This study examines the economics of land development undertaken by the State on the partially developed Hindon Block, Otago. The study includes both historic and projected costs and returns of development and is based on the experience of the Department of Land and Survey up to the beginning of 1966. Recent development trends may well have changed from those projected in the study and in view of the devaluation of the New Zealand dollar in November 1967, the results presented will need to be applied with caution. This publication is, however, limited to an economic evaluation of the costs and returns of land development to the Department of Lands and Survey on the Hindon Block and does not examine the wider implications of land development on regional development.