##### Table of Contents

---

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



---

FORM 10-QSB



---



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2007

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 number 1-9900



---

ARIZONA LAND INCOME CORPORATION

(Exact name of registrant as specified in its charter)



---



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Arizona                                                        |  | 86-0602478                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

2999 N. 44th Street, Suite 100, Phoenix, Arizona 85018

(Address of principal executive offices)

(Zip Code)

(602) 952-6800

(Registrants telephone number, including area code)



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



---

Check whether the issuer (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 ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of
each of the issuers classes of common stock, as of the latest practicable date.

As of August 14, 2007, there were 1,851,025
shares of Class A common stock and 100 shares of Class B common stock issued and outstanding.



---



---

##### Table of Contents

Tab
le of Contents



|                                                                    |  |     
|------------------------------------------------------------------- |  | ----
|                                                                    |  | Page
|Part I                                                              |  |     
|                                                                    | 
|Item 1. Financial Statements                                        |  | 3   
|                                                                    | 
|Item 2. Managements Discussion and Analysis or Plan of Operation   |  | 7   
|                                                                    | 
|Item 3. Controls and Procedures                                     |  | 9   
|                                                                    | 
|Part II                                                             |  |     
|                                                                    | 
|Item 1. Legal Proceedings                                           |  | 10  
|                                                                    | 
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |  | 10  
|                                                                    | 
|Item 3. Defaults upon Senior Securities                             |  | 10  
|                                                                    | 
|Item 4. Submission of Matters to a Vote of Security Holders         |  | 10  
|                                                                    | 
|Item 5. Other Information                                           |  | 10  
|                                                                    | 
|Item 6. Exhibits                                                    |  | 10  
|                                                                    | 
|Signatures                                                          |  | 11  
|                                                                    | 
|Certifications                                                      |  |     



2



---

##### Table of Contents

ARIZONA LAND INCOME CORPORATION

Balance Sheets



|                                                           |  |              |             |   |                   |   |             |  
|---------------------------------------------------------- |  | ------------ | ----------- | - | ----------------- | - | ----------- | -
|                                                           |  | June 30,2007 |             |   | December 31, 2006 |  
|                                                           |  | (Unaudited)  |             |   |                   |  
|Assets                                                     |  |              |             |   |                   |   |             |  
|Cash and temporary investments                             |  | $            | 574,553     |   |                   | $ | 773,993     |  
|                                                           |  |              |             |   |                   |   |             |  
|Investments                                               |  |              |             |   |                   |   |             |  
|Trading Securities                                         |  |              | 3,546,472   |   |                   |   | 1,800,102   |  
|Accrued interest receivable                                |  |              |            |   |                   |   | 67,550      |  
|Mortgage note receivable (net of reserve for loss on sale) |  |              |            |   |                   |   | 3,411,346   |  
|Land held for sale                                         |  |              | 55,890      |   |                   |   | 55,890      |  
|                                                           |  |              |             |   |                   |   |             |  
|Total Investments                                          |  |              | 3,602,362   |   |                   |   | 5,334,888   |  
|                                                           |  |              |             |   |                   |   |             |  
|Total assets                                               |  | $            | 4,176,915   |   |                   | $ | 6,108,881   |  
|                                                           |  |              |             |   |                   |   |             |  
|                                                           |  |             
|Liabilities                                                |  |              |             |   |                   |   |             |  
|Accounts payable and other liabilities                     |  | $            | 45,364      |   |                   | $ | 25,865      |  
|Dividends payable                                          |  |              |            |   |                   |   | 1,851,025   |  
|                                                           |  |              |             |   |                   |   |             |  
|Total liabilities                                          |  |              | 45,364      |   |                   |   | 1,876,890   |  
|                                                           |  |              |             |   |                   |   |             |  
|                                                           |  |             
|Stockholders Equity                                       |  |              |             |   |                   |   |             |  
|Common stock-Class A                                       |  |              | 185,103     |   |                   |   | 185,103     |  
|Common stock-Class B                                       |  |              | 10          |   |                   |   | 10          |  
|Additional paid-in capital                                 |  |              | 21,670,997  |   |                   |   | 21,670,997  |  
|Distributions in excess of earnings                        |  |              | (17,724,559 | ) |                   |   | (17,624,119 | )
|                                                           |  |              |             |   |                   |   |             |  
|Total stockholders equity                                 |  |              | 4,131,551   |   |                   |   | 4,231,991   |  
|                                                           |  |              |             |   |                   |   |             |  
|Total liabilities & stockholders equity                   |  | $            | 4,176,915   |   |                   | $ | 6,108,881   |  
|                                                           |  |              |             |   |                   |   |             |  

The accompanying notes are an integral part of these balance sheets.



3



---

##### Table of Contents

ARIZONA LAND INCOME CORPORATION

Statements of Operations

(Unaudited)



|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|------------------------------------------ |  | ------------------------------- | --------- | - | -------------------------------- | - | ------------------------------ |  | - | ------------------------------ | - |  | - | ---------
|                                           |  | Three monthsended June 30, 2007 |           |   | Three months ended June 30,
2006 |   | Six months ended June 30, 2007 |  |   | Six months ended June 30, 2006
|Income                                     |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Interest on mortgages                      |  | $                               |          |   |                                  | $ | 101,290                        |  | $ | 36,367                         |   |  | $ | 198,190  
|Interest on temporary investments          |  |                                 | 54,040    |   |                                  |   | 15,505                         |  |   | 85,473                         |   |  |   | 27,862   
|Sign lease income                          |  |                                 | 3,750     |   |                                  |   | 3,750                          |  |   | 7,500                          |   |  |   | 7,500    
|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Total income                               |  |                                 | 57,790    |   |                                  |   | 120,545                        |  |   | 129,340                        |   |  |   | 233,552  
|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|                                           |  |                                 |           |  
|Expenses                                   |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Professional services                      |  |                                 | 65,212    |   |                                  |   | 2,385                          |  |   | 127,235                        |   |  |   | 20,017   
|Administration and general                 |  |                                 | 6,917     |   |                                  |   | 15,702                         |  |   | 86,345                         |   |  |   | 18,540   
|Directors fees                            |  |                                 | 7,500     |   |                                  |   | 7,500                          |  |   | 16,200                         |   |  |   | 16,200   
|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Total expenses                             |  |                                 | 79,629    |   |                                  |   | 25,587                         |  |   | 229,780                        |   |  |   | 54,757   
|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Net income (loss)                          |  | $                               | (21,839   | ) |                                  | $ | 94,958                         |  | $ | (100,440                       | ) |  | $ | 178,795  
|                                           |  |                                 |           |   |                                  |   |                                |  |   |                                |   |  |   |          
|Earnings per common share                  |  | $                               | (0.01     | ) |                                  | $ | 0.05                           |  | $ | (0.05                          | ) |  | $ | 0.10     
|Dividends declared per share               |  | $                               | 0.00      |   |                                  | $ | 0.10                           |  | $ | 0.00                           |   |  | $ | 0.20     
|Weighted average common shares outstanding |  |                                 | 1,851,025 |   |                                  |   | 1,851,025                      |  |   | 1,851,025                      |   |  |   | 1,851,025

The accompanying notes are an integral part of these statements.



4



---

##### Table of Contents

ARIZONA LAND INCOME CORPORATION

Statements of Cash Flows

(Unaudited)



|                                                                                                   |  |                                |            |   |                                |   |          |  
|-------------------------------------------------------------------------------------------------- |  | ------------------------------ | ---------- | - | ------------------------------ | - | -------- | -
|                                                                                                   |  | Six months ended June 30, 2007 |            |   | Six months ended June 30, 2006 |  
|Cash Flows from Operating Activities:                                                              |  |                                |            |   |                                |   |          |  
|Net income (loss)                                                                                  |  | $                              | (100,440   | ) |                                | $ | 178,795  |  
|Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities- |  |                                |            |   |                                |   |          |  
|(Increase) in trading securities                                                                   |  |                                | (92,259    | ) |                                |   | (8,184   | )
|(Increase) decrease in accrued interest receivable                                                 |  |                                | 67,550     |   |                                |   | (8,564   | )
|Increase (decrease) in accounts payable and other liabilities                                      |  |                                | 19,499     |   |                                |   | (11,699  | )
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Net cash provided by (used in) operating activities                                                |  |                                | (105,650   | ) |                                |   | 150,348  |  
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Cash flows from investing activities:                                                              |  |                                |            |   |                                |   |          |  
|Proceeds from sale of mortgage note receivable                                                     |  |                                | 3,411,346  |   |                                |   |         |  
|Purchase of trading securities                                                                     |  |                                | (3,500,111 | ) |                                |   | (500,331 | )
|Proceeds from sale of trading securities                                                           |  |                                | 1,846,000  |   |                                |   | 808,000  |  
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Net cash provided by investing activities                                                          |  |                                | 1,757,235  |   |                                |   | 307,669  |  
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Cash flows from financing activities:                                                              |  |                                |            |   |                                |   |          |  
|Payment of dividends                                                                               |  |                                | (1,851,025 | ) |                                |   | (370,206 | )
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Net cash used in financing activities                                                              |  |                                | (1,851,025 | ) |                                |   | (370,206 | )
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Increase (decrease) in cash and temporary investments                                              |  |                                | (199,440   | ) |                                |   | 87,811   |  
|Cash and temporary investmentsbeginning of period                                                 |  |                                | 773,993    |   |                                |   | 71,116   |  
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Cash and temporary investmentsend of period                                                       |  | $                              | 574,553    |   |                                | $ | 158,927  |  
|                                                                                                   |  |                                |            |   |                                |   |          |  
|Schedule of Non-Cash Investing and Financing Activities:                                           |  |                                |            |   |                                |   |          |  
|Dividends declared in excess of dividends paid                                                     |  | $                              |           |   |                                | $ | 185,103  |  

The accompanying notes are an integral part of these statements.



5



---

##### Table of Contents

Arizona Land Income Corporation

Notes to Financial Statements

June 30, 2007



|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note 1 |  | Basis of Presentation - The financial statements have been prepared by Arizona Land Income Corporation (the Company) without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission and the instructions to Form 10-QSB. In the opinion of the Company, the unaudited financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the
financial position, the results of operations and cash flows for the periods presented. The results of operations for the three months and six months ended June 30, 2007 are not necessarily indicative of the results to be expected for the full year.                                                                                                                                                                                                                                                                                                                                                                                                    
|       | 
|Note 2 |  | Summary of Significant Accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       | 
|       |  | Cash and Cash Equivalents: Investments with an original maturity of less than 90 days when purchased are considered cash equivalents. On occasion, the Company may have deposits with
financial institutions in excess of governmental insured limits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | 
|       |  | Trading Securities: U.S. Treasury Notes and debt securities of other governmental agencies with original maturities of 120 days or more are classified as trading securities upon
acquisition and recorded at fair value. Gains and losses are included in income on trading securities in the accompanying statements of operations. Substantially all income from trading securities for the three months ended June 30, 2007 and
2006 resulted from interest earned on securities. These securities are presented at the amortized cost which approximates market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | 
|       |  | Income Taxes and REIT Status: The Company has elected treatment as a real estate investment trust (REIT) under Internal Revenue Code (IRC) Sections 856-860. A REIT
is taxed in the same manner as any corporation except that it may deduct certain qualifying distributions made to shareholders and reduce or eliminate any potential income taxes. This distribution deduction must be at least 90% of the REITs
taxable income. The Company has met the distribution requirement for all periods presented, and thus has not recorded any income tax provision in the accompanying statements of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       | 
|       |  | For income tax purposes, certain expenses or reserves for financial reporting purposes are not allowed as current tax deductions. Similarly, the Company may take certain current deductions for
tax purposes that are not current expenses for financial reporting purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | 
|       |  | On July 13, 2006, the FASB issued Interpretation No. 48. Accounting for Uncertainty in Income Taxes  An Interpretation of FASB Statement No. 109(Fin 48).
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an entitys financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes and prescribes a recognition threshold and
measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under FIN 48, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount
that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, FIN 48 provides guidance on
derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006.
|       | 
|       |  | The Company adopted the provisions of FIN 48 on January 1, 2007. As a result of the adoption of FIN 48, the Company has not recognized any change to the January 1, 2007 balance in
retained earnings. At January 1, 2007 and June 30, 2007, the Company had no unrecognized tax benefits that, if recognized, would affect the Companys effective income tax rate in future periods. The adoption of FIN 48 did not impact
our consolidated financial condition, results of operations or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       | 
|       |  | The Companys practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrued interest or penalties at January 1,
2007 and no accrued interest or penalties at June 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | 
|       |  | The Company is subject to taxation in the U.S.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       | 
|Note 3 |  | Mortgage Note Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | 
|       |  | The mortgage note receivable which totaled $3,516,852 at December 31, 2006 was received as partial consideration for the Companys sale of the property associated with Loan No. 6. The
Company sold its remaining holdings of approximately 280 acres in Maricopa County, Arizona on May 10, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       | 
|       |  | In February 2007, the Company sold its interest in the note receivable to a related party for $3,411,346 and invested the proceeds from that sale in trading securities. As of December 31, 2006,
the Company recorded an impairment reserve for loss on sale of $105,506, resulting in no gain or loss for the six months ended June 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



6



---

##### Table of Contents

|Item 2. | Managements Discussion and Analysis or Plan of Operation
|------- | ---------------------------------------------------------

Arizona Land Income Corporation (the Company) is an Arizona corporation, which has elected to be treated as a real estate investment trust (a REIT) under the Internal Revenue Code of 1986. The
statements of operations filed herewith cover the periods from January 1, 2007 through June 30, 2007, and January 1, 2006 through June 30, 2006.

Potential Dissolution/Transaction with Pacific Office. As disclosed in the Companys prospectus used in connection with the Companys 1988 initial public offering and in its subsequent annual reports
on Form 10-KSB, the Companys intent at the time of the public offering was to dissolve within approximately eight years after the date of such offering.

For the past several years, we have been liquidating our loan and land holdings and returning
capital to our shareholders through regular and special dividends. In the second quarter ended June 30, 2004, we sold our remaining holdings (with the exception of a small parcel of approximately 1/100thof an acre) of approximately 280 acres related to Loan No. 6. As partial consideration for the Companys sale of the property associated with Loan No. 6, the Company
received a mortgage note receivable which totaled $3,516,852 at December 31, 2006. In February 2007, the Company sold its interest in the note receivable to a related party for $3,411,346 and invested the proceeds from that sale in trading
securities.

In January 2005, we engaged Peacock, Hislop, Staley & Given, Inc., a financial advisor (PHS&G)
to assist in developing and evaluating strategic alternatives available to the Company to enhance shareholder value. Alternatives that were being considered included a change of business plan for the Company, a merger or sale of the Company, a
combination of these, or the decision to take no action other than the completion of the liquidation of the Company. We issued a press release on January 24, 2005 announcing our engagement with PHS&G and the purpose of the engagement. Our
Board of Directors believed that PHS&Gs historic relationship with, and long knowledge of, the Company put it in a unique position to assist in determining the best course of action for the Company to take.

Our engagement of PHS&G has entailed an effort by PHS&G to locate a possible merger, partner or acquirer for the Company that would result in
enhanced shareholder value. Our agreement with PHS&G calls for the Company to pay PHS&G a fee of 4% of the transaction value (but in no event more than $250,000) only upon the successful completion of its efforts.

In connection with PHS&Gs receipt of certain offers from interested parties relating to a potential transaction with the Company, our Board met
in March 2005 for the purpose of forming a special committee composed of qualified independent directors (the Special Committee). The Special Committee was tasked with investigating and negotiating a potential business disposition,
liquidation or other strategic transaction regarding the Company. We announced on October 3, 2006 that we had entered into a Master Formation and Contribution Agreement (as subsequently amended, the Master Agreement) with POP
Venture, LLC, a Delaware limited liability company (Pacific Office Contributor), as described in our annual report on Form 10-KSB for the fiscal year ended December 31, 2006 (see Item 1. Description of BusinessProposed
Transactions with Pacific Office Contributor in that Form 10-KSB). Pursuant to the Master Agreement, the Company will form an umbrella partnership (UPREIT) in which the Company is the sole general partner. Upon consummation of the
transactions contemplated by the Master Agreement (the Closing), the UPREIT will acquire ownership interests in up to ten office properties (the Contributed Properties), which comprise approximately 2.8 million square
feet of office space, in consideration for common units and convertible preferred units in the UPREIT with a value equal to the net asset value of the interests in the Contributed Properties at Closing. This value is estimated to be approximately
$165 million.

Results of Operations

For the quarter ended June 30, 2007, the Company had total income of approximately $58,000 compared to $120,000 for the quarter ended June 30, 2006. This decrease was primarily attributable to a decrease of approximately $101,290
in interest on mortgages and an increase of approximately $38,500 in interest on temporary investments. During the first quarter of 2007, the Company sold its mortgage note receivable and invested the proceeds in temporary investments.

The Companys expenses for the quarter ended June 30, 2007 were approximately $80,000 compared to $25,000 for the quarter ended
June 30, 2006. The Companys fees for professional services increased to approximately $65,000 for the quarter ended June 30, 2007 from approximately $2,000 for the same period of 2006. The increases in fees for professional services
can be attributed to expenses associated with the proposed transaction between the Company and Pacific Office Contributor, pursuant to the Master Agreement. The Companys administration and general expenses decreased to approximately $7,000 for
the quarter ended June 30, 2007, from approximately $16,000 for the quarter ended June 30, 2006.

The Company reported a net loss
of approximately $22,000 for the quarter ended June 30, 2007, compared to net income of approximately $95,000 for the quarter ended June 30, 2006.

The Company reported total income of approximately $129,000 for the six-month operating period ended June 30, 2007, compared to approximately $233,000 for the same period during fiscal 2006. This decrease
resulted from a decrease of approximately $162,000 in interest on mortgages and an increase of approximately $57,000 in interest on temporary investments. For



7



---

##### Table of Contents

the six-month operating period ended June 30, 2007, the Company reported expenses of approximately $230,000 compared to $55,000 for the same period
during fiscal 2006. This increase resulted from an increase in fees for professional services of approximately $107,000, and an increase of approximately $68,000 in administration and general expenses.

The Company reported a net loss of approximately $100,000 for the six-month period ended June 30, 2007, compared to net income of approximately
$179,000 for the comparable prior period. The net loss in income is primarily attributable to a decrease in interest on mortgages and an increase in fees for professional services and administration and general expenses, as noted above.

Liquidity and Capital Resources

The Company
currently has no commitments for any material capital expenditures and does not anticipate any such expenditures in the foreseeable future.

The Company has agreed under the Master Agreement not to declare or pay any further dividends prior to the consummation of the transactions contemplated by the Master Agreement.

Critical Accounting Estimates

The Company estimates the carrying value of its land held for sale and
certain other investments. At June 30, 2007, the Company had made no provisions for impairment on any of its assets.



8



---

##### Table of Contents

|ITEM 3. | Controls and Procedures
|------- | -----------------------

As of the end of the
period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and
procedures pursuant to Rule 13a-5 of the Securities Exchange Act of 1934, as amended. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective to ensure
that information required to be disclosed in our reports that we file with or submit to the Securities and Exchange Commission (SEC) is recorded, processed, summarized and reported within the time periods specified in the SECs
rules and forms. There have been no significant changes in our internal controls over financial reporting that have materially affected or are reasonably likely to affect our internal controls over financial reporting.



9



---

##### Table of Contents

PART IIOTHER INFORMATION



|Item 1. | Legal Proceedings.
|------- | ------------------

None



|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds.
|------- | ------------------------------------------------------------

None



|Item 3. | Defaults Upon Senior Securities.
|------- | --------------------------------

None



|Item 4. | Submission of Matters to a Vote of Security Holders.
|------- | ----------------------------------------------------

None



|Item 5. | Other Information.
|------- | ------------------

None



|Item 6. | Exhibits.
|------- | ---------

Furnish the exhibits required by Item 601 of
Regulation S-B:

None



|     |  |                                                                                                                                      
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------
|31.1 |  | Certification of Chief Executive Officer pursuant to Item 601 (b)(31) of Regulation S-B (Filed herewith).                            
|     | 
|31.2 |  | Certification of Chief Financial Officer pursuant to Item 601 (b)(31) of Regulation S-B (Filed herewith).                            
|     | 
|32   |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Item 601 (b)(32) of Regulation S-B (Filed herewith).



10



---

##### Table of Contents

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.



|                |  |  |  |                                           
|--------------- |  |  |  | ------------------------------------------
|                |  |  |  | ARIZONA LAND INCOME CORPORATION           
|                |  | 
|August 14, 2007 |  |  |  | /S/ Thomas R. Hislop                      
|Date            |  |  |  | Thomas R. Hislop                          
|                |  |  |  | Vice President and Chief Financial Officer



11