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steadily falling until by the middle of March there was only a head and a half in the race. Four new elevating claims started to work in the spring, making now eight elevating claims supplied with water from the Mount Ida Water-race. McConnochie and Kennedy having abandoned their claim at Johnstone's Creek, the place is now deserted. A portion of the siphon crossing Wet Gully is leaking so badly from corrosion that it will have to be replaced. As it is covered to a depth of 8 ft. by tailings I cannot say how much, but do not think there can be more than 30 ft. This can be done by the maintenance-men during winter, when the water is off. The race has been kept in a good state of repair during the year by the maintenance-men. JBlackstone Hill Watee-eacb. The total sales of water from this race amounted to £126 16s. Id., and the total cash received was £126 16s. Id. The total water supplied amounted to £126 16s. Id. The total cost of maintenance and repairs was £30 10s. In May I had to give the race a partial side-trimming, as the side-growth was so heavy that frost would stop the water from getting through. Eepairs had to be made on the tunnel crossing the main road in Johnstone's tail-race, as the rock kept crumbling away. In February, the water-supply being so low, I took the opportunity of having, the race cleaned out; it is now in good working-order and will require very little being done to it for some time to come. Since December the water-supply has been very low, not enough to keep the two first rights supplied. The average number of miners supplied with water from this race during the year was 875, the same as last year; and the approximate quantity of gold obtained was 160 oz., valued at £616. I have, &c, . The Under-Secretary for Mines, Wellington. E. Mueray, Manager.

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