===========================================================
            SECURITIES AND EXCHANGE COMMISSION
                 Washington, D.C. 20549

                _________________________

                       FORM 10-QSB
                _________________________

      Quarterly Report Pursuant to Section 13 or 15 (d) of
              the Securities Exchange Act of 1934

           For the Quarter Ended  September 30, 1996

                 Commission File Number 0-21522

              WILLAMETTE VALLEY VINEYARDS, INC.

     (Exact name of registrant as specified in charter)

       Oregon                                 93-0981021
(State or other jurisdiction of           (I.R.S. Employer
incorporation or organization)       Identification Number)


                _______________________________


                  8800 Enchanted Way,  S.E.,
                     Turner, Oregon 97392
                       (503)-588-9463

      (Address, including Zip code, and telephone number,
   including area code, of registrant's principal executive
   offices)

                ________________________________

Indicate by check mark whether the registrant (1) has filed 
all reports required to be filed by Section 13 or 15(d) of 
the Securities Exchange Act of 1934 during the preceding 12 
months (or for such shorter period that the registrant was 
required to file such reports) and (2) has been subject to 
such filing requirements for the past 90 days.
[X] YES       [  ] NO

Number of shares of common stock outstanding as of
September 30, 1996
3,785,356 shares, no par value
===========================================================

            WILLAMETTE VALLEY VINEYARDS, INC.
                       Balance Sheet



                    September 30,
                        1996                   December 31,
ASSETS              (unaudited)                    1995
                    _____________              ____________
Current assets:
   Cash and cash
    equivalents     $       1,066              $    599,895
   Accounts receivable
    trade, net            317,617                   132,072
   Other receivable        28,122                    18,727
   Inventories          1,985,614                 1,890,048
   Prepaid and other
    current expenses       86,478                    64,211
   Deferred income taxes   93,872                    93,872
                    _____________              ____________

   Total current
    assets              2,512,769                 2,798,825

Vineyard development 
 cost, net                379,941                   372,676
Property and equipment,
 net                    5,079,349                 4,849,747
Investments               124,173                   153,893
Notes receivable          136,120                   129,002
Debt issuance costs, net   34,869                    36,416
                    _____________              ____________

Total assets        $   8,267,221              $  8,340,559
                    =============              ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
   Accounts payable $     296,270              $    135,969
   Accrued commissions
    and payroll cost       70,202                    94,816
   Other accrued
    liabilities            24,986                    14,756
   Grape payable                -                   344,642
   Line of credit         202,041                   161,300
   Current portion of
    long term debt         66,493                    66,493
                    _____________              ____________
   Total current
    liabilities           659,992                   817,976

Long-term debt          1,957,894                 2,007,870
Deferred income taxes      56,938                    56,938
                    _____________              ____________

Total liabilities       2,674,824                 2,882,784
                    _____________              ____________

Shareholders' equity:
   Common stock, no par value - 10,000,000
    shares authorized, 3,785,356 shares issued
    outstanding         5,369,868                 5,369,868

Retained earnings         222,529                    87,907
                    _____________              ____________
Total shareholders'
 equity                 5,592,397                 5,457,775
                    _____________              ____________
Total liabilities and
 shareholders'
 equity             $   8,267,221             $   8,340,559
                    =============             =============


     The accompanying notes are an integral part of this
     financial statement.


            WILLAMETTE VALLEY VINEYARDS, INC.
                  Statement of Income
                      (Unaudited)


            Three Months Ended
              September 30,           Nine Months Ended
                                        September 30,
                 1996       1995        1996        1995
               __________  _________  __________  __________
Revenues:
 Total
  Revenue     $1,152,093  $ 951,213  $2,826,870  $2,280,670

Cost of Sales:
 Winery
  operations     483,098    472,143   1,204,199   1,084,370
               __________  _________  __________  __________

Gross Margin     668,995    479,070   1,622,671   1,196,300
               __________  _________  __________  __________
Selling, general and
 administrative
 expenses        515,955    400,927   1,346,459   1,152,052
               __________  _________  __________  __________

Other income (expense)
 Interest income   2,747      3,368      11,798      14,730
 Interest
 expense         (51,262)   (45,285)   (147,403)    (97,147)
 Other income     20,030      2,408      21,727       2,408
               __________  _________  __________  __________

                 (28,485)   (39,509)   (113,878)    (80,009)
               __________  _________  __________  __________

Net income (loss) before
income taxes     124,555     38,634     162,334     (35,761)

Income tax       (27,712)         -     (27,712)      9,000
              __________  _________  __________  __________
Net income
 (loss)           96,843     38,634     134,622     (26,761)

Retained earnings
 (accumulated deficit),
 beginning of
 period          125,686     16,188      87,907      81,583
              __________  _________  __________  __________

Retained earnings
 (accumulated deficit),
 end of
 period         $222,529    $54,822    $222,529     $54,822
               =========  =========  ==========  ==========

Net income (loss) per
 common share   $   0.03    $  0.01    $   0.04     $ (0.01)
               =========  =========  ==========  ===========

Weighted average
 number of
 common shares
 outstanding   3,785,356  3,785,356   3,785,356   3,785,356
               =========  =========  ==========  ==========

    The accompanying notes are an integral part of this
    financial statement.

            WILLAMETTE VALLEY VINEYARDS, INC.
                 Statement of Cash Flows
                        (unaudited)
                            Nine Months Ended September 30,
                            _______________________________
                               1996                1995
                             __________           __________
Cash flows from operating 
 activities:
 Net income (loss)         $  134,622           $   (26,761)
 Reconciliation of net
  income (loss)
  to net cash used for
  operating activities:
  Depreciation and
   amortization               265,856               173,548

  Changes in assets and
   liabilities:
   Accounts receivable
    trade                    (185,545)              (35,199)
   Accounts receivable
    affiliated co                   -               (69,978)
   Other receivable            (9,395)              (13,726)
   Inventories                (95,566)                2,180
   Prepaid  and other
    expenses                  (24,993)              (20,201)
   Grape payable             (344,642)             (198,203)
   Accounts payable           160,301               162,728
   Accrued commissions and
    payroll cost              (24,614)                    -
   Taxes payable               27,712               (39,597)
   Deferred taxes                   -               (70,440)
   Accrued liabilities        (14,756)              (10,319)
                             __________           __________

 Net cash used by 
  operating activities       (111,020)             (145,968)
                             __________           __________

Cash Flow from investing activities
 Construction expenditures and
  purchases of equipment     (485,656)             (910,658)
 Vineyard development
  expenditures                (17,067)                 (435)
 Change in investments         29,720                (8,880)
 Change in notes receivable    (7,118)                8,792
                             __________           __________
 
 Net cash used by investing
  activities                 (480,121)             (911,181)
                             __________           __________

Cash Flows from financing activities:
 Line of credit borrowings     40,741               184,376
 Capitalized loan fee           1,547               (13,122)
 Mortgage loan funds          (49,976)              681,370
                             __________           __________

Net cash provided by 
 financing activities          (7,688)              852,624
                             __________           __________

Net decrease in cash
 and cash equivalents        (598,829)             (204,525)

Cash and cash equivalents:
 Beginning of period          599,895               448,800
                             __________           __________

 End of period              $   1,066            $  244,275
                            ===========          ===========


    The accompanying notes are an integral part of this
    financial statement.



            WILLAMETTE VALLEY VINEYARDS, INC.
              NOTES TO FINANCIAL STATEMENTS


1)  BASIS OF PRESENTATION

The interim financial statements have been prepared by the 
Company, without audit and subject to year-end adjustment, 
in accordance with generally accepted accounting principles, 
except that certain information and footnote disclosure made 
in the latest annual report have been condensed or omitted 
for the interim statements. Certain costs are estimated for 
the full year and are allocated to interim periods based on 
estimates of operating time expired, benefit received, or 
activity associated with the interim period. The financial 
statements reflect all adjustments which are, in the opinion 
of management, necessary for fair presentation. The financial
should be read in conjunction with the audited financial 
statements and notes thereto included in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1995 
filed with the Securities and Exchange Commission on 
March 30, 1996. The results of operations for an interim 
period are not necessarily indicative of the results of 
operations for a full year.

Effective July 1, 1994, Willamette Valley, Inc. 
Microbreweries Across America ("WVI"), an affiliated 
company, formed an administrative, accounting and stock 
transfer department to provide services to its subsidiaries 
and to any affiliated companies that elected to contract 
such services.  Beginning July 1, 1994 until December 3, 
1995, the Company contracted to purchase certain 
administrative, accounting, and stock transfer services from 
WVI rather than provide those services internally. On 
December 3, 1995, the Company added personnel to replace the 
services which, prior to this date, were provided by WVI. 


2)  Inventories by major classifications are summarized as 
follows:

                           September 30,        December 31,
                              1996                  1995
                           _____________        ____________

Winemaking and packaging
 materials                 $     39,646         $     71,725
Work-in-progress (costs relating
  to unprocessed and/or
  unbottled wine products)      110,799              942,189

Finished goods (bottled wines 
  and related products)       1,835,169              876,134

                           $  1,985,614         $  1,890,048
                           ============         ============

3)  Property and Equipment consist of the following:

                           September 30,        December 31,
                               1996                 1995
                           _____________        ____________

Land and improvements      $    562,217         $    562,217
Winery building               1,314,133            1,300,410
Equipment                     2,314,579            1,860,498
Hospitality Center            2,250,088            2,232,236
                           _____________        ____________

                           $  6,441,017         $  5,955,361

Less accumulated
 depreciation                (1,361,668)          (1,105,614)
                           _____________        _____________

                           $  5,079,349         $  4,849,747
                           ============         ============









Management's Discussion and Analysis of
Financial Condition and Results of Operations



RESULTS OF OPERATIONS

Revenue
The Company's revenues from winery operations are summarized 
as follows:

              Three Months Ended           Nine Months Ended
                 September 30,                September 30,
               1996        1995             1996        1995
             ________   ________         ________   ________

Tasting room
 and hospitality
 sales       $ 250,706  $213,719         $615,001   $507,129
On-site and
 off-site
 festivals     127,713   187,747          320,240    359,147
In-state sales 415,118   319,881        1,125,087    822,349
Out-of-state
 sales         358,556   229,866          766,542    592,045
            __________  ________        _________   ________

Total
 Revenue    $1,152,093  $951,213       $2,826,870 $2,280,670
            ==========  =========      ========== ==========

Tasting Room and Hospitality sales for the three months 
ending September 30, 1996 increased 17% over the same 
period in 1995.  For the first nine months of 1996, these 
sales have increased 21% over the same period in 1995.  
Hospitality rental income alone has grown $24,047 in 1996, 
versus same period in 1995.  These rental revenue increases 
are the result of continuing facility promotion through 
businesses, agencies, civic groups, caterers, industry 
groups and visitor associations. The increase in rental use 
has also contributed to growth of foot traffic in the 
Tasting Room.  Many rental visitors introduced to the 
winery and facilities at special events later return, with 
friends and family, to the Tasting Room to purchase wines 
and other merchandise. 

In the third quarter, the Company experienced turnover of 
two key retail division positions.  The existing employees 
chose to take new positions in related industry companies.  
The first replacement hire was a new Retail Manager.  Eddie 
Valente, formerly Food & Beverage Director of Salishan 
Lodge, accepted our offer to lead the retail division.  Mr. 
Valente was also Cellarmaster for Salishan which boasts one 
of the country's largest wine cellars.  He brings much need 
wine expertise, as well as strong management skills to this 
leadership position.  The second hire was a new Tasting 
Room Supervisor.  Sheila Haegerty took this important 
position.  Ms. Haegerty has extensive experience in retail 
sales and restaurant management.  

On-site and off-site festival sales for the third quarter 
decreased 32% as compared to the same period in 1995.  For 
the first nine months of 1996, sales in this category 
decreased 11% versus 1995.  The major decrease in this quarter 
was directly attributable to the elimination of our Oregon 
State Fair retail booth.  The Company decided to eliminate 
this effort because it was unprofitable.  Overall, the 
Company has decided to eliminate many off-site and 
restructure some on-site festivals to improve 
profitability.  This sales arena contributed significantly 
to gross revenues, but many of the festivals did not break-
even.  Thus far, the Company has been able to replace these 
lost revenues with even greater sales increases in other 
divisions with lower operating costs.  The net result has 
contributed to improved Company profitability.  

Sales within Oregon, through the Company's self-
distribution sales force, increased 30% in the third 
quarter versus 1995. For the first nine months of 1996, self-
distribution sales have increased 37% over the same period 
in 1995.  The Wholesale Sales Manager, Bruce Eskenazi, 
cited several new placements of the Company's wines as the 
main reasons for improved sales.  These new placements 
include several Indian gaming restaurants, Oregon 
destination attractions and medium-sized chain restaurant 
chains.  In addition, the Company has garnered significant 
new shelf space in several large grocery chains and 
wholesale warehouse chains. Since becoming Oregon's largest 
selling winery, the Company has been able to secure more 
and better-positioned shelf space in virtually every retail 
package outlet. 

Out-of-state sales in the third quarter of 1996 increased 
56% over the same period in 1995.  Through the first nine 
months, these sales increased 29% versus 1995.  The Company 
now sells wine in 28 states, the District of Columbia and 
six foreign countries.  The Company continues to receive 
strong third-party endorsements via competitions and wine 
periodicals.  This along with enhanced point-of-sale 
materials and on-going promotional efforts has contributed 
to growing demand for the Company's wines.  In the third 
quarter the winery obtained a license to ship into 
Connecticut for the first time.  Opening sales to that 
market totaled $134,000.  

At present, the Company has all products on allocation in 
all markets.  The Company is quite confident that demand is 
not yet being met in existing markets. Thus there is not 
only growth to be realized by opening new markets, but also 
in meeting demand in existing markets. The Company 
continues to pursue a strategy of global distribution for 
its products. Demand for American wine globally continues 
to grow.  Presently, the Company is negotiating for 
representation in southeast Asia beginning in 1997.  

Pinot Noir, which now constitutes about one-third of the 
Company's production, is among the fastest growing wine 
varietals.  According to InfoScan reports, Pinot Noir sales 
in American retail stores have grown 47% over the past 52 
weeks. In comparison, Chardonnay sales (the number one 
varietal wine) grew about 19% in the same time period. New 
consumers are coming into the wine category.  Positive 
press regarding the healthful use of wine continues to 
stimulate demand.  The Company expects demand for its wines 
to remain strong for the foreseeable future.  

Gross Profit
As a percentage of revenue, gross profit from winery 
operations increased to 58% in the third quarter of 1996, 
as compared to 50% in the same quarter of 1995.  For the 
first nine months of 1996, gross profit from winery 
operations increased to 57% from 52% in 1995.  The Company 
has initiated an aggressive program to help control costs 
through monthly management meetings designed to monitor 
actual expenditures against each division manager's 
operating budget.  Through better manager education and 
quick analysis of actual results, the Company has been able 
to better control cost of goods. In 1996, the Company has 
successfully increased prices in all sales venues.  This 
resulted in an increase in the gross margin percentage over 
the same period in 1995.  

Selling, General and Administrative Expense
Selling, general and administrative expenses increased 29% 
to $515,955 in the third quarter of 1996 from $400,927 in 
the third quarter of 1995. Selling, general and 
administrative expenses for the first nine months of 1996 
increased 17% to $1,346,459 from $1,152,052 over the same 
period in 1995. As a percentage of revenue from winery 
operations,  selling, general and administrative expenses 
increased to 45% in the third quarter of 1996 from 42% in 
the third quarter of 1995.  Yet for the first nine months of 
1996, these costs as a percentage of revenue decreased to 
48% in 1996 from 50% in 1995. The Company has started an 
aggressive, expense control program teaching each department 
manager how to effectively work within a tight budget. The 
Controller meets with each department manager after each 
month-end to review in detail all monthly expenditures and 
compare the actual costs versus the budgeted costs. After 
which, each department manager develops a program to bring 
any budget variance under control. This effort is already 
yielding positive results as demonstrated by the reduction 
in selling, general, and  administration expenses as a 
percentage of revenue in the first nine months of 1996. The 
staff changes in late 1995 in which the Company took over 
control from WVI of all administrative functions has greatly 
stabilized the staff and has reduced costs at the same time.

During the third quarter of 1996 part of the increase in 
expenses was due to the increased sales volume. Commissions 
paid to the independent sales force increased about $28,000 
over the same period in 1995. Since commissions are based on 
a percentage of revenue there is no adverse affect in the 
income ratio.

Another significant expense increase was in the Retail 
Department for increased labor to staff the new Hospitality 
Center. This expense is partially offset by the increase in 
revenues generated from making the winery a major center for 
tourism, conventions, weddings and other meetings.  In 
particular, for the third quarter of 1996, the Company's 
revenue from rental of its new Hospitality Center increased 
to $47,865 from $22,834 for the same period in 1995. This 
increase in revenues necessitated the hiring of more part-
time staff to supervise events held at the winery after 
normal business hours, as well as additional supplies and 
equipment to operate at higher levels. 

Other Income and Expense
Interest income decreased to $2,747 for the third quarter of 
1996 from $3,368 for the third quarter of 1995.  For the 
first nine months of 1996, the interest income decreased  to 
$11,798 from $14,730 in 1995.   

Interest expense has increased to $51,262 in the third 
quarter of 1996 from $45,285 in 1995 due to the funds 
borrowed to complete the Hospitality Center. For the first 
nine months of 1996, interest expense has increased to 
$147,403 from $97,147 in 1995. This large increase was due to the 
fact that for the first few months of 1995 part of expense 
was capitalized with the construction of the new Hospitality 
Center.

Income Taxes
The Company generated net operating income at September 30, 1996 
of $162,334. The Company anticipates income tax expense to 
be $27,712.                    

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 1996, the Company had a working capital 
balance of $1.9 million and a current ratio of 4:1.  At 
December 31, 1995, the Company had a working capital balance 
of $2.0 million and a current ratio of 3:1.  The increase in 
the current ratio is primarily due to the final payment in 
the first half of 1996 for grapes purchased in the prior 
year. Also, as part of the increased crush for 1996, the 
Company has spent funds to purchase additional wine barrels 
and other equipment. 
 
The  Company  obtained a line of credit of $500,000 from 
Farm Credit Services during 1995 which will expire in March 
of 1997.  At September 30 1996, outstanding borrowings 
against the line of credit totaled $202,041. Since the 
Company intends to increase the quantity of grapes purchased 
at crush for the next several years, it has requested from 
Farm Credit Services to increase its line of credit to 
$1,000,000 to fund this increase in inventory. As of 
November 7, 1996, Farm Credit Services has agreed to the new 
credit limit.

The Company has completed the new Hospitality Center located 
at the Winery and financed an increase in   production 
capacity in 1995. This Debt of nearly two million dollars 
from Farm Credit Service will be repaid over a term of 
twenty years. With the new Hospitality Center, the Company 
projects to increase rental activity in the next few years 
to between $150,000 and $250,000 annually. The production 
expansion allowed the Company  to increase its capacity from 
49,000 cases of wine in 1994 to 65,000 cases in 1995.

In the third quarter of 1996, the Company revamped its 
production facility to enable it to process about 1,300 tons 
of grapes as compared to 890 tons harvested in 1995. This 
increased the capacity to in excess of 90,000 cases per 
year. It added one large press, six stainless steel 
fermentors, and several pieces of equipment to more 
efficiently process grapes at harvest. Also, in the spring 
of 1997, the Company will construct a 20,000 sq. ft. 
building to house the bottling line and store all of its 
case goods which are currently being stored off-site. To 
finance this new construction, the company has the approval 
from Farm Credit Service to increase its long term note by 
$1,200,000. The funds will be released in the fourth quarter 
of 1996.

At September 30, 1996, the Company has entered into grape 
contracts for the 1996 fall production crop which amounts to 
approximately $1,000,000. About 50% of these  will be due to 
the growers on December 1, 1996. The Company intends to pay 
the growers from funds borrowed from its line of credit and 
retained earnings. The remaining 50% are due in the first 
part of 1997.                

SUBSEQUENT EVENTS

On July 22, 1996, the company hired Joe Dobbes, Jr. as our 
full-time winemaker. He had been operating on a part time 
basis as a consulting winemaker since last fall. Mr. Dobbes 
is one of Oregon's most accomplished  winemakers. His wines 
have received numerous gold medals in some of the most 
prestigious wine competitions. Just recently, his Sparkling 
Muscat was served at a White House dinner. For the past five 
years, he served as winemaker for Hinman Vineyards/Silvan 
Ridge. Prior to that he was with Eola Hills Winery for two 
years and Elk Cove Vineyards for two years. Joe developed 
his winemaking skills by working in several fine wineries in 
Burgundy, France, Domaine George Roumier in Chambolle-
Musigny and Domaine des Comtes Lafon in Meursault. He began 
his career in 1985 at Weingut Erbhof Tesch Winery in 
Germany.







            WILLAMETTE VALLEY VINEYARDS, INC.

               PART II.  OTHER INFORMATION


Item 6.    Exhibits and Reports on Form 8-K.

           (a)   Exhibits:  None.

           (b)   No reports were filed on Form 8-K during
                 the quarter for which this report is filed.





                          SIGNATURES


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


WILLAMETTE VALLEY VINEYARDS, INC.




Date:_________________________________By /s/ Kevin Chambers
                                         Kevin Chambers
                                         General Manager






                          SIGNATURES


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


WILLAMETTE VALLEY VINEYARDS, INC.





Date:_______________________ By: /S/ Kevin Chambers
                                 Kevin Chambers
                                 General Manager