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

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

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)

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

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

Balance Sheets

June 30, 2002 and December 31, 2001
(unaudited)

See accompanying notes to financial statements.

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

Balance Sheets
(continued)

June 30, 2002 and December 31, 2001
(unaudited)

Liabilities and Partners' Capital

See accompanying notes to financial statements.

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

Statements of Operations

For the three and six months ended June 30, 2002 and 2001
(unaudited)

See accompanying notes to financial statements.

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

Statements of Operations
(continued)

For the three and six months ended June 30, 2002 and 2001
(unaudited)

See accompanying notes to financial statements.

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

Statements of Cash Flows

For the six months ended June 30, 2002 and 2001
(unaudited)

See accompanying notes to financial statements.

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

Notes to Financial Statements

June 30, 2002
(unaudited)

Readers of this Quarterly Report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2001, which are included in the Partnership's 2001 Annual Report, as certain footnote disclosures which would duplicate those contained in such audited financial statements have been omitted from this Report.

(1)  Organization and Basis of Accounting

The Registrant, Inland Land Appreciation Fund, L.P. (the "Partnership"), was formed in October 1987, pursuant to the Delaware Revised Uniform Limited Partnership Act, to invest in undeveloped land on an all-cash basis and realize appreciation of such land upon resale. On October 12, 1988, the Partnership commenced an Offering of 10,000 (subject to increase to 30,000) Limited Partnership Units ("Units") pursuant to a Registration Statement on Form S-11 under the Securities Act of 1933. Inland Real Estate Investment Corporation is the General Partner. The Offering terminated on October 6, 1989, with total sales of 30,000 Units, at $1,000 per Unit, not including the General Partner or the Initial Limited Partner. All of the holders of these Units have been admitted to this Partnership. The Limited Partners of the Partnership share in their portion of benefits of ownership of the Partnership's real property investments according to the number of Units held. As of June 30, 2002, the Partnership has repurchased a total of 407.75 Units for $359,484 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.

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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

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.

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

Notes to Financial Statements
(continued)

June 30, 2002
(unaudited)

(2)  Transactions with Affiliates

The General Partner and its Affiliates are entitled to reimbursement for salaries and expenses of employees of the General Partner and its Affiliates relating to the administration of the Partnership. Such costs are included in professional services and general and administrative expenses to Affiliates, of which $5,000 and $3,342 were unpaid as of June 30, 2002 and December 31, 2001, respectively.

An Affiliate of the General Partner performed marketing and advertising services for the Partnership and was reimbursed (as set forth under terms of the Partnership Agreement) for direct costs. Such costs of $7,736 and $9,187 have been incurred and are included in marketing expenses to Affiliates for the six months ended June 30, 2002 and 2001, respectively. As of June 30, 2002 and December 31, 2001, all of such fees were paid.

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.

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Initial Costs
	Illinois	Gross Acres Purchased	Purchase/Sales		Original	Acquisition	Total	Costs Capitalized Subsequent to	Costs of Property	Total Remaining Costs of Parcels at	Current Year Gain on Sale
Parcel	County	(Sold)	Date		Costs	Costs	Costs	Acquisition	Sold	06/30/02	Recognized
1	Kendall	84.7360	01/19/89	$	423,680	61,625	485,305	5,462,589	5,947,894	-	-
		(3.5200)	12/24/96
		(.3520)	11/25/97
		(80.8640)	12/29/97
2	McHenry	223.4121	01/19/89		650,000	95,014	745,014	26,816	771,830	-	-
		(183.3759)	12/27/90
		(40.0362)	05/11/00
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	743,942	478,324	811,940	83,900
		(.4860)	02/28/91
		(27.5750)	08/25/95
		(3.9500)	11/01/00
		(4.4000)	Var 2001
		(2.1400)	Var 2002
5	Kendall (a)	372.2230	05/03/89		2,532,227	135,943	2,668,170	443,936	160,313	2,951,793	-
		Option)	04/06/90
6	Kendall (b)	78.3900	06/21/89		416,783	31,691	448,474	922,317	-	1,370,791	-
7	Kendall (b)	77.0490	06/21/89		84,754	8,163	92,917	891,402	-	984,319	-
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	27,262	-	636,589	-

Initial Costs
	Illinois	Gross Acres Purchased					Purchase/Sales												Original				Acquisition				Total						Costs Capitalized Subsequent to								Costs of Property										Total Remaining Costs of Parcels at						Current Year Gain on Sale
Parcel	County	(Sold)					Date												Costs				Costs				Costs						Acquisition								Sold										06/30/02						Recognized
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						30,119				-								373,976								-
12	Kendall	90.2710					10/31/89												907,389						41,908						949,297						156,168						7,456								1,098,009						-
		(.7090)					04/26/91
13	McHenry	92.7800					11/07/89												251,306						19,188						270,494						18,745						289,239								-						-
		(2.0810)					09/18/97
		(90.6990)							02/15/01
14	McHenry	76.2020							11/07/89										419,111						23,402						442,513						61,513						-						504,026										-
15	Lake	84.5564							01/03/90										1,056,955						85,283						1,142,238						1,661,344						2,803,582						-										-
		(10.5300)							Var 1996
		(5.4680)							Var 1997
		(68.5584)							Var 1998
16	Kane/Kendall	72.4187							01/29/90										1,273,537						55,333						1,328,870						692,933						1,201,401						820,402										-
		(30.9000)							07/10/98
		(10.3910)							12/15/99
		(3.1000)							12/12/00
17	McHenry	99.9240							01/29/90										739,635						61,038						800,673						558,079						320,961						1,037,791										-
		(27.5100)							01/29/99
18	McHenry	71.4870							01/29/90										496,116						26,259						522,375						66,478						11,109						577,744										-
		(1.0000)							Var 1990
		(.5200)							03/11/93

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Initial Costs
		Illinois	Gross Acres Purchased		Purchase/Sales			Original	Acquisition		Total	Costs Capitalized Subsequent to		Costs of Property	Total Remaining Costs of Parcels at	Current Year Gain on Sale
Parcel		County	(Sold)		Date			Costs	Costs		Costs	Acquisition		Sold	06/30/02	Recognized
19		McHenry	63.6915			02/23/90	$	490,158	29,158	519,316		27,718	-		547,034	-
20		Kane	224.1480			02/28/90		2,749,800	183,092	2,932,892		1,690,987	3,651		4,620,228	-
			(.2790)			10/17/91
21		Kendall	172.4950			03/08/90		1,327,459	75,822	1,403,281		954,415	2,357,696		-	-
			(172.4950)			Var 1998
22	McHenry			254.5250		04/11/90		2,608,881	136,559	2,745,440		89,526	-		2,834,966	-
23	Kendall			140.0210		05/08/90		1,480,000	116,240	1,596,240		909,395	2,505,635		-	-
				(4.4100)		Var 1993
				(35.8800)		Var 1994
				(3.4400)		Var 1995
				(96.2910)		08/26/99
24	Kendall			298.4830		05/23/90		1,359,774	98,921	1,458,695		43,153	83,663		1,418,185	-
				(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		29,344	-		2,798,122	-
	Totals						$	23,624,761	1,562,308	25,187,069		15,508,781	17,309,935		23,385,915	83,900
								==========	=========	==========		==========	==========		==========	=========

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

Notes to Financial Statements

June 30, 2002
(unaudited)

(3) Investments in Land and Improvements (continued)

1. 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.
2. The Partnership purchased from two independent 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.
3. Reconciliation of investments in land and improvements owned:

(4) Farm Rental Income

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

As of June 30, 2002, the Partnership had farm leases of generally one year in duration, for approximately 1,848 acres of the approximately 2,025 acres owned.

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

Notes to Financial Statements

June 30, 2002
(unaudited)

(5)  Mortgage Loans Receivable

Mortgage loans receivable are the result of sales of Parcels, in whole or in part. The Partnership has recorded a deferred gain on these sales. The deferred gain will be recognized over the life of the related mortgage loan receivable as principal payments are received. At June 30, 2002, the fair market value of the mortgage loans receivable approximated their carrying value.

*  Management is in discussions to extend the term to December 31, 2003

(6)  Notes Payable to Affiliate

On December 31, 1998, the Partnership obtained a loan from the General Partner in the amount of $2,493,750 solely collateralized by Parcel 5. In January, 2002, the General Partner advanced an additional $7,234. The note accrues interest at 7.2% and has a maturity date which was extended to December 29, 2002. For the six months ended June 30, 2002, interest of $72,048 was capitalized, all of which was unpaid as of June 30, 2002.

On December 6, 2000, the Partnership obtained a loan from the General Partner in the amount of $1,500,000 collateralized by Parcels 17, 18 and 22. The note accrues interest at 8.75% and has a maturity date of November 30, 2003. For the six months ended June 30, 2002, interest of $65,989 was capitalized, all of which was unpaid as of June 30, 2002.

On May 9, 2002, the General Partner advanced the Partnership a loan in the amount of $200,000. The note accrues interest at 10%.

At June 30, 2002, the fair market value of the notes payable to Affiliate approximated their carrying value.

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

Liquidity and Capital Resources

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

The Partnership used $25,187,069 of gross offering proceeds to purchase on an all-cash basis twenty-five parcels of undeveloped land and an option to purchase undeveloped land. These investments include the payment of the purchase price, acquisition fees and acquisition costs of such properties. Fourteen of the parcels were purchased during 1989 and eleven during 1990. As of June 30, 2002, the Partnership has had multiple sales transactions, through which it has disposed of approximately 1,077 acres of the approximately 3,102 acres originally owned. As of June 30, 2002, cumulative distributions to the Limited Partners have totaled $13,573,623 (which represents a return of Invested Capital, as defined in the Partnership Agreement) and $153,743 to the General Partner. Through June 30, 2002, the Partnership has used $15,508,781 of working capital reserve for rezoning and other activities. Such amounts have been capitalized and are included in investments in land.

The Partnership's capital needs and resources will vary depending upon a number of factors, including the extent to which the Partnership conducts rezoning and other activities relating to utility access, the installation of roads, subdivision and/or annexation of land to a municipality, changes in real estate taxes affecting the Partnership's land, and the amount of revenue received from leasing. As of June 30, 2002, the Partnership owns, in whole or in part, sixteen 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.

At June 30, 2002, the Partnership had cash and cash equivalents of $222,343, of which approximately $44,000 is reserved for the repurchase of Units through the Unit Repurchase Program. The remaining amount is available to be used for Partnership expenses and liabilities, cash distributions to partners and other activities with respect to some or all of its land parcels. The Partnership has increased its parcel sales effort in anticipation of rising land values.

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The Partnership plans to enhance the value of its land through pre-development activities such as rezoning annexation and land planning. The Partnership has already been successful in, or is in the process of pre-development activity on a majority of the Partnership's land investments. Parcels 4, 6 and 7 have completed two phases of improvements for an industrial park and sites are being marketed. Parcel 16 has been zoned with development and sales marketing underway. Zoning discussions have begun on Parcel 12, 17, 18 and 22.

Results of Operations

As of June 30, 2002, the Partnership owned sixteen parcels of land consisting of approximately 2,025 acres. Of the 2,025 acres owned, approximately 1,848 acres are tillable, leased to local farmers and generate sufficient cash flow to cover property taxes, insurance and other miscellaneous expenses.

Income from the sale of investment in land and improvements and the cost of land sold for the six months ended June 30, 2002 is the result of the sale of approximately 2 acres of Parcel 4. Income from the sale of investments in land and improvements and the cost of land sold for the six months ended June 30, 2001 is the result of the sale of approximately 2.3 acres of Parcel 4.

Professional services to Affiliates increased for the six months ended June 30, 2002, as compared to the six months ended June 30, 2001, due to an increase in legal services.

General and administrative expenses to Affiliates decreased for the six months ended June 30, 2002, as compared to the six months ended June 30, 2001, due to decreases in postage and investor service expenses.

Marketing expenses to non-affiliates increased for the six months ended June 30, 2002, as compared to the six months ended June 30, 2001, due to an increase in marketing, advertising and travel expenses relating to marketing the land portfolio to prospective purchasers.

Land operating expenses to non-affiliates decreased for the six months ended June 30, 2002, as compared to the six months ended June 30, 2001, due to a decrease in real estate tax expense as a result of the capitalization of real estate taxes on parcels under development.

As of June 30, 2002, the Partnership has recorded an allowance for doubtful accounts of $593,794 relating to the accrued interest receivable on mortgage loans resulting from the sale of various parcels.

PART II - Other Information

Items 1 through 6(b) are omitted because of the absence of conditions under which they are required.

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

	INLAND LAND APPRECIATION FUND, L.P.
By:	Inland Real Estate Investment Corporation
	General Partner
	/S/ ROBERT D. PARKS
By:	Robert D. Parks
	Chairman
Date:	August 1, 2002
	/S/ PATRICIA A. DELROSSO
By:	Patricia A. DelRosso
	Senior Vice President
Date:	August 1, 2002
	/S/ KELLY TUCEK
By:	Kelly Tucek
	Principal Financial Officer and
	Principal Accounting Officer
Date:	August 1, 2002

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