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improvements effected is £4,825, against £883 12s. Bd. required. This is now a very prosperous and well - established settlement, the holdings being used for gardening and fruit-growing. The drainage of the block continues unsatisfactory, and nothing is done to remedy it, owing to want of combination amongst the settlers and the inaction of the local body. Braco Settlement (also near Christchurch). —Established November, 1895. Fourteen holders, of whom thirteen, with a population of fifty-one souls, resile on their holdings. The value of improvements effected is £1,847, against £461 18s. Bd. required. One lessee is non-resident and neglectful of the holding, but all the others reside and comply satisfactorily, are keeping their properties in good order, and using the small holdings to advantage for market-gardening, &c. Kereta Settlement (near Timaru). —Established December, 1895. Four holders, three of whom reside, while one resides on a small property close by. The number of souls is twenty-four. The value of improvements is £684 17s. 6d., against £193 13s. 3d. required. This settlement is low-lying and subject to floods, aDfl the holdings are small, but the land is good; satisfactory improvements have been effected, and the sections are in good order. Epworth Settlement (near Temuka). —Established November, 1895. Two holders, husband and wife, who reside on one of the lots. The improvements are good, and the holdings kept in satisfactory condition. The number of souls is six, and the value of improvements effected £158 165., against £13 lis. 2d. required. Ashley Gorge Settlement (near East Oxford). —Established December, 1895. There are ten lease-in-perpetuity holders; and two sections form the homestead-sites for adjacent small grazingruns, comprising principally Crown land. Including these two homestead-sites, the number of souls on the settlement is fifty-four; and the value of improvements £4,083, against £1,859 Is. 6d. required. All the lessees are residing and complying. Very little cropping is done, but most of the lessees do fairly well by supplying milk to the creamery at East Oxford. The holders of the 40-acre sections have to obtain outside employment. Orakipaoa Settlement (near Temuka). —Established June, 1896. Twenty-seven holders, twenty of whom, with a population of ninety-four souls, reside on their holdings. The value of improvements effected is £2,000 195., against £1,468 13s. 9d. required. The other seven holders are exempt under special regulation, by reason of residence in the neighbouring Arowhenua Village Settlement. On these holdings not much improvements are made. The others are complying satisfactorily. The settlement has recovered considerably from the effects of the flood in March, 1902, and most of the damaged improvements have been repaired. The settlement as a whole is successful, and is providing good homes, and the settlers can get employment in the district. Highbank Settlement (near Methven). —Established June, 1896. Seventy-five holders, of whom fifty-seven reside on their own holdings, and three others with relatives on adjoining holdings. The number of souls is 261; and the value of improvements £17,788 17s. 6d., against £13,975 6s. 6d. required. The settlement is reported as looking exceedingly well, the crops very good, and feed abundant. The plantations made by the lessees are making good growth, and in a few years will give excellent shelter from the north-west winds. The sixth year's report disclosed a few cases of deficiency in value of improvements, but in most cases they are well up to requirements. The small holdings continue to be the least satisfactory part of the settlement. Waiapi and Rakitairi Settlements (near Temuka). —Established March, 1897. On Waiapi there are fifteen holders, all of whom are in residence, with a population of sixty-eight souls; and a value of improvements effected of £3,088 13s. Id., against £464 Bs. required. On Rakitairi there are twenty-two holders, nineteen of whom reside, while two live on other small properties adjoining. The number of souls is seventy-seven, and the value of improvements effected £4,247 Is. 6d., against £1,048 14s. Bd. required. Both settlements are reported as making good progress, with the exception of the 10-acre lots in Waiapi, where the lessees have to be much away at work, and the holdings are consequently at a standstill. Crops have been good, and feed plentiful, and the holdings are generally in very good order. OtaraJcaro Settlement (near Christchurch). —Established March, 1897. Seven holders, all of whom are residing and complying satisfactorily. The number of souls is twenty-eight; and the value of improvements effected £1,325, against £231 16s. 4d. required. Most of the lessees are doing good work on the laud, and getting it into clean and profitable condition. Wharenui Hamlet (at Riccarton, close to Christchurch). — Established March, 1897. Twenty-six holders, all of whom have built and are residing, with a population of ninety-four souls. The value of improvements effected is £4,274, against £810 Is. required. All the settlers are residing and complying very satisfactorily. The holdings are generally well worked and in good order, and used for small farming and gardening. Albury Settlement (at Albury, South Canterbury).—Established April, 1897. Seventy-nine holders, of whom sixty-two reside on their own holdings, and eight others on relatives' holdings in the settlement, while in one case the lessee is away in the North Island, but his family reside on the section. The number of souls is 301; and the value of improvements £19,649 19s. 6d., against £3,750 2s. Bd. required. The settlement has made considerable progress during the year. Many of the tenants are adding to the value of their improvements, and are doing well. Crops have been good ; and the new creamery on the settlement will be a great help, as most of the tenants are preparing to be suppliers. The number of souls has decreased, owing to two large families having left and other young people going away to work. Marawiti Settlement (near Rakaia).—Established May, 1897. Twelve holders. Number of souls, sixty-seven. Value of improvements, £3,751 9s. 6d., against £3,068 10s. 7d. required. Two single men on the small holdings do not comply very satisfactorily, but with these exceptions the holders are complying satisfactorily, and have improvements in excess of the value required for the sixth year. The crops have been very good, and the holdings are, with the two exceptions