WATER RACE, ' This important work, the mainstay of our goldfield, is, I am pleased to state, in an excellent state of efficiency, every thing connected with its working being in perfect order. The Council is to be congratulated on the possession of so fine an endowment, and very little fault can be found with its administrate n. In this connection I may remind Councillors of the marked infrequency of stoppages through accidents, only a few trifling ones having occurred during, the past four or five years, This immunity from loss can be attributed to the additional by washes erected at intervals on the line, enabling the contractor to exercise perfect control over every section of the race and preventing overflows. During the past year a compete survey of the race has been made, costing £185 4s, and £12 12s for tracings for the Public Works Department. When a recent Government survey was made for the Kauaeranga Valley Road many small reserves on the river bends were made for the water race, and 143 acres round the care-taker's house near the head works, these concessions being allowed in compliance with the Council's request., The complicated proceedings in connec tion with the completion of our tit'e, under "The Public Works / ct, 1894," have now reached their final state and public notification given to a'l persons interested to send in their claims for compensation for land taken under the Governor's proclamation of the 28th August last, llic year's, expenditure was as follows: —mc uding our domrs(ic supply, maintenances, £83<1 13s 3d; Moanatairi tramway, £398 8s Sd ; gold field's tracks, £180 9s ; interest on water race loan, £165 ; on account of surveys, £142 6s ; v "Thames Drainage Board, £'(30; and miscellaneous items, £53 7s 31. The arrears on September 30th—£892 5s 2d— are large, but the management of thfse water-race accounts is by nomeansan easy matter, for stopping a battery means clos ing down the mine or mines and discharg ing the miners, and this cannot be done without incurring grave responsibility. I have little donbt the approaching re vival of gold mining will much increase onr revenue from this sourc?, and enable our debtors to pay their accounts. 