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, 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)

                          (781) 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, 1997 
Common Stock, Par Value $1                15,976,266 Shares

1/




                        IONICS, INCORPORATED

                            FORM 10-Q FOR

                  QUARTER ENDED SEPTEMBER 30, 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           7



Part II    - Other Information                                       10

             Signatures                                              11

             Exhibit Index                                           12

             Exhibit 11 - Computation of Earnings Per Share          13

             Exhibit 27 - Financial Data Schedule                    14
                                                           (for electronic
                                                            purposes only)

                                   - 1 -
/2


<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,  
                                             1997       1996       1997       1996  
<S>                                        <C>        <C>        <C>        <C>
Net revenue:
  Membranes and related equipment          $39,541    $37,885    $116,828   $111,146
  Water, food and chemical supply           25,638     29,038      87,353     77,330
  Consumer products                         19,934     17,588      55,145     48,780
                                            85,113     84,511     259,326    237,256
Costs and expenses:
  Cost of membranes and related equipment   27,458     26,860      81,337     79,054
  Cost of water, food and chemical supply   18,502     20,201      62,614     52,291
  Cost of consumer products                 11,086     10,095      30,641     27,473
  Research and development                   1,403      1,256       3,987      3,701
  Selling, general and administrative       16,285     16,036      49,513     46,491
                                            74,734     74,448     228,092    209,010
Income from operations                      10,379     10,063      31,234     28,246
Interest income                                361        261         923      1,006
Interest expense                              (205)      (200)       (668)      (653)
Equity income                                  205        104         506        323
Income before income taxes                  10,740     10,228      31,995     28,922
Provision for income taxes                   3,544      3,375      10,558      9,544
Net income                                 $ 7,196    $ 6,853    $ 21,437   $ 19,378
Earnings per share                         $   .44    $   .43    $   1.31   $   1.21
Shares used in earnings per                         
  share calculations                        16,393     16,044      16,414     16,042

The accompanying notes are an integral part of these financial statements.

</TABLE>

                                    -2-
/3


<TABLE>
                           IONICS, INCORPORATED
                        CONSOLIDATED BALANCE SHEETS
                                (Unaudited)
               (Amounts in thousands, except share amounts)
<CAPTION>
                                                         September 30, December 31,
                                                             1997          1996   
<S>                                                        <C>          <C>
ASSETS                                               
Current assets:
  Cash and cash equivalents                                $ 23,170     $ 12,269
  Notes receivable, current                                   3,812        3,496
  Accounts receivable                                        88,845       91,392
  Receivables from affiliated companies                       3,056        2,999
  Inventories:
    Raw materials                                            16,279       15,028
    Work in process                                           9,395        8,120
    Finished goods                                            2,544        2,852
                                                             28,218       26,000
  Other current assets                                        6,170        8,266
       Total current assets                                 153,271      144,422
Notes receivable, long-term                                   8,261        7,737
Investments in affiliated companies                           2,986        2,908
Property, plant and equipment:
  Land                                                        6,334        3,602
  Buildings                                                  32,866       33,157
  Machinery and equipment                                   242,947      233,077
  Other, including furniture, fixtures and vehicles          39,048       36,834
                                                            321,195      306,670
  Less accumulated depreciation                            (135,490)    (120,853)
                                                            185,705      185,817
Other assets                                                 49,426       37,705
       Total assets                                        $399,649     $378,589

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable and current portion 
    of long-term debt                                      $ 15,636     $ 11,513
  Accounts payable                                           22,581       28,988
  Customer deposits                                           5,609        7,147
  Accrued commissions                                         2,297        2,402
  Accrued expenses                                           21,638       18,123
  Taxes on income                                             6,503            -
       Total current liabilities                             74,264       68,173
Long-term debt and notes payable                                 82        2,132
Deferred income taxes                                         9,111       14,422
Other liabilities                                             1,343        1,645
Stockholders' equity:
  Common stock, par value $1, 30,000,000 authorized shares;
  issued: 15,976,266 in 1997 and 15,823,205 in 1996          15,976       15,823
  Additional paid-in capital                                153,934      149,337
  Retained earnings                                         151,665      130,228
  Cumulative translation adjustments                         (6,447)      (2,811)
  Unearned compensation                                        (279)        (360)
       Total stockholders' equity                           314,849      292,217
       Total liabilities and stockholders' equity          $399,649     $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>
                                                              Nine Months Ended
                                                                 September 30,   
                                                               1997        1996  
<S>                                                          <C>         <C>
Operating activities:
  Net income                                                 $ 21,437    $ 19,378
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                             20,293      19,007
     Provision for losses on accounts and notes receivable      1,030         700
     Compensation expense on restricted stock awards               81          81
     Changes in assets and liabilities:
        Notes receivable                                       (2,324)     (1,074)
        Accounts receivable                                       185      (5,829)
        Inventories                                            (2,428)     (3,668)
        Other current assets                                    1,994        (709)
        Investments in affiliates                                 (78)        658
        Accounts payable and accrued expenses                  (3,539)     (8,830)
        Income taxes                                            5,451       6,053
        Other                                                  (1,886)      1,950
           Net cash provided by operating activities           40,216      27,717
Investing activities:
  Additions to property, plant and equipment                  (23,938)    (36,797)
  Acquisitions, net of cash acquired                           (9,604)          -
           Net cash used by investing activities              (33,542)    (36,797)
Financing activities:
  Principal payments on current debt                           (8,328)    (10,445)
  Proceeds from issuance of current debt                       10,863      20,385
  Principal payments on long-term debt                            (28)     (2,340)
  Proceeds from stock option plans                              2,634       3,330
           Net cash provided by financing activities            5,141      10,930
Effect of exchange rate changes on cash                          (914)        (67)
Net change in cash and cash equivalents                        10,901       1,783
Cash and cash equivalents at beginning of period               12,269       9,479
Cash and cash equivalents at end of period                   $ 23,170    $ 11,262

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, 1997 and December 31, 1996, the consolidated
        results of its operations for the three and nine months ended
        September 30, 1997 and 1996 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, 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
        ("SFAS128"), "Earnings per Share."  SFAS128 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.
        SFAS128 requires restatement of all prior-period EPS data
        presented.  Neither basic nor diluted EPS computed in
        accordance with SFAS128 would be materially different from the
        Company's primary EPS presented in the financial statements.

        In 1997, the FASB released Statement of Financial Accounting
        Standards No. 130 ("SFAS130"), "Reporting Comprehensive
        Income."  SFAS130 establishes standards for reporting and
        display of comprehensive income and its components (revenues,
        expenses, gains, and losses) in a full set of general-purpose
        financial statements.  SFAS130 is effective for fiscal years
        beginning after December 15, 1997.  This Statement is a
        disclosure-only statement.

                                 -5-
/6



        Also in 1997, the FASB released Statement of Financial
        Accounting Standards No. 131 ("SFAS131"), "Disclosures About
        Segments of an Enterprise and Related Information."  SFAS131
        establishes standards for the way that public business
        enterprises report information about operating segments in
        annual financial statements and requires that those
        enterprises report selected information about operating
        segments in interim financial statements.  It also establishes
        standards for related disclosures about products and services,
        geographic areas, and major customers.  SFAS131 is effective
        for fiscal years beginning after December 15, 1997.  This
        Statement is a disclosure-only statement.

    6.  During September 1997, the Company acquired a 55% ownership
        interest in Enersave Engineering Systems Sdn. Bhd.
        ("Enersave") for an initial payment of $9.6 million.  An
        additional payment of up to $2 million will be required
        depending upon the achievement of certain future operating
        results.  Enersave, a Malaysian company with operations in
        Malaysia, China and Indonesia, is a leading supplier of water
        and wastewater treatment systems and services in Southeast
        Asia.  The acquisition was accounted for under the purchase
        method with the results of Enersave included from September 1,
        1997.  Goodwill of approximately $8 million is being amortized
        on a straight-line basis over 30 years.  Pro forma results of
        operations have not been presented, as the effect of this
        acquisition on the consolidated financial statements was
        immaterial.  Revenues for the eight-month period prior to the
        acquisition were approximately $10 million.

    7.  In October 1997, the Company completed the acquisition of 100%
        of the assets and liabilities of Watertec Engineering Pty.
        Ltd. as Trustee of Watertec Engineering Unit Trust and two
        related corporations (together "Watertec") for an initial
        payment of $1.9 million.  An additional payment of up to $0.8
        million will be required depending upon the achievement of
        certain future operating results.  Watertec is involved in the
        manufacture and supply of ozonation systems for water
        disinfection and systems for chemical metering.  The
        acquisition was accounted for under the purchase method with
        the results of Watertec included from September 1, 1997.
        Goodwill of approximately $1.2 million is being amortized on a
        straight-line basis over 30 years.  Pro forma results of
        operations have not been presented, as the effect of this
        acquisition on the consolidated financial statements was
        immaterial.  Fiscal 1997 revenues for the period prior to
        September 1997 were approximately $2.3 million.  Payment of
        the initial purchase price obligation of $1.9 million occurred
        on October 9, 1997.  The obligation for payment was included
        in accrued expenses at September 30, 1997.

                                 -6-
/7



               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, 1997 with
the Three and Nine Months Ended September 30, 1996

Revenues for the third quarter of 1997 increased 0.7% to $85.1 million
from $84.5 million during the third quarter of 1996.  Revenues for the
nine-month period increased 9.3% to $259.3 million from $237.3 million
in the comparable period in 1996.  Revenues increased in both the
Membranes and Related Equipment and the Consumer Products segments for
the three-month period.  Revenues increased in all three business
segments during the comparable nine-month period.  The largest
increase in revenues during the third quarter occurred in the Consumer
Products segment while the largest increase during the nine-month
period was in the Water, Food and Chemical Supply segment.

Revenues from the Membranes and Related Equipment segment grew during
both the third quarter and nine-month period due primarily to
continuing strength in the sale of instruments and water desalting
equipment.  This increase was partially offset in the third quarter by
a decrease in revenues from the sale of ultrapure water equipment.
For the nine-month period, this increase was partially offset by a
decrease in revenues from the sale of wastewater treatment equipment.

Revenues from the Water, Food and Chemical Supply segment decreased in
the third quarter due to decreased sales of municipal water and some
softness in the food processing business.  The decrease in municipal
water was primarily a result of the City of Santa Barbara's buyout of
the desalination plant constructed and maintained by the Company.
This decrease was partially offset by increased revenues in the
ultrapure water supply and chemical supply businesses.  Revenues from
this segment increased during the nine-month period due primarily to
continuing growth in the ultrapure water supply business.  This growth
was partially offset by the decreased sale of municipal water noted
above.

Consumer products revenues increased in both the third quarter and the
nine-month period primarily reflecting higher revenues from bottled
water sales.  These increases resulted from an increase in the
customer base, an increase in consumption by the existing customer
base, particularly in the United Kingdom which experienced a
relatively warm summer, and price increases.

Cost of sales as a percentage of revenues for the third quarter was
67.0% in 1997 and 67.6% in 1996.  For the nine-month period, cost of
sales as a percentage of revenues was 67.3% in 1997 and 66.9% in 1996.

In the Membranes and Related Equipment segment, cost of sales as a
percentage of revenues decreased in both the third quarter and the
nine-month period.  This primarily reflected the strong performance of
contracts within the ultrapure water equipment business.  In addition,
increased sales of instruments provided improved absorption of related

                                 -7-
/8




fixed overhead costs.  This decrease in cost of sales as a percentage
of revenues was partially offset by a change in the mix of revenues
from the sale of water desalting equipment and related spare parts.

In the Water, Food, and Chemical Supply segment, cost of sales as a
percentage of revenues increased during both periods.  During both the
third quarter and nine-month period, this increase primarily reflected
a change in the mix of contracts for the supply of municipal water and
ultrapure water.

In the Consumer Products segment, cost of sales as a percentage of
revenues decreased in both the third quarter and nine-month period.
This improvement primarily reflected modest bottled water price
increases and the improved absorption of fixed overhead costs
resulting from continued expansion of the bottled water customer base.

During the third quarter of 1997, operating expenses as a percentage
of revenues of 20.8% were essentially consistent with the prior year.
For the nine-month period, operating expenses as a percentage of
revenues decreased to 20.6% in 1997 from 21.2% in 1996.  This
improvement reflected higher absorption of relatively fixed operating
costs by increased sales volume.

Interest income increased during the third quarter primarily due to
higher average invested cash balances.  Interest income decreased
during the nine-month period due to lower average interest rates and
foreign exchange fluctuations.  

The Company periodically enters into foreign exchange contracts to
hedge certain operational and balance sheet exposures against changes
in foreign currency rates.  Because the impact of movements in
currency exchange rates on foreign exchange contracts offsets the
related impact on the underlying items being hedged, these instruments
do not subject the Company to risk that would not otherwise result
from changes in currency exchange rates.   Foreign currency contracts
are used solely for hedging and are not speculative or profit-seeking.

Financial Condition

Working capital increased by $2.8 million during the first nine months
of 1997 and the current ratio of 2.1 at September 30, 1997 was
approximately the same as at December 31, 1996.  Cash provided from
net income and depreciation totaled $41.7 million during the first
nine months of 1997, while the primary uses of cash were for additions
to property, plant and equipment and for the acquisition of Enersave.
Significant capital expenditures were incurred to support the growth
in bottled water operations, trailers and other "own and operate"
facilities.

At September 30, 1997, the Company had $23.2 million in cash and cash
equivalents, an increase of $10.9 million from December 31, 1996.
This increase was, however, offset by an increase in short-term 

                                 -8-
/9



borrowings of $4.1 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.

Recent Pronouncements

In 1997, the Financial Accounting Standards Board ("FASB") released
Statement of Financial Accounting Standards No. 128 ("SFAS128"),
"Earnings per Share."  SFAS128 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.  SFAS128
requires restatement of all prior-period EPS data presented.  Neither
basic nor diluted EPS computed in accordance with SFAS128 would be
materially different from the Company's primary EPS presented in the
financial statements.

In 1997, the FASB released Statement of Financial Accounting Standards
No. 130 ("SFAS130"), "Reporting Comprehensive Income." SFAS130
establishes standards for reporting and display of comprehensive
income and its components (revenues, expenses, gains and losses) in a
full set of general-purpose financial statements.  SFAS130 is
effective for fiscal years beginning after December 15, 1997.  This
statement is a disclosure-only statement.

Also in 1997, the FASB released Statement of Financial Accounting
Standards No. 131 ("SFAS131"), "Disclosures About Segments of an
Enterprise and Related Information."  SFAS131 establishes standards
for the way that public business enterprises report information about
operating segments in annual financial statements and requires that
those enterprises report selected information about operating segments
in interim financial statements.  It also establishes standards for
related disclosures about products and services, geographic areas, and
major customers.  SFAS131 is effective for fiscal years beginning
after December 15, 1997.  This Statement is a disclosure-only
statement.

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.

                                 -9-

/10




                        PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

     On September 3, 1997, the Company was served with a third-party
     complaint by Sybron Chemicals, Inc. ("Sybron") and a Sybron
     employee, Michael Moldofsky ("Moldofsky"), in connection with
     litigation pending in the District Court for Dallas County,
     Texas, 44th Judicial District, entitled SGS-Thomson
     Microelectronics, Inc. v. Sybron Chemicals, Inc. and Michael
     Moldofsky.  In the pending litigation, the plaintiff, SGS-Thomson
     Microelectronics, Inc. ("S-T"), alleges that defendants Sybron
     and Moldofsky caused S-T to incur damages of at least $24 million
     as a result of allegedly defective ion-exchange resin
     manufactured and sold to it by Sybron for use in an S-T ultrapure
     water facility serving one of its semiconductor plants.  In the
     third-party complaint filed against the Company, the defendants
     Sybron and Moldofsky allege that in the event they are found
     liable to S-T, the Company may be liable to them for all or part
     of S-T's alleged damages.  The Company installed the resin in
     question into deionized water vessels under a $3,500 contract
     with S-T.  The Company disputes all material allegations made
     against it in the third-party complaint and believes that it
     properly performed its services for S-T.  S-T did not bring suit
     against the Company.  The Company intends to defend itself
     vigorously in this litigation, which is in the early discovery
     stages.

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

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

(b)  Reports on Form 8-K

     The Company filed a report on Form 8-K dated August 27, 1997,
     reporting under Item 5 the renewal of the Company's existing
     stockholder rights agreement through the adoption of a Renewed
     Rights Agreement between the Company and BankBoston N.A. as
     rights agent.  No financial statements were required or filed.


     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.

                                -10-
/11





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



Date:   November 13, 1997        By: /s/Robert J. Halliday           
                                     Robert J. Halliday
                                     Vice President, Finance
                                     (chief financial officer)



















                                   -11-
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                               EXHIBIT INDEX

                                                             Sequentially
                                                              Numbered
Exhibit                                                         Page

  11    Computation of Earnings Per Share                        14
  27    Financial Data Schedule                                  15
                                                         (for electronic
                                                          purposes only)
































                                  -12-
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