8-K

UNITED STATES
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)
July 2, 2008

PICO HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

California	033-36383	94-2723335
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

875 Prospect Street, Suite 301, La Jolla, California	92037
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code
(858) 456-6022

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CRF 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 7 Regulation FD

Item 7.01 Regulation FD Disclosure

     PICO Holdings, Inc. issued a press release on July 3, 2008 announcing the sale of its remaining interest in the Semitropic Water Banking and Exchange Program. The press release is attached as Exhibit 99.1 and is hereby incorporated by reference in its entirety. In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 7.01 is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall such information be deemed incorporated by reference in any filing under the United States Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth in this Item 7.01 shall not be deemed an admission as to the materiality of any information in this report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Section 9. Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(a)   Not applicable

(b)   Not applicable

(c)   Not applicable

(d)   Exhibits

Exhibit Number	Description
99.1	Press Release of PICO Holdings, Inc. dated July 3, 2008.

SIGNATURES

     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 hereunto duly authorized.

	PICO HOLDINGS, INC.
Date: July 3, 2008	By:	/s/ Maxim C. W. Webb
		Maxim C. W. Webb
		Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

NEWS RELEASE
FOR IMMEDIATE RELEASE

PICO HOLDINGS, INC. SELLS ITS REMAINING INTEREST IN SEMITROPIC WATER STORAGE FACILITY

     (LA JOLLA, CALIFORNIA)—July 3 , 2008—PICO Holdings, Inc. (NASDAQ: PICO) announced today that its wholly-owned subsidiary, Vidler Water Company, Inc., has assigned its remaining rights and obligations in the Semitropic Water Banking and Exchange Program for total cash sale proceeds of $11.7 million. The purchaser was San Diego County Water Authority, a public water agency serving San Diego County, California. The interest assigned to San Diego County Water Authority principally consisted of 30,000 acre-feet of storage capacity.

     The sale is expected to generate a pre-tax gain of approximately $8.7 million in PICO Holdings’ consolidated statement of operations for the fiscal third quarter ending September 30, 2008.

     John Hart PICO’s President and CEO commented:

     “This transaction is the final liquidation of our storage rights in the Semitropic program. Due to increased awareness by others for the necessity of additional storage to more efficiently manage existing water resources, opportunities have arisen to exit this particular asset at this time. This sale results in a strong return on our total capital employed on this asset.”

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding PICO Holdings’ business, financial conditions, results of operations, and prospects, including, without limitation, statement concerning PICO Holdings’ beliefs, intentions, anticipated developments, and other information concerning future matters. Forward- looking statements often address current expected future business and financial performance, and may contain words such as “may,” “could,” “estimates,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” Forward-looking statements may address matters that are uncertain. Although forward-looking statements in this document reflect the good faith judgment of management, such statements can only be based on current expectations and assumptions. Consequently, forward-looking statements are inherently subject to risk and uncertainties, and the actual results and outcomes could differ materially from the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those discussed under the heading “Risk Factors” discussed in PICO Holdings’ Annual Report on Form 10-K and in other filings made from time to time with the United States Securities and Exchange Commission (“SEC”). PICO Holdings’ does not undertake to update any forward-looking statements, and undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made.

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CONTACT:      Max Webb Chief Financial Officer (858) 456-6022 ext. 216

PICO HOLDINGS, INC.
875 PROSPECT STREET, SUITE 301 LA JOLLA, CALIFORNIA 92037
T: 858.456.6022 F: 858.456.6480
WWW.PICOHOLDINGS.COM