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34 perches, were also forfeited; making a total of twenty-two holdings, representing 10,058 acres 3 roods 27 perches, reverted to the Crown. The majority of these sections, when reoffered for disposal, readily find new selectors. • Revaluation of Surrendered Holdings. —In November, 1898, a commission of inquiry, consisting of three members of the Land Board and the Crown Lands Eanger, was appointed to examine and report on the cases of tenants who agreed to surrender their holdings with a view to having them revalued. Forty-five tenants who had applied for reductions were offered relief upon the terms fixed, which included the payment of all arrears on the existing leases, which were then to be surrendered, and the lands reoffered for selection after revaluation. The majority of the tenants, however, appeared indisposed to incur the risk of losing their holdings by public competition when reoffered, and seven only availed themselves of the opportunity. The holdings were very carefully inspected and revalued previous to the new disposal of the lands. Forests. —During the year an area cf 371,695 acres, comprising all the principal blocks of Crown bush land throughout the district, has been set apart as State forest reserves, and it is to be hoped that the timber on these reserves will, for scenic and climatic considerations, secure exemption from destruction. It is satisfactory to record that, owing partly to the damper season, and partly, it is hoped, to increased care by residents in bush localities, there has been an absence this year of the destructive fires which have in past seasons wrought such havoc in bush belonging both to the State and to private owners. Alteration of District Boundaries. —By an alteration of district boundaries gazetted in January last an approximate area of 1,305,390 acres, comprising the greater portion of the Amuri County, has been added to this district, whose northern boundary now touches the Conway and Clarence Eivers, and extends as far north as Lake Tennyson. An area of 478,000 acres in the south, comprising the watershed of the rivers flowing into Lakes Wanaka and Hawea, has similarly been deducted from Canterbury and added to the Otago District. As the transfers of records, &c, had not been perfected at the end of the financial year, the returns are made on the basis of the former boundaries. Crown Lands Rangers' Reports. —The reports received from Crown Lands Eangers during the year show that, except in a very small minority of cases, genuine and bond fide settlement is progressing very favourably in this district. A good season, with satisfactory yields of crops and abundance of pasturage for stock, has helped settlers to recover from the effects of the previous bad season. In cases where settlers are reported as not resident on their holdings it is usually the case that they reside with relatives, or on other properties in the neighbourhood ; or, in the case of some of the smaller holdings which are insufficient for maintenance, that they are obliged to be so much away at work that they can scarcely be classed as resident. Improvements have been generally maintained well up to, and in most cases considerably beyond, the amounts prescribed by law, although it is probable that when inspections at the end of the sixth year become due there will be found a good many who will have been unable remuneratively to effect the 30 per cent, of capital value and £1 per acre required by " The Land Act, 1892," from holders whose selections comprise land of nominally first-class quality. Especially is this likely to be the case with settlers around Lake Ellesmere, of whom, however, it may be noted that, with increased immunity from floods, there is also an increase of permanent residence on their leaseholds. The work done by the Crown Lands Eangers, whose manifold duties comprise inspecting settlement holdings, reporting on transfers, applications for leases of Crown lands, reserves, riverbeds, &c, resuming possession of forfeited holdings, inspecting pastoral runs, and watching over the preservation of bush lands, &c, can only be very imperfectly indicated in any tabular statements. There are now in Canterbury 589 leaseholds under the Land for Settlements Acts, besides the 236 leaseholds on the Cheviot Estate, and all of these require especially careful and detailed inspection to see that the special regulations as to cultivation of the lands, maintenance of buildings, &c, are properly carried out. Lands itnder Land for Settlements Acts. Lands offered during the Year. —Two estates have, during the period covered by this report, been placed on the market for selection. The Pawaho Hamlet may almost be termed a suburban settlement, being situated at Heathcote Valley, abutting on the railway-line from Christchurch to Port Lyttelton. It comprises a total area of 50 acres 1 rood 4 perches, which was opened on the sth April, 1898, under the workmen's homes regulations, in twenty-five lots, ranging from half an acre upwards. Eight of the lots, aggregating nearly 16 acres, consist principally of hill-slope, the balance being flat land. Eight lots were disposed of at the first ballot, and most of the remainder have since been taken up ; at the present time four of the hill-side sections only remain unselected. Many of the sections have been taken up by workmen employed at the Port, to whom the settlement offered a good opportunity of obtaining cultivable land on which to occupy their enforced leisure. The other estate offered is known as the Waikakahi Settlement, and is situated in South Canterbury, between the Waihao and Waitaki Eivers, consisting partly of the flat land which skirts the coast, and which is for the most part of excellent agricultural quality, and partly of low downs and hills of superior pastoral character. The property was purchased from Allan McLean, Esq., and was opened for selection on the 20th March, 1899, the area offered comprising 31,976 acres, in 126 allotments, on lease in perpetuity ; 15,318 acres, in fourteen small grazing-runs ; 313 acres, in two lots, on temporary grazing license (these lots being destined to be used for plantation purposes) ; and 25 acres, in forty-seven lots, in the Township of Morven, adjoining the Waihao Bail-way-station. 384 acres were withheld for further subdivision and disposal in the future. Seven hundred and forty-one applications were received on and before the date of opening, the bulk of these coming from all parts of Canterbury and Otago, though a few other districts were also represented. The examination of all the applicants within the limited time available entailed very