UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549  FORM 10-Q   XQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2011oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM     TO  COMMISSION FILE NUMBER: 0-18431   Inland Land Appreciation Fund, L.P. (Exact name of registrant as specified in its charter)   Delaware36-3544798(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)    2901 Butterfield Road, Oak Brook, IL  60523 (Address of principal executive offices)(Zip Code)  630-218-8000 (Registrants telephone number, including area code) ___________________________________________  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X     No  o  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o        No o  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.  Large accelerated filer  oAccelerated filer  oNon-accelerated filer o  (Do not check if a smaller reporting company)Smaller reporting company X  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o     No  X     -1-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Balance Sheets  March 31, 2011 and December 31, 2010 (unaudited)  Assets   20112010Current assets:Cash and cash equivalents (Note 1)$1,978,0401,912,181Total current assets1,978,0401,912,181Investment properties, at cost (including acquisition fees paid to affiliates of   $459,426 at March 31, 2011 and December 31, 2010) (Note 3):Land and improvements13,229,96713,228,867Total assets$15,208,00715,141,048                            See accompanying notes to financial statements. -2-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Balance Sheets (continued)  March 31, 2011 and December 31, 2010 (unaudited)  Liabilities and Partners' Capital  20112010Current liabilities:Accounts payable$12,18010,000Accrued real estate taxes16,20112,870Due to affiliates (Note 2)14,5795,756Unearned income54,820-Total current liabilities97,78028,626Partners' capital:General Partner:Capital contribution500500Cumulative net income4,760,6694,760,691Cumulative cash distributions(4,745,451)(4,745,451)15,71815,740Limited Partners:Units of $1,000. Authorized 30,001 Units, 29,593 Units outstanding at       March 31, 2011 and December 31, 2010, (net of offering costs of       $3,768,113, of which $1,069,764 was paid to affiliates)25,873,40325,873,403Cumulative net income27,895,59927,897,772Cumulative cash distributions(38,674,493)(38,674,493)15,094,50915,096,682Total Partners' capital15,110,22715,112,422Total liabilities and Partners' capital$15,208,00715,141,048        See accompanying notes to financial statements. -3-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Statements of Operations  For the three months ended March 31, 2011 and 2010 (unaudited)   20112010Revenues:Rental income (Note 4)$53,11451,581Total revenues53,11451,581Expenses:Professional services to affiliates11,42713,103Professional services to non-affiliates33,73529,135General and administrative expenses to affiliates4,4432,559General and administrative expenses to non-affiliates9,0639,860Marketing expenses to affiliates3652,385Land operating expenses to non-affiliates3,5813,053Total expenses62,61460,095Operating loss(9,500)(8,514)Interest income5,2555,286Other income2,0501,750Net loss$(2,195)(1,478)Net loss allocated to:General Partner$(22)(15)Limited Partners(2,173)(1,463)Net loss$(2,195)(1,478)Net loss allocated to the one General Partner Unit$(22)(15)Net loss per Unit allocated to Limited Partners per
weighted average Limited Partnership Units (29,593
for the three months ended March 31, 2011 and 2010)$(.07)(.05)    See accompanying notes to financial statements. -4-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Statements of Cash Flows  For the three months ended March 31, 2011 and 2010 (unaudited)  20112010Cash flows from operating activities:Net loss$(2,195)(1,478)Adjustments to reconcile net loss to net cash provided by     operating activities:Changes in assets and liabilities:Accounts payable2,180(6,702)Accrued real estate taxes3,3312,952Due to affiliates8,823549Unearned income54,82052,146Net cash provided by operating activities66,95947,467Cash flows from investing activities:Additions to investment properties(1,100)(2,436)Net cash used in investing activities(1,100)(2,436)Net increase in cash and cash equivalents$65,85945,031Cash and cash equivalents at beginning of period1,912,1811,931,278Cash and cash equivalents at end of period$1,978,0401,976,309          See accompanying notes to financial statements. -5-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements  March 31, 2011 (unaudited)  Readers of this quarterly report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2010 which are included in the Partnership's 2010 annual report, as certain footnote disclosures which would substantially duplicate those contained in such audited financial statements have been omitted from this report.  (1) Organization and Basis of Accounting  The Registrant, Inland Land Appreciation Fund, L.P. (the "Partnership"), was formed in October 1987, pursuant to the Delaware Revised Uniform Limited Partnership Act, to invest in undeveloped land on an all-cash basis and realize appreciation of such land upon resale. Between October 12, 1988 and October 6, 1989, the Partnership sold 30,000 Limited Partnership Units (Units) at $1,000 per Unit, resulting in gross offering proceeds of $30,000,000. Inland Real Estate Investment Corporation is the General Partner. The Limited Partners of the Partnership share in their portion of benefits of ownership of the Partnership's real property investments according to the number of Units held. Through March 31, 2011, the Partnership had repurchased a total of 407.75 Units for $359,484 from various Limited Partners through a Unit Repurchase Program.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  In the opinion of management, the financial statements contain all the adjustments necessary to present fairly the financial position and results of operations for the periods presented herein. Results of interim periods are not necessarily indicative of results to be expected for the year.  The Partnership considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents and are carried at cost, which approximates market value. The Partnership maintains its cash and cash equivalents at financial institutions. The combined account balances at one or more institutions periodically exceed the Federal Depository Insurance Corporation (FDIC) insurance coverage of $250,000 on interest bearing accounts and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Partnership believes that the risk is not significant, and the Partnership does not anticipate the financial institutions non-performance.  The Partnership recognizes income from the sale of land parcels in accordance with the full accrual method of accounting.  The Partnership's escrow agent holds earnest money deposits from a prospective purchaser when an agreement for sale is executed. Generally, these funds are not the Partnership's until the closing has occurred or the buyer under the sale agreement has committed a default which would entitle the Partnership to the earnest money.  Except as described in footnote (b) to Note 3 of these notes, the Partnership uses the area method of allocation, whereby a per acre price is used as the standard allocation method for land purchases and sales. The total cost of the parcel is divided by the total number of acres to arrive at a per acre price. Repairs and maintenance expenses are charged to operations as incurred.   -6-  INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)    (2) Transactions with Affiliates  The General Partner and its affiliates are entitled to reimbursement for salaries and expenses of employees of the General Partner and its affiliates relating to the administration of the Partnership. Such costs of $15,870 and $15,662 have been incurred and are included in professional services to affiliates and general and administrative expenses to affiliates for the three months ended March 31, 2011 and 2010, respectively, of which $14,479 and $5,618 was unpaid as of March 31, 2011 and December 31, 2010, respectively.  An affiliate of the General Partner performed marketing and advertising services for the Partnership and was reimbursed (as set forth under terms of the Partnership Agreement) for direct costs. Such costs of $365 and $2,385 have been incurred and are included in marketing expenses to affiliates for the three months ended March 31, 2011 and 2010, respectively, of which $100 and $138 was unpaid as of March 31, 2011 and December 31, 2010, respectively.  An affiliate of the General Partner performed land improvements, rezoning, annexation and other activities to prepare the Partnership's investment properties for sale and was reimbursed (as set forth under terms of the Partnership Agreement) for salaries and direct costs. For the three months ended March 31, 2011 and 2010, the Partnership incurred $0 and $356, respectively, of such costs. When incurred, such costs are included in investment properties, of which all was paid as of December 31, 2010. The affiliate did not recognize a profit on any project.  As of March 31, 2011 and December 31, 2010, the Partnership had invested in a money market account with Inland Bank and Trust, an affiliate of the General Partner.          -7-


INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)


(3)  Investment properties Initial CostsIllinoisGross Acres PurchasedPurchase/SalesOriginalAcquisitionTotalCosts  Capitalized Subsequent toCosts of PropertyTotal Remaining Costs of Parcels atCurrent Year Gain on SaleParcelCounty(Sold)DateCostsCostsCostsAcquisitionSold03/31/11Recognized1Kendall84.736001/19/89$423,68061,625485,3055,462,5895,947,894--(3.5200)12/24/96(.3520)11/25/97(80.8640)12/29/972McHenry223.412101/19/89650,00095,014745,01426,816771,830--(183.3759)12/27/90(40.0362)05/11/003Kendall20.000002/09/89189,00013,305202,305-202,305--(20.0000)05/08/904Kendall69.276004/18/89508,19638,126546,3221,223,3761,769,698--(.4860)02/28/91(27.5850)08/25/95(4.4017)Var 2001(2.1400)Var 2002(23.0933)Var 2003(6.7800)Var 2004(4.7900)Var 20055Kendall (a)372.223005/03/892,532,227135,9432,668,170456,3983,124,568--(Option)04/06/90(372.2230)06/20/036Kendall (b)78.390006/21/89416,78331,691448,4741,461,2561,909,730--(3.9500)11/01/00(30.0000)07/12/05(33.4270)07/27/06(11.0130)08/22/077Kendall (b)77.049006/21/8984,7548,16392,9171,438,7271,531,644--(71.2070)08/22/07(5.8420)03/20/08   -8-


INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)


(3)  Investment properties (continued) Initial CostsIllinoisGross Acres PurchasedPurchase/SalesOriginalAcquisitionTotalCosts Capitalized Subsequent toCosts of PropertyTotal Remaining Costs of Parcels atCurrent Year Gain on SaleParcelCounty(Sold)DateCostsCostsCostsAcquisitionSold03/31/11Recognized8Kendall (b)5.000006/21/89$60,0005,11365,113-65,113--(5.0000)10/06/899McHenry (b)51.030008/07/89586,84522,482609,32794,659-703,986-10McHenry (b)123.940008/07/8991,9397,22499,16360099,763--(123.9400)12/06/8911McHenry (b)30.592008/07/89321,21622,641343,85794,534-438,391-12Kendall90.271010/31/89907,38941,908949,297246,9641,196,261--(.7090)04/26/91(89.5620)03/10/0413McHenry92.780011/07/89251,30619,188270,49418,745289,239--(2.0810)09/18/97(90.6990)02/15/0114McHenry76.202011/07/89419,11123,402442,513206,595-649,108-15Lake84.556401/03/901,056,95585,2831,142,2381,661,3442,803,582--(10.5300)Var 1996(5.4680)Var 1997(68.5584)Var 199816Kane/72.418701/29/901,273,53755,3331,328,870706,7182,035,588--Kendall(30.9000)07/10/98(10.3910)12/15/99(3.1000)12/12/00(28.0277)05/19/0317McHenry99.924001/29/90739,63561,038800,6731,254,202320,9611,733,914-(27.5100)01/29/99   -9-


INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)


(3)  Investment properties (continued) Initial CostsIllinoisGross Acres PurchasedPurchase/SalesOriginalAcquisitionTotalCosts Capitalized Subsequent toCosts of PropertyTotal Remaining Costs of Parcels atCurrent Year Gain on SaleParcelCounty(Sold)DateCostsCostsCostsAcquisitionSold03/31/11Recognized18McHenry71.487001/29/90$496,11626,259522,375517,21611,1091,028,482-(1.0000)Var 1990(.5200)03/11/9319McHenry63.691502/23/90490,15829,158519,316639,975-1,159,291-20Kane224.148002/28/902,749,800183,0922,932,8921,938,9304,871,822--(.2790)10/17/91(223.8690)02/20/0421Kendall172.495003/08/901,327,45975,8221,403,281954,4152,357,696--(172.4950)Var 199822McHenry254.525004/11/902,608,881136,5592,745,440577,489-3,322,929-(51.000)10/02/0823Kendall140.021005/08/901,480,000116,2401,596,240909,3952,505,635--(4.4100)Var 1993(35.8800)Var 1994(3.4400)Var 1995(96.2910)08/26/9924Kendall298.483005/23/901,359,77498,9211,458,695101,991436,6381,124,048-(12.4570)05/25/90(4.6290)04/01/96(69.8200)11/26/0225Kane225.000006/01/902,600,000168,7782,768,778301,040-3,069,818-Totals$23,624,7611,562,30825,187,06920,293,97432,251,07613,229,967-    -10-


INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)


(3) Investment properties (continued)  (a) Included in the purchase agreement of Parcel 5 was a condition that required the Partnership to buy an option to purchase an additional 243 acres immediately to the west of this parcel.  The 1990 sale transaction relates to the sale of this option.  (b) The Partnership purchased from two third parties, two sets of three contiguous parcels of land (Parcels 6, 7 and 8; and Parcels 9, 10 and 11). The General Partner believes that the total value of this land will be maximized if it is treated and marketed to buyers as six separate parcels and closed the transactions as six separate purchases to facilitate this. Parcels 6, 7 and 8 will be treated as one parcel and Parcels 9, 10 and 11 will be treated as one parcel for purposes of computing Parcel Capital (as defined in the Partnership Agreement) and distributions to the partners.  (c) Reconciliation of investment properties owned:  March 31, 2011December 31, 2010Balance at January 1,$13,228,86713,226,075Additions during period1,1002,792Balance at end of period$13,229,96713,228,867  (d) On a quarterly basis, the Partnership reviews impairment indicators and if necessary, conducts an impairment analysis to ensure that the carrying value of each investment property does not exceed its estimated fair value. If this were to occur, the Partnership would be required to record an impairment loss equal to the excess of the carrying value over the estimated fair value.  In determining the value of an investment property and whether the property is impaired, management considers several indicators which require difficult, complex and/or subjective judgments, such as projected sales prices, capital expenditures and assessment of current economic conditions. The aforementioned indicators are considered by management in determining the value of any particular property. The value of any particular property is sensitive to the actual results of any of these uncertain indicators, either individually or taken as a whole. Should the actual results differ from management's judgment, the valuation could be negatively or positively affected.  The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on management's continuous process of analyzing each property. For the three months ended March 31, 2011, the Partnership had recorded no such impairment.  (4) Rental Income  The Partnership has determined that all leases relating to the farm parcels are operating leases. Accordingly, rental income is reported when earned.  As of March 31, 2011, the Partnership had farm leases of generally one year in duration, for approximately 921 acres of the approximately 1,004 acres owned.  -11-


INLAND LAND APPRECIATION FUND, L.P. (a limited partnership)  Notes to Financial Statements (continued)


(5)  Subsequent Events    The Partnership evaluates subsequent events occurring between the most recent balance sheet date and the date that the financial statements are available to be issued in order to determine whether the subsequent events are to be recorded in and/or disclosed in the Partnerships financial statements and footnotes. The financial statements are considered to be available to be issued at the time that they are filed with the Securities and Exchange Commission. There are no subsequent events to report that would have a material impact on the Partnerships financial statements.   -12-    Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations  Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this quarterly report on Form 10-Q constitute forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These factors include, among other things, adverse changes in real estate, financing and general economic or local conditions; the ability to obtain annexation and zoning approvals required to develop our properties; the approval of local governing bodies to develop our properties; successful lobbying of local "no growth" or limited development homeowner groups; eminent domain proceedings; changes in the environmental conditions or changes in the environmental positions of governmental bodies; and potential conflicts of interest between us and our affiliates, including our general partner.  We electronically file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports with the Securities and Exchange Commission (SEC). The public may read and copy any of the reports that are filed with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at (800)-SEC-0330. The SEC maintains an Internet site at (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically.  Critical Accounting Policies  The Securities and Exchange Commission previously issued Financial Reporting Release (FRR) or FRR No. 60 "Cautionary Advice Regarding Disclosure About Critical Accounting Policies. A critical accounting policy is one that would materially affect our operations or financial condition, and requires management to make estimates or judgments in certain circumstances. We believe that our most critical accounting policies relate to how we value and classify our investment properties, the allocation of costs of investment properties and revenue recognition. These judgments often result from the need to make estimates about the effect of matters that are inherently uncertain. The purpose of the FRR is to provide investors with an understanding of how management forms these policies. Critical accounting policies discussed in this section are not to be confused with accounting principles and methods disclosed in accordance with accounting principles generally accepted in the United States of America or GAAP. GAAP requires information in financial statements about accounting principles, methods used and disclosures pertaining to significant estimates. The following disclosure discusses judgments known to management pertaining to trends, events or uncertainties known which were taken into consideration upon the application of those policies and the likelihood that materially different amounts would be reported upon taking into consideration different conditions and assumptions.  Valuation of Investment Properties - On a quarterly basis, we review impairment indicators and if necessary, conduct an impairment analysis to ensure that the carrying value of each investment property does not exceed its estimated fair value. If an investment property is considered impaired, we would be required to record an impairment loss equal to the excess of carrying value over the estimated fair value.  In determining the value of an investment property and whether the property is impaired, management considers several indicators which require difficult, complex and/or subjective judgments, such as projected sales prices, capital expenditures and assessment of current economic conditions. These indicators are considered by management in determining the value of any particular property. The value of any particular property is sensitive to the actual results of any of these uncertain indicators, either individually or taken as a whole. Should the actual results differ from management's judgment, the valuation could be negatively or positively affected.  The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on management's continuous process of analyzing each property. For the three months ended March 31, 2011, we had recorded no such impairment.   -13-    Cost Allocation  We use the area method of cost allocation, whereby a per acre price is used as the standard allocation method for land purchases and sales. The total cost of the parcel is divided by the total number of acres to arrive at a per acre price.  Revenue Recognition - We recognize income from the sale of land parcels in accordance with the full accrual method of accounting.  Assets Held for Sale -In determining whether to classify an asset as held for sale, we consider whether: (i) management has committed to a plan to sell the asset; (ii) the asset is available for immediate sale, in its present condition; (iii) we have initiated a program to locate a buyer; (iv) we believe that the sale of the asset is probable; (v) we are actively marketing the asset for sale at a price that is reasonable in relation to its current value; and (vi) actions required for us to complete the plan indicate that it is unlikely that any significant changes will be made to the plan.  If all of the above criteria are met, we classify the asset as held for sale. The assets and liabilities associated with those assets that are held for sale are classified separately on the balance sheets for the most recent reporting period. Additionally, the operations for the periods presented are classified on the statements of operations as discontinued operations for all periods presented.  From time to time, we may determine that a held for sale property no longer meets the criteria to continue to be classified as held for sale. If this occurs, we record the property at the lower of the carrying amount before the property was classified as held for sale or the fair value at the decision date not to sell. As of March 31, 2011, we have not classified any properties as held for sale.  Liquidity and Capital Resources  Between October 12, 1988 and October 6, 1989, we sold 30,000 limited partnership units to the public at $1,000 per unit resulting in $30,000,000 in gross offering proceeds.  We used $25,187,069 of gross offering proceeds to purchase on an all-cash basis twenty-five parcels of undeveloped land and an option to purchase undeveloped land. These investments include the payment of the purchase price, acquisition fees and acquisition costs of such properties. Fourteen of the parcels were purchased during 1989 and eleven during 1990. Through March 31, 2011, we have had multiple sales transactions disposing of approximately 2,098 acres of the approximately 3,102 acres originally owned. As of March 31, 2011, cumulative distributions to the limited partners have totaled $38,674,493, which is equivalent to 129% of the original capital raised which was $30,000,000 and $4,745,451 to the general partner. Through March 31, 2011, we have used $20,293,974 of working capital for rezoning and other activities. Such amounts have been capitalized and are included in investment properties.  Our capital needs and resources will vary depending upon a number of factors, including the extent to which we conduct rezoning and other activities relating to utility access, the installation of roads, subdivision and/or annexation of land to a municipality, changes in real estate taxes affecting our land, and the amount of revenue received from leasing. As of March 31, 2011, we own, in whole or in part, nine of our twenty-five original parcels, the majority of which are leased to local farmers and are generating sufficient cash flow from farm leases to cover real estate taxes and insurance expense.  At March 31, 2011, we had cash and cash equivalents of $1,978,040, which is available to be used for our costs and liabilities, cash distributions to partners and other activities with respect to some or all of our land parcels.  During the three months ended March 31, 2011, there were no land sales. If land sales occur, net sales proceeds will be used to cover our current and future operations, including land improvements and land use activities. We will evaluate our cash needs throughout the year to determine future distributions.  We plan to enhance the value of our remaining land through pre-development activities such as rezoning, annexation and land planning. We have already been successful in pre-development activity on several of our remaining land investments, specifically Parcels 17, 18, 19 and 22, being approximately 410 acres in McHenry County, Illinois.   -14-    We continue to closely monitor the real estate market trends, especially within the areas where our remaining parcels are located. We have not seen an increase in the residential real estate market and new home starts in these middle class communities remain weak. That, coupled with stricter lender requirements, adversely impact sales activity, especially sales of residential lots and sales of vacant land for retail purposes. We realize it could take some time for these current trends to improve which could result in an even longer holding period. However, we believe we have taken the steps necessary to reduce costs and maintain sufficient reserves of cash and cash equivalents to cover all our costs for an extended period of time. We have farm leases in place which generate sufficient income to cover the costs of insurance expense and real estate taxes. Our remaining land is not encumbered by debt and is located in areas that we believe are in the paths of future development.  Transactions with Related Parties  Our general partner and its affiliates are entitled to reimbursement for salaries and expenses of their employees relating to our administration. Such costs of $15,870 and $15,662 have been incurred and are included in professional services to affiliates and general and administrative expenses to affiliates for the three months ended March 31, 2011 and 2010, respectively, of which $14,479 and $5,618 was unpaid as of March 31, 2011 and December 31, 2010, respectively.  An affiliate of our general partner performed marketing and advertising services for us and was reimbursed for direct costs. Such costs of $365 and $2,385 have been incurred and are included in marketing expenses to affiliates for the three months ended March 31, 2011 and 2010, respectively, of which $100 and $138 was unpaid as of March 31, 2011 and December 31, 2010, respectively.  An affiliate of our general partner performed land improvements, rezoning, annexation and other activities to prepare our investment properties for sale and was reimbursed for salaries and direct costs. For the three months ended March 31, 2011 and 2010, we incurred $0 and $356, respectively, of such costs. When incurred, such costs are included in investment properties, of which all was paid as of December 31, 2010. The affiliate did not recognize a profit on any project.  As of March 31, 2011 and December 31, 2010, the Partnership had invested in a money market account with Inland Bank and Trust, an affiliate of the general partner.  Results of Operations  As of March 31, 2011, we owned nine parcels of land consisting of approximately 1,004 acres. Of the 1,004 acres owned, approximately 921 acres are leased to local farmers and generate sufficient cash flow to cover real estate taxes and insurance expense. Rental income was $53,114 and $51,581 for the three months ended March 31, 2011 and 2010, respectively. Rental income increased due to an increase in the farm rental rates.  There were no sales of land parcels for the three months ended March 31, 2011 and 2010. The lack of sales activity for the three months ended March 31, 2011 and 2010 is a continued result of the depressed real estate market and the slow down in the sales of vacant land.  There has been no change in the status of the land planning process for the three contiguous parcels 17, 18, and 22. Parcels 17 and 18 are within the planning jurisdiction of the City of Woodstock. Parcel 22 was forcibly annexed into the corporate limits of the Village of Bull Valley and subject to that villages restrictions. For land planning purposes, it was our intent to have most if not all three parcels annexed to the City of Woodstock. In a prior year, we entered into a Settlement and Annexation Agreement with the Village of Bull Valley which moved the boundary line favorably for us allowing us to proceed with the land planning for these parcels with the City of Woodstock. The settlement with Bull Valley provided the prospect of allowing us to develop the property with sewer and water facilities from the City of Woodstock and with a land use that could not have been developed in Bull Valley. In consideration for the release of land, we simultaneously conveyed approximately 51 acres of Parcel 22 to the Village of Bull Valley. Also as part of the settlement, we received favorable zoning for the remaining land that lies within the limits of the Village of Bull Valley.   -15-    Parcel 19 previously received approval from the required Village of McHenry municipal departments for a preliminary plan approving a 41 unit well and septic residential subdivision to be called Hunters Woods. Following the downturn in the real estate market, we sought an extension in the time limit for recording the final plat for the Hunters Woods Subdivision. The extension expires on May 5, 2011. During this first quarter of 2011, we formally submitted a request for an additional one year extension as allowed by the Village of McHenry. It is our intent to preserve the validity of our preliminary plan until such time as the market rebounds and homebuilders resume new home construction in this area.  Parcel 25 previously received approval from the subdivision and zoning department of Kane County for the preliminary plan for a residential development to be known as the Stonefield Subdivision located in Campton Township within the jurisdiction of Kane County. Similarly, to Parcel 19 above, following the downturn in the real estate market, we sought an extension in the time limit for recording the final plat for the Stonefield Subdivision. An extension was granted and runs through October 20, 2011. It is our intent to request an additional extension later this year to preserve the validity of our preliminary plan until such time as the market rebounds and homebuilders resume new home construction in this area.  Professional services to affiliates and non-affiliates were $45,162 and $42,238 for the three months ended March 31, 2011 and 2010, respectively. Professional services primarily include accounting and legal fees. Professional services to affiliates and non-affiliates increased due to an increase in legal fees.  General and administrative expenses to affiliates and non-affiliates were $13,506 and $12,419 for the three months ended March 31, 2011 and 2010, respectively. General and administrative expenses primarily include data processing costs, postage, and printing expenses. General and administrative expenses to affiliates and non-affiliates increased due primarily to an increase in data processing costs and investor services.  Marketing expenses to affiliates were $365 and $2,385 for the three months ended March 31, 2011 and 2010, respectively. Marketing expenses to affiliates are costs incurred for preparing and marketing parcels for sale. The decrease in marketing expenses is due to the continued slow down in real estate sales.  Land operating expenses to non-affiliates were $3,581 and $3,053 for the three months ended March 31, 2011 and 2010, respectively. These costs primarily include real estate tax expense on the parcels we own. The increase is due primarily to an increase in real estate tax expenses.  Interest income was $5,255 and $5,286 for the three months ended March 31, 2011 and 2010, respectively. Interest income is primarily a result of the cash available to invest on a short term basis. The decrease in interest income is due to a decrease in interest rates.  Other income was $2,050 and $1,750 for the three months ended March 31, 2011 and 2010, respectively. Other income is due primarily to transfer fee income as a result of the number of completed Unit transfers. The increase is due to more transfer fee income as a result of an increase in the number of completed Unit transfers.  Subsequent Events  The Partnership evaluates subsequent events occurring between the most recent balance sheet date and the date that the financial statements are available to be issued in order to determine whether the subsequent events are to be recorded in and/or disclosed in the Partnerships financial statements and footnotes. The financial statements are considered to be available to be issued at the time that they are filed with the Securities and Exchange Commission. There are no subsequent events to report that would have a material impact on the Partnerships financial statements.  Other Items  In accordance with Article XVI Section 16.1 of the Inland Land Appreciation Fund, L.P. Partnership Agreement and Treasury Regulation Section 1.7704-1(j), we have not yet reached the maximum threshold of limited partnership units that may be transferred/assigned directly between parties during 2011. Therefore, we may authorize additional sales of partnership units directly between parties during 2011. For the benefit of interested limited partners, we have a  -16-    relationship with a qualified matching service as defined under Treasury Regulation Section 1.7704-1(g). In accordance with this Treasury Regulation and the IRS private letter ruling obtained by the qualified matching service, we understand that limited partnership units may be transferred/assigned up to a separate maximum threshold each taxable year (in addition to the maximum threshold that may be transferred/assigned directly between parties discussed above). However, there can be no assurance that the IRS private letter ruling will apply to transfers of our units, or that any particular transfer will not violate the transfer restrictions contained in our partnership agreement or the provisions of Treasury Regulation Section 1.7704-1(g). If you have any interest in participating in a transfer/assignment of partnership units through this qualified matching service, please contact American Partnership Board directly at 800-736-9797. You are strongly encouraged to consult your personal legal, financial and tax advisors in connection with any such transfer/assignment.  The Illinois Department of Revenue finalized regulations in regards to Illinois income tax withholding requirements for nonresident partners. The withholding requirements were effective for the taxable years ending on or after December 31, 2008. For the taxable year ending December 31, 2010, there were no withholdings required. We are also required to pay a withholding tax to the Internal Revenue Service with respect to a partner's allocable share of our taxable net income, if the partner is a foreign person. We will first pay the withholding tax from the distributions to any nonresident and/or foreign partners, and to the extent that the tax exceeds the amount of distributions withheld, or if there have been no distributions to withhold, the excess will be accounted for as a distribution to such nonresident and/or foreign partners.  There were no withholdings paid during the first quarter of 2011.  Off-Balance Sheet Arrangements, Contractual Obligations, Liabilities and Contracts and Commitments  None  Item 3. Quantitative and Qualitative Disclosures About Market Risk  Not Applicable  Item 4. Controls and Procedures  Evaluation of Disclosure Controls and Procedures  We have established disclosure controls and procedures to ensure that material information relating to us is made known to the members of senior management and the Audit Committee.  Based on management's evaluation as of March 31, 2011, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are effective to ensure that the information required to be disclosed by us in our reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.  Management's Report on Internal Control Over Financial Reporting  Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including our principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on our evaluation under the framework in Internal Control - Integrated Framework,our management concluded that our internal control over financial reporting was effective as of March 31, 2011. This quarterly report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  There were no changes to our internal controls over financial reporting during the three months ended March 31, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.    -17-    PART II - Other Information  Items 1 through 5 are omitted because of the absence of conditions under which they are required.  Item 6. Exhibits  Exhibits:  31.1Rule 13a-14(a)/15d-14(a) Certification by Principal Executive Officer31.2Rule 13a-14(a)/15d-14(a) Certification by Principal Financial Officer32.1Section 1350 Certification by Principal Executive Officer32.2Section 1350 Certification by Principal Financial Officer  -18-    SIGNATURES   Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  INLAND LAND APPRECIATION FUND, L.P.By:Inland Real Estate Investment CorporationIts:General PartnerBy:/S/ BRENDA G. GUJRALBy:Brenda G. GujralIts:Principal Executive OfficerDate:May 2, 2011By:/S/ GUADALUPE GRIFFINBy:Guadalupe GriffinIts:Vice PresidentDate:May 2, 2011By:/S/ DONNA URBAINBy:Donna UrbainIts:Principal Financial OfficerDate:May 2, 2011     -19-