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


                                   FORM 10-Q




[X] Quarterly  Report  pursuant  to  Section  13  or  15(d)  of  the Securities
    Exchange Act of 1934


               For the Quarterly Period Ended September 30, 1998

                                      or

[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

        For the transition period from                to               


                           Commission File #0-18431


                      Inland Land Appreciation Fund, L.P.
            (Exact name of registrant as specified in its charter)


         Delaware                                  #36-3544798
(State or other jurisdiction           (I.R.S. Employer Identification Number)
 of incorporation or organization)


2901 Butterfield Road, Oak Brook, Illinois             60523
 (Address of principal executive office)             (Zip Code)


       Registrant's telephone number, including area code:  630-218-8000


                                     N/A                  
                    (Former name, former address and former
                  fiscal year, if changed since last report)


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   





                                      -1-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                                Balance Sheets

                   September 30, 1998 and December 31, 1997
                                  (unaudited)

                                    Assets
                                    ------

                                                       1998          1997
                                                       ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $ 1,110,874        15,502
  Accounts and accrued interest receivable
    (Note 5)......................................     181,716         1,361
  Current portion of mortgage loans
    receivable (Note 5)...........................   4,497,898       575,000
  Other current assets............................       7,519         2,241
                                                   ------------  ------------
Total current assets..............................   5,798,007       594,104
                                                   ------------  ------------
Other assets......................................      19,915        19,915
Mortgage loans receivable, less current
  portion (Note 5)................................   2,705,037     1,595,089
Investments in land and improvements, at cost
  (including acquisition fees paid to Affiliates
  of $970,132 and $1,430,329 at September 30,
  1998 and December 31, 1997, respectively)
  (Notes 1, 2 and 3)..............................  20,868,287    25,848,790
                                                   ------------  ------------
Total assets...................................... $29,391,246    28,057,898
                                                   ============  ============






















                See accompanying notes to financial statements.


                                      -2-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                                Balance Sheets
                                  (continued)

                   September 30, 1998 and December 31, 1997
                                  (unaudited)

                       Liabilities and Partners' Capital
                       ---------------------------------

                                                       1998          1997
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $     2,055        25,185
  Accrued real estate taxes.......................      31,426        47,889
  Due to Affiliates (Note 2)......................     746,675       595,655
  Notes payable to Affiliate (Note 6).............   2,670,400     3,283,471
  Unearned income.................................      11,075        19,278
                                                   ------------  ------------
Total current liabilities.........................   3,461,631     3,971,478
                                                   ------------  ------------
Deferred gain on sale (Note 5)....................   1,500,267       106,905

Partners' capital (Notes 1 and 2):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................     167,539       165,949
    Cumulative cash distributions.................    (153,743)     (153,743)
                                                   ------------  ------------
                                                        14,296        12,706
  Limited Partners:                                ------------  ------------
    Units of $1,000. Authorized 30,001 Units,
      29,606.25 and 29,629.25 Units outstanding
      at September 30, 1998 and December 31, 1997,
      respectively (net of offering costs of
      $3,768,113, of which $1,069,764 was
      paid to Affiliates).........................  25,882,018    25,900,396
    Cumulative net income.........................   4,529,253     4,062,632
    Cumulative cash distributions.................  (5,996,219)   (5,996,219)
                                                   ------------  ------------
                                                    24,415,052    23,966,809
                                                   ------------  ------------
Total Partners' capital...........................  24,429,348    23,979,515
                                                   ------------  ------------
Total liabilities and Partners' capital........... $29,391,246    28,057,898
                                                   ============  ============








                See accompanying notes to financial statements.


                                      -3-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Operations

        For the three and nine months ended September 30, 1998 and 1997
                                  (unaudited)


                                        Three months           Nine months
                                           ended                 ended
                                        September 30,         September 30,
                                        -------------         -------------
                                       1998       1997       1998       1997
Income:                                ----       ----       ----       ----
  Land sales (Notes 1 and 3)....... $  870,391   116,517   5,803,143   418,074
  Rental income (Note 4)...........     58,957    60,033     178,972   181,819
  Interest income..................    177,279        61     282,338       209
  Other income.....................       -         -         17,500     5,000
                                    ---------- ---------- ---------- ----------
                                     1,106,627   176,611   6,281,953   605,102
                                    ---------- ---------- ---------- ----------
Expenses:
  Cost of land sold................    787,088    42,464   5,493,948   138,701
  Professional services to
    Affiliates.....................     12,685    11,800      37,085    37,300
  Professional services to
    non-affiliates.................        123       339      31,903    46,652
  General and administrative
    expenses to Affiliates.........      2,007     5,567      11,229    21,050
  General and administrative
    expenses to non-affiliates.....      1,541     2,724      13,537    18,442
  Marketing expenses to Affiliates.     12,148    30,300      46,426   105,587
  Marketing expenses to
    non-affiliates.................      7,044    24,944      33,690    85,988
  Land operating expenses to
    Affiliates.....................       -       14,107      25,858    42,347
  Land operating expenses to
    non-affiliates.................     62,486    28,568     120,066    55,789
                                    ---------- ---------- ---------- ----------
                                       885,122   160,813   5,813,742   551,856
                                    ---------- ---------- ---------- ----------
  Net income....................... $  221,505    15,798     468,211    53,246
                                    ========== ========== ========== ==========












                See accompanying notes to financial statements.


                                      -4-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Operations
                                  (continued)

        For the three and nine months ended September 30, 1998 and 1997
                                  (unaudited)


                                        Three months           Nine months
                                           ended                 ended
                                        September 30,         September 30,
                                        -------------         -------------
                                       1998       1997       1998       1997
                                       ----       ----       ----       ----
Net income (loss) allocated to:
  General Partner.................. $   1,382       (582)     1,590     (2,261)
  Limited Partners.................   220,123     16,380    466,621     55,507
                                    ---------- ---------- ---------- ----------
Net income......................... $ 221,505     15,798    468,211     53,246
                                    ========== ========== ========== ==========

Net income (loss) allocated to the
  one General Partner Unit......... $   1,382       (582)     1,590     (2,261)
                                    ========== ========== ========== ==========

Net income per Unit, basic and 
  diluted, allocated to Limited
  Partners per weighted average
  Limited Partnership Units
  (29,619.72 and 29,629.24 for the
  three months ended September 30,
  1998 and 1997, and 29,626.03 and
  29,642.43 for the nine months
  ended September 30, 1998 and
  1997, respectively).............. $    7.43        .55      15.75       1.87
                                    ========== ========== ========== ==========


















                See accompanying notes to financial statements.


                                      -5-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Cash Flows

             For the nine months ended September 30, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
Cash flows from operating activities:                  ----          ----
  Net income...................................... $   468,211        53,246
  Adjustments to reconcile net income to net
      cash provided by operating activities:
    Gain on sale of land..........................    (309,195)     (279,373)
    Changes in assets and liabilities:
      Accounts and accrued interest receivable....    (180,355)      (45,713)
      Other current assets........................      (5,278)         (962)
      Accounts payable............................     (23,130)      (57,739)
      Accrued real estate taxes..................      (16,463)      (12,309)
      Due to Affiliates...........................     151,020       472,300
      Unearned income.............................      (8,203)      (23,239)
      Deferred gain on sale.......................      38,964          -
                                                   ------------  ------------
 Net cash provided by operating activities........     115,571       106,211
                                                   ------------  ------------
Cash flows from investing activities:
  Additions to investments in land and
    improvements..................................    (513,445)   (1,851,945)
  Principal payments collected on mortgage
    loans receivable..............................     743,031          -
  Proceeds from disposition of investments in
    land and improvements.........................     768,593       418,074
Net cash provided by (used in) investing           ------------  ------------
  activities......................................     998,179    (1,433,871)
                                                   ------------  ------------
Cash flows from financing activities:
  Repurchase of Limited Partnership Units.........     (18,378)      (25,847)
  Proceeds from notes payable to Affiliate, net...        -        3,150,239
  Cash distributions..............................        -       (1,849,816)
Net cash provided by (used in) financing           ------------  ------------
  activities......................................     (18,378)    1,274,576
Net increase (decrease) in cash and cash           ------------  ------------
  equivalents.....................................   1,095,372       (53,084)
Cash and cash equivalents at beginning of period..      15,502        89,672
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $ 1,110,874        36,588
                                                   ============  ============







                See accompanying notes to financial statements.


                                      -6-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                           Statements of Cash Flows

             For the nine months ended September 30, 1998 and 1997
                                  (unaudited)


Supplemental schedule of non-cash investing and financing activities:

                                                       1998          1997
                                                       ----          ----
Mortgage loans receivable......................... $(5,775,877)        -
Reduction in investments in land and improvements.   5,493,948         -
Gain on sale of land..............................     309,195         -
Assumption of note payable to Affiliate...........    (613,071)        -
Deferred gain on sale.............................   1,354,398         -
Proceeds from disposition of investments in land   ------------  ------------
  and improvements................................ $   768,593         -    
                                                   ============  ===========



































                See accompanying notes to financial statements.


                                      -7-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements

                              September 30, 1998
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1997, which are
included  in  the  Partnership's  1997   Annual  Report,  as  certain  footnote
disclosures which would  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.  On  October 12, 1988, the Partnership
commenced an  Offering  of  10,000  (subject  to  increase  to  30,000) Limited
Partnership Units ("Units") pursuant to  a  Registration Statement on Form S-11
under the Securities Act of 1933.  Inland Real Estate Investment Corporation is
the General Partner.  The  Offering  terminated  on October 6, 1989, with total
sales of 30,000 Units, at $1,000 per Unit, not including the General Partner or
the Initial Limited Partner.    All  of  the  holders  of these Units have been
admitted to this Partnership.  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.   As of September 30, 1998,
the Partnership has  repurchased  a  total  of  394.75  Units for $350,868 from
various Limited Partners  through  the  Unit  Repurchase  Program.   Under this
program Limited  Partners  may  under  certain  circumstances  have their Units
repurchased for an amount equal to their Invested Capital.

The preparation of financial  statements  in conformity with generally accepted
accounting principles 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 periods.
Actual results could differ from those estimates.

Offering costs have been offset against the Limited Partners' capital accounts.

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.











                                      -8-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


Statement of Financial Accounting Standards  No.  121 ("SFAS 121") requires the
Partnership to record  an  impairment  loss  on  its  property  to  be held for
investment whenever  its  carrying  value  cannot  be  fully  recovered through
estimated undiscounted future cash flows  from  their operations and sale.  The
amount of the impairment loss to  be recognized would be the difference between
the property's carrying value and the  property's  estimated fair value.  As of
September 30, 1998, the Partnership has not recognized any such impairment.

Except as described in footnote (b)  to  Note 3 of these notes, the Partnership
uses the area  method  of  allocation,  which  approximates  the relative sales
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.

The Partnership is required to  pay  a  withholding tax to the Internal Revenue
Service with  respect  to  a  Partner's  allocable  share  of the Partnership's
taxable net income, if the  Partner  is  a foreign person. The Partnership will
first pay the withholding tax  from  the  distributions to any foreign partner,
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 the foreign partner. Withholding tax payments are made
every April, June, September and December.

Statement of Financial Accounting  Standards  No.  128 "Earnings per Share" was
adopted by the Partnership for the  year  ended  December 31, 1997 and has been
applied to all prior  earnings  periods  presented in the financial statements.
The Partnership has no dilutive securities.

No provision for Federal income taxes  has  been made as the liability for such
taxes is that of the partners rather than the Partnership.

In  the  opinion  of  management,  the  financial  statements  contain  all the
adjustments necessary, which  are  of  a  normal  recurring  nature, 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.












                                      -9-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


(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 are included in
professional services and general and administrative expenses to Affiliates, of
which $129,192 and $90,278 were  unpaid  as  of September 30, 1998 and December
31, 1997, respectively.

The General Partner is entitled to  receive Asset Management Fees equal to one-
quarter of 1% of  the  original  cost  to  the  Partnership of undeveloped land
annually, limited to a cumulative total over  the life of the Partnership of 2%
of the land's original cost  to  the  Partnership.    As  of June 30, 1998, the
Partnership had met this  limit.  Such  fees  of  $25,858 and $42,347 have been
incurred for the nine months  ended  September 30, 1998 and 1997, respectively,
and are included in land operating expenses to Affiliates, of which $81,136 and
$55,279  were  unpaid  as  of  September   30,  1998  and  December  31,  1997,
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 $46,426 and
$105,587  have  been  incurred  and  are  included  in  marketing  expenses  to
Affiliates for the nine months ended September 30, 1998 and 1997, respectively,
of which $135,582  and  $151,908  were  unpaid  as  of  September  30, 1998 and
December 31, 1997, respectively.

An Affiliate of  the  General  Partner  performed  property upgrades, rezoning,
annexation and other activities  to  prepare the Partnership's land investments
for sale and  was  reimbursed  (as  set  forth  under  terms of the Partnership
Agreement) for salaries and direct  costs.    The Affiliate did not recognize a
profit on any project.   Such  costs  are  included  in investments in land, of
which $123,710 and $113,878 were unpaid  as  of September 30, 1998 and December
31, 1997, respectively.














                                     -10-


<TABLE>                                        INLAND LAND APPRECIATION FUND, L.P.
                                                     (a limited partnership)

                                                  Notes to Financial Statements
                                                           (continued)

(3) Investments in Land and Improvements
<CAPTION>

                                                                                                              Total
                   Gross                            Initial Costs                 Costs                     Remaining    Current
                   Acres    Purchase/  --------------------------------------  Capitalized     Costs of      Costs of   Year Gain
       Location: Purchased    Sales       Original  Acquisition     Total     Subsequent to    Property     Parcels at   on Sale
Parcel  County    (Sold)      Date         Costs       Costs        Costs      Acquisition       Sold        9/30/98    Recognized
------ --------- ---------- ---------- ------------ ------------ ------------ -------------- ------------ ------------ ------------
<S>     <C>      <C>         <C>         <C>          <C>          <C>           <C>          <C>            <C>          <C>
 1      Kendall    84.7360   01/19/89  $   423,680       61,625      485,305      5,462,589    5,947,894          -         36,604
                   (3.5200)  12/24/96
                    (.3520)  11/25/97
                  (80.8640)  12/29/97

 2      McHenry   223.4121   01/19/89      650,000       95,014      745,014         21,556      611,505       155,065        -
                 (183.3759)  12/27/90  

 3      Kendall    20.0000   02/09/89      189,000       13,305      202,305           -         202,305          -           -
                  (20.0000)  05/08/90  

 4      Kendall    69.2760   04/18/89      508,196       38,126      546,322         60,819      235,275       371,866        -
                    (.4860)  02/28/91
                  (27.5750)  08/25/95

 5      Kendall   372.2230   05/03/89    2,532,227      135,943    2,668,170         26,350      160,313     2,534,207        -
        (a)        (Option)  04/06/90  

 6      Kendall    78.3900   06/21/89      416,783       31,691      448,474        198,404         -          646,878        -
        (b)
 7      Kendall    77.0490   06/21/89       84,754        8,163       92,917        183,691         -          276,608        -
        (b)
 8      Kendall     5.0000   06/21/89       60,000        5,113       65,113           -          65,113          -           -
        (b)        (5.0000)  10/06/89

 9      McHenry    51.0300   08/07/89      586,845       22,482      609,327          2,043         -          611,370        -
        (b)
10      McHenry   123.9400   08/07/89       91,939        7,224       99,163            600       99,763          -           -
        (b)      (123.9400)  12/06/89

11      McHenry    30.5920   08/07/89      321,216       22,641      343,857          6,354         -          350,211        -
        (b)
12      Kendall    90.2710   10/31/89      907,389       41,908      949,297          1,052        7,456       942,893        -
                    (.7090)  04/26/91

13      McHenry    92.7800   11/07/89      251,306       19,188      270,494          4,189        6,136       268,547        -
                   (2.0810)  09/18/97

14      McHenry    76.2020   11/07/89      419,111       23,402      442,513         43,499         -          486,012        -

15       Lake      84.5564   01/03/90    1,056,955       85,283    1,142,238      1,576,806    2,719,044          -        111,704
                  (10.5300)  Var 1996
                   (5.4680)  Var 1997
                  (68.5584)  Var 1998  ------------ ------------ ------------ -------------- ------------ ------------ ------------

        Subtotal                       $ 8,499,401      611,108    9,110,509      7,587,952   10,054,804     6,643,657     148,308


                                                                   -11-


                                     -11-


                                                    INLAND LAND APPRECIATION FUND, L.P.
                                                          (a limited partnership)

                                                       Notes to Financial Statements
                                                                (continued)



(3) Investments in Land and Improvements (continued)
                                                                                                              Total
                   Gross                            Initial Costs                 Costs                     Remaining    Current
                   Acres    Purchase/  --------------------------------------  Capitalized     Costs of      Costs of   Year Gain
       Location: Purchased    Sales       Original  Acquisition     Total     Subsequent to    Property     Parcels at   on Sale
Parcel  County    (Sold)      Date         Costs       Costs        Costs      Acquisition       Sold        9/30/98    Recognized
------ --------- ---------- ---------- ------------ ------------ ------------ -------------- ------------ ------------ ------------
<S>     <C>      <C>         <C>         <C>          <C>          <C>           <C>          <C>            <C>          <C>
 
       Subtotal                        $ 8,499,401      611,108    9,110,509      7,587,952   10,054,804    6,643,657    148,308

16  Kane/Kendall  72.4187    01/29/90    1,273,537       55,333    1,328,870        164,989      787,087      706,772     72,665
                 (30.9000    07/10/98)

17      McHenry   99.9240    01/29/90      739,635       61,038      800,673        340,747         -       1,141,420       -

18      McHenry   71.4870    01/29/90      496,116       26,259      522,375         20,595       11,109      531,861       -
                  (1.0000)   Var 1990
                   (.5200)   03/11/93

19      McHenry   63.6915    02/23/90      490,158       29,158      519,316          7,933         -         527,249       -

20       Kane    224.1480    02/28/90    2,749,800      183,092    2,932,892        431,314        3,651    3,360,555       -
                   (.2790)   10/17/91

21      Kendall  172.4950    03/08/90    1,327,459       75,822    1,403,281      1,022,141    2,425,422         -        88,222
                  (1.7968)   03/27/98
                (170.6982)   Var 1998

22      McHenry  254.5250    04/11/90    2,608,881      136,559    2,745,440         32,840         -       2,778,280       -

23      Kendall  140.0210    05/08/90    1,480,000      116,240    1,596,240        602,693    1,196,909    1,002,024       -
                  (4.4100)   Var 1993
                 (35.8800)   Var 1994
                  (3.4400)   Var 1995

24      Kendall  298.4830    05/23/90    1,359,774       98,921    1,458,695         19,194       83,663    1,394,226       -
                 (12.4570)   05/25/90
                  (4.6290)   04/01/96

25       Kane    225.0000    06/01/90    2,600,000      168,778    2,768,778         13,465         -       2,782,243       -
                                       ------------ ------------ ------------ -------------- ------------ ------------ ----------
                                       $23,624,761    1,562,308   25,187,069     10,243,863   14,562,645   20,868,287    309,195
                                       ============ ============ ============ ============== ============ ============ ==========

</TABLE>











                                                                   -12-

                                     -12-



                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


(3) Investments in Land and Improvements (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 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) and distributions to the Partners.

(c) Reconciliation of investments in land and improvements owned:

                                          1998               1997
                                      ------------       ------------
    Balance at January 1,............ $25,848,790         28,676,326
    Additions during period..........     513,445          3,018,999
    Sales during period..............  (5,493,948)        (5,846,535)
                                      ------------       ------------
    Balance at end of period......... $20,868,287         25,848,790
                                      ============       ============


(4) Farm 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 September 30, 1998, the Partnership had farm leases of generally one year
in duration, for approximately  2,070  acres  of  the approximately 2,302 acres
owned.











                                     -13-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


(5)  Mortgage Loans Receivable

As a result of the sale of the remaining approximately 81 acres of Parcel 1 for
a sales price of $5,750,000  on  December  29,  1997, the purchaser assumed the
note payable  to  an  Affiliate  on  this  parcel  totaling  $3,325,515 and the
interest  payable  to  the  Affiliate  of  $254,396.  The  Partnership received
mortgage loans receivable totaling $2,170,089  and  recorded a deferred gain on
sale of $106,905. The deferred  gain  will  be  recognized over the life of the
related mortgage loans receivable as  principal payments are received, of which
$36,604 has  been  recognized  as  of  September  30,  1998.  Of the $2,170,089
mortgage loans receivable received, $575,000  accrues  interest at 9% per annum
and has a maturity date of July 1, 1998, at which time all accrued interest, as
well as principal, is due. On  June  19, 1998, this mortgage loan receivable of
$575,000  was  paid  in  full  and  the  Partnership  received  $599,528  which
represented the loan  balance  and  accrued  interest. The remaining $1,595,089
accrues interest at 9% per annum and  has a maturity date of December 30, 2000,
at which time  all  accrued  interest,  as  well  as  principal,  is due. As of
September  30,  1998,  the  remaining  mortgage  loan  receivable  balance  was
$1,427,057 and accrued interest totaled $14,075.

As a result of the sale of Lot #7 of Parcel #15 for a sales price of $89,100 on
June 9, 1998, the Partnership received  net  sales proceeds of $490, a mortgage
loan receivable of $88,101 and recorded a deferred gain on sale of $56,426. The
deferred gain will be recognized  over  the  life  of the related mortgage loan
receivable as principal payments are received, of which $10 has been recognized
as of September 30, 1998. The  mortgage  loan receivable accrues interest at 9%
per annum, paid monthly, and  has  a  maturity  date  of  July  1, 2001.  As of
September 30, 1998, the remaining mortgage loan receivable balance was $88,086.

As a result of the sale of Lot #9 of Parcel #15 for a sales price of $92,691 on
June 11, 1998,  the  Partnership  received  net  sales  proceeds  of $62,173, a
mortgage loan receivable of $30,000  and  recorded  a  deferred gain on sale of
$18,514. The deferred gain  will  be  recognized  over  the life of the related
mortgage loan receivable as  principal  payments  are received, of which $2,350
has been recognized as  of  September  30,  1998.  The mortgage loan receivable
accrues interest at 9% per  annum,  paid  monthly,  and  has a maturity date of
October 1, 1999.    As  of  September  30,  1998,  the  remaining mortgage loan
receivable balance was $26,192.










                                     -14-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


As a result of the sale of  the  remaining approximately 126 acres of Parcel 21
for a sales price of  $2,900,000  on  June  25, 1998, the purchaser assumed the
note payable to an Affiliate on  this parcel totaling $394,623 and the interest
payable to the Affiliate  of  $55,926.  The Partnership received mortgage loans
receivable  totaling  $2,449,451  and  recorded  a  deferred  gain  on  sale of
$653,933. The deferred gain will  be  recognized  over  the life of the related
mortgage loans receivable as principal payments are received. Of the $2,449,451
mortgage loans receivable received,  $1,651,000 (originally $1,983,000) accrues
interest at 9% per annum and has a maturity date of November 16, 1998 (extended
from September 30, 1998), at  which  time  all  principal is due. The remaining
$791,451 (originally $466,451)  accrues  interest  at  9%  per  annum and has a
maturity date of June 30, 2003, at  which time all accrued interest, as well as
principal, is due. As of September 30, 1998, accrued interest totaled $59,189.

As a result of the sale  of  the  remaining approximately 50 acres of Parcel 15
for a sales price  of  $1,850,000  on  June  25, 1998, the Partnership received
mortgage loans receivable totaling $1,850,000  and  recorded a deferred gain on
sale of $80,130. The deferred  gain  will  be  recognized  over the life of the
related mortgage loans receivable  as  principal  payments are received. Of the
$1,850,000 mortgage loans receivable  received,  $1,152,749 accrues interest at
9% per annum and  has  a  maturity  date  of  November  16, 1998 (extended from
September 30, 1998), at which time all principal is due. The remaining $697,251
accrues interest at 9% per annum and  has  a maturity date of June 30, 2002, at
which time all accrued interest, as well  as principal, is due. As of September
30, 1998, accrued interest totaled $44,704.

As a result of the sale  of  approximately  31  acres  of Parcel 16 for a sales
price of $1,890,000  on  July  10,  1998,  the  Partnership  received net sales
proceeds of $137,740, a mortgage  loan  receivable of $1,362,149 and recorded a
deferred gain on sale of  $640,135.  The  deferred gain will be recognized over
the life of the  related  mortgage  loan  receivable  as principal payments are
received.  The mortgage loan receivable  accrues interest at 9.5% per annum and
has a maturity date of July  1,  1999,  at  which time all accrued interest, as
well as principal, is due. 














                                     -15-


                      INLAND LAND APPRECIATION FUND, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1998
                                  (unaudited)


(6)  Notes Payable to Affiliate

On May 1, 1996, the  Partnership  obtained  a  line  of credit from the General
Partner, Inland Real Estate Investment  Corporation, in the aggregate amount of
$1,000,000 to be  used  specifically  for  the  pre-development improvements on
Parcel 15. The Partnership is  required  to  pay  a  1% loan fee to the General
Partner as money is funded. The note  accrues interest at 10.9%, and required a
principal paydown of $150,000  on  October  1,  1996,  and thereafter Net Sales
Proceeds from Parcel 15 are being applied  first to paydown the note. This note
had an original maturity date of May  1, 1997, but had been extended to January
1, 1999 at the same interest rate. On May 27, 1998, this note was paid off. For
the nine months ended  September  30,  1998  and  1997,  interest of $7,544 and
$28,690, respectively, was capitalized, of  which  $0 and $20,292 was unpaid as
of September 30, 1998 and December  31, 1997, respectively. For the nine months
ended September 30, 1998, loan  fees  incurred  and paid to the General Partner
totaled $324 and are included in investment in land and improvements.

On May 12, 1997, the  Partnership  obtained  a  line of credit from the General
Partner, Inland Real Estate Investment  Corporation, in the aggregate amount of
$744,000 to be used specifically for the pre-development improvements on Parcel
21. The note accrues interest  at  9.625%  and  has  a maturity date of May 12,
1998. Interest-only payments on this note are due quarterly and the loan may be
prepaid at any time without penalty. On June 25, 1998, this note was assumed by
the purchaser  of  Parcel  21.  The  balance  of  this  note  at assumption was
$394,623. For the nine months ended September 30, 1998, interest of $26,756 was
capitalized, of which $0 and $29,170  was  unpaid  as of September 30, 1998 and
December 31, 1997, respectively.

As of September 30, 1998,  Inland  Real  Estate Investment Corporation has made
loans to the  Partnership  totaling  $2,670,400.    Net sales proceeds totaling
$1,849,815 from Parcels 1, 4, 12,  15,  20, 23, and 24 were previously retained
and used to fund pre-development activity  on certain of the Partnership's land
investments. In July 1997, the Partnership replenished these net sales proceeds
by obtaining a loan from the General Partner.  The remainder of funds loaned to
the Partnership were for Partnership operations.   The note accrues interest at
10% per annum and has a maturity date  of January 1, 1999.  For the nine months
ended September  30,  1998,  interest  of  $196,119  was  capitalized, of which
$277,055 and $134,850 was  unpaid  as  of  September  30, 1998 and December 31,
1997, respectively.









                                     -16-


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 of "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  the  Partnership's  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,  federal,  state  or local regulations;
adverse changes in general economic  or local conditions; inability of borrower
to meet financial  obligations;  uninsured  losses;  and potential conflicts of
interest between the  Partnership  and  its  Affiliates,  including the General
Partner.

Liquidity and Capital Resources

On October 12, 1988, the  Partnership  commenced an Offering of 10,000 (subject
to increase to 30,000)  Limited  Partnership  Units  pursuant to a Registration
Statement on Form S-11 under the Securities  Act  of 1933.  On October 6, 1989,
the Offering terminated with a  total  of  30,000  Units  sold to the public at
$1,000 per Unit resulting in $30,000,000 in gross offering proceeds, which does
not include the Initial Limited Partner and  the  General Partner.   All of the
holders of these Units  have  been  admitted  to  the Partnership.  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.

The Partnership 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.  As
of September 30, 1998,  the  Partnership  has  had multiple sales transactions,
through which it has disposed  of  approximately 800 acres of the approximately
3,102  acres  originally  owned.     As   of  September  30,  1998,  cumulative
distributions to the Limited Partners have totaled $5,996,219 (which represents
a return of Invested  Capital,  as  defined  in  the Partnership Agreement) and
$153,743 to the General Partner.    Through September 30, 1998, the Partnership
has  used  $10,243,863  of  working  capital  reserve  for  rezoning  and other
activities.  Such amounts have been capitalized and are included in investments
in land.

The Partnership's capital needs and resources will vary depending upon a number
of factors, including the extent to which the Partnership conducts 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 the Partnership's land, and the amount of revenue received from
leasing.  As of September 30, 1998,  the Partnership owns, in whole or in part,
nineteen of its twenty-five original parcels,  the majority of which are leased
to local farmers and are  generating  sufficient  cash flow from farm leases to
cover property taxes and insurance.




                                     -17-


At September  30,  1998,  the  Partnership  had  cash  and  cash equivalents of
$1,110,874, of which approximately  $46,140  is  reserved for the repurchase of
Units  through  the  Unit  Repurchase  Program.  The  remaining  $1,064,734  is
available to  be  used  for  the  Partnership  expenses  and  liabilities, cash
distributions to partners and other activities  with  respect to some or all of
its land parcels. The  Partnership  has  increased  its  parcel sales effort in
anticipation of rising land values.

Net sales proceeds totaling $1,849,826 from Parcels 1, 4, 12, 15, 20, 23 and 24
were previously retained and used  to  fund pre-development activity on certain
of  the  Partnership's  land   investments.   In  July  1997,  the  Partnership
replenished these net  sales  proceeds  by  obtaining  a  loan from the General
Partner.  This note accrues interest at  10% and will be repaid with future net
sales proceeds  as  parcels  are  sold.    On  July  7,  1997,  the Partnership
distributed these net  sales  proceeds  to  the  Limited  Partners resulting in
cumulative distributions of $5,996,219.

The Partnership plans to enhance the  value of its land through pre-development
activities such as rezoning annexation and  land planning.  The Partnership has
already been successful in, or is in the process of pre-development activity on
a majority of the  Partnership's  land  investments.  Parcels  4,  6 and 7 have
completed one phase of improvements for  an industrial park and sites are being
marketed. Parcels 16, 21  and  23  have  been  zoned with development and sales
marketing underway.  The Partnership sold  the remaining acres of Parcels 1, 15
and 21 to unaffiliated  third-parties  (see  Note  3  of the Notes to Financial
Statements.)

Results of Operations

As of September  30,  1998,  the  Partnership  owned  nineteen  parcels of land
consisting  of  approximately   2,302   acres.   Of   the  2,302  acres  owned,
approximately 2,070 acres are  tillable,  leased  to local farmers and generate
sufficient cash flow to cover property taxes, insurance and other miscellaneous
expenses.  Land sales income and  cost  of  land sold for the nine months ended
September 30, 1998 is a result of  the sale of the remaining acreage of Parcels
15 and 21 and the sale of approximately  31 acres of Parcel 16. The decrease in
rental income for  the  three  and  nine  months  ended  September 30, 1998, as
compared to the three and nine months  ended  September 30, 1997, is due to the
decrease in tillable acres due  to  land  sales and pre-development activity on
the Partnership's land investments.  This  decrease  is partially offset by the
annual increase in lease amounts from tenants.

Interest income increased for  the  three  and  nine months ended September 30,
1998, as compared to the three  and  nine  months ended September 30, 1997, due
primarily as a result of    the  interest  income  earned on the mortgage loans
receivable the Partnership received from the  sales of the remaining acreage of
Parcels 1, 15 and 21 and the  sale  of approximately 31 acres of Parcel 16. See
Note 5 of the Notes to Financial Statements for further discussion of the terms
of the mortgage loans receivable received from these sales.

Professional services to non-affiliates decreased for the three and nine months
ended September 30,  1998,  as  compared  to  the  three  and nine months ended
September 30, 1997, due to an decrease in outside legal services.





                                     -18-


General and administrative expenses to  Affiliates  decreased for the three and
nine months ended September 30, 1998, as  compared to the three and nine months
ended September 30, 1997,  due  to  decreases  in  postage and investor service
expenses. General and administrative  expenses  to non-affiliates decreased for
the three and  nine months ended  September  30, 1998, as compared to the three
and nine months ended  September  30,  1997,  due  to decreases in printing and
state tax expenses.

Marketing expenses to Affiliates decreased for  the three and nine months ended
September 30, 1998, as compared  to  the  three and nine months ended September
30, 1997, due to  the  identification  of  such  costs  which are specific to a
particular parcel, and accordingly, have  been  capitalized and are included in
investments in land.  Marketing  expenses  to  non-affiliates decreased for the
three and nine months ended September  30,  1998,  as compared to the three and
nine months ended September  30,  1997,  due  to  a decrease in advertising and
travel  expenses  relating  to  marketing  the  land  portfolio  to prospective
purchasers.

Land operating expenses to Affiliates  decreased  for the three and nine months
ended September 30,  1998,  as  compared  to  the  three  and nine months ended
September 30, 1997, due to a  decrease in Asset Management Fees incurred. Asset
Management Fees  are  limited  to  a  cumulative  total  over  the  life of the
Partnership of 2%  of  the  land's  original  cost.  As  of  June 30, 1998, the
Partnership had  met  this  limit.  Land  operating  expenses to non-affiliates
increased for the three and nine  months  ended September 30, 1998, as compared
to the three and nine months  ended  September  30, 1997, due to an increase in
real  estate  taxes  and   maintenance   expenses  of  the  Partnership's  land
investments.


Year 2000 Issues

GENERAL

Many computer operating systems  and  software  applications were designed such
that the year 1999 is the  maximum  date  that can be processed accurately.  In
conducting business, the Partnership relies  on computers and operating systems
provided by equipment manufacturers, and also on application software developed
internally and,  to  a  limited  extent,  by  outside  software  vendors.   The
Partnership has assessed its  vulnerability  to the so-called "Year-2000 Issue"
with respect to its equipment and computer systems.

















                                     -19-


STATE OF READINESS

The  Partnership  has  identified  the  following  two  areas  for  "Year-2000"
compliance efforts:

Business  Computer  Systems:  The  majority  of  the  Partnership's information
technology systems  were  developed  internally  and  include accounting, lease
management, investment portfolio  tracking,  and  tax  return preparation.  The
Partnership has rights to the  source  code  for these applications and employs
programmers who are  knowledgeable  regarding  these  systems.   The process of
testing these internal  systems  to  determine  year  2000 compliance is nearly
complete.  The Partnership does  not  anticipate any material costs relating to
its  business  computer  systems  regarding  year  2000  compliance  since  the
Partnership's  critical  hardware  and  software  systems  use  four  digits to
represent the applicable year.  The Partnership does use various computers, so-
called "PC's", that may run software that  may not use four digits to represent
the applicable year.  The  Partnership  is  in  the  process  of testing the PC
hardware and software to determine year  2000  compliance, but it must be noted
that such PC's  are  incidental  to  the  Partnership's  critical systems.  The
Partnership is considering independent testing of its critical systems.

Tenants and Suppliers: The Partnership is  in the process of surveying tenants,
suppliers and other parties with whom the Partnership does a significant amount
of business to identify the Partnership's  potential exposure in the event such
parties are not  year  2000  compliant  in  a  timely  manner.  Since this area
involves some parties over which the Partnership has no control, such as public
utility companies, it is difficult, at best, to judge the status of the outside
companies' year 2000 compliance.  The  Partnership  is working closely with all
suppliers of goods and services  in  an  effort  to  minimize the impact of the
failure of any supplier to become year 2000 compliant by December 31, 1999. The
Partnership's investigations and assessments  of  possible year 2000 issues are
in a preliminary stage,  and  currently  the  Partnership  is  not aware of any
material impact on its business, operations  or financial condition due to year
2000 non-compliance by any of the Partnership's tenants or suppliers. 

YEAR 2000 COSTS

The Partnership's General Partner  and  its  Affiliates  estimate that costs to
achieve  year  2000  compliance   will   not   exceed  $50,000.  However,  only
approximately 1% of these costs will  be  directly allocated to and paid by the
Partnership. The balance of the  year 2000 compliance costs, approximately 99%,
will be paid by  the  General  Partner  and  its  Affiliates.   Total year 2000
compliance  costs  incurred  through  September   30,  1998  are  estimated  at
approximately $5,000.

YEAR 2000 RISKS

The most reasonable likely worst case scenario for the Partnership with respect
to the year 2000 non-compliance of  its  business computer systems would be the
inability to access information  which  could  result  in  the failure to issue
financial reports.  The  most  reasonable  likely  worst  case scenario for the
Partnership with respect to  the  year  2000  non-compliance  of its tenants is
failure to receive rental income  which  could  result in the Partnership being
unable to meet cash requirements for monthly expenses.




                                     -20-


CONTINGENCY PLAN

The Partnership is in the process  of formulating a contingency plan which will
be developed by July of 1999.



                          PART II - Other Information

Items 1 through 6(b) are  omitted  because  of  the absence of conditions under
which they are required.

Item 7.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         (27) Financial Data Schedule

     (b) Reports on Form 8-K:

         None





































                                     -21-





                                  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 Corporation
                                  General Partner


                                  /S/ ROBERT D. PARKS

                            By:   Robert D. Parks
                                  Chairman
                            Date: November 12, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: November 12, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: November 12, 1998




















                                     -22-