U.S. SECURITIES AND EXCHANGE COMMISSION PRIVATE
                           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 period ended September 30, 1999.

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE Act of 1934 for the transition period from ___ to ____.

Commission file number: 000-23319

                          AVANI INTERNATIONAL GROUP INC.
                          ------------------------------
                  (Name of Small Business Issuer in its charter)

 Nevada                                         88-0367866
----------------                                ----------
(State of                                      (I.R.S. Employer
 Incorporation)                                 I.D. Number)

#328-17 Fawcett Road, Coquitlam, B.C. (Canada)         V3K 6V2
----------------------------------------------------------------
(Address of principal executive offices)             (Zip Code)

Issuer's telephone number 604-525-2386.
                          -------------
Securities registered under Section 12 (b) of the Act:

         Title of each class         Name of exchange on which
         to be registered            each class is to be registered

            None                              None


Securities registered under Section 12(g) of the Act:

                             Common Stock
                           ----------------
                           (Title of Class)

Check whether issuer(1)filed all reports to be filed by Section 13 or
15(d) of  the Exchange Act during the past 12 months (or 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.
(1). Yes: X  No:
(2). Yes: X  No:
The number of shares issued and outstanding of issuer's common stock,
$.001 par value, as of June 30, 1999 was 20,233,257.

Transitional Small Business Issuer Format (Check One):
Yes:      No:  X



                                     INDEX

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.                                        Page No.


Consolidated Condensed Balance Sheet as of
September 30, 1999 (unaudited) and
December 31, 1998 (audited).                                             3
Consolidated Condensed Statement of Operations for the Three
Months and Nine Months Ended September 30, 1999 and 1998 (unaudited).    4
Consolidated Condensed Statement of Stockholders Equity
for the Nine Months Ended September 30, 1999 and 1998 (unaudited).       5
Consolidated Condensed Statement of Cash Flows the Nine Months
Ended September 30, 1999 and 1998 (unaudited).                           6
Notes to Financial Statements.                                           7

Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition.                                      9

PART II - OTHER INFORMATION
Item 1. Legal Proceedings.                                               11
Item 2. Change in Securities.                                            11
Item 3. Defaults Upon Senior Securities.                                 11
Item 4. Submission Of Matters To A Vote of Securityholders.              11
Item 5. Other Information.                                               11
Item 6. Exhibits and Reports on Form 8-K.                                11
Signatures                                                               12


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
        --------------------

                 AVANI INTERNATIONAL GROUP INC.
                        AND SUBSIDIARIES
              CONSOLIDATED CONDENSED BALANCE SHEETS



                                             September 30,  December 31,
                                                  1999          1998
                                            --------------  -------------
ASSETS                                       (Unaudited)      (Audited)


CURRENT ASSETS
Cash                                           $1,426,318   $  103,428
Accounts receivable                                97,594       79,397
Goods and services tax receivable                  19,783       44,280
Inventory                                          96,006       33,123
Prepaid expenses                                   22,828       38,650
                                               -----------  -----------

TOTAL CURRENT ASSETS                            1,662,529      298,878
                                               -----------  -----------

PROPERTY, PLANT AND EQUIPMENT - Net             1,637,354    1,647,871
                                               -----------  -----------
OTHER ASSETS
Security deposits                                  10,616       10,217
Trademarks                                         18,674       18,031
                                               -----------  -----------
                                                   29,290       28,248
                                               -----------  -----------

TOTAL ASSETS                                   $3,329,173   $1,974,997
                                               ===========  ===========

LIABILITIES AND STOCKHOLDERS EQUITY

CURRENT LIABILITIES
Current portion of long-term debt              $    7,691   $    6,869
Accounts payable and accruals                     122,362       77,446
Wages and benefits payable                         21,144       14,453
Unearned income                                    29,623       16,127
Bottle and cooler deposits                         99,558       85,901
                                               -----------  -----------
TOTAL CURRENT LIABILITIES                         280,378      200,796

LONG-TERM DEBT - Net of current portion           490,313      408,361
                                               -----------  -----------

TOTAL LIABILITIES                                 770,691      609,157
                                               -----------  -----------

COMMITMENTS AND CONTINGENCIES

     STOCKHOLDERS EQUITY

COMMON STOCK - $.001 par value, 25,000,000
shares authorized; 20,233,257 and 11,608,257
shares issued and outstanding                      20,233       11,608

COMMON STOCK DISCOUNT                             (55,000)     (55,000)

ADDITIONAL PAID-IN CAPITAL                      6,336,804    4,765,432

ACCUMULATED DEFICIT                            (3,556,149)  (3,140,336)

ACCUMULATED OTHER COMPREHENSIVE LOSS             (187,406)    (215,864)
                                              ------------  -----------

TOTAL STOCKHOLDERS EQUITY                       2,558,482    1,365,840

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY      $3,329,173   $1,974,997
                                              ============  ===========


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

                                    Page 3

                    AVANI INTERNATIONAL GROUP INC.
                        AND SUBSIDIARIES
         CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS



                              Three Months Ended              Nine Months Ended
                                 September 30,                  September  30,
                             -------------------------   -----------------------
                                   1999         1998           1999       1998
                               -----------   ----------  ----------- -----------
                               (Unaudited)   (Unaudited) (Unaudited) (Unaudited)

REVENUE
Bottled water and supply
sales                          $   177,127   $  161,144  $   456,745 $  384,168
Cooler and equipment sales           2,228          419        4,339      9,686
Cooler rentals                       3,795        9,718       18,348     29,039
                               ------------  -----------  -----------  ---------
                                   183,150      171,281      479,432    422,893
                               ------------  -----------  -----------  ---------


COST OF GOODS SOLD
Cost of goods sold
(excluding Depreciation)            80,461      102,537      233,386    253,297
Depreciation                        25,083       21,731       68,688     65,551
                               ------------  -----------  -----------  ---------
                                   105,544      124,268      302,074    318,848
                               ------------  -----------  -----------  ---------

GROSS PROFIT                        77,606       47,013      177,358    104,045
                               ------------  -----------  -----------  ---------

OPERATING EXPENSES
General and administrative         234,414      185,454      550,286    670,771
Marketing                            6,495       93,547       32,187    392,644
                               ------------  -----------  -----------  ---------
                                   240,909      279,001      582,473  1,063,415


LOSS FROM OPERATIONS              (163,303)    (231,988)    (405,115)  (959,370)
                               ------------  -----------  -----------  ---------


OTHER INCOME (EXPENSE)
Other                               11,046        1,435       12,492      4,224
Interest income                      1,972        4,294        1,972     13,822
Interest expense                    (5,834)     (10,714)     (25,162)   (30,180)
                               ------------  -----------  -----------  ---------
                                     7,184       (4,985)     (10,698)   (12,134)
                               ------------  -----------  -----------  ---------

NET LOSS                       $  (156,119)  $ (236,973)  $ (415,813) $(971,504)
                               ============  ===========  =========== ==========

BASIC AND DILUTED LOSS PER
   COMMON SHARE                $     (0.01)  $    (0.02)  $    (0.03) $   (0.09)
                               ============  ===========  =========== ==========

WEIGHTED AVERAGE NUMBER
   OF SHARES                    17,670,757    11,604,242   14,212,424 11,255,937
                               ============ ============  =========== ==========


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

                                   Page 4



                         AVANI INTERNATIONAL GROUP INC.
                                AND SUBSIDIARIES
            CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS EQUITY
                      NINE MONTHS ENDED SEPTEMBER 30, 1999
                                   (UNAUDITED)









                                                                    Accumulated
                Common Stock       Common   Additional             Other Compre-
              -------------------- Stock     Paid-In    Accumulated   ehensive
                Shares     Amount  Discount   Capital    Deficit      Loss
              ---------- -------- --------- --------- ------------ -------------

BALANCE,
 DECEMBER 31,
1998 (Audited) 11,608,257 $11,608 $(55,000) $4,765,432 $(3,140,336) $(215,864)

ISSUANCE OF
COMMON STOCK      8,625,000   8,625        -   1,571,375           -          -

NET LOSS                  -       -        -           -    (415,813)         -

OTHER COMPREHENSIVE
INCOME                    -       -        -           -           -     28,458
                ------------ ------- -------- ----------- ----------- ----------

BALANCE,
SEPTEMBER 30,
 1999            20,233,257 $20,233 $(55,000) $6,336,804 $(3,556,149) $(187,406)
                =========== ======= ========= ========== ============ ==========


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

                                  Page 5


                 AVANI INTERNATIONAL GROUP INC.
                        AND SUBSIDIARIES
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
    NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 (UNAUDITED)





                                                    1999      1998
                                              -----------  -----------
                                              (Unaudited)  (Unaudited)

OPERATING ACTIVITIES
Net loss                                      $ (415,813)  $ (971,504)
Adjustments to reconcile net loss to net
cash used in operating activities
Issuance of common stock for professional fees   130,000       10,000
Depreciation                                     101,232       65,551
(Increase) decrease in assets                                       -
Accounts receivable                               11,240      (95,689)
Inventory                                        (59,960)      27,600
Prepaid expenses                                  16,321       15,492
Other assets                                           -       (2,349)
Increase (decrease) in liabilities
Accounts payable                                  47,311      (17,525)
Unearned income and deposits                      21,890       13,057
                                              -----------  -----------

Net cash used in operating activities           (147,779)    (955,367)
                                              -----------  -----------
INVESTING ACTIVITIES
Acquisition of property, plant and equipment     (16,274)     (23,300)
Investment in trademarks and patents
                                                       -      (28,000)
                                              -----------  -----------
Net cash used in investing activities            (16,274)     (51,300)
                                              -----------  -----------
FINANCING ACTIVITIES
Proceeds from mortgages payable                   61,415            -
Payments of mortgages payable                          -      (65,088)
Issuance of common shares, net of
offering costs                                 1,450,000    1,616,670
Purchase of common shares                              -     (400,000)
                                              -----------  -----------

Net cash provided by  financing activities     1,511,415    1,151,582
                                              -----------  -----------

EFFECT OF EXCHANGE RATES ON CASH                 (24,472)     (23,115)
                                              -----------  -----------

NET INCREASE  IN CASH                          1,322,890      121,800

CASH - BEGINNING OF PERIOD                       103,428      120,492
                                              -----------  -----------
CASH - END OF PERIOD                          $1,426,318   $  242,292
                                              ===========  ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for:
Interest                                       $  25,162   $   30,180
                                               ==========  ===========

Income taxes                                   $       -   $        -
                                               ==========  ===========

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

                              Page 6









                 AVANI INTERNATIONAL GROUP INC.
                        AND SUBSIDIARIES
      NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                   SEPTEMBER 30, 1999 AND 1998


NOTE 1 - INTERIM PERIODS

The unaudited information has been prepared on the same basis  as
the  annual  financial  statements and, in  the  opinion  of  the
Company's   management,  reflects  normal  recurring  adjustments
necessary  for  a  fair presentation of the information  for  the
periods presented.

Certain  information and footnote disclosures, normally  included
in  financial  statements prepared in accordance  with  generally
accepted   accounting  principles,  have  been  omitted.    These
financial  statements  should be read  in  conjunction  with  the
financial  statements and notes thereto included in the Company's
Form 10-KSB for the year ended December 31, 1998.

The  results  of  operations for the three month and  nine  month
periods  ended  September 30, 1999 and 1998 are  not  necessarily
indicative of operating results for the full year.


NOTE 2 - BASIS OF PRESENTATION

The  consolidated  condensed  financial  statements  include  the
accounts  of Avani International Group, Inc. (the 'Company')  and
its   subsidiaries.   All  material  intercompany  balances   and
intercompany transactions have been eliminated.


NOTE 3 - COMPREHENSIVE INCOME

The  Company adopted Statement of Financial Accounting  Standards
No.  130,  Comprehensive Income for the first quarter  of  fiscal
year  1998.   Comprehensive income is a more inclusive  financial
reporting   methodology  that  includes  disclosure  of   certain
financial  information that historically has not been  recognized
in  the  calculation of net income.  Comprehensive income (loss),
representing  foreign currency translation  adjustments  for  the
nine  months  ended September 30, 1999 and 1998 was  $28,458  and
$98,638.


NOTE 4 - COMMON STOCK

In  May 1999, the Company raised $700,000 from a private offering
through  the  issuance of 3,500,000 shares of common  stock.   In
connection with this offering, 3,500,000 warrants were issued  to
purchase common shares at  an exercise price per share of $.20 on
or  before July 1, 2000, $.25 on or before July 1, 2001  and $.30
on or before July 1, 2002.

                               Page  7

In  August  1999,  the Company completed a private  offering  and
received  $750,000  through the issuance of 3,750,000  shares  of
common  stock.    In  connection with  this  offering,  3,750,000
warrants  were  issued  to  purchase common shares at an exercise
price per share of $0.20 on or before August 12, 2000, $0.25 on or
before August 12, 2001, and $0.30 on or before August  12, 2002.

Also  in connection with these two offerings, the Company entered
into  finder's fee agreements, which provide that 725,000  shares
of  common stock will be issued at a price of $.20 per share.  In
addition the agreements provide for 725,000 warrants to be issued
to  purchase  common  shares  with  a  term of three years, at an
exercise price per share of $.20 within one year following receipt
of the funding, $.25  between one and two years following receipt
of the funding  and $.30 after two years following receipt of the
funding.

The  Company  also  issued 650,000 shares  of  common  stock  for
consulting fees at a price of $.20 per share.

NOTE 5 - MAJOR CUSTOMER AND SUPPLIER

In  each  period  the Company sold a substantial  portion  of  its
products  to  foreign  markets.   During  the  nine  months  ended
September  30,  1999,  sales to an Australian customer  aggregated
$57,100,  sales to two Japanese customers aggregated  $50,377  and
sales to a Malaysian customer aggregated $22,680.  During the nine
months  ended  September  30, 1998,  sales  to  a  major  customer
aggregated  $89,294.  At September 30, 1999 and 1997  amounts  due
from these customers included in trade accounts receivable were $0
and $62,446.

During  the  nine months ended September 30, 1999  and  1998,  the
Company purchased approximately 47% and 49% of its materials  from
one supplier.  At September 30, 1999 and 1998, amounts due to that
supplier  were  $18,000  and  $0.  If the  supplier  ceased  doing
business with the Company, management believes that other  sources
of materials are available.

                            Page  8

















Item 2. Management's Discussion and Analysis.
        -------------------------------------
The following  discusses  the  financial  results  and position of the
consolidated accounts of the Company and its wholly owned subsidiaries
for the periods indicated.

Results of Operations

Revenues for the three and nine months periods ended September 30, 1999
were  $183,150  and  $479,432  respectively, compared with revenues  of
$171,281  and  $422,893 for  the same periods in  1998. The increase of
13.37% for the nine month period in 1999 was due to initiation of sales
to Australian, Japanese and Malaysian distributors, and an increase  in
local  sales  of  its five gallon bottles. Revenues for the  nine month
period  in  1999 consisted  of $456,745  in  water and supply sales (an
increase of 18.89% from $384,168 for the prior period), $4,339 in cooler
and  equipment sales (a  decrease of  55.20% from $9,686  for the prior
period) and $18,348 in cooler rentals (a decrease of 36.82% from $29,039
for the prior period).  Of  the total revenue for the nine month period
in 1999, $57,100  (or 12.50% of total water sales) represented sales to
an Australian  distributor, $50,377  (or  11.03% of  total  water sales)
represented sales to  a Japanese distributor, and $22,680 (or 5.00% of
total  water  sales) represented  sales  to  a  Malaysian distributor.
Interest income earned on investment of cash totaled $1,972 for the nine
month period in  1999  compared with $13,822 for  the prior period. The
decrease is a result  of the reduction of available cash for the period
prior to the recent private placements by the Company.

Cost  of  sales  for  the  three and  nine  month period in 1999 totaled
$105,544 and $302,074, respectively, compared with $124,268 and $318,848
for the  same  periods  in 1998. Cost of  goods  sold for the nine month
periods  as  a  percentage of  sales decreased by  12.39% from 75.40% to
63.01% due principally to a  reduction  of  sample promotions.  Cost  of
sales for the nine month period in 1999 consisted of $233,386 in bottled
water, supplies, coolers and related equipment (a decrease of 7.86% from
$253,297  for the prior period) and $68,688 in depreciation (an increase
of 4.79% from $65,551 for the prior period). Gross profit for  the three
and nine month periods  in  1999 was $77,606 and $177,358, respectively,
compared with $47,013 and $104,045 for the  prior periods.  The increase
for the  three month and  nine month periods  in  1999  was  due to  the
increase in  water sales,  partially  offset by the reduction  in cooler
rentals and sales, together with improved operating efficiencies.

General  and  administrative  expenses  which  includes administrative
salaries and overhead for the nine month period  totaled $550,286 which
represents a decrease of 17.96% from $670,771 for the prior period. This
decrease  is  due  principally to cost reduction measures implemented by
the  Company in  late  1998 and early  1999. Marketing  expenses totaled
$32,187  for the nine  month period in  1999 representing  a decrease of
91.80%  from  $392,644 for the prior period. The  decrease  in marketing



                                   Page  9



expenses  is  due  principally  to  the  reduction  of advertising  and
promotional  costs,  including one time costs  related to  the Company's
sponsorship  of  the  Los  Angeles  Marathon and the Vancouver Marathon.
Interest expense  in  connection  with the Company's real estate totaled
$25,162 for the nine month period in 1999 representing a 16.63% decrease
from $30,180 for the prior period. Net loss for the three and nine month
periods in 1999  were $156,119 and $415,813, respectively, compared with
$236,973 and $971,504 for the prior periods.

                             Year 2000 Compliance

Year 2000 compliance is the ability of computer hardware and software to
respond  to  problems   posed  by   the  fact   that  computer programs
traditionally have used two digits rather than four digits  to define an
applicable year. As a consequence, any of computer programs or equipment
using internal programs may recognize a date using "00" as the year 1900
rather  than  the year 2000. This  could  result in  a system failure or
miscalculations causing interruptions of operations, including temporary
inability to send invoices or engage in normal business activities or to
operate  equipment  such as  telephone  systems, facsimile machines and
production machinery.

To date, the Company has reviewed its financial  accounting software and
system and has determined it is fully  Year 2000 compliant.  The Company
has  been  informed  by  its  suppliers  of  major  pieces of office and
manufacturing equipment that such equipment is also Year 2000 compliant.
The Company  has initiated  a review of its relationships with suppliers
and  vendors to  determine if  there will  be an impact to the Company's
operations due to a Year 2000 issue. Although the Company does rely on a
sole source vendor, most  other  items  can be obtained from alternative
sources  if a preferred supplier or vendor  is  not  able  to meet  the
Company's  needs. Because this  review is not yet completed, the Company
has not established a contingency  plan for any  vendors that may not be
Year 2000 compliant. The  Company anticipates  that using  a contingency
plan will require using alternate vendors which may not be operationally
efficient. The supplier and vendor review is anticipated to be completed
by the  second half of 1999. Costs to date and future costs of Year 2000
compliance are not significant or anticipated to be significant.

Liquidity and Capital Resources

Since its inception, the Company has financed its operations principally
Through  the  private  placement of  its  common  stock, and to a lesser
extent,  through  cash  flow  from  operations. During 1998, the Company
raised approximately $1,600,000 net of  offering  costs from the private
placement  of  its  common  stock. In  addition  during  the period, the
Company  repurchased  400,000 shares of common stock at $1.00 per share.
During 1999, the Company received  $1,450,000 from the private placement
of its common stock.

As of September 30, 1999, the Company  has working capital in the amount
of $1,382,151. The Company continues to  experience  significant losses
from  operations. During  the  last  month of 1998 and continuing to the


                                 Page  10


first  quarter  of  1999,  the  Company has  undertaken  cost reduction
measures in an effort to reduce operating losses. These measures include
personnel reductions and the elimination of certain promotional charges.
However, despite these  measures, the Company is uncertain as to when it
will achieve profitable operations.

Property, plant and  equipment, net of accumulated depreciation, totaled
$1,637,354 on September 30, 1999.  Property, plant and equipment, net of
accumulated depreciation, totaled $1,647,871 on December 31, 1998.

Forward Looking Statements. Certain of  the statements contained in this
Quarterly Report on Form 10-QSB includes  "forward  looking statements"
Within  the  meaning  of Section 21E of the Securities Exchange Act  of
1934, as amended ("Exchange Act"). See  the  Company's  Annual Report on
Form 10-KSB for additional statements concerning operations  and future
capital requirements.


                                   Part II OTHER INFORMATION

Item 1. Legal Proceedings.
        ------------------
None


Item 2. Changes in Securities.
        ----------------------
None

Item 3. Defaults Upon Senior Securities.
        --------------------------------
None

Item 4. Submission Of Matters To A Vote Of Securityholders.
        ---------------------------------------------------
None

Item 5. Other Information.
        ------------------
None

Item 6. Exhibits and Reports.
        ---------------------
(a) Exhibits.

Exhibit 27.1 - Financial Data Schedule

(b) Reports on Form 8-K.

On September 23, 1999, the Company filed a Form 8-K to report events
under Item 1 therein.

On September 30, 1999, the Company filed a Form 8-K to report events
under Item 1 therein.

                                      Page  11



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                            AVANI INTERNATIONAL GROUP, INC.

Date: November 12, 1999     /s/Dennis Robinson
                            -----------------------
                             Dennis Robinson
                             Treasurer and
                             Chief Accounting Officer






                                 SCHEDULE 27.1
                            FINANCIAL DATA SCHEDULE


ART.5 FDS FOR 3rd QUARTER 10-Q

Multiplier  1,000


PERIOD TYPE                                   9 MONTHS
FISCAL YEAR END                               DEC-31-1999
PERIOD END                                    SEPT-30-1999
CASH                                          1,426
SECURITIES                                    0
RECEIVABLES                                   98
ALLOWANCES                                    0
INVENTORY                                     96
CURRENT-ASSETS                                1,663
PP&E                                          2,074
DEPRECIATION                                  437
TOTAL ASSETS                                  3,329
CURRENT-LIABILITIES                           280
BONDS                                         0
COMMON                                        20
PREFERRED-MANDATORY                           0
PREFERRED                                     0
OTHER-SE                                      2,538
TOTAL-LIABILITIES-AND-EQUITY                  3,329
SALES                                         479
TOTAL-REVENUES                                479
CGS                                           302
TOTAL-COST                                    884
OTHER-EXPENSES                                (14)
LOSS-PROVISION                                0
INTEREST-EXPENSE                              25
INCOME-PRETAX                                 (416)
INCOME-TAX                                    0
INCOME-CONTINUING                             (416)
DISCONTINUED                                  0
EXTRAORDINARY                                 0
CHANGES                                       0
NET-INCOME                                    (416)
EPS-PRIMARY                                   (.03)
EPS-DILUTED                                   (.03)


                                   Page  12