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               March 31, 1997          

                                 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 March 31, 1997  
 Common Stock, Par Value $1            15,914,821 Shares


1/




                        IONICS, INCORPORATED

                            FORM 10-Q FOR

                    QUARTER ENDED MARCH 31, 1997

                                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                                      8


          Signatures                                             9


          Exhibit Index                                         10


          Exhibit 11 - Computation of Earnings Per Share        11


          Exhibit 27 - Financial Data Schedule                  12
                                                     (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
                                                           March 31,     
                                                        1997       1996  
<S>                                                   <C>        <C>
Net revenue:
  Membranes and related equipment                     $39,833    $38,622
  Water, food and chemical supply                      30,153     23,780
  Consumer products                                    17,116     15,441
                                                       87,102     77,843
Costs and expenses:
  Cost of membranes and related equipment              27,800     28,191
  Cost of water, food and chemical supply              21,464     15,728
  Cost of consumer products                             9,783      8,813
  Research and development                              1,302      1,246
  Selling, general and administrative                  16,511     14,967
                                                       76,860     68,945
Income from operations                                 10,242      8,898
Interest income                                           288        313
Interest expense                                         (236)      (137)
Equity income                                             109         76
Income before income taxes                             10,403      9,150

Provision for income taxes                              3,431      3,065
Net income                                            $ 6,972    $ 6,085

Earnings per share                                    $   .43    $   .38

Shares used in earnings per                
  share calculations                                   16,402     15,942


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>
                                                            March 31,  December 31,
                                                              1997         1996    
<S>                                                         <C>          <C>
ASSETS                                               
Current assets:
  Cash and cash equivalents                                 $  16,313    $  12,269
  Notes receivable, current                                     3,329        3,496
  Accounts receivable                                          83,473       91,392
  Receivables from affiliated companies                         3,032        2,999
  Inventories:
    Raw materials                                              16,449       15,028
    Work in process                                             8,284        8,120
    Finished goods                                              2,882        2,852
                                                               27,615       26,000
  Other current assets                                          7,726        8,266
       Total current assets                                   141,488      144,422
Notes receivable, long-term                                     7,905        7,737
Investments in affiliated companies                             2,969        2,908
Property, plant and equipment:
  Land                                                          3,564        3,602
  Buildings                                                    33,030       33,157
  Machinery and equipment                                     235,833      233,077
  Other, including furniture, fixtures and vehicles            36,961       36,834
                                                              309,388      306,670
  Less accumulated depreciation                              (124,946)    (120,853)
                                                              184,442      185,817
Other assets                                                   37,659       37,705
       Total assets                                         $ 374,463    $ 378,589

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable and current portion 
    of long-term debt                                       $   5,962    $  11,513
  Accounts payable                                             25,642       28,988
  Customer deposits                                             6,856        7,147
  Accrued commissions                                           2,139        2,402
  Accrued expenses                                             18,616       18,123
  Taxes on income                                               1,532          -  
       Total current liabilities                               60,747       68,173
Long-term debt and notes payable                                  100        2,132
Deferred income taxes                                          12,187       14,422
Other liabilities                                               1,595        1,645
Stockholders' equity:
  Common stock, par value $1, 30,000,000 authorized shares;
  issued: 15,914,821 in 1997 and 15,823,205 in 1996            15,915       15,823
  Additional paid-in capital                                  152,188      149,337
  Retained earnings                                           137,200      130,228
  Cumulative translation adjustments                           (5,136)      (2,811)
  Unearned compensation                                          (333)        (360)
       Total stockholders' equity                             299,834      292,217
       Total liabilities and stockholders' equity           $ 374,463    $ 378,589

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>
                                                             Three Months Ended
                                                                   March 31,      
                                                               1997        1996  
<S>                                                          <C>         <C>
Operating activities:
  Net income                                                 $  6,972    $  6,085
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                              6,855       6,156
     Provision for losses on accounts and notes receivable        371         232
     Compensation expense on restricted stock awards               27          27
     Changes in assets and liabilities:
        Notes receivable                                       (1,119)      1,043
        Accounts receivable                                     6,738      (7,727)
        Inventories                                            (1,685)     (2,940)
        Other current assets                                      494          (9)
        Investments in affiliates                                 (61)        131
        Accounts payable and accrued expenses                  (2,772)      2,446
        Income taxes                                            2,190       2,533
        Other                                                    (149)        440
           Net cash provided by operating activities           17,861       8,417
Investing activities:
  Additions to property, plant and equipment                   (7,796)    (13,562)
  Sale of short-term investments                                    -           -
  Purchase of long-term investments                                 -           -
           Net cash used by investing activities               (7,796)    (13,562)
Financing activities:
  Principal payments on current debt                           (7,363)     (1,882)
  Proceeds from issuance of current debt                          356       9,030
  Principal payments on long-term debt                              -      (2,335)
  Proceeds from stock option plans                              1,335         619
           Net cash (used)/provided by financing activities    (5,672)      5,432
Effect of exchange rate changes on cash                          (349)        (24)
Net change in cash and cash equivalents                         4,044         263
Cash and cash equivalents at beginning of period               12,269       9,479
Cash and cash equivalents at end of period                   $ 16,313    $  9,742

The accompanying notes are an integral part of these financial statements.
                                      -4-
</TABLE>
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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 March
        31, 1997 and December 31, 1996, the consolidated results of
        its operations for the three months ended March 31, 1997 and
        1996 and the consolidated cash flows for the three months then
        ended.


    2.  The consolidated results of operations of the Company for the
        three months ended March 31, 1997 and 1996 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 1996 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 1997, the Financial Accounting Standards Board ("FASB")
        released Statement of Financial Accounting Standards No. 128
        ("SFAS 128"), "Earnings per Share".  SFAS 128 simplifies the
        standards for computing earnings per share ("EPS") and makes
        them comparable to international EPS standards.  It replaces
        the presentation of primary EPS with a presentation of basic
        EPS.  It also requires dual presentation of basic and diluted
        EPS on the face of the income statement for all entities with
        complex capital structures and requires a reconciliation of
        the numerator and denominator of the basic EPS computation to
        the numerator and denominator of the diluted EPS computation.
        SFAS 128 is effective for financial statements issued for
        periods ending after December 15, 1997, including interim
        periods.  SFAS 128 requires restatement of all prior-period
        EPS data presented.  Neither basic nor diluted EPS computed in
        accordance with SFAS 128 would be materially different from
        the Company's primary EPS presented in the financial
        statements.


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


Results of Operations

Comparison of the Three Months Ended March 31, 1997
with the Three Months Ended March 31, 1996

Revenues for the first quarter of 1997 increased 11.9% to $87.1
million from $77.8 million in 1996.  Revenues were higher in all
three business segments with the largest increase occurring in
the Water, Food and Chemical Supply segment.  This was primarily
due to the strong performance within our ultrapure water supply
business.  Revenue growth also occurred in the food processing
business due to the acquisition of Separation Technology, Inc.
(STI) in July 1996.

Membranes and Related Equipment revenues grew due to continued
strength in the sale of ultrapure water systems to the
semiconductor market, partially offset by a reduction in revenues
in the sale of wastewater systems.  Revenues also increased in
the Consumer Products segment due to increased sales of bottled
water and home water conditioners.  This was partially offset by
a reduction in revenues from the sale of automobile windshield
wash solution due to the relatively mild winter in the
northeastern United States.

Cost of sales as a percentage of revenues was 67.8% in 1997 as
compared to 67.7% in 1996.  In the Membranes and Related
Equipment segment, cost of sales decreased as a percentage of
revenues as a result of improvements in the mix of contracts
within the ultrapure equipment, wastewater and instrumentation
businesses.  Cost of sales as a percentage of revenues increased
within the Water, Food and Chemical Supply segment resulting
primarily from a different mix of revenues among own and operate
contracts within the ultrapure water business.  This increase
also reflected the acquisition of STI, whose manufacturing costs
do not yet reflect the synergies we believe will be available
through continued integration with other businesses.  Water, Food
and Chemical Supply cost of sales also increased due to continued
competitive pressure within the industrial bleach market in the
United Kingdom.

Operating expenses as a percentage of revenues were 19.0% in the
first quarter of 1997, down from 19.2% in the first quarter of
1996.  This decrease reflected the absorption of relatively fixed
operating expenses by increased sales volume and relatively
favorable employee benefit costs as a percentage of labor.







                               -6-
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Interest expense increased during the first quarter despite a
reduction in total interest costs incurred.  This resulted from a
reduction in the amount of capitalized interest costs.

Financial Condition

Working capital increased $4.5 million during the first three
months of 1997, while the Company's current ratio increased to
2.3 at March 31, 1997 from 2.1 at December 31, 1996.  Cash
provided from net income, depreciation and a reduction in
accounts receivable totaled $20.6 million in the first three
months of 1997 while the primary uses of cash were for additions
to property, plant and equipment and principal payments on
current debt.  Significant capital expenditures were made for the
Company's bottled water operations, trailers and other "own and
operate" facilities.

At March 31, 1997 the Company had $16.3 million in cash and cash
equivalents, an increase of $4.0 million from December 31, 1996.
Notes payable and long-term debt decreased $7.6 million in the
same period. The Company believes that its cash, cash from
operations, lines of credit and foreign exchange facilities are
adequate to meet its currently anticipated needs.

Recent Accounting Pronouncements

In 1997, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 128 ("SFAS 128"),
"Earnings per Share".  SFAS 128 simplifies the standards for computing
earnings per share ("EPS") and makes them comparable to international
EPS standards.  It replaces the presentation of primary EPS with a
presentation of basic EPS.  It also requires dual presentation of
basic and diluted EPS on the face of the income statement for all
entities with complex capital structures and requires a reconciliation
of the numerator and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation.  SFAS 128 is
effective for financial statements issued for periods ending after
December 15, 1997, including interim periods.  SFAS 128 requires
restatement of all prior-period EPS data presented.  Neither basic nor
diluted EPS computed in accordance with SFAS 128 would be materially
different from the Company's primary EPS presented in the financial
statements.

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.



                                 -7-
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                     PART II - OTHER INFORMATION



Item 2.  Changes in Securities

(c)  During the quarter ended March 31, 1997, the Company issued a
     total of 19,366 shares of Common Stock to Personnel Hygiene
     Services Limited, an English corporation (PHS), in consideration
     of the purchase by the Company's English subsidiary of the assets
     of PHS's bottled water division, for a sale price of
     approximately $989,000.  The sale took place on March 10, 1997,
     and the shares were valued at $51.09 per share.  The sale was
     effected in reliance upon the exemption contained in Section 4(2)
     of the Securities Act of 1933, as amended.  The shares issued to
     PHS were legended and made the subject of "stop transfer"
     instructions, and the shares were subsequently sold pursuant to a
     resale registration statement prepared and filed in accordance
     with registration rights granted to PHS.

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

     Exhibit 11- Computation of Earnings Per Share (included on Page
     11 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 March 31, 1997.  

     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.





















                                 -8-
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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:   May 14, 1997        By: /s/Arthur L. Goldstein            
                                 Arthur L. Goldstein
                                 Chairman and Chief Executive Officer
                                 (duly authorized officer)



Date:   May 14, 1997        By: /s/Robert J. Halliday             
                                 Robert J. Halliday
                                 Vice President, Finance
                                 (chief financial officer)































                                 -9-
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                            EXHIBIT INDEX

                                                       Sequentially
                                                         Numbered
Exhibit                                                    Page

11        Computation of Earnings Per Share                 12

27        Financial Data Schedule                           13
                                                      (for electronic
                                                       purposes only)










































                                -10-
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