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The receipts are' not so satisfactory as I expected at beginning of year, owing chiefly to non-completion of race to Back Lead, also to the parties working along the line of race to Argyle Terrace not using water steadily and in small quantities. I may state that the portion of ground the race at present commands is getting pretty well worked out, therefore the men lose a great deal of time in shifting their working plant from place to place. The incoming year will be able to give a fair return of revenue, as there is every prospect of the race being extended to Back Lead, Tenders having been called for the work of putting the syphon across Ballarat Creek in three contracts. In Section No. 12, one contract includes tunnelling, another contract for erecting staging, and clearing to carry piping. Those closed on the 2nd of April. The' third includes the supplying and building of piping, to carry water through. Tenders for the last contract close on the 29th of April. The length of this piping will be 1,900 and odd feet, and the diameter 15-91 inches. After this is completed there will be a distance of 82 chains of ditching and fluming to finish to Black Lead, which will cost about £600. The whole works will then be completed to the fall into Nile River. This portion of 82 chains commands all the auriferous ground as far as Nile River, and the only ground likely to pay for some years to come. If this portion is not completed soon, there will be very little revenue from sales of water after paying expenses. The old piping across Ballarat Creek has given a great deal of trouble this year. It is continually breaking away from old age, in fact everything connected with it is getting rotten and will not be much longer fit for use. The expenses for keeping this piping in repair has been one of the heaviest items of maintenance this year, as a great quantity of canvas and marline cord had to be used for making joints, also new piping had to be put in where old ones bursted. Another heavy portion of expenditure was the keeping of outside supply races in repair, and keeping a supply of sawn timber always on hand, so as to be ready to make good any break which might occur. As those races are the principal feeders to Argyle Reservoir it would not do to neglect them. By so doing the supply of water in reservoir would be diminished greatly. In the latter part of February I had a heavy -break in one of the old flumes, by it falling down with old age and rottenness. This caused a further expenditure, as a new race had to be constructed 14 chains long, to connect with new works already completed higher up the gully. This was the only way to supply the party working on Candlelight Flat with water. The main race from reservoir has cost but very little to keep it in repair this year, as any repairs which were needed were done by myself and water man (or boy), so that actual expenses were kept down as much as possible. After all the works are completed the cost of keeping race in working order will be very low for some time to come. In January of present year the County Chairman—Buller County—let a contract for sinking a trial shaft at Ballarat Creek, so as to test the formation of sandstone reef underlying the bed of the creek to see if it would be of sufficient hardness to drive a tunnel under the creek bed. at a depth of 60ft., but was not successful, as the deeper the shaft went down it got looser in the strata, which proved an underground syphon could not be attempted, although a private party (Butterworth) had been very successful with two underground syphons. Had this answered the purpose there would have been saving over iron piping by about £600. I have made out plans and the specifications for the whole of the work now called for, on section No. 12, mentioned in first part of report, for Argyle Water-race Extension to Back Lead, which will not be finished before August next, and by that time I hope to see the whole works completed, so that there may be a revenue return from it. Herewith please find statement showing the Revenue from sales of water during the year ending 31st of March, 1885 ; and also the expenditure from the Ist of April, 1884, to the 31st of March, 1885 ; also number of men employed by the race, their average earnings after deducting working expenses. I have, &c, Denis Doyle, The Under-Secretary, Gold Fields Department. Manager, Argyle Water-Race.

No. 22. The Chairman, Mount Ida Water-race Trust, to the Hon. the Minister for Public Works. Sir,— Office of Mount Ida Water-race Trust, Naseby, 16th May, 1885. I have the honour to forward the annual report of the proceedings of the Mount Ida Waterrace Trust in accordance with section 25 of " The Mount Ida Water-race Trust Act, 1878," together with the audited statement of receipts and expenditure for the twelve months ending Slst December, 1884. The income for the year ending the period above stated amounted to £1,221 14s. 10d., a decrease, compared with last year, of ,£223 lls. Id. This is attributable to the cause reported last year, viz.: The ground which the race commands in the main gully being gradually worked out. The expenditure for the same period for maintenance and repairing flood damages amounted to £1,599 4s. 7d., being a reduction compared with last year, of £277 19s. 7d. Included in the above total is the sum of £98, cost of construction of a new dam in connection with the old distributing races. The outstanding accounts for water supplied to same date amounted to £847 2s. 2d., as against £1,280 ss. 7d. for last year. The extension to Spec Gully is nearly completed. Up to 30th April, 4 miles 10 chains of main top level race had been constructed. At the one-mile peg a flume 5 chains in length, by an average height of 10ft., conveying the water across Main Gully, has been constructed at a cost of £132 16s. 6d.; and at the ¥ % peg a short tunnel and cutting of 5 chains enabled the engineer (Mr. R. H. Browne) to shorten the distance of the race, and to take advantage of a good site for a reservoir at