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in addition to the above inspections, there are over four hundred other holdings requiring inspection which the Ranger was unable to visit this year, as his time was much occupied inspecting 250 timber licenses and cutting, and about 150 applications for pastoral and other miscellaneous licenses. However, next year the four hundred holdings above referred to will be fully inspected, as arrangements have been made for Ranger Harris to devote his whole time to Crown lands, and Ranger Wesley to the timber industry. From the above table it will be seen that the position and progressed the tenants whose holdings were inspected is very satisfactory, and all appeared well satisfied holdings, the number of defaulters being very small. The past year has been a very good one for Crown tenants who are applying themselves principally to pastoral pursuits, as their holdings are mostly high and broker country, well suited for sheep and cattle raising. Good prices were obtained for sheep and wool, thus encouraging tenants to cultivate more of their bush lands, which is being done to a great extent. During the coming year I anticipate that large areas which are now coy ered with bush will be under cultivation, as settlers can now see the advantage gained by improving their lands, and as roads are being pushed on further into the back country better access is obtained for stock and produce to the markets, and enabling the opening-up of Crown lands that a few years back were inaccessible. Judging by the great demand for land at the present time it means a substantial improvement as regards settlement in this district. The approximate number of stock at the present time on the holdings inspected is 23,700 sheep, 1,400 cattle, 270 horses, and 300 pigs. There are a number of creameries throughout the district, principally on freehold lands, but many close to leasehold on which dairy cows are depastured, and from which the creameries receive large supplies of milk. Generally speaking, the Crown tenants are very well satisfied with past results, and are favourably impressed with their selections, there being very few forfeitures and surrenders. The rents have been paid promptly, and the arrears are trifling. Revenue. The total revenue collected from all sources, including endowments and royalties on coal and timber, amounted to £24,185 6s. lid. Arrears of Rent. The arrears of rent for the year amounted to only £201 12s. 9d., and as there are 1,656 Crown tenants in the district I think this may be considered a satisfactory result of the efforts made to payment of rents. Lands for Future Settlement. The following blocks of surveyed and unsurveyed lands will be placed on the market for selection almost immediately:—Surveyed : Spooner Range Block, Gordon and Wai-iti Survey Districts, 4,600 acres. Unsurveyed : The North Maruia Block, Lyell, Maruia, and Tutaki Survey Districts, 24,500 acres ; the Big Bush Block, Motupiko Survey District, 18,136 acres. A block of about 5,000 acres on the west side of the Inangahua River, near its junction with the Buller, is now under scheme survey and will be opened for selection very shortly. In addition to the above I have also to report that the District Surveyor, Reefton, will explore the Blackwater Valley, Ohika Survey District, as it is reported that the lands in the valley and its vicinity are fit for settlement. The outlet for this country will he about eighteen miles from Westport, on the main coach road. The approximate area fit for settlement is from seven to ten thousand acres. Mr. Ranger Harris has lately explored the Blackwater Valley, Tutaki Survey District. He reports an area of about 15,000 acres in this valley as fit for settlement. He speaks very favourably of this country. The valley is flat land for about a mile wide, with gently sloping hills on either side. The outlet for this country would be Murchison, via the Mangles River. Tutaki and Matiri Survey Districts (30,000 acres): Mr. Ranger Harris has also lately explored and inspected Crown lands in Blocks 11, 111, VI, VII, X, XI, Tutaki Survey District, and reports as follows : " From the junction of the Blackwater Creek with the Mangles River, and up same creek for a distance of about eight miles, with an average width of 60 chains to the foot of the hills, is very good flat agricultural land, and the hills are low and well adapted for pastoral purposes, well watered, and covered with light mixed timber, and about four miles from main coach road, Nelson to Westport. From the junction of the Buller and Mangles Rivers, up both sides of the latter, more so on the north side, the nature of the country is small flats with low hills—good pastoral lands, well watered, and covered with a fairly light mixed timber. I think that the whole of the above country should be open for selection, as it is well suited for settlement purposes." W. G. Murray, Commissioner of Crown Land:-.