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| [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|-----------------------------------------------------------------------------------------|

| Colorado                                                     |                                                                    | 13-4228144                                |
|--------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------|
| State or other jurisdiction of incorporation or organization |                                                                    | I.R.S. Employer Identification No.        |
|                                                         | 2000 South Colorado Boulevard, Tower 1, Suite 3100,Denver, CO 80222     |                                      |
|                                                         | (Address of principal executive offices) (Zip Code)                     |                                      |
|                                                         |                                                                    |                                      |
|                                                         | Registrant’s telephone number, including area code:(303) 222-1000 |                                      |
|                                                         |                                                                    |                                      |
|                                                         | Securities registered pursuant to Section 12(b) of the Act:             |                                      |
| Title of each class registered                               |                                                                    | Name of each exchange on which registered |
| Not Applicable                                               |                                                                    | Not Applicable                            |
|                                                         | Securities registered pursuant to Section 12(g) of the Act:             |                                      |
|                                                         | Common Stock(Title of class)                                            |                                      |

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| Large accelerated filer                                            | [___] |   | Accelerated filer         | [___] |
|--------------------------------------------------------------------|-------|--------|---------------------------|-------|
| Non-accelerated filer(Do not check if a smaller reporting company) | [___] |   | Smaller reporting company | [ X ] |

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TABLE OF CONTENTS

|                                    |                                                                                                      | Page   |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------|--------|
| Item 1                                  | Financial Statements (Unaudited)                                                                          |   |
|                                    | Condensed Consolidated Balance SheetsJune 30, 2012 and  December 31, 2011                       | 1      |
|                                    | Condensed Consolidated Statements of Operations – Three and six months ended June 30, 2012 and 2011 | 2      |
|                                    | Condensed Consolidated Statements of Cash Flows – Six months ended June 30, 2012 and 2011           | 3      |
|                                    | Notes to Condensed Consolidated Financial Statements                                                      | 5      |
| Item 2                                  | Management’s Discussion and Analysis of Financial Conditionand Results of Operations                | 24     |
| Item 3                                  | Quantitative and Qualitative Disclosures About Market Risk                                                | 30     |
| Item 4                                  | Controls and Procedures                                                                                   | 30     |
|  PART II – OTHER INFORMATION |                                                                                                      |
| Item 1                                  | Legal Proceedings                                                                                         | 32     |
| Item 2                                  | Unregistered Sales of Equity Securities and Use of Proceeds                                               | 32     |
| Item 3                                  | Defaults Upon Senior Securities – Not Applicable                                                    |   |
| Item 4                                  | Mine Safety Disclosures – Not Applicable                                                            |   |
| Item 5                                  | Other Information – Not Applicable                                                                  |   |
| Item 6                                  | Exhibits                                                                                                  | 33     |
|                                    | SIGNATURES                                                                                                | 34     |

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|                                                                                                                                                                       |   | June 30, 2012 |    |   | December 31, 2011    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|----------------------|--------|
|                                                                                                                                                                       |   |          |    |   | (Restated)           |   |
|                                                                                                                                                                       |   | (Unaudited)   |    |   | (Derived from Audit) |   |
| ASSETS:                                                                                                                                                                    |   |          |    |   |                 |   |
| Current Assets:                                                                                                                                                            |   |          |    |   |                 |   |
| Cash and cash equivalents                                                                                                                                                  |   | $             | 1,341   |   |                 | $      | 777 |   |
| Marketable securities, available for sale                                                                                                                                  |   |          | 31      |   |                 |   | 137 |   |
| Advances and accounts receivable                                                                                                                                           |   |          | 133     |   |                 |   | 87 |   |
| Farm product                                                                                                                                                               |   |          | 244     |   |                 |   | 43 |   |
| Deposits and other current assets                                                                                                                                          |   |          | 50      |   |                 |   | 20 |   |
| Total Current Assets                                                                                                                                                       |   |          | 1,799   |   |                 |   | 1,064 |   |
|                                                                                                                                                                       |   |          |    |   |                 |   |   |   |
|   Property, equipment and software, net                                                                                                                          |   |          | 1,219   |   |                 |   | 1,129 |   |
|                                                                                                                                                                       |   |          |    |   |                 |   |   |   |
| Other Assets                                                                                                                                                               |   |          |    |   |                 |   |   |   |
| Debt issuance costs                                                                                                                                                        |   |          | 527     |   |                 |   | 663 |   |
| Land                                                                                                                                                                       |   |          | 3,657   |   |                 |   | 2,968 |   |
| Water rights and infrastructure                                                                                                                                            |   |          | 30,391  |   |                 |   | 28,786 |   |
| Dam and water infrastructure construction in progress                                                                                                                      |   |          | 755     |   |                 |   | 848 |   |
| Total Other Assets                                                                                                                                                         |   |          | 35,330  |   |                 |   | 33,265 |   |
| TOTAL ASSETS                                                                                                                                                               |   | $             | 38,348  |   |                 | $      | 35,458 |   |
|                                                                                                                                                                       |   |          |    |   |                 |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                                    |   |          |    |   |                 |   |   |   |
| Current Liabilities:                                                                                                                                                       |   |          |    |   |                 |   |   |   |
| Accounts payable                                                                                                                                                           |   | $             | 384     |   |                 | $      | 631 |   |
| Current portion of notes payable                                                                                                                                           |   |          | 10,795  |   |                 |   | 32 |   |
| Accrued liabilities                                                                                                                                                        |   |          | 548     |   |                 |   | 495 |   |
| Total Current Liabilities                                                                                                                                                  |   |          | 11,727  |   |                 |   | 1,158 |   |
| Notes Payable - Long Term                                                                                                                                                  |   |          | 7,406   |   |                 |   | 12,104 |   |
| Total Liabilities                                                                                                                                                          |   |          | 19,133  |   |                 |   | 13,262 |   |
|                                                                                                                                                                       |   |          |    |   |                 |   |   |   |
| Commitments & Contingencies (Notes 2, 3, 5, 6)                                                                                                                         |   |          |    |   |                 |   |   |   |
|                                                                                                                                                                       |   |          |    |   |                 |   |   |   |
| Stockholders' Equity:                                                                                                                                                      |   |          |    |   |                 |   |   |   |
| Common stock, $0.001 par value, 100,000,000 shares authorized, 23,884,682 and 23,258,494 shares issued and outstanding atJune 30, 2012 and December 31, 2011, respectively |   |          | 24      |   |                 |   | 23 |   |
| Additional paid-in capital                                                                                                                                                 |   |          | 43,484  |   |                 |   | 39,847 |   |
| Accumulated Comprehensive (Loss)                                                                                                                                           |   |          | (15     | )      |                 |   | (51 | ) |
| Accumulated (deficit)                                                                                                                                                      |   |          | (26,444 | )      |                 |   | (19,785 | ) |
| Total Two Rivers Water Company Shareholders' Equity                                                                                                                        |   |          | 17,049  |   |                 |   | 20,034 |   |
| Noncontrolling interest in subsidiary                                                                                                                                      |   |          | 2,166   |   |                 |   | 2,162 |   |
|         Total Stockholders' Equity                                                                                                 |   |          | 19,215  |   |                 |   | 22,196 |   |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                                                                                                                               |   | $             | 38,348  |   |                 | $      | 35,458 |   |

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|                                                                     |   |                        |   |   |                      |   |   |   |   |
|--------------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|--------|--------|
|                                                                     |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|                                                                     |   | 2012                        |   |   | 2011                      |   |   | 2012   |   |   | 2011 |   |
| Revenue                                                                  |   |                        |   |   |                      |   |   |   |   |   |   |   |
| Farm revenue                                                             |   | $                           | -      |   |                      | $      | -      |   |   | $ | - |   |   | $ | - |   |
| Water revenue                                                            |   |                        | -      |   |                      |   | -      |   |   |   | - |   |   |   | - |   |
| Member assessments                                                       |   |                        | 36     |   |                      |   | 48     |   |   |   | 36 |   |   |   | 48 |   |
| Other income                                                             |   |                        | 10     |   |                      |   | -      |   |   |   | 11 |   |   |   | - |   |
| Total Revenue                                                            |   |                        | 46     |   |                      |   | 48     |   |   |   | 47 |   |   |   | 48 |   |
| Direct cost of revenue                                                   |   |                        | -      |   |                      |   | -      |   |   |   | - |   |   |   | - |   |
| Gross Margin (Loss)                                                      |   |                        | 46     |   |                      |   | 48     |   |   |   | 47 |   |   |   | 48 |   |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses:                                                      |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|     General and administrative                       |   |                        | 2,537  |   |                      |   | 1,773  |   |   |   | 4,631 |   |   |   | 2,836 |   |
|     Depreciation                                     |   |                        | 75     |   |                      |   | 35     |   |   |   | 128 |   |   |   | 49 |   |
|         Total operating expenses |   |                        | 2,612  |   |                      |   | 1,808  |   |   |   | 4,759 |   |   |   | 2,885 |   |
| (Loss) from operations                                                   |   |                        | (2,566 | )      |                      |   | (1,760 | )      |   |   | (4,712 | ) |   |   | (2,837 | ) |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)                                                   |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                         |   |                        | (903   | )      |                      |   | (215   | )      |   |   | (1,561 | ) |   |   | (383 | ) |
| Warrant expense                                                          |   |                        | (242   | )      |                      |   | -      |   |   |   | (297 | ) |   |   | (188 | ) |
| Other income (expense)                                                   |   |                        | (36    | )      |                      |   | 1      |   |   |   | (36 | ) |   |   | 8 |   |
|    Total other income (expense)                           |   |                        | (1,181 | )      |                      |   | (214   | )      |   |   | (1,894 | ) |   |   | (563 | ) |
| Net (Loss) from continuing operations before taxes                       |   |                        | (3,747 | )      |                      |   | (1,974 | )      |   |   | (6,606 | ) |   |   | (3,400 | ) |
| Income tax (provision) benefit                                           |   |                        | -      |   |                      |   | -      |   |   |   | - |   |   |   | - |   |
| Net (Loss) from continuing operations                                    |   |                        | (3,747 | )      |                      |   | (1,974 | )      |   |   | (6,606 | ) |   |   | (3,400 | ) |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations (Note 1)                                         |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations of discontinued real estate and mortgage business   |   |                        | -      |   |                      |   | (9     | )      |   |   | - |   |   |   | (31 | ) |
| Income tax (provision) benefit from discontinued operations              |   |                        | -      |   |                      |   | -      |   |   |   | - |   |   |   | - |   |
| (Loss) on discontinued operations                                        |   |                        | -      |   |                      |   | (9     | )      |   |   | - |   |   |   | (31 | ) |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net (Loss)                                                               |   |                        | (3,747 | )      |                      |   | (1,983 | )      |   |   | (6,606 | ) |   |   | (3,431 | ) |
| Net loss (income) attributable to the noncontrolling interest (Note 2)   |   |                        | (12    | )      |                      |   | (24    | )      |   |   | (4 | ) |   |   | (24 | ) |
| Net (Loss) attributable to Two Rivers Water Company                      |   | $                           | (3,759 | )      |                      | $      | (2,007 | )      |   | $ | (6,610 | ) |   | $ | (3,455 | ) |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) Per Share - Basic and Dilutive:                                   |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) from continuing operations                                        |   | $                           | (0.15  | )      |                      | $      | (0.09  | )      |   | $ | (0.28 | ) |   | $ | (0.16 | ) |
| (Loss) from discontinued operations                                      |   |                        | -      |   |                      |   | -      |   |   |   | - |   |   |   | - |   |
| Total                                                                    |   | $                           | (0.15  | )      |                      | $      | (0.09  | )      |   | $ | (0.28 | ) |   | $ | (0.16 | ) |
|                                                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares Outstanding:                                     |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    Basic and Dilutive                                     |   |                        | 23,531 |   |                      |   | 22,054 |   |   |   | 23,374 |   |   |   | 21,054 |   |

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|                                                                                      |   | For the six months ended June 30, |   |
|-------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                      |   | 2012                              |   |   | 2011 |   |
| Cash Flows from Operating Activities:                                                     |   |                              |   |   |   |   |
| Net (Loss)                                                                                |   | $                                 | (6,606 | ) |   | $ | (3,431 | ) |
| Adjustments to reconcile net income or (loss) to net cash (used in) operating activities: |   |                              |   |   |   |
| Depreciation (including discontinued operations)                                          |   |                              | 128    |   |   |   | 27 |   |
| Amortization of debt issuance costs and pre-paids                                         |   |                              | 869    |   |   |   | 114 |   |
| (Gain) Loss on extinguishment of notes payables                                           |   |                              | -      |   |   |   | 188 |   |
| (Gain) Loss on sale of investments and assets held                                        |   |                              | 25     |   |   |   | 27 |   |
| Stock based compensation and warrant expense                                              |   |                              | 2,036  |   |   |   | 1,456 |   |
| Stock for services                                                                        |   |                              | 648    |   |   |   | 367 |   |
| Net change in operating assets and liabilities:                                           |   |                              |   |   |   |   |   |   |
| Decrease (increase) in advances & accounts receivable                                 |   |                              | (33    | ) |   |   | (177 | ) |
| (Increase) in farm product                                                                |   |                              | (201   | ) |   |   | (135 | ) |
| (Increase) decrease in deposits, prepaid expenses and other assets                        |   |                              | (43    | ) |   |   | (32 | ) |
| Decrease in long term mortgage                                                            |   |                              | -      |   |   |   | 129 |   |
| (Decrease) Increase in accounts payable                                                   |   |                              | (247   | ) |   |   | (27 | ) |
| Increase (decrease) in accrued liabilities and other                                      |   |                              | 408    |   |   |   | 156 |   |
| Net Cash (Used in) Operating Activities                                                   |   |                              | (3,016 | ) |   |   | (1,338 | ) |
|                                                                                      |   |                              |   |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                     |   |                              |   |   |   |   |   |   |
| Purchase of property, equipment and software                                              |   |                              | (18    | ) |   |   | (707 | ) |
| Purchase of land, water shares, infrastructure                                            |   |                              | (1,394 | ) |   |   | (336 | ) |
| Proceeds from securities available for resale                                             |   |                              | 66     |   |   |   | - |   |
| Construction in Progress                                                                  |   |                              | (81    | ) |   |   | (32 | ) |
| Net Cash (Used in) Investing Activities                                                   |   |                              | (1,427 | ) |   |   | (1,075 | ) |
|                                                                                      |   |                              |   |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                     |   |                              |   |   |   |   |   |   |
| Proceeds from issuance of convertible notes                                               |   |                              | -      |   |   |   | 2,000 |   |
| Proceeds from issuance of bridge loans                                                    |   |                              | 3,994  |   |   |   | - |   |
| Payment of offering costs                                                                 |   |                              | (45    | ) |   |   | (219 | ) |
| Payment on notes payable                                                                  |   |                              | (38    | ) |   |   | (138 | ) |
| Payment for settlement of note payable                                                    |   |                              | -      |   |   |   | (105 | ) |
| Proceeds from long-term debt                                                              |   |                              | 1,096  |   |   |   | - |   |
| Options and warrants exercised                                                            |   |                              | -      |   |   |   | 613 |   |
| Net Cash Provided by Financing Activities                                                 |   |                              | 5,007  |   |   |   | 2,151 |   |
| Net Increase in Cash & Cash Equivalents                                               |   |                              | 564    |   |   |   | (262 | ) |
|                                                                                      |   |                              |   |   |   |   |   |   |
| Beginning Cash & Cash Equivalents                                                     |   |                              | 777    |   |   |   | 645 |   |
| Ending Cash & Cash Equivalents                                                        |   | $                                 | 1,341  |   |   | $ | 383 |   |

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| Continued from previous page                                            |   |
|-------------------------------------------------------------------------|--------|
| Supplemental Disclosure of Cash Flow Information                        |   |   |   |   |   |   |
| Cash paid for interest                                                  |   | $ | 1,332 |   |   | $ | 242 |   |
| Conversion of note receivable for loan on land                          |   | $ | - |   |   | $ | 295 |   |
| Common stock issued for land and water share purchase                   |   | $ | - |   |   | $ | 500 |   |
| Common stock issued in conjunction with extinguishment of notes payable |   | $ | - |   |   | $ | 1,500 |   |
| Acquisition of Orlando Reservoir for Seller financed note payable       |   | $ | - |   |   | $ | 3,000 |   |
| Stock & warrants for debt issuance costs                            |   | $ | 230 |   |   | $ | - |   |
| Equipment purchases financed                                            |   | $ | 18 |   |   | $ | 120 |   |

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| Consolidated Balance Sheet  (in thousands)                                                                                                               |   | December 31, |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                               |   | 2011         |    |   | CHANGE |   |   | 2011 RESTATED |   |
| ASSETS:                                                                                                                                                            |   |         |    |   |   |   |   |   |   |
| Current Assets:                                                                                                                                                    |   |         |    |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                          |   | $            | 777     |   |   |   |   |   | $ | 777 |   |
| Marketable securities, available for sale                                                                                                                          |   |         | 137     |   |   |   |   |   |   | 137 |   |
| Advances and accounts receivable                                                                                                                                   |   |         | 87      |   |   |   |   |   |   | 87 |   |
| Farm product                                                                                                                                                       |   |         | 43      |   |   |   |   |   |   | 43 |   |
| Deposits and other current assets                                                                                                                                  |   |         | 20      |   |   |   |   |   |   | 20 |   |
| Total Current Assets                                                                                                                                               |   |         | 1,064   |   |   |   |   |   |   | 1,064 |   |
|                                                                                                                                                               |   |         |    |   |   |   |   |   |   |   |   |
|   Property, equipment and software, net                                                                                                                  |   |         | 1,129   |   |   |   |   |   |   | 1,129 |   |
|                                                                                                                                                               |   |         |    |   |   |   |   |   |   |   |   |
| Other Assets                                                                                                                                                       |   |         |    |   |   |   |   |   |   |   |   |
| Debt issuance costs                                                                                                                                                |   |         | 663     |   |   |   |   |   |   | 663 |   |
| Land (Note 2)                                                                                                                                                      |   |         | 2,968   |   |   |   |   |   |   | 2,968 |   |
| Water rights and infrastructure                                                                                                                                    |   |         | 28,786  |   |   |   |   |   |   | 28,786 |   |
| Options on real estate and water shares                                                                                                                            |   |         | -       |   |   |   |   |   |   | - |   |
| Dam and water infrastructure construction in progress                                                                                                              |   |         | 848     |   |   |   |   |   |   | 848 |   |
| Discontinued operations - assets held for sale                                                                                                                     |   |         | -       |   |   |   |   |   |   | - |   |
| Total Other Assets                                                                                                                                                 |   |         | 33,265  |   |   |   |   |   |   | 33,265 |   |
| TOTAL ASSETS                                                                                                                                                       |   | $            | 35,458  |   |   |   |   |   | $ | 35,458 |   |
|                                                                                                                                                               |   |         |    |   |   |   |   |   |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY:                                                                                                                            |   |         |    |   |   |   |   |   |   |   |   |
| Current Liabilities:                                                                                                                                               |   |         |    |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                                                                                   |   | $            | 631     |   |   |   |   |   | $ | 631 |   |
| Current portion of notes payable                                                                                                                                   |   |         | 32      |   |   |   |   |   |   | 32 |   |
| Accrued liabilities                                                                                                                                                |   |         | 495     |   |   |   |   |   |   | 495 |   |
| Total Current Liabilities                                                                                                                                          |   |         | 1,158   |   |   |   |   |   |   | 1,158 |   |
| Notes Payable - Long Term                                                                                                                                          |   |         | 13,508  |   |   |   | (1,404 | ) |   |   | 12,104 |   |
| Total Liabilities                                                                                                                                                  |   |         | 14,666  |   |   |   | (1,404 | ) |   |   | 13,262 |   |
|                                                                                                                                                               |   |         |    |   |   |   |   |   |   |   |   |   |
| Stockholders' Equity:                                                                                                                                              |   |         |    |   |   |   |   |   |   |   |   |   |
| Common stock, $0.001 par value, 100,000,000 shares authorized, 23,258,494 and 19,782,916 shares issued and outstanding at December 31, 2011 and 2010, respectively |   |         | 23      |   |   |   |   |   |   |   | 23 |   |
| Additional paid-in capital                                                                                                                                         |   |         | 38,357  |   |   |   | 1,490 |   |   |   | 39,847 |   |
| Accumulated Comprehensive (Loss)                                                                                                                                   |   |         | (51     | ) |   |   |   |   |   |   | (51 | ) |
| Accumulated (deficit)                                                                                                                                              |   |         | (19,699 | ) |   |   | (86 | ) |   |   | (19,785 | ) |
| Total Two Rivers Water Company Shareholders' Equity                                                                                                                |   |         | 18,630  |   |   |   | 1,404 |   |   |   | 20,034 |   |
| Noncontrolling interest in subsidiary                                                                                                                              |   |         | 2,162   |   |   |   |   |   |   |   | 2,162 |   |
|         Total Stockholders' Equity                                                                                         |   |         | 20,792  |   |   |   |   |   |   |   | 22,196 |   |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                                                                                                                       |   | $            | 35,458  |   |   |   |   |   |   | $ | 35,458 |   |

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|   |   | For the three months ended, |   |   | For the six months ended, |   |
|--------|--------|-----------------------------|--------|--------|---------------------------|--------|
|   |   | June 30, 2012               |   |   | June 30, 2011             |   |   | June 30, 2012 |   |   | June 30, 2011 |   |
| HCIC   |   | $                           | 12,000 |   |                      | $      | 24,000 |   |   | $ | 4,000 |   |   | $ | 24,000 |   |

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|   | • Level 1 – Fair value based on quoted prices in active markets for identical assets or liabilities. |
|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | • Level 2 – Fair value based on significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data.  Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • Level 3 – Fair value based on prices or valuation techniques that require significant unobservable data inputs.  Inputs would normally be a reporting entity’s own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |   | Beginning balance |       |   | 2011 discount accretion |   |    | 6 months 2012 accretion |   |   | Net     |   |
|-----------------------|--------|-------------------|------------|--------|-------------------------|--------|---------|-------------------------|--------|--------|---------|--------|
| Face                  |   | $                 | 5,332,000  |   |                    |   |    |                    |   |   |    | $      | 5,332,000 |   |
| Warrant fair value    |   |              | (1,675,000 | )      |                    |   | 245,000 |                    |   |   | 424,000 |   |   |   | (2,496,000 | ) |
| Beneficial conversion |   |              | (1,490,000 | )      |
| Net                   |   | $                 | 2,167,000  |   |                    |   | 245,000 |                    |   |   | 424,000 |   |   | $ | 2,836,000 |   |

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| Note                                       |   |   | June 30, 2012 principal balance  |   |   |   | June 30, 2012 accrued interest  |   |   |   | Interest rate  |   |   Security                                     |
|--------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|-------------------------------------------|--------|--------|--------|---------------------|--------|----------------------------------------------------------|
| HCIC seller carry back                     |   | $      | 7,362,400                             |   |   | $      | -                                         |   |   |   | 6                   | %      | Shares in the HCIC                                       |
| Orlando purchase                           |   |   | 187,500                               |   |   |   | 10,500                                    |   |   |   | 7                   | %      | 188 acres of land                                        |
| Convertible debt Series A                  |   |   | 2,000,000                             |   |   |   | 50,000                                    |   |   |   | 6                   | %      | F-1 assets                                               |
| Convertible debt Series B                  |   |   | 5,332,000                             |   |   |   | 159,500                                   |   |   |   | 6                   | %      | F-2 assets                                               |
| Bridge Loan                                |   |   | 3,994,000                             |   |   |   | -                                         |   |   |   | 12                  | %      | Unsecured                                                |
| CWCB                                       |   |   | 1,114,000                             |   |   |   | 6,000                                     |   |   |   | 2.5                 | %      | Certain Orlando and Farmland assets                      |
| FNB - Dionisio Farm                        |   |   | 900,000                               |   |   |   | 2,000                                     |   |   |   | (1                  | )      | Dionisio farmland and 146.4 shares of BIDC, well permits |
| Equipment loans                            |   |   | 138,700                               |   |   |   | 700                                       |   |   |   | 5 - 8               | %      | Specific equipment                                       |
| Total                                      |   |   | 21,028,600                            |   |   | $      | 228,700                                   |   |   |   |                |   |                                                     |
| Less: Current portion                      |   |   | (10,794,600                           | )      |   |   |                                      |   |   |   |                |   |                                                     |
| Net long term due before discounts         |   |   | 10,234,000                            |   |   |   |                                      |   |   |   |                |   |                                                     |
| Less: Discount on Series B                 |   |   | (2,496,500                            | )      |   |   |                                      |   |   |   |                |   |                                                     |
| Less: Discount on Bridge Loan              |   |   | (331,700                              | )      |   |   |                                      |   |   |   |                |   |                                                     |
| Long Term portion                          |   | $      | 7,405,800                             |   |   |   |                                      |   |   |   |                |   |                                                     |
| Notes:                                     |   |   |                                  |   |   |   |                                      |   |   |   |                |
| (1) Prime rate + 1%, but not less than 6%. |   |   |                                  |

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|                                                                     |   | For the six months ended June 30, 2012 |   |   | For the six months ended June 30, 2011 |   |
|--------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                     |   | Parent                                 |   |   | Farms                                  |   |   | Water |   |   | Discontinued Operations |   |   | Total |   |   | Parent |   |   | Farms |   |   | Water |   |   | Discontinued Operations |   |   | Total |   |
| Revenue                                                                  |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assessments                                                              |   | $                                      | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | 48 |   |   |   | - |   |   |   | 48 |   |
| Farm revenue                                                             |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Water revenue                                                            |   |                                   | -      |   |                                   |   | - |   |   |   | 36 |   |   |   | - |   |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other & misc.                                                        |   |                                   | -      |   |                                   |   | - |   |   |   | 11 |   |   |   | - |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                     |   |                                   | -      |   |                                   |   | - |   |   |   | 47 |   |   |   | - |   |   |   | 47 |   |   |   | - |   |   |   | - |   |   |   | 48 |   |   |   | - |   |   |   | 48 |   |
| Less: direct cost of revenue                                             |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gross Margin                                                             |   |                                   | -      |   |                                   |   | - |   |   |   | 47 |   |   |   | - |   |   |   | 47 |   |   |   | - |   |   |   | - |   |   |   | 48 |   |   |   | - |   |   |   | 48 |   |
| Total Operating Expenses                                                 |   |                                   | 3,618  |   |                                   |   | 647 |   |   |   | 495 |   |   |   | - |   |   |   | 4,760 |   |   |   | (2,409 | ) |   |   | (248 | ) |   |   | (228 | ) |   |   | - |   |   |   | (2,885 | ) |
| Total Other Income/(Expense)                                             |   |                                   | 1,024  |   |                                   |   | 646 |   |   |   | 223 |   |   |   | - |   |   |   | 1,893 |   |   |   | (37 | ) |   |   | (100 | ) |   |   | (426 | ) |   |   | - |   |   |   | (563 | ) |
| Net (Loss) Income from continuing operations before income taxes         |   |                                   | (4,642 | )      |                                   |   | (1,293 | ) |   |   | (671 | ) |   |   | - |   |   |   | (6,606 | ) |   |   | (2,446 | ) |   |   | (348 | ) |   |   | (606 | ) |   |   | - |   |   |   | (3,400 | ) |
| Income Taxes (Expense)/Credit                                            |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                     |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) from continuing operations                             |   |                                   | (4,642 | )      |                                   |   | (1,293 | ) |   |   | (671 | ) |   |   | - |   |   |   | (6,606 | ) |   |   | (2,446 | ) |   |   | (348 | ) |   |   | (606 | ) |   |   | - |   |   |   | (3,400 | ) |
| Discontinued operations:                                                 |   |                                   |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) from operations of discontinued real estate and mortgage business |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (31 | ) |   |   | (31 | ) |
| Income tax benefit                                                       |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss on discontinued operations                                          |   |                                   | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (31 | ) |   |   | (31 | ) |
| Non-controlling interest                                                 |   |                                   | -      |   |                                   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | (24 | ) |   |   | - |   |   |   | (24 | ) |
| Net (Loss) Income                                                        |   | $                                      | (4,642 | )      |                                   |   | (1,293 | ) |   |   | (675 | ) |   |   | - |   |   |   | (6,610 | ) |   | $ | (2,446 | ) |   |   | (348 | ) |   |   | (630 | ) |   |   | (31 | ) |   |   | (3,455 | ) |
| Segment assets                                                           |   | $                                      | 1,959  |   |                                   |   | 9,135 |   |   |   | 27,254 |   |   |   | - |   |   |   | 38,348 |   |   | $ | 888 |   |   |   | 1,002 |   |   |   | 29,497 |   |   |   | 10 |   |   |   | 31,397 |   |

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| ·   | During February 70,000 shares of our common stock were issued in exchange for consulting services. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | In March, 2011 a total of 722,000 shares were issued to a creditor of the Company, as payment in full for the debt in the amount of $1,575,000.   At the time of the transaction, the fair value of the Company’s common stock exceeded the amount of debt retired, which resulted in a loss from debt retirement of $272,000. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | During April, 2011 we issued 100,000 shares of our common stock in exchange for consulting services. |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | In January, 2012 the Company issued 50,000 shares of our common stock to the independent members of the Board in exchange for Board of Director services rendered in 2011. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January, 2012 the Company issued 125,000 shares to cover 125,000 Restricted Stock Units (“RSUs”) issued to an non-executive employee under the 2011 Plan in exchange for his surrender of 250,000 options (strike price of $2.00/share) under the 2005 Plan. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January, 2012 100,000 RSU shares, as part of an overall grant of 700,000 shares, were issued to the Company’s CFO pursuant to the 2011 Plan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January, 2012 200,000 shares, as part of an overall grant of 400,000 shares, were issued to a former member of the Board of Directors. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In February, 2012 the Company issued 83,330 shares to our investor relations consultants as partial payment for their services. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | In March, 2012 the Company issued 400,000 shares to participating lenders in consideration of the Bridge Loan. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | In April 2012, the Company issued 25,000 RSU shares to the estate of a previous employee under our 2011 Plan. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 166,666 RSU shares of the total grant of 700,000 shares pursuant to the CFO’s employment agreement and to the 2011 Plan. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 200,000 RSU shares to complete a grant of 400,000 shares to a former member of the Board of Directors. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 50,000 shares to a key vendor, as partial payment for services performed. |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 166,666 RSU shares to a board member for consulting services performed from April 1, 2012 through June 30, 2012. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 100,000 shares through the exercise of warrants. |
|--------------------|-----------------------------------------------------------------------------------|

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| Optionee                                                                                                                                               |  Company Relationship |   |      | Shares  |   |   |  Date of Grant |   |   |  Vesting Date |   |   |  Performance Requirement |   |      |  Expiration Date |   |     | Exercise Price  |  Exercised to Date |   |    |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------|-----------|--------------|--------|--------|---------------------|--------|--------|--------------------|--------|--------|-------------------------------|--------|-----------|-----------------------|--------|----------|----------------------|-------------------------|--------|---------|---------|--------|
| Howard Farkas                                                                                                                                               | Former Director            |   |      | 1,023,200    |   |   | Jul 2006            |   |   | Jul 2006           |   |   | Satisfied                     |   |      | Jul 2016              |   | $        | 1.25                 | -                  |   |    |    |   |
| Employees                                                                                                                                                   | Employee                   |   |      | 40,000       |   |   | Apr 2011            |   |   |               | (1)    |   |                          |   | (2)       |                  |   | Apr 2021 |                 | $                       | 3.00   | -  |    |   |   |   |
| Wallick Associates                                                                                                                                          | Consultant                 |   |      | 600,000      |   |   |                | (3)    |   |               |   | (3)    |                          |   | Satisfied |                  |   |     | (3)                  |                    | $      | 1.25    |  - |   |   |   |   |
|                                                                                                                                                        |                       |   |      | 1,663,200    |   |   |                |   |   |               |   |   |                          |   |      |                  |   |     |                 |                    |   |    |    |   |   |   |   |   |
| Exercisable June 30, 2012                                                                                                                                   |                       |   | 1,623,200 |         |   |   |                |   |   |               |   |   |                          |   |      |                  |   |     |                 |                    |   |    |    |   |   |   |   |
| Notes:                                                                                                                                                      |                       |   |      |         |   |   |                |   |   |               |   |   |                          |   |      |                  |   |     |                 |                    |   |    |    |   |   |   |   |   |
| (1) Vests 1/3 at the end of each 12 months from Date of Grant                                                                                               |                       |   |      |         |   |
| (2) Satisfactory employee performance during vesting period                                                                                            |                       |   |      |         |   |
| (3) Various grant dates of during 2011 and 2012. When granted, the options immediately vested. Expiration is 5 years from the date of grant. |                       |   |      |         |   |

| Expected stock price volatility | 78%        |
|---------------------------------|------------|
| Risk-free interest rate         | 2.64%      |
| Expected option life (years)    | 2.2 to 5.2 |
| Expected annual dividend yield  | 0%         |

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| Grantee                                                   | Company Relationship         | RSUs issued                                         | Date of Grant | Vesting Date                                                                                            | Performance Requirement | Exercised to Date                                                                                                   |
|-----------------------------------------------------------|------------------------------|-----------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------------|-------------------------|---------------------------------------------------------------------------------------------------------------------|
| John McKowen                                              | Chairman/CEO                 | 2,480,948                                           | Oct 2010      | (1)                                                                                                     | (2)                     |                    - |
|         1,400,000 | Jan 2012                     | (1)                                                 | (3)           |                 -       |
| Gary Barber                                               | President/COO                |        1,000,000 | Oct 2010      | (1)                                                                                                     | (2)                     |                 -                   |
|         1,400,000 | Jan 2012                     | (1)                                                 | (3)           |                 -       |
| Wayne Harding                                             | CFO                          |    700,000                           | Oct 2010      | (1)                                                                                                     | (2)                     |      366,666                                                                               |
| 500,000                                                   | Jan 2012                     | (1)                                                 | (3)           |                  - |
| John Stroh                                                | Director                     | 220,236                                             | Oct 2010      | Jan 2011                                                                                                | n/a                     | 220,236                                                                                                             |
| Jolee Henry                                               | Prior Director               |   400,000                                 | Oct 2010      | Jan 2011                                                                                                | n/a                     |       400,000                                                                         |
| Employees (5)                                             | Past & Present Employees |      880,000               | Various       | (1)                                                                                                     | (4)                     |      150,000                                                                               |
|                                                      |                         | 8,981,184                                           |          |                                                                                                    |                    | 1,136,902                                                                                                           |

| Notes:                                                                                                                                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Above table does not show those shares that were cancelled or returned.                                                                                                                                                                                                               |
|  (1) Vests 1/3 at the end of each 12 months from Date of Grant                                                                                                                                                                                                                   |
|  (2)  Subject to employer deferral and employment agreement, if applicable                                                                                                                                                                                             |
|  (3)  Vests 1/3 when the Company's common stock is listed on a National Exchange and attains closing bid of $3 per share,  a second 1/3 when the share price attains $6 per share, and the final 1/3 when the share price attains $9 per share, respectively |
|  (4)  Satisfactory employee performance during vesting period                                                                                                                                                                                                          |
|  (5)  A total of ten current and past employees are in this group                                                                                                                                                                                                      |

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| Grantee                                                                                                                                                             | Company Relationship |   | Shares |      | Date of Grant | Vesting Date |      | Expiration Date |      |   | Exercise Price |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--------|--------|-----------|---------------|--------------|-----------|-----------------|-----------|--------|----------------|
| Holders of Series B Debt                                                                                                                                            | Investors            |   |   | 2,132,800 |          | Aug 2011     | Aug 2011  |            | Dec 2013  |   |           | $ | 2.50 |   |
| Broker Dealer Series B Debt                                                                                                                                         | Placement Agent      |   |   | 170,624   |          | Aug 2011     | Aug 2011  |            | Sep 2014  |   |           | $ | 2.50 |   |
| Boenning Scattergood                                                                                                                                                | Financial Advisor    |   |   | 250,000   |          | May 2011     | May 2011  |            | May 2016  |   |           | $ | 2.00 |   |
| Investor Group                                                                                                                                                      | Investors            |   |   | 300,000   |          | Feb 2012     | Mar 2012  |            |      | (1)    |           |   |   | (1) |   |
| Wedbush Securities                                                                                                                                                  | Financial Advisor    |   |   | 200,000   |          | June 2012    | June 2012 |            | June 2017 |   |           | $ | 1.20 |   |
| (1) These warrants are priced at the same price per share as the expected equity offering and expire one year after the completion of the expected equity offering. |                 |   |

| Grantee                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Company Relationship |   | Shares |      |   | Date of Grant |     |   | Vesting Date |     |   | Expiration Date |     |   | Exercise Price |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|--------|--------|-----------|--------|---------------|----------|--------|--------------|----------|--------|-----------------|----------|--------|----------------|
| HCIC Debt holders                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Creditors            |   |   | 2,336,731 |   |          |     | 2010   |         |     |   | 2010            |     |   |           | (1) |   |   |   | (1) |   |
| Holders of Series A Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Investors            |   |   | 800,000   |   |          | Feb 2011 |   |         | Feb 2011 |   |            | Mar 2014 |   |           | $ | 2.50 |   |
| Holders of Series B Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Investors            |   |   | 2,132,800 |   |          | Aug 2011 |   |         | Aug 2011 |   |            | Jun 2014 |   |           | $ | 2.50 |   |
| Holders of Bridge Loan                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Investors            |   |   | (2)       |   |          | Feb 2012 |   |         | Feb 2012 |   |            |     | (3)    |           |   |   | (3) |   |
| (1) Expiration is when the note is due which is between January and October 2013. Exercise price is from $1.00 to $1.25/share.(2) The holders have the right to convert notes at a price discussed in Note 3 so the number of shares issued will be $3,994,000 divided by price per share.(3) These conversion rights are priced at the same price per share as the expected equity offering and expire one year after the completion of the expected equity offering. |                 |   |

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

| ·   | Revenue generated from our core businesses. |
|--------------------|---------------------------------------------|

| ·   | Expenses associated with acquiring and developing our business. |
|--------------------|-----------------------------------------------------------------|

| ·   | Availability of cash to continue growing our business. |
|--------------------|--------------------------------------------------------|

| ·   | Our Business – The Company’s plans and expectations. |
|--------------------|------------------------------------------------------------------|

| ·   | Results of Operations – our financial results from the three months and six months ended June 30, 2012 versus June 30, 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Liquidity, Capital Resources and Financial Position – discussion of our current and expected financial position and liquidity detail. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Critical Accounting Policies and Use of Estimates – a summary of applicable accounting policies to our business. |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | Forward-looking statements – an identification of forward-looking statements and a description of risks that could cause actual results to differ materially from those discussed in forward-looking statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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2

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| -   | Equity proceeds through private placements of Two Rivers Water Company securities and convertible debt; |
|---------------|---------------------------------------------------------------------------------------------------------|

| -   | Limited revenue generated from operations; |
|---------------|--------------------------------------------|

| -   | Loans and lines of credit (none currently available); |
|---------------|-------------------------------------------------------|

| -   | Sales of equity investments, and |
|---------------|----------------------------------|

| -   | Proceeds from the exercise of legacy Navidec, Inc. Options |
|---------------|------------------------------------------------------------|

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| Schedule of principal payments due by year: |   |
|---------------------------------------------|--------|
|                                        |   |   |   |
| Year Ending December 31,                    |   | Principal Due |   |
| 2012                                        |   | $ | 4,068,000 |   |
| 2013                                        |   |   | 7,058,000 |   |
| 2014                                        |   |   | 7,442,000 |   |
| 2015                                        |   |   | 705,000 |   |
| 2016                                        |   |   | 55,000 |   |
| 2017 & beyond                           |   |   | 1,700,600 |   |
| Total                                       |   | $ | 21,028,600 |   |

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.  CONTROLS AND PROCEDURES

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PART II.  OTHER INFORMATION

| ·   | In April 2012, the Company issued 25,000 shares to the estate of a previous employee under our 2011 Plan. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | In April 2012, the Company issued 25,000 options with an exercise price of $1.05/share to a key vendor. |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | In May 2012, the Company issued 121,147 options with an exercise price of $1.25/share to a key vendor. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 166,666 shares of the total grant of 700,000 shares pursuant to the CFO’s employment agreement and to the 2011 Plan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 200,000 shares to complete a grant of 400,000 shares to a former member of the Board of Directors. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 50,000 shares to a key vendor, as partial payment for services performed. |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 166,666 shares to a board member for consulting services performed from April 1, 2012 through June 30, 2012. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 100,000 shares through the exercise of warrants. |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | In June 2012, the Company issued 200,000 warrants to our financial advisor for services in connection with negotiating, structuring and implementing the Stock Purchase Agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 6.   EXHIBITS

| Number | Description |   |
|--------|-------------|--------|

| 31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act     | Filed Herewith |
|------|----------------------------------------------------------------------------------------------------|----------------|
| 31.2 | Certification of Principal Financial Officer pursuant to the Section 302 of the Sarbanes-Oxley Act | Filed Herewith |
| 32.1 | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act     | Filed Herewith |
| 32.2 | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act     | Filed Herewith |

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SIGNATURES

|                              | TWO RIVERS WATER COMPANY (Registrant)                     |
|-----------------------------------|----------------------------------------------------------------|
|   Dated: August 8, 2012 |   By: /s/ John McKowen                               |
|                              | Chief  Executive Officer & Chairman of the Board |
|                              | By: /s/ Wayne Harding                                          |
|                              | Chief Financial Officer & Principal Accounting Officer     |

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