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

                                   FORM 10-QSB

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

                     For the Period ended September 30, 2007

                        Commission File Number 333-145876


                              DESCANSO AGENCY, INC.
                 (Name of small business issuer in its charter)

        Nevada                                                  20-8766002
(State of incorporation)                                (IRS Employer ID Number)

                       4203 Genesee Avenue, Suite 103 #510
                               San Diego, CA 92117
             (Address and Telephone Number of Registrant's Principal
               Executive Offices and Principal Place of Business)

                                   Raul Getino
                       4203 Genesee Avenue, Suite 103 #510
                               San Diego, CA 92117
                             Telephone: 775-352-4084
                               Fax: (775) 201-2790
            (Name, Address and Telephone Number of Agent for Service)

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

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

There were 4,750,000 shares of Common Stock outstanding as of September 30,
2007.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS

                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                                 Balance Sheet
                              Stated in US Dollars

<TABLE>
<CAPTION>
                                                                 Unaudited           Audited
                                                                September 30,        June 30,
                                                                    2007               2007
                                                                  --------           --------
<S>                                                               <C>                <C>
ASSETS

CURRENT ASSETS
  Cash                                                            $ 12,616           $ 18,745
                                                                  --------           --------
Total Current Assets                                              $ 12,616           $ 18,745

TOTAL ASSETS                                                      $ 12,616           $ 18,745
                                                                  ========           ========

LIABILITIES & STOCKHOLDERS' EQUITY

LIABILITIES
  Loan Payable (From Director)                                    $  2,090           $  2,090
                                                                  --------           --------

TOTAL LIABILITIES                                                 $  2,090           $  2,090

STOCKHOLDERS' EQUITY
  50,000,000 shares Common Stock Authorized at
   $0.001/par value
  4,750,000 shares issued and outstanding @ Sep 30, 2007          $  4,750           $  4,750
  Additional Paid-in Capital                                      $ 14,250           $ 14,250
  Deficit accumulated                                             $ (8,474)          $ (2,345)
                                                                  --------           --------

TOTAL STOCKHOLDERS' EQUITY                                        $ 10,526           $ 16,655
                                                                  --------           --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 12,616           $ 18,745
                                                                  ========           ========
</TABLE>

                                       2
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                            Statement of Operations
                             Stated in U.S. Dollars

                                                               Inception
                                                             (April 3, 2007)
                                       Three Mos Ended           Through
                                        September 30,         September 30,
                                            2007                  2007
                                         -----------           -----------
REVENUES
  Revenues                               $        --           $        --
                                         -----------           -----------
TOTAL REVENUES                                    --                    --

OPERATING EXPENSE
  Administrative Expense                 $     6,129           $     8,474
                                         -----------           -----------

NET (LOSS)                               $    (6,129)          $    (8,474)
                                         ===========           ===========

Basic earnings per share                      <$.001                <$.001

Weighted average number of
 common shares outstanding                <4,750,000            <4,750,000


                                       3
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                        Changes in Stockholders' Equity
              Inception (April 3, 2007 through September 30, 2007)
                             Stated in U.S. Dollars

<TABLE>
<CAPTION>
                                                         Common     Additional    Deficit Accum
                                           Common        Stock        Paid-in        During
                                           Stock         Amount       Capital       Dev Stage        Total
                                           -----         ------       -------       ---------        -----
<S>                                     <C>           <C>          <C>            <C>            <C>
Stock issued for cash June 29, 2007       4,750,000     $  4,750     $ 14,250                      $ 19,000
Net (Loss) June 30, 2007                                                            $ (2,345)
                                        -----------     --------     --------       --------       --------
BALANCE JUNE 30, 2007                     4,750,000     $  4,750     $ 14,250       $ (2,345)      $ 16,655
                                        -----------     --------     --------       --------       --------

Net (Loss) September 30, 2007                                                       $ (6,129)
                                        -----------     --------     --------       --------       --------

BALANCE SEPTEMBER 30, 2007                4,750,000     $  4,750     $ 14,250       $ (8,474)      $ 10,526
                                        ===========     ========     ========       ========       ========
</TABLE>



                                       4
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                             Statement of Cash Flow
                             Stated in U.S. Dollars

<TABLE>
<CAPTION>
                                                                                 Inception
                                                                              (April 3, 2007)
                                                           Three Mos Ended        Through
                                                             September 30,      September 30,
                                                                 2007               2007
                                                               --------           --------
<S>                                                            <C>                <C>
CASH FLOW FROM OPERATING ACTIVITIES
  Net income (loss)                                            $ (6,129)          $ (8,474)
  Loan Payable                                                                       2,090

CASH FLOW FROM INVESTING ACTIVITIES
  Net cash provided by (used in) investing activities

CASH FLOW FROM FINANCING ACTIVITIES
  Issuance of Common Stock                                                          19,000
                                                               --------           --------

Net increase (decrease) in cash

Cash at beginning of period                                    $ 18,745
                                                               --------           --------
Cash at end of period                                          $ 12,616           $ 12,616
                                                               ========           ========
</TABLE>


                                       5
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            AS AT SEPTEMBER 30, 2007


NOTE 1 - NATURE AND PURPOSE OF BUSINESS

Descanso  Agency,  Inc. (the "Company") was  incorporated  under the laws of the
State of Nevada on April 3, 2007.  The  Company's  activities  to date have been
limited to  organization  and capital  formation.  The Company is "a development
stage  company"  that intends to open travel  agencies  specializing  in Mexican
tourism.

NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with maturity
of three months or less to be cash equivalents.

REVENUE RECOGNITION

The  Company  considers  revenue  to be  recognized  at the time the  service is
performed.

USE OF ESTIMATES

The preparation of the Company's  financial  statements  requires  management to
make estimates and assumptions that affect the amounts reported in the financial
statements  and  accompanying  notes.  Actual  results  could  differ from these
estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The  Company's  short-term  financial  instruments  consist  of  cash  and  cash
equivalents  and  accounts  payable.  The  carrying  amounts of these  financial
instruments  approximate  fair  value  because of their  short-term  maturities.
Financial instruments that potentially subject the Company to a concentration of
credit risk  consist  principally  of cash.  During the year the Company did not
maintain cash deposits at financial  institution in excess of the $100,000 limit
covered by the Federal Deposit Insurance Corporation.  The Company does not hold
or issue financial  instruments  for trading  purposes nor does it hold or issue
interest rate or leveraged derivative financial instruments.

                                       6
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            AS AT SEPTEMBER 30, 2007


NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES (continued)

EARNINGS PER SHARE

Basic Earnings per Share ("EPS") is computed by dividing net income available to
common  stockholders  by the  weighted  average  number of common  stock  shares
outstanding  during the year.  Diluted EPS is  computed  by dividing  net income
available to common stockholders by the weighted-average  number of common stock
shares outstanding  during the year plus potential dilutive  instruments such as
stock  options  and  warrant.  The effect of stock  options  on  diluted  EPS is
determined  through  the  application  of the  treasury  stock  method,  whereby
proceeds received by the Company based on assumed  exercises are  hypothetically
used to repurchase the Company's common stock at the average market price during
the period.  Loss per share is  unchanged  on a diluted  basis since the assumed
exercise of common stock equivalents would have an anti-dilutive effect.

INCOME TAXES

The Company uses the asset and liability  method of accounting  for income taxes
as required by SFAS No. 109 "Accounting for Income Taxes". SFAS 109 requires the
recognition of deferred tax assets and  liabilities  for the expected future tax
consequences of temporary  differences  between the carrying amounts and the tax
basis of  certain  assets  and  liabilities.  Deferred  income  tax  assets  and
liabilities  are computed  annually  for the  difference  between the  financial
statement and tax bases of assets and liabilities that will result in taxable or
deductible amounts in the future, based on enacted tax laws and rates applicable
to the periods in which the  differences  are expected to affect taxable income.
Valuation  allowances  are  established  when  necessary to reduce  deferred tax
assets to the amount  expected  to be  realized.  Income tax  expense is the tax
payable or refundable for the period, plus or minus the change during the period
in deferred tax assets and liabilities.

Deferred income taxes may arise from temporary differences resulting from income
and  expense  items  reported  for  financial  accounting  and tax  purposes  in
different  periods.  Deferred  taxes are  classified as current or  non-current,
depending  on the  classification  of the assets and  liabilities  to which they
relate.  Deferred taxes arising from temporary differences that are not related

                                       7
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            AS AT SEPTEMBER 30, 2007


NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES (continued)

to an asset or liability are classified as current or  non-current  depending on
the periods in which the  temporary  differences  are  expected to reverse.  The
Company had no  significant  deferred  tax items arise during any of the periods
presented.

CONCENTRATION OF CREDIT RISK

The Company does not have any concentration of related financial credit risk.

RECENT ACCOUNTING PRONOUNCEMENTS

The  Company  does not  expect  that the  adoption  of other  recent  accounting
pronouncements will have a material impact to its financial statements.

NOTE 3 - COMMON STOCK

Transactions,  other than  employees'  stock  issuance,  are in accordance  with
paragraph 8 of SFAS 123. Thus issuances shall be accounted for based on the fair
value of the consideration received. Transactions with employees' stock issuance
are in accordance with paragraphs  (16-44) of SFAS 123. These issuances shall be
accounted for based on the fair value of the consideration  received or the fair
value  of  the  equity   instruments   issued,  or  whichever  is  more  readily
determinable.

On June 28, 2007 the Company  issued  3,750,000  shares of common  stock to Raul
Getino,  the  Company's  sole  officer and  director,  for cash in the amount of
$0.004 per share for a total of $15,000.

On June 29, 2007 the Company sold 1,000,000 shares of its common stock at $0.004
per share to 2 independent investors for proceeds of $4,000.

NOTE 4 - RELATED PARTY TRANSACTIONS

Raul  Getino,  the sole  officer and director of the Company may, in the future,
become involved in other business  opportunities as they become available,  thus

                                       8
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            AS AT SEPTEMBER 30, 2007


NOTE 4 - RELATED PARTY TRANSACTIONS (continued)

he may face a conflict in selecting  between the Company and his other  business
opportunities.  The Company has not  formulated a policy for the  resolution  of
such conflicts.

Raul Getino, will not be paid for any underwriting  services that he performs on
behalf of the Company with respect to the Company's SB-2 offering.  He will also
not  receive  any  interest  on any funds that he may advance to the Company for
offering  expenses  prior to the offering being closed which will be repaid from
the proceeds of the offering.

While the company is seeking additional  capital,  Mr. Getino has advanced funds
to the  company  to pay for  organizational  costs  incurred.  These  funds  are
interest free with no specific terms of repayment. The balance due Mr. Getino on
September 30, 2007 was $2,090.

NOTE 5 - GOING CONCERN

The accompanying  financial  statements have been prepared  assuming the Company
will  continue  as a going  concern.  As  shown  in the  accompanying  financial
statements, the Company has no sales and has incurred a net loss of $8,474 since
inception.  The future of the  Company is  dependent  upon its ability to obtain
financing and upon future  profitable  operations  form the  development  of its
travel  agencies.  The  financial  statements  do not  include  any  adjustments
relating to the  recoverability  and  classifications of recorded assets, or the
amounts of and  classification  of  liabilities  that might be  necessary in the
event the Company cannot continue in existence.

Management plans to raise additional funds through debt or equity offerings. The
Company's  SB-2  registration  statement  with the U.S.  Securities and Exchange
Commission  of 4,500,000  shares for sale at $.004 per share to raise capital of
$18,000 to implement their business plan was declared effective on September 17,
2007.  There is no guarantee  that the capital raised will be sufficient or that
any future offerings, if necessary, would be successful.

                                        9
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                            AS AT SEPTEMBER 30, 2007


NOTE 6 - SUBSEQUENT EVENT

The offering pursuant to the SB-2 Registration Statement filed by the company on
September 4, 2007,  and declared  effective on September 17, 2007, was completed
on October 22, 2007 selling  4,500,000 shares to 36 un-affiliated  investors for
total proceeds to the company of $18,000.




                                       10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are a development stage company and have generated no revenue to date.

We incurred operating expenses of $6,129 for the three-month period ended
September 30, 2007. These expenses consisted of general and administrative
expenses and costs associated with the filing of our SB-2 Registration
Statement.

Our cash at September 30, 2007 was $12,616. We had liabilities of $2,090 as of
September 30, 2007, consisting of a loan payable to our director. The loan is
interest free with no specific terms of repayment.

Cash provided by financing activities from inception though September 30, 2007,
was $19,000. These funds consisted of $15,000 from the sale of our common stock
to our director, Raul Getino, who purchased 3,750,000 shares of common stock at
$.004 per share on June 28, 2007, and $4,000 from the sale of 1,000,000 shares
our common stock at $.004 per share to 2 independent investors in a private
offering completed on June 29, 2007.

Subsequent to our September 30, 2007, we completed our offering of 4,500,000
shares pursuant to an SB-2 registration statement which was declared effective
on September 17, 2007. The offering was completed and closed on October 22, 2007
for total proceeds of $18,000.

Our auditors have expressed their doubt about our ability to continue as a going
concern unless we are able to generate profitable operations.

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance at September 30, 2007 was $12,616. Our business plan
requirements were based on our ability to complete our offering to raise
$18,000, which we were able to do. The offering was completed on October 22,
2007. No salary is planned to be paid to the founding principal or any other
employees until January 2008.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

PLAN OF OPERATION

We have generated no revenues since inception and have incurred $8,474 in
expenses as of September 30, 2007.

                                       11
<PAGE>
The following table provides selected financial data about our company for the
period from the date of incorporation through September 30, 2007.

                     Balance Sheet Data:           9/30/07
                     -------------------           -------

                     Cash                          $12,616
                     Total assets                  $12,616
                     Total liabilities             $ 2,090
                     Shareholders' equity          $10,526

Other than the 4,500,000 shares offered pursuant to our registration statement,
no other source of capital has been identified or sought. Our director has
verbally agreed to loan the company funds to continue operations, if necessary,
prior to generating revenues from operations, but there is no formal commitment,
arrangement or legal obligation requiring him to advance or loan funds to us.

We have completed the following: established our corporate existence, completed
our registration filings, raised capital, outlined our business plan stages and
completed an offering to generate funding needed for implementing our business
plan. Office space, equipment, and administrative services are provided by our
sole founding principal. We have not yet hired any salaried employees. We have
continued to develop our business plan.

During the next twelve months, we expect to take the following steps in
connection with the further development of our business and the implementation
of our plan of operations:

BY JANUARY 2008 -

Pay a rent deposit for an office - $400, pay first director's fee -$300,
purchase furniture, equipment, and computer system - $4,500. Total $5,200.

BY MAY 2008 -

Pay office rent - $1,200, pay director's fee - $1,200, begin Internet website
-$500, begin marketing - $500. Total $3,400

BY SEPTEMBER 2008 -

Pay office rent - $1,200, pay director's fee - $1,200, pay contract travel
agents - $4,000, Internet website development and expense -$2,000, marketing
expense - $1,000. Total $9,400.

TOTAL THROUGH SEPTEMBER 2008 - $18,000

We expect to operate at a loss during our initial development/operating period.

                                       12
<PAGE>
For customer service and call in sales, we plan to utilize the services of our
founder and two contract agents who will be compensated on a contract basis from
any bookings created exclusively by the agent on an equal commission split. We
will provide our home-based agents with an 800 phone line and internet service
to access our website for sales to the agent's customers and be available to all
customers for customer service. Customer service is expected to be minimal
during this stage due to the automated nature of the website and the anticipated
low level of site usage.

SIGNIFICANT ACCOUNTING POLICIES

The un-audited financial statements as of September 30, 2007 included herein
have been prepared without audit pursuant to the rules and regulations of the
U.S. Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with general accepted accounting procedures have been condensed or omitted
pursuant to such rules and regulations. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. It is suggested that these financial
statements be read in conjunction with our June 30, 2007 audited financial
statements and notes thereto, which can be found in our Form SB-2 Registration
Statement on the SEC website at www.sec.gov under our SEC File Number
333-145876.

Our Management's Discussion and Analysis of Financial Condition and Results of
Operations section discusses our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States
of America. The preparation of the financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results may differ
from these estimates.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with maturity
of three months or less to be cash equivalents.

REVENUE RECOGNITION

The Company considers revenue to be recognized at the time the service is
performed.

USE OF ESTIMATES

The preparation of the Company's financial statements requires management to
make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from these
estimates.

                                       13
<PAGE>
FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's short-term financial instruments consist of cash and cash
equivalents and accounts payable. The carrying amounts of these financial
instruments approximate fair value because of their short-term maturities.
Financial instruments that potentially subject the Company to a concentration of
credit risk consist principally of cash. During the year the Company did not
maintain cash deposits at financial institution in excess of the $100,000 limit
covered by the Federal Deposit Insurance Corporation. The Company does not hold
or issue financial instruments for trading purposes nor does it hold or issue
interest rate or leveraged derivative financial instruments.

EARNINGS PER SHARE

Basic Earnings per Share ("EPS") is computed by dividing net income available to
common stockholders by the weighted average number of common stock shares
outstanding during the year. Diluted EPS is computed by dividing net income
available to common stockholders by the weighted-average number of common stock
shares outstanding during the year plus potential dilutive instruments such as
stock options and warrant. The effect of stock options on diluted EPS is
determined through the application of the treasury stock method, whereby
proceeds received by the Company based on assumed exercises are hypothetically
used to repurchase the Company's common stock at the average market price during
the period. Loss per share is unchanged on a diluted basis since the assumed
exercise of common stock equivalents would have an anti-dilutive effect.

INCOME TAXES

The Company uses the asset and liability method of accounting for income taxes
as required by SFAS No. 109 "Accounting for Income Taxes". SFAS 109 requires the
recognition of deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying amounts and the tax
basis of certain assets and liabilities. Deferred income tax assets and
liabilities are computed annually for the difference between the financial
statement and tax bases of assets and liabilities that will result in taxable or
deductible amounts in the future, based on enacted tax laws and rates applicable
to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established when necessary to reduce deferred tax
assets to the amount expected to be realized. Income tax expense is the tax
payable or refundable for the period, plus or minus the change during the period
in deferred tax assets and liabilities.

Deferred income taxes may arise from temporary differences resulting from income
and expense items reported for financial accounting and tax purposes in
different periods. Deferred taxes are classified as current or non-current,
depending on the classification of the assets and liabilities to which they
relate. Deferred taxes arising from temporary differences that are not related
to an asset or liability are classified as current or non-current depending on
the periods in which the temporary differences are expected to reverse. The
Company had no significant deferred tax items arise during any of the periods
presented.

                                       14
<PAGE>
CONCENTRATION OF CREDIT RISK

The Company does not have any concentration of related financial credit risk.

RECENT ACCOUNTING PRONOUNCEMENTS

The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact to its financial statements.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have not identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

                           PART II - OTHER INFORMATION

ITEM 6. EXHIBITS

The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in our Form SB-2 Registration Statement, filed under
SEC File Number 333-145876, at the SEC website at www.sec.gov:

Exhibit No.                        Description
-----------                        -----------

    3.1           Articles of Incorporation*
    3.2           Bylaws*
   31.1           Sec. 302 Certification of Chief Executive Officer
   31.2           Sec. 302 Certification of Chief Financial Officer
   32.1           Sec. 906 Certification of Chief Executive Officer
   32.2           Sec. 906 Certification of Chief Financial Officer

                                       15
<PAGE>
                                   SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned on November 4, 2007, thereunto duly authorized.


By: /s/ Raul Getino
   --------------------------------------------------------
   RAUL GETINO
   President, Chief Executive Officer,
   and Chairman of the Board of Directors


By: /s/ Raul Getino
   --------------------------------------------------------
   RAUL GETINO
   Chief Financial Officer and Principal Accounting Officer


                                       16