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 June 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

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

                                    Assets
                                    ------
                                                       1998          1997
Current assets:                                        ----          ----
  Cash and cash equivalents (Note 1).............. $   813,800        15,502
  Accounts and accrued interest receivable
    (Note 5)......................................     100,807         1,361
  Current portion of mortgage loans
    receivable (Note 5)...........................   3,135,749       575,000
  Other current assets............................       5,000         2,241
                                                   ------------  ------------
Total current assets..............................   4,055,356       594,104
                                                   ------------  ------------
Other assets......................................      19,915        19,915
Mortgage loans receivable, less current
  portion (Note 5)................................   2,876,892     1,595,089
Investments in land and improvements, at cost
  (including acquisition fees paid to Affiliates
  of $1,354,285 and $1,430,329 at June 30, 1998
  and December 31, 1997, respectively) (Notes 1,
  2 and 3)........................................  21,565,145    25,848,790
                                                   ------------  ------------
Total assets...................................... $28,517,308    28,057,898
                                                   ============  ============
























                See accompanying notes to financial statements.


                                      -2-


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

                                Balance Sheets
                                  (continued)

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

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

                                                       1998          1997
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    20,175        25,185
  Accrued real estate taxes.......................      40,676        47,889
  Due to Affiliates (Note 2)......................     651,041       595,655
  Notes payable to Affiliate (Note 6).............   2,670,400     3,283,471
  Unearned income.................................      21,213        19,278
                                                   ------------  ------------
Total current liabilities.........................   3,403,505     3,971,478

Deferred gain on sale (Note 5)....................     887,582       106,905

Partners' capital (Notes 1 and 2):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................     166,157       165,949
    Cumulative cash distributions.................    (153,743)     (153,743)
                                                   ------------  ------------
                                                        12,914        12,706
  Limited Partners:                                ------------  ------------
    Units of $1,000. Authorized 30,001 Units,
      29,629.25 Units outstanding (net of offering
      costs of $3,768,113, of which $1,069,764 was
      paid to Affiliates).........................  25,900,396    25,900,396
    Cumulative net income.........................   4,309,130     4,062,632
    Cumulative cash distributions.................  (5,996,219)   (5,996,219)
                                                   ------------  ------------
                                                    24,213,307    23,966,809
                                                   ------------  ------------
Total Partners' capital...........................  24,226,221    23,979,515
                                                   ------------  ------------
Total liabilities and Partners' capital........... $28,517,308    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 six months ended June 30, 1998 and 1997
                                  (unaudited)


                                       Three months            Six months
                                          ended                  ended
                                         June 30,               June 30,
                                         --------               --------
                                       1998       1997       1998       1997
Income:                                ----       ----       ----       ----
  Land sales (Notes 1 and 3)...... $4,704,272       -     4,932,752    301,557
  Rental income (Note 4)..........     60,583     63,423    120,015    121,786
  Interest income.................     55,296       -       105,059        148
  Other income....................     16,500      5,000     17,500      5,000
                                   ----------- ---------- ---------- ----------
                                    4,836,651     68,426  5,175,326    428,491
                                   ----------- ---------- ---------- ----------
Expenses:
  Cost of land sold...............  4,615,627       -     4,706,860     96,237
  Professional services to
    Affiliates....................     13,100      6,272     24,400     25,500
  Professional services to
    non-affiliates................      3,011     20,007     31,780     46,313
  General and administrative
    expenses to Affiliates........      1,320      7,047      9,222     15,483
  General and administrative
    expenses to non-affiliates....      8,086      5,039     11,996     15,718
  Marketing expenses to Affiliates      6,951     28,257     34,278     75,287
  Marketing expenses to
    non-affiliates................     19,217     32,819     26,646     61,044
  Land operating expenses to
    Affiliates....................     12,072     14,111     25,858     28,240
  Land operating expenses to
    non-affiliates................     37,390     13,697     57,580     27,221
                                   ----------- ---------- ---------- ----------
                                    4,716,774    127,249  4,928,620    391,043
                                   ----------- ---------- ---------- ----------
Net income (loss)................. $  119,877    (58,826)   246,706     37,448
                                   =========== ========== ========== ==========












                See accompanying notes to financial statements.


                                      -4-


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

                           Statements of Operations
                                  (continued)

           For the three and six months ended June 30, 1998 and 1997
                                  (unaudited)


                                       Three months            Six months
                                          ended                  ended
                                         June 30,               June 30,
                                         --------               --------
                                      1998        1997       1998       1997
                                      ----        ----       ----       ----
Net income (loss) allocated to:
  General Partner................. $      312       (589)       208     (1,679)
  Limited Partners................    119,565    (58,237)   246,498     39,127
                                   ----------- ---------- ---------- ----------
Net income (loss)................. $  119,877    (58,826)   246,706     37,448
                                   =========== ========== ========== ==========

Net income (loss) allocated to the
  one General Partner Unit........ $      312       (589)       208     (1,679)
                                   =========== ========== ========== ==========

Net income (loss) per Unit, basic
  and diluted, allocated to Limited
  Partners per weighted average
  Limited Partnership Units
  (29,629.24 and 29,639.13 for the
  three months ended June 30, 1998
  and 1997, and 29,629.24 and
  29,649.13 for the six months
  ended June 30, 1998 and 1997,
  respectively)................... $     4.04      (1.96)      8.32       1.32
                                   =========== ========== ========== ==========


















                See accompanying notes to financial statements.


                                      -5-


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

                           Statements of Cash Flows

                For the six months ended June 30, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
Cash flows from operating activities:                  ----          ----
  Net income...................................... $   246,706        37,448
  Adjustments to reconcile net income to net cash
      provided by (used in) operating activities:
    Gain on sale of land..........................    (225,892)     (205,320)
    Changes in assets and liabilities:
      Accounts and accrued interest receivable....     (99,446)      (23,233)
      Other current assets........................      (2,759)       (2,013)
      Accounts payable............................      (5,010)      152,878
      Accrued real estate taxes..................       (7,213)       (1,526)
      Due to Affiliates...........................      55,386       283,094
      Unearned income.............................       1,935       (13,074)
      Deferred gain on sale.......................     (28,326)         -
Net cash provided by (used in) operating           ------------  ------------
  activities......................................     (64,619)      228,254
                                                   ------------  ------------
Cash flows from investing activities:
  Additions to investments in land and
    improvements..................................    (423,215)   (1,206,094)
  Principal payments collected on mortgage
    loans receivable..............................     575,000          -
  Proceeds from disposition of investments in
    land and improvements.........................     929,580       301,557
Net cash provided by (used in) investing           ------------  ------------
  activities......................................   1,081,365      (904,537)
                                                   ------------  ------------
Cash flows from financing activities:
  Repurchase of Limited Partnership Units.........        -          (25,847)
  Proceeds from notes payable to Affiliate, net...    (218,448)      616,908
  Cash distributions..............................        -             (137)
Net cash provided by (used in) financing           ------------  ------------
  activities......................................    (218,448)      590,924
Net increase (decrease) in cash and cash           ------------  ------------
  equivalents.....................................     798,298       (85,359)
Cash and cash equivalents at beginning of period..      15,502        89,672
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $   813,800         4,313
                                                   ============  ============







                See accompanying notes to financial statements.


                                      -6-


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

                           Statements of Cash Flows
                                  (continued)

                For the six months ended June 30, 1998 and 1997
                                  (unaudited)



Supplemental schedule of non-cash investing and financing activities:

                                                       1998          1997
                                                       ----          ----
Mortgage loans receivable......................... $(4,417,552)         -
Reduction in investments in land and improvements    4,706,860          -
Gain on sale of land..............................     225,892          -
Assumption of note payable to Affiliate...........    (394,623)         -
Deferred gain on sale.............................     809,003          -
Proceeds from disposition of investments in land   ------------  ------------
  and improvements................................ $   929,580          -
                                                   ============  ============

































                See accompanying notes to financial statements.


                                      -7-


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

                         Notes to Financial Statements

                                 June 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 June 30, 1998, the
Partnership has repurchased a total  of  371.75 Units for $332,490 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)

                                 June 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
June 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)

                                 June 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 $115,696 and $90,278 were  unpaid  as  of  June 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.    Such fees of $25,858 and
$28,240 have been incurred for  the  six  months  ended June 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  June  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 $34,278 and $75,287
have been incurred and are included in marketing expenses to Affiliates for the
six months ended June 30,  1998  and  1997, respectively, of which $123,715 and
$151,908 were unpaid as of June 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 $120,748 and $113,878 were unpaid  as  of  June 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       Cumulative   Remaining     Current
                   Acres     Purchase/ --------------------------------------  Capitalized     Costs of     Costs of    Year Gain
Parcel Location: Purchased    Sales      Original   Acquisition     Total     Subsequent to    Property    Parcels at    On Sale
  #      County   /(Sold)      Date        Costs       Costs        Costs      Acquisition      Sold        6/30/98     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          -         28,326
                   (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         21,552      611,505       155,061        -
                 (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         57,781      235,275       368,828        -
                    (.4860)  02/28/91
                  (27.5750)  08/25/95

 5      Kendall   372.2230   05/03/89    2,532,227      135,943    2,668,170         26,301      160,313     2,534,158        -
        (a)        (Option)  04/06/90  

 6      Kendall    78.3900   06/21/89      416,783       31,691      448,474        195,461         -          643,935        -
        (b)
 7      Kendall    77.0490   06/21/89       84,754        8,163       92,917        180,718         -          273,635        -
        (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          1,906         -          611,233        -
        (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          6,305         -          350,162        -
        (b)
12      Kendall    90.2710   10/31/89      907,389       41,908      949,297          1,047        7,456       942,888        -
                    (.7090)  04/26/91

13      McHenry    92.7800   11/07/89      251,306       19,188      270,494          4,118        6,136       268,476        -
                   (2.0810)  09/18/97

14      McHenry    76.2020   11/07/89      419,111       23,402      442,513         43,483         -          485,996        -

15       Lake      84.5564   01/03/90    1,056,955       85,283    1,142,238      1,576,806    2,719,044          -        109,344
                  (10.5300)  Var 1996
                   (5.4680)  Var 1997
                  (68.5584)  Var 1998  ------------ ------------ ------------ -------------- ------------ ------------ ------------

        Subtotal                       $ 8,499,401      611,108    9,110,509      7,578,667   10,054,804     6,634,372     137,670


                                                                   -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       Cumulative   Remaining     Current
                   Acres     Purchase/ --------------------------------------  Capitalized     Costs of     Costs of    Year Gain
Parcel Location: Purchased    Sales      Original   Acquisition     Total     Subsequent to    Property    Parcels at    On Sale
  #      County   /(Sold)      Date        Costs       Costs        Costs      Acquisition      Sold        6/30/98     Recognized
------ --------- ---------  ---------- ------------ ------------ ------------ -------------- ------------ ------------ ------------
 <S>   <C>       <C>        <C>         <C>            <C>        <C>            <C>            <C>         <C>            <C>

       Subtotal                        $ 8,499,401      611,108    9,110,509      7,578,667   10,054,804    6,634,372    137,670

16  Kane/Kendall  72.4187    01/29/90    1,273,537       55,333    1,328,870        144,592         -       1,473,462       -

17      McHenry   99.9240    01/29/90      739,635       61,038      800,673        326,369         -       1,127,042       -

18      McHenry   71.4870    01/29/90      496,116       26,259      522,375         20,484       11,109      531,750       -
                  (1.0000)   Var 1990
                   (.5200)   03/11/93

19      McHenry   63.6915    02/23/90      490,158       29,158      519,316          7,844         -         527,160       -

20       Kane    224.1480    02/28/90    2,749,800      183,092    2,932,892        393,912        3,651    3,323,153       -
                   (.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         31,966         -       2,777,406       -

23      Kendall  140.0210    05/08/90    1,480,000      116,240    1,596,240        595,076    1,196,909      994,407       -
                  (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         19,121       83,663    1,394,153       -
                 (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         13,462         -       2,782,240       -
                                       ------------ ------------ ------------ -------------- ------------ ------------ ----------
                                       $23,624,761    1,562,308   25,187,069     10,153,634   13,775,558   21,565,145    225,892
                                       ============ ============ ============ ============== ============ ============ ==========


</TABLE>










                                                                   -12-

                                     -12-



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

                         Notes to Financial Statements
                                  (continued)

                                 June 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..........     423,215          3,018,999
    Sales during period..............  (4,706,860)        (5,846,535)
                                      ------------       ------------
    Balance at end of period......... $21,565,145         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 June 30, 1998, the Partnership  had  farm leases of generally one year in
duration, for approximately 2,070 acres of the approximately 2,333 acres owned.












                                     -13-


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

                         Notes to Financial Statements
                                  (continued)

                                 June 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 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 Partnership
subsequently recognized  $28,326  of  the  deferred  gain  as  a  result of the
prepayment of this mortgage  loan  receivable. 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 June 30, 1998,
accrued interest totaled $72,369.

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.  The mortgage loan receivable
accrues interest at 9% per annum, paid monthly, and has a maturity date of July
1, 2001.

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. The mortgage loan
receivable accrues interest at 9% per  annum,  paid monthly, and has a maturity
date of October 1, 1999.













                                     -14-


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

                         Notes to Financial Statements
                                  (continued)

                                 June 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, $1,983,000 accrues interest at 9% per annum
and has a maturity  date  of  September  30,  1998,  at  which time all accrued
interest, as well as principal, is due. The remaining $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 June 30, 1998, accrued
interest totaled $3,624.

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 September 30, 1998, at which time all
accrued interest, as well as 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 June 30, 1998,
accrued interest totaled $2,737.


(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 six months ended  June  30,  1998,  interest  of $7,544 was capitalized, of
which $0 and $20,292 was  unpaid  as  of  June  30, 1998 and December 31, 1997,
respectively. For the six months  ended  June  30, 1998, loan fees incurred and
paid to the General Partner totaled $324 and are included in investment in land
and improvements.





                                     -15-


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

                         Notes to Financial Statements
                                  (continued)

                                 June 30, 1998
                                  (unaudited)


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 six  months  ended  June  30,  1998,  interest of $26,756 was
capitalized, of which  $0  and  $29,170  was  unpaid  as  of  June 30, 1998 and
December 31, 1997, respectively.

As of June 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 six months ended
June 30, 1998, interest  of  $128,810  was  capitalized,  of which $209,746 and
$134,850 was unpaid as of June 30, 1998 and December 31, 1997, respectively.


(7)  Subsequent Events

On July 10, 1998, the Partnership  sold  approximately 31 acres of Parcel 16 to
an unaffiliated third  party  for  $1,890,000.  As  a  result  of the sale, the
Partnership received net sales proceeds of $137,740, a mortgage note receivable
of $1,362,149 and is  expected  to  record  a  gain  on  sale  of $72,666 and 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 note receivable  accrues  interest  at 9 1/2% per annum,
paid monthly, and has a maturity date of July 1, 1999.















                                     -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 June 30, 1998, the Partnership  has had multiple sales transactions, through
which it has disposed  of  approximately  769  acres of the approximately 3,102
acres originally owned.  As of  June  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  June  30,  1998,  the  Partnership  has  used $10,153,634 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 June  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 June 30, 1998, the Partnership had cash and cash equivalents of $813,800, of
which approximately $63,900 is reserved for the repurchase of Units through the
Unit Repurchase Program. The remaining $749,900 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 June 30, 1998, the  Partnership owned nineteen parcels of land consisting
of approximately 2,333 acres.  Of  the  2,333  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 six months ended June 30, 1998 is a
result of the sale of the remaining  acreage of Parcels 15 and 21. The decrease
in rental income for the three and  six months ended June 30, 1998, as compared
to the three and six months  ended  June  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  six months ended June 30, 1998, as
compared to the three and six  months  ended  June 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. 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 Affiliates increased  for  the three months ended June
30, 1998, as compared to the three months ended June 30, 1997, due primarily to
an  increase  in  legal  and   other  professional  services  required  by  the
Partnership.  Professional services  to  non-affiliates decreased for the three
and six months ended June 30,  1998,  as  compared  to the three and six months
ended June 30, 1997, due to an decrease in outside legal services.





                                     -18-


General and administrative expenses to  Affiliates  decreased for the three and
six months ended June 30, 1998, as  compared  to the three and six months ended
June 30, 1997,  due  to  decreases  in  postage,  data  processing and investor
service  expenses.  General  and   administrative  expenses  to  non-affiliates
decreased for the six months ended June 30, 1998, as compared to the six months
ended June 30, 1997, due primarily to a decrease in state tax expenses.

Marketing expenses to Affiliates decreased  for  the three and six months ended
June 30, 1998, as compared to the three and six months ended June 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 six months
ended June 30, 1998, as compared  to  the  three  and six months ended June 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 six months
ended June 30, 1998, as compared  to  the  three  and six months ended June 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 has met this
limit. Land operating expenses  to  non-affiliates  increased for the three and
six months ended June 30, 1998, as  compared  to the three and six months ended
June 30, 1997, due to an increase in real estate taxes and maintenance expenses
of the Partnership's land investments.




Year 2000 Compliance

The  Partnership  has  reviewed  its  current  computer  systems  and  does not
anticipate any future problems relating to the year 2000.



                          PART II - Other Information

Items 1 through 5 are  omitted  because  of  the absence of conditions under
which they are required.

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         (27) Financial Data Schedule

     (b) Reports on Form 8-K:

         None








                                     -19-





                                  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: August 11, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: August 11, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: August 11, 1998




















                                     -20-