NUVEEN TAX-FREE RESERVES, INC.
SUPPLEMENT TO PROSPECTUS
Effective March 15, 1996, John Nuveen & Co. Incorporated ("Nuveen"),
sponsor and underwriter of the Nuveen Open-End Tax-Free Mutual Funds
(the "Funds") and the Nuveen Tax-Free Unit Investment Trusts (the
"Trusts"), will offer a program of advertising support to registered
broker-dealer firms, banks and bank affiliates ("Firms") that sell Fund
shares and/or Trust units. Under this program, Nuveen will pay or
reimburse the Firm for up to one half of specified media costs incurred
in the placement of advertisements which jointly feature the Firm and the
Nuveen Funds and Trusts. Reimbursements to the Firm will be based on the
number of the Firm's registered representatives who have sold Fund shares
and/or Trust units during the prior calendar year according to an
established schedule. Reimbursement under this program will be made by
Nuveen and not by the Nuveen Funds or Trusts.
March 15, 1996
