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attention; these I have duly notified to have the necessary work done by the 31st March, otherwise it will be done at their expense. With the watercourses and creeks there is a greater difficulty, owing to the fact that as some of the sections through which the creeks flow have high banks, consequently the lands are not affected by overflowing during flood, nor do such obstructions as growth of grass or caving-in of the banks within these sections do them any damage, whilst at the same time if these are not cleared out the sections up stream with lower banks are flooded, to the loss of both crop and grass. A Drainage and River Board to deal with the drainage as well as river encroachments on estate might be the most satisfactory way of dealing with these questions. River encroachments to a certain extent have been stayed, but I regret to say that during a slight flood on the 15th January the river made a breach in the embankment on Section 10, Block XIII., where lately repaired. The outlook this year is so far satisfactory, and although the season is late, yet, granted seasonable weather for a time and absence of frost, average returns may be anticipated, and the settlers this year should wholly recover the set-back caused by the frost during the first three years of their tenancy. Okauia Settlement.— Area, 5,920 acres. Number of selections, 9 ; in occupation, 8. Resident on sections, 5; absentees, 3; deceased, 1. Number of houses, 7. Population, 13; increase, 1. Number of dairy cows, 15. Value of improvements effected by selectors during year, £139 ; total value of improvements, £1,809. The Ranger reports: Three of the selectors are absentees, and have never lived on their sections, and, with the exception of one miserable hut, have erected no houses and effected very few improvements since taking up occupation. The felled-bush grass land on the sections has been used for grazing purposes, except 20 acres. No further bush was felled or grassed. Of the other sections I have very little to report. One selector in Block XV. has made and is still making considerable improvements. One selector only milks for factory some fifteen cows. Rangiatea Settlement. —Area, 4,004 acres. Number of selections, 19; in occupation, 19. Number of selectors resident, 17. Number of houses, 17. Number of population, 100; decrease for year, 1. Number of milch cows, 455 ; increase, 3. Value of improvements effected during year, £825; total value of improvements, £5,200. Dairying is still the principal industry. Settlement progressing satisfactorily ; outlook good. The Ranger reports : This settlement is in a fairly prosperous condition. Dairying is still the principal industry. It has given good returns for the season, although a cold spring and late summer rather interfered with quality of supply and reduced the general average. Settlers have all complied with conditions of tenure, with some few exceptions on Waihekau Stream. This is becoming blocked and requires attention before winter, and I have called selectors' attention to necessary requirements and expect it will be attended to at once. I may remark that the improvements effected are all substantial and far more than required by conditions. The houses as a whole are really good, while the surroundings indicate that homes are being established. I may add that a good six-roomed house, well built and finished, has replaced the old homestead burnt down during the year. I can report settlement as being in a satisfactory and prosperous condition, with the outlook promising. Karapiro Settlement. —Area, 2,270 acres 3 roods 9 perches. Number of selections, 16' number occupied, 16. Number of selectors resident, 12 ; 2 deceased. Number of houses, 11. Value of improvements effected during year by settlers, £741 7s. 6d.; total value of improvements, £3 567 7s. 6d. Population, 43; decrease, 1. Number of milch cows, 257 ; increase for year, 67. Settlement still in a thriving and prosperous condition. The returns from dairying and other sources good. Improvements effected by settlers extensive and substantial. Settlement so far a success, with outlook encouraging. The Ranger reports : Settlement in a prosperous condition, and matters on the whole are satisfactory. Dairying still claims settlers' principal attention as the one industry, whilst at the same time other branches of farming are followed with profit. Since settlers took possession of land the value of the improvements effected and annual increase speaks for itself, and the class of homes as a rule indicate that the owners are improving both their properties and position. The settlement is apparently in a sound condition, settlers are doing well, and the outlook is satisfactory. Fencourt Settlement. —Area, 7,105 acres 3 roods 5 perches. Number of selections, 36; in occupation, 36. Resident on sections, 32. Number of houses, 34. Population, 149 ; increase for year, 60. Milch cows, 716 ; increase for year, 325. Value of improvements effected by selectors during year, £2,926 ; total value of improvements, £6,374. Of the houses twenty-eight have been erected by selectors. Settlement still progressing satisfactorily. Want of drainage is the only drawback. Dairy industry still on the increase. Substantial and extensive improvements still being made. Settlement, now three years in existence, is in sound condition and prospects good. The Ranger reports :Of the four non-residents, one is the last section taken up. The selector has effected considerable improvements, and informed me that he will shortly be taking his family on the land and making his home on the section. The other absentee is the wife of a selector who has hitherto evaded residence. It is now three years since this settlement was thrown open for selection, and the results so far have been and are very encouraging, as shown by the substantial and extensive improvements and the number of dairy cattle. Two factories receive supplies of milk from selectors; a certain area of white crops is cultivated ; while both green crops for winter feeding, together with turnips for grazing purposes, receive attention. Taken I*_C. 1 App.