UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
   (Mark One)

              [X] Quarterly Report Pursuant To Section 13 Or 15(d)
                     Of The Securities Exchange Act Of 1934

                For the quarterly period ended February 28, 2006
                                               -----------------

                [ ] Transition Report Under Section 13 Or 15(d)
                     Of The Securities Exchange Act Of 1934

                    For the transition period ________ to ________

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

                      RANCHO SANTA MONICA DEVELOPMENTS INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

              NEVADA                                     83-0414306
 -------------------------------                     ------------------
 (State or other jurisdiction of                       (IRS Employer
  incorporation or organization)                     Identification No.)


                              3104 Sunnyhurst Road
                      North Vancouver, BC, Canada V7K 2G3
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                    (Address of principal executive offices)


                                 (604) 537-5905
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                           Issuer's telephone number

                                 Not Applicable
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              (Former name, former address and former fiscal year,
                         if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of March 1st, 2006, the Issuer had
7,564,332 Shares of Common Stock outstanding.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

<PAGE>

                         PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS.

The accompanying unaudited financial statements have been prepared in accordance
with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B, and,
therefore, do not include all information and footnotes necessary for a complete
presentation of financial position, results of operations, cash flows, and
stockholders' equity in conformity with generally accepted accounting
principles. In the opinion of management, all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been included and all such adjustments are of a normal recurring nature.
Operating results for the three months ended February 28th, 2006 are not
necessarily indicative of the results that can be expected for the year ending
November 30, 2005.

As used in this Quarterly Report, the terms "we", "us", "our", the "Company" and
"Rancho" mean Rancho Santa Monica Developments Inc. unless otherwise indicated.
All dollar amounts in this Quarterly Report are in U.S. dollars unless otherwise
stated.

<PAGE>

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

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this Quarterly Report constitute
"forward-looking statements". These statements, identified by words such as
"plan", "anticipate," "believe," "estimate," "should", "expect" and similar
expressions include our expectations and objectives regarding our future
financial position, operating results and business strategy. These statements
reflect the current views of management with respect to future events and are
subject to risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those described in the forward-looking statements. Such risks and
uncertainties include those set forth under the caption "Management's Discussion
and Analysis or Plan of Operation" and elsewhere in this Quarterly Report. We
advise you to carefully review the reports and documents we file from time to
time with the Securities and Exchange Commission ("SEC"), particularly our
Annual Reports on Form 10-KSB and our Current Reports on Form 8-K.

Corporate Background

We are a development stage company focused on the development of real estate. We
have acquired real property located in Solidaridad, Mexico on which we plan to
construct certain facilities and provide management services for the apartment
units being constructed on the adjoining property. Ms. Galan-Rios has applied
for all remaining permits to complete construction of the apartment units which
are 80% complete as of October 17, 2005. We expect that completion of the
development of the Solidaridad Property and the apartment units on the adjoining
property will occur within two months from the date all applicable permits are
received.

We are not obligated to fund any of the costs of construction of the apartment
units. Our project requires capital expenditures for infrastructure development
before we can begin generating revenue from our property. Our property
development is 80% complete. We intend to complete the construction of the
cabanas, reception area, sewer system and water facilities in the next three
months using local contractors upon our receipt of a regularization permit from
the local Mexican environmental authority. We estimate that we will be required
to expend $15,000 to complete the development of our property. See "Acquisition
of Solidaridad Property" below.

Recent Corporate Developments

We experienced the following significant developments since our year ending
November 30th, 2005:

On January 18th, 2006, Ms. Galan-Rios, the vendor of our Solidaridad Property,
submitted her application to the Municipality of Solidaridad for a
regularization permit for the building and facilities on the adjoining property.
The application was returned with the following comments:

      1.    That the final resolution from SERMARNAT was required prior to
            issuing the regularization permit; and
      2.    The drawing for the parking locations for tourists was missing from
            the application; and
      3.    The document showing title of the property was missing from the
            application.

One February 2nd, 2006, Ms. Galan-Rios resubmitted the application to the
Municipality of Solidaridad. The application was returned on February 17th, 2006
with the following comment: that the documents that have been received to date
include the PROFEPA permitting fee, the program for reforestation; however the
final resolution from PROFEPA is required to receive the regularization permit.

<PAGE>

Ms. Galan-Rios has applied to PROFEPA for the final resolution document and it
is expected to be received within the next month. Upon receipt of the final
resolution, it will be submitted to the Municipality of Solidaridad to obtain
the regularization permit. Upon receipt of the regularization permit from the
Muncipality of Solidaridad, Mrs. Rios will apply to SERMARNAT for the operations
report and for additional construction needed to complete the proposed
development. We expect to receive the SERMARNAT authorization within five
months. As a result we expect to continue development of our Solidaridad
Property in July, 2006 and to complete the construction by November, 2006.

The Company has identitied other properties of interest in Mexico and management
is conducting due diligence and an evaluation of the properties of interest for
income and development potential.


Acquisition of Solidaridad Property

We entered into an agreement dated for reference November 29, 2004 with Monica
Galan-Rios for the purchase of certain lands located in Solidaridad, Mexico
consisting of approximately 2,120 square meters, See Figure 1 below. Under the
terms of the property purchase agreement with Ms. Galan-Rios:

(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.

We expect that completion of the development of the Solidaridad Property and the
apartment units on the adjoining property will occur within two months from the
date all applicable permits are received. We presently do not have any written
agreements with our third party contractors to provide the management,
maintenance and septic services to the apartment units on the adjoining
property. All understandings and arrangements with our consultants are presently
verbal.

<PAGE>

Under the terms of our agreement with Ms. Galan-Rios, we were assigned her
interest in an occupation order issued by the Ejidal Commissariat of the Ejido
NCPE Jose Maria Pino Suarez for the use and possession of the Solidaridad
Property. Under Mexican law we own the right to possess and make use of the
Solidaridad Property but do not own title to the property until a legal survey
is completed by the Mexican government. The Mexican government is expected to
undertake a legal survey of the Solidaridad Property and surrounding areas
within the next twelve months. Once the legal survey is completed the Mexican
government may require an additional fee prior to effecting a transfer of legal
title to the property to Rancho. Because we do not own legal title to our
Solidaridad Property we are subject to the risk that: (i) conditions may be
imposed on our occupation order for the property and/or the order may be
cancelled; (ii) the Mexican government may delay the implementation of a legal
survey or decide not to undertake a survey of the property; and (iii) if a legal
survey is completed there is no assurance that we will not be required to pay
additional fees for the transfer of legal title to the property or that the
property boundaries will be identical to those granted in the occupation order
issued by the Ejidal Commissariat.

Location of Solidaridad Property

The property consists of the Western half of the fraction of Lot #10 located at
Km 8, Carretara a Tulum-Boca Paila Ejido Jose Maria Pino Suarez Municipality of
Solidaridad, Quintana Roo, Mexico. See Figure 1 below. Solidaridad is one of the
eight municipalities that make up the Mexican state of Quintana Roo. Quintana
Roo is located on the eastern part of the Yucatan Peninsula. It borders the
Mexican states of Yucatan and Campeche to the north and west, the Caribbean Sea
to the east, and the nation of Belize to the south.

                                    Figure 1
                               Property Location

                                    [GRAPHIC]

<PAGE>

PLAN OF OPERATION

Our plan of operation is to acquire, manage, and develop income-producing real
property in Mexico. We have not earned any revenues to date. We are awaiting the
required regulatory federal and municipal permits to be received by Mrs. Rios to
complete construction and commence our operations on the Solidaridad property.
In addition, our company is considering acquiring other development or
income-producing properties in Mexico. Our auditors have made reference to the
substantial doubt as to our ability to continue as a going concern in their
audit report on our audited financial statements for the period ended November
30, 2005. We plan to earn revenues from management services, including
reception, greeting, and general bookkeeping services, provided to the apartment
units being constructed on the land adjacent to the Solidaridad Property and the
operation of certain facilities on the Solidaridad Property.

Once completed, the Solidaridad Property is expected to consist of the two
cabanas, a reception area, washrooms, and a food preparation area. One of the
cabanas is expected to be 8 x 4 meters, and the second cabana is expected to be
6 x 4 meters. Each cabana is oval shaped and is expected to fit a family of 4 to
5 but are also suited for couples.

The amenities that we intend to provide to apartment unit owners and guests are
as follows:

-     a tour of the Mayan ruins including the Tulum Ruins and the Coba Ruins;
      and

-     in-room spa treatments to be booked with reception.

These additional services are expected to be charged out to the guests and are
not included in the rental and future revenue stream for Rancho. We are
presently negotiating with a neighbouring spa and local tour company for
provision of spa packages and tours to residents and guests on the adjoining
property.

The reception area is expected to consist of a separate wooden building unit
already constructed which will check in and check out the guests. This also
includes the bookings for the apartment unit guests and the cabana guests of
Rancho. The guests are expected to be able to book any of the packages they want
to, including any tours, and spa services. The reception area is expected to be
serviced by one person who will also be the grounds keeper.

The nine apartment units on the adjoining property have been sold. Rancho is
presently negotiating with the owners of the apartment units to receive a
commission from the rental of these units on behalf of the owners by Rancho. If
such commission is agreed to by the unit owner, Rancho intends to advertise the
units through various media including brochures, internet, and presentations by
its principals. We also intend initially to market the apartment units and our
rental facilities by creating a website and preparing marketing brochures. We
estimate expending $3,500 on our initial marketing campaign for the Solidaridad
Property. Our fees for property maintenance and management of the apartment
units on the adjoining property are not dependent on the sale or rental of the
apartment units.

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. We intend to hire an additional contractor to provide property
management services to the apartment units on the adjoining property and the
Solidaridad Property at a rate of $600 per month upon completion of the
apartment units and the Solidaridad Property.

<PAGE>

Our business plan is to continue to develop, maintain and manage our Solidaridad
Property. We do not anticipate earning revenues until such time as the units are
constructed on the land adjacent to our Solidaridad Property and we complete
development of the cabanas and the reception area. We are presently in the
development stage of our business and we can provide no assurance that we will
be able to generate revenues from the development and management of our
Solidaridad Property or that the revenues generated will exceed the operating
costs of our business. We currently have no employees. We conduct our business
largely through agreements with consultants, independent contractors and
arms-length third parties. We do not intend to hire any employees over the next
twelve months.

MILESTONES AND OBJECTIVES

The table below highlights our milestones and objectives over the next twelve
months:

<TABLE>
<CAPTION>
========================================================================== ===================== ==================
MILESTONES AND OBJECTIVES                                                    ANTICIPATED COST       TIME FRAME
-------------------------------------------------------------------------- --------------------- ------------------
<S>                                                                        <C>                   <C>
PHASE I - COMPANY START-UP                                                       $10,000             3 Months

-    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
-------------------------------------------------------------------------- --------------------- ------------------

PHASE II - MANAGEMENT OF SOLIDARIDAD PROPERTY                                     $5,000            3-6 Months

-    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.
-------------------------------------------------------------------------- --------------------- ------------------

PHASE III - AQUIRING OTHER DEVELOPMENT OR INCOME                                 $50,000             12 Months
            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
-------------------------------------------------------------------------- --------------------- ------------------
                                  TOTAL                                          $65,000                 -
========================================================================== ===================== ==================
</TABLE>

We anticipate spending approximately $65,000 in pursuing our plan of operation
and to pursue other development properties in Mexico over the next twelve
months. Currently, we have cash of $2,576, which is insufficient to allow us to
meet our current commitments and to complete our plan of operation for the next
twelve months. In addition, we do not expect our business to achieve
profitability in the near future as we expect to continue to incur substantial
product development, marketing and operating expenses. We are likely to need
substantial additional financing in order to implement our long term business
strategy and plan of operation. We anticipate that any additional financing will
likely be in the form of equity financing as substantial debt financing is not
expected to be available at this stage of our business.


<PAGE>

Our actual expenditures and business plan may differ from the one stated above.
Our Board of Directors may decide not to pursue this plan. In addition, we may
modify the plan based on available financing.

In addition to the costs outlined above, we anticipate that we will incur over
the next twelve months the following expenses:


          ----------------------------------------------------------
          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
          ----------------------------------------------------------

Our total expenditures over the next twelve months are anticipated to be
approximately $131,700, the majority of which is due to the development of our
Solidaridad Property, general, legal, accounting and administrative expenses as
a result of our becoming a reporting issuer under the Exchange Act.

<PAGE>

Revenue

In addition to providing maintenance services and septic/water services to
tenants of the adjoining property, we plan to construct a reception area and two
cabanas on the Solidaridad Property for rental to tenants and/or tourists.
Initially, we anticipate revenue will be generated through the following
channels:

<TABLE>
<CAPTION>
------------------------------------------ ------------------------------------ --------------------------------
             Revenue Stream                           Projected Fee                   Estimated Expenses
------------------------------------------ ------------------------------------ --------------------------------
<S>                                        <C>                                  <C>
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        $250 per Unit per month              $600 per month for
Services for 9 Units                                                            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
------------------------------------------ ------------------------------------ --------------------------------
</TABLE>

      (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.


In the event we do not generate any revenues from our Solidaridad Property, we
will not have sufficient cash on hand to fund our proposed expenditures for the
next twelve months and will require additional financing to pursue our stated
plan of operation. We anticipate that such funding will be in the form of equity
financing from the sale of our common stock. However, we cannot provide
investors with any assurance that we will be able to raise sufficient funding
from the sale of our common stock to fund additional expenditures. The risky
nature of this enterprise and lack of tangible assets places debt financing
beyond the credit-worthiness required by most banks or typical investors of
corporate debt until we generate revenues from our property development. We do
not have any arrangements in place for any future equity financing.

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

<TABLE>
<CAPTION>

Working Capital
                                     --------------------------- --------------------------- ---------------------------
                                         At February 28th, 2006        At November 30, 2005          Percentage
                                                                                               Increase / (Decrease)
                                     --------------------------- --------------------------- ---------------------------
<S>                                  <C>                         <C>                         <C>
Current Assets                                 $1,751                      $4,346                     (59.7)%
Current Liabilities                           $32,467                     $23,765                      36.6%
                                     --------------------------- --------------------------- ---------------------------
Working Capital (Deficit)                    $(30,761)                   $(19,419)                    (63.9)%
                                     =========================== =========================== ===========================

Cash Flows
----------                                               --------------------- --------------------- --------------------
                                                          Three Months Ended    Three Months Ended     Cumulative from
                                                                                                        Inception to
                                                                                                       February 28th ,
                                                          February 28, 2006    February 28th, 2005          2006
                                                         --------------------- --------------------- --------------------
Cash Flows from (used in) Operating Activities                 $(2,525)              $(6,724)             $(79,180)
Cash Flows from (used in) Investing Activities                    -                  $(4,331)             $(30,000)
Cash Flows from (used in) Financing Activities                    -                   $3,000              $110,930
                                                         --------------------- --------------------- --------------------
Net Increase (decrease) in Cash During Period                  $(2,525)              $(8,055)              $1,750
                                                         ===================== ===================== ====================
</TABLE>

As of March 7th, 2006 we had cash on hand of $1,765. Since our inception, we
have used our common stock to raise money for our operations and for our
property acquisitions. We have not attained profitable operations and are
dependent upon obtaining financing to pursue our plan of operation. For these
reasons, our auditors stated in their report to our audited financial statements
for the year ended November 30, 2005, that there is substantial doubt that we
will be able to continue as a going concern.

We anticipate continuing to rely on equity sales of our common stock in order to
continue to fund our business operations. Issuances of additional shares will
result in dilution to our existing stockholders. There is no assurance that we
will achieve any of additional sales of our equity securities or arrange for
debt or other financing for to fund our planned business activities.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.

CRITICAL ACCOUNTING POLICIES

The financial statements presented with this quarterly report on Form 10-QSB
have been prepared in accordance with generally accepted accounting principles
in the United States of America for interim financial information. These
financial statements do not include all information and footnote disclosures
required for an annual set of financial statements prepared under United States
generally accepted accounting principles. In the opinion of our management, all
adjustments (consisting solely of normal recurring accruals) considered
necessary for a fair presentation of the financial position, results of
operations and cash flows as at August 31, 2005 and for all periods presented in
the attached financial statements, have been included. Interim results for the
nine month period ended August 31, 2005 are not necessarily indicative of the
results that may be expected for the fiscal year as a whole.

We have identified below certain accounting policies that are most important to
the portrayal of our current financial condition and results of operation:

Development Stage Company

Rancho is a development stage company as defined in the Statements of Financial
Accounting Standards No. 7. Rancho is devoting substantially all of its present
efforts to establish a new business and none of its planned principal operations
have commenced. All losses accumulated since inception have been considered as
part of the Rancho's development stage activities.

<PAGE>

Property

Property consists of land and is recorded at cost. Land improvements are
capitalized and maintenance, repairs and minor replacements are expensed as
incurred.

Stock Based Compensation

Rancho accounts for employee stock based compensation using the intrinsic value
method prescribed in Accounting Principles Board Opinion No. 25 - "Accounting
for Stock Issued to Employees", and related interpretations. Accordingly,
compensation cost for stock options is measured as the excess, if any, of the
market price of the Company's common stock at the date of the grant over the
amount an employee must pay to acquire the common stock. Non-employee stock
based compensation is accounted for using the fair value method in accordance
with SFAS No. 123 - "Accounting for Stock Based Compensation".

Impairment of Long-Lived Assets

Rancho periodically evaluates potential impairments of its long-lived assets,
including intangibles. When Rancho determines that the carrying value of
long-lived assets may not be recoverable based upon the existence of one or more
indicators of impairment, Rancho evaluates the projected undiscounted cash flows
related to the assets. If these cash flows are less than the carrying value of
the assets, Rancho measures the impairment using discounted cash flows or other
methods of determining fair value.

Long-lived assets to be disposed of are carried at the lower of cost or fair
value less estimated costs of disposal.

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 have incurred a net loss of $112,105 for the period from May 28, 2004
(inception) to February 28th, 2006, and have no revenues to date. Our future is
dependent upon successful completion of our development program and obtaining
adequate financing to fulfill our development activities. The following factors
raise substantial doubt that we will be able 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 $1,765 as of March 7th , 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.

-     We cannot complete the development of our property which is presently 80%
      complete, until we receive the required permits from the Mexican
      Government, and there is no assurance that we will receive the required
      permits.

<PAGE>

Our financial statements included with this quarterly report have been prepared
assuming that we will continue as a going concern. Our auditors have made
reference to the substantial doubt as to our ability to continue as a going
concern in their audit report on our audited financial statements for the period
ended November 30, 2005. Our project requires capital expenditures for
infrastructure development before we can begin generating revenue from our
property. If we are unsuccessful in our development efforts, we may not be able
to recover the capital expenditures that we have incurred. If we are not able to
achieve revenues or complete our development program, then we may not be able to
continue as a going concern and our financial condition and business prospects
will be adversely affected. These factors raise substantial doubt that we will
be able to continue as a going concern and adversely affect our ability to
obtain additional financing.

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.

Our business is in the early stage of development and we have not generated any
revenues or profit to date. Further development of our Solidaridad Property is
necessary prior to our achieving revenues or profitability. We estimate that we
will expend $15,000 over the next twelve months on the development of our
Solidaridad Property. We expect to expend an additional $50,000 in identifiying
new properties for development in Mexico. We have a limited operating history
upon which to base an evaluation of our business and prospects. Our business and
prospects must be considered in light of the risks, expenses and difficulties
frequently encountered by companies in their early stage of development,
particularly companies involved in real estate development.

Our real estate development activities entail risks that include:

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.

In addition, our real estate development activities require capital
expenditures. We have to obtain funds for our capital expenditures through cash
flow from operations or financings. We cannot assure you that funds available
from cash flow and financings will be sufficient to fund our required or desired
capital expenditures for development. If we are unable to obtain sufficient
funds, we may have to defer or otherwise limit development activities. To
address these risks, we must successfully implement our business plan. We may
not successfully implement all or any of our business strategies or successfully
address the risks and uncertainties that we encounter.

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

Under the terms of the property purchase agreement for our Solidaridad Property,
Ms. Galan-Rios assigned to us her interest in an occupation order issued by the
Ejidal Commissariat of the Ejido NCPE Jose Maria Pino Suarez for the use and
possession of the Solidaridad Property. Under Mexican law we own the right to
possess and make use of our Solidaridad Property but do not own title to the
property until a legal survey is completed by the Mexican government. Because we
do not own legal title to our Solidaridad Property we are subject to the risk
that: (i) conditions may be imposed on our occupation order for the property
and/or the order may be cancelled; (ii) the Mexican government may delay the
implementation of a legal survey or decide not to undertake a survey of the
property; and (iii) if a legal survey is completed there is no assurance that we
will not be required to pay additional fees for the transfer of legal title to
the property or that the property boundaries will be identical to those granted
in the occupation order issued by the Ejidal Commissariat. The occurrence of any
of the above risks would have a material adverse effect our business, results of
operations or financial condition.

<PAGE>

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

Our present operations and development activities in Mexico are subject to
Mexican state and local laws and regulations, respectively, relating to the
protection of the environment, including those concerning water supply,
wastewater, noise, soil pollution and generation and handling of hazardous waste
and materials and environmental impact.

If Ms. Galan-Rios is not successful in obtaining the regularization permit for
our Solidaridad Property we will not be able to complete our property
development, which would materially adversely affect our financial condition and
our business plan. We are also subject to administrative sanctions for any
breaches of Mexican environmental law as administered by PROFEPA, which can
result in fines ranging from $350 to $70,000, the requirement to perform
environmental assessments, and which may result in temporary or permanent
closure of all or part of any facilities on our property.

We believe that we are in compliance in all material respects with all Mexican
state and local laws and regulations relating to water, atmospheric pollution,
hazardous wastes or substances. We have not been notified by any environmental
authority or any third party, of any material noncompliance, liability or claim
related to those environmental matters in connection with any of our present
properties. The possibility exists that in the future that our facilities and
operations will encounter: (i) newer and stricter state or local environmental
laws and regulations, (ii) more rigorous interpretations of existing
environmental laws and regulations, and/or (iii) stricter enforcement of
federal, state and local environmental law regulations.

The Solidaridad Property is subject to federal, state and local regulations and
restrictions that may impose significant limitations on our ability to develop
them. In addition, our ownership and operation of real property is subject to
extensive and evolving federal, state and local environmental laws and other
regulations. The provisions and enforcement of these environmental laws and
regulations may become more stringent in the future. Violations of these laws
and regulations can result in:

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.

<PAGE>

In addition, some of these environmental laws impose strict liability, which
means that we may be held liable for any environmental damages on our property
regardless of our fault. The presence of hazardous substances on a property may
also adversely affect our ability to sell or develop the property or to borrow
using the property as collateral.

Changes in laws or the interpretation thereof, new enforcement of laws, the
identification of new facts or the failure of other parties to perform
remediation could all lead to new or greater liabilities that could materially
adversely affect our business, results of operations or financial condition.

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.

Our future success is highly dependent upon the continued employment of our
senior management. The loss of any of our executive officers could have a
material adverse effect on our business. We believe that our continued success
depends to a significant extent upon the efforts and abilities of our senior
management and in particular Graham Alexander, our president, chief financial
officer, chief executive officer, secretary and treasurer. The loss of Mr.
Alexander's business experience, personal knowledge of the Tulum region where
our property is located, and his local business contacts in Mexico, could
materially adversely affect our business, results of operations or financial
condition.

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

Our property is located in Mexico. The occurrence of natural disasters, such as
fires, hurricanes, floods, unusually heavy or prolonged rain and droughts in
Mexico could have a material adverse effect on our ability to develop properties
or realize income from our property.

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.

Our competitors have substantially greater capital resources, name recognition,
expertise in commercial real estate development and marketing. A number of
residential and commercial developers and real estate services companies, some
with greater financial and other resources, compete with us in seeking
properties for acquisition, resources for development and prospective
purchasers. Competition from other real estate developers and real estate
services companies may adversely affect our ability to:

1. develop rental facilities

2. attract purchasers

3. sell undeveloped rural land

The presence of competing real estate development companies in Mexico may impact
on our ability to raise additional capital in order to fund our property
acquisitions or property developments in Mexico if investors are of the view
that investments in competitors are more attractive. Competition could also
reduce the availability of properties of merit or increase the cost of acquiring
the properties.

<PAGE>

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.

Our directors and officers are employed on a full time basis by other companies.
Because we are in the early stages of our business, Mr. Alexander, our
president, chief financial officer, chief executive officer, secretary and
treasurer, and Ms. Manetta, our vice-president, are not expected to spend a
significant amount of time on our business. Mr. Alexander and Ms. Manetta each
expect to expend approximately 8-10 hours per week on our business. Competing
demands on their time may lead to a divergence between their interests and the
interests of other shareholders.

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.

Mr. Graham Alexander, our president, chief financial officer, chief executive
officer, secretary and treasurer, controls 53% of our issued and outstanding
shares of common stock. Accordingly, in accordance with our articles of
incorporation and bylaws, Mr. Alexander is able to control who is elected to our
board of directors and thus could act, or could have the power to act, as our
management. The interests of Mr. Alexander may not be, at all times, the same as
that of other shareholders. Since Mr. Alexander is not simply a passive investor
but is also one of our active executives, his interests as an executive may, at
times, be adverse to those of passive investors. Where those conflicts exist,
our shareholders will be dependent upon Mr. Alexander exercising, in a manner
fair to all of our shareholders, his fiduciary duties as an officer or as a
member of our board of directors. Also, Mr. Alexander will have the ability to
significantly influence the outcome of most corporate actions requiring
shareholder approval, including the merger of Rancho with or into another
company, the sale of all or substantially all of our assets and amendments to
our articles of incorporation. This concentration of ownership with Mr.
Alexander may also have the effect of delaying, deferring or preventing a change
in control of Rancho which may be disadvantageous to minority shareholders.

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

A majority of our revenues are expected to be derived from the provision of
management services and maintenance services to occupants of a condominium
development on a property adjacent to our property in Solidaridad, Mexico. If
the construction of the apartment units on the neighboring property is delayed
or terminated, we may lose the source of all or substantially all of our
revenues. Our substantial dependence on a single prospect property for cash flow
increases the risk of our future success.

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

We do not currently carry comprehensive liability, fire, hurricane, storm,
earthquake and business interruption insurance with respect to our business
operations in Mexico. 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 and would continue to be obligated on any indebtedness or
other obligations related to the property. Any such loss could have a material
adverse effect on Rancho.

<PAGE>

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.

Rancho's board of directors, without any action by Rancho's shareholders, has
the authority to issue the remaining undesignated and unissued authorized shares
and to fix the powers, preferences, rights and limitations of such shares or any
class or series thereof, without shareholder approval. Persons acquiring such
shares could have preferential rights with respect to voting, liquidation,
dissolution or dividends over existing shareholders. The ability to issue
undesignated shares, could have the effect of deterring or delaying a take over
or other change in control, deny shareholders the receipt of a premium on their
common stock and depress the market price of Rancho's common stock.

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

In November, 2004, our board of directors approved the 2004 Stock Option Plan
(the "2004 Plan"). Under the 2004 Plan, options to purchase up to 750,000 shares
of our common stock may be granted to our employees, officers, directors, and
eligible consultants. The 2004 Plan will increase our future compensation costs,
thereby reducing our earnings, and shareholders may experience a reduction in
ownership interest in the event newly issued shares are used to fund awards made
under the plan. Further, we rely upon the availability of equity capital to fund
our growth, which financing may or may not be available on favorable terms or at
all. Equity capital could include our common stock or preferred stock. We cannot
guarantee that additional financing, refinancing or other capital will be
available in the amounts we desire or on favorable terms.

As of March 1, 2005, we have raised equity capital through the issuance of
4,000,000 shares of our restricted common stock to our President, Mr. Alexander,
on May 28, 2004 and through the offering of 3,564,332 shares of our restricted
common stock to certain shareholders on November 30, 2004. On May 28, 2006,
4,000,000 shares of our common stock held by Mr. Alexander will be available for
resale to the public in accordance with the volume, public notice and trading
limitations of Rule 144. On November 30, 2006, an additional 3,564,332 shares of
our common stock will be available for resale to the public in accordance with
the volume, public notice and trading limitations of Rule 144. Subject to the
completion of the development of our Solidaridad Property and any revenues
generated in relation thereto, we anticipate continuing to rely on equity sales
of our common stock in order to fund our business operations. Issuances of
additional shares will result in dilution to our existing stockholders. There is
no assurance that we will achieve any additional sales of our equity securities
or arrange for debt or other financing to fund our planned business activities.


ITEM 3.  CONTROLS AND PROCEDURES.

Evaluation Of Disclosure Controls And Procedures

As of the end of the period covered by this Quarterly Report, our management
carried out an evaluation, under the supervision and with the participation of
our principal executive officer and principal financial officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).
Based on this evaluation, our principal executive officer and principal
financial officer has concluded that our disclosure controls and procedures are,
as of the date covered by this Quarterly Report, effective to ensure that the
information required to be disclosed by us in the reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the SEC rules and forms.

<PAGE>

Changes In Internal Controls Over Financial Reporting

In connection with the evaluation of our internal controls during our last
fiscal quarter, our principal executive officer and principal financial officer
has determined that there have been no changes to our internal controls over
financial reporting that has materially affected, or is reasonably likely to
materially affect, our internal controls over financial reporting.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

None.


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

None.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

None.


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

None.


ITEM 5.  OTHER INFORMATION.

None.

<PAGE>

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.

(1)   Filed with the SEC as an exhibit to our Registration Statement on Form
      SB-2 originally filed on January 29, 2005, as amended.

REPORTS ON FORM 8-K

We filed the following Current Reports on Form 8-K during the fiscal quarter
ended February 28th, 2006:

Date of Form 8-K    Date of Filing with the SEC      Description of the Form 8-K
----------------    ---------------------------      ---------------------------
Dec 16, 2005        January 5th, 2006                Resignation of the
                                                     Company's auditor,
                                                     Morgan and Company.

Dec 16, 2005        January 25th, 2006               Engagement of Moore and
                                                     Associates Chartered as the
                                                     Company's auditor.

Dec 16, 2005        February 2nd, 2006               An amendment to the January
                                                     25th, 2006 8K with regards
                                                     to clarification of the
                                                     (a)(1)(iv) of Item 304 of
                                                     Regulation S-B, 1934 with
                                                     respect to the engagement
                                                     of Moore and Associates,
                                                     Chartered.
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                                    RANCHO SANTA MONICA DEVELOPMENTS INC.


Date:       March 7th, 2005    By:  /s/ GRAHAM G. ALEXANDER
            ----------------        -------------------------------------
                                    GRAHAM G. ALEXANDER
                                    Chief Executive Officer,
                                    Chief Financial Officer
                                    President, Secretary and Treasurer
                                    (Principal Executive Officer
                                    and Principal Accounting Officer)




Date:       March 7th, 2005    By:  /s/ ANGELA MANETTA
            ----------------        -------------------------------------
                                    ANGELA MANETTA
                                    Vice President


<PAGE>
                      RANCHO SANTA MONICA DEVELOPMENTS INC.
                          (A Development Stage Company)


                              FINANCIAL STATEMENTS


                                  Feb 28, 2006
                                   (Unaudited)
                            (Stated in U.S. Dollars)

<PAGE>

MOORE & ASSOCIATES, CHARTERED
  ACCOUNTANTS AND ADVISORS
  ------------------------
      PCAOB REGISTERED


             Report of Independent Registered Public Accounting Firm
             -------------------------------------------------------

Rancho Santa Monica Developments Inc.
(A Development Stage Company)
Las Vegas, Nevada


We have reviewed the accompanying balance sheet of Rancho Santa Monica
Developments Inc. (A Development Stage Company). as of February 28, 2006, and
the related statements of income, retained earnings, and cash flows for the
three months then ended, in accordance with the standards of the Public Company
Accounting Oversight Board (United States). All information included in these
financial statements is the representation of the management of Rancho Santa
Monica Developments Inc. (A Development Stage Company).

A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to the financial statements in order for them to be in conformity with
generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the
company will continue as a going concern. As discussed in the notes to the
financial statements, the Company has no established source of revenue and no
operations. This raises substantial doubt about the Company's ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from this uncertainty.


/s/ Moore & Associates, Chartered

Moore & Associates, Chartered
Las Vegas, Nevada
March 6, 2006




             2675 S. JONES BLVD. SUITE 109, LAS VEGAS, NEVADA 89146
             ======================================================
                       (702) 253-7511 Fax: (702)253-7501
                       =================================

<PAGE>

                      RANCHO SANTA MONICA DEVELOPMENTS INC.
                          (A Development Stage Company)

                                 BALANCE SHEETS
                                   (Unaudited)
                            (Stated in U.S. Dollars)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                                                            FEB 28        NOVEMBER 30
                                                                             2006            2005
----------------------------------------------------------------------- ---------------- ---------------
<S>                                                                    <C>                <C>
ASSETS

Current
     Cash                                                               $       1,751    $        4,346

Property (Note 2)                                                              80,000            80,000
                                                                        -------------    ---------------

                                                                        $      81,751    $       84,346
======================================================================= =============    ===============

LIABILITIES

Current
     Accounts payable and accrued liabilities                           $      18,467    $       10,965
      Due to related parties                                                   14,000            12,800
                                                                        -------------    ---------------
                                                                               32,467            23,765

Note Payable (Note 3)                                                          50,000            50,000
                                                                        -------------    ---------------
                                                                        $      82,467            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:
        7,564,332 common shares                                                 7,564             7,564

     Additional paid-in capital                                               103,366           103,366

Subscriptions Receivable                                                        -                     -

Deficit Accumulated During The Development Stage                             (112,105)         (100,349)
                                                                        -------------    ---------------
                                                                               (1,175)           10,581
                                                                        -------------    ---------------
                                                                        $      81,751    $       84,346
=====================================================================================    ==============
</TABLE>


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

<PAGE>


                      RANCHO SANTA MONICA DEVELOPMENTS INC.
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                            (Stated in U.S. Dollars)


<TABLE>
<CAPTION>
                                                                             Cumulative
                                                                               Period
                                            Three               Three           From
                                            Months              Months       Inception May
                                             Ended              Ended         28th 2004
                                            Feb 28              Feb 28        to Feb 28
                                             2006                2005            2006
------------------------------------------------------------------------------------------
<S>                                      <C>             <C>            <C>

REVENUE                                   $            - $             - $              -
                                         -------------------------------------------------


OPERATING EXPENSES

     Consulting fees                               1,200           6,800           23,000
                                                                                    9,000
     General and Administrative                    2,756           2,653
     Interest on long-term debt                    1,000           1,480            6,980

     Professional fees                             6,800             771           73,125

                                         -------------------------------------------------

                                                  11,756          11,704          112,105
                                         -------------------------------------------------

NET OPERATING LOSS                       $      (11,756) $      (11,704) $      (112,105)

------------------------------------------------------------------------------------------



Basic and Diluted Loss per Share         $        (0.01)
--------------------------------------------------------


Weighted Average Number of Shares
     Outstanding                               7,564,332
--------------------------------------------------------
</TABLE>





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

<PAGE>


                      RANCHO SANTA MONICA DEVELOPMENTS INC.
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                            (Stated in U.S. Dollars)


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                      Three          Three          Cumulative
                                                                      Ended          Months            from
                                                                      Ended          Ended         May 28, 2004
                                                                  Feb 28, 2006    Feb 28, 2005      to Feb 28,
                                                                                                       2006
-----------------------------------------------------------------------------------------------------------------
<S>                                                            <C>              <C>             <C>
Cash Flows From Operating Activities

Net Loss for the Period                                         $      (11,756) $     (11,704)  $      (112,105)

Adjustments to Reconcile Loss to Net Cash Used by Operating
Activities

   Changes in Accounts payable and accrued liabilities                    8,031          4,980            18,925
   Changes in amounts due to related parties                              1,200          4,980            14,000
                                                                  -----------------------------------------------
                                                                        (2,525)        (6,724)          (79,180)
                                                                              -              -
                                                                  -----------------------------------------------

Cash Flows from Investing Activity
    Purchase of property                                                      -        (4,331)          (30,000)
                                                                  -----------------------------------------------

Cash Flows from Financing Activity
    Issue of share capital                                                    -          3,000           110,930
                                                                  -----------------------------------------------

Increase (Decrease) In Cash                                             (2,525)        (8,055)             1,750

Cash, Beginning of Period                                                 4,275         43,154                 -
                                                                  -----------------------------------------------

Cash, End of Period                                             $         1,750 $       35,099  $          1,750
-----------------------------------------------------------------------------------------------------------------
</TABLE>







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

<PAGE>

                      RANCHO SANTA MONICA DEVELOPMENTS INC.
                          (A Development Stage Company)

                        STATEMENT OF STOCKHOLDERS' EQUITY

              PERIOD FROM INCEPTION, MAY 28, 2004, TO FEB 28, 2006
                                   (Unaudited)
                            (Stated in U.S. Dollars)



<TABLE>
<CAPTION>
                                           COMMON STOCK
                            ---------------------------------------                      DEFICIT
                               NUMBER                                                  ACCUMULATED
                                 OF                      ADDITIONAL                     DURING THE
                               COMMON         PAR          PAID-IN    SUBSCRIPTIONS    DEVELOPMENT
                               SHARES        VALUE         CAPITAL      RECEIVABLE        STAGE        TOTAL
                            ------------- ------------ ------------ --------------- -------------- ---------------
<S>                        <C>            <C>          <C>          <C>             <C>           <C>
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
Net loss for the period           -             -              -           -              (11,756)       (11,756)
                            ------------- ------------ ------------ --------------- -------------- ---------------

Balance, Feb 28, 2006         7,564,332   $    7,564   $    103,366 $      -        $    (112,105) $      (1,175)
                            ============= ============ ============ =============== ============== ===============
</TABLE>







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

<PAGE>

                      RANCHO SANTA MONICA DEVELOPMENTS LTD.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                                  MAY 31, 2005
                                   (Unaudited)
                            (Stated in U. S. Dollars)


1.   BASIS OF PRESENTATION

     The unaudited financial statements as of February 28th, 2006 included
     herein have been prepared without audit pursuant to the rules and
     regulations of the Securities and Exchange Commission. Certain information
     and footnote disclosures normally included in financial statements prepared
     in accordance with United States generally accepted accounting principles
     have been condensed or omitted pursuant to such rules and regulations.

     In the opinion of management, all adjustments (consisting of normal
     recurring accruals) considered necessary for a fair presentation have been
     included. It is suggested that these financial statements be read in
     conjunction with the November 30, 2004 audited financial statements and
     notes thereto.

2.   PROPERTY

     By an agreement, dated November 29, 2004, the Company acquired the right to
     possess and make use of a fraction of a property located in the State of
     Quintana Roo, Mexico, for consideration of a $30,000 cash payment by
     December 31, 2004, and a $50,000 unsecured promissory note. The Company
     will own title to the property upon completion of a legal survey by the
     Mexican Government.

     A total of nine apartment units are currently under construction on the
     portion of the property not purchased. Upon completion of construction, the
     Company will receive maintenance and management fees of $250 per unit per
     month, and service fees of $50 per unit per month.

3.   NOTE PAYABLE

     Note Payable is comprised of a $50,000 unsecured promissory note, bearing
     interest at 12% per annum and payable in full on November 29, 2006.

4.   RELATED PARTIES TRANSACTIONS

     During the three month period ended February 28th, 2006, pursuant to
     written agreements, the Company paid Directors and Officers a total of
     $1,200 for management services. Cumulatively to that date, management fees
     paid to Directors and Officers totals $23,000. The amount $14,000 remains
     unpaid.