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Enclosure No. 3. EEBOET on inteeioe eailwat. The Disteict Engineee, Dunedin, to the Engineee-in-Chief. Sic,— Public Works Office, Dunedin, 21st July, 1877. In accordance with your instructions, number and date as per margin,* I have the honor to submit the following report on the various routes suggested for a railway into the interior of Otago, all of which are shown in distinctive colours on the accompanying map. A knowledge of the configuration of the country, and an examination of the map, determines the proposition to be the connection of the Upper Clutha Valley to the main line of railway and the seaboard by the shortest and easiest route that will in its course open up the most good country for settlement. No less than seven routes have at various times been proposed, with a common terminus at Cromwell. Commencing at the south aud proceeding northwards, they comprise the following:— No. 1. Kingston to Cromwell, vid the eastern side of Lake AVakatipu and the Kawarau Valley ; coloured green on map. No. 2. Waipahi to Cromwell, vid Tapanui, Ettrick (Mount Benger), and Clutha Valley, joining No. 3 at Ettrick ; coloured yellow. No. 3. Lawrence to Cromwell, vid Dunkeld (Beaumont) and Clutha Valley; coloured purple. No. 4. North Taieri to Cromwell, vid StrathTaieri, Maniototo Plain, Ida Burn Valley, Manuherikia Valley, and Clyde; coloured red. No. 5. Palmerston to Cromwell, via Macrae's, Strath Taieri, Maniototo Plain, Ida Burn Valley, Manuherikia Valley, and Clyde, joining No. 4at Strath Taieri; coloured neutral tint. No. 0. Palmerston to Cromwell, vid Shag Valley, Maniototo Plain, Ida Burn Valley, Manuherikia Valley, and Clyde, joining No. 4 on tho Maniototo Blaiu, opposite Naseby; coloured blue. No. 7. Duntroon to Cromwell, vid the Kyeburn Bass, the Mauiototoßlain, Ida Burn Valley, Manuherikia Valley, and Clyde, joining No. 4 on the Maniototo Plain, opposite Naseby ; coloured brown. Some of these routes have alternative lines (shown dotted in the same colour on plan) for a portion of the distance: thus No. 4, instead of joining the main line at the Chain Hills Tunnel, may join the branch to Outram at a point 2\ miles from the Mosgiel Station. Instead of following the leading spurs from Macrae's to Palmerston, No. 5 may come down the north branch of the Waikouaiti Biver to the Waikouaiti Township. No. 7 has three alternative lines —one vid the Otekaik Valley, joining at tho Kyeburn Bass; another from the terminus of the Waiareka Eailway, joining at Livingston ; and a third from Teneraki, on the Waiareka line, also joining at Livingston. The following table gives the distance by the different routes from several places on the seaboard to Cromwell and the Maniototo Blains, opposite Naseby, two leading points in the interior; it also shows the amount of present railway available in each instance. * Minute P.AV. 77/2269 and telegram of 11th June, 1877.