Outdoor recreational activities constitute a major use of the South Island mountain lands. The commercial recreational industry has a key role in servicing the needs of both overseas and New Zealand recreationists. The industry has experienced rapid growth in the past and has the potential for further growth. At present the administrative framework within which the industry operates is in some aspects a source of dissatisfaction to both the industry and administrators alike. This study principally identifies issues of controversy stemming from current administrative policy and practice. The development of the study requires a comprehensive review of existing commercial operations within the industry, something that has not previously been undertaken. The study also has involved the setting down of the major features of existing policy and administrative practice. This has been undertaken at two levels. Part One of the study identifies the principal administrative issues facing the industry. An overview is presented of both services provided by, and public administration of, commercial recreational enterprises in the South Island mountain lands. From the overview the industry emerges as already extremely diverse in character and expanding in overall scale and complexity. Public sector administration of the industry appears as exceedingly generalized, piecemeal and, in many regards, failing to keep abreast of the industry's development. In Part Two issues of possible controversy raised by the overview are subject to detailed examination in the context of a case study. They are assessed by means of detailed personal interviews with people directly involved in either administering or operating commercial recreational enterprises within the Upper Waitaki Basin. Interview results indicate that five administrative issues in particular stand out both as having policy implications and requiring further administrative attention. The issues are: - the level of co-ordination and representation of all bodies involved in the industry; - the extent of administrative involvement in regulating particular aspects of the industry; - the establishment of length of licence tenure: - the setting of licence fees; and, - the consideration of respective rights of commercial and private recreationists, particularly in regard to public facility use. The study concludes by identifying guidelines against which both existing and developing administrative policy might be reviewed.