<SUBMISSION>
<ACCESSION-NUMBER>0000906504-06-000016
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060809
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20060809
<DATE-OF-FILING-DATE-CHANGE>20060809
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>RGC RESOURCES INC
<CIK>0001069533
<ASSIGNED-SIC>4923
<IRS-NUMBER>541909697
<STATE-OF-INCORPORATION>VA
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-26591
<FILM-NUMBER>061017902
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>519 KIMBALLAVENUE N.E.
<CITY>ROANOKE
<STATE>VA
<ZIP>24016
<PHONE>5407774427
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>519 KIMBALL AVENUE N.E.
<CITY>ROANOKE
<STATE>VA
<ZIP>24016
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>frm8k0806doc.txt
<DESCRIPTION>FORM 8-K FOR AUGUST 2006
<TEXT>
                       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): August 9, 2006

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


                               RGC RESOURCES, INC.
             (Exact name of Registrant as specified in its charter)

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


      Virginia                   000-26591                    54-1909697
-------------------------------------------------------------------------------
(State or other                 (Commission                 (IRS Employer
jurisdiction of                 File Number)               Identification No.)
incorporation)


519 Kimball Ave., N.E.        Roanoke, Virginia                  24016
-------------------------------------------------------------------------------
(Address of principal executive offices)                       (Zip Code)


Registrant's telephone number, including area code: 540-777-4427


(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:

|__|  Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 240.425)

|__|  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

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

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

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


<PAGE>


ITEM 2.02.       RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

                 On August 9, 2006, RGC Resources, Inc. issued a press release
                 announcing third quarter results for the quarter ending June
                 30, 2006. A copy of this press release is attached hereto as
                 Exhibit 99.1 and is hereby incorporated by reference. The
                 information in this Current Report, including the Exhibit
                 attached hereto, shall not be deemed "filed" for purposes of
                 Section 18 of the Securities Act of 1934, nor shall it be
                 deemed incorporated by reference in any filing under the
                 Securities Act of 1933, except as shall be expressly set forth
                 by specific reference to such filing.


ITEM 9.01.       FINANCIAL STATEMENTS AND EXHIBITS.

                  (d)      Exhibits

                  99.1     Press Release dated August 9, 2006.

<PAGE>







                                   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.

                                   RGC RESOURCES, INC.



Date: August 9, 2006               By: s/Howard T. Lyon

                                       Howard T. Lyon
                                       Vice-President, Treasurer and Controller
                                      (Principal Financial Officer)


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>frm8k0806ex99.txt
<DESCRIPTION>EXHIBIT 99.1 TO FORM 8-K FOR AUGUST 2006
<TEXT>
                                                                   Exhibit 99.1


Contact:          John B. Williamson, III
                  Chairman, President and CEO
Telephone:        (540) 777-3810

FOR IMMEDIATE RELEASE

                               RGC RESOURCES, INC.
                         THIRD QUARTER FINANCIAL RESULTS

ROANOKE, Va. (August 9, 2006)--RGC Resources, Inc. (NASDAQ: RGCO) announced
consolidated Company earnings of $9,095 on continuing operations and a loss of
$56,959 or ($0.03) per diluted share for total operations on 2,137,542 average
diluted shares outstanding for the quarter ended June 30, 2006. This compares to
quarterly earnings for the same quarter last year of $87,482 or $0.04 per
diluted share on continuing operations and earnings of $229,525 or $0.11 per
diluted share for total operations on 2,098,683 average diluted shares
outstanding. John Williamson, Chairman, President and CEO, attributed the modest
decline in earnings from continuing operations primarily to the impact of
significantly warmer weather in the current quarter reducing the volume of April
and May natural gas sales.

         Diluted earnings per share for the twelve months ending June 30, 2006
were $1.42 on continuing operations and $1.48 for total operations on 2,120,957
average diluted shares outstanding compared to $1.38 for continuing operations
and $6.06 for total operations on 2,082,598 average diluted shares outstanding
for the twelve months ended June 30, 2005. Earnings for the twelve months ended
June 30, 2005 were positively impacted by a gain of $9,504,329 or $4.56 per
diluted share on the sale of propane assets in the quarter ended September 30,
2004. Williamson attributed the improvement in earnings from continuing
operations for the twelve months ended June 30, 2006 to improved natural gas
sales margins.

         RGC Resources, Inc. provides energy and related products and services
to customers in Virginia and West Virginia through its operating subsidiaries
including Roanoke Gas Company, Bluefield Gas Company, Diversified Energy Company
and RGC Ventures of Virginia, Inc.

         From time to time, the Company may publish forward-looking statements
relating to such matters as anticipated financial performance, business
prospects, technological developments, new products, research and development
activities and similar matters. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a variety of factors
could cause the Company's actual results and experience to differ materially
from the anticipated results or other expectations expressed in the Company's
forward-looking statements.

         Summary financial statements for the third quarter and twelve months
are as follows:



<PAGE>
<TABLE>
<CAPTION>

                      RGC Resources, Inc. and Subsidiaries
      Condensed Consolidated Statements of Income and Comprehensive Income
                                   (Unaudited)

                                                        Three Months Ended               Twelve Months Ended
                                                             June 30,                         June 30,
                                                      2006            2005              2006             2005
                                                  -------------  ---------------   --------------   --------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>
Revenues                                         $   12,959,458  $    15,819,714  $   112,802,601  $    93,327,873
Cost of sales                                         8,092,983       10,895,210       87,014,261       68,924,773
                                                  -------------  ---------------   --------------   --------------
Gross margin                                          4,866,475        4,924,504       25,788,340       24,403,100
Other operating expenses                              4,289,415        4,311,800       18,571,299       17,818,275
Interest expense                                        561,566          465,107        2,401,437        1,996,874
                                                  -------------  ---------------   --------------   --------------
Income (loss) from continuing operations
   before income taxes                                   15,494          147,597        4,815,604        4,587,951
Income tax expense (benefit) from continuing
   operations                                             6,399           60,115        1,800,975        1,708,663
                                                  -------------  ---------------   --------------   --------------
Net income (loss) from continuing operations              9,095           87,482        3,014,629        2,879,288
Income (loss) from discontinued operations,
   net of income taxes                                  (66,054)         142,043          125,935        9,738,373
                                                  -------------  ---------------   --------------   --------------
Net income (loss)                                       (56,959)         229,525        3,140,564       12,617,661
Other comprehensive income, net of tax                  319,045              895          363,357           54,813
                                                  -------------  ---------------   --------------   --------------
Comprehensive income (loss)                      $      262,086  $       230,420  $     3,503,921  $    12,672,474
                                                  =============  ===============   ==============   ==============

Basic earnings per share of common stock:
   Income (loss) from continuing operations      $            -  $          0.04  $          1.43  $          1.39
   Discontinued operations                                (0.03)            0.07             0.06             4.71
                                                  -------------  ---------------   --------------   --------------
   Net income (loss)                             $        (0.03) $          0.11  $          1.49  $          6.10
                                                  =============  ===============   ==============   ==============

Diluted earnings per share of common stock:
   Income (loss) from continuing operations      $            -  $          0.04  $          1.42  $          1.38
   Discontinued operations                                (0.03)            0.07             0.06             4.68
                                                  -------------  ---------------   --------------   --------------
   Net income (loss)                             $        (0.03) $          0.11  $          1.48  $          6.06
                                                  =============  ===============   ==============   ==============

Cash dividends per common share                  $        0.300  $         0.295  $         1.195  $         5.680
                                                  =============  ===============   ==============   ==============

Weighted average number of common shares outstanding:
   Basic                                              2,127,188        2,085,029        2,109,845        2,068,385
   Diluted                                            2,137,542        2,098,683        2,120,957        2,082,598
</TABLE>
<TABLE>
<CAPTION>


                      Condensed Consolidated Balance Sheets
                                   (Unaudited)

                                                                             June 30,
Assets                                                                2006              2005
                                                                 ---------------   --------------
<S>     <C>    <C>    <C>    <C>    <C>    <C>
Current assets                                                  $     35,668,907  $    31,069,548
Total property, plant and equipment, net                              77,048,174       72,898,842
Other assets                                                             505,549          445,261
                                                                 ---------------   --------------

   Total Assets                                                 $    113,222,630  $   104,413,651
                                                                 ===============   ==============

Liabilities and Stockholders' Equity

Current liabilities                                             $     28,161,861  $    36,813,828
Long-term debt                                                        30,000,000       16,000,000
Deferred credits and other liabilities                                13,708,253       12,275,618
                                                                 ---------------   --------------
   Total Liabilities                                                  71,870,114       65,089,446
Stockholders' Equity                                                  41,352,516       39,324,205
                                                                 ---------------   --------------

   Total Liabilities and Stockholders' Equity                   $    113,222,630  $   104,413,651
                                                                 ===============   ==============
</TABLE>
</TEXT>
</DOCUMENT>
</SUBMISSION>
