When purchased in 1946 Tara Hills was in a rundown state and typical of large areas of inland Otago depleted by overgrazing. Since then development by oversowing, topdressing, fencing, irrigation, together with rabbit control have given large increases in production. The stock units have increased from 1240 in 1946 to 11,066 in 1966 and wool production has increased from 1.3 kg/ha to 13.4 kg/ha. Since 1975 the gross income per hectare has risen from $21/ha to peak at $131/ha in 1984. These levels of production provide a sharp contrast to the much lower production of the average South Island high country run. Keywords: wool, income.