FORM 10-Q

                 SECURITIES AND EXCHANGE COMMISSION

                       Washington, D.C. 20549
(Mark One)

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

For the quarterly period ended           September 30, 1996         

                                 OR

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

For the transition period from                   to                 

Commission File Number                   1-7211                     

                        IONICS, INCORPORATED                        
       (exact name of registrant as specified in its charter)

       MASSACHUSETTS                               04-2068530       
(State or other jurisdiction of           (I.R.S. Employer
 incorporation or organization)            Identification No.)

          65 Grove Street, Watertown, Massachusetts 02172           
              (Address of principal executive offices)
                             (Zip Code)

                          (617) 926-2500                            
        (Registrant's telephone number, including area code)

                                  NONE                      
        (Former name, former address and former fiscal year,
                    if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.

YES   X     NO      

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. 

          Class                    Outstanding at September 30, 1996 
Common Stock, Par Value $1               15,690,355 Shares

/1




                        IONICS, INCORPORATED

                            FORM 10-Q FOR

                  QUARTER ENDED SEPTEMBER 30, 1996

                                INDEX



                                                                  Page No.

Part I     - Financial Information

             Consolidated Statements of Operations                   2

             Consolidated Balance Sheets                             3

             Consolidated Statements of Cash Flows                   4

             Notes to Consolidated Financial Statements              5

             Management's Discussion and Analysis of
             Results of Operations and Financial Condition           6



Part II    - Other Information                                       9

             Signatures                                              10

             Exhibit Index                                           11

             Exhibit 11 - Computation of Earnings Per Share          12

             Exhibit 27 - Financial Data Schedule                    13
                                                           (for electronic
                                                            purposes only)






                                   - 1 -
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<TABLE>
                             PART I - FINANCIAL INFORMATION


                                  IONICS, INCORPORATED
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                       (Unaudited)
                    (Amounts in thousands, except per share amounts)
<CAPTION>

                                           Three Months Ended     Nine Months Ended
                                              September 30,          September 30,  
                                             1996       1995       1996       1995  
<S>                                        <C>        <C>        <C>        <C>
Net revenue:
  Membranes and related equipment          $37,113    $33,350    $109,006   $ 92,962
  Water, food and chemical supply           29,810     16,686      79,470     49,086
  Consumer products                         17,588     15,148      48,780     40,280
                                            84,511     65,184     237,256    182,328
Costs and expenses:
  Cost of membranes and related equipment   26,280     23,910      77,453     66,590
  Cost of water, food and chemical supply   20,781     11,173      53,892     32,505
  Cost of consumer products                 10,095      9,018      27,473     22,955
  Research and development                   1,256      1,030       3,701      3,054
  Selling, general and administrative       16,036     12,034      46,491     35,870
                                            74,448     57,165     209,010    160,974
Income from operations                      10,063      8,019      28,246     21,354
Interest income                                 61        245         353        751
Equity income                                  104        170         323        417

Income before income taxes                  10,228      8,434      28,922     22,522

Provision for income taxes                   3,375      2,765       9,544      7,545
Net income                                 $ 6,853    $ 5,669    $ 19,378   $ 14,977

Earnings per share                         $   .43    $   .37    $   1.21   $   1.00
Shares used in earnings per                         
  share calculations                        16,044     15,153      16,042     14,990

The accompanying notes are an integral part of these financial statements.
</TABLE>
                                    -2-
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<TABLE>
                           IONICS, INCORPORATED
                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
               (Amounts in thousands, except share amounts)
<CAPTION>
                                                         September 30, December 31,
                                                             1996          1995   
<S>                                                        <C>          <C>
ASSETS                                               
Current assets:
  Cash and cash equivalents                                $ 11,262     $  9,479
  Notes receivable, current                                   3,637        4,529
  Accounts receivable                                        87,072       78,376
  Receivables from affiliated companies                       2,085        1,421
  Inventories:
    Raw materials                                            13,984       12,640
    Work in process                                           7,799        5,411
    Finished goods                                            2,849        2,513
                                                             24,632       20,564
  Other current assets                                        9,433        8,018
       Total current assets                                 138,121      122,387
Notes receivable, long-term                                   7,687        5,813
Investments in affiliated companies                           4,215        4,874
Property, plant and equipment:
  Land                                                        3,561        3,270
  Buildings                                                  30,033       26,018
  Machinery and equipment                                   225,683      191,195
  Other, including furniture, fixtures and vehicles          35,359       26,772
                                                            294,636      247,255
  Less accumulated depreciation                            (113,957)     (91,369)
                                                            180,679      155,886
Other assets                                                 37,413       33,084
       Total assets                                        $368,115     $322,044

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable and current portion 
    of long-term debt                                      $ 16,068     $  4,884
  Accounts payable                                           21,807       28,089
  Customer deposits                                           4,803        3,131
  Accrued commissions                                         2,268        2,184
  Accrued expenses                                           25,505       20,384
  Taxes on income                                             6,465        1,607
       Total current liabilities                             76,916       60,279
Long-term debt and notes payable                              2,325          182
Deferred income taxes                                         5,816        7,780
Other liabilities                                             2,088          759
Stockholders' equity:
  Common stock, par value $1, 30,000,000 authorized shares;
  issued: 15,690,355 in 1996 and 14,801,230 in 1995          15,690       14,801
  Additional paid-in capital                                145,950      137,587
  Retained earnings                                         123,103      104,795
  Cumulative translation adjustments                         (3,386)      (3,671)
  Unearned compensation                                        (387)        (468)
       Total stockholders' equity                           280,970      253,044
       Total liabilities and stockholders' equity          $368,115     $322,044

The accompanying notes are an integral part of these financial statements.
</TABLE>
                                        -3-
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<TABLE>
                                IONICS, INCORPORATED
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)
                               (Dollars in thousands)
<CAPTION>
                                                              Nine Months Ended
                                                                 September 30,   
                                                               1996        1995  
<S>                                                          <C>         <C>
Operating activities:
  Net income                                                 $ 19,378    $ 14,977
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                             19,007      15,154
     Provision for losses on accounts and notes receivable        700         477
     Compensation expense on restricted stock awards               81          45
     Changes in assets and liabilities:
        Notes receivable                                       (1,074)       (583)
        Accounts receivable                                    (5,829)     (4,921)
        Inventories                                            (3,668)     (2,183)
        Other current assets                                     (709)       (561)
        Investments in affiliates                                 658         487
        Accounts payable and accrued expenses                  (8,830)     (3,626)
        Income taxes                                            6,053       2,238
        Other                                                   1,950        (802)
           Net cash provided by operating activities           27,717      20,702
Investing activities:
  Additions to property, plant and equipment                  (36,797)    (37,767)
  Purchase of long-term investments                                 -      (3,000)
  Sale of short-term investments                                    -       4,047
           Net cash used by investing activities              (36,797)    (36,720)
Financing activities:
  Principal payments on current debt                          (10,445)    (12,499)
  Proceeds from issuance of current debt                       20,385      17,303
  Principal payments on long-term debt                         (2,340)          -
  Proceeds from stock option plans                              3,330       2,959
           Net cash provided by financing activities           10,930       7,763
Effect of exchange rate changes on cash                           (67)         (2)
Net change in cash and cash equivalents                         1,783      (8,257)
Cash and cash equivalents at beginning of period                9,479      15,062
Cash and cash equivalents at end of period                   $ 11,262    $  6,805
The accompanying notes are an integral part of these financial statements.
</TABLE>  
                                  -4-
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                        IONICS, INCORPORATED

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

    1.  In the opinion of the Company, the accompanying consolidated
        financial statements contain all adjustments (consisting of
        only normal, recurring accruals) necessary to present fairly
        the consolidated financial position of the Company as of
        September 30, 1996 and December 31, 1995, the consolidated
        results of its operations for the three and nine months ended
        September 30, 1996 and 1995 and the consolidated cash flows
        for the nine months then ended.

    2.  The consolidated results of operations of the Company for the
        three and nine months ended September 30, 1996 and 1995 are
        not necessarily indicative of the results of operations to be
        expected for the full year.

    3.  Reference is made to the Notes to Consolidated Financial
        Statements appearing in the Company's 1995 Annual Report as
        filed on Form 10-K with the Securities and Exchange
        Commission.  There have been no significant changes in the
        information reported in those Notes, other than from the
        normal business activities of the Company, and there have been
        no changes which would, in the opinion of Management, have a
        materially adverse effect upon the Company.

    4.  Certain prior year amounts have been reclassified to conform
        to the current year presentation with no impact on net income.

    5.  In July 1996, the Company acquired 100% of the stock of
        Separation Technology, Inc. (STI) for approximately $2.5
        million through the issuance of 58,000 shares of common stock.
        STI is a leading supplier of membrane-based purification
        equipment and related services to the food industry with
        particular emphasis on dairy and beverage applications.

        The acquisition was accounted for under the purchase method
        with the results of STI included from July 1, 1996.  Goodwill
        of approximately $4 million is being amortized on a straight-
        line basis over twenty years.  Pro forma results of operations
        have not been presented, as the effect of this acquisition on
        the financial statements was not material. 

                                 -5-
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               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Results of Operations

Comparison of the Three and Nine Months Ended September 30, 1996 with
the Three and Nine Months Ended September 30, 1995

Revenues for the third quarter of 1996 increased 29.6% to $84.5
million from $65.2 million in 1995.  Revenues for the nine-month
period increased 30.1% to $237.3 million from $182.3 million in the
comparable period in 1995.  Revenues were higher in all three business
segments for both the three and nine-month periods.  The largest
increase in revenues for both the third quarter and the nine-month
period was in the Water, Food and Chemical Supply segment.

Revenues from the Membranes and Related Equipment segment grew in both
the third quarter and the nine-month period due primarily to
continuing strength in the sale of ultrapure water systems to the
semiconductor market.  Growth was also experienced through increased
sales of instrumentation and water desalting equipment during both
periods.  The increase in this segment was partially offset by a
decrease in revenues from the sale of wastewater treatment equipment
during both the quarter and nine-month period.

Revenues from the Water, Food and Chemical Supply segment increased in
both periods due primarily to strength in the ultrapure water supply
business.  The Company's internal growth in ultrapure water supply was
augmented by the acquisitions of Ahlfinger Water Company in November 1995
and Apollo Ultrapure Water Systems in January 1996.  Revenues also
increased in the municipal water supply and food processing businesses
during both periods, primarily due to the acquisitions of Aqua Design,
Inc. in January 1996 and Separation Technology, Inc. in July 1996.

Consumer Products revenues increased in both the third quarter and the
nine-month period.  Revenues increased in the bottled water, home
water purification and bleach-based consumer products businesses
during each period.  These increases resulted from both increases in
the customer base and the openings of three new bottled water
distribution facilities in Richmond, Virginia; Cleveland, Ohio; and
Providence, Rhode Island.

Cost of sales as a percentage of revenues for the third quarter was
67.6% in 1996 and 67.7% in 1995.  For the nine-month period, cost of
sales as a percentage of revenues was 66.9% both in 1996 and in 1995.

                                 -6-
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In the Membranes and Related Equipment segment, the gross margin
percentage improved in both the third quarter and the nine-month
period.  This primarily reflected an improvement in the mix of
contracts, particularly within the wastewater treatment and
instrumentation businesses, partially offset by a change in the mix of
ultrapure water equipment contracts.

In the Water, Food and Chemical Supply segment, cost of goods sold
increased as a percentage of revenues during both periods.  This
increase reflected the acquisition of Separation Technology, Inc.
whose manufacturing costs have not yet reflected the synergies which
we believe will be available through continued integration with the
other businesses within this segment.  This increase also reflected
increased competitive pressure within the industrial bleach
market in the United Kingdom.

The Consumer Products segment experienced improvement in the gross
margin percentage in both the third quarter and nine-month period.
This improvement primarily reflected the achievement of certain
product cost reductions, price increases and an overall improvement in
the mix of consumer products sold.

Operating expenses as a percentage of revenues increased slightly in
the third quarter to 20.5% in 1996 from 20.0% in 1995, reflecting a
change in the mix of various selling expenses.  For the nine-month
period, operating expenses as a percentage of revenues of 21.2% in
1996 were approximately the same as 1995.

Interest income decreased during both the third quarter and nine-month
period.  This was a result of lower average invested cash balances for
both periods.

Financial Condition

Working capital decreased by $0.9 million during the first nine months
of 1996 and the current ratio decreased to 1.8 at September 30, 1996
from 2.0 at December 31, 1995.  Cash provided from net income and
depreciation totaled $38.4 million during the first nine months of
1996, while the primary uses of cash were for additions to property,
plant and equipment and for payments on current debt.  Significant
capital expenditures were incurred to support growth in bottled water
operations, bleach operations, trailers and other "own and operate"
facilities.

At September 30, 1996, the Company had $11.3 million in cash and cash
equivalents, an increase of $1.8 million from December 31, 1995.  This
increase was, however, offset by an increase in short-term borrowings
of $11.2 million over the corresponding period.  The Company believes
that its cash and cash equivalent balances, cash from operations,
lines of credit and foreign exchange facilities are adequate to meet
its currently anticipated needs.

                                 -7-
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Forward-Looking Information

The Company's future results of operations, as well as statements
contained in this Management's Discussion and Analysis which are
forward-looking statements, depend upon a number of factors that could
cause actual results to differ materially from management's current
expectations.  Among these factors are business conditions and the
general economy; competitive factors, such as acceptance of new
products and price pressures; risk of nonpayment of accounts
receivable; risks associated with foreign operations; and regulations
and laws affecting business in each of the Company's markets.

































                                    -8-
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                        PART II - OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

     Exhibit 11 - Computation of Earnings Per Share (included on Page
     12 of this report).

(b)  Reports on Form 8-K

     No reports on Form 8-K were filed with the Securities and
     Exchange Commission during the quarter ended September 30, 1996.

     All other items reportable under Part II have been omitted as
     inapplicable or because the answer is negative, or because the
     information was previously reported to the Securities and
     Exchange Commission.























                                 -9-
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                             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.



                                 IONICS, INCORPORATED



Date:   November 13, 1996        By: /s/Arthur L. Goldstein            
                                     Arthur L. Goldstein
                                     Chairman and Chief Executive Officer
                                     (duly authorized officer)



Date:   November 13, 1996        By: /s/Robert J. Halliday             
                                     Robert J. Halliday
                                     Vice President, Finance
                                     (chief financial officer)

















                                   -10-
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                               EXHIBIT INDEX

                                                             Sequentially
                                                              Numbered
Exhibit                                                         Page

  11    Computation of Earnings Per Share                        13
  27    Financial Data Schedule                                  14
                                                         (for electronic
                                                          purposes only)






























                                  -11-
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