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Ilingway Settlement. —A forfeiture and reselection of the same section took place, leaving the number of tenants as before—namely, eight—the area held being 2,236 acres. Nine persons live on the settlement. The value of the improvements effected is £1,737, which, is £472 under the required value. The number of stock is 2,184. Arrears, nil. The Ranger reports that, owing to the Canadian thistle having almost taken possession of the land, the settlers are not so progressive as they might be. Some of them are making good improvements in the way of buildings and fencing. He considers that in time the settlement will turn out better than expected at present, more especially if the Canadian thistle could be eradicated. Glenham Settlement. —Four new selections were made during the year ; area, 2,243 acres ; all the settlement but one section, of 269 acres, being now taken up. The number of tenants is thirty-three and that of persons residing is 161. The stock owned numbers 4,100. The total value of improvements made is £7,100, yvhich is £1,208 over the required value. The arrears owing by two lessees amount to £35 14s. 2d. The Ranger reports that the settlement is improving, and that those settlers who are liming their land are getting very good returns. The oat and turnip crops are excellent. The settlers arc more hopeful this year than formerly. The settlement only requires time and plenty of lime to make it a success. Edendale Settlement. —Five new selections of small sections in Brydone Village and Edendale Township were made during the year. Only one section of the settlement proper remains unselceted. The total number of tenants on the, settlements is 139, the area held being 19,169 acres. The number of persons residing is 508 ; number of houses, 119. The value of the improvements effected is £32,587 165., the required value being £6,209. The. stock on the settlement number 7,913, comprising 3,695 sheep, 3,386 cattle, 536 horses, and 296 pigs. Ten lessees are in arrear, to the amount of £268 lis. lOd. The Ranger reports that all the settlers are doing very well, and the crops of turnips and oats arc excellent. The, only complaints made were from some of the lessees who have no outlet for surplus water. He is of opinion that this settlement is the best in the Southland District, and has a great future before it. With regard to the complaints made to the Ranger as to lack of drainage, I may mention that it has been arranged that the available balance of the sum set apart for drainage on the settlement will be expended by the District Road Engineer on the necessary works, so that this cause of complaint will soon be removed. It is apparent from the foregoing summary of the position of the settlements under the Land for Settlements Acts in this district that, although very much progress has not been made on the smaller and generally inferior settlements, the position and prospects arc on the whole better than at any previous time. Upon the six settlements there are now 247 settlers, as against 239 last year ; the area held is 52,687 acres, an increase of 2,242 acres on the preceding year ; the number of inhabitants is 874, giving an increase- of 40 persons. ■ The total number of stock is 24,741, which shows an increase of 3,852 on last year. The results of the settlement of the lands in these estates appear to show conclusively that, where good first-class agricultural and pastoral land, well situated, is purchased, the selectors have little difficulty in making a good living off the land, they become prosperous and contented, pay their rents regularly, and make the settlement a thorough success ; but, where inferior land is purchased, the settlers who keep to their holdings have a long uphill struggle, and much loss and hardship are entailed ; the Department also suffers loss by frequent forfeitures and reopenings of sections, or by some of them remaining for long periods unselected upon permanent tenure : this leads to the conclusion that none but first-class land should be purchased for such settlements. E. H. WILMOT, Commissioner of Crown Lands.

APPENDIX lII.—DRAINAGE OPERATIONS, HAURAKI PLAINS (PIAKO). I have the honour to inform you that, in accordance with your instructions, I left Wellington in August last to make a preliminary inspection of the Piako Plains, and reported to you thereon on the 11th September last. Since sending you the above-mentioned report, I have had time and opportunity to explore the property, and have verified to a great extent the opinions I then expressed. I informed you that the principal causes of the submergement of a large area of the plains was due to the incapacity under the then-existing circumstances of the Piako and Waitakaruru Rivers to discharge the waters forced upon them. I have done nothing to the Waitakaruru River, but as soon as the dredges ordered from England arrive they will'commence improving the channel of this river. As to the Piako, this river was very much blocked by willows, snags, and logs. The logs (mostly kahikatca) are now being removed by the millers, and their removal will, I apprehend, cause a considerable scour, and this will materially increase the capacity of the channel.