Situated in the Ure Valley 61 km from Blenheim, 'Peggioh' was purchased by the author in 1976 and farmed in partnership with another property owned by a brother. Since the termination of the partnership in 1978, 'Peggioh' has been farmed as a single, completely pastoral unit. During that time an intensive development programme has been undertaken with the help of finance from the Land Development Encouragement Loan scheme (L.D.E.L.), the Livestock Incentive Scheme (L.I.S.) and the Rural Bank. The following is a summary of the policies, potential and problems of development in this summer dry environment.