**FORM      10-QSB**

**May      31, 2006**

**COMMISSION      FILE NUMBER **
**000-51376**

**RANCHO      SANTA MONICA DEVELOPMENTS INC.**

| **NEVADA**                                                                                                       |   | **83-0414306**                                   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)                                    |   | (IRS                Employer Identification No.) |
|                                                                                                             |   |                                             |
|                                                                                                             |   |                                             |
| **3104                Sunnyhurst Road**                                                                          |   |                                             |
| **North                Vancouver, BC, Canada V7K 2G3**                                                           |   |                                             |
| (Address                of principal executive offices)                                                          |   |                                             |
|                                                                                                             |   |                                             |
|                                                                                                             |   |                                             |
| **(604)                537-5905**                                                                                |   |                                             |
| Issuer's                telephone number                                                                         |   |                                             |
|                                                                                                             |   |                                             |
| **Not                Applicable**                                                                                |
| (Former                name, former address and former fiscal year, if changed since last                report) |

**Yes      x**

**No      x**

**As      of June 13th, 2006, the Issuer had 7,723,499 Shares of Common Stock outstanding.      **

** No      x**

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1.**
**FINANCIAL      STATEMENTS.**

----

**MOORE        & ASSOCIATES, CHARTERED**

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**nta        Monica Developments Inc.**

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** **
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** **
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----

**RANCHO        SANTA MONICA DEVELOPMENTS INC.**

**(A        Development Stage Company)**

**FINANCIAL        STATEMENTS**

**May        31, 2006**

**(Unaudited)**

**(Stated        in U.S. Dollars)**

----

**RANCHO      SANTA MONICA DEVELOPMENTS INC.**

**(A      Development Stage Company)**

**BALANCE      SHEETS**

**(Unaudited)**

**(Stated      in U.S. Dollars)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **May                  31****2006** |         | NOVEMBER                  302005 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |         |                        |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                           |         |                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |         |                        |   |
| **Current**                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           |         |                        |   |
| Cash                  (US Account)                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **$**                               | **7,113**    |                             | $      | 4,346 |   |
| Cash                  (Canadian Account)                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **$**                               | **3,878**    |                             |   |   |   |
| Translation                  Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **$**                               | **(121**     | **)**                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Property**                  (Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                   |   | **$**                               | **80,000**   |                             |   | 80,000 |   |
| Capital                  Improvements                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **$**                               | **5,000**    |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **$**                               | **95,871**   |                             | $      | 84,346 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                |         |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Current**                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                |         |                             |   |   |   |
| Accounts                  payable and accrued                  liabilities                                                              |   | **$**                               | **20,496**   |                             | $      | 10,965 |   |
| Due                  to related parties                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                | **14,000**   |                             |   | 12,800 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                | **34,496**   |                             |   | 23,765 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Note                  Payable**                  (Note 3)                                                                                                                                                                                                                                                                                                                                                                                              |   |                                | **50,000**   |                             |   | 50,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **$**                               | **84,496**   |                             |   | 73,765 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **STOCKHOLDERS’                  EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                |         |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Share                  Capital**                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                |         |                             |   |   |   |
| Authorized:                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                |         |                             |   |   |   |
| 100,000,000                  common shares with a par value of  $0.0001                  per share                                                                                                                                                                                                                                                                                                                                                  |   |                                |         |                             |   |   |   |
| 100,000,000                  preferred shares with a par value of $0.0001                  per share                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| Issued:                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                |         |                             |   |   |   |
| 7,723,499                  common shares                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                | **7,723**    |                             |   | 7,564 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                | **107,982**  |                             |   | 103,366 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Subscriptions                  Receivable**                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                | **14,296**   |                             |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
| **Deficit                  Accumulated During The Development Stage**                                                                                                                                                                                                                                                                                                                                                                                    |   |                                | **(118,570** | **)**                            |   | (100,349 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                | **11,431**   |                             |   | 10,581 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                |         |                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **$**                               | **95,871**   |                             | $      | 84,346 |   |

----

**RANCHO      SANTA MONICA DEVELOPMENTS INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF OPERATIONS**

**(Unaudited)**

**(Stated      in U.S. Dollars)**

|                                                                                                      |   | **Three****Months****Ended****May                  31,****2006** |      | **Three****Months****Ended****May                  31,****2005** |   | **Six****Months****Ended****May                  31,****2006** |   | **Six****Months****Ended****May                  31,****2005** |    | **Cumulative****Period                  From****Inception****May                  28****th****2004                  to****May                  31,****2006** |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|----------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |                                                        |      |                                                        |   |                                                      |   |                                                      |    |                                                                                                                                                    |   |
| **REVENU****E**                                                                                           |   |                                                             |      |                                                             |   |                                                           |   | $                                                              | — |                                                                                                                                                         | $      | — |   | $ | — |   |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
| **OPERATING                  EXPENSES**                                                                   |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
| Travel                  expenses                                                                          |   | $                                                                | —   |                                                             |   | —                                                        |   |                                                           | 1,190   |                                                                                                                                                         |   | — |   |   | 1,190 |   |
| Consulting                  fees                                                                          |   |                                                             | 1,200     |                                                             |   | 6,800                                                          |   |                                                           | 1,200   |                                                                                                                                                         |   | 11,600 |   |   | 23,000 |   |
| General and Administrative                                                                      |   |                                                             | 2,756     |                                                             |   | 2,653                                                          |   |                                                           | 5,781   |                                                                                                                                                         |   | 3,134 |   |   | 12,025 |   |
| Interest on long-term debt                                                                 |   |                                                             | 1,000     |                                                             |   | 1,480                                                          |   |                                                           | 2,500   |                                                                                                                                                         |   | 2,980 |   |   | 8,480 |   |
| Professional                  fees                                                                        |   |                                                             | 6,800     |                                                             |   | 771                                                            |   |                                                           | 7,550   |                                                                                                                                                         |   | 22,265 |   |   | 73,875 |   |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                      |   |                                                             | 11,756    |                                                             |   | 11,704                                                         |   |                                                           | 18,221  |                                                                                                                                                         |   | 39,979 |   |   | 118,570 |   |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
| **NET                  OPERATING LOS****S**                                                               |   | $                                                                | (11,756   | )                                                                | $      | (11,704)                                                       | )      | $                                                              | (18,221 | )                                                                                                                                                            | $      | (39,979 | ) | $ | (118,570 | ) |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
| **Basic**** ****and**** ****Diluted**** ****Loss**** ****per                  Share** |   | $                                                                | (0.01     | )                                                                |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
|                                                                                                      |   |                                                             |      |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |
| Weighted Average Number of Shares                  Outstanding                        |   |                                                             | 7,723,499 |                                                             |   |                                                           |   |                                                           |    |                                                                                                                                                         |   |   |   |   |   |   |

----

**RANCHO      SANTA MONICA DEVELOPMENTS INC.**

**(A      Development Stage Company)**

**STATEMENTS      OF CASH FLOWS**

**(Unaudited)**

**(Stated      in U.S. Dollars)**

|                                                                                                         |   | ThreeMonths                  EndedMay 31 |    | ThreeMonths                  EndedMay 31 |   | SixMonths                  EndedMay 31 |   | SixMonths                  EndedMay 31 |    | Cumulative                  Period From InceptionMay 28th2004 toMay 31 |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|------------------------------------------|--------|----------------------------------------|--------|----------------------------------------|---------|------------------------------------------------------------------------|--------|
|                                                                                                         |   | 2006                                     |    | 2005                                |        | 2006                              |        | 2005                                   |    | 2006                                                                   |   |
| **Cash                  Flows from Operating Activities**                                                    |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |
| Net                  Loss for the Period                                                                     |   | $                                        | (11,756 | )                                        | $      | (11,704                                | )      | $                                      | (18,221 | )                                                                      | $      | (39,979 | ) | $ | (118,570 | ) |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Adjustments                  to Reconcile Loss to Net Cash Used by Operating                  Activities** |   |                                     | 8,031   |                                     |   | 4,980                                  |   |                                   | 9,531   |                                                                   |   | 11,880 |   |   | 20,496 |   |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| Changes                  in Accounts payable and accrued liabilities                                         |   |                                     | 1,200   |                                     |   | 4,980                                  |   |                                   | 1,200   |                                                                   |   |   |   |   | 14,000 |   |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| Changes                  in amounts due to releated parties                                                  |   |                                     | (2,525  | )                                        |   | (6,724                                 | )      |                                   | (7,490  | )                                                                      |   | (28,099 | ) |   | (84,074 | ) |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Cash                  Flows from Investing Activity**                                                      |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| Purchase                  of property                                                                        |   |                                     | — |                                     |   | (4,331                                 | )      |                                   |    |                                                                   |   | (4,331 | ) |   | (30,000 | ) |
| Capital                  Improvements                                                                        |   |                                     |    |                                     |   |                                   |   |                                   | (5,000  | )                                                                      |   |   |   |   | (5,000 | ) |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Cash                  Flows from Financing Activity**                                                      |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| Issue                  of share capital                                                                      |   |                                     | — |                                     |   | 3,000                                  |   |                                   | 4,775   |                                                                   |   | 3,000 |   |   | 115,705 |   |
| Subscriptions                  Receivable                                                                    |   |                                     |    |                                     |   |                                   |   |                                   | 14,296  |                                                                   |   |   |   |   | 14,296 |   |
| Translation                  Adjustments                                                                     |   |                                     |    |                                     |   |                                   |   |                                   | 121     |                                                                   |   |   |   |   | 121 |   |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Increase                  (Decrease) in Cash**                                                             |   |                                     | (2,525  | )                                        |   | (8,055                                 | )      |                                   | 6,717   |                                                                   |   | (29,430 | ) |   | 10,992 |   |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Cash,                  Beginning of Period**                                                               |   |                                     | 4,275   |                                     |   | 43,154                                 |   |                                   | 4,275   |                                                                   |   | 43,154 |   |   | — |   |
|                                                                                                         |   |                                     |    |                                     |   |                                   |   |                                   |    |                                                                   |   |   |   |   |   |   |
| **Cash,                  End of Period**                                                                     |   | $                                        | 1,750   |                                     | $      | 35,099                                 |   |                                   | 10,977  |                                                                   |   | 13,724 |   |   | 10,977 |   |

----

**RANCHO          SANTA MONICA DEVELOPMENTS INC.**

**(A          Development Stage Company)**

**STATEMENT          OF STOCKHOLDERS’ EQUITY**

**PERIOD          FROM INCEPTION, MAY 28, 2004, TO MAY 31, 2006**

**(Unaudited)**

**(Stated          in U.S. Dollars)**

|                                                                                                                                                  |   | **Common                    Stock**  |      |             |   |                                 |   |                            |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|------------------|--------|--------------------------------------|--------|---------------------------------|---------|
|                                                                                                                                                  |   | **Number****of****Common****Shares** |      | **Par****Value** |   | **Additional****Paid-In****Capital** |   | **Subscriptions****Receivable** |    | **Deficit****Accumulated****During                    the****Development****Stage** |   | **Total** |   |
| Shares issued for                    cash at $0.001                    per share -May 28,                    2004            |   |                                 | 4,000,000 |             | $      | 4,000                                |   | $                               | — |   | $ | — |   | $ | — |   | $ | 4,000 |   |
| Shares issued for                    cash at $0.03                    per share -November                    30, 2004   |   |                                 | 3,564,332 |             |   | 3,564                                |   |                            | 106,366 |   |   | (3,000 | ) |   | — |   |   | 103,930 |   |
| Subscriptions                    received - May 31,                    2005                                                            |   |                                 | —   |             |   | —                              |   |                            | — |   |   | 3,000 |   |   | — |   |   | 3,000 |   |
| Net loss for the                    period                                                                                             |   |                                 | —   |             |   | —                              |   |                            | — |   |   | — |   |   | (100,349 | ) |   | (100,349 | ) |
| Balance, November                    30, 2005                                                                                               |   |                                 | 7,564,332 |             |   | 7,564                                |   |                            | 106,366 |   |   | — |   |   | (100,349 | ) |   | 10,581 |   |
| Shares issued for                    cash at $0.03 per                    share -March 20,                    2006 |   |                                 | 159,167   |             | $      | 159                                  |   | $                               | 4,616   |   |   |   |   |   |   |   | $ | 4,775 |   |
| Net loss for the                    period                                                                                             |   |                                 | —   |             |   | —                              |   |                            | — |   |   | — |   |   | (18,221 | ) |   | (18,221 | ) |
| Balance,                    May 31, 2006                                                                                                              |   |                                 | 7,723,499 |             | $      | 7,723                                |   | $                               | 103,366 |   | $ | — |   | $ | (118,570 | ) | $ | (2,865 | ) |

----

**RANCHO**
** **
**SANTA**
** **
**MONICA**
** **
**DEVELOPMENTS**
** **
**LTD.**

**(A        Development Stage Compan**
**y**
**)**

**NOTES**
** **
**TO**
** **
**FINANCIAL**
** **
**STATEMENTS        MAY**
** **
**31,**
** **
**2006**

**(Un**
**a**
**udit**
**e**
**d)**

**(Stated        in U. S. Dollars)**

**1.**
** **
**BASIS          OF PRESENTATION**

**2.          **
** **
**PROPERTY**

**3.          **
** **
**NOTE**
** **
**PAYABLE**

**4.**
** **
**RELATED          PARTIES TRANSACTIONS**

----

**ITEM      2. **
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.**

**Cautionary      Statement Regarding Forward-Looking Statements**

**Corporate      Background**

----

**Recent      Corporate Developments**

| 1.   | ordering                the return of the $100,000 pesos (approximately $10,000) bond to                Ms.                Galan-Rios posted for the re-establishment of the coastal dune;                and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | ordering                the removal of the security measure that prevented further construction                on                the Solidaridad Property. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | $100,000                pesos (approximately $10,000) fine for surpassing the maximum height                and                density of current zoning of the                property; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | $33,201.48                pesos (approximately $3,300) to authorize the area of construction;                and |
|----------------|------------------------------------------------------------------------------------------------------------------|

| 3.   | $2,793.80                pesos (approximately $270) for permission of the use of                land. |
|----------------|-------------------------------------------------------------------------------------------------------|

**Acquisition      of Solidaridad Property**

| (1)   | In                consideration of Ms. Galan-Rios’s grant of all of her interests in the                Solidaridad Property to us, we: (i) paid $30,000 to Ms. Galan-Rios,                and                (ii) issued an unsecured promissory note to Ms. Galan-Rios in the                amount                of $50,000, plus accrued interest at a rate of 12% per year, maturing                on                November 29, 2006; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | We                acknowledged that nine apartment units are being constructed by Ms.                Galan-Rios on land adjacent to the Solidaridad Property and are intended                to be sold or leased to potential tenants on completion of construction; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | We                agreed to provide septic and water services to tenants at a rate                of $50                per apartment unit per month; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | We                agreed that commencing on the completion of construction of the units,                for                a 25 year period following November 29, 2004, we will provide security,                maintenance and gardening services for the Solidaridad Property for                a fee                of $250 per unit per month; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (5)   | We                agreed to grant to Ms. Galan-Rios and any of the potential tenants,                access                to the road presently existing on the Solidaridad                Property. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Location      of Solidaridad Property**

----

**PLAN      OF OPERATION**

----

----

**MILESTONES      AND OBJECTIVES**

** **

| **MILESTONES                AND OBJECTIVES**                                                                                                                                                                                                                                                                                                                                                                                         | **ANTICIPATED                COST** | **TIME                FRAME**       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------|
|  **PHASE                I - COMPANY START-UP** -  Construct                Cabanas.-  Complete                construction of water and septic facilities for the provision of                water                services.-  Construct                reception area.-  Completion                of construction of Apartment Units by Vendor                                   |  **$35,000**                   |  **3                Months**   |
|  **PHASE                II - MANAGEMENT OF SOLIDARIDAD PROPERTY** -  Commence                rental of Cabanas and provision of property management                services.-  Obtain                all necessary regulatory approvals. -  Hire                consultants for provision of maintenance, security and management                services.                                   |  **$5,000**                    |  **3-6                Months** |
|  **PHASE                III - AQUIRING OTHER DEVELOPMENT OR INCOME**  **PRODUCING                PROPERTIES IN MEXICO**  -  Visit                  other resort areas in Mexico to review real estate development                  opportunities -  Negotiate                  purchase of lands -  Cash                    deposit required to secure potential land parcels |  **$50,000**                   |  **12                Months**  |
| **TOTAL**                                                                                                                                                                                                                                                                                                                                                                                                                            | **$65,000**                         | **-**                               |

----

| ***Category***                                 | ***Planned                Expenditures Over******The                Next Twelve Months*** |
|------------------------------------------------|-------------------------------------------------------------------------------------------|
| Professional                Fees               | $31,000                                                                                   |
| General                Administrative Expenses | $9,000                                                                                    |
| Consulting                Fees                 | $12,000                                                                                   |
| Contractor                Fees                 | $11,200                                                                                   |
| Marketing                Expenses              | $3,500                                                                                    |
| **TOTAL**                                      | **$66,700**                                                                               |

**Revenue**

| **Revenue                Stream**                                       | **Projected                Fee**        | **Estimated                Expenses**                               |
|-------------------------------------------------------------------------|-----------------------------------------|---------------------------------------------------------------------|
| Rental                of 2 Cabanas                                      | $60                per Cabana per night | -                                                                   |
| Management                Services for 9 Units                          | $10                per Unit per night   | $600                per month for management consulting services(1) |
| Maintenance,                Security and Gardening Services for 9 Units | $250                per Unit per month  | $600                per month for maintenance/gardening services(2) |
| Septic                and Water Services for 9 Units                    | $50                per Unit per month   | $200                per year for sewer removal and water fees       |
| **Total                per Month**                                      | **-**                                   | **$1,400**                                                          |
| **Total                per Year**                                       | **-**                                   | **$14,600**                                                         |

| (1)   | Commencing                on completion of the apartment units on the adjoining                property. |
|-----------------|----------------------------------------------------------------------------------------------------------|

| (2)   | We                have engaged an independent contractor to provide property maintenance,                gardening and security services to the Solidaridad Property at a                rate of                $400 per month. Upon completion of the apartment units on the adjoining                property and the development of our Solidaridad Property we intend                to                increase the payment rate to our contractor to $600 per month for                property                maintenance, gardening and security services provided to the Solidaridad                Property and the adjoining                property. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**LIQUIDITY      AND CAPITAL RESOURCES**

|                                     | At                May 31st, 2006 | At                November 30, 2005 | Percentage                Increase                / (Decrease) |
|------------------------------------------|----------------------------------|-------------------------------------|----------------------------------------------------------------|
| Current                Assets            | $10,870                          | $4,346                              | 50.1%                                                          |
| Current                Liabilities       | $34,496                          | $23,765                             | 45.1%                                                          |
| Working                Capital (Deficit) | $(23,626)                        | $(19,419)                           | (21.6)%                                                        |

|                                                          | Six                Months EndedMay 31, 2006 | Six                Months EndedMay 31, 2005 | Cumulative                from Inception toFebruary                28th                ,                2006 |
|---------------------------------------------------------------|---------------------------------------------|---------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Cash                Flows from (used in) Operating Activities | $(7,490)                                    | $(28,099)                                   | $(84,074)                                                                                                    |
| Cash                Flows from (used in) Investing Activities | $(5,000)                                    | $(4,331)                                    | $(35,000)                                                                                                    |
| Cash                Flows from (used in) Financing Activities | $19,192                                     | $3,000                                      | $130,122                                                                                                     |
| Net                Increase (decrease) in Cash During Period  | $6,717                                      | $(29,430)                                   | $10,992                                                                                                      |

**OFF-BALANCE      SHEET ARRANGEMENTS **

**CRITICAL      ACCOUNTING POLICIES**

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*Development      Stage Company*

*Property      *

*Stock      Based Compensation*

*Impairment      of Long-Lived Assets*

**RISKS      AND UNCERTAINTIES**

**We      Have Yet To Attain Profitable Operations And Because We Will Need Additional      Financing To Fund The Development Of Our Property, Our Accountants Believe      There      Is Substantial Doubt About Our Ability To Continue As A Going      Concern.**

----

| -   | We                presently do not have sufficient cash on hand to fund our proposed                expenditures for the next twelve months and will require additional                financing if our Solidaridad                Property fails to generate revenues. We                have cash in the amount of $10,870** **as                of June 13th , 2006 and our total expenditures over the next twelve                months                are anticipated to be approximately $131,700. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | We                estimate that we will be required to expend $15,000 on completion                of the                development of our Solidaridad Property and an additional $3,500                on an                initial marketing campaign for the property over the next twelve                months                before we can commence generating revenues from the property. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | We                expect to continue to expend $1,400 per month on fees to consultants                and                contractors until our property is completed. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Our      Short Operating History Makes our Business Difficult To Evaluate, Accordingly,      We Have A Limited Operating History Upon Which To Base An Evaluation Of Our      Business And Prospects.**

| 1.   | construction                delays or cost overruns, which may increase project development                costs. |
|----------------|-------------------------------------------------------------------------------------------------------------------|

| 2.   | an                inability to obtain required governmental permits and                authorizations. |
|----------------|--------------------------------------------------------------------------------------------------------|

| 3.   | failure                to achieve anticipated rentals of our facilities. |
|----------------|--------------------------------------------------------------------------|

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**We      Do Not Own Legal Title To Our Solidaridad Property, And As A Result May Lose      All      Or Substantially All Of Our Interests In The Property **

**Environmental      And Other Regulations May Have An Adverse Effect On Our      Business.**

----

| 1.   | civil                penalties; |
|----------------|---------------------------------|

| 2.   | remediation                expenses; |
|----------------|--------------------------------------|

| 3.   | natural                resource damages; |
|----------------|------------------------------------------|

| 4.   | personal                injury damages; |
|----------------|-----------------------------------------|

| 5.   | potential                injunctions; |
|----------------|---------------------------------------|

| 6.   | cease                and desist orders; and |
|----------------|---------------------------------------------|

| 7.   | criminal                penalties. |
|----------------|------------------------------------|

**We      Are Highly Dependent On Our Senior Management. The Loss Of Any Of Our Executive      Officers Could Have A Material Adverse Effect On Our Business.**

**The      Occurrence In Mexico Of Natural Disasters Could Adversely Affect Our      Business.**

**Because      We Are Significantly Smaller And Less Established Than A Majority Of Our      Competitors, We May Lack The Financial Resources Necessary To Compete      Effectively And Sustain Profitability.**

----

| 1.   | develop                rental facilities |
|----------------|------------------------------------------|

| 2.   | attract                purchasers |
|----------------|-----------------------------------|

| 3.   | sell                undeveloped rural land |
|----------------|--------------------------------------------|

**Because      Our President And Our Vice-President Have Only Agreed To Provide Their Services      On A Part-Time Basis, They May Not Be Able Or Willing To Devote A Sufficient      Amount Of Time To Our Business Operations, Causing Our Business To      Fail.**

**Because      Our President, Mr. Graham Alexander, Owns 53% Of Our Outstanding Common Stock,      Investors May Find That Corporate Decisions Influenced By Mr. Alexander Are      Inconsistent With The Best Interests Of Other      Stockholders.**

**We      Are Vulnerable To Concentration Risks Because Our Current Revenue Sources Are      Linked To The Development of Apartment Units On An Adjoining      Property.**

----

**We      Do Not Carry Comprehensive Liability Insurance. As A Result, Should An Uninsured      Loss Occur, We Could Lose Our Capital Invested In The Solidaridad Property,      As      Well As The Anticipated Future Revenues From Such Property**

**Our      Ability To Issue “Blank Check” Preferred Stock, Could Have The Effect Of      Deterring Or Delaying A Take Over Or Other Change In Control, Denying      Shareholders The Receipt Of A Premium On Their Common Stock And Depress The      Market Price Of Our Common Stock.**

**Our      Adoption Of Stock Based Benefit Plans And Future Equity Financings May Dilute      Existing Stockholders’ Ownership Interests.**

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**ITEM      3. **
**CONTROLS      AND PROCEDURES.**

**Evaluation      Of Disclosure Controls And Procedures**

**Changes      In Internal Controls Over Financial Reporting**

**PART      II - OTHER INFORMATION**

**ITEM      1. **
**LEGAL      PROCEEDINGS.**

**ITEM      2. **
**UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**

**ITEM      3. **
**DEFAULTS      UPON SENIOR SECURITIES.**

**ITEM      4. **
**SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS.**

----

**ITEM      5.**
**OTHER      INFORMATION.**

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**ITEM      6. **
**EXHIBITS      AND REPORTS ON FORM 8-K. **

| Exhibit                Number |   |  Description                of Exhibits                                                                                                                                                                                               |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                           |   | Articles                of Incorporation.(1)                                                                                                                                                                                               |
| 3.2                           |   | Bylaws,                as amended.(1)                                                                                                                                                                                                      |
| 4.1                           |   | Form                of Share Certificate.(1)                                                                                                                                                                                               |
| 10.1                          |   | 2004                Stock Option Plan.(1)                                                                                                                                                                                                  |
| 10.2                          |   | Management                Consulting Agreement dated October 1, 2004 between Rancho Santa Monica                Developments Inc. and Graham G. Alexander.(1)                                                                              |
| 10.3                          |   | Management                Consulting Agreement dated October 1, 2004 between Rancho Santa Monica                Developments Inc. and Angela Manetta.(1)                                                                                   |
| 10.4                          |   | Extension                Agreement dated December 31, 2004 between Rancho Santa Monica Developments                Inc. and Graham G. Alexander.(1)                                                                                        |
| 10.5                          |   | Extension                Agreement dated December 31, 2004 between Rancho Santa Monica Developments                Inc. and Angela Manetta.(1)                                                                                             |
| 10.6                          |   | Purchase                Agreement dated for reference November 29, 2004 between Monica Galan-Rios                and Rancho Santa Monica Developments Inc.(1)                                                                              |
| 10.7                          |   | Promissory                Note dated November 29, 2004 Monica Galan-Rios and Rancho Santa Monica                Developments Inc.(1)                                                                                                       |
| 31.1                          |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                302 of the Sarbanes-Oxley Act of 2002.                                                               |
| 32.1                          |   | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350, as adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002. |

**REPORTS      ON FORM 8-K**

| **Date                of Form 8-K**            | **Date                of Filing with the SEC** | **Description                of the Form 8-K**                                                                                                      |
|------------------------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| March                21st,                2006 | March                21st,                2006 | Issuance                of 159,167 shares for cash at $0.03 per share                                                                               |
| May                11th,                2006   | May                11th,                2006   | Monica                Galan Rios receives all required permits to finish the construction                on the                Solidaridad property |

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**SIGNATURES**

|   |                           |   | **RANCHO                SANTA MONICA DEVELOPMENTS INC.**                                                         |
|--------|--------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|   |                           |   |                                                                                                             |
|   |                           |   |                                                                                                             |
| Date:  | June                30th, 2006 | By:    |  /s/              Graham G. Alexander                                                                       |
|   |                           |   | **GRAHAM                G. ALEXANDER**                                                                           |
|   |                           |   | Chief                Executive Officer, Chief Financial OfficerPresident,                Secretary and Treasurer |
|   |                           |   | (Principal                Executive Officer and                Principal Accounting Officer)                     |
|   |                           |   |                                                                                                             |
|   |                           |   |                                                                                                             |
|   |                           |   |                                                                                                             |
|   |                           |   |                                                                                                             |
| Date:  | June                30th, 2006 | By:    |  /s/              Angela Manetta                                                                            |
|   |                           |   | **ANGELA                MANETTA**                                                                                |
|   |                           |   | Vice                President                                                                                    |
|   |                           |   |                                                                                                             |

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