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No inspection is as yet due on the Mataroa Village Settlement, but we bave no doubt the settlement will be a success, as employment will be plentiful on the railway and, when that is finished, from other settlers with larger areas in the district. The Mangaweka, Rakau-toru, and Makohine Settlements are now well established, and comfortable homes are to be seen in each. Slow progress has been made in the Mangamahu Village Settlement, although a traffic bridge has now been built across the Wangaehu River. There are still several settlers who do not reside, and whose sections, we fear, will have to be forfeited before long. The areas of sections here are rather small, and should be allowed to be increased wherever possible. The Ngamatea Village Settlement is also making but slow progress, and two sections have been forfeited during the year. The areas are too small, employment is scarce, and there is no market for produce, and these are no doubt the main reasons for the non-success of this settlement. No inspection is due on the Mowhanau Village Settlement, but the settlers are busy fencing their sections. The formation of a few chains of a road is much needed here. We feel sttre that this settlement will be a success, as the land and position are good and the areas fairly large. In the Rewa, Hawaenga, Pakihikura, and Karewarewa Settlements the settlers go in chiefly for dairying, but as the sections are rather small they have to look for some outside work to keep them going. In Marshall and West Waitapu Settlements the settlers have to rely almost entirely on outside employment for a living, using the sections as homes. They are too small and too far from a market to make a living off, still they seem to be doing fairly well. The Oraukura Settlement, situated on the Main Trunk Railway line, to the north of Taihape, is at present very successful, all the sections (except one lately forfeited) being highly improved. The sections are chiefly used for grain-growing, for which the country is well suited. Considering the country and high altitude the sections are on the small side, with the result that though highly improved and fully used the settlers have to depend on some outside work in the winter, which at present can be easily obtained on the co-operative works. Horowhenua and Levin, old-established settlements, continue to prosper, and this is no doubt due to their splendid position. Most of the sections are held by people in business and working about Levin, although on a few of the larger sections good livings are made by dairying and market-gardening. Korokoro Settlement, which is situated on the hills near Petone, contains an area of about 65 acres, divided into twenty-two sections of an average size of about 3 acres. Nineteen of the sections are now occupied, and eighteen settlers are residing, the total population being sixty-five souls, and the value of improvements £2,141. The sections are occupied by artisans and labourers working in Petone and Wellington, who have now succeeded in making comfortable homes, and are well satisfied with their holdings. Horowhenua East Village Settlement. —No inspections are yet due on this settlement, and we have not made any special inspection, but from casual observation can see that all the settlers are improving their holdings, and, as the sections are of a fair size and situated in a good locality, there is little doubt of the future success of this settlement. Land for Settlements. Epuni Hamlet. —This settlement, which was thrown open for selection on the 25th June, 1901, contains an area of about 94 acres, subdivided into forty-three sections, varying in size from ■J- an acre to 4-J- acres. It is situated on the eastern boundary of the Lower Hutt Borough, and is about two miles and a half distant from the Lower Hutt Railway-station. Three sections were forfeited during the year, but one was reselected, and there are now forty-one sections occupied. Thirty-three settlers have built houses and are residing, the total population at present being 116. Improvements to the value of £4,058 have been effected by the settlers. The stock comprises 6 head of cattle, 10 sheep, 12 pigs, and 17 horses. The settlement was intended for workmen's homes, and there is no doubt that for this purpose it has been highly successful. The settlers, although mostly working in towns, have all the advantages of a country life, many of them on the larger sections keeping a cow and a horse, and they all have good gardens. The majority simply use their sections as homes, but a few go in for market-gardening and poultry-farming and make a living from them. All classes of artisans are represented in the settlement—builders, butchers, carpenters, bootmaker, and painter, &c, with a few labourers. There is a general appearance of prosperity throughout, and the settlers are well satisfied with their holdings and conditions generally. Maungaraki Settlement. —This settlement is situated on the hills to the north of Petone and the Korokoro Village Settlement, and contains an area of about 267 acres, subdivided into twenty sections, varying in size from 3 acres to 39 acres. It was intended to provide labourers and fruitgrowers with small holdings, and was thrown open for selection on the 20th December, 1901, but only two sections were selected. Since then, as it became known, the sections have been eagerly sought after, and they are now all occupied. Nine houses have been erected, and eight settlers are residing, the total population being twenty-eight. Improvements to the value of £770 have been effected by the settlers, which is very satisfactory considering that most of them have only held their sections for eight months. We feel sure of the success of the settlement, and expect great improvements to be effected during the coming year. The roads are now all formed for dray traffic, but not yet metalled. Paparangi Settlement, which contains an area of 320 acres, subdivided into 39 sections, varying in size from 1 acre to 55 acres, is situated on the northern boundary of the Johnsonville Town District, fronting on to the Porirua Road and the Manawatu Railway-line. It was thrown open for selection on the 28th February, 1898, and is now permanently settled, all the sections

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