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)

                                October 11, 2002
 ------------------------------------------------------------------------------



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


  Nevada                               0-20307                   13-3592263
 ------------------------------------------------------------------------------
(State or other jurisdiction      (Commission 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., (the "Company") through its subsidiary
Southern  Corrections  Systems,  Inc.,  is the  operator  of a  medium  security
residential  treatment center in Union City, Oklahoma.  The Company contracts to
provide  services  for 80  juvenile  offenders  at the  facility  pursuant  to a
contract  with the  Department  of Central  Services,  an agency of the State of
Oklahoma.  The contract was originally  executed in 1998, with four optional one
year renewal periods.  The fourth year renewal of the Union City Juvenile Center
contract  was due to occur on  December  3,  2002,  for the  renewal  period  of
December  3, 2002,  through  December 2, 2003.  The  contract  renewal  price is
$3,871,554.36.

     On  October  11,  2002,  the Board of  Juvenile  Affairs,  the  supervising
authority of the Office of Juvenile  Affairs,  adopted a resolution  electing to
not renew the Union City contract  beyond January 1, 2003. The Board of Juvenile
Affairs has stated that the Office of Juvenile  Affairs must make  reductions in
its budget,  and the Board has  elected to not renew the Union City  contract in
order to reduce its budget.

     The Company vigorously opposed this proposal.  Information  prepared by the
Oklahoma Department of Juvenile Affairs reflects the Union City Juvenile Center,
a facility accredited by the American Correctional Association, is the most cost
effective secure facility in the state and has the highest success rate measured
in terms of program  completion and recidivism rates within the Juvenile Affairs
system.

     The  Company  continues  to  protest  this  decision.  The  Company is also
exploring alternative populations for the facility.

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.

s// Donald E.  Smith
DONALD E. SMITH
Chairman of the Board and Chief Executive Officer

Dated:   October 11, 2002


                                    2
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{"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": "02787336"}, "business-address": {"street1": "13401 RAILWAY DR", "street2": "13401 RAILWAY DRIVE", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73114", "phone": "4057528802"}, "mail-address": {"street1": "13401 RAILWAY DRIVE", "city": "OKLAHOMA CITY", "state": "OK", "zip": "73114"}, "former-company": [{"former-conformed-name": "AVALON ENTERPRISES INC", "date-changed": "19600201"}, {"former-conformed-name": "AVALON COMMUNITY SERVICES INC", "date-changed": "19930328"}]}
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)

                                October 11, 2002
 ------------------------------------------------------------------------------

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

  Nevada                               0-20307                   13-3592263
 ------------------------------------------------------------------------------
(State or other jurisdiction      (Commission 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., (the "Company") through its subsidiary
Southern  Corrections  Systems,  Inc.,  is the  operator  of a  medium  security
residential  treatment center in Union City, Oklahoma.  The Company contracts to
provide  services  for 80  juvenile  offenders  at the  facility  pursuant  to a
contract  with the  Department  of Central  Services,  an agency of the State of
Oklahoma.  The contract was originally  executed in 1998, with four optional one
year renewal periods.  The fourth year renewal of the Union City Juvenile Center
contract  was due to occur on  December  3,  2002,  for the  renewal  period  of
December  3, 2002,  through  December 2, 2003.  The  contract  renewal  price is
$3,871,554.36.

     On  October  11,  2002,  the Board of  Juvenile  Affairs,  the  supervising
authority of the Office of Juvenile  Affairs,  adopted a resolution  electing to
not renew the Union City contract  beyond January 1, 2003. The Board of Juvenile
Affairs has stated that the Office of Juvenile  Affairs must make  reductions in
its budget,  and the Board has  elected to not renew the Union City  contract in
order to reduce its budget.

     The Company vigorously opposed this proposal.  Information  prepared by the
Oklahoma Department of Juvenile Affairs reflects the Union City Juvenile Center,
a facility accredited by the American Correctional Association, is the most cost
effective secure facility in the state and has the highest success rate measured
in terms of program  completion and recidivism rates within the Juvenile Affairs
system.

     The  Company  continues  to  protest  this  decision.  The  Company is also
exploring alternative populations for the facility.

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.

s// Donald E.  Smith
DONALD E. SMITH
Chairman of the Board and Chief Executive Officer

Dated:   October 11, 2002

                                    2