FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



             [ 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


                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


                 California                           33-0016355
      (State or other jurisdiction of              (I.R.S. Employer
      incorporation or organization)             Identification  No.)

   400 South El Camino Real, Suite 1100
           San Mateo, California                         94402
           (Address of principal                      (Zip Code)
            executive offices)

                                 (415) 343-9300
              (Registrant's telephone number, including area code)

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 ____

         Total number of units outstanding as of March 31, 1997: 79,846


                                  Page 1 of 16
<PAGE>


   PART 1.  FINANCIAL INFORMATION


   Item 1.  Financial Statements

                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                        March 31,   December 31,
                                                          1997         1996

   Assets
   Investments in real estate:
     Rental property, net of accumulated depreciation
        of $13,431 and $13,077 at March 31, 1997
        and December 31, 1996, respectively            $ 39,595       $ 38,094
     Construction in progress                             2,208          2,184
     Land held for development                            4,914          4,911
     Land held for sale                                   4,873          4,869
                                                       --------       --------

        Total real estate investments                    51,590         50,058

   Cash and cash equivalents                                968             97
   Restricted cash                                          102            102
   Accounts and interest receivable                          24            188
   Note receivable                                          ---            405
   Deferred financing costs and other fees, net of
     accumulated amortization of $826 and $775 at
     March 31, 1997 and December 31, 1996, respectively   1,322          1,223
   Prepaid expenses and other assets                        567            622
                                                       --------        -------

        Total assets                                   $ 54,573        $52,695
                                                       ========        =======









                                   continued -


                                  Page 2 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                     Consolidated Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)

                                                      March 31,     December 31,
                                                        1997           1996

   Liabilities and Partners' Equity (Deficit)
   Liabilities:
     Notes payable                                     $ 19,398       $ 17,256
     Accounts payable and accrued expenses                  862            713
     Interest payable                                        96             67
                                                       --------       --------

        Total liabilities                                20,356         18,036
                                                       --------       --------

   Commitments and contingent liabilities (see Note 4)

   Partners' equity (deficit):
     General partners                                      (891)          (891)
     Limited partners, 79,846 limited
       partnership units outstanding at
       March 31, 1997 and December 31, 1996              35,108         35,550
                                                       --------       --------

        Total partners' equity                           34,217         34,659
                                                       --------       --------

        Total liabilities and partners' equity         $ 54,573       $ 52,695
                                                       ========       ========














                 See accompanying notes to financial statements.


                                  Page 3 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Operations
          (in thousands, except per unit amounts and units outstanding)
                                   (Unaudited)


                                                      Three months ended
                                                          March 31,
                                                       1997        1996

   Revenues:
     Rental income                                  $ 1,539     $ 1,120
     Interest and other income                            8          28
                                                    -------     -------

       Total revenues                                 1,547       1,148
                                                    -------     -------

   Expenses:
     Operating                                          712         525
     Interest expense                                   393         261
     Depreciation and amortization                      391         303
     Expenses associated with undeveloped land          177         183
     General and administrative expenses                316         325
                                                    -------     -------

       Total expenses                                 1,989       1,597
                                                    -------     -------

   Net loss                                         $  (442)    $  (449)
                                                    =======     =======


   Net loss per limited partnership unit            $ (5.54)    $ (5.62)
                                                    =======     =======


   Weighted average number of limited
     partnership units outstanding during
     each period used to compute net loss
     per limited partnership unit                    79,846      79,846
                                                    =======     =======







                 See accompanying notes to financial statements.




                                  Page 4 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

                      Consolidated Statements of Partners'
                      Equity (Deficit) For the three months
                          ended March 31, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)




                                           General      Limited
                                           Partners     Partners       Total

   Balance at December 31, 1996            $ (891)      $ 35,550     $ 34,659

   Net loss                                   ---           (442)       (442)
                                           ------       --------     --------

   Balance at March 31, 1997               $ (891)      $ 35,108     $ 34,217
                                           ======       ========     ========




   Balance at December 31, 1995            $ (891)      $ 37,060     $ 36,169

   Net loss                                   ---           (449)        (449)
                                           ------       --------     --------

   Balance at March 31, 1996               $ (891)      $ 36,611     $ 35,720
                                           ======       ========     ========

















                 See accompanying notes to financial statements.




                                  Page 5 of 16
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statements of Cash Flows (in thousands)
                                   (Unaudited)

                                                              Three months ended
                                                                  March 31,
                                                                1997      1996
                                                             --------   -------

  Cash flows from operating activities:
    Net loss                                                 $  (442)   $ (449)
    Adjustments to reconcile net loss to net cash
     provided by operating activities:
      Depreciation and amortization                              391       303
      Amortization of loan fees, included in interest expense     14        22
      Changes in certain assets and liabilities:
        Accounts and interest receivable                         164       (37)
        Prepaid expenses and other assets                         55        47
        Accounts payable and accrued expenses                    149       247
        Interest payable                                          29        38
        Deferred financing costs and other fees                 (150)      (42)
                                                             -------    ------

      Net cash provided by operating activities                  210       129
                                                             -------    ------

    Cash flows from investing activities:
      Net proceeds from sale of real estate                      ---        84
      Additions to real estate and property development costs (1,481)   (2,354)
                                                             -------    ------

      Net cash used for investing activities                  (1,481)   (2,270)
                                                             -------    ------

    Cash flows from financing activities:
      Net loan proceeds                                        2,200     1,547
       Notes payable principal payments                          (58)      (34)
       Reduction of restricted cash, net                         ---       525
                                                             -------    ------

      Net cash provided by financing activities                2,142     2,038
                                                             -------    ------

    Net increase (decrease) in cash and cash equivalents         871      (103)

    Cash and cash equivalents at beginning of period              97     1,296
                                                             -------    ------

    Cash and cash equivalents at end of period               $   968    $1,193
                                                             =======    ======


                                  - continued -




                                  Page 6 of 16
<PAGE>




                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

        Consolidated Statements of Cash Flows (in thousands) - continued
                                   (Unaudited)

                                                             Three months ended
                                                                  March 31,
                                                                1997      1996
                                                             --------   ------



    Supplemental disclosure of cash flow information:
      Cash paid for interest                                 $   350    $  201
                                                             =======    ======

    Supplemental disclosure of additions to real estate
      and property development costs:
       Purchase price of real estate                         $(1,750)   $  ---
       Reduction of note receivable                              405       ---
       Additions to real estate and property development costs  (136)      ---
                                                             -------    ------

    Net additions to real estate
       and property development costs                        $(1,481)   $  ---
                                                             =======    =======























                 See accompanying notes to financial statements.




                                  Page 7 of 16
<PAGE>




                             RANCON REALTY FUND IV,

                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1997
                                   (Unaudited)



Note 1.  THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors") and Glenborough  Inland Realty  Corporation,  the accompanying
unaudited  financial  statements  contain all  adjustments  (consisting  of only
normal  accruals)  necessary to present fairly the financial  position of Rancon
Realty Fund IV, A California Limited Partnership (the "Partnership") as of March
31, 1997 and December 31, 1996, and the related  statements of  operations,  the
changes in partners'  equity and cash flows for the three months ended March 31,
1997 and 1996.

In December,  1994, RFC entered into an agreement with Glenborough Inland Realty
Corporation  ("Glenborough")  whereby RFC sold to  Glenborough  the  contract to
perform  the  rights  and  responsibilities   under  RFC's  agreement  with  the
Partnership   and  other  related   Partnerships   (collectively,   the  "Rancon
Partnerships")  to  perform  or  contract  on  the  Partnership's   behalf,  for
financial,  accounting,  data processing,  marketing, legal, investor relations,
asset and development management and consulting services for the Partnership for
a period of ten years or until the  liquidation  of the  Partnership,  whichever
comes first. Pursuant to the contract,  the Partnership will pay Glenborough for
its services as follows:  (i) a specified asset  administration  fee of $993,000
per  year,  which is fixed  for five  years  subject  to  reduction  in the year
following the sale of assets;  (ii) sales fees of 2% for improved properties and
4% for land;  (iii) a refinancing  fee of 1% and (iv) a management  fee of 5% of
gross  rental  receipts.  As part of this  agreement,  Glenborough  will perform
certain tasks for the General Partner of the Rancon  Partnerships and RFC agreed
to cooperate with Glenborough,  should Glenborough  attempt to obtain a majority
vote of the limited partners to substitute itself as the General Partner for the
Rancon   Partnerships.   This  agreement  became  effective   January  1,  1995.
Glenborough is not an affiliate of RFC or the Partnership.

Consolidation  - In  order  to  satisfy  certain  lender  requirements  for  the
Partnership's  1996 loan secured by Service  Retail Center,  Promotional  Retail
Center,  and Carnegie  Business Center I, Rancon Realty Fund IV Tri-City Limited
Partnership,  a Delaware limited  partnership  ("RRF IV Tri-City") was formed in
April,  1996. The three properties  securing the loan were contributed to RRF IV
Tri-City  by the  Partnership.  The  limited  partner of RRF IV  Tri-City is the
Partnership  and  the  general  partner  is  Rancon  Realty  Fund  IV,  Inc.,  a
corporation  wholly owned by the Partnership.  Since the Partnership  indirectly
owns 100% of RRF IV Tri-City,  the financial  statements of RRF IV Tri-City have
been consolidated with those of the Partnership.  All intercompany  transactions
have been eliminated in consolidation.

Reclassification  - Certain 1996 balances have been reclassified to conform with
the current period presentation.


                                  Page 8 of 16
<PAGE>

                             RANCON REALTY FUND IV,

                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1997
                                   (Unaudited)


Note 2.  REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes  to  Financial  Statements  included  in the  December  31,  1996  audited
financial statements.

Note 3.  INVESTMENTS IN REAL ESTATE

On February 28,  1997,  the  Partnership  purchased  the  property  known as TGI
Friday's  for  $1,750,000.  The  Partnership  paid  $1,345,000  in cash  and the
existing $405,000 note receivable secured by a deed of trust on the TGI Friday's
property was retired as part of this transaction.

Note 4.  COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the  Sponsor in the amount of  $643,000  at March 31,  1997 for sales
that transpired in previous years. The subordinated real estate  commissions are
payable only after the Limited  Partners  have received  distributions  equal to
their original invested capital plus a cumulative  non-compounded  return of six
percent per annum on their adjusted invested capital.

Note 5.  NOTES PAYABLE

In January,  1997, the Partnership  obtained an unsecured  promissory note for a
$1,500,000 revolving line of credit from Glenborough.  As of March 31, 1997, the
Partnership  had  drawn a total  of  $1,000,000  on the line of  credit  to fund
capital   expenditures  and  other  Partnership   costs.  In  April,  1997,  the
Partnership  drew the remaining  $500,000 on the line of credit.  The loan had a
stated  interest  rate of eleven  percent  (11%)  per  annum,  required  monthly
interest only  payments and had a maturity  date of December 31, 1997.  The loan
was paid off in May 1997, from proceeds of new permanent financing (see below).

On February 28, 1997, the Partnership obtained a $1,200,000 unsecured loan at an
interest  rate of one percent (1%) per annum in excess of the bank "Prime Rate."
The loan was used to finance the acquisition of the TGI Friday's property.  This
loan was also paid off in May 1997, from the proceeds of new permanent financing
(see below).

On May 8, 1997, the Partnership  obtained new permanent  financing of $5,000,000
from Wells Fargo Bank,  secured by real estate  referred to as Circuit  City and
TGI  Friday's.  The  Partnership  used the  proceeds  to pay off the  $1,500,000
Glenborough  line of credit and $1,221,000 to pay off the unsecured  Wells Fargo
Bank loan. In addition,  the Partnership incurred approximately $193,000 in loan
fees and

                                  Page 9 of 16
<PAGE>

                             RANCON REALTY FUND IV,

                        A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                                 March 31, 1997
                                   (Unaudited)

closing costs and held back  $1,956,000 for the Circuit City tenant  improvement
allowance.  The remaining net proceeds of  approximately  $130,000 were added to
the Partnership's cash reserves.

The new loan  bears  interest  at one  percent  (1%) per  annum in excess of the
lender's "Prime Rate," requires  monthly  payments of interest only, and matures
on May 31, 1999 with an option for a one year extension.






                                 Page 10 of 16
<PAGE>



Item 2.  Management's Discussion and Analysis of Financial Conditions and
          Results of Operations.

LIQUIDITY  AND CAPITAL RESOURCES

At March 31, 1997, the  Partnership  had cash of $968,000.  The remainder of the
Partnership's  assets  consist  primarily  of its  investments  in real  estate,
totaling approximately $51,590,000.

The  Partnership's  primary  sources of funds  consist of cash  provided  by its
rental activities,  permanent financing,  construction financing, property sales
and  interest  income on  certificates  of deposit  and other  deposits of funds
invested temporarily, pending their use in the development of properties.

A majority of the  Partnership's  assets are located within the Inland Empire, a
submarket  of  Southern  California,  and have  been  directly  affected  by the
economic weakness of the region.  Management believes,  however, that the market
has  flattened and is no longer  falling in terms of sales prices.  While prices
have not increased  significantly,  the Southern  California  real estate market
appears to be  improving.  Management  continues  to  evaluate  the real  estate
markets in which the Partnership's  assets are located in an effort to determine
the optimal time to dispose of them and realize their maximum value.

Tri-City

The  Partnership  currently  owns  the  following  properties  in  the  Tri-City
Corporate  Center  area  within  the Inland  Empire  submarket  of the  Southern
California region:

           Property                           Type                  Square Feet
  ----------------------------  ----------------------------------  -----------
  One Vanderbilt                Four story office building             73,809
  Two Vanderbilt                Four story office building             69,094
  Carnegie Business Center I    Two light industrial buildings         62,605
  Service Retail Center         Two retail buildings                   20,780
  Promotional Retail Center     Four strip center retail buildings    104,865
  Inland Regional Center        Two story office building              81,079
  TGI Friday's                  Restaurant                              9,386

In addition,  construction of a 38,600 square foot build-to-suit retail building
(referred to as the Circuit  City  property)  was  completed in May 1997 and the
tenant's lease commenced on May 8, 1997.

The  Partnership  also owns  approximately  26 acres of  unimproved  land in the
Tri-City area.

Additionally,  the  Partnership  owns the  Shadowridge  Woodbend  Apartments  (a
240-unit apartment complex) in Vista,  California plus approximately 25 acres of
unimproved land in Riverside County, California.

On May 8, 1997, the Partnership  obtained new permanent  financing of $5,000,000
from Wells Fargo Bank,  secured by real estate  referred to as Circuit  City and
TGI  Friday's.  The  Partnership  used the


                                 Page 11 of 16
<PAGE>


proceeds to pay off the $1,500,000  Glenborough line of credit and $1,221,000 to
pay off the  unsecured  Wells  Fargo Bank loan.  In  addition,  the  Partnership
incurred  approximately  $193,000 in loan fees and  closing  costs and held back
$1,956,000 for the Circuit City tenant improvement allowance.  The remaining net
proceeds  of  approximately  $130,000  were  added  to  the  Partnership's  cash
reserves.

Lake Elsinore

Lake  Elsinore is 24.8 acres of  undeveloped  land,  commercially  zoned in Lake
Elsinore,  Riverside County, California.  Offsite improvements remain on hold at
the Lake Elsinore property and there is no development  activity planned for the
near future.

Perris

Perris is 17.14 acres of unimproved  land near Perris Lake in Perris,  Riverside
County,  California.  There has been no  development  of the Perris  property to
date.  The property is being  marketed  for sale to retail users and  interested
developers.

Temecula

Final map  approval was  received  January 2, 1996 on the 12.4 acre  property in
Temecula,  California.  The Partnership has an executed sales contract on a 3.16
acre parcel for $607,000,  pending a due diligence period.  The sale is expected
to close  between  June,  1997 and January,  1998.  Negotiations  are  currently
underway  for the  sale of two  additional  lots  totaling  1.56  acres  and the
remaining lots are held for sale.

The Partnership has a $100,000  certificate of deposit ("CD") held as collateral
for  subdivision  improvements  and monument bonds related to the 11.29 acres of
land for sale in Temecula,  California.  It is anticipated  that this CD will be
released in 1997.

General Matters

The $149,000 or 21% increase in accounts  payable and accrued  expenses at March
31, 1997 from  December  31, 1996 is largely due to the accrual of property  tax
expenses which are payable in April, 1997.

The  improvement  in cash flow from  operations for the three months ended March
31, 1997 over the three months ended March 31, 1996 is primarily a result of the
placement  of the Inland  Regional  Center  into  service in June,  1996 and the
acquisition of TGI Friday's in February, 1997.

The  General  Partners  continue  to assess the real  estate  market in Southern
California  in an effort to  determine  an  appropriate  time to  liquidate  the
Partnership  and realize the maximum value for its assets.  Cash  generated from
property  sales  may be  utilized  in the  development  of other  properties  or
distributed to the partners.





                                 Page 12 of 16
<PAGE>



RESULTS OF OPERATIONS

Revenues

Rental  income for the three months ended March 31, 1997  increased  $419,000 or
37% over the three months  ended March 31,  1996,  primarily as a result of: (i)
the  commencement of operations of the Inland Regional Center in June 1996; (ii)
rent earned from  Circuit City as the project is under  construction;  (iii) the
acquisition  of the TGI  Friday's  property  in  February,  1997;  and  (iv) the
increased  occupancy at One Vanderbilt,  Two Vanderbilt,  Service Retail Center,
Carnegie  Business  Center I, and  Shadowridge/Woodbend  Apartments in the first
quarter of 1997 over the first quarter of 1996.

Occupancy rates at the  Partnership's  Tri-City  properties as of March 31, 1997
and 1996 were as follows:

                                                             March 31,
                                                          1997       1996
                                                        --------   -------

      One Vanderbilt                                        88%       59%
      Two Vanderbilt                                        63%       13%
      Service Retail Center                                100%       97%
      Carnegie Business Center I                            90%       87%
      Promotional Retail Center-Phase I                     97%       97%
      Inland Regional Center (commenced June, 1996)        100%       n/a
      TGI Friday's (acquired February 28, 1997)            100%       n/a

As of March 31,  1997,  tenants at Tri-City  occupying  substantial  portions of
leased rental space included:  (i) ITT  Educational  Services with a lease which
expires in December,  2004;  (ii) Inland  Regional  Center with a lease  through
July, 2009; (iii) CompUSA with a lease through August,  2003; (iv) PetsMart with
a lease  through  January,  2009;  and (v)  Circuit  City  with a lease  through
January,  2018.  These five tenants,  in the aggregate,  occupied  approximately
201,000 square feet of the 412,000 total leasable  square feet at Tri-City as of
March 31, 1997 and account for 53% of the rental  income  generated  at Tri-City
and 37% of the total rental income for the Partnership  during the first quarter
of 1997.

Interest income decreased $20,000 or 71% during the three months ended March 31,
1997  compared to the three months  ended March 31, 1996 due to a lower  average
cash  balance  in 1997 as a result of  additions  to real  estate  and  property
development  costs in 1996 and the  elimination  of the  interest  income on the
$405,000  note  receivable  that was retired as part of the  acquisition  of TGI
Friday's on February 28, 1997.





                                 Page 13 of 16
<PAGE>


Expenses:

Operating expenses increased $187,000 or 36% in the three months ended March 31,
1997 over the same  period in 1996 due to the  addition  of the Inland  Regional
Center as an operating  property in June, 1996 and property tax refunds received
in the first quarter of 1996.

Interest expense  increased  $132,000 or 50% during the three months ended March
31,  1997  compared  to the same  period  in 1996 due to the  increased  debt to
finance the acquisition and construction of properties over the past year.

Depreciation  and  amortization  for the quarter ended March 31, 1997  increased
$88,000 or 29% from the quarter  ended March 31, 1996  primarily  as a result of
the  acquisition  and  construction of properties such as Inland Regional Center
and TGI Friday's over the past year.

The $9,000 or 3%  decrease  in general and  administrative  expenses  during the
three months ended March 31, 1997 from the three months ended March 31, 1996 was
due to a payment  of  $24,000  for  professional  services  rendered  in 1996 in
connection with the valuation of the limited partner interests; such payment was
not incurred in 1997.  This was partially  offset by legal fees incurred in 1997
for a  landfill  liability  agreement  with the City of San  Bernardino  whereby
monitoring  costs  associated  with landfill will now be shared with the City of
San Bernardino.




                                 Page 14 of 16
<PAGE>



Part II. OTHER INFORMATION


Item 1.  Legal Proceedings

                  None.

Item 2.  Changes in Securities

                  Not applicable.

Item 3.  Defaults Upon Senior Securities

                  Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

                  None.

Item 5.  Other Information

                  None.

Item 6.  Exhibits and Reports on Form 8-K

                  (a)  Exhibits:

                  #27 - Financial Data Schedule

                  (b)  Reports on Form 8-K:

                  None.




                                 Page 15 of 16
<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.


                                     RANCON REALTY FUND IV,
                                     a California Limited Partnership
                                     (Registrant)




Date: May 14, 1997                   By: /s/ Daniel L. Stephenson
                                         ------------------------
                                         Daniel L. Stephenson
                                         Chief Executive Officer and
                                         Chief Financial Officer of
                                         Rancon Financial Corporation,
                                         General Partner of
                                         Rancon Realty Fund IV,
                                         a California Limited Partnership


                                 Page 16 of 16
<PAGE>