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South of the Rangitata River the country Ims been less seriously affected by the season. On the recently established Tripp, Clandeboye Nos. 1 and '2, Meadows, and Kohika No. 2 Settlements the settlers have effected very satisfactory improvements considering the short period of their occupation, and evidently intend to make a success of their holdings. The older settlements are in a condition of almost uniform prosperity, prominent among them being the Rosewill, Chamberlain, Albury, and Punaroa Settlements, between Timaru and Burkes Pass; the Pareora No. 2 Settlement, near St. Andrews ; and the Waikakahi Settlement. The smaller settlements also provide abundant evidence of genuine success, and are affording comfortable small farms for many successful and contented settlers. ,„ .. _ T. N. Bkodiuck, Commissioner of Crown Lands.

OTAGO. During the past year no new settlement lands have been opened,. There has been considerable activity by way of transfer of holdings at monetary considerations that should be vary satisfactory to the vendors, fairly high amounts, as a rule, being given for goodwill. The settlers on all the settlements have been making good progress, notwithstanding the unusual drought, which has pressed heavily on some of them. This has more especially been the case with the North Otago settlements, many of the settlers on the new estates there being hard hit owing to the total failure of their crops. • In North Otago the wheat crop will not average more than 12 bushels to the acre, ami oats will not thresh out more than an average of 25 bushels per acre. The turnip and rape crop is a failure. The potato crop promised to Ih> fairly good, but, owing to the dry weather and a kind of wire-worm which attacked the tubers, it will not turn out as well as expected. The grass, owing to want of rain, is in many cases burnt out of the ground, and later on most of the pasture will have to be renewed. In order to give some measure of relief, the Government decided to afford facilities for railing stock out of the district at much reduced rates. A good part of what has been retained will require to be hand-fed during the winter. The drought has also had a most damaging effect on the dairy industry, many factories having to close down after carrying on during the summer on less than half the usual supply of milk. In the north of Otago, therefore, unless the drought breaks soon, and the frost is late in setting in, the prospects for the winter do not look well. In the south, however, things are not so bad, although there is a great scarcity of grass. What there is is parched, and not likely to afford much feed for winter. Up to the middle of March the turnip crop had held out well, there being not much sign of blight. The redeeming feature has been the white crops, especially on Greenfield, where there have been heavy crops of wheat, yielding as high as .VI bushels per acre. The settlers there go in hugely for the solid-straw variety, owing to the fact that it yields well, and stands the wind. The oat crops have also been very good. There is not much in the way of dairying done there, the settlers going in more for cropping and growing wool and mutton. The same remarks, to a large extent, apply to the other settlements— Barnego, Taumata, and Pomahaka. Generally speaking, the southern settlers are doing well, and are satisfied with their prospects. In spite of all drawbacks, the conditions of settlement all over Otago are well carried out. The required amount of improvements is now £138,792 11s. 10d., and the amount actually made £279,182 2s. Id., showing that substantial progress lias been made. E. H. Wilmot, Commissioner of Crown Lands.

SOUTHLAND. Conditions of Established Settlements. Taking the settlements in this district as a whole, it may be said that steady and satisfactory progress has been made during the year. The only settlement which might be singled out for special mention is Ermedale, which was offered for selection in March, 1910. Although only twelve months established, it is pleasing to note that wonderful progress has been made in the way of improvements. Eleven dwellings have been erected, and there are thirty-seven souls on the settlement. The settlers contemplate erecting a dairy factory, to be in readiness for next season. Through the evils of the unfortunate drought winch has been generally experienced in Southland the operations of both dairying and grazing on all settlements have not been so successful as in previous years. Notwithstanding the drought, both white and root crops, taken on the whole, have done remarkably well. An area of 4,073 acres has been laid down in new grass during the year, and this will greatly increase the stock-carrying capacity. There are 236 houses, 1,083 soul's, 8,777 cattle, .'!6,2(>* sheep, 1,208 horses, and 1,559 pigs on the settlements. The total amount of improvements actually effected by the lessees is .£83.950. Future Phospects. The settlers are well satisfied with their holdings, and, on the whole, have had a good year, and appear to be confident of their future success. 11 H. M. Skeet, Commissioner of Crown Lands.