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excellent system it is essential that the holdings comprise good land convenient to work and markets. In many cases it was quite out of the power of the Crown and the department to provide these necessary conditions. Mr. Murray roports as follows :— There are seven settlements in this district, no more having been started during the year. The earliest of them—that at Taihape —was started in October, 1894, the remainder during 1895. The Ohutu Settlement is the best, though extensive improvements have been effected in the Hautapu, Taihape, and Masterton Tenui Settlements. The settlers on all the farms have been employed for fully eight months in the year, on an average, on co-operative work under Government at road-clearing and formation or at bushfelling; many settlers have been practically in continuous employment. The character of the work done has been good throughout. Horopito Improved Farm, Waimarino (Sections 100 acres each). — One forfeiture has occurred during the year, there being now only two settlers left, and these are desirous of increasing the size of their holdings to 200 acres each, as the locality and altitude have shown that 100 acres is too small. The only work done has been ringfelling the sections preparatory to fencing—the area thus felled being 9 acres—and the improvement of the felled portions by fencing and logging-up. Bongoiti Improved Farm, Te Eapua (Sections 100 acres each). —Four settlers are now resident, they having built three houses, felled 76f acres bush, and erected 40 chains of fencing. They are now engaged on the construction of the Hautapu Valley Boad, on which they have already completed 88 chains of bushwork and 15 chains dray-road formation. The soil is good, but the altitude is too great and the access still defective. One forfeiture has occurred during the year. Hautapu Improved Farm, Motukawa (Sections about 100 acres each). —Ten settlers are now resident, or, with families included, forty persons are now on the farm. A school will probably soon be commenced. All the sections are now accessible by road or track. Direct access to Taihape by the Taihape-Paengaroa Eoad has been obtained, thus shortening the distance by three miles. Two good fords have been constructed across the Hautapu Eiver. Extensive private improvements have been done on the farm, but owing to the altitude and distance from markets the results have not been so satisfactory as anticipated. Two forfeitures have occurred during the year. The work done comprises 42 chains bushwork, 45 chains dray-road formation, 60 lineal feet culverts, 145 acres bushfelling, and advances on three buildings. Taihape Improved Farm, Awarua (Sections from 12 to 17 acres each). —Ten settlers are now resident on the farm, representing thirty-eight souls. All the sections are now practically accessible by dray-road. During the year there has been a large amount of fencing done. Three of the sections are now ring-fenced and five others partially so. The only work done which has been paid for by Government during the year is 9 acres of bushfelling. In two cases further advances have been made on buildings and fences. Six of the settlers are employed constantly on roadworks ; the others usually work at their own trades in the adjoining township of Taihape. Total value of improvements, £870 18s. 7d. Otuarei Improved Farm, Awarua (Sections 100 acres each). —All the sections except four have been forfeited and withdrawn from sale under the present conditions. On account of its altitude and inaccessibility this farm is entirely unsuitable for such small areas as 100 acres. Before this land can be successfully occupied the original sections will require grouping into areas of 300 to 400 acres. The only works done during the year have been scrubbing 92 acres on Kaingaroa Eoad, bushfelling 12 acres, erection one dwellinghouse and 62 chains fencing. There is only one settler actually resident on the block. Ohutu Improved Farm, Awarua (Sections 13 acres to 130 acres). —There are twenty-eight sections in this farm. Two are still withheld from sale on account of the extension of the Wairano and the deviation of part of the Puhirua Eoad. All the others are being extensively improved, though only thirteen persons are yet resident on the block. The land is of excellent quality, the grass already sown having taken very well. The situation of the farm is also good, the North Island Main Trunk Eailway being only about half a mile distant. All the work in the farm and on the adjoining roads is being done by the settlers. There is also a fair amount of work obtainable from the surrounding free selectors. The work done comprises six miles and a quarter engineering survey, 62 chains bushfelling on roads, 220 acres bushfelling, Gorge Creek Bridge (55ft. span), 120 lineal feet culverts, 139 chains dray-road (Torere and Gorge) bushwork and formation, 184 chains horse-track bushwork and formation, and advances on two buildings. The above-mentioned alteration in roads will give better access to the southern parts of the block, besides shortening the total length of roads requiring formation. Masterton Tenui Improved Farm, Awarua (Sections 100 acres each). —Two sections have been forfeited during the year, one, however, having been since reallotted. All the sections are now accessible by dray-road except Section 39, which is cut off by the railway-cutting now in progress along the frontage. Till recently nearly all the settlers have been engaged on the railway-works in the vicinity. Since Christmas some of them have again started on the roadworks. Several of them are effecting considerable improvements in the way of fencing, and taken on the whole the settlement is making very satisfactory progress. The amount of bushfelling done during the season has been 76 acres, upon 57-i of which Government advances have been made. Three advances have also been made on buildings and fences. Captain Turnsr reports as under: — Akitio Improved-farm Settlement.—The present area of this farm-settlement is 4,583 acres 1 rood, divided into forty-four sections, ten of which, containing 1,283 acres 1 rood, are held by the Crown, the remaining thirty-two, containing 3,300 acres, being in occupation of the settlers. These thirty-two have sixty-six persons dependent upon them. Only ten of the occupiers actually reside on the settlement, who with their families make a total resident population of forty. To the