UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 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) FEBRUARY 23, 2001









               HYDRO ENVIRONMENTAL RESOURCES, INC.
     (Exact name of registrant as specified in its charter)







Nevada                 000-27825                  73-1552304
(State of             (Commission           (I.R.S. Employer
organization)         File Number)       Identification No.)

5725 S. Valley View, Las Vegas, NV  89118
(Address of principal executive offices)

Registrant's telephone number, including area code (702) 597-9070


ITEM 5    OTHER EVENTS

On  February  23, 2001, the Company signed a $1,500,000  contract
with Orini Lumber Processors, Ltd. to build the first functioning
alternative  power plant in New Zealand based  on  the  Company's
ECHFR   Technology.   This  prototype-stage  utilizes   renewable
resources, such as water, seawater, contaminated water, or sewage
to  supply  clean burning hydrogen gas at low pressure for  steam
boilers,  drying  kilns,  and residual  electricity.  To  operate
Orini's  lumber processing business, the power plan will generate
10  megawatts  of electricity from steam and/or hot water.  Under
the terms of the contract, once Orini is satisfied that the ECHFR
system is economical, financially viable and has no hazardous  or
injurious  side  effects to the ecology or  to  the  environment,
Orini  will  pay a deposit of 25% of the purchase price  and  the
balance  upon  the successful installation and operation  of  the
system.

On   February  20,  2001,  the  Company  changed  its   corporate
headquarters  to  5725 S. Valley View, Suite  3,  Las  Vegas,  NV
89118, (702) 597-9070.

                           SIGNATURES

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

                           Hydro Environmental Resources, Inc.

                           By: /s /Jack Wynn
                               Jack Wynn, President
                           Date March 13, 2001