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SCHEDULE 14A INFORMATION
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Merry Land & Investment Company, Inc.
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(Name of Registrant as Specified in Its Charter)
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NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
APRIL 20, 1998

TO THE SHAREHOLDERS OF MERRY LAND & INVESTMENT COMPANY, INC.

The Annual Meeting of Shareholders of Merry Land & Investment Company,
Inc. will be held at the RADISSON RIVERFRONT CENTER, TWO TENTH STREET,
AUGUSTA, GEORGIA, ON MONDAY, APRIL 20, 1998, AT 10:00 A.M. for the
following purposes:

1. TO ELECT SEVEN DIRECTORS TO HOLD OFFICE UNTIL THE NEXT ANNUAL MEETING OF
SHAREHOLDERS OR UNTIL THEIR SUCCESSORS ARE ELECTED AND QUALIFIED.

2. TO TRANSACT SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING
OR ANY ADJOURNMENT.

The close of business on March 2, 1998 has been set by the directors as the
record date for determination of the shareholders of the Company who are
entitled to notice of and to vote at the meeting. A copy of the 1997 Annual
Report is enclosed.

ALL SHAREHOLDERS, ESPECIALLY THOSE WHO DO NOT EXPECT TO ATTEND THE MEETING
IN PERSON, ARE REQUESTED TO DATE, VOTE AND SIGN THE ENCLOSED PROXY CARD,
INDICATING ANY VOTING INSTRUCTIONS, AND TO RETURN IT IN THE ACCOMPANYING
ENVELOPE.

By order of the Board of Directors,

W. HALE BARRETT
Secretary

March 23, 1998

PLEASE VOTE AND RETURN THE ENCLOSED

PROXY CARD PROMPTLY

MERRY LAND & INVESTMENT COMPANY, INC.
---------------
PROXY STATEMENT
---------------

GENERAL This proxy statement is furnished in connection with the
solicitation of proxies on behalf of the Board of Directors to be used at
the Annual Meeting of Shareholders of Merry Land & Investment Company, Inc.
to be held Monday, April 20, 1998 at the Radisson Riverfront Center, Two
Tenth Street, Augusta, Georgia at 10:00 A.M. The Company's principal
executive offices are located at 624 Ellis Street, Augusta, Georgia 30901
and its telephone number is 706/722-6756. This Proxy Statement and the
enclosed proxy are being first mailed to the Company's Shareholders on or
about March 23, 1998.

VOTING When proxies are properly executed and returned, the shares of
common stock they represent will be voted or abstained at the meeting in
accordance with any directions noted. If no directions are noted, they will be
voted to elect the directors nominated by the Board. The Company's management
knows of no other matters to be presented or considered at the meeting;
however, the proxies named shall have discretionary authority to vote on any
other matter which may properly be presented at the meeting. In addition, the
proxies named shall have the authority to vote for any person for election as a
director in lieu of any person nominated if the nominee is unable to serve. It
is not contemplated that any nominee will be unable to serve.

The following rules govern voting at the Annual Meeting:

A majority of the shares of common stock entitled to vote will
constitute a quorum. Shares of common stock are counted for quorum purposes
if they are represented for any purpose at the meeting other than solely to
object to holding the meeting or transacting business at the meeting.
Shares of preferred stock are not entitled to vote.

For the election of directors a quorum must be present, either in
person or by proxy, and a PLURALITY of the shares voting must vote in the
affirmative.

Abstentions and broker non-votes are neither counted for purposes
of determining the number of affirmative votes required for the election of
directors nor voted for or against matters presented for shareholder
consideration. Consequently, so long as a quorum is present, abstentions and
broker non-votes have no effect on the outcome of any vote.

REVOCATION OF PROXIES Execution of the enclosed proxy will not affect the
shareholder's right to attend the meeting and vote in person. A shareholder may
revoke a proxy at any time before it is voted.

SOLICITATION The accompanying proxy is solicited by the Company. The
expense of solicitation, which is not expected to exceed the normal expense of
a proxy solicitation for a meeting at which directors are elected, will be
borne by the Company.

DIRECTORS

All directors of the Company are elected annually for terms of one year and
hold office until their successors are elected and qualify. Unless instructed
to the contrary, the accompanying proxy will be voted to elect as directors the
persons named in the table below.

The Company's Bylaws provide for a Board of Directors consisting of not less
than three nor more than fifteen members. The number of directors is fixed at
seven for the current year. The proxies may not be voted for more than seven
directors.

The table below shows the names and ages of all directors, their position
with the Company, the period they have served as directors, the committees on
which they serve, the amount and percentage of common stock beneficially owned
and their business experience during the past five years. All of the following
directors are nominated for re-election.

NAME, BUSINESS AGE POSITION DIRECTOR COMMON
EXPERIENCE AND WITH COMPANY SINCE STOCK BENEFICIALLY OWNED(1)
COMMITTEES

AMOUNT PERCENTAGE(2)
W. HALE BARRETT 69 Secretary and 1969 34,356 (3)(4) 0.09%
Director
Member of law firm of Hull, Towill, Norman & Barrett, P.C., counsel to the Company. Executive
Committee.

W. TENNENT HOUSTON 47 President, Chief 1986 451,414 (5)(6) 1.1%
Executive Officer and
Director
President of the Company since 1985. Employee of the Company since 1981. Executive Committee.

ROBERT P. KIRBY 61 Director 1997 15,000 (4) 0.04%
Chief Executive Officer, Castleberry/Snow's Brands, Inc., Augusta, Georgia. Director of Gibson
Greetings, Inc. and Community Coffee Company, Inc. Audit and Compensation Committee.

BOONE A. KNOX 62 Chairman of the Board 1996 2,829,619 (7) 7.1%
Chairman of the Board of the Company since 1996. Chairman of the Board of Regions Bank, Central
Georgia. Director of Cousins Properties Incorporated. Executive Committee.

HUGH CALVIN LONG II 46 Director 1994 24,596 (4)(8) 0.06%
Capital Area President, First Union National Bank. Previously Regional Executive Vice President
of First Union National Bank of Georgia. Audit and Compensation Committee.

PAUL S. SIMON 66 Director 1997 16,000 (4) 0.04%
Retired President, Morris Communications Corporation, Augusta, Georgia. Audit and Compensation
Committee.

MICHAEL N. THOMPSON 49 Executive Vice 1996 285,037 (9)(10) 0.7%
President, Chief
Operating Officer
and Director
Executive Vice President of the Company since January, 1997 and Vice President of the Company
since August, 1992. Employee of the Company since February, 1992. President of Thompson &
Wright, Inc., asset managers, from November, 1990 to January, 1992. Previously Executive Vice
President, Great Southern Federal Savings Bank. Executive Committee.

(1) The shares shown were owned directly by the named person as of March 2,
1998 unless otherwise indicated.
(2) Assumes 40,046,847 shares outstanding, including 39,496,847 shares
outstanding as of March 2, 1998, and 550,000 shares issuable upon
exercise of presently exercisable stock options held by Messrs. Houston
and Thompson and the Company's other executive officers.
(3) Includes 100 shares owned by Mr. Barrett's wife.
(4) Messrs. Barrett, Long, Kirby and Simon each purchased Company common
stock at the market price with full recourse, interest free loans
under the Stock Loan Program. They each purchased 10,000 shares of
Company common stock on 1/17/97 at the market price of $21.50 by
borrowing $215,000; and 5,000 shares of Company common stock
purchased on 1/26/98 at the market price of $22.59 by borrowing
$112,969. The maximum outstanding principal balance of Messrs.
Barrett, Long, Kirby and Simon's loans totaled $215,000 in 1997 and
totaled $318,609 on 3/2/98 for each director.
(5) Includes 19,235 shares held in Mr. Houston's account in the Company's
Employee Stock Ownership Plan ("ESOP"). Includes 74,695 shares in the
ESOP which have not been allocated to the account of any Company
employee and for which Mr. Houston holds voting power as sole trustee of
the ESOP. Includes 135,000 shares issuable upon exercise of presently
exercisable stock options.
(6) Mr. Houston has purchased Company common stock at the market price with
full recourse, interest free loans under the Company's stock loan
program ("Stock Loan Program"). Mr. Houston purchased 25,000 shares on
9/14/92 at the market price of $10.75 per share by borrowing
$268,750; 15,000 shares on 1/11/93 at the market price of $15.50
per share by borrowing $232,500; 25,000 shares on 9/1/93 at the
market price of $18.75 per share by borrowing $468,750; 25,000 shares
on 3/14/94 at the market price of $20.88 per share by borrowing
$521,875; 35,000 shares on 6/15/95 at the market price of $19.00 per
share by borrowing $665,000; and 50,000 shares on 1/26/98 at the market
price of $22.59 per share by borrowing $1,129,688. The maximum
outstanding principal balance of loans to Mr. Houston under the Stock
Loan Program totaled $1,774,190 in 1997, $1,898,138 in 1996 and
$1,986,075 in 1995 and totaled $2,783,463 on March 2, 1998. The
Company has also extended Mr. Houston interest free, full recourse
loans to exercise incentive stock options. The maximum outstanding
principal balance of these loans totaled $24,589 in 1997, $38,471 in
1996 and $51,603 in 1995 and totaled $13,809 on March 2, 1998.
(7) See "Voting Securities and Principal Holders".
(8) Includes 6,096 shares owned by Mr. Long's wife and children. Mr. Long
disclaims beneficial ownership of the shares owned by his wife and
children.
(9) Includes 7,163 shares owned by Mr. Thompson's wife and children.
Includes 104,000 shares issuable upon exercise of presently
exercisable stock options. Includes 4,441 shares held in Mr.
Thompson's account in the Company's ESOP.
(10) Mr. Thompson has purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program. Mr.
Thompson purchased 15,000 shares on 9/14/92 at the market price of
$10.75 per share by borrowing $161,250; 15,000 shares on 1/11/93 at
the market price of $15.50 per share by borrowing $232,500; 15,000
shares on 9/1/93 at the market price of $18.75 per share by
borrowing $281,250; 20,000 shares on 3/14/94 at the market price of
$20.88 per share by borrowing $417,500; 30,000 shares on 6/15/95 at
the market price of $19.00 per share by borrowing $570,000; and
50,000 shares on 1/26/98 at the market price of $22.59 per share by
borrowing $1,129,688. The maximum outstanding principal balance of
loans to Mr. Thompson under the Stock Loan Program totaled
$1,379,617 in 1997, $1,473,818 in 1996 and $1,540,650 in 1995
and totaled $2,417,790 on March 2, 1998. The Company has also
extended Mr. Thompson interest free, full recourse loans to
exercise incentive stock options. The maximum outstanding principal
balance of these loans totaled $16,920 in 1997, $20,886 in 1996 and
$24,638 in 1995 and totaled $13,066 on March 2, 1998.

EXECUTIVE OFFICERS

All executive officers of the Company are elected annually for terms of one
year and hold office until their successors are elected and qualify. The table
below shows the names and ages of all executive officers who are not directors,
their position with the Company, the period they have served as executive
officers, the amount and percentage of common stock beneficially owned and
their business experience during the past five years.

NAME AND BUSINESS AGE POSITION COMMON
EXPERIENCE WITH COMPANY STOCK BENEFICIALLY OWNED(1)

AMOUNT PERCENTAGE(2)
JOHN W. GIBSON 46 Senior Vice President 114,300 (3)(4) 0.3%
Elected Senior Vice President upon joining the Company in January, 1997. Previously member of
law firm of Hull, Towill, Norman & Barrett, P.C., counsel to the Company.

JOSEPH P. BAILEY III 39 Vice President 175,627 (5)(6) 0.4%
Vice President of the Company since August, 1992. Employee of the Company since 1989.

RONALD J. BENTON 40 Vice President 190,547 (7)(8) 0.5%
Vice President of the Company since January, 1995. Controller of the Company since January, 1986.
Employee of the Company since 1984.

J. RUSS DAVIS, JR. 38 Vice President 85,000 (9)(10) 0.2%
Vice President of the Company since joining in May, 1997. Previously President and Chief
Operating Officer of Trammell Crow Residential Services, Midwest, Chicago.

DORRIE E. GREEN 39 Vice President and 139,104 (11)(12) 0.3%
Chief Financial Officer
Named Chief Financial Officer in January, 1998. Vice President of the Company since January,
1995. Employee of the Company since 1994. Chief Financial Officer of JG Financial Management
Services from September, 1992 to October, 1994. Vice President of Heritage Property Company from
August, 1991 to September, 1992. Previously Chief Financial Officer of North and West Florida
Divisions of Trammell Crow Residential Company.

RALPH J. SIMONS, JR. 33 Vice President 158,846 (13)(14) 0.4%
Vice President of the Company since January, 1995. Employee of the Company since 1990.

(7) Includes 1,171 shares owned by Mr. Benton's wife. Includes 75,500
shares issuable upon exercise of presently exercisable stock
options. Includes 9,787 shares held in Mr. Benton's account in the
Company's ESOP.
(8) Mr. Benton has purchased Company common stock at the market price
with full recourse, interest free loans under the Stock Loan
Program. Mr. Benton purchased 10,000 shares on 9/14/92 at the market
price of $10.75 per share by borrowing $107,500; 10,000 shares on
1/11/93 at the market price of $15.50 per share by borrowing
$155,000; 10,000 shares on 3/14/94 at the market price of $20.88 per
share by borrowing $208,750; 24,000 shares on 6/15/95 at the market
price of $19.00 per share by borrowing $456,000; and 25,000 shares
on 1/26/98 at the market price of $22.59 per share by borrowing
$564,844. The maximum outstanding principal balance of loans to Mr.
Benton under the Stock Loan Program totaled $776,215 in 1997 and
totaled $1,289,040 on 3/2/98. The Company has also extended Mr.
Benton interest free, full recourse loans to exercise incentive
stock options. The maximum outstanding principal balance of these
loans totaled $30,169 in 1997 and totaled $15,213 on 3/2/98.
(9) Includes 10,000 shares issuable upon exercise of presently
exercisable stock options.
(10) Mr. Davis purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program. Mr.
Davis purchased 50,000 shares at the market price of $21.13 per share
on 5/12/97 by borrowing $1,056,250; and 25,000 shares at the market
price of $22.59 per share on 1/26/98 by borrowing $564,844.
The maximum outstanding principal balance of the loans to Mr. Davis
under the Stock Loan Program totaled $1,056,250 in 1997 and totaled
$1,585,994 on 3/2/98.
(11) Includes 54,000 shares issuable upon exercise of presently
exercisable stock options. Includes 78 shares owned by Mr. Green's
children and 1,026 shares held in Mr. Green's account in the
Company's ESOP.
(12) Mr. Green has purchased Company common stock at the market price
with full recourse, interest free loans under the Stock Loan Program.
Mr. Green purchased 10,000 shares at the market price of $17.50 per
share on 12/15/94 by borrowing $175,000, 24,000 shares on 6/15/95
at the market price of $19.00 per share by borrowing $456,000; 20,000
shares on 3/14/96 at the market price of $22.63 by borrowing
$452,500; and 30,000 shares on 1/26/98 at the market price of $22.59
per share by borrowing $677,813. The maximum outstanding principal
balance of the loans to Mr. Green under the Stock Loan Program
totaled $1,001,345 in 1997, $1,031,093 in 1996, and $626,310 in
1995 and totaled $1,627,139 on 3/2/98.
(13) Includes 60,000 shares issuable upon exercise of presently
exercisable stock options. Includes 3,486 shares held in Mr. Simons'
account in the Company's ESOP.
(14) Mr. Simons has purchased Company common stock at the market price
with full recourse, interest free loans under the Stock Loan
Program. Mr. Simons purchased 10,000 shares on 9/14/92 at the market
price of $10.75 per share by borrowing $107,500; 10,000 shares on
1/11/93 at the market price of $15.50 per share by borrowing
$155,000; 20,000 shares on 3/14/94 at the market price of $20.88 per
share by borrowing $417,500; 24,000 shares on 6/15/95 at the market
price of $19.00 per share by borrowing $456,000; and 25,000 shares
on 1/26/98 at the market price of $22.59 per share by borrowing
$564,844. The maximum outstanding principal balance of loans to Mr.
Simons under the Stock Loan Program totaled $955,314 in 1997 and
totaled $1,458,506 on 3/2/98. The Company has also extended Mr.
Simons interest free, full recourse loans to exercise incentive
stock options. The maximum outstanding principal balance of these
loans totaled $16,920 in 1997 and totaled $13,066 on 3/2/98.

THE BOARD AND ITS COMMITTEES

The Board met five times in 1997. The Board maintains an
Executive Committee and an Audit and Compensation Committee but no
nominating committee. The Executive Committee is empowered to
conduct the business of the Company between Board meetings and met
eleven times in 1997. The Audit and Compensation Committee
supervises the Company's independent public accounting firm and
determines the compensation for the Executive Officers of the
Company. They met once in 1997. All directors attended all of the
meetings of the Board and the committees on which they served in
1997.

Directors, with the exception of Messrs. Houston and Thompson,
receive fees of $2,500 per quarter plus $1,000 for each Board or
Committee meeting attended. Messrs. Houston and Thompson, who are
Company employees, receive no compensation for their service on the
Board or its committees. All Directors are eligible to participate
in the Stock Loan Program.

REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION

COMPENSATION POLICIES

The Company's Audit and Compensation Committee acts on
Chairman, President and Chief Executive Officer as well as Director
compensation matters. The Board of Directors acts on compensation
matters for the other executive officers, the administration of
incentive and nonstatutory stock options, and the extension of
interest free loans to employees for the purchase of Company common
stock.

The Board's goal in setting executive compensation is to link
pay to Company performance by making stock based compensation a
significant component of executive pay. The major components of
executive compensation are base salary, cash bonuses, stock options
and stock loans. In determining all forms of compensation the Board
evaluates competitors' levels of base salary, cash bonuses, stock
options and stock loans, the level of compensation necessary to
attract and retain executive talent and the executive officer's
contribution toward the achievement of the Company's goals of
increasing shareholder value as measured by several indicators,
including stock price performance, growth in funds from operations
and growth in dividends per share. The Board does not establish
specific performance criteria but instead subjectively considers the
Company's performance and each executive officer's contribution
toward the achievement of Company goals.

The Board sets base salaries for executive officers at levels
it considers to be less than typical for real estate investment
trusts of similar size as outlined in the annual compensation survey
prepared by the National Association of Real Estate Investment
Trusts and other industry publications. The Board also grants
discretionary cash bonuses based on individual performance and
contribution to the Company's performance.

The Board's objective in administering the stock option and
stock loan plans is to link a substantial portion of executive
compensation to increases in the price of the Company's common
stock, thereby aligning the interests of its executive officers with
those of its shareholders. Grants of stock options under the stock
option plans and the purchase of common stock financed by stock
loans are made at the market price on the date of grant or loan.
Benefit from these programs can only be derived through increases in
the stock price and through receipt of cash dividends. Presently
three-fifths of the dividends received on shares purchased under the
Stock Loan Program must be applied against the principal balance of
the loan.

The Omnibus Budget Reconciliation Act of 1993 provides that
compensation in excess of $1,000,000 per year paid to the chief
executive officer of a company as well as the other named executive
officers listed in the Company's proxy statement will not be
deductible unless the compensation is "performance-based" and the
related compensation plans are approved by shareholders. The Company
does not anticipate its executive compensation will come within the
reach of this legislation.

COMPENSATION OF THE CEO

Although the Audit and Compensation Committee has not
established any policy that would maintain the overall executive
compensation level within any particular range of industry norms,
the intent of the Board is that cash compensation, including salary
and bonuses, should be less than typical for real estate investment
trusts of similar size. The NAREIT survey and other industry surveys
were considered by the Audit and Compensation Committee during their
deliberations in determining Mr. Houston's compensation. The
Committee believes the stock option and stock loan programs are key
elements in motivating employees to achieve the Company's financial
and operational objectives. Under these programs a substantial
portion of compensation is tied to increases in the price of the
Company's common stock and to the payment of cash dividends.

In 1997, Mr. Houston's annual base salary was $220,000, up
from $120,000 in 1996. The increase in salary reflects the added
responsibility assumed by Mr. Houston since being named Chief
Executive Officer in December, 1996. In determining Mr. Houston's
bonus of $125,000 the Audit and Compensation Committee considered
numerous factors, including the 14.5% total return to the Company's
shareholders consisting of a 6.4% increase in the price of the
Company's common stock, and 8.1% in cash dividends paid during 1997
assuming the reinvestment of dividends under the Company's Dividend
Reinvestment Plan. The committee also considered the 4.0% increase
in gross funds from operations, the 5.8% increase in core funds from
operations, the 5.4% increase in common dividends, the 28% growth in
the Company's investment in apartments, the 4.2% growth in same
store net operating income, and Mr. Houston's contribution in the
achievement of these results.

Boone A. Knox

W. Tennent Houston

Michael N. Thompson

W. Hale Barrett

Hugh Calvin Long II

Robert P. Kirby

Paul S. Simon

EXECUTIVE COMPENSATION

The following table sets forth the compensation paid or
accrued for services by the Company's chief executive officer and
the other four most highly compensated executive officers whose
total salary and bonus exceeded $100,000 in 1997:

LONG-TERM
COMPENSATION
------------
AWARDS
------------
ANNUAL COMPENSATION SECURITIES
------------------- UNDERLYING
OPTIONS/SARS ALL OTHER
NAME AND PRINCIPAL YEAR SALARY BONUS (#) COMPENSATION
POSITION

BOONE A. KNOX 1997 - 150,000 - 114,417 (1)
Chairman of the Board 1996 - - - -
1995 - - - -

W. TENNENT HOUSTON 1997 220,000 125,000 50,000 117,148 (2)(3)
President and Chief 1996 120,000 50,000 100,000 124,335 (2)(3)
Executive Officer 1995 120,000 60,000 - 131,514 (2)(3)

MICHAEL N. THOMPSON 1997 180,000 125,000 50,000 94,492 (4)(5)
Executive Vice 1996 100,000 50,000 75,000 96,715 (4)(5)
President and Chief 1995 100,000 60,000 - 97,962 (4)(5)
Operating Officer

JOHN W. GIBSON 1997 160,000 100,000 70,000 43,601 (6)
Senior Vice President 1996 - - - -
1995 - - - -

DORRIE E. GREEN 1997 100,000 70,000 20,000 67,371 (7)(8)
Vice President and 1996 60,000 30,000 50,000 60,597 (7)(8)
Chief Financial Officer 1995 55,000 36,000 - 25,512 (8)

(1) Mr. Knox purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program.
See "Voting Securities and Principal Holders". The imputed interest
accrued on Mr. Knox's loans totaled $87,284 in 1997. The Company paid
Mr. Knox $23,000 in Director fees and $4,133 in medical insurance
premiums.

(2) The Company contributed $15,000 in 1997, $18,000 in 1996 and $18,000
in 1995 to the ESOP account of Mr. Houston.

(3) Mr. Houston purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program. See
"Directors". The imputed interest accrued on Mr. Houston's loans
totaled $101,005 in 1997, $104,861 in 1996, and $110,419 in 1995.
The Company has also extended Mr. Houston interest free, full
recourse loans to exercise incentive stock options. The imputed
interest accrued on these loans totaled $1,142 in 1997, $1,474 in
1996 and $3,095 in 1995.

(4) The Company contributed $15,000 in 1997, $15,000 in 1996 and $15,000
in 1995 to the ESOP account of Mr. Thompson.

(5) Mr. Thompson purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program. See
"Directors". The imputed interest accrued on Mr. Thompson's loans
totaled $78,590 in 1997, $80,713 in 1996 and $81,427 in 1995. The
Company has also extended Mr. Thompson interest free, full recourse
loans to exercise incentive stock options. The imputed interest
accrued on these loans totaled $901 in 1997, $1,002 in 1996 and
$1,535 in 1995.

(6) Mr. Gibson purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan
Program. See "Executive Officers". The imputed interest accrued on
Mr. Gibson's loans totaled $43,601 in 1997.

(7) The Company contributed $10,000 in 1997 and $9,000 in 1996 to the
ESOP account of Mr. Green.

(8) Mr. Green purchased Company common stock at the market price with
full recourse, interest free loans under the Stock Loan Program.
See "Executive Officers". The imputed interest accrued on Mr.
Green's loans totaled $57,371 in 1997, $51,597 in 1996 and $25,512 in
1995.

OPTION/SAR GRANTS IN LAST FISCAL YEAR
POTENTIAL REALIZABLE
INDIVIDUAL GRANTS VALUE AT ASSUMED ANNUAL
------------------------------------------------ RATES OF STOCK PRICE
APPRECIATION FOR
OPTION TERM
NUMBER OF PERCENT OF
SECURITIES TOTAL
UNDERLYING OPTIONS/SARS EXERCISE
OPTIONS/SARS GRANTED TO OR BASE
GRANTED EMPLOYEES IN PRICE EXPIRATION 5% 10%
NAME (#) FISCAL YEAR ($/SH) DATE ($) ($)

Boone A. Knox - - - - - -
W. Tennent Houston 50,000 (1) 8.7% $20.50 (2) 4/28/07 $644,617 $1,633,586
Michael N. Thompson 50,000 (1) 8.7% $20.50 (2) 4/28/07 $644,617 $1,633,586
John W. Gibson 20,000 (1) 3.5% $20.50 (2) 4/28/07 $257,847 $ 653,434
Dorrie E. Green 20,000 (1) 3.5% $20.50 (2) 4/28/07 $257,847 $ 653,434

(1) All options are for Company common stock and are exercisable six
months after the date of grant with respect to 20% of the number of
shares underlying the options and an additional 20% annually after
the date of grant. The exercise price may be paid by the option
holder by delivering shares already owned or those received upon
exercise of options. The option holder may also exercise stock
appreciation rights by surrendering the right to exercise an option
in exchange for a payment in cash or common stock equal to the
excess of the fair market value over the exercise price of the
shares subject to the option, subject to the approval of the Plan
Administrators.

(2) Fair market value on date of grant.

AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR AND
FY-END OPTION/SAR VALUES

Shares Number of Securities Underlying Value of Unexercised In-the-Money
Acquired Unexercised Options/SARs at Options/SARs at FY End ($)
on Value FY End (#)
Exercise Realized
NAME (#) ($) EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE

Boone A. Knox - - - - - -
W. Tennent Houston - - 105,000 107,000 $344,625 $242,125
Michael N. Thompson - - 79,000 90,000 $313,500 $204,375
John W. Gibson - - 14,000 56,000 $ 20,750 $ 83,000
Dorrie E. Green - - 40,000 50,000 $129,500 $189,500

STOCK PRICE PERFORMANCE GRAPH

The graph below compares the five year cumulative total return to the
shareholders of Merry Land & Investment Company, Inc. to the S&P 500 Index and
the NAREIT Equity-REIT Index and assumes the reinvestment of all dividends at
the market price on the day the dividend was paid beginning December 31, 1992
and ending December 31, 1997.

DATE MERRY LAND S&P 500 EQUITY REITS

12/31/92 $100 $100 $100
3/31/93 $118 $104 $122
6/30/93 $115 $105 $118
9/30/93 $148 $108 $129
12/31/93 $140 $110 $120
3/31/94 $149 $106 $124
6/30/94 $146 $106 $126
9/30/94 $143 $111 $123
12/31/94 $162 $111 $123
3/31/95 $147 $122 $123
6/30/95 $157 $134 $130
9/30/95 $165 $145 $137
12/31/95 $187 $153 $142
3/31/96 $175 $162 $146
6/30/96 $172 $169 $152
9/30/96 $178 $174 $162
12/31/96 $183 $188 $192
3/31/97 $177 $194 $194
6/30/97 $191 $227 $203
9/30/97 $198 $244 $227
12/31/97 $209 $251 $231

Assumes $100 Invested on December 31, 1992 in
Merry Land & Investment Company, Inc., S&P 500 and
NAREIT Equity-REIT Index

VOTING SECURITIES AND PRINCIPAL HOLDERS

The close of business on March 2, 1998 has been set as the record date
for determination of shareholders entitled to notice of and to vote at the
meeting. On March 2, 1998, the total number of outstanding shares of the
Company's common stock (the only voting securities of the Company) was
39,496,847 each of which is entitled to one vote. The table below sets forth
certain information concerning the only persons known to the Company to
beneficially own more than 5% of the outstanding common stock, and the
beneficial ownership of common stock of the directors and executive officers as
a group:

AMOUNT AND NATURE
OF BENEFICIAL
NAME AND ADDRESS OF OWNERSHIP AS OF PERCENT OF
BENEFICIAL OWNER MARCH 2, 1998 CLASS (1)

Boone A. Knox 2,829,619 (2) 7.1%
149 Main
Street
Thomson, GA 30824

All Directors and 4,519,446 (3) 11.3%
Executive Officers as
a group

J.P. Morgan & Co 3,939,474 (4) 10.0%
Incorporated
60 Wall Street
New York, NY 10260

(1) Assumes 40,046,847 shares outstanding, including 39,496,847 shares
outstanding as of March 2, 1998, and 550,000 shares issuable upon
exercise of presently exercisable stock options held by the Company's
executive officers.
(2) Boone A. Knox is chairman of the Company. Includes 100,000 shares of
Company common stock purchased on 1/17/97 at the market price of $21.50
by borrowing $2,150,000 and 50,000 shares of Company common stock
purchased on 1/26/98 at the market price of $22.59 per share by
borrowing $1,129,688; both with a full recourse, interest free loan
payable upon demand under the Company's Stock Loan Plan. The maximum
outstanding principal balance of loans to Mr. Knox under the Stock Loan
Plan totaled $2,150,000 in 1997 and totaled $3,186,088 on 3/2/98.
Includes 2,215,000 shares owned by Knox, Ltd., a limited partnership,
3133 Washington Road, Thomson, Georgia 30824, of which Boone A. Knox is
managing general partner. Includes 210,905 shares owned by the Knox
Foundation, a charitable trust, of which Boone A. Knox is trustee.
Includes 5,998 shares are held by BT Investments, of which Boone A. Knox
is general partner. Includes 5,876 shares held in his wife's name.
Includes 234,773 shares held in the Estate of Peter S. Knox III, of
which Boone A. Knox is a Co-Executor. Includes 800 shares held by his
niece and nephew. Mr. Knox disclaims beneficial ownership of the shares
owned by his wife, the Knox Foundation, his niece and nephew and the
Estate of Peter S. Knox III. Mr. Knox disclaims beneficial ownership of
shares held by Knox Ltd. and BT Investments except to the extent of his
pecuniary interest therein. The remaining 6,267 shares are owned by Mr.
Knox individually.
(3) See "Directors" and "Executive Officers".
(4) This information is based solely upon a Schedule 13G/A filed under the
Securities Exchange Act of 1934 on December 31, 1997 by J.P.
Morgan & Co. Incorporated, reporting the sole power to vote 3,888,694
shares and the sole power to dispose 3,939,494 shares. Of the
3,939,494 total shares beneficially owned, 3,739,494 are shares
where there is a right to acquire. J.P. Morgan & Co. Incorporated
reports that "virtually all of our accounts involve outside persons
who have the right to receive or direct the receipt of dividends from,
or the proceeds from the sale of, securities in such accounts with
respect to the class of securities which are the subject of this
report. However, no such person's rights relate to more than five
percent of the class..."

TRANSACTIONS WITH MANAGEMENT AND OTHERS

W. Hale Barrett, a director and Secretary of the Company, is also the
senior member of Hull, Towill, Norman & Barrett, P.C., counsel to the Company.
The Company paid Mr. Barrett's firm $614,876 in fees in 1997.

The Board believes that the terms of its arrangement with Hull, Towill,
Norman & Barrett, P.C., are no less favorable to the Company than could have
been realized in an arm's length transaction with unaffiliated persons.

ACCOUNTANTS

The Company has selected Arthur Andersen LLP as the Company's independent
public accounting firm for 1998. A representative of the accounting firm will
be present at the annual meeting and will be available to respond to
appropriate questions. The representative will also have the opportunity to
make a statement if desired.

SHAREHOLDER PROPOSALS FOR 1999 ANNUAL MEETING

Any shareholder may present a proposal for consideration at future
meetings of the shareholders. The procedures which a shareholder must follow to
submit a proposal are fully set forth in Rule 14a-8 of the General Rules and
Regulations adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934.

Among other requirements of the rule is a requirement that proposals
for consideration at the next annual meeting of the Company's shareholders must
be received at the Company's principal office not later than November 11, 1998.

OTHER MATTERS

The Board knows of no other matters to be brought before the meeting. If,
however, any other matter properly comes before the meeting, it is the
intention of the persons named in the accompanying form of proxy to vote the
proxy in accordance with their discretion and judgment in such matters.

THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH PERSON WHOSE PROXY IS
SOLICITED, ON THE WRITTEN REQUEST OF SUCH PERSON, A COPY OF THE COMPANY'S
ANNUAL REPORT ON FORM 10-K AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
FOR 1997. ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO W. HALE BARRETT,
SECRETARY, MERRY LAND & INVESTMENT COMPANY, INC., P.O. BOX 1417, AUGUSTA,
GEORGIA 30903.

March 23, 1998 MERRY LAND & INVESTMENT COMPANY, INC

MERRY LAND & INVESTMENT COMPANY, INC.

P.O. Box 1417

Augusta, Georgia 30903

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned hereby constitutes and appoints Boone A. Knox and W. Tennent
Houston, or either of them present at the annual meeting to be held on April
20, 1998 at 10:00 a.m. at the Radisson Riverfront Center, Two Tenth Street,
Augusta, Georgia, and at any or all adjournments, with power of substitution,
as the undersigned's true and lawful attorney and proxy to represent the
undersigned at that meeting and to vote in the undersigned's name, that number
of shares which the undersigned is entitled to vote. The undersigned's attorney
and proxy is hereby instructed to vote as follows:

- ----------------------------------------------------------------------------

i. ELECTION OF DIRECTORS

<square> FOR all nominees listed <square> WITHHOLD AUTHORITY to
below (except as marked to vote for all below
the contrary below)

W. Hale Barrett W. Tennent Houston Boone A. Knox Hugh Calvin Long II

Robert P. Kirby Paul S. Simon Michael N. Thompson

INSTRUCTION: TO WITHHOLD AUTHORITY FOR ANY LISTED INDIVIDUAL NOMINEE, STRIKE A LINE THROUGH THE NOMINEE'S NAME ON THE LIST ABOVE.
- --------------------------------------------------------------------------------------------------------------------------------
ii. IN THEIR DISCRETION, THE PROXIES ARE AUTHORIZED TO VOTE UPON SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE
MEETING.

This proxy when properly executed will be voted in the manner directed by the
undersigned shareholder. IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED
FOR THE ELECTION OF ALL DIRECTORS.

Please sign exactly as name appears below. When shares are held by joint tenants, both should sign. When signing as attorney,
executor, administrator, trustee or guardian, give full title as such. If a corporation, sign in full corporate name by president
or other authorized officer. If a partnership, sign in partnership name by authorized person.

PLEASE INDICATE ANY CHANGE IN ADDRESS

Dated: , 1998
Signature of Shareholder
Signature if held jointly
Please specify choices, sign, date and return in the enclosed
postage paid envelope.

PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.