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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**(Mark      One)**

| **þ** | **Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934.** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended February 28, 2007.**

**or**

| **o** | **Transition                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934.** |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from ______to______.**

**Commission      file number 333-130858**

**BYWATER      RESOURCES INC.**

| **Delaware**                                                       |                                                |
|--------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of                     | (I.R.S.                Employer Identification No.) |
| incorporation                or organization)                      |                                                |
|                                                               |                                                |
|  **300                Park Avenue, Suite 1700, New York, NY** | **10022**                                           |
| (Address                of principal executive offices)            | (Zip                Code)                           |

**(212)      572-6395**

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**BYWATER      RESOURCES INC.**

**FINANCIAL      STATEMENTS**

**INDEX**

**PART      I-- FINANCIAL INFORMATION**

| Item                1. | Financial                Statements                                              |
|------------------------|----------------------------------------------------------------------------------|
|                   |                                                                             |
| Item                2. | Management’s                Discussion and Analysis of Financial Condition |
|                   |                                                                             |
| Item                3. | Control                and Procedures                                            |

**PART      II-- OTHER INFORMATION**

| Item                1. | Legal                Proceedings                                   |
|------------------------|--------------------------------------------------------------------|
|                   |                                                               |
| Item                2. | Changes                in Securities                               |
|                   |                                                               |
| Item                3. | Defaults                Upon Senior Securities                     |
|                   |                                                               |
| Item                4. | Submission                of Matters to a Vote of Security Holders |
|                   |                                                               |
| Item                5. | Other                Information                                   |
|                   |                                                               |
| Item                6. | Exhibits                and Reports on Form 8-K                    |

**SIGNATURE**

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**Item      1. Financial Information**

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**BYWATER      RESOURCES, INC.**

**(AN      EXPLORATION STAGE COMPANY)**

**FINANCIAL      STATEMENTS**

**AS      OF FEBRUARY 28, 2007**

**(UNAUDITED)**

----

**BYWATER      RESOURCES, INC.**

**(AN      EXPLORATION STAGE COMPANY)**

**CONTENTS**

| PAGE   | F-1                      | CONDENSED                BALANCE SHEET AS OF FEBRUARY 28, 2007 (UNAUDITED)                                                                                                                                                                                                                                                                        |
|--------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                     |                                                                                                                                                                                                                                                                                                                                              |
| PAGE   | F-2                      | CONDENSED                  STATEMENT OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED FEBRUARY                  28,                  2007; THE PERIOD JANUARY 11, 2006 (INCEPTION) TO FEBRUARY 28, 2006                  AND FOR                  THE PERIOD FROM JANUARY 11, 2006 (INCEPTION) TO FEBRUARY 28, 2007                  (UNAUDITED) |
|   |                     |                                                                                                                                                                                                                                                                                                                                              |
| PAGES  | F-3                      | CONDENSED                STATEMENT OF STOCKHOLDERS’ EQUITY FOR THE PERIOD FROM JANUARY 11, 2006                (INCEPTION) TO FEBRUARY 28, 2007 (UNAUDITED)                                                                                                                                                                                 |
|   |                     |                                                                                                                                                                                                                                                                                                                                              |
| PAGE   | F-4                      | CONDENSED                  STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED FEBRUARY 28,                  2007; THE                  PERIOD JANUARY 11, 2006 (INCEPTION) TO FEBRUARY 28, 2006 AND FOR                  THE                  PERIOD FROM JANUARY 11, 2006 (INCEPTION) TO FEBRUARY 28, 2007                  (UNAUDITED)          |
|   |                     |                                                                                                                                                                                                                                                                                                                                              |
| PAGES  | F-5                - F-9 | NOTES                TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)                                                                                                                                                                                                                                                                                |
|   |                     |                                                                                                                                                                                                                                                                                                                                              |

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**CONDENSED        BALANCE SHEET**

**AS        OF FEBRUARY 28, 2007**

**(UNAUDITED)**

| **ASSETS**                                                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                        |   |   |   |
| **CURRENT                  ASSETS**                                                                                                                         |   |   |   |
| Cash                                                                                                                                                        |   | $ | 27,411 |   |
|                                                                                                                                                        |   |   |   |   |
| **TOTAL                  ASSETS**                                                                                                                           |   | $ | 27,411 |   |
|                                                                                                                                                        |   |   |   |   |
|                                                                                                                                                        |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                             |
|                                                                                                                                                        |   |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                    |   |   |   |   |
| Accrued                  expenses                                                                                                                           |   | $ | 4,950 |   |
|                                                                                                                                                        |   |   |   |   |
| **TOTAL                  LIABILITIES**                                                                                                                      |   |   | 4,950 |   |
|                                                                                                                                                        |   |   |   |   |
| **STOCKHOLDERS’                  EQUITY**                                                                                                             |   |   |   |   |
| Preferred                  stock, $0.0001 par value, 50,000,000 shares authorized, none issued                  and outstanding                        |   |   | - |   |
| Common                  stock, $0.0001 par value, 100,000,000 shares authorized, 16,000,000                  shares                  issued and outstanding |   |   | 1,600 |   |
| Additional                  paid in capital                                                                                                                 |   |   | 79,600 |   |
| Accumulated                  deficit during exploration stage                                                                                               |   |   | (58,739 | ) |
| Total                  Stockholders’ Equity                                                                                                           |   |   | 22,461 |   |
|                                                                                                                                                        |   |   |   |   |
| **                   TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                |   | $ | 27,411 |   |

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**CONDENSED        STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                                                                                                                |   | For                  the Three Months Ended February 28, 2007 |       | For                  the Period FromJanuary                  11, 2006 (Inception) to February 28, 2006 |   | For                  the Nine Months Ended February 28, 2007 |   | For                  the Period FromJanuary                  11, 2006 (Inception) to February 28, 2007 |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |
| **REVENUE**                                                                                                                                                         |   | $                                                             | -          |                                                                                                   | $      | -                                                            |   | $                                                                                                      | -          |   | $ | - |   |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| **OPERATING                  EXPENSES**                                                                                                                             |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| General                  and administrative                                                                                                                         |   |                                                          | 1,897      |                                                                                                   |   | 1,224                                                        |   |                                                                                                   | 12,533     |   |   | 18,739 |   |
| Exploration                  costs                                                                                                                                  |   |                                                          | -          |                                                                                                   |   | 40,000                                                       |   |                                                                                                   | -          |   |   | 40,000 |   |
| Total                  Operating Expenses                                                                                                                           |   |                                                          | 1,897      |                                                                                                   |   | 41,224                                                       |   |                                                                                                   | 12,533     |   |   | 58,739 |   |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| **LOSS                  FROM OPERATIONS**                                                                                                                           |   |                                                          | (1,897     | )                                                                                                      |   | (41,224                                                      | )      |                                                                                                   | (12,533    | ) |   | (58,739 | ) |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| Provision                  for Income Taxes                                                                                                                         |   |                                                          | -          |                                                                                                   |   | -                                                            |   |                                                                                                   | -          |   |   | - |   |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| **NET                  LOSS**                                                                                                                                       |   | $                                                             | (1,897     | )                                                                                                      | $      | (41,224                                                      | )      | $                                                                                                      | (12,533    | ) | $ | (58,739 | ) |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
| Net                  loss per share - basic and diluted                                                                                                             |   | $                                                             | -          |                                                                                                   | $      | -                                                            |   | $                                                                                                      | -          |   | $ | - |   |
|                                                                                                                                                                |   |                                                          |       |                                                                                                   |   |                                                         |   |                                                                                                   |       |   |   |   |   |
|                      Weighted average number of shares outstanding during the period                  -                  basic and diluted |   |                                                          | 16,000,000 |                                                                                                   |   | 12,525,000                                                   |   |                                                                                                   | 16,000,000 |   |   | 15,582,324 |   |

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**CONDENSED        STATEMENT OF STOCKHOLDERS’ EQUITY**

**FOR        THE PERIOD FROM JANUARY 11, 2006 (INCEPTION) TO FEBRUARY 28,        2007**

**(UNAUDITED)**

|                                                                                                                                                       |   | Preferred                  Stock |   | Common                  Stock |   | Additional                  Paid-In |   | Accumulated                  Deficit During Exploration |       |    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|-------------------------------|--------|-------------------------------------|--------|---------------------------------------------------------|------------|---------|--------|
|                                                                                                                                                       |   | Shares                           |   | Amount                        |   | Shares                              |   | Amount                                                  |       | Capital |   | Stage |   | Total |   |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |
|                    Common stock issued as compensation upon Company inception on                  January 11, 2006 ($0.0001 per share) |   |                             | -      |                          | $      | -                                   |   |                                                    | 12,000,000 |    | $      | $1,200 |   | $ | - |   | $ | - |   | $ | 1,200 |   |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Common stock issued for cash on February 16, 2006 on private placement                  ($0.02 per share)                     |   |                             | -      |                          |   | -                                   |   |                                                    | 2,100,000  |    |   | 210 |   |   | 41,790 |   |   | - |   |   | 42,000 |   |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Common stock issued for cash on March 3, 2006 on private placement                  ($0.02 per share)                         |   |                             | -      |                          |   | -                                   |   |                                                    | 1,900,000  |    |   | 190 |   |   | 37,810 |   |   | - |   |   | 38,000 |   |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net loss (inception to May 31, 2006)                                                                                               |   |                             | -      |                          |   | -                                   |   |                                                    | -          |    |   | - |   |   | - |   |   | (46,206 | ) |   | (46,206 | ) |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Balance, May 31, 2006                                                                                                              |   |                             | -      |                          |   | -                                   |   |                                                    | 16,000,000 |    |   | 1,600 |   |   | 79,600 |   |   | (46,206 | ) |   | 34,994 |   |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net loss for the nine months                                                                                                       |   |                             | -      |                          |   | -                                   |   |                                                    | -          |    |   | - |   |   | - |   |   | (12,533 | ) |   | (12,533 | ) |
|                                                                                                                                                       |   |                             |   |                          |   |                                |   |                                                    |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| **                   BALANCE, FEBRUARY 28, 2007**                                                                                                     |   |                             | -      |                          | $      | -                                   |   |                                                    | 16,000,000 |    | $      | $1,600 |   | $ | 79,600 |   | $ | (58,739 | ) | $ | 22,461 |   |

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**CONDENSED**
**STATEMENTS        OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                              |   | For                    the Nine Months Ended February 28, 2007 |    | For                    the Period FromJanuary                    11, 2006 (Inception) to February 28, 2006 |   | For                    the Period FromJanuary                    11, 2006 (Inception) to February 28, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |
| **CASH                    FLOWS FROM OPERATING ACTIVITIES:**                                                      |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |
| Net                    loss                                                                                       |   | $                                                              | (12,533 | )                                                                                                          | $      | (41,224                                                                                                    | )      | $ | (58,739 | ) |
| Adjustments                    to reconcile net loss to net cash used in operating                    activities: |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| Compensation                    in the form of stock                                                              |   |                                                           | -       |                                                                                                       |   | 1,200                                                                                                      |   |   | 1,200 |   |
| Changes                    in operating assets and liabilities:                                                   |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| Increase                    (decrease) in accrued expenses                                                        |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| Increase                    (decrease) in accrued expenses                                                        |   |                                                           | -       |                                                                                                       |   | -                                                                                                          |   |   | 4,950 |   |
| Net                    Cash Used In Operating Activities                                                          |   |                                                           | (12,533 | )                                                                                                          |   | (40,024                                                                                                    | )      |   | (52,589 | ) |
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| **CASH                    FLOWS FROM INVESTING ACTIVITIES**                                                       |   |                                                           | -       |                                                                                                       |   | -                                                                                                          |   |   | - |   |
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| **CASH                    FLOWS FROM FINANCING ACTIVITIES:**                                                      |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| Proceeds                    from issuance of common stock                                                         |   |                                                           | -       |                                                                                                       |   | 42,000                                                                                                     |   |   | 80,000 |   |
| Net                    Cash Provided By Financing Activities                                                      |   |                                                           | -       |                                                                                                       |   | 42,000                                                                                                     |   |   | 80,000 |   |
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| NET                    INCREASE (DECREASE) IN CASH                                                                |   |                                                           | (12,533 | )                                                                                                          |   | 1,976                                                                                                      |   |   | 27,411 |   |
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                               |   |                                                           | 39,944  |                                                                                                       |   | -                                                                                                          |   |   | - |   |
|                                                                                                              |   |                                                           |    |                                                                                                       |   |                                                                                                       |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT END OF PERIOD                                                     |   | $                                                              | 27,411  |                                                                                                       | $      | 1,976                                                                                                      |   | $ | 27,411 |   |

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**NOTES        TO CONDENSED FINANCIAL STATEMENTS**

**AS        OF FEBRUARY 28, 2007**

**(UNAUDITED)**

| **NOTE                  1** | **SUMMARY                  OF SIGNIFICANT ACCOUNTING POLICIES AND                  ORGANIZATION** |
|-----------------------------|---------------------------------------------------------------------------------------------------|

***(A)        Basis of Presentation***

***(B)        Organization***

***(C)        Revenue and Cost Recognition***

***(D)        Use of Estimates***

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**NOTES        TO CONDENSED FINANCIAL STATEMENTS**

**AS        OF FEBRUARY 28, 2007**

**(UNAUDITED)**

***(E)        Non-Mining Property and Equipment***

***(F)        Income Taxes***

***(G)        Stock Based Compensation***

***(H)        Cash and Cash Equivalents and Credit Risk***

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**BYWATER          RESOURCES, INC.**

**(AN          EXPLORATION STAGE COMPANY)**

**NOTES          TO CONDENSED FINANCIAL STATEMENTS**

**AS          OF FEBRUARY 28, 2007**

**(UNAUDITED)**

***(I)        Foreign Currency Translation and Transactions***

***(J)        Earnings Per Share***

**NOTE        2**
**GOING        CONCERN**

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**BYWATER          RESOURCES, INC.**

**(AN          EXPLORATION STAGE COMPANY)**

**NOTES          TO CONDENSED FINANCIAL STATEMENTS**

**AS          OF FEBRUARY 28, 2007**

**(UNAUDITED)**

| **NOTE                  3** | **AFFILIATES                  AND RELATED PARTIES** |
|-----------------------------|-----------------------------------------------------|

| **NOTE                  4** | **STOCKHOLDERS’                  EQUITY** |
|-----------------------------|-------------------------------------------------|

***(A)        Preferred Stock***

***(B)        Common Stock***

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**BYWATER        RESOURCES, INC.**

**(AN        EXPLORATION STAGE COMPANY)**

**NOTES        TO CONDENSED FINANCIAL STATEMENTS**

**AS        OF FEBRUARY 28, 2007**

**(UNAUDITED)**

**NOTE        5**
**COMMITMENTS        AND CONTINGENCIES**

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**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

**Organization**

**Overview**

**Property      Payments**

| Exploration                and site work (samples) |   |   | 8,000  |   |
|----------------------------------------------------|--------|--------|--------|--------|
| General                and administrative          |   |   | 17,400 |   |
| Total                                              |   | $      | 25,400 |   |

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**Item      3. Controls and Procedures**

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**PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings.**

**Item      2. Changes in Securities.**

**Item      3. Defaults Upon Senior Securities.**

**Item      4. Submission of Matters to a Vote of Security Holders.**

**Item      5. Other Information.**

**Item      6. Exhibits and Reports of Form 8-K.**

| (a)   | Exhibits |
|-----------------|----------|

| (b)   | Reports                of Form 8-K |
|-----------------|------------------------------------|

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**SIGNATURES**

**BYWATER      RESOURCES INC.**

*/s/     *
*Rolf      Harms*