Any number of persons-not less than 25-being not less than 18 years of age, may form an association to take up not less than 1,000 nor more than 11,000 acres of Crown land, to be subdivided into areas not exceeding 150 acres, provided that the total number of persons to be located in a block shall not be less than one for every 100 acres of its total area. Sites for a township and necessary reserves will be laid off within each block. Two shillings and sixpence an acre is to be paid by each association towards the cost of survey [unclear: an] roading, if undertaken by the Government, payment to be made in four instalments of 7½d. each; or any association may employ its own authorized surveyor.

The price of the land is to be as arranged, being in any case not less than £1 an acre. One-tenth of the total price is to be paid by each association before allotting the sections in a block. This payment is in satisfaction of two first half-yearly instalments, after which payments are to be made, every six months in advance at the rate of one- twentieth of the price of the land. One-third of the payments are from time to time I returned for paid to the local body of the district, to be expended on roads in the block.

Residence, either personally or by a "registered substitute," is required for six years, but residence on bush land need not commence until within two years from the date of the allotment of sections.

"Substantial improvements" are required to be executed by each settler to the extent required by deferred payment settlers, as described above. Each association may make its own rules, which must be approved by the Minister of Lands.