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No. 3. Eepobt on Lands selected as Sites for Fishino Stations in County of Sounds. Geneeal. In carrying out the work intrusted to me, of selecting land for reservation with a view to the fishing industry, it is only in the Pelorus Sound I was able to make the selections on anything like a definite plan. In Queen Charlotte Sound and Port Underwood so much of the land has passed into private hands that it is impossible to predict where the central or curing stations will be established, as this, in a great measure, must now depend on the terms persons desirous of embarking in the industry can make with1 the owners of the ground. In the Pelorus Sound, finding blocks of land well situated and in every way adapted for the central stations, and having determined on these sites, my next care was to select other and smaller blocks to serve as outposts, or places of refuge or shelter, from the violent and sudden changes of wind which characterize the climate of the district. Although generally throughout the County of Sounds the land for one chain deep above high-water mark has been reserved, where the land at the rear has been purchased, the right to use this reserve, except as a road or to merely land on, would undoubtedly be questioned. When fishing becom.es a regular industry, I am satisfied that it will be found expedient to have erected in certain situations houses or places for which those engaged in the work may make when unable to reach the central stations or their regular homes, and it was to provide for this that I determined on the outposts above mentioned. At the same time, these smaller blocks of land, being contiguous to good fisning-grounds, may become the permanent homes of a few individuals. Along the shores of Queen Charlotte Sound there are already a number of reserves where places of refuge might be erected. Ido not, therefore, think it necessary to make any special reservation of land on that score in this part of the district. In all cases, I think, it is expedient that the reserves should extend from the beach to the top of the range, in order that, under whatever control they may be placed, the officers in charge may prevent the destruction of timber on the higher portion of the hills for the preservation of the water supply. In the different portions of this report the names given have been taken partly from the Admiralty chart,* which I found a great assistance in making the selections. Where no name appears, either on maps or chart, I have taken that in common use in the district. On the district maps furnished me, which I now return, I have marked, as nearly as I could judge, the frontages of the various reserves proposed, leaving the other lines to be determined whenever a survey is made. Peloeus Sound. Eegarded as a fishing-ground the Pelorus Sound may conveniently be divided into three portions : the inland, or the portion south of a line drawn between Tewero and Puaki Points; the central, north of the aforesaid line to East Entry and Danger Points, including Beatrix Bay, Tawhitinui Beach, and Tennyson Inlet; and the seaward portion, extending from East Entry Point 'outward to the open sea. In the first or inland portion, though fish are plentiful enough for local consumption, they are not sufficiently abundant to warrant the starting of curing establishments. I have therefore selected no land for reservation in this division of tbe Sound. In the central portion, from the abundance of certain descriptions of fish, such as kahawai, rock-cod, mullet, kingfish, &c, I am satisfied that in time the work of preserving will be found profitable. I therefore selected two sites : one at Tawa Bay, near the entrance of Tennyson Inlet, where a village community might be established; and another smaller block of land on the northern side of Apuau Channel, knowing it to be an excellent place of shelter in all winds. It is in the outer or seaward portion that the fishing industry will naturally take its rise, for every description of fish found on this coast can here be had in immense quantities. The large block of level land at the head of Anakoa Bay, forming a natural centre for this portion of the district, should, I consider, be withdrawn from sale until it can be dealt with for special settlement. In connection with this central site I have selected two other sites : one at Orchard Bay, on Forsyth Island, where boats might take refuge in northerly gales; the other an unnamed bay on Kenny's Isle, which, though open to the north, is, from some local causes, safe in all weathers. Tawa Bay. —A well-timbered and well-watered valley, of considerable extent, drains into the head of this bay. The land, though stony, is good, judging by the vegetation. A level beach, of fine firm gravel, on which boats could easily run up, is exposed along the head of the bay at lowwater. Though open to the north-west winds, a landing from boats could be safely effected in the north-east corner of the bay. I would advise the reservation of the whole of the valley referred to, taking the watershed as a boundary, and continuing the line to the entrance of the bay. Apuau. —The configuration of this part of the coast and the contiguity of Maud Island make this one of the best places of shelter in the Sound. In the small nooks between the projecting rocky points the water is always still however rough it may be outside. At the head of each nook is a gravelly beach on which a landing can be effected. The land is of a terrace-like nature, sloping upwards to a steep birch-clad hill-side. Bound Maud Island and in the channel are well-known fishing-grounds. I have marked on the district map boundaries of land which I consider it advisable to reserve. Anakoa Bay. —:By comparing it with other valleys which have been surveyed in the Sound, I estimate the extent of level and sloping terrace-land at the head of this bay at about 3,000 acres. The whole is heavily timbered, the amount of what is now known as marketable timber being, however, comparatively small, tawa being the predominating tree. About one mile from the extreme head of the bay the terrace-land commences, and this I consider to be the best site for a township,

* These names have been altered to names on the district maps.