SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549


                                   FORM 8-K


            CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934


               DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                                 May 18, 2001
--------------------------------------------------------------------------------



                      Avalon Correctional Services, Inc.
--------------------------------------------------------------------------------
            (Exact name of Registrant as specified in its Charter)


      Nevada                        0-20307                 13-3592263
-------------------------------------------------------------------------------
(State or other jurisdiction    (Commissission File No.)       (IRS Employer
of incorporation)                                           Identification No.)


                              13401 Railway Drive
--------------------------------------------------------------------------------
                  (Address of principal executive offices)         (Zip Code)

                                 405-752-8802
--------------------------------------------------------------------------------
             (Registrant's telephone number, including area code)









                                      1
<PAGE>


INFORMATION TO BE INCLUDED IN THE REPORT


ITEM 5.   OTHER EVENTS

Avalon Correctional  Services,  Inc., is issuing a press release to announce the
execution of an agreement with the Tulsa County  Criminal  Justice  Authority to
operate a public inebriate  alternative  program and to lease a facility for the
operation of multiple programs at the Tulsa, Oklahoma facility.

ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS

(c)   The following is filed as an Exhibit to this report:

      Exhibit No.       Description of Exhibit

      99.1              Press Release


SIGNATURE


     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.


AVALON CORRECTIONAL SERVICES, INC.



______________________________________
DONALD E. SMITH
Chairman of the Board and
Chief Executive Officer

Dated:   May 18, 2001



                                      2

<PAGE>

                                                                    Exhibit 99.1


Media Contact:
Tiffany Smith
13401 Railway Drive
Oklahoma City, Oklahoma 73114
Phone 405-752-8802, 1/800-919-9113
Fax 405-752-8852
Email: t_smith@avaloncorrections.net
Contact: Tiffany Smith, Vice President Corporate Communications

                         Avalon Continues Expansion -
                           360 New Beds in Oklahoma

Company awarded a contract to operate a Public Inebriant Alternative Program

OKLAHOMA  CITY,  Oklahoma,  May 21, 2001 - Avalon  Correctional  Services,  Inc.
(NASDAQ: CITY), announced today that it has entered into an agreement to develop
and operate a Public Inebriant Alternative Program in Tulsa, Oklahoma.  Southern
Corrections Systems,  Inc., a wholly owned subsidiary of Avalon has also entered
into an agreement to lease the vacant 360-bed Adult  Detention  Center in Tulsa,
Oklahoma.

The Company will utilize the facility to operate multiple programs including the
Public  Inebriant  Alternative  program for the Tulsa  County  Criminal  Justice
Authority.  Programs will also be provided for the Company's Private Pay Program
and a new Intermediate  Sanction Program.  All three programs have been designed
to provide  effective  programming and reduce the cost of incarceration  for the
Company's contract  agencies.  The Company projects the Public Inebriant Program
will  result in annual  cost  savings of  approximately  $1.2  million for Tulsa
County.

The Company will name the new facility the Riverside  Intermediate Sanction Unit
("Riverside ISU") and renovations are scheduled to begin immediately. Renovation
costs are projected to be  approximately  $1 million.  The Company's  annualized
revenues from the programs in the facility are projected to be $3 million.

"We're  pleased to introduce our services to the Tulsa County  Criminal  Justice
Authority,"  said Donald Smith,  Avalon  President and CEO. "Our success to date
has been  achieved  by  offering  effective  solutions  to  agencies  seeking an
alternative to the high cost of incarceration. We are pleased to be able to meet
this need for Tulsa County, and look forward to a long, rewarding relationship."

Avalon  Correctional  Services,  Inc.  is a leading  developer  and  manager  of
privatized community correctional facilities and correctional programming in the
United States.  Avalon currently has a total offender  capacity of 2,060 beds in
Oklahoma,  Colorado and Texas, in addition to specialized  programming for 1,000
offenders.   For  more  information   about  Avalon  contact  our  web  site  at
www.avaloncorrections.com or call 1-800-919-9113.

                                      3
<PAGE>


This press release may contain "forward-looking" statements made pursuant to the
safe harbor provisions of the Private Securities  Litigation Reform Act of 1995.
As such,  they  involve  risk and  uncertainty  that  actual  results may differ
materially from those projected in the forward-looking  statements. A discussion
of the important  factors and  assumptions  regarding the  statements  and risks
involved is contained in the Company's  filing with the  Securities and Exchange
Commission.

                                      4
[{"type": "8-K", "sequence": "1", "filename": "k8.txt", "description": "FORM 8-K", "secsgml_size_bytes": 5696}]
{"company-data": {"conformed-name": "AVALON CORRECTIONAL SERVICES INC", "cik": "0000872202", "assigned-sic": "8744", "irs-number": "133592263", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20307", "film-number": "1643877"}, "business-address": {"street1": "13401 RAILWAY DR", "street2": "P O BOX 57012", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73114", "phone": "4057528802"}, "mail-address": {"street1": "P O BOX 57012", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73157"}, "former-company": [{"former-conformed-name": "AVALON COMMUNITY SERVICES INC", "date-changed": "19930328"}, {"former-conformed-name": "AVALON ENTERPRISES INC", "date-changed": "19600201"}]}
SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

                                   FORM 8-K

            CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934

               DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)

                                 May 18, 2001
--------------------------------------------------------------------------------

                      Avalon Correctional Services, Inc.
--------------------------------------------------------------------------------
            (Exact name of Registrant as specified in its Charter)

      Nevada                        0-20307                 13-3592263
-------------------------------------------------------------------------------
(State or other jurisdiction    (Commissission File No.)       (IRS Employer
of incorporation)                                           Identification No.)

                              13401 Railway Drive
--------------------------------------------------------------------------------
                  (Address of principal executive offices)         (Zip Code)

                                 405-752-8802
--------------------------------------------------------------------------------
             (Registrant's telephone number, including area code)

                                      1
INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 5.   OTHER EVENTS

Avalon Correctional  Services,  Inc., is issuing a press release to announce the
execution of an agreement with the Tulsa County  Criminal  Justice  Authority to
operate a public inebriate  alternative  program and to lease a facility for the
operation of multiple programs at the Tulsa, Oklahoma facility.

ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS

(c)   The following is filed as an Exhibit to this report:

      Exhibit No.       Description of Exhibit

      99.1              Press Release

SIGNATURE

     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.

AVALON CORRECTIONAL SERVICES, INC.

______________________________________
DONALD E. SMITH
Chairman of the Board and
Chief Executive Officer

Dated:   May 18, 2001

                                      2
Exhibit 99.1

Media Contact:
Tiffany Smith
13401 Railway Drive
Oklahoma City, Oklahoma 73114
Phone 405-752-8802, 1/800-919-9113
Fax 405-752-8852
Email: t_smith@avaloncorrections.net
Contact: Tiffany Smith, Vice President Corporate Communications

                         Avalon Continues Expansion -
                           360 New Beds in Oklahoma

Company awarded a contract to operate a Public Inebriant Alternative Program

OKLAHOMA  CITY,  Oklahoma,  May 21, 2001 - Avalon  Correctional  Services,  Inc.
(NASDAQ: CITY), announced today that it has entered into an agreement to develop
and operate a Public Inebriant Alternative Program in Tulsa, Oklahoma.  Southern
Corrections Systems,  Inc., a wholly owned subsidiary of Avalon has also entered
into an agreement to lease the vacant 360-bed Adult  Detention  Center in Tulsa,
Oklahoma.

The Company will utilize the facility to operate multiple programs including the
Public  Inebriant  Alternative  program for the Tulsa  County  Criminal  Justice
Authority.  Programs will also be provided for the Company's Private Pay Program
and a new Intermediate  Sanction Program.  All three programs have been designed
to provide  effective  programming and reduce the cost of incarceration  for the
Company's contract  agencies.  The Company projects the Public Inebriant Program
will  result in annual  cost  savings of  approximately  $1.2  million for Tulsa
County.

The Company will name the new facility the Riverside  Intermediate Sanction Unit
("Riverside ISU") and renovations are scheduled to begin immediately. Renovation
costs are projected to be  approximately  $1 million.  The Company's  annualized
revenues from the programs in the facility are projected to be $3 million.

"We're  pleased to introduce our services to the Tulsa County  Criminal  Justice
Authority,"  said Donald Smith,  Avalon  President and CEO. "Our success to date
has been  achieved  by  offering  effective  solutions  to  agencies  seeking an
alternative to the high cost of incarceration. We are pleased to be able to meet
this need for Tulsa County, and look forward to a long, rewarding relationship."

Avalon  Correctional  Services,  Inc.  is a leading  developer  and  manager  of
privatized community correctional facilities and correctional programming in the
United States.  Avalon currently has a total offender  capacity of 2,060 beds in
Oklahoma,  Colorado and Texas, in addition to specialized  programming for 1,000
offenders.   For  more  information   about  Avalon  contact  our  web  site  at
www.avaloncorrections.com or call 1-800-919-9113.

                                      3
This press release may contain "forward-looking" statements made pursuant to the
safe harbor provisions of the Private Securities  Litigation Reform Act of 1995.
As such,  they  involve  risk and  uncertainty  that  actual  results may differ
materially from those projected in the forward-looking  statements. A discussion
of the important  factors and  assumptions  regarding the  statements  and risks
involved is contained in the Company's  filing with the  Securities and Exchange
Commission.

                                      4