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 March 31, 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

                     March 31, 1998 and December 31, 1997
                                  (unaudited)

                                    Assets
                                    ------

                                                       1998          1997
                                                       ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $     1,323        15,502
  Accounts and accrued interest receivable
    (Note 5)......................................      60,185         1,361
  Current portion of mortgage loans
    receivable (Note 5)...........................     575,000       575,000
  Other current assets............................       1,214         2,241
                                                   ------------  ------------
Total current assets..............................     637,722       594,104

Other assets......................................      19,915        19,915
Mortgage loans receivable, less current
  portion (Note 5)................................   1,595,089     1,595,089
Investments in land and improvements, at cost
  (including acquisition fees paid to Affiliates
  of $1,428,449 and $1,430,329 at March 31, 1998
  and December 31, 1997, respectively (Notes 1,
  2 and 3)........................................  26,055,926    25,848,790
                                                   ------------  ------------
Total assets...................................... $28,308,652    28,057,898
                                                   ============  ============





















                See accompanying notes to financial statements.


                                      -2-



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

                                Balance Sheets
                                  (continued)

                     March 31, 1998 and December 31, 1997
                                  (unaudited)

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

                                                       1998          1997
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    16,976        25,185
  Accrued real estate taxes.......................      59,153        47,889
  Due to Affiliates (Note 2)......................     649,830       595,655
  Notes payable to Affiliate (Note 6).............   3,328,304     3,283,471
  Unearned income.................................      41,140        19,278
                                                   ------------  ------------
Total current liabilities.........................   4,095,403     3,971,478

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

Partners' capital (Notes 1 and 2):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................     165,845       165,949
    Cumulative cash distributions.................    (153,743)     (153,743)
                                                   ------------  ------------
                                                        12,602        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.........................   4,189,565     4,062,632
    Cumulative cash distributions.................  (5,996,219)   (5,996,219)
                                                   ------------  ------------
                                                    24,093,742    23,966,809
                                                   ------------  ------------
Total Partners' capital...........................  24,106,344    23,979,515
                                                   ------------  ------------
Total liabilities and Partners' capital........... $28,308,652    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 months ended March 31, 1998 and 1997
                                  (unaudited)

                                                       1998          1997
Income:                                                ----          ----
  Land sales (Notes 1 and 3)...................... $   228,480       301,557
  Rental income (Note 4)..........................      59,432        58,363
  Interest income.................................      49,763           148
  Other income....................................       1,000          -
                                                   ------------  ------------
                                                       338,675       360,068
                                                   ------------  ------------
Expenses:
  Cost of land sold...............................      91,233        96,237
  Professional services to Affiliates.............      11,300        19,228
  Professional services to non-affiliates.........      28,769        26,306
  General and administrative expenses to
    Affiliates....................................       7,902         8,436
  General and administrative expenses to
    non-affiliates................................       3,910        10,679
  Marketing expenses to Affiliates................      27,327        47,030
  Marketing expenses to non-affiliates............       7,429        28,225
  Land operating expenses to Affiliates...........      13,786        14,129
  Land operating expenses to non-affiliates.......      20,190        13,524
                                                   ------------  ------------
                                                       211,846       263,794
                                                   ------------  ------------
Net income........................................ $   126,829        96,274
                                                   ============  ============

Net income (loss) allocated to:
  General Partner.................................        (104)       (1,090)
  Limited Partners................................     126,933        97,364
                                                   ------------  ------------
Net income........................................ $   126,829        96,274
                                                   ============  ============

Net loss allocated to the one General
  Partner Unit.................................... $      (104)       (1,090)
                                                   ============  ============

Net income per Unit, basic and diluted, allocated
  to Limited Partners per weighted average Limited
  Partner Units (29,629.24 and 29,659.24 for the
  three months ended March 31, 1998 and 1997,
  respectively)................................... $      4.28          3.28
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -4-



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

                           Statements of Cash Flows

              For the three months ended March 31, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
Cash flows from operating activities:                  ----          ----
  Net income...................................... $   126,829        96,274
  Adjustments to reconcile net income to net cash
      provided by operating activities:
    Gain on sale of land..........................    (137,247)     (205,320)
    Changes in assets and liabilities:
      Accounts and accrued interest receivable....     (58,824)      (11,233)
      Other current assets........................       1,027         1,143
      Accounts payable............................      (8,209)       45,028
      Accrued real estate taxes..................       11,264        12,158
      Due to Affiliates...........................      54,175       134,730
      Unearned income.............................      21,862        16,997
                                                   ------------  ------------
Net cash provided by operating activities.........      10,877        89,777
                                                   ------------  ------------
Cash flows from investing activities:
  Additions to investments in land
    and improvements..............................    (298,370)     (632,933)
  Proceeds from disposition of investments in
    land and improvements.........................     228,481       301,557
                                                   ------------  ------------
Net cash used in investing activities.............     (69,889)     (331,376)
                                                   ------------  ------------
Cash flows from financing activities:
  Cash distributions..............................        -             (111)
  Proceeds from notes payable to Affiliate, net...      44,833       153,029
                                                   ------------  ------------
Net cash provided by financing activities.........      44,833       152,918
                                                   ------------  ------------
Net decrease in cash and cash equivalents.........     (14,179)      (88,681)
Cash and cash equivalents at beginning of period..      15,502        89,672
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $     1,323           991
                                                   ============  ============










                See accompanying notes to financial statements.


                                      -5-



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

                         Notes to Financial Statements

                                March 31, 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 March 31, 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.










                                      -6-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 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
March 31, 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.











                                      -7-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 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 $103,876 and $90,278 were unpaid  as  of  March 31, 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 $13,786 and
$14,129 have been incurred for the three  months ended March 31, 1998 and 1997,
respectively, and are included  in  land  operating  expenses to Affiliates, of
which $69,065 and $55,279 were  unpaid  as  of  March 31, 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 $27,327 and $47,030
have been incurred and are included in marketing expenses to Affiliates for the
three months ended March 31, 1998 and 1997, respectively, of which $116,769 and
$151,908 were unpaid as of March 31, 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 $118,436 and $113,878 were unpaid  as  of March 30, 1998 and December 31,
1997, respectively.















                                      -8-



<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        3/31/98    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          -           -
                   (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         21,538      611,505       155,047        -
                 (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         54,301      235,275       365,348        -
                    (.4860)  02/28/91
                  (27.5750)  08/25/95

 5      Kendall   372.2230   05/03/89    2,532,227      135,943    2,668,170         26,288      160,313     2,534,145        -
        (a)        (Option)  04/06/90  

 6      Kendall    78.3900   06/21/89      416,783       31,691      448,474        192,110         -          640,584        -
        (b)
 7      Kendall    77.0490   06/21/89       84,754        8,163       92,917        177,281         -          270,198        -
        (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          1,893         -          611,220        -
        (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          6,292         -          350,149        -
        (b)
12      Kendall    90.2710   10/31/89      907,389       41,908      949,297          1,034        7,456       942,875        -
                    (.7090)  04/26/91

13      McHenry    92.7800   11/07/89      251,306       19,188      270,494          4,105        6,136       268,463        -
                   (2.0810)  09/18/97

14      McHenry    76.2020   11/07/89      419,111       23,402      442,513         43,470         -          485,983        -

15       Lake      84.5564   01/03/90    1,056,955       85,283    1,142,238      1,622,125      505,330     2,259,033     125,032
                  (10.5300)  Var 1996
                   (5.4680)  Var 1997
                   (1.0960)  Var 1998                                                                                  
                                       ------------ ------------ ------------ -------------- ------------ ------------ ------------
        Subtotal                       $ 8,499,401      611,108    9,110,509      7,613,626    7,841,090     8,883,045     125,032




                                      -9-



                                                    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        3/31/98    Recognized
------ --------- ---------- ---------- ------------ ------------ ------------ -------------- ------------ ------------ ------------

       Subtotal                        $ 8,499,401      611,108    9,110,509      7,613,626    7,841,090    8,883,045    125,032

16  Kane/Kendall  72.4187    01/29/90    1,273,537       55,333    1,328,870        121,955         -       1,450,825       -

17      McHenry   99.9240    01/29/90      739,635       61,038      800,673        315,469         -       1,116,142       -

18      McHenry   71.4870    01/29/90      496,116       26,259      522,375         20,442       11,109      531,708       -
                  (1.0000)   Var 1990
                   (.5200)   03/11/93

19      McHenry   63.6915    02/23/90      490,158       29,158      519,316          7,646         -         526,962       -

20       Kane    224.1480    02/28/90    2,749,800      183,092    2,932,892        365,985        3,651    3,295,226       -
                   (.2790)   10/17/91

21      Kendall  172.4950    03/08/90    1,327,459       75,822    1,403,281        934,735       23,509    2,314,507     12,215
                  (1.7968)   03/27/98

22      McHenry  254.5250    04/11/90    2,608,881      136,559    2,745,440         30,760         -       2,776,200       -

23      Kendall  140.0210    05/08/90    1,480,000      116,240    1,596,240        585,627    1,196,909      984,958       -
                  (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         19,093       83,663    1,394,125       -
                 (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         13,450         -       2,782,228       -
                                       ------------ ------------ ------------ -------------- ------------ ------------ ----------
                                       $23,624,761    1,562,308   25,187,069     10,028,788    9,159,931   26,055,926    137,247
                                       ============ ============ ============ ============== ============ ============ ==========


</TABLE>











                                     -10-




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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 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..........     298,370          3,018,999
    Sales during period..............     (91,234)        (5,846,535)
                                      ------------       ------------
    Balance at end of period......... $26,055,926         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 March 31, 1998, the Partnership  had farm leases of generally one year in
duration, for approximately 2,070 acres of the approximately 2,572 acres owned.











                                     -11-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 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 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 loan 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.  As of March 31, 1998, accrued interest
totaled $13,186. 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  March 31, 1998, accrued interest totaled
$36,578.


(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.  As  of  March 31, 1998, the balance of this
note was $152,293. For  the  three  months  ended  March  31, 1998, interest of
$5,315 was capitalized, of which $335  and  $20,292  was unpaid as of March 31,
1998 and December 31, 1997, respectively.  For the three months ended March 31,
1998, loan fees incurred and paid  to  the General Partner totaled $324 and are
included in investment in land and improvements.













                                     -12-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 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. As  of March 31, 1998, the balance of this
note was $565,611. For  the  three  months  ended  March  31, 1998, interest of
$14,421 was capitalized, of which  $43,591  and  $29,170 was unpaid as of March
31, 1998 and December 31, 1997, respectively.

As of March 31, 1998, Inland  Real Estate Investment Corporation has made loans
to the Partnership totaling $2,610,400.  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 three months
ended March 31, 1998, interest  of  $62,907  was capitalized, of which $197,758
and  $134,850  was  unpaid  as  of  March  31,  1998  and  December  31,  1997,
respectively.


























                                     -13-



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 March 31, 1998, the Partnership has had multiple sales transactions, through
which it has disposed  of  approximately  530  acres of the approximately 3,102
acres originally owned.  As of  March 31, 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  March  31,  1998,  the  Partnership  has used $10,028,788 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 March  31,  1998,  the  Partnership  owns, in whole or in part,
twenty-one 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.




                                     -14-



At March 31, 1998, the  Partnership  had  cash  and cash equivalents of $1,323.
The  Unit  Repurchase  Program  has  approximately  $63,100  allocated  for the
repurchase of Units. There are  currently  no  requests for repurchase, but the
Partnership plans to replenish cash  available  for this program through future
parcel sales.    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. Parcel 15, zoned and annexed  to  the Village of Hawthorn Woods, also
has improvements underway and  sites  are  being  marketed.  Of the total forty
lots, eleven lots  were  sold  to  individuals  during  1996  and  1997 and two
additional lots were sold to individuals  during  1998 (see Note 3 of the Notes
to Financial  Statements.)    Parcels  16,  21  and  23  have  been  zoned with
development and sales  marketing  underway.  Of  the  total  ninety-six lots at
Parcel 21, one  lots  was  sold  to  an  individual  during  March 1998 and two
additional lots were sold to individuals  during  April 1998 (see Note 3 of the
Notes to Financial  Statements.  The  Partnership  sold  the remaining acres of
Parcel 1 on December 29, 1997 to an unaffiliated third-party (see Note 3 of the
Notes to Financial Statements.)

Results of Operations

As of  March  31,  1998,  the  Partnership  owned  twenty-one  parcels  of land
consisting  of  approximately   2,572   acres.   Of   the  2,572  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 three months ended
March 31, 1998 is a result of the  sale of two additional lots of Parcel 15 and
the sale of one lot of Parcel  21.  The increase in rental income for the three
months ended March 31, 1998, as  compared  to  the three months ended March 31,
1997, is due to  the  annual  increase  in  lease  amounts  from tenants.  This
increase is partially offset by a decrease  in tillable acres due to land sales
and pre-development activity on the Partnership's land investments.

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 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. See Note
5 of the Notes to Financial  Statements  for further discussion of the terms of
the mortgage loans receivable received from this sale.


                                     -15-



Interest income  increased  for  the  three  months  ended  March  31, 1998, as
compared to the three months ended March 31, 1997, due primarily as a result of
the interest income earned  on  the  mortgage  loans receivable the Partnership
received from the sale of the  remaining  approximately 81 acres of Parcel 1 on
December 29, 1997. See Note 5 of  the Notes to Financial Statements for further
discussion of the terms  of  the  mortgage  loans receivable received from this
sale.

Professional services to Affiliates decreased  for the three months ended March
31, 1998, as compared to the  three  months ended March 31, 1997, due primarily
to a decrease in  legal  services  required  by  the Partnership.  Professional
services to non-affiliates increased for the three months ended March 31, 1998,
as compared to the three months  ended  March  31,  1997, due to an increase in
accounting fees.

General and  administrative  expenses  to  Affiliates  decreased  for the three
months ended March 31, 1998, as  compared  to  the three months ended March 31,
1997, due to decreases in postage  and data processing expenses.  This decrease
was partially offset by an increase in investor services expenses.  General and
administrative expenses to non-affiliates decreased  for the three months ended
March 31, 1998, as compared to  the  three  months ended March 31, 1997, due to
decreases in printing and state tax expenses.

Marketing expenses to Affiliates decreased for the three months ended March 31,
1998, as compared  to  the  three  months  ended  March  31,  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 months ended March
31, 1998, as compared  to  the  three  months  ended  March  31, 1997, due to a
decrease in advertising  and  travel  expenses  relating  to marketing the land
portfolio to prospective purchasers.

Land operating expenses to non-affiliates  increased for the three months ended
March 31, 1998, as compared to the three months ended March 31, 1997, due to an
increase in 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 6(b) are  omitted  because  of  the absence of conditions under
which they are required.








                                     -16-






                                  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: May 15, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: May 15, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: May 15, 1998



















                                     -17-