ---------
                                                      ---------    ---------
  Income taxes paid . . . . . . . . . . . . . . . .   $     365    $     563
                                                      ---------    ---------
                                                      ---------    ---------


                                See accompanying notes

                                       4
<PAGE>

                           GLACIER WATER SERVICES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                October 5, 1997
                                  (unaudited)

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     CHANGE IN FISCAL YEAR

          In the first quarter of 1997, the Company reported that it had 
prospectively changed its financial reporting year from a fiscal year of 
twelve calendar months ending December 31 to a fiscal year of 52 or 53 weeks 
ending on the Friday closest to December 31.   In order to more closely align 
its fiscal reporting to its business cycle, the Company has modified its 
fiscal reporting to end its fiscal year on the Sunday closest to December 31. 
Accordingly, the third quarter ended on October 5, 1997 and contained 93 
days, and the Company's fiscal year will end on January 4, 1998. The period 
from December 31, 1996 to January 3, 1997 is not significant to the Company's 
nine-month operations, and has not been reported separately.

     BASIS OF PRESENTATION

          In the opinion of the Company's management, the accompanying 
consolidated financial statements reflect all adjustments (consisting only of 
normal recurring accruals) necessary for a fair presentation of the 
consolidated financial position of the Company and the consolidated results 
of its operations and its cash flows for the three- and nine-month periods 
ending October 5, 1997 and September 30, 1996.  Although the Company believes 
that the disclosures in these financial statements are adequate to make the 
information presented not misleading, certain information, including footnote 
information, normally included in financial statements prepared in accordance 
with generally accepted accounting principles has been condensed or omitted 
pursuant to the rules and regulations of the Securities and Exchange 
Commission.  Results of operations for the period ended October 5, 1997 are 
not necessarily indicative of results to be expected for the full year.  For 
further information, refer to the consolidated financial statements and 
footnotes thereto included in the Company's Annual Report on Form 10-K for 
the year ended December 31, 1996.

     RECLASSIFICATION

          Certain prior year amounts have been reclassified to conform to the 
current presentation.

2.   ACQUISITION

     On March 28, 1997, the Company purchased substantially all of the assets 
of the Aqua-Vend division of McKesson Water Products Company, a wholly-owned 
subsidiary  of McKesson Corporation, for $9.0 million in cash plus certain 
direct costs, including sales tax on assets purchased. The transaction was 
accounted for under the purchase method, and the purchase price and related 
direct costs were allocated based on the estimated fair values of assets 
acquired and liabilities assumed, as follows (in thousands):

               Inventories                   $  208
               Prepaid expenses                 255
               Vending equipment              7,565
               Other fixed assets               145
               Prepaid marketing incentives   1,225
               Other non-current assets         110
               Sales tax liability             (153)
                                             ------
                                             $9,355
                                             ------
                                             ------

                                       5
<PAGE>

                           GLACIER WATER SERVICES, INC.
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
                                October 5, 1997
                                  (unaudited)

     The unaudited consolidated pro forma results of operations for the nine 
months ended October 5, 1997 and September 30, 1996 presented below assume 
that the transaction occurred as of the beginning of the respective periods 
(in thousands, except per share amounts):

                                                Nine Months Ended
                                           October 5,    September 30,
                                               1997         1996
                                           ----------    -------------
       Net revenues                         $47,580        $48,943
       Income from operations                   825          3,961
       Net income (loss)                       (689)         2,053
       Net income (loss) per common share     ($.21)          $.61

3.    INVENTORIES

     Inventories consist of raw materials, repair and spare parts and vending 
machines in process of assembly, and are stated at the lower of cost (moving 
weighted average) or market.  Costs associated with the assembly of vending 
machines are accumulated until machines are completed, at which time the 
costs are transferred to property and equipment.

     At October 5, 1997 and December 31, 1996, inventories consisted 
primarily of raw materials and repair and spare parts.

4.    SUPPLEMENTARY BALANCE SHEET INFORMATION

     Included in Prepaid commissions and other are commission payments made 
to certain retailers based on a percentage of estimated quarterly vending 
machine revenues, as well as other prepaid expenses incurred in the normal 
course of business.  Prepaid commissions were $79,000 and $490,000 at October 
5, 1997 and December 31, 1996, respectively.

     Included in Other assets are prepaid marketing incentives which 
represent payments made to the Company's retailers for the placement of the 
Company's machines at store locations.  Prepaid marketing incentives, net of 
accumulated amortization were $5,695,000 and $4,606,000 at October 5, 1997 
and December 31, 1996, respectively.

5.    NET INCOME PER SHARE

     Net income per share of common stock is computed on the basis of the 
weighted average shares of common stock outstanding plus common equivalent 
shares arising from the effect of dilutive stock options, using the treasury 
stock method.

     In March 1997, the Financial Accounting Standards Board adopted 
Statement No. 128 "Earnings Per Share" ("Statement No. 128"), which is 
effective for periods ending after December 15, 1997.  Pro forma net income 
per share computed pursuant to Statement No. 128 would be $.01 and $.10, 
respectively, for the three- and nine-month periods ended October 5, 1997, 
and  $.46 and $.80, respectively, for the three- and nine-month periods ended 
September 30, 1996. 

                                       6
<PAGE>

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                    CONDITIONS AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

OVERVIEW

The Company previously reported that effective January 1, 1997, it had 
prospectively changed its fiscal year from twelve calendar months ending 
December 31 to a 52- or 53-week fiscal year ending on the Friday closest to 
December 31.  As a result of this change, the Company's 1997 fiscal quarters 
each contain 13 calendar weeks.  In order to more closely align its fiscal 
reporting to its business cycle, the Company has modified its fiscal 
reporting to end its fiscal year on the Sunday closest to December 31.  
Accordingly, the third quarter ended on October 5, 1997 and contained 93 
days, and the Company's fiscal year will end on January 4, 1998.  The change 
in fiscal reporting was not applied retroactively, as there would be no 
impact on the operating results for the first two quarters.

On March 28, 1997, the Company purchased substantially all of the assets of 
the Aqua-Vend division of McKesson Water Products Company, a wholly-owned 
subsidiary of McKesson Corporation.  The assets purchased included 
approximately 3,000 water vending machines.  In connection with the 
acquisition, the Company developed a detailed integration plan which included 
the removal of approximately 600 Aqua-Vend machines from service, the 
upgrading and modification of the majority of the remaining Aqua-Vend 
machines and the rationalization and relocation of Aqua-Vend machines within 
Glacier's network of machines.  The revenues and operating costs associated 
with these machines from March 29, 1997 are included in the Company's results 
of operations.

During the third quarter, the Company substantially completed the Aqua-Vend 
integration activities and incurred non-recurring expenses of $1,721,000 
related to these activities.  As of  October 5, 1997, the Company had 
incurred total non-recurring expenses of $3,062,000 to complete the 
integration of the Aqua-Vend machines.  The Company does not expect to incur 
any further non-recurring expenses in the fourth quarter. 

In addition to the non-recurring expenses described above, the Company also 
incurred expenses resulting from certain inefficiencies and redundancies in 
its operating and general and administrative areas, related to absorbing the 
Aqua-Vend personnel and operations.  The Company believes that the Aqua-Vend 
operating and administrative activities have now been fully rationalized with 
those of Glacier, and  all inefficiencies and redundancies have been 
eliminated.

During the third quarter, the Company installed 109 new outside machines and 
83 in-store machines and removed 326 Aqua-Vend machines, to finish the 
quarter with a total of 12,170 machines in operation, compared with 8,894 at 
September 30, 1996.  Included in the total at October 5, 1997 are 460 
in-store machines, compared with 87 at September 30, 1996.

REVENUES

Revenues  for the quarter ended October 5, 1997 increased 25.0% to 
$17,138,000, from $13,709,000 in the third quarter of 1996.  Revenues for the 
first nine months of 1997 increased 24.0% to $44,352,000, from $35,760,000 in 
the same period last year.  The increases are primarily the result of the 
increased number of machines in operation throughout the quarter and 
nine-month periods. The increases, however, did not keep pace with the 36.8% 
increase in the number of machines in operation since September 30, 1996 due 
primarily to unusually mild weather during July and August in California, the 
Company's largest and most important market.

                                       7
<PAGE>

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
                CONDITIONS AND RESULTS OF OPERATIONS  - (Continued)


COSTS AND EXPENSES

Operating expenses for the quarter increased to $10,573,000, or 61.7% of 
revenues, compared to $8,302,000, or 60.6% of revenues in the second quarter 
of 1996.  Operating expenses for the nine- month period increased to 
$27,482,000, or 62.0% of revenues, compared to $22,009,000, or 61.5% of 
revenues in 1996. The total dollar increase is due to the additional 
commissions and service costs associated with the additional machines in 
1997.  The absolute increase in costs is due also in part to inefficiencies 
in servicing and other short term increases in service costs experienced as 
the Company focused its efforts on completing the integration of Aqua-Vend in 
the third quarter.  These increased costs related to Aqua-Vend are in 
addition to the specific costs associated with the Company's identified 
integration projects that are reported separately as non-recurring charges.  
The increase in operating expenses as a percentage of revenues for both the 
quarter and nine-month period is a result of these increases in servicing 
costs, as well as the effect of softer revenues in the third quarter, 
discussed above.

Selling, general and administrative ("SG&A") expenses for the quarter 
increased to $1,992,000, or 11.6% of revenues, compared to $1,408,000, or 
10.3% of revenues in the third quarter of 1996.  SG&A expenses for the nine 
month period increased to $5,461,000, or 12.3% of revenues, compared to 
$4,155,000, or 11.6% of revenues in 1996.  The increase in total dollars is 
due to an increase in the Company's activities supporting and promoting the 
in-store machine program, as well as additional administrative expenses 
incurred as a result of the Aqua-Vend acquisition.   The increase in SG&A as 
a percentage of revenues for both the quarter and nine-month period resulted 
primarily from the effect of softer sales in the third quarter, discussed 
above.

Depreciation and amortization expense for the quarter increased to 
$2,317,000, compared to $1,704,000 in the third quarter of 1996. Depreciation
and amortization expense for the nine-month period increased to $6,515,000,
compared to $4,991,000 in the prior year.  The increases are the result of the
net installation of approximately 875 new Glacier machines and the addition of
approximately 2,400 Aqua-Vend machines since September 30, 1996. 

The Company had expected to incur a total of approximately $3.5 million in 
non-recurring expenses related to the integration of Aqua-Vend's operations 
with Glacier's.  Specifically, the integration plan included costs to close 
certain Glacier locations and write-off obsolete assets, to upgrade the 
Aqua-Vend machines to Glacier's servicing and operability standards, to 
rationalize and relocate equipment between Aqua-Vend and Glacier locations 
and to change the signage on Aqua-Vend machines to that used by Glacier.  As 
of October 5, 1997, the Company has completed substantially all of these 
activities at a total cost of $3,062,000.  The Company does not expect to 
incur any additional costs related to the integration project in the fourth 
quarter.

Interest expense for the quarter increased to $532,000, compared to $174,000 
in the third quarter of 1996.   Interest expense for the nine-month period 
increased to $1,370,000 compared to $553,000 in the prior year.  The 
increases are due to the higher outstanding balances on the Company's bank 
line of credit throughout 1997.  Borrowings throughout the year were used to 
finance the Company's investment in new machines, and to finance the 
acquisition of Aqua-Vend.

In the third quarter, the Company recorded an income tax benefit to reflect 
the cumulative effect of reducing the effective tax rate from 37.5% to 31% 
for the nine-month period ended October 5, 1997.  The Company reduced its tax 
rate to reflect the impact of certain tax credits, and it expects the tax 
rate to approximate 31% for fiscal year 1997.  In the third quarter of 1996, 
the Company's effective tax 

                                       8
<PAGE>

           ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
               CONDITIONS AND RESULTS OF OPERATIONS  - (Continued)


rate of 26.6% reflects a similar cumulative adjustment to reduce the tax rate 
to 33% for the nine-month period ended September 30, 1996.

As a result of the foregoing, net income for the quarter ended October 5, 1997 
declined to $32,000, or $.01 per share, from $1,556,000, or $.46 per share in 
the prior year.  For the nine-month period ended October 5, 1997, net income 
declined to $319,000, or $.10 per share, from $2,715,000, or $.80 per share 
for the same period last year.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary sources of liquidity and capital resources are cash 
flows from operations and funds available under the Company's bank credit 
agreement. The credit agreement provides for borrowings of up to $35 million 
and requires monthly interest payments at the bank's prime rate (8.5% per 
annum at October 5, 1997) or LIBOR plus 1.75%.  The credit agreement provides 
for a two-year interest-only revolving period which converts to a five-year 
term note due and payable July 1, 2003. The agreement is collateralized by 
substantially all assets of the Company and requires, among other things, 
that the Company maintain certain debt coverage and other financial ratios.

For the nine-month period ended October 5, 1997, net cash provided by 
operations was approximately $6.8 million, the Company made capital 
investments in vending machines and other equipment of approximately $8.2 
million, and invested approximately $9.4 million in the purchase of 
Aqua-Vend.  As of October 5, 1997, the Company had a deficit in working 
capital of $1.4 million.  Because the Company does not have significant trade 
accounts receivable and product inventories, working capital will vary from 
time to time depending on the timing of payables.  

Approximately $26.0 million of borrowings were outstanding and $9.0 million 
was available under the credit agreement. The purchase price of the Aqua-Vend 
assets was funded by additional borrowings under the Company's credit 
agreement.  The Company believes its cash flow generated from operations and 
borrowings available under its credit agreement will be sufficient to meet 
its anticipated operating and capital requirements, including its investment 
in vending equipment, for at least the next twelve months.

STATEMENTS IN THIS REPORT THAT ARE NOT PURELY HISTORICAL ARE FORWARD-LOOKING 
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT 
OF 1995.  THESE FORWARD-LOOKING STATEMENTS WITH RESPECT TO THE FINANCIAL 
CONDITION AND RESULTS OF OPERATIONS OF THE COMPANY INVOLVE RISKS AND 
UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO, TRADE RELATIONS, DEPENDENCE ON 
CERTAIN LOCATIONS AND COMPETITION.  FURTHER INFORMATION ON POTENTIAL FACTORS 
WHICH COULD AFFECT THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE 
COMPANY ARE INCLUDED IN THE FILINGS OF THE COMPANY WITH THE SECURITIES AND 
EXCHANGE COMMISSION, INCLUDING, BUT NOT LIMITED TO, THE COMPANY'S ANNUAL 
REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1996.

                                       9
<PAGE>

                         PART II - OTHER INFORMATION


ITEM 5.   OTHER INFORMATION

On October 28, 1997, the Company filed a lawsuit against Pure-Fill 
Corporation ("Pure-Fill") and Dennis E. Disanto, an officer and owner of 
Pure-Fill, in the United States District Court for the Southern District of 
California.  Mr. Disanto currently holds two patents issued by the United 
States Patent and Trademark Office which pertain to water vending equipment.  
Mr. Disanto has communicated to the Company that certain features of the 
Company's indoor water vending machines violate his patents.

On the advice of patent counsel to the Company, the lawsuit was filed by 
the Company  as a defensive measure against Pure-Fill and Mr. Disanto, 
seeking a declaration that the patents held by Mr. Disanto and used by 
Pure-Fill relating to water vending machines are invalid under United States 
patent law and that the Company's water vending machines do not infringe any 
valid claim of the patents.  The Company believes that this litigation will 
not have a material adverse effect on the Company's business, financial 
condition or operating results. 

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          a.   EXHIBITS

               Exhibit 27.  Financial Data Schedule

          b.   REPORTS ON FORM 8-K

               None.

                                       10
<PAGE>

                                   SIGNATURES

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.



                                       GLACIER WATER SERVICES, INC.


Date:  November 13, 1997               By: /s/ Jerry A. Gordon
       --------------------                ------------------------------
                                           Jerry A. Gordon
                                           President and Chief 
                                           Operating Officer



Date:  November 13, 1997               By: /s/ Brenda K. Foster
     --------------------                  ------------------------------
                                           Brenda K. Foster
                                           Vice President, Controller




                                       11