UNITED STATES
		SECURITIES AND EXCHANGE COMMISSION
		      Washington, D.C.  20549

			   SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934


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PURE CYCLE CORPORATION
(Name of Registrant as Specified in Its Charter)


(Name of Person(s) Filing Proxy Statement, if Other Than the 
Registrant)

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PURE CYCLE CORPORATION 
8451 Delaware Street
Thornton, Colorado 80260 
(303) 292-3456

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS 
To be held on April 18, 2005

TO OUR STOCKHOLDERS:

You are cordially invited to attend an Annual Meeting of the 
Stockholders' of PURE CYCLE CORPORATION.  The Meeting will be 
held at 1550 Seventeenth Street, Suite 500, Denver, Colorado 
80202, at the offices of Davis, Graham & Stubbs, on April 18, 
2005 at 2:00 p.m. Mountain Time for the following purposes:

1.	To elect a board of six directors to serve until the next 
	Annual Meeting of Stockholders', or until their successors 
	are elected and have qualified.
2.	To ratify the appointment of Anton Collins Mitchell LLP as 
	the independent registered public accounting firm for the 
	2005 fiscal year.
3.	To transact such other business as may properly come before 
	the Meeting or any adjournment(s) thereof.
	Only stockholders of record as of 5:00 p.m. Mountain Time on 
	March 1, 2005 will be entitled to notice of or to vote at this 
	Meeting or any adjournment thereof.  

WHETHER OR NOT YOU PLAN TO ATTEND, PLEASE DATE AND SIGN THE 
ENCLOSED PROXY AND RETURN IT PROMPTLY IN THE ACCOMPANYING 
POSTAGE-PAID ENVELOPE.  STOCKHOLDERS WHO ATTEND THE MEETING MAY 
REVOKE THEIR PROXIES AND VOTE IN PERSON IF THEY SO DESIRE.
BY ORDER OF THE BOARD OF DIRECTORS

/s/ Scott E. Lehman		
Scott E. Lehman, Secretary
March 11, 2005


PURE CYCLE CORPORATION 
8451 Delaware Street
Thornton, Colorado 80260 
(303) 292-3456

PROXY STATEMENT 
FOR THE ANNUAL MEETING OF STOCKHOLDERS 
To be held on April 18, 2005

ABOUT THE MEETING
This proxy statement is furnished to stockholders in connection 
with the solicitation of proxies by the Board of Directors of 
PURE CYCLE CORPORATION (the "Company") for use at the Annual 
Meeting of stockholders of the Company (the "Meeting") to be 
held at 1550 Seventeenth Street, Suite 500, Denver, Colorado 
80202, at the offices of Davis, Graham & Stubbs on April 18, 
2005 at 2:00 p.m. Mountain Time or at any adjournment thereof.  
Proxies for use at the Meeting are being solicited by the Board 
of Directors of the Company.  Proxies were mailed to 
stockholders on or about March 11, 2005 and will be solicited 
chiefly by mail. The cost of soliciting proxies is being paid by 
the Company.  In addition to the mailings, the Company's 
officers, directors and other regular employees may, without 
additional compensation, solicit proxies personally or by other 
appropriate means.

Discretionary authority is provided in the proxy as to matters 
not specifically referred to therein.  The board of directors is 
not aware of any other matters which are likely to be brought 
before the Meeting.  However, if any such matters properly come 
before the Meeting, it is understood that the proxy holder or 
holders are fully authorized to vote in accordance with the 
proxy holder or holders' judgment and discretion.

Stockholders entitled to vote at the meeting

Stockholders of record as of 5:00 p.m. Mountain Time on March 1, 
2005, will be entitled to vote on matters presented at the 
Meeting. Each outstanding share of the Company's 1/3 of $.01 par 
value common stock ("common stock") is entitled to one vote on 
each matter acted upon.  On February 28, 2005, there were 
13,703,635 outstanding shares of common stock.  There is no 
cumulative voting.

A  quorum

The presence, in person or by proxy, of the holders of a 
majority of the outstanding shares of common stock is necessary 
to constitute a quorum at the Meeting for the election of 
directors and for the other proposals.  Abstentions and broker 
"non-votes" are counted as present and entitled to vote for 
purposes of determining whether a quorum exists.  A broker 
"non-vote" occurs when a nominee holding shares for a beneficial 
owner does not vote on a particular proposal because the nominee 
does not have discretionary voting power with respect to that 
item and has not received voting instructions from the 
beneficial owner.  Abstentions and broker non-votes are not 
counted as votes cast in the election of directors and the other 
proposals.  Accordingly, an abstention on any matter will have 
the effect of a negative vote on that matter.  The affirmative 
vote of the majority of the shares of common stock represented 
and voted at the Meeting, assuming a quorum is present, is 
necessary for the approval of proposal 2.    The election of 
directors requires the affirmative vote of a plurality of the 
votes cast by shares represented in person or by proxy and 
entitled to vote for the election of directors.

Voting procedures

If the enclosed proxy is properly executed and returned, the 
shares represented thereby will be voted in the manner 
specified. If no specification is made by the proxy, then the 
shares will be voted "FOR" the Directors nominated by the Board 
of Directors and "FOR" Proposal 2 and otherwise, in accordance 
with the recommendations of the Board of Directors.  

Revoking a vote

A proxy may be revoked by a stockholder at any time prior to the 
exercise thereof by written notice to the Secretary of the 
Company, by submission of another proxy bearing a later date or 
by attending the Meeting and voting in person.
Multiple stockholders sharing the same address  
The Company has adopted a procedure approved by the Securities 
and Exchange Commission (the "SEC"), called "householding," 
which reduces printing costs and postage fees.  Under this 
procedure, stockholders of record who have the same address and 
last name will receive only one copy of the annual report and 
proxy statement unless one or more of these stockholders notify 
the Company that they wish to continue receiving individual 
copies.  Stockholders who participate in householding will 
continue to receive separate proxy cards.

If a stockholder of record residing at such an address wishes to 
receive a separate document in the future, he or she may contact 
our transfer agent at Computershare Investor Services, 
350 Indiana St., Suite #800, Golden, CO 80401, telephone 
(303) 262-0600, or write to the Company's Secretary at the 
Company's address set forth above.  Eligible stockholders of 
record receiving multiple copies of the annual report and proxy 
statement can request householding by contacting the Company in 
the same manner.  If shares are owned through a bank, broker or 
other nominee, the holder can request householding by contacting 
the nominee.

VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF

The following table sets forth, as of February 28, 2005, the 
beneficial ownership of the Company's issued and outstanding 
common stock by (i) each person who owns of record (or is known 
by the Company to own beneficially) 5% or more of  the common 
stock, (ii) each director of the Company and each nominee for 
director, (iii) each executive officer and (iv) all directors 
and executive officers as a group.  Except as otherwise 
indicated, the Company believes that each of the beneficial 
owners of the stock listed has sole investment and voting power 
with respect to such shares, based on information filed by such 
person with the Securities and Exchange Commission or based on 
information provided by such stockholders to the Company.
Common Stock
							Percentage
				Number		    	Of
Name and Address of	  	Of			Common
Beneficial Owner		Shares		   	Stock		

Thomas P. Clark
8451 Delaware St.
Thornton, CO  80260		2,310,205	   	16.9%

Mark W. Harding
8451 Delaware St.
Thornton, CO  80260		  887,500		 6.5%

Harrison H. Augur
P.O. Box 4389
Aspen, CO  81611		   83,611		 0.6%  (2)

Richard L. Guido
121 Antebellum Drive
Meridianville, AL 35759		    2,500		   *

Peter C. Howell
15289 Russell Road
Chagrin Falls, OH 44022		        -		   -

George M. Middlemas 
225 W. Washington, #1500	   35,833		 0.3%  (4)
Chicago, IL  60606		  971,076		 7.1%  (6)

All Officers and Directors 
as a group (6 persons)		4,290,725		31.3%  (5)

Apex Investment 
  Fund II, L.P. ("Apex")
225 W. Washington, #1450
Chicago, IL  60606		  971,076		 7.1%  (6)

Par Capital Management, Inc.
One International Place, 
Suite 2401
Boston, MA 02110		  803,200		 5.9%

* Less than 1%
1)	Consists of 887,500 shares purchasable by Mr. Harding under 
	currently exercisable options.

2)	Includes 2,500 shares purchasable by Mr. Augur under currently 
	exercisable options. Includes 10,000 shares of common stock held 
	by Patience Partners, L.P., a limited partnership in which a 
	foundation controlled by Mr. Augur is a 60% limited partner and 
	Patience Partners, LLC is a 40% general partner.  Patience 
	Partners LLC is a limited liability company in which Mr. Augur 
	owns a 50% membership interest.

3)	Includes 2,500 shares purchasable by Mr. Guido under currently 
	exercisable options.

4)	Includes 2,500 shares purchasable by Mr. Middlemas under 
	currently exercisable options. By virtue of his position with 
	Apex, Mr. Middlemas is deemed to be the indirect beneficial 
	owner of 971,076 shares owned by Apex.  Mr. Middlemas disclaims 
	beneficial ownership of these shares.

5)	Includes 895,000, shares purchasable by directors and officers 
	under currently exercisable options, and 2,500 shares of common 
	stock held by Patience Partners, L.P., a limited partnership in 
	which a foundation controlled by Mr. Augur is a 60% limited 
	partner and Patience Partners, L.P. is a 40% general partner.

6)	Apex Investment Fund II LP is controlled through one or more 
	partnerships.  The persons who have or share control of Apex 
	after looking through one or more intermediate partnerships are 
	referred to herein as "ultimate general partners."  The ultimate 
	general partners of Apex are: First Analysis Corporation, a 
	Delaware corporation ("FAC"), Stellar Investment Co. 
	("Stellar"), a corporation controlled by James A. Johnson 
	("Johnson"); George M. Middlemas ("Middlemas"); and Chartwell 
	Holdings Inc. ("Chartwell"), a corporation controlled by Paul J. 
	Renze ("Renze"). 

	The business address of FAC, Stellar, Johnson, Middlemas, and 
	Maxwell is 225 W. Washington Street, Suite 1550, Chicago, 
	Illinois 60606.  The business address of Renze and Chartwell is 
	20 N Wacker Dr., Suite 2200, Chicago, IL 60606.  

	In addition to being a general partner or ultimate general 
	partner of Apex, FAC is also a general partner or ultimate 
	partner of Environmental Private Equity Fund II, L.P. ("EPEF"), 
	Environmental Venture Fund L.P. ("EVF") and the Productivity 
	Fund II LP ("PF II"), all of whom own the Company's common stock 
	but are now less than 5% owners (with Apex this group is 
	collectively referred to as the Apex Partnerships).  Due to 
	these relationships, FAC may be deemed to be the indirect 
	beneficial owner of 2,111,003 shares of common stock, or 15.4% 
	of the Company's outstanding shares.  By reason of his status as 
	the majority stockholder of FAC, F. Oliver Nicklin, Jr. may also 
	be deemed to be the indirect beneficial owner of such shares. 

	By reason of their status as ultimate general partners of Apex, 
	Stellar (and through Stellar, Johnson), Middlemas and Chartwell 
	(and through Chartwell, Renze) may be deemed to be the indirect 
	beneficial owners of 971,076 shares of common stock, or  7.1% of 
	the Company's outstanding stock.  When these shares are combined 
	with his personal holdings of 35,833 (including 2,500 shares 
	purchasable under currently exercisable options) shares of 
	common stock, Middlemas may be deemed to be the beneficial owner 
	(directly with respect to his shares and indirectly as to the 
	balance) of 1,006,909 shares of common stock, or 7.3% of the 
	total outstanding stock.

	By reason of his status as ultimate general partner of EPEF and 
	liquidating trustee of PF II, Maxwell may be deemed to be the 
	indirect beneficial owner of 766,734 shares of common stock, or 
	5.6% of such shares.

	Each of the Apex Partnerships disclaims beneficial ownership of 
	all shares of common stock described herein except those shares 
	that are owned by that entity directly.  The Company understands 
	that each of the other persons named as an officer, director, 
	partner or other affiliate of any Apex Partnership herein 
	disclaims beneficial ownership of all the shares of common stock 
	described herein .

	Each of the Apex Partnerships disclaims the existence of a 
	"group" among any or all of them and further disclaims the 
	existence of a "group" among any or all of them and any or all 
	of the other persons named as an officer, director, partner or 
	those affiliate of any of them, in each case within the meaning 
	of Section 13(d) (3) of the 1934 Act.

DIRECTORS AND EXECUTIVE OFFICERS

Directors and Executive Officers
The following table sets forth the names, ages and titles of the 
persons who are currently directors and executive officers of 
the Company, along with other positions they hold with the 
Company.

Name			Age		Position
Mark W. Harding		41		Director, President 
            				and Chief Financial Officer

Harrison H. Augur	63		Chairman of the Board (1) (2)

Thomas P. Clark		68		Director

Richard L. Guido	60		Director (1) (2)

Peter C. Howell		55		Director

George M. Middlemas	58		Director (1) (2)

(1)	Member of Audit Committee.
(2)	Member of Compensation Committee.

Audit committee

The board has determined that the audit committee members meet 
the independence standards of NASDAQ.  In addition, the board 
has determined that at least one member of the audit committee 
is a financial expert.  That person, Mr. Augur, meets the SEC 
criteria of audit committee financial expert by reason of his 
education and his 20 plus years of experience in investment 
management and venture capital investment.  

The functions to be performed by the audit committee include the 
appointment, retention, compensation and oversight of the 
Company's independent auditors, including pre-approval of all 
audit and non-audit services to be performed by such auditors.  
The Company has an Audit Committee Charter.  The audit committee 
met two times during the fiscal year ended August 31, 2004.  See 
the Report of the Audit Committee.  All audit committee members 
were present at each meeting.

Compensation Committee

The functions to be performed by the compensation committee 
include establishing the compensation of officers and directors, 
and administering management incentive compensation plans.  The 
compensation committee met one time during the fiscal year ended 
August 31, 2004.  All compensation committee members were 
present at the meeting.

Nominating Committee

The Company does not have a nominating committee because of the 
small size of its board and the relative infrequency of 
meetings.  Nominees for director will be selected or recommended 
by a majority of the Company's directors who meet the NASDAQ 
independence standards.  In selecting nominees for the board, 
the Company is seeking a board with a variety of experiences and 
expertise, and in selecting nominees will consider business 
experience in the industry in which the Company operates, 
financial expertise, independence from transactions with the 
Company, experience with publicly traded companies, experience 
with relevant regulatory matters in which the Company is 
involved, and reputation for integrity and professionalism.  The 
independent directors will consider nominations for director 
made by officers and directors of the Company, as well as 
stockholders of record entitled to vote.  In order to make a 
nomination for election at the 2006 Annual Meeting, a 
stockholder must provide written notice, along with supporting 
information regarding such nominee, to the Company's Secretary 
by November 11, 2005 but not before September 11, 2005.  For 
more information refer to the Company's Bylaws which were filed 
as Exhibit 3.2 to the Registration Statement on Form SB-2/A 
filed on June 10, 2004.

Shareholder communications

Stockholders wishing to send communications to the board may 
contact Mark Harding, President of the Company, at the Company's 
principal place of business.  All such communications shall be 
shared with the members of the board, or, if applicable, a 
specified committee or director.  

The Company has attempted to minimize the costs associated with 
the Meeting.  If the Meeting is not scheduled on the same day as 
a regular meeting of the board, only directors who are resident 
in Colorado are expected to attend the Meeting.  If the Meeting 
is scheduled on the same day as a regular meeting of the board, 
all directors are expected to attend the Meeting.  All board 
members attended the 2004 Annual Meeting.    

Board meetings held

During the fiscal year ended August 31, 2004, the Board of 
Directors held seven meetings.  All board members were present 
at each of the meetings with the exception of one board member 
who was absent from one meeting.

Relationship of Directors and Officers

None of the current directors or officers, or nominees for 
director, is related to any other officer or director of the 
Company or to any nominee for director.  

Terms of Directors and Officers

All directors are elected for one-year terms which expire at the 
Meeting of stockholders or until their successors are elected 
and qualified.  The Company's officers are elected annually by 
the board of directors and hold office until their successors 
are elected and qualified.  

Compensation of Directors and Officers

The following table sets forth information concerning the 
compensation received by or awarded to the Company's former 
Chief Executive Officer and the Company's President and Chief 
Financial Officer for the fiscal years ended August 31, 2004, 
2003 and 2002:

Annual Compensation
						Other
						Annual 
Name and 		Fiscal	Salary	Bonus	Compen-
Principal Position	Year	  ($)	  ($)	sation
			2004	80,000	120,000	     -
Mark W. Harding		2003	80,000	      -	     -
President, CFO		2002	80,000	      -	     -

Thomas P. Clark
Former CEO		2004	60,000	 50,000	     -
(Resigned as CEO	2003	60,000	      -	     -
in November 2004)	2002	60,000	      -	     -

Executive bonuses, which were determined by the Compensation 
Committee, were based on the performance of Mr. Harding and Mr. 
Clark in managing the completion of the equity offering in June 
of 2004, and the signing of the Sky Ranch Water Service 
Agreements.

Until February 13, 2004, directors did not receive any 
compensation for serving on the board.  Effective February 13, 
2004, the board approved the following compensation arrangement 
for non-employee directors:  Each non-employee director will 
receive a payment of $10,000 for each full year in which he or 
she serves as a director, with an additional payment of $1,000 
for each committee on which he or she serves, and $1,000 for 
serving as chairman of the board.  An additional $500 will be 
paid to each director for attendance at each board meeting and, 
if committee meetings are held separate from board meetings, 
$500 will be paid for attendance at such committee meetings.  
In addition to cash compensation, as part of the 2004 Equity 
Incentive Plan approved by stockholders at the 2004 Annual 
Meeting, each non-employee director receives an option to 
purchase 5,000 shares of common stock upon election to the board 
(which vest one half at each of the first and second anniversary 
dates of the grant), and an option to purchase 2,500 shares for 
each subsequent full year in which he or she serves as a 
director, which options vest one year from the date of grant.  

Section 16 (a) beneficial ownership reporting compliance
Our directors and executive officers and persons who are 
beneficial owners of more than 10% of our common stock are 
required to file reports of their holdings and transactions in 
common stock with the Securities and Exchange Commission and 
furnish us with such reports.  Based solely upon the review of 
the copies we have received or upon written representations from 
these persons, we believe that, during the fiscal year ended 
August 31, 2004 all of  our directors, executive officers, and 
10% beneficial owners had complied with the applicable Section 
16 (a) filing requirements, except that Mr. Clark had one late 
filing with respect to one transaction.

Code of Ethics

The Company has a code of ethics for its directors, officers and 
employees, which can be viewed on our website at 
www.purecyclewater.com.

Certain relationships and related transactions

Borrowings from Thomas P. Clark

From time to time since December 6, 1987, Thomas P. Clark, a 
director and former Chief Executive Officer of the Company, 
loaned funds to the Company to cover operating expenses.  These 
funds have been treated by the Company as unsecured debt, and 
promissory notes have been issued to Mr. Clark.  The notes bear 
interest at rates ranging from 8.36% to 9.01% per annum, and 
mature on October 1, 2007.  To date, Mr. Clark has loaned the 
Company $310,720, of which $43,350 has been repaid, leaving a 
balance of $267,370.  As of November 30, 2004, the outstanding 
balance, including principal and accrued interest, on the Notes 
totaled $294,812.  All loans were made on terms determined by 
the board members (Mr. Clark abstaining) to be at market rates.  

Borrowings from LCH, Inc.

LCH, Inc., a Delaware corporation which owns 20% of LC Holdings, 
Inc., which is 80% owned by Mr. Clark, loaned the Company a 
total of $950,000 between November, 1988 and February, 1989.  
These obligations were represented by two demand promissory 
notes (the "Notes") which bear interest at a rate equal to the 
rate announced from time to time by Mellon Bank, Pittsburgh, 
Pennsylvania as its "prime rate" plus 300 basis points from the 
date of the first advance thereunder until maturity, payable 
quarterly beginning on the first day of April, 1989 and 
continuing thereafter on the first day of each subsequent 
calendar quarter.  The Notes were secured by a pledge of Company 
common stock  owned by Mr. Clark.  During the fiscal year ended 
August 31, 1998, the Company reached an agreement with LCH, Inc. 
to defer payment of principal and interest on the Notes until 
October 1, 2007.   

Effective August 31, 2004, LCH, Inc. retired $2,506,514 in debt 
(consisting of principal and interest) and terminated its right 
to receive $4,000,000 from the sale of Export Water in exchange 
for payment from the Company of $950,000 in cash and the 
surrender by Mr. Clark of 306,279 shares of the Company's common 
stock that he had pledged to LCH to secure payment of the 
Company's obligations.  In response to a claim by Mr. Clark, on 
January 13, 2005, the Company paid Mr. Clark $50,555 in cash and 
issued Mr. Clark 300,000 shares of restricted common stock.	

Office Lease

The Company leases office space from Mr. Clark. Prior to 
September 1, 2004, the Company was not required to pay rent. 
Effective September 1, 2004 the Company executed a lease 
agreement whereby the Company leases the office space on a 
month-to-month basis  for $1,000 per month, a rate that 
approximates market value.  

Comprehensive Amendment Agreement

Mr. Augur and Mr. Middlemas (by reason of his status as ultimate 
general partner of Apex) are a party to the Comprehensive 
Amendment Agreement ("CAA") with the Company.  Under the CAA the 
Company is required to distribute to numerous parties, at 
varying levels of priority, $23,608,399 of future proceeds 
received from the sale of Export Water (as defined therein).  
Mr. Augur is a partner, with his wife, in a partnership that is 
entitled to receive a total of $150,000 thereunder.  Apex and 
therefore by reason of his status as ultimate general partner of 
Apex, Mr. Middlemas, is entitled to receive a total of 
$7,163,264 thereunder.  

REPORT OF THE AUDIT COMMITTEE 

The Audit Committee of the Board of Directors is comprised of 
directors who meet the NASDAQ standards for independence. The 
Audit Committee operates under a written charter adopted by the 
Board of Directors on February 13, 2004, which was filed with 
the Proxy Statement used in connection with the 2004 annual 
shareholders meeting.

On the recommendation of the Audit Committee, the Board of 
Directors appointed Anton Collins Mitchell LLP ("ACM") to serve 
as the Company's independent auditors beginning with the fiscal 
year ending August 31, 2005.  ACM replaces KPMG LLP as the 
Company's independent auditors.  KPMG LLP served as the 
independent auditors for the fiscal year ended August 31, 2004.  

Management has primary responsibility for the Company's 
financial statements and the overall reporting process, 
including the Company's system of internal controls.  KPMG LLP 
audited the annual financial statements prepared by management 
for the year ended August 31, 2004, expressed an opinion as to 
whether those financial statements present fairly the financial 
position, results of operations and cash flows of the Company in 
conformity with accounting principles generally accepted in the 
United States of America and discussed with the Audit Committee 
any issues they believed should be raised.

The Audit Committee reviewed with management and KPMG LLP the 
Company's audited financial statements and met separately with 
both management and KPMG LLP to discuss and review those 
financial statements and reports prior to issuance.  Management 
has represented, and KPMG LLP has confirmed, to the Audit 
Committee, that the financial statements were prepared in 
accordance with accounting principles generally accepted in the 
United States of America.

The Audit Committee received from and discussed with KPMG LLP 
the written disclosure and the letter required by Independence 
Standards Audit Committee Standard No. 1 (Independence 
Discussions with Audit Committees).  These items relate to that 
firm's independence from the Company.  The Audit Committee also 
discussed with KPMG LLP matters required to be discussed by the 
Statement on Auditing Standards No. 61 (Communication with Audit 
Committees) of the Auditing Standards Audit Committee of the 
American Institute of Certified Public Accountants to the extent 
applicable.  The Audit Committee implemented a procedure to 
monitor auditor independence, reviewed audit services performed 
by KPMG LLP and discussed with the auditors their independence.
In reliance on these reviews and discussions referred to above, 
the Audit Committee has recommended to the Board of Directors 
that the Company's audited financial statements be included in 
the Company's Annual Report on Form 10-KSB for the fiscal year 
ended August 31, 2004.

/s/ Harrison H. Augur
/s/ Richard L. Guido
/s/ George M. Middlemas


			ELECTION OF DIRECTORS
			  (Proposal No. 1)

The current number of members of the Board of Directors is fixed 
at six.  The Board of Directors nominates the following 
six persons currently serving on the board for reelection to the 
board:  Harrison H. Augur, Thomas P. Clark, Richard L. Guido,  
Mark W. Harding, Peter C. Howell and George M. Middlemas.  
Biographical information regarding the directors and nominees 
follows:

MARK W. HARDING.  Mark W. Harding joined the Company in April 
1990 as Corporate Secretary and Chief Financial Officer.  He was 
appointed President of the Company in April 2001 and joined the 
Board in 2004.  He brings a background in public finance and 
management consulting.  From 1988 to 1990, Mr. Harding worked 
for Price Waterhouse, where he provided public finance and other 
investment banking related services.  Mr. Harding is the 
President and serves on the board of the Rangeview Metropolitan 
District.  Mr. Harding has a B.S. Degree in Computer Science and 
a Masters in Business Administration in Finance from the 
University of Denver.

HARRISON H. AUGUR.  Mr. Augur joined the Board and was elected 
Chairman in April 2001.  For more than 20 years, Mr. Augur has 
been involved with investment management and venture capital 
investment groups.  Mr. Augur has been a General Partner of  CA 
Partners since 1987, and General Partner of Patience Partners 
LLC since 1999.  Mr. Augur received a Bachelor of Arts degree 
from Yale University, an LLB degree from Columbia University 
School of Law, and an LLM degree from New York University School 
of Law.

THOMAS P. CLARK.  Thomas P. Clark joined the Board in 1987.  Mr. 
Clark was the Chief Executive Officer of the Company from April 
2001 until his resignation in November 2004.  Prior to his 
appointment as Chief Executive Officer, Mr. Clark served as 
President and Treasurer of the Company from 1987 to April 2001. 
His other business activities include:  President, LC Holdings, 
Inc. (business development), 1983 to present, and Partner 
(through a wholly owned corporation) of Resource Technology 
Associates (development of mineral and energy technologies), 
1982 to present.  Mr. Clark serves on the board of the Rangeview 
Metropolitan District.  Mr. Clark received his Bachelor of 
Science degree in Geology and Physics from Brigham Young 
University.

PETER C. HOWELL. Peter C. Howell was appointed to fill a vacancy 
on the Board on February 3, 2005.  From 1997 to present, Mr. 
Howell has served as an advisor to various business enterprises 
in the area of acquisitions, marketing and financial reporting.  
From August 1994 to August 1997, Mr. Howell served as the 
Chairman and Chief Executive Officer of Signature Brands USA, 
Inc. (formerly known as Health O'Meter) and from 1989 to 1994 
Mr. Howell served as Chief Executive Officer and a director of 
Mr. Coffee, Inc.  Mr. Howell is a member of the board of 
directors of Libbey, Inc., Global Lite Array and Great Lakes 
Cheese Company.    

RICHARD L. GUIDO.  Mr. Guido served as a member of the Company's 
board from July 1996 through August 31, 2003, and rejoined the 
Board in 2004.  Mr. Guido was an employee of INCO Securities 
Corporation from 1980 through August 2003, and previously served 
on the Company's board pursuant to a voting agreement between 
INCO and the Company.  That agreement is no longer in effect.  
Mr. Guido was Associate General Counsel of Inco Limited and 
President, Chief Legal Officer and Secretary of Inco United 
States, Inc. Mr. Guido received a Bachelor of Science degree 
from the United States Air Force Academy, a Master of Arts 
degree from Georgetown University, and a Juris Doctor degree 
from the Catholic University of America.

GEORGE M. MIDDLEMAS.  George M. Middlemas has been a Director of 
the Company since April 1993.  Mr. Middlemas has been a general 
partner with Apex Investment Partners, a diversified venture 
capital management group, since 1991.  From 1985 to 1991, 
Mr. Middlemas was Senior Vice President of Inco Venture Capital 
Management, primarily involved in venture capital investments 
for INCO Securities Corporation.  From 1979 to 1985, 
Mr. Middlemas was a Vice President and a member of the 
Investment Committee of Citicorp Venture Capital Ltd., where he 
sourced, evaluated and completed investments for Citicorp.  

Mr. Middlemas is a director of Tut Systems and Pennsylvania 
State University - Library Development Board. Mr. Middlemas 
received a Bachelors degree in History and Political Science 
from Pennsylvania State University, a Masters degree in 
Political Science from the University of Pittsburgh and a Master 
of Business Administration from Harvard Business School.
The Proxy cannot be voted for more than the six nominees named.  
Directors are elected for one-year terms or until the next 
Annual Meeting of the Stockholders and until their successors 
are elected and qualified.  All of the nominees have expressed 
their willingness to serve, but if because of circumstances not 
contemplated, one or more nominees is not available for 
election, the Proxy holders named in the enclosed Proxy intend 
to vote for such other person or persons as management may 
nominate.  

Mr. Middlemas was designated as a nominee to the board of 
directors pursuant to the EPFund Voting Agreement, which 
agreement obligates Mr. Clark, Ms. Hansson, a former director of 
the Company, the Apex Partnerships and Fletcher Byrom, a former 
director of the Company, to vote for the designee of the EPFund. 
This agreement will  terminate at such time as EPFund no longer 
owns shares of common stock of the Company.  As of February 28, 
2005, EP Fund owns 478,351 shares of common stock.

THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS VOTE 
"FOR" THE ELECTION AS DIRECTORS OF THE SIX PERSONS NOMINATED.

    RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS
                     (Proposal No. 2)

Action is to be taken by the stockholders at the Meeting with 
respect to the ratification and approval of the selection by the 
Audit Committee of the Company's Board of Directors of Anton 
Collins Mitchell LLP ("ACM") to be the independent auditors of 
the Company for the fiscal year ending August 31, 2005. ACM 
replaces KPMG LLP ("KPMG") as the Company's independent auditors 
beginning with the first quarter fiscal 2005 review. As 
recommended by the Audit Committee, the Board of Directors on 
December 15, 2004, dismissed the Company's independent auditors, 
KPMG, and engaged ACM as its independent auditors to audit the 
Company's financial statements for the fiscal year ending August 
31, 2005.  Neither KPMG nor ACM has and have not had at any time 
any direct or indirect financial interest in the Company and do 
not have and have not had at any time any connection with the 
Company in the capacity of promoter, underwriter, voting 
trustee, director, officer or employee.  Neither the Company, 
nor any officer, director or associate of the Company has any 
interest in KPMG or ACM.

KPMG's reports on the financial statements of the Company for 
the two most recent fiscal years ended August 31, 2004 and 2003, 
did not contain an adverse opinion or a disclaimer of opinion, 
nor was either qualified or modified as to uncertainty, audit 
scope or accounting principles. 

During the two most recent fiscal years ended August 31, 2004 
and 2003, and the subsequent interim period through December 15, 
2004 (the date KPMG was dismissed by the Company), there were 
(i) no disagreements with KPMG on any matter of accounting 
principles or practices, financial statement disclosure, or 
auditing scope or procedures which, if not resolved to KPMG's 
satisfaction, would have caused KPMG to make reference to the 
subject matter of such disagreement in connection with its 
reports on the financial statements of the Company, and (ii) no 
reportable events as listed in Item 304(a)(1)(v) of 
Regulation S-K. 

During the two most recent fiscal years ended August 31, 2004 
and  2003, respectively, and the subsequent interim period 
through December 15, 2004, neither the Company nor anyone on its 
behalf has consulted ACM regarding either (i) the application of 
accounting principles to a specified transaction, either 
completed or proposed; or the type of audit opinion that might 
be rendered on the Company's financial statements, and neither a 
written report nor oral advice was provided to the Company that 
ACM concluded was an important factor considered by the Company 
in reaching a decision as to any accounting, auditing or 
financial reporting issue; or (ii) any matter that was either 
the subject of a disagreement (as defined in 
Item 304(a)(1)(iv) of Regulation S-K and the related 
instructions to Item 304(a) of Regulation S-K), or a reportable 
event (as described in Item 304(a)(1)(v) of Regulation S-K).
Representatives from ACM will be present at the Meeting and will 
have the opportunity to make a statement if (s)he so desires and 
will be available to respond to appropriate questions.

Audit Fees

Commencing in 2004, the Audit Committee implemented policies for 
review and approval of all services to be provided by its 
independent auditors before the firm is retained for such 
services, which policies are included in the Audit Committee 
Charter.  In 2004 all services were approved by the Audit 
committee.

The following table summarizes fees billed to the Company by 
KPMG during the fiscal years ended August 31, 2004 and 2003 for 
(i) audit of financial statements and review of securities 
filings; (ii) services reasonably related to performance or 
review of financial statements, (iii) tax compliance, tax advice 
and tax planning, and (iv) other products and services:


			  2004		  2003
Audit fees		$ 52,500	$29,800
Audit-related fees	  61,700 	      -
Tax fees		       -	      -
Other fees		       -	      -
Total fees		$114,200	$29,800
            
Audit fees related entirely to the audits of the Company's 
annual financial statements and the review of the Company's 
interim financial statements.  Audit related fees related to the 
review of the Registration Statement used in the equity offering 
completed in June of 2004.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE RATIFICATION 
OF ANTON COLLINS MITCHELL LLP AS INDEPENDENT AUDITORS.

ACTION TO BE TAKEN UNDER THE PROXY

The accompanying Proxy will be voted "FOR" approval of proposal 
2 and "FOR" the directors nominated by the Board, unless the 
Proxy is marked in such a manner as to withhold authority to so 
vote.  The accompanying Proxy will also be voted in connection 
with the transaction of such other business as may properly come 
before the Meeting or any adjournment or adjournments thereof.  
Management knows of no other matters, other than the matters set 
forth above, to be considered at the Meeting.  If, however, any 
other matters properly come before the Meeting or any 
adjournment thereof, the persons named in the accompanying Proxy 
will vote such Proxy in accordance with their best judgment on 
any such matter.  The persons named in the accompanying Proxy 
will also, if in their judgment it is deemed to be advisable, 
vote to adjourn the Meeting from time to time.

STOCKHOLDER PROPOSALS

Stockholder proposals for inclusion in the Proxy Statement for 
the 2006 Annual Meeting of Stockholders must be received at the 
principal executive offices of the Company by November 11, 2005 
but not before September 2, 2005.  For more information refer to 
the Company's Bylaws which were filed as Exhibit 3.2 to the 
Registration Statement on Form SB-2/A filed on June 10, 2004. 
The Company is not required to include proposals received 
outside of these dates in the proxy materials for the 2006 
Annual Meeting of Stockholders.

THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB, WHICH WAS MAILED TO 
STOCKHOLDERS ON OR AROUND DECEMBER 17, 2004, WILL BE SENT 
WITHOUT CHARGE TO ANY STOCKHOLDER REQUESTING IT IN WRITING FROM:  
PURE CYCLE CORPORATION, ATTENTION MARK W. HARDING, 8451 DELAWARE 
STREET, THORNTON, CO 80260 OR BY SENDING AN EMAIL TO 
INFO@PURECYCLEWATER.COM.  ADDITIONALLY, A COPY CAN BE FOUND ON 
THE COMPANY'S WEBSITE AT WWW. PURECYCLEWATER.COM.