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the Court at Stafford, but they are in the initial stage yet, and require careful prospecting before being converted into special claims. The same remarks apply to Goldsborough, the Upper Waimea, Kawaka, and Kapatea, being all taken up as dredging areas. The subsidised tail-race brought into the Upper Waimea has been constructed as far as the first claims on the flat, but there seeems to be no disposition on the part of those on whose behalf the race was constructed to make use of it. The dual control, under which this and other subsidised races have been constructed, has not given entire satisfaction, and the matter wants careful looking into. Kumara Sub-district. This district shows no signs of improvement, and may be said to just hold its own. An increased water-supply, obtained from the Wainihinihi, will soon be available, and with this the returns may not diminish. The great length of the tail-races necessary to work the back part of the terrace necessitates an increased water-supply to make it pay. A hundred-acre claim was applied for in the neighbourhood of the Nos. 3, 4, and 5 Channels, but was refused on the ground that it was wanted by the ordinary miner, who was prepared to work it in extended claims areas of from 1 to 5 acres. On the Greenstone, all the creek is now held as dredging-ground, and several dredges are building and getting ready to work. Good dredging prospects have been obtained, both in the Teremakau and the Greenstone Creek, and both streams stand a fair chance of being worked. The Greenstone Junction Claim, having their plant well advanced, will be first to get to work, and the general opinion is that this will be a payable claim. A good number of men are at work sluicing into Greenstone Creek, and I hear they are doing fairly well. The same applies to parties to the north, the scarcity of water being the great drawback. The old Duke of Edinburgh Company's race is almost idle, and will require to be extended further west before it will be of much use. Another race in the same neighbourhood, owned by Harris and others, is in the same position, and to be of use it must be carried further. The population remains about stationary—about two thousand five hundred, of which one hundred are Chinese. Most of the Chinamen are on the Greenstone and Westbrook terrace, and are doing fairly well; they are very orderly and well behaved. The whole district is very peaceable, and little or no crime is reported. Sittings of the Magistrate's and Warden's Courts are held fortnightly. There are also sittings of the District Court every two months. Notes supplied to the Warden by Mr. Aitken, Manager Government Water-races, Kumara. Waimea. —No new ground has been opened during the year, and the old ground worked has been poor. The miners in the back gullies have had a good year, as the water-supply has been fairly good throughout. The number of miners employed on the field is about the same as last year. The old ground is nearly worked out where it was at all payable, but considerable areas of poor ground are still unworked that with better methods, and plenty of water, would pay wages. The Waimea Mine tail-race has been completed, and arrangements are being made to construct private tail-races from the several claims into the main race. The races and dams for supplying water to the claims have also been completed, and before long a fair start should be made in several of the claims in Middle Branch Flat. In the Stafford district Kelly's Terrace drainage-tunnel has, during the year, been driven a further distance of 1,200 ft., and although the main bottom has been reached, gold in payable quantities has not been found. About 1,200 ft. has yet to be driven to reach the fiinemoa shaft, where good ground was said to have been prospected some years ago. The progress of this drainagetunnel has been very much retarded by disputes between the trustees and the contractors, which are still unsettled. In the Wheel of Fortune Claim a change has been made in the management, and about three miles and a half of race-extension is being proceeded with, and will be finished shortly. This race, when completed, will bring in about six sluice-heads of water from Foxe's Creek, which will be a valuable addition to the present supply owned by the company. In Calighan's, Menzone and party's claim continues to yield profitable returns, and several parties of Chinamen are working in the district. On the dividing spur, between Italian Gully and the left-hand branch of the Waimea Creek, there is a large area of payable wash if water in quantity could be obtained. One party has been at work there for many years, and is known to be doing very well. He holds a monopoly of all the water available at present. A large claim has been applied for, said to be for dredging purposes, on the lower side of the old and the present workings ; but I am afraid there will be considerable difficulty in operating dredges in this and many other localities that have been taken up, on account of the depth of bottom. Kumara. —Here a large quantity of material is being sluiced away daily. The whole of the known good ground has been worked, and the ground still to work, although consisting of goldbearing wash, is poor in comparison with the ground formerly worked on this field; still, with improved methods and plenty of water, sluicing will be carried on for many years to come. Little or no work has been done by the Deep Level Company during the year ; and although the Mines department has authorised the sinking of another shaft, and driving another 300 ft., the company has not yet taken the advantage of the promised subsidy. The amount authorised to be spent on this work was £450, of which the department was to contribute £300, and the company £150. The ground passed through by the deep-level tunnel may be said to be almost unprospected, no prospecting having been done except in driving the tunnel, and one or two jump-ups in the gravel overhead. There are, however, three or four parties still working on the deep levels, and they