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


                                   FORM 10-Q




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


               For the Quarterly Period Ended September 30, 1997

                                      or

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

        For the transition period from                to               


                           Commission File #0-18431


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


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


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


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


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


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





                                      -1-


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

                                Balance Sheets

                   September 30, 1997 and December 31, 1996
                                  (unaudited)

                                    Assets
                                    ------

                                                       1997          1996
                                                       ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $    36,588        89,672
  Accounts and accrued interest receivable........      45,713          -
  Other current assets............................       3,292         2,330
                                                   ------------  ------------
    Total current assets..........................      85,593        92,002
                                                   ------------  ------------
Other assets......................................      19,915        19,915
Investments in land and improvements, at cost
  (including acquisition fees paid to Affiliates
  of $1,460,759 and $1,464,852 at September 30,
  1997 and December 31, 1996, respectively)
  (Notes 1, 2 and 3)..............................  30,389,570    28,676,326
                                                   ------------  ------------
Total assets...................................... $30,495,078    28,788,243
                                                   ============  ============



























                See accompanying notes to financial statements.


                                      -2-


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

                                Balance Sheets
                                  (continued)

                   September 30, 1997 and December 31, 1996
                                  (unaudited)

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

                                                       1997          1996
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    24,634        82,373
  Accrued real estate taxes.......................      35,808        48,117
  Due to Affiliates (Notes 2 and 5)...............     621,676       149,376
  Notes payable to Affiliate (Note 5).............   5,951,874     2,801,635
  Unearned income.................................        -           23,239
                                                   ------------  ------------
Total current liabilities.........................   6,633,992     3,104,740
                                                   ------------  ------------
Partners' capital (Notes 1 and 2):
  General Partner:
    Capital contribution..........................         500           500
    Cumulative net income.........................     165,414       167,675
    Cumulative cash distributions.................    (153,743)     (153,743)
                                                   ------------  ------------
                                                        12,171        14,432
  Limited Partners:                                ------------  ------------
    Units of $1,000. Authorized 30,001 Units,
      29,629.25 and 29,659.25 Units outstanding at
      September 30, 1997 and December 31, 1996,
      respectively (net of offering costs
      of $3,768,113, of which $1,069,764 was
      paid to Affiliates).........................  25,900,396    25,926,243
    Cumulative net income.........................   3,944,739     3,889,232
    Cumulative cash distributions.................  (5,996,220)   (4,146,404)
                                                   ------------  ------------
                                                    23,848,915    25,669,071
                                                   ------------  ------------
    Total Partners' capital.......................  23,861,086    25,683,503
                                                   ------------  ------------
Total liabilities and Partners' capital........... $30,495,078    28,788,243
                                                   ============  ============










                See accompanying notes to financial statements.


                                      -3-


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

                           Statements of Operations

        For the three and nine months ended September 30, 1997 and 1996
                                  (unaudited)


                                        Three months           Nine months
                                           ended                 ended
                                        September 30,         September 30,
                                        -------------         -------------
                                       1997       1996       1997       1996
Income:                                ----       ----       ----       ----
  Land sales (Notes 1 and 3)....... $ 116,517    159,624    418,074    218,741
  Rental income (Note 4)...........    60,033     82,944    181,819    175,841
  Interest income..................        61      1,738        209     10,235
  Other income.....................      -           149      5,000        179
                                    ---------- ---------- ---------- ----------
                                      176,611    244,455    605,102    404,996
                                    ---------- ---------- ---------- ----------
Expenses:
  Cost of land sold................    42,464    120,389    138,701    143,174
  Professional services to
    Affiliates.....................    11,800     13,149     37,300     26,713
  Professional services to
    non-affiliates.................       339        789     46,652     28,253
  General and administrative
    expenses to Affiliates.........     5,567     11,636     21,050     25,098
  General and administrative
    expenses to non-affiliates.....     2,724      2,852     18,442     13,649 
  Marketing expenses to Affiliates.    30,300     16,541    105,587     43,593
  Marketing expenses to
    non-affiliates.................    24,944      3,079     85,988     21,640
  Land operating expenses to
    Affiliates.....................    14,107     13,781     42,347     42,708
  Land operating expenses to
    non-affiliates.................    28,568     16,473     55,789     40,196
                                    ---------- ---------- ---------- ----------
                                      160,813    198,689    551,856    385,024
                                    ---------- ---------- ---------- ----------
  Net income....................... $  15,798     45,766     53,246     19,972
                                    ========== ========== ========== ==========












                See accompanying notes to financial statements.


                                      -4-


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

                           Statements of Operations
                                  (continued)

        For the three and nine months ended September 30, 1997 and 1996
                                  (unaudited)


                                        Three months           Nine months
                                           ended                 ended
                                        September 30,         September 30,
                                        -------------         -------------
                                       1997       1996       1997       1996
                                       ----       ----       ----       ----
Net income (loss) allocated to:
  General Partner.................. $    (582)        65     (2,261)      (556)
  Limited Partners.................    16,380     45,701     55,507     20,528
                                    ---------- ---------- ---------- ----------
Net income......................... $  15,798     45,766     53,246     19,972
                                    ========== ========== ========== ==========

Net income (loss) allocated to the
  one General Partner Unit......... $    (582)        65     (2,261)      (556)
                                    ========== ========== ========== ==========

Net income allocated to Limited
  Partners per weighted average
  Limited Partnership Units
  (29,629.24 and 29,712.61 for the
  three months ended September 30,
  1997 and 1996, and 29,642.43 and
  29,759.51 for the nine months
  ended September 30, 1997 and
  1996, respectively).............. $     .55       1.54       1.87        .69 
                                    ========== ========== ========== ==========



















                See accompanying notes to financial statements.


                                      -5-


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

                           Statements of Cash Flows

             For the nine months ended September 30, 1997 and 1996
                                  (unaudited)



                                                       1997          1996
Cash flows from operating activities:                  ----          ----
  Net income...................................... $    53,246        19,972
  Adjustments to reconcile net income to net
      cash provided by (used in) operating
      activities:
    Gain on sale of land..........................    (279,373)      (75,567)
    Changes in assets and liabilities:
      Accounts and accrued interest receivable....     (45,713)      (38,549)
      Other current assets........................        (962)       (1,576)
      Accounts payable............................     (57,739)      (58,635)
      Accrued real estate taxes..................      (12,309)      (11,766)
      Due to Affiliates...........................     472,300        75,920
      Unearned income.............................     (23,239)      (15,987)
Net cash provided by (used in) operating           ------------  ------------
  activities......................................     106,211      (106,188)
                                                   ------------  ------------
Cash flows from investing activities:
  Additions to investments in land................  (1,851,945)   (1,390,504) 
  Principal payments collected on mortgage
    loans receivable..............................        -           37,952
  Proceeds from disposition of land investments...     418,074       212,434
                                                   ------------  ------------
Net cash used in investing activities.............  (1,433,871)   (1,140,118)
                                                   ------------  ------------
Cash flows from financing activities:
  Cash distributions..............................  (1,849,816)         -
  Proceeds from notes payable to Affiliate, net...   3,150,239       752,158
  Repurchase of Limited Partnership Units.........     (25,847)      (74,949)
                                                   ------------  ------------
Net cash provided by financing activities.........   1,274,576       677,209
                                                   ------------  ------------
Net decrease in cash and cash equivalents........      (53,084)     (569,097)
Cash and cash equivalents at beginning of period..      89,672       626,942
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $    36,588         57,845
                                                   ============  ============









                See accompanying notes to financial statements.


                                      -6-


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

                         Notes to Financial Statements

                              September 30, 1997
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1996, which are
included  in  the  Partnership's  1996   Annual  Report,  as  certain  footnote
disclosures which would  duplicate  those  contained  in such audited financial
statements have been omitted from this Report.

(1)  Organization and Basis of Accounting

The Registrant, Inland Land  Appreciation  Fund,  L.P. (the "Partnership"), was
formed in  October  1987,  pursuant  to  the  Delaware  Revised Uniform Limited
Partnership Act, to invest in undeveloped land on an all-cash basis and realize
appreciation of such land  upon  resale.  On  October 12, 1988, the Partnership
commenced an  Offering  of  10,000  (subject  to  increase  to  30,000) Limited
Partnership Units ("Units") pursuant to  a  Registration Statement on Form S-11
under the Securities Act of 1933.  Inland Real Estate Investment Corporation is
the General Partner.  The  Offering  terminated  on October 6, 1989, with total
sales of 30,000 Units, at $1,000 per Unit, not including the General Partner or
the Initial Limited Partner.    All  of  the  holders  of these Units have been
admitted to this Partnership.  The Limited Partners of the Partnership share in
their portion of  benefits  of  ownership  of  the  Partnership's real property
investments according to the number of Units  held.   As of September 30, 1997,
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.











                                      -7-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1997
                                  (unaudited)


Statement of Financial Accounting Standards  No.  121 ("SFAS 121") requires the
Partnership to record  an  impairment  loss  on  its  property  to  be held for
investment whenever  its  carrying  value  cannot  be  fully  recovered through
estimated undiscounted future cash flows  from  their operations and sale.  The
amount of the impairment loss to  be recognized would be the difference between
the property's carrying value and the  property's  estimated fair value.  As of
September 30, 1997, 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.

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.


(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 $74,818 and $40,569 were unpaid as of September 30, 1997 and December 31,
1996, respectively.







                                      -8-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1997
                                  (unaudited)


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 $42,347 and
$42,708 have been incurred for  the  nine  months  ended September 30, 1997 and
1996, respectively, and are included  in land operating expenses to Affiliates,
of which $42,347 and $14,066 were unpaid  as of September 30, 1997 and December
31, 1996, respectively.

An Affiliate of the General  Partner  performed sales 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 $105,587 and
$43,593 have been incurred and are included in marketing expenses to Affiliates
for the nine months ended September  30,  1997 and 1996, respectively, of which
$135,307 and $30,091 were  unpaid  as  of  September  30, 1997 and December 31,
1996, 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 $72,365 and $58,347 were unpaid as of September 30, 1997 and December 31,
1996, respectively.
























                                      -9-


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

                                                     Notes to Financial Statements
                                                              (continued)

(3) Investments in Land and Improvements
<CAPTION>                                                                                                                   Total
                   Gross                           Initial Costs                 Costs                    Remaining     Current
                   Acres   Purchase/  --------------------------------------  Capitalized    Costs of      Costs of    Year Gain
       Location: Purchased   Sales       Original  Acquisition     Total     Subsequent to   Property     Parcels at    on Sale
Parcel  County    (Sold)     Date         Costs       Costs        Costs      Acquisition      Sold         9/30/97    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      4,517,504      280,587     4,722,222        -
                   (3.52)   12/24/96

 2       McHenry  223.4121  01/19/89     650,000       95,014      745,014         21,171      611,505       154,680        -
                 (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         37,687      235,275       348,734        -
                    (.4860) 02/28/91
                  (27.5750) 08/25/95

 5   Kendall (a)  372.2230  05/03/89   2,532,227      135,943    2,668,170         25,839      160,313     2,533,696        -
                   (Option) 04/06/90 

 6   Kendall (b)   78.3900  06/21/89     416,783       31,691      448,474        175,856         -          624,330        -

 7   Kendall (b)   77.0490  06/21/89      84,754        8,163       92,917        160,557         -          253,474        -

 8   Kendall (b)    5.0000  06/21/89      60,000        5,113       65,113           -          65,113          -           -
                   (5.0000) 10/06/89 

 9   McHenry (b)   51.0300  08/07/89     586,845       22,482      609,327            745         -          610,072        -

10   McHenry (b)  123.9400  08/07/89      91,939        7,224       99,163            600       99,763          -           -
                 (123.9400) 12/06/89

11   McHenry (b)   30.5920  08/07/89     321,216       22,641      343,857          5,539         -          349,396        -

12       Kendall   90.2710  10/31/89     907,389       41,908      949,297            529        7,456       942,370        -
                    (.7090) 04/26/91

13       McHenry   92.7800  11/07/89     251,306       19,188      270,494          3,092        6,136       267,450      19,674
                   (2.0810) 09/18/97

14       McHenry   76.2020  11/07/89     419,111       23,402      442,513         42,853         -          485,366        -

15          Lake   84.5564  01/03/90   1,056,955       85,283    1,142,238      1,437,389      397,079     2,182,548     259,699
                  (10.5300) Var 1996
                   (4.2780) Var 1997 ------------ ------------ ------------ --------------- ----------- ------------- -----------

      Subtotal                         8,499,401      611,108    9,110,509      6,429,361     2,065,532   13,474,338      279,373


                                     -10-



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

                                                           Notes to Financial Statements
                                                                    (continued)



(3) Investments in Land and Improvements (continued)
                                                                                                             Total
                   Gross                           Initial Costs                 Costs                     Remaining     Current
                   Acres   Purchase/  --------------------------------------  Capitalized    Costs of       Costs of    Year Gain
       Location: Purchased   Sales       Original  Acquisition     Total     Subsequent to   Property      Parcels at    on Sale
Parcel  County    (Sold)     Date         Costs       Costs        Costs      Acquisition      Sold         9/30/97    Recognized
------ --------- --------- ---------- ------------ ------------ ------------ -------------- ------------ ------------- -----------
        Subtotal                       8,499,401      611,108    9,110,509      6,429,361    2,065,532    13,474,338     279,373

16  Kane/Kendall   72.4187  01/29/90   1,273,537       55,333    1,328,870         77,928         -        1,406,798        -

17       McHenry   99.9240  01/29/90     739,635       61,038      800,673        290,986         -        1,091,659        -

18       McHenry   71.4870  01/29/90     496,116       26,259      522,375         19,440       11,109       530,706        -
                   (1.0000) Var 1990
                    (.5200) 03/11/93

19       McHenry   63.6915  02/23/90     490,158       29,158      519,316          6,961         -          526,277        -

20          Kane  224.1480  02/28/90   2,749,800      183,092    2,932,892        345,570        3,651     3,274,811        -
                    (.2790) 10/17/91

21       Kendall  172.4950  03/08/90   1,327,459       75,822    1,403,281        761,183         -        2,164,464        -

22       McHenry  254.5250  04/11/90   2,608,881      136,559    2,745,440         28,577         -        2,774,017        -

23       Kendall  140.0210  05/08/90   1,480,000      116,240    1,596,240        570,956    1,196,909       970,287        -
                   (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         18,956       83,663     1,393,988        -
                  (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         13,447         -        2,782,225        -
                                     ------------ ------------ ------------ -------------- ------------ ------------- -----------
                                     $23,624,761    1,562,308   25,187,069      8,563,365    3,360,864    30,389,570     279,373
                                     ============ ============ ============ ============== ============ ============= ===========
</TABLE>









                                     -11-



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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1997
                                  (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 real estate owned:

                                          1997               1996
                                      ------------       ------------
    Balance at January 1,............ $28,676,326         24,846,973
    Additions during period..........   1,851,945          4,397,239
    Sales during period..............     138,701            567,886
                                      ------------       ------------
    Balance at end of period......... $30,389,570         28,676,326
                                      ============       ============


(4) Farm Rental Income

The Partnership has determined that all leases relating to the farm parcels are
operating leases.  Accordingly, rental income is reported when earned.

As of September 30, 1997, the Partnership had farm leases of generally one year
in duration, for approximately  2,110  acres  of  the approximately 2,660 acres
owned.











                                     -12-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1997
                                  (unaudited)


(5)  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 has been extended to November
1, 1997 at the same interest  rate.    Loan  extension fees totaled $880. As of
September 30, 1997, the balance of this  note was $297,399. For the nine months
ended September 30, 1997, interest of $28,690 was capitalized, of which $16,171
and $3,942  was  unpaid  as  of  September  30,  1997  and  December  31, 1996,
respectively. For the nine months ended  September  30, 1997, loan fees paid to
the General Partner totaled $791, all  of  which have been paid and included in
investment in land and improvements.

On June 1, 1996, the  Partnership  obtained  a  line of credit from the General
Partner, Inland Real Estate Investment  Corporation, in the aggregate amount of
$3,000,000 to be  used  specifically  for  the  pre-development improvements on
Parcel 1. 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 Net Sales
Proceeds from Parcel 1 are being  applied  first to paydown the note. This note
had an original maturity date of May 1, 1997, but has been extended to November
1, 1997 at the same interest rate.   Loan extension fees totaled $12,530. As of
September 30, 1997, the  balance  of  this  note  was  $2,672,990. For the nine
months ended September 30, 1997, interest of $201,887 was capitalized, of which
$201,887 and $0 was unpaid  as  of  September  30,  1997 and December 31, 1996,
respectively. For the nine months ended  September  30, 1997, loan fees paid to
the General Partner totaled $5,670, all of which have been paid and included in
investment in land and improvements.

On May 12, 1997, the  Partnership  obtained  a  line of credit from the General
Partner, Inland Real Estate Investment  Corporation, in the aggregate amount of
$744,000 to be used specifically for the pre-development improvements on Parcel
21. The note accrues interest  at  9.625%  and  has  a maturity date of May 12,
1998. Interest-only payments on this note are due quarterly and the loan may be
prepaid at any time without penalty.  As  of September 30, 1997, the balance of
this note was $553,463. For the  nine months ended September 30, 1997, interest
of $13,447 was capitalized, of which  $5,824  and $0 was unpaid as of September
30, 1997 and December 31, 1996, respectively.






                                     -13-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1997
                                  (unaudited)


Additionally, Inland Real Estate  Investment Corporation loaned the Partnership
$2,428,023.  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.  The remainder  of  funds  loaned  to the Partnership were for
Partnership operations.  The note accrues interest at 10%.  For the nine months
ended September 30, 1997, interest of $73,963 was capitalized, of which $72,957
and $2,361  was  unpaid  as  of  September  30,  1997  and  December  31, 1996,
respectively.






































                                     -14-


Item 2.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
         Results of Operations

Certain statements in this  "Management's  Discussion and Analysis of Financial
Condition and Results of Operations" and  elsewhere in this quarterly report on
Form 10-Q constitute of "forward-looking  statements" within the meaning of the
Federal Private Securities  Litigation  Reform  Act  of  1995.   These forward-
looking statements involve  known  and  unknown  risks, uncertainties and other
factors which  may  cause  the  Partnership's  actual  results,  performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied  by  these forward-looking statements.  These
factors include,  among  other  things,  federal,  state  or local regulations;
adverse changes in general economic  or local conditions; inability of borrower
to meet financial  obligations;  uninsured  losses;  and potential conflicts of
interest between the  Partnership  and  its  Affiliates,  including the General
Partner.

Liquidity and Capital Resources

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

The Partnership used $25,187,069 of  gross  offering proceeds to purchase on an
all-cash basis  twenty-five  parcels  of  undeveloped  land  and  an  option to
purchase undeveloped  land.    These  investments  include  the  payment of the
purchase price, acquisition  fees  and  acquisition  costs  of such properties.
Fourteen of the parcels were purchased during  1989 and eleven during 1990.  As
of September 30, 1997,  the  Partnership  has  had multiple sales transactions,
through which it has disposed  of  approximately 442 acres of the approximately
3,102  acres  originally  owned.     As   of  September  30,  1997,  cumulative
distributions to the Limited Partners have totaled $5,996,220 (which represents
a return of Invested  Capital,  as  defined  in  the Partnership Agreement) and
$153,743 to the General Partner.    Through September 30, 1997, the Partnership
has  used  $8,563,365  of  working  capital  reserve  for  rezoning  and  other
activities.  Such amounts have been capitalized and are included in investments
in land.

The Partnership's capital needs and resources will vary depending upon a number
of factors, including the extent to which the Partnership conducts rezoning and
other  activities  relating  to  utility  access,  the  installation  of roads,
subdivision and/or annexation of land to a municipality, changes in real estate
taxes affecting the Partnership's land, and the amount of revenue received from
leasing.  As of September 30, 1997,  the Partnership owns, in whole or in part,
twenty-two 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.




                                     -15-


At September  30,  1997,  the  Partnership  had  cash  and  cash equivalents of
$36,588.  The Unit Repurchase  Program  has approximately $61,400 remaining 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 $5,996,220.

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.    Parcel  1, zoned with a
preliminary plan approved by the  Village  of Oswego, has improvements underway
and sites are being marketed. Of the  199 single-family lots, 75 lots are under
contract with a homebuilder, of which the  first 15 lots closed on December 24,
1996 (see Note 3 of the Notes to Financial Statements.) Parcels 4, 6 and 7 have
completed 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 forty lots, ten lots
were sold to individuals during  1996  and  1997  (see  Note  3 of the Notes to
Financial Statements.)  Parcels 16, 21  and 23 have been zoned with development
and sales marketing underway.

Results of Operations

As of September 30,  1997,  the  Partnership  owned  twenty-two parcels of land
consisting  of  approximately   2,660   acres.   Of   the  2,660  acres  owned,
approximately 2,110 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 and nine
months ended September 30, 1997 is a result of the sale of four additional lots
of Parcel 15 and the sale of 2.081  acres  of Parcel 13.  Land sales income and
cost of land sold for the three and nine months ended September 30, 1996 is the
result of the sale of 4.629 acres of Parcel 24, the sale of 5.677 acres (Lots 1
and 2) of Parcel  15  and  the  prepayment  of  a  mortgage loan receivable and
recognition of deferred gain relating to the  1994 lot sales of Parcel 23.  The
increase in rental income  for  the  nine  months  ended September 30, 1997, as
compared to the nine months  ended  September  30,  1996,  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.

Interest income decreased for  the  three  and  nine months ended September 30,
1997, as compared to the three  and  nine  months ended September 30, 1996, due
primarily to the Partnership utilizing its working capital reserve to fund pre-
development activity on the Partnership's land investments.




                                     -16-


Professional  services  to  Affiliates  increased  for  the  nine  months ended
September 30, 1997, as compared  to  the  nine months ended September 30, 1996,
due to increases in legal  and  accounting  services related to the increase in
sales activity within the Partnership.  Professional services to non-affiliates
increased for the nine months ended September 30, 1997, as compared to the nine
months ended September 30, 1996, due to an increase in outside legal services.

General and administrative expenses to  Affiliates  decreased for the three and
nine months ended September 30, 1997, as  compared to the three and nine months
ended September 30,  1996,  due  to  decreases  in  supplies,  postage and data
processing expenses.  This  decrease  was  partially  offset  by an increase in
investor services  expenses.    General  and  administrative  expenses  to non-
affiliates increased for the nine months  ended September 30, 1997, as compared
to the nine months ended September 30, 1996, due to an increase in the Illinois
Replacement Tax paid in 1997.

Marketing expenses to Affiliates increased for  the three and nine months ended
September 30, 1997, as compared  to  the  three and nine months ended September
30, 1996, due to increases  in  expenses  relating to marketing and advertising
the Partnership's  land  investments  for  sale.    Marketing  expenses to non-
affiliates increased for the three and nine months ended September 30, 1997, as
compared to the three  and  nine  months  ended  September  30, 1996, due to an
increase in advertising  and  travel  expenses  relating  to marketing the land
portfolio to prospective purchasers.

Land operating expenses  to  non-affiliates  increased  for  the three and nine
months ended September 30, 1997, as compared to the three and nine months ended
September  30,  1996,  due  to  an  increase  in  maintenance  expenses  of the
Partnership's land investments. 






                          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









                                     -17-





                                  SIGNATURES



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


                            INLAND LAND APPRECIATION FUND, L.P.

                            By:   Inland Real Estate Investment Corporation
                                  General Partner


                                  /S/ ROBERT D. PARKS

                            By:   Robert D. Parks
                                  Chairman
                            Date: November 12, 1997


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: November 12, 1997


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: November 12, 1997




















                                     -18-