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Up-river Diversion. —No. 9 : This was satisfactorily constructed by drag-line through the latter part of the year. The finished job has a top width of 110 ft., with batters down to a grade of 13-00 ft. The spoil excavated was 40,297 cubic yards, at a total cost of £1,338 ss. 2d., being at the rate of Bd. per cubic yard. No. 8 : Hand draining has been carried out on this diversion in order to consolidate the country for drag-line work through the coming year. No. 10 : Active machine excavation was commenced early in September on this diversion. After one month's work, the batter collapsed badly owing to a thick seam of peat being experienced, and made further work with the drag-line impossible for the time being. Before abandonment 10,535 cubic yards had been moved, at a total cost of £440 18s., or at a rate of lOd. per cubic yard. To facilitate early construction of the diversion by No. 26 dipper —to be assisted later by the drag-line— hand draining for consolidation purposes has been carried out at the site. No. 13 : Active construction of this diversion has been in hand since late in December, and to date 24,200 cubic yards have been moved, at a total cost of £882 18s. 4d., making the rate 8-Bd. per cubic yard. This diversion is being made of the same general dimensions as the completed No. 9. Mangahahuru Stream Diversion. —The construction of this diversion from 2 m. 25 ch. to 3 m. 47 ch., at which point the previously dug Ngararatunua Canal is reached, has been satisfactorily completed. Through the lower 57 chains this cut is enlarged to 60 ft. by 45 ft. by 13 ft., and the dipper easily coped with the increased size by using a small punt for the support of one spud. On this work 125,822 cubic yards was excavated, at a total cost of £2,952 Bs. 10d., or at the rate of 5-65 d. per cubic yard. Mangawhero Stream Improvement. —Through the later part of last year a new diversion was made up to the Im. 41 ch. mark, and joins with the Mangahahuru work at 2m. 12 ch. Through the earlier part of this year the drag-line carried out the work of short diversions of 30 ft. by 10 ft. by 10 ft., and general stream-improvement up to the om. 0 ch. mark in the Hikurangi Township. The yardage moved was 31,850 cubic yards, at a total cost of £957 16s. lid., making the rate 7-25 d. per cubic yard. Okarika Diversion. —Before the commencement of the winter floods this diversion work was extended a few chains above the Otakairangi Road (0 m. 75 ch.), the spoil moved being 6,000 cubic yards, at a total cost of £299 45., or at the rate of Is. per cubic yard. Handwork. Okarika Valley Drainage. —Early in the year a contract for the construction of the hand drain (averaging 8 ft. by 5 ft. by 5 ft.) was completed from the 3m. 0 ch. to the 3m. 50 ch. mark. During the latter part of this year the drain from 1 m. 0 ch. to 1 m. 60 ch. was enlarged to conform to the general dimensions of 13 ft. by 10 ft. by 6 ft., and is now practically down to the underlying clay. Work is in hand for an outfall drain generally, 12 ft. by 7 ft. by 5 ft. 6 in., from 0 m. 50 ch. of the Okarika diversion line, through the low-lying clay country of Sections 7, 12, and 11. Some 37 chains of this was completed at end of period under review. Outlet through Sections 10, 9, and 5, Block XV, Hukerenui Survey District. —Work is in hand for an outfall drain generally, 13 ft. by 8 ft. by 5 ft. 6 in., from peg 0 m. 20 ch. on the No. 10 diversion line through the low-lying clay country of Sections 10, 9, and 5, Block XV, Hukerenui Survey District. Some 32 chains has been completed to date. Riponui Outlet. —Work has been completed for an outfall drain generally, 9 ft. by 6 ft. by 5 ft., through Sections 4, 21, and 22, Block XI, Hukerenui Survey District. This is new work, and of a total length of 1 mile 62 chains. In order to give the best results from this work the creek through Sections 14 and 13, at the lower end, is at present being improved over its length of 50 chains. Otonga Outlet. —By the middle of the year a contract for the construction of the main outfall drain from om. 40 ch. to 2m. 40 ch. was completed. The roadside-drain from om. 0 ch. to om. 40 ch. has since been regraded and enlarged, and advantage taken of the derived fall up to the 1 m. 30 ch. mark. From the latter mark up to 2 m. 40 ch. general widening and improvement has been carried out, and from 2 m. 40 ch. to 3 m. 27 ch. new work has been completed, bringing the outlet up to the main road. The construction of the branch drain from Im. 30 ch. to 2m. 40 ch. (on the south-east boundary of Section 94) is well in hand, the 2 m. 15 ch. mark having been reached to date. Bridges. Mangahahuru Diversion. —An access bridge, with rolled-steel joists on concrete piles and headstocks with a span of 48 ft., has been erected to serve Mr. Mcßeth's severance in Section M. 79. Reconstruction of the road-bridge at 2 m. 22 ch. has been carried out in conjunction with the Whangarei County Council on a pound-for-pound basis. Mangawhero Diversion. —An access bridge, 40 ft. span, with rolled-steel joists on concrete piles (cast in position) and headstocks, has been erected to serve Mr. Hales's severance in Section W. 78. Okarika Diversion. —At the Otakairangi Road crossing (0 m. 75 ch.) a road-bridge of three timber spans has been constructed with an easily removable central span to facilitate passage of dredges. Summary of Work performed. —The following is a schedule of some of the work carried out during the past year : Stream-cleaning, 70 chains ; drains widened and deepened, 3 miles 60 chains ; drains constructed, 8 miles 00 chains ; stop-banks constructed, 20 chains ; dredge cuts constructed, 3 miles 9 chains ; dredge cuts cleaned, 2 miles 40 chains ; levels taken, 34 miles 70 chains ; traverses run, 38 miles 50 chains ; pile bridges erected, 213 lineal feet; spoil excavated by dredges, 309,392 cubic yards ; rock excavated, 29,688 cubic yards.