U.S. SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC  20549

                           FORM 10-QSB


[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                         EXCHANGE ACT OF 1934
              For the quarterly period ended July 31, 2001

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                        EXCHANGE ACT OF 1934

    For the transition period from ........... to ............
                     Commission File No. 33-85102

                   SEVEN FIELDS DEVELOPMENT COMPANY
            (Name of small business issuer in its charter)

             PENNSYLVANIA                25-1561828
  (State of Incorporation)   (I.R.S. Employer Identification No.)

   2200 Garden Drive, Suite 200, Seven Fields, PA  16046-7846
       (Address of principal executive office with Zip Code)

              Issuer's telephone number (724) 776-5070

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


                     APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
As of July 31, 2001 there were 3,484,392 shares of the issuer's
beneficial interests outstanding

         Transitional Small Business Disclosure Format
                    Yes ____           No  XX


                SEVEN FIELDS DEVELOPMENT COMPANY
                          Form 10-QSB
        FOR THE NINE MONTHS ENDED JULY 31, 2001 AND 2000


PART I  -  Financial Information



The following financial information is provided in response to
Items 1 and 2 of Form 10-QSB.

Item 1  -  Financial Statements



<PAGE>
                SEVEN FIELDS DEVELOPMENT COMPANY
            STATEMENTS OF NET ASSETS IN LIQUIDATION
            AS OF JULY 31, 2001 AND OCTOBER 31, 2000

                             ASSETS


                                   2001            2000


Cash                               $     66,408    $      10,078
Temporary investments                 1,880,220        1,859,367
  Total Cash &
    Temporary Investments          $  1,946,628    $   1,869,445

Accounts & notes receivable,
  net of allowances of $12,268           14,171          641,426
Capitalized development costs                          3,304,043
Capitalized house construction costs                   4,706,445
Prepaid expenses and deposits                            259,709
Property not currently under
  development                         2,073,207        2,355,000

Property, Buildings & Equipment
Equipment and furnishings                          $     459,573
Accumulated Depreciation                                 324,290

Total Property, Buildings & Equipment,
  Net Of Accumulated Depreciation                  $     135,283

    Total Assets                   $  4,034,006    $  13,271,351



                See Notes To Financial Statements





                                        2001           2000

Accrued estimated cost of liquidation    $  527,590     $  760,000
Accounts payable and accrued expenses        89,957        392,937
Accrued estimated costs related to
  developed lots and buildings sold         869,925      1,599,719
Mortgages payable                                          55,000
Customer deposits and advances                            266,728
General unsecured debt - minority
  investors                                 432,215      1,734,094
General unsecured debt -
  Seven Fields (Del), Inc.                2,114,319      8,462,873
    Total Liabilities                    $4,034,006    $13,271,351

Net Assets in Liquidation
                                         $        0    $         0






















                See Notes to Financial Statements




                 SEVEN FIELDS DEVELOPMENT COMPANY
        STATEMENTS OF CHANGES IN NET ASSETS IN LIQUIDATION
     FOR THE THREE AND NINE MONTH PERIODS ENDED JULY 31, 2001



                                               Three       Nine
                                               Months     Months

Net Assets in Liquidation, Beginning Balance $      0 $        0
Capitalized development & house construction
   costs incurred                                      1,319,145
Cost of lots and houses sold                          (9,609,606)
Payments on accounts receivable                (7,201)  (627,255)
Cost of equipment, furnishings
   and prepaid items sold                               (394,992)
Transfer & reduction of liabilities
  and customer deposits                                1,025,828
Payoff of remaining mortgage                              55,000
Changes in accounts payable
  and accrued expenses                        223,261    504,264
Increase (decrease) in cash
  and temporary investments                  (216,060)    77,183
Distribution to general unsecured
  debtholders                                          7,650,433

Net Assets in Liquidation, Ending Balance    $      0 $        0

















                See Notes to Financial Statements


               SEVEN FIELDS DEVELOPMENT COMPANY
      STATEMENT OF OPERATIONS (GOING CONCERN BASIS)
        FOR THE THREE MONTHS ENDED JULY 31, 2000

                                             2000
Gross Revenue
Rental income                             $     8,733
Fees & other operating income                  57,857
Water revenue                                   2,890
Developed lot and house sales               3,917,538
Sale of office building                       425,000

                                          $ 4,412,018

Costs & Expenses
Cost of Developed Lots &
  Houses Sold                             $ 3,526,372

Cost of Office Building Sold              $   503,270

Other Operating Expenses*                 $    61,323

General & Administrative Expenses*        $   189,796

Depreciation Expense                      $    14,085

     Operating Income                     $   117,172

Interest Expense*
Interest Income                           $    19,294

Income Before Provision
  for Income Taxes                        $   136,466

Provision for Income Taxes                $    54,585

Net Income                                $    81,881

    Net Income Per Share,
     Basic and Fully Diluted              $       .02

Weighted Average Number of Shares           3,484,392

* See details on following page.

                See Notes to Financial Statements


                 SEVEN FIELDS DEVELOPMENT COMPANY
          STATEMENT OF OPERATIONS (GOING CONCERN BASIS)
             DETAILS OF OTHER OPERATING EXPENSES AND
               GENERAL AND ADMINISTRATIVE EXPENSES
             FOR THE THREE MONTHS ENDED JULY 31, 2000


                                                     2000


Other Operating Expenses
Payroll, payroll taxes and benefits               $   174,846
Repairs & maintenance                                  29,874
Utilities                                               2,691
Insurance                                              24,850
Property taxes                                          1,594
Other operating supplies & services                     8,960

Total Other Operating Expenses                    $   242,815

Less Expenses Capitalized To
  Development and Construction                       (181,492)

Net Other Operating Expenses                      $    61,323


General And Administrative Expenses
Payroll, payroll taxes and benefits               $    90,636
Professional fees                                      14,715
Other general and administrative
  expenses                                             96,445


Total General and Administrative
  Expenses                                        $   201,796

Less Expenses Capitalized To
  Development and Construction                        (12,000)
Net General and Administrative
  Expenses                                        $   189,796



                See Notes to Financial Statements



                 SEVEN FIELDS DEVELOPMENT COMPANY
           STATEMENT OF OPERATIONS (GOING CONCERN BASIS)
              FOR THE NINE MONTHS ENDED JULY 31, 2000


                                                2000
Gross Revenue
Rental income                                $    39,531
Fees & other operating income                     65,837
Water revenue                                      9,149
Developed lot and house sales                  9,018,568
Sale of water assets & office buildings        3,125,000

                                             $12,258,085

Costs & Expenses
Cost of Developed Lots & Houses Sold         $ 8,060,862

Cost of Water Company
 and Office Buildings Sold                   $ 1,826,639

Other Operating Expenses*                    $   269,347

General & Administrative Expenses*           $   708,720

Depreciation Expense                         $    59,332

     Operating Income                        $ 1,333,185

Interest Expense*                            $       (16)
Interest Income                              $    66,508

Income Before
  Provision for Income Taxes                 $ 1,399,677

Provision for Income Taxes                   $   559,873

    Net Income                               $   839,804

    Net Income Per Share,
     Basic and Fully Diluted                 $       .24

Weighted Average Number of Shares              3,484,392

* See details on following page

                 See Notes to Financial Statements
                      SEVEN FIELDS DEVELOPMENT COMPANY
            STATEMENT OF OPERATIONS (GOING CONCERN BASIS)
                 DETAILS OF OTHER OPERATING EXPENSES
      GENERAL AND ADMINISTRATIVE EXPENSES, AND INTEREST EXPENSE
               FOR THE NINE MONTHS ENDED JULY 31, 2000

                                                             2000
Other Operating Expenses
Payroll, payroll taxes and benefits               $   499,574
Repairs & maintenance                                 122,048
Utilities                                              17,152
Insurance                                              74,950
Property taxes                                          7,809
Other operating supplies & services                    37,591

  Total Other Operating Expenses                  $   759,124

   Less Expenses Capitalized To
    Development and Construction                     (489,777)

   Net Other Operating Expenses                   $   269,347

General And Administrative Expenses
Payroll, payroll taxes and benefits               $   328,780
Professional fees                                     108,350

Other general and administrative expenses             307,590

   Total General and Administrative Expenses      $   744,720

   Less Expenses Capitalized To
    Development and Construction                      (36,000)

   Net General and Administrative Expenses        $   708,720

Interest Expense
Total Interest Expense                            $     7,808

Less Interest Capitalized to
   Development and House Construction             $    (7,792)

      Net Interest Expense                        $        16


                See Notes To Financial Statements
                 SEVEN FIELDS DEVELOPMENT COMPANY
         STATEMENT OF RETAINED EARNINGS (GOING CONCERN BASIS)
              FOR THE NINE MONTHS ENDED JULY 31, 2000






Retained earnings - beginning                    $   7,016,292

Net income for the nine month period                   839,804

Retained earnings - ending                       $   7,856,096





















                See Notes To Financial Statements











                 SEVEN FIELDS DEVELOPMENT COMPANY
           STATEMENT OF CASH FLOWS (GOING CONCERN BASIS)
             FOR THE NINE MONTHS ENDED JULY 31, 2000
                                                                         2000
Cash Flows From Operating Activities:
Net income                                        $   839,804
Provision for deferred income taxes                   559,873
Depreciation                                           59,332
Capitalized development costs incurred             (1,681,626)
Capitalized house construction
  costs incurred                                   (6,922,106)
Cost of lots & houses sold                           7,893,123
Changes in other assets & liabilities:
  Other assets                                       (162,449)
  Other liabilities                                  (246,919)
Net Cash Flows Provided By
  Operating Activities                            $   339,032

Cash Flows From Investing Activities:
Additions to property, buildings and
  equipment                                       $   (50,207)
Payments on notes receivable                          128,848
Sale of property, buildings & equipment             1,805,127
Total Cash Flows Provided By
  Investing Activities                            $ 1,883,768

Cash Flows From Financing Activities:
Repayment of general unsecured debt               $  (997,884)
Repayment of loans payable                           (866,970)
   Total Cash Flows Used In
     Financing Activities                         $(1,864,854)

Net Increase in Cash And
  Temporary Investments                           $   357,946
Cash & Temporary Investments,
  Beginning of Period                             $ 1,250,011
Cash & Temporary Investments,
  End of Period                                   $ 1,607,957

Interest Expense Included in
  Net Income Above                                $        16
Interest Paid & Included in Capitalized
  Development & House Construction Costs                7,792

Total Interest Paid                               $     7,808

Income Taxes Paid                                       None


                See Notes To Financial Statements
                SEVEN FIELDS DEVELOPMENT COMPANY
                  NOTES TO FINANCIAL STATEMENTS
             FOR THE NINE MONTHS ENDED JULY 31, 2001

Basis of Presentation

The financial statements included herein have been prepared by
the Registrant, without audit, for filing with the Securities and
Exchange Commission pursuant to the rules and regulations of said
commission. The financial information presented herein, while not
necessarily indicative of results to be expected for the year,
reflects adjustments comprising normal recurring accruals which
in the opinion of the Registrant are necessary for the fair
statement of the results for the periods indicated. This
financial information should be read in conjunction with the
financial statements and notes thereto included in the
Registrant's Annual Report for the two years in the period ended
October 31, 2000.

For comparative purposes, certain 2000 amounts have been
reclassified to conform to the presentation adopted in 2001.

Note 1 Organization And Business

Organization Structure, Management, And Objectives

Seven Fields Development Company ("The Company") was formed for
the purpose of merging with Seven Fields Development Corporation
("the Corporation") which was the surviving entity to a
bankruptcy reorganization effective November 7, 1987 and
thereafter carrying on the business of the Corporation with the
objective of maximizing the value of its assets and effecting a
dissolution and complete liquidation of its business assets and
affairs as soon as practicable. Such liquidation was expected to
occur over an extended period of time, as its assets are sold and
developed in a manner designed to maximize distributions to the
Investors as defined below.  As more fully described below,
except for two remaining commercial parcels, with consummation of
the sale of its remaining residential properties on January 2,
2001, the Company has developed and disposed of all of its
operating assets at October 31, 2000.

The sole trustee of the Company is Seven Fields Management, Inc.
which is also a wholly owned subsidiary of Seven Fields PA.  The
directors and officers of Seven Fields Management, Inc., are the
same persons who were the directors and officers of the
Corporation.  The executive officers of the Company are the same
persons who were the executive officers of the Corporation.




                SEVEN FIELDS DEVELOPMENT COMPANY
                  NOTES TO FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED JULY 31, 2001

Note One (Continued)

The Company as survivor of the merger, remains subject to the
Bankruptcy Plan under which the Corporation commenced operations
on November 7, 1987, as is more fully described below.

Business And Operations

The Company's major activities prior to January 2, 2001 were the
development of its undeveloped property located in Seven Fields
Borough, Butler County, PA, and prior to November 1999 the
operation of the municipal water service in Seven Fields Borough.
Prior to January 1998, the Company also rented townhouses located
in Seven Fields Borough.  Since 1987, the Company sold these
townhouses as individual residences and in January 1998 sold the
remaining 65 townhouses in a bulk sale.  All of these activities
focus on the single goal of maximizing the assets of the Company
and ultimately distributing such assets to its Investors in
complete liquidation at the earliest appropriate time.

Since the bankruptcy Reorganization in 1987, the Company has sold
four rental properties, repaid five million dollars of debt other
than Company Debt, and returned approximately $24 million to its
Investors through debt repayments.

Liquidation Plan

On January 2, 2001 the Company consummated the sale of all of its
remaining residential properties at Seven Fields, Butler County,
Pennsylvania and Nevillewood, Allegheny County, Pennsylvania to
Hanna Holdings, Inc. (HANNA).

Effective January 2, 2001, with the consummation of the sale of
its residential real estate assets to HANNA, the Company ceased
all operating activities.  All of its employees except certain
officers and board members terminated their employment with the
Company.  All former employees of the Company were offered
employment with HANNA at the time of this sale.

The above described sale of these remaining residential realty
assets effectively concludes thirteen years of development,










                 SEVEN FIELDS DEVELOPMENT COMPANY
                   NOTES TO FINANCIAL STATEMENTS
              FOR THE NINE MONTHS ENDED JULY 31, 2001


Note One (Continued)

construction, and disposal followed by repayment to the Company's
debtholders and shareholders with the proceeds of such sales.

With the conclusion of this sale the Company's principal assets
consist of cash and temporary investments which it intends except
for amounts required to be withheld for meeting its other
liabilities and the estimated expenses of liquidation and
dissolution, to distribute to the holders of its general
unsecured debt, and two remaining commercial parcels that it
expects to sell during 2001.

The Plan Of Reorganization & The Company Subsequent to November
7, 1987

The Plan on November 7, 1987, transferred 100% ownership of the
Debtors from the four former stockholders to the more than 2,600
Investors, merged the Debtors into the Company, removed the
former shareholders from having involvement in the management or
ownership of the reorganized company, and required the repayment
in full of all debt secured to the creditors on the same terms
then in existence.  The Plan also, despite assets with a fair
market value far less than the obligation of the Company to the
Investors, did not reduce the face amount of the Company's
obligation to those Investors.  The liability to the Investors,
representing 95% of the Investors' claims, remained a general
unsecured debt of the Company and the Company waived discharge of
such debt.  These non-discharged debts are subordinated to any
existing liens and priorities and any future secured debt, and
the claimant-creditor, his heirs, assigns or successors, may not
file suit or take any judgement, or undertake any collection
activities.

The general, unsecured debt issued to the Investors bears no
interest and is subordinate to existing and future secured debt
of the Company.  As indicated above, the Plan specified that this
debt would be paid as soon as possible. Since, at October 31,
2000, the Company could reasonably estimate total funds which
will be available to distribute to the holders of its general
unsecured debt, the Company has reduced its general unsecured
debt by $40,022,088 to $10,196,967 in accordance with its





                    SEVEN FIELDS DEVELOPMENT COMPANY
                       NOTES TO FINANCIAL STATEMENTS
                FOR THE NINE MONTHS ENDED JULY 31, 2001



Note One (Continued)

adoption of the liquidation basis of accounting at October 31,
2000. Upon liquidation, payment of this general, unsecured debt
ranks behind payment of existing and future secured debt of the
Company but before payment to holders of Company Shares.

The restructuring effected in 1995, on a consolidated basis and
at the parent company level, eliminated 83% of the debt
outstanding to Investors through their exchange of their debt for
common stock of Seven Fields (PA), Inc.

Because of the requirement of retaining proportionality and the
priority of the debt over Company shares, the debt prior to the
adoption of the liquidation basis of accounting at October 31,
2000, has remained unchanged at the Company level, although 83%
of such debt is held by the Company's parent.

Note 2 Summary of Significant Accounting Policies

As a result of the imminency of complete liquidation, the Company
adopted the liquidation basis of accounting effective October 31,
2000.  This basis of accounting is considered appropriate when,
among other things, liquidation of a company seems imminent and
the net realizable value of assets are reasonably determinable.
Under this basis of accounting, assets are valued at their
estimated net realizable values and liabilities are valued at
their estimated settlement amounts. The conversion from the going
concern to liquidation basis accounting has required management
to make significant estimates and judgements.  In order to record
assets at estimated net realizable values and liabilities at
estimated settlement amounts under liquidation basis accounting
on October 31, 2000, the Company recorded the following
adjustments (1)recorded estimated net profit from the sale of the
remaining residential real estate to HANNA and the two remaining
commercial parcels in the amount of $476,054, (2) recorded the
estimated cost of liquidation and dissolution in the amount of
$760,000, (3) recorded a net reduction in the Company's general
unsecured debt of $40,022,088 to reflect the total residual
amount of funds available for final repayment of such debt.








                SEVEN FIELDS DEVELOPMENT COMPANY
                 NOTES TO FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED JULY 31, 2001

Note Two (Continued)

Additionally, during the fiscal years preceding the adoption of
liquidation basis accounting, the Company has attempted to
estimate and accrue for obligations related to its
responsibilities to various governmental agencies and others
relating to its activities as a developer and home builder.

On December 15, 2000, the Company distributed $2,328,393 to
debtholders and on February 9, 2001, an additional $5,322,040 was
distributed. The latter amount represents substantially all of
the proceeds from the HANNA transaction, except those amounts
necessary to fund the Company's obligations during the
liquidation period.

The amount and timing of any future distributions on the debt
subsequent to the distribution of most of the HANNA proceeds will
depend upon a variety of factors including, but not limited to
the actual proceeds from the sale of the two remaining commercial
parcels and any other net assets, the ultimate settlement amount
of the Company's liabilities and obligations, and the actual
costs incurred in connection with carrying out the plan of
liquidation.

It is possible, that at some date before the liquidation plan has
been completed that the Company will form a liquidating trust and
the remaining net assets will be transferred to the trust so as
to more efficiently facilitate the plan of liquidation.  If such
a liquidating trust is utilized any assets remaining at the
conclusion of the liquidation plan would be distributed by the
trust as a final payment on the balance of the general unsecured
debt.

Use of Estimates

The presentation of the Company's financial statements requires
management to make estimates and assumptions that affect the
amounts reported at the date of the financial statements for
assets, liabilities, revenues and expenses and disclosures of
contingencies.  Actual results could differ from those estimates.
The Company makes significant estimates related to common area
development costs that it expects to incur in the future, and
costs to complete specific subdivision of lots from which lots
are being sold.  In recording the liquidation adjustments
upon adoption of liquidation accounting at October 31, 2000, the


                SEVEN FIELDS DEVELOPMENT COMPANY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED JULY 31, 2001

Note Two (Continued)

Company's management made significant estimates related to the
disposition of the Company's remaining properties, settlements of
its liabilities and the costs to be incurred upon dissolution.

Cash And Cash Equivalents (Cash And Temporary Investments)

For purposes of the statement of cash flows, the Company
considers all highly liquid investments, not otherwise
restricted, with a maturity of three months or less at the time
of purchase to be cash equivalents.

Financial Condition

Pursuant to an agreement signed in December, 1999, the sale to
Hanna Holdings, Inc. occurred on January 2, 2001, generating
gross proceeds of nearly $6.8 million.  Assets sold included the
remaining residential developed lots for nearly $2.9 million,
completed and under construction dwelling units at Seven Fields
and Nevillewood for almost $3.6 million, and home construction
equipment, plans, and prepaid expenses for nearly $300,000.  The
Company paid Hanna Holdings, Inc. over $449,000 for future
development liabilities associated with the lots purchased and
forwarded almost $182,000 for customer deposits on lot and house
agreements. Additionally, selling costs associated with the
transaction were over $87,000.  Therefore, net cash available
from the transaction was approximately $6.1 million.

Pursuant to the same agreement a 40 acre undeveloped parcel south
of Route 228 was sold to Hanna Holdings, Inc. in December, 2000
for $580,000 and a real estate sales center building was sold in
the prior fiscal year of $425,000.

In December, 2000, the Company repaid over $2.3 million of
general unsecured debt and in February 2001, the Company repaid
an additional $5.3 million.

Part II - Item 1     Legal Proceedings

Litigation was initiated against the Company by A.R. Building
Company to suspend the operation of two agreements of sale, under
which A.R. Building had agreed to purchase several parcels of
commercial property from the Company, pending the resolution of a
boundary dispute between the Borough of Seven Fields and
neighboring Adams Township.  In turn, the Company initiated
litigation against the Borough of Seven Fields and Adams Township
in an attempt to accelerate a resolution of the boundary dispute.

                SEVEN FIELDS DEVELOPMENT COMPANY
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE NINE MONTHS ENDED JULY 31, 2001

Legal Proceedings (Continued)

Subsequently, the Borough and the Township reached an an
agreement on the location of their mutual boundary.  The
agreement will become effective upon Court approval, which is
expected promptly.  Upon Court approval of the agreement, all
litigation will be withdrawn.

OTHER INFORMATION

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

    (a) Exhibits
              None

    (b) Reports on Form 8-K
              No reports on Form 8-K were filed during the
       quarter ended July 31, 2001.


                                SIGNATURES



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



Seven Fields Development Company


Date: September 13, 2001

By: PAUL VOYTIK, PRESIDENT
   Paul Voytik, President



Date: September 13, 2001

By:LYNN HOFFMAN-KYLE, CHIEF FINANCIAL OFFICER
   Lynn Hoffman-Kyle, Chief Financial Officer