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 April 30, 1998.

[ ] 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, Mars, 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 May 29, 1998 there were 3,484,560 shares of the issuer's
                   beneficial interests outstanding

Transitional Small Business Disclosure Format
  Yes ____           No  XX

<PAGE>
<TABLE>
                    SEVEN FIELDS DEVELOPMENT COMPANY
                                    

                               Form 10-QSB

            FOR THE SIX MONTHS ENDED APRIL 30, 1998 AND 1997


                    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



                     SEVEN FIELDS DEVELOPMENT COMPANY
                               BALANCE SHEETS
                AS OF APRIL 30, 1998 AND OCTOBER 31, 1997
<CAPTION>
                                  ASSETS

                                           1998                 1997
<S>                                   <C>                  <C>
Cash                                  $     415,093        $     225,807
Temporary investments                       283,085              195,710  
  Total Cash & Temporary Investments  $     698,178        $     421,517

Accounts and notes receivable, net of
  allowances of $58,789 and $57,589          164,621              197,690
Mortgage notes receivable                    548,266               61,114
Capitalized development costs              4,813,187            5,365,267
Capitalized house construction costs,
  net of allowances                        3,153,591            3,687,231
Prepaid expenses and deposits                 69,113              391,600
Property not currently under
  development, net of
  allowances of $123,788                   3,165,530            3,077,133
Tenant security deposits                                           40,740
Deferred income tax assets                 2,648,284            3,483,784

Property, Buildings &
  Equipment
Land                                   $     481,860        $     359,725
Buildings                                  1,294,346            3,373,859
Equipment and furnishings                    869,235            1,393,155 
Construction in progress                                          449,757

   Total Property, Buildings and
      Equipment                        $   2,645,441        $   5,576,496
   Accumulated Depreciation                (529,541)          (2,055,493)

   Total Property, Buildings and
      Equipment, Net Of
      Accumulated Depreciation         $   2,115,900        $   3,521,003

             Total Assets              $  17,376,670        $  20,247,079
</TABLE>
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<TABLE>

                 LIABILITIES AND SHAREHOLDERS' DEFICIENCY
                                LIABILITIES
<CAPTION>
                                                1998            1997
<S>                                        <C>              <C>
Accounts payable and accrued expenses      $     141,426    $    696,329
Accrued estimated costs related to
  developed lots and townhouses sold             852,357         812,427
Notes payable - credit lines                     529,000         918,157
Mortgages payable                                959,737       1,785,570
Customer deposits and advances                   130,307         133,046
Tenant security deposits                                          40,740
General unsecured debt - minority
  investors                                    9,501,710       9,897,933
General unsecured debt -
  Seven Fields (Del), Inc.                    46,374,702      48,306,984
    Total Liabilities                      $  58,489,239    $ 62,591,186

<CAPTION>

                         SHAREHOLDERS' DEFICIENCY
<S>                                         <C>             <C>
Shares of beneficial interest, $1 par value
  5,000,000 shares authorized,
  3,484,560 shares issued and outstanding   $  3,484,560    $  3,484,560
Shareholders' deficit - excess of
  non-discharged debt over assets on
  November 7, 1987 (Date of reorganization)  (52,235,399)    (52,235,399)
Retained earnings, since November 7, 1987
  (Date of reorganization)                     7,638,270       6,406,732
 
    Total Shareholders' Deficiency          $(41,112,569)   $(42,344,107)



      Total Liabilities and
       Shareholders' Deficiency             $ 17,376,670    $ 20,247,079
</TABLE>
<PAGE>
<TABLE>


                     SEVEN FIELDS DEVELOPMENT COMPANY
                         STATEMENTS OF OPERATIONS
            FOR THE THREE MONTHS ENDED APRIL 30, 1998 AND 1997
<CAPTION>

                                                1998            1997
<S>                                        <C>             <C>
Gross Revenue
Rental income                              $    18,613     $   126,405
Fees & other operating income                   13,339          17,175
Water revenue                                   41,808          36,662
Developed lot and house sales                1,584,362       1,174,366
Townhouse unit sales                           167,686         308,574     
                                           $ 1,825,808     $ 1,663,182      

Costs & Expenses
Cost of Developed Lots &
  Houses Sold                              $ 1,411,208     $ 1,057,075

Cost of Townhouses Sold                    $    69,329     $   168,512

Other Operating Expenses*                  $   123,653     $   168,516

General & Administrative Expenses*         $   217,224     $   191,736

Depreciation Expense                       $    34,922     $    72,074

     Operating Income (Loss)               $   (30,528)    $     5,269

Interest Expense*                          $    (9,152)    $   (36,203)
Interest Income                            $    20,662     $     6,954

Net Loss                                   $   (19,018)    $   (23,980)

    Net Loss Per Share,
     Basic and Fully Diluted              $   (.01)       $   (.01)

Weighted Average Number of Shares            3,484,560       3,484,560


<FN>
* See details on following page.
</TABLE>
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<TABLE>

                      SEVEN FIELDS DEVELOPMENT COMPANY
                   STATEMENTS OF OPERATIONS - CONTINUED
                   DETAILS OF OTHER OPERATING EXPENSES,
         GENERAL AND ADMINISTRATIVE EXPENSES, AND INTEREST EXPENSE
            FOR THE THREE MONTHS ENDED APRIL 30, 1998 AND 1997
<CAPTION>
                                                 1998           1997
<S>                                         <C>            <C>
Other Operating Expenses
Payroll, payroll taxes and benefits         $   161,679    $   159,939
Repairs & maintenance                            28,749         40,849
Utilities                                        23,450         32,997
Insurance                                        23,160         31,445
Property taxes                                    5,640         37,761
Other operating supplies & services              31,231         23,187

Total Other Operating Expenses              $   273,909    $   326,178

Less Expenses Capitalized To
  Development and Construction                 (150,256)      (157,662)

Net Other Operating Expenses                $   123,653    $   168,516


General And Administrative Expenses
Payroll, payroll taxes and benefits         $   123,954    $    89,442
Professional fees                                32,396         37,603
Other general and administrative
  expenses                                       78,031         80,135

Total General and Administrative
  Expenses                                  $   234,381    $   207,180

Less Expenses Capitalized To
  Development and Construction                  (17,157)       (15,444) 
Net General and Administrative
  Expenses                                  $   217,224    $   191,736


Interest Expense
  Total Interest Expense                    $    34,332    $    53,036

  Less Interest Capitalized to
    Development and House
    Construction                            $   (25,180)   $   (16,833)
                                    
  Net Interest Expense                      $     9,152    $    36,203

</TABLE>
<PAGE>
<TABLE>

                     SEVEN FIELDS DEVELOPMENT COMPANY
                         STATEMENTS OF OPERATIONS
             FOR THE SIX MONTHS ENDED APRIL 30, 1998 AND 1997
<CAPTION>

                                                1998            1997
<S>                                        <C>             <C>
Gross Revenue
Rental income                              $   146,721     $   264,309
Fees & other operating income                   32,620          34,249
Water revenue                                   81,427          72,795
Developed lot and house sales                4,241,075       3,542,807
Townhouse unit sales                         4,135,586         385,474     
                                           $ 8,637,429     $ 4,299,634      

Costs & Expenses
Cost of Developed Lots &
  Houses Sold                              $ 3,733,914     $ 2,751,737

Cost of Townhouses Sold                    $ 1,912,967     $   240,735

Other Operating Expenses*                  $   339,939     $   345,759

General & Administrative Expenses*         $   440,080     $   412,072

Depreciation Expense                       $   133,720     $   144,304

     Operating Income                      $ 2,076,809     $   405,027

Interest Expense*                          $   (40,776)    $   (76,275)
Interest Income                            $    31,005     $    12,607

Income Before
  Provision for Income Taxes               $ 2,067,038     $   341,359

Provision for Income Taxes                 $   835,500     $   146,000

    Net Income                             $ 1,231,538     $   195,359

    Net Income Per Share,
     Basic and Fully Diluted              $    .35        $    .06

Weighted Average Number of Shares            3,484,560       3,484,560

<FN>
* See details on following page.
</TABLE>
<PAGE>
<TABLE>

                     SEVEN FIELDS DEVELOPMENT COMPANY
                   STATEMENTS OF OPERATIONS - CONTINUED
                   DETAILS OF OTHER OPERATING EXPENSES,
         GENERAL AND ADMINISTRATIVE EXPENSES, AND INTEREST EXPENSE
             FOR THE SIX MONTHS ENDED APRIL 30, 1998 AND 1997
<CAPTION>
                                                 1998           1997
<S>                                         <C>            <C>
Other Operating Expenses
Payroll, payroll taxes and benefits         $   342,507    $   373,569
Repairs & maintenance                            59,988         85,777
Utilities                                        49,053         58,659
Insurance                                        53,520         60,970
Property taxes                                   63,709         76,909
Other operating supplies & services              64,430         38,549

   Total Other Operating Expenses           $   633,207    $   694,433

   Less Expenses Capitalized To
    Development and Construction               (293,268)      (348,674)

   Net Other Operating Expenses             $   339,939    $   345,759


General And Administrative Expenses
Payroll, payroll taxes and benefits         $   218,274    $   199,399
Professional fees                                77,422         91,767
Other general and administrative
  expenses                                      178,698        151,794

   Total General and Administrative
     Expenses                               $   474,394    $   442,960

   Less Expenses Capitalized To
    Development and Construction                (34,314)       (30,888)  

   Net General and Administrative
    Expenses                                $   440,080    $   412,072

Interest Expense
Total Interest Expense                      $    93,783    $   101,791

Less Interest Capitalized to
   Development and House Construction       $   (53,007)   $   (25,516)
                                    
      Net Interest Expense                  $    40,776    $    76,275
</TABLE>
<PAGE>
<TABLE>


                     SEVEN FIELDS DEVELOPMENT COMPANY
                      STATEMENT OF RETAINED EARNINGS
                   FOR THE SIX MONTHS ENDED APRIL 30, 1998
                                  
                        
<S>                                                   <C>
Retained earnings - beginning                         $   6,406,732

Net income for the six month period                       1,231,538

Retained earnings - ending                            $   7,638,270

</TABLE>
<PAGE>
<TABLE>


                     SEVEN FIELDS DEVELOPMENT COMPANY
                         STATEMENTS OF CASH FLOWS
             FOR THE SIX MONTHS ENDED APRIL 30, 1998 AND 1997
<CAPTION>
                                                1998            1997
<S>                                        <C>            <C>
Cash Flows From Operating Activities:
Net income                                 $ 1,231,538    $    195,359
Provision for deferred income taxes            835,500         146,000
Depreciation                                   133,720         144,304
Capitalized development costs incurred        (362,804)       (514,000)
Capitalized house construction
  costs incurred                            (2,236,034)     (2,354,520)
Cost of lots & houses sold                   3,596,161       2,609,954
Changes in other assets & liabilities:
  Mortgage notes receivable                   (487,152)            300
  Other assets                                 396,296         133,310
  Other liabilities                           (558,452)       (315,177)  
Net Cash Flows Provided By
  Operating Activities                     $ 2,548,773    $     45,530   

Cash Flows From Investing Activities:
Additions to property, buildings and
  equipment                                $   (77,836)   $   (325,176)
Sale of property, buildings & equipment      1,349,219          93,287
Total Cash Flows Provided By (Used In)
  Investing Activities                     $ 1,271,383    $   (231,889)

Cash Flows From Financing Activities:
Repayment of general unsecured debt        $(2,328,505)   $   (997,931)
Net borrowings on credit lines                               1,133,250
Proceeds from borrowings                       280,000             
Repayment of mortgages and
 notes payable                              (1,494,990)       (224,079)
   Total Cash Flows Used In
     Financing Activities                 $(3,543,495)   $    (88,760) 

Net Increase (Decrease) in Cash And
  Temporary Investments                    $   276,661    $   (275,119) 
Cash & Temporary Investments,
  Beginning of Period                      $   421,517    $    401,870  
Cash & Temporary Investments,
  End of Period                            $   698,178    $    126,751

Interest Expense Included in
  Net Income Above                         $    40,776    $     76,275
Interest Paid & Included in Capitalized
  Development & House Construction Costs   $    53,007    $     25,516
Total Interest Paid                        $    93,783    $    101,791
</TABLE>
<PAGE>

                     SEVEN FIELDS DEVELOPMENT COMPANY
                       NOTES TO FINANCIAL STATEMENTS
             FOR THE SIX MONTHS ENDED APRIL 30, 1998 AND 1997

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, 1997.

For comparative purposes, certain 1997 amounts have been reclassified to
conform to the presentation adopted in 1998.
<PAGE>

Part I - Item 2                  Management Discussion and Analysis
                                 of Financial Condition and Results
                                 of Operations

Financial Condition

The Company's financial condition improved due to generation of net profit of
$1,231,538 in the first six months of 1998. The Company obtained a $250,000
mortgage note from National City Bank. The note is collateralized by the real
estate office building constructed by the Company. The Company was successful
in selling all of the remaining 74 townhouse units in 1998.  As part of the
sale of 65 of these units, the Company granted a $487,000 mortgage to the
buyer.  The remaining proceeds from the sale were used to pay off the PNC
Bank, N.A. mortgage in full and to fund a distribution to investors in
February, 1998 of over $2.3 million. Additionally, notes payable on lines of
credit were reduced by nearly $490,000 due to pay offs at the time of sale of
the related houses.

Inventory at the end of the second quarter of 1998 consist of eleven single
family homes in various stages of construction including one model home, two
homes under agreement of sale, and eight homes available for sale. Also in
inventory are twenty-eight multi-family homes, in various stages of
construction, including two model homes, ten homes under agreement of sale
and sixteen homes available for sale. 

Results of Operations for the Six Month Periods

In 1998, rental income decreased from the prior year's period by almost
$118,000 due to the sale of townhouse units. Since 74 of these townhouse
units were sold in 1998 and five were sold in 1997, gross revenue from
townhouse unit sales increased in 1998 by $3,750,000. Developed lot and house
sales increased from 1997 to 1998 by nearly $700,000 due to sales of eleven
lots, six houses, sixteen multi-family units, and two commercial parcels in
1998, compared with ten lots, eight houses, nine multi-family units and one
commercial lot a year earlier. As a result of the above variations, total
gross revenue in the period increased by $4,337,795 from the prior year's
period.

Cost of developed lots and houses sold increased by $982,177 in 1998 and cost
of townhouses sold increased by $1,672,232 in 1998; both such variations are
due primarily to corresponding proportionate changes in sales volumes.

Gross other operating expenses decreased from 1997 to 1998 by over $60,000
due primarily to the first quarter 1998 sale of the remainder of the
townhouses.  General and administrative expenses increased by approximately
$28,000 from 1997 to 1998 due to greater recognition of allowances for future
costs which are based on sales volumes in 1998.  

<PAGE>

Part I - Item 2                  Management Discussion and Analysis
                                 of Financial Condition and Results
                                 of Operations

Results of Operations for Six Month Periods (Con't)

Due to the variations previously indicated, the Company's income, before
provision for income taxes, increased from 1997 to 1998 by $1,725,679.

The Company recognized a provision for income tax in 1998 of $835,500; such
amount serves to reduce deferred income tax assets and it is anticipated that
no income tax will be paid this year. Upon adopting Financial Accounting
Standard #109 ("FAS 109") in 1994 the Company recognized a $4 million dollar
deferred tax asset, and, annually, values the realizability of such asset
based on the Company's ability to generate sufficient revenue in future
years. Based on the assets the Company currently owns and its development
plans, it is estimated that the deferred tax assets will be utilized upon
development and sale of the Company's remaining property, and the Company has
begun, effective November 1, 1996, recognizing tax expense at a combined
federal and state rate of 40%.
<PAGE>

Part II - Item 1     Legal Proceedings

None
<PAGE>

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 April 30, 1998.
<PAGE>


                                SIGNATURES

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


                          Seven Fields Development Company



Date: 6/9/98              By:  George K. Wright, Vice-President



Date: 6/9/98              By: Lynn Hoffman-Kyle, Chief Financial Officer