Towns and Surrounding Country.

Port Chalmers (eight miles from Dunedin) situate on Otago Harbour, midway between the Heads and Dunedin, has a population of nearly 2,000 inhabitants. It is the chief port of Otago, and possesses every accommodation for Home vessels, including dry dock, 80-ton sheer-legs, steam-hammer, and other appliances, besides several private foundries, cool-storage chamber, &c. The Port. Chalmers graving dock is described in the article on page 58.

Leaving Dunedin by the northern railway, winding in and out through the hills which surround the town, and skirting the precipitous cliffs of the coast-line, the first station of importance reached is Waitati, a favourite seaside resort in Blueskin Bay; distance, seventeen miles. Fifteen miles beyond is Waikouaiti; population page 77 760; pleasantly situated on the Hawksbury lagoon, the centre of a flourishing farming country. The next place of note is Palmerston, forty-one miles from Dunedin, with 775 inhabitants. A branch-line leaves Palmerston and runs nine miles up Shag Valley to Dunback. Six miles further on the main line there is a branch to Shag Point, a coalfield, with two pits being actively worked.

Oamaru (seventy-eight miles) is the second town in Otago, having a population of 5,225. It is the centre of a large farming district, and has a good harbour, formed by a concrete breakwater, for the reception of ocean-going ships. The chief exports are wool and grain. A branch-line runs from the junction near Oamaru up the Waiareka Valley to Ngapara, seventeen miles, and Tokaraki, twenty-six miles from Oamaru, and another seven miles by road brings us to Livingstone.

Starting from Oamaru, and proceeding to Central Otago, viâ the valley of the Waitaki River, the first part of the journey is accomplished by rail across the fertile Papakaio Plains to Awamoko (ninety six miles), and thence following up the Waitaki River past Duntroon to Kurow (120 miles). At Kurow the traveller leaves the railway and follows the course of the Waitaki through pastoral country to Rugged Ridges Station (133 miles); a little beyond Rugged Ridges the road leaves the Waitaki River, and crossing the Ahuriri Pass (141 miles), strikes the Ahuriri River, which it follows up past Omarama Station (158 miles) to the junction of Longslip Creek; it then ascends this creek until Lindis Pass saddle is reached (172 miles), at a height of 3,185 feet. Here begins the descent to the Clutha Valley viâ Morven Hills Station (181 miles) and Tarras Station (200 miles). From Tarras Station the road runs through settled farming country up the Clutha River, which is crossed by means of a punt at Newcastle (219 miles), and four miles more brings the traveller to Pembroke, on the southern shore of Lake Wanaka.

From Dunedin the main trunk railway runs southward to Invercargill, a distance of 130 miles. Passing through the Caversham Borough and tunnel the traveller reaches Burnside (five miles) and Abbotsford (six miles), industrial centres, with coal-mining, tanning, iron-smelting, and other works. Farther on is Wingatui, the junction of the Otago Central Railway; and ten miles from Dunedin is Mosgiel, a rising township with 1,382 inhabitants, noted for its woollen mills. The railway-line now skirts the Taieri Plain, an alluvial flat eighteen miles long by five miles broad; the most fertile portion of Otago. A branch-line from Mosgiel junction runs to Outram (nineteen miles), on the farther side of the Taieri Plain. Passing the smaller Townships of Grey town and Henley, and Lakes Waihola and Waipori, the line strikes Milton (thirty-six miles). Milton, in the middle of the Tokomairiro Plain, is a town of 1,139 inhabitants, with flour-mill, dairy-factories, flax-mill, pottery works, and tannery. The next place of importance is Balclutha (fifty-three miles), on the banks of the Clutha River, with flax-milIs, dairy-factories, and chicory works; population about. 950. Kaitangata, situated lower down the Clutha River, and connected by a branch-line, has extensive coalfields, and a population of 1,362. Leaving Balclutha, the main line runs through the Clutha downs, passing the small centres of Waitepeka, Warepa, Kaihiku, and Waiwera, and reaches Clinton (seventy-three miles), on the Waiwera stream, a favourite resort of anglers. The next station of note beyond Clinton is Waipahi Junction (eighty-three miles), on the Waipahi River, likewise a favourite fishing-ground. Further on is Gore (ninety-nine miles), on the Mataura River, in the Southland district. Gore is a fast-rising township of over 2,000 inhabitants, with paper-mill, flour-mill, freezing-works, dairy factory, coal-mines, &c.

A branch-line from Waipahi follows up and crosses the Pomahaka River and connects Tapanui (ninety-six miles), Kelso (ninety-eight miles), and Heriot (102 miles).

The Otago Central Railway starts from Wingatui, crosses the Taieri Plain, and then winds round to the Taieri River, which it follows up to the present terminus at Hyde. In its course along the river it runs for some distance through a rocky gorge, but after crossing the Sutton Stream enters Strath-Taieri—a comparatively flat, open country. Near Hindon Station (twenty-five miles), in the Taieri Gorge, and Barewood (thirty-six miles), there are quartz-reefs being worked. In traversing the Strath-Taieri the line passes the Blair-Taieri Village Settlement (forty-four miles), Middlemarch, a rising township (forty-eight miles), and reaches Hyde (sixty-four page 78 miles), the present limit, although the formation is well-advanced as far as Hamilton's. When this section is complete the Maniototo Plain will be tapped, and the extension of the line to Clyde presents no engineering difficulties. Central Otago has a great future before it, as in the opinion of experts it is naturally adapted for producing fruit of all kinds in perfection.

Another means of access to Central Otago is by the Clutha Valley.

Two miles beyond Milton the Lawrence branch leaves Clarkesville Junction, runs up the Tokomairiro River and the gorge of Manuka Creek, and down to Waitahuna (fifty-three miles), and Lawrence (sixty miles), goldmining centres, with an aggregate population of 1,500. Gold was first discovered here in 1861, and the mines are still yielding freely. From Lawrence a coach runs to Beaumont (seventy-two miles), on the Clutha River. Crossing the Beaumont Bridge the road follows the west bank of the Clutha, passing numerous dredging-claims. At eighty-nine miles is Ettrick, and seven miles further on is Roxburgh—the Teviot—(ninetv-six miles), a town of 433 inhabitants. Recrossing the Clutha River by the Roxburgh Bridge, and proceeding up the east bank, the traveller reaches Alexandrs South (124 miles), at the junction of the Manuherikia River with the Clutha, and Clyde—the Dunstan—(130 miles), the chief town of Vincent County. The next place of importance is Cromwell (143 miles), at the junction of the Kawarau River with the Clutha. Cromwell is a small town of 539 inhabitants, and has a good bridge over the Clutha River. If the traveller wishes to pursue his journey farther he can either follow the road up the Clutha to Newcastle and Pembroke, on Lake Wanaka, or take the Kawarau Gorge road by way of the Crown Terrace to Queenstown, on Lake Wakatipu.

Queenstown, a picturesque township situated on the shores of Lake Wakatipu, has a population of 781, and is the centre of a large gold-mining district The chief feature of Queenstown is the grand mountain and lake scenery in the neighbourhood, which attracts large numbers of tourists every year. There are two ways of reaching Queenstown—the one by the Clutha Valley and Kawarau Gorge, as above described, and the other by rail to Kingston, at the foot of Lake Wakatipu, and thence by steamer, which runs to suit the trains.

The Tautuku bush, in the south of Otago, has only lately been opened up, but already a large number of settlers are making their homes there. Starting from Balclutha the Catlin's River branch-line runs southwards to Romahapa (sixty miles) on the crossing of the main road to Port Molyneux, thence to Glenomaru (sixty-four miles), and Owaka (seventy miles from Dunedin), is nearly complete. The Catlin's Waikawa main road is formed the whole way through, as are also numerous district roads, and the adjacent lands are being taken up as fast as they are thrown open.