THE OTAGO PENEPLAIN is much dissected by rivers, and it is in the valleys of these rivers, and in the beds of old lakes which they have drained, that the best agricultural land occurs. Oats is the main crop cultivated, and about one-half of the New Zealand crop is raised in this region, which also comes next to, though a long way behind, the Canterbury Plains in the production of wheat. Pastoral farming is, however, a much more important pursuit at the present time, and in South Island the Otago peneplain ranks next to the Canterbury Plains in the size of its flocks. Sheep are fed upon the mountain pastures in summer, while in winter they are driven down to the lower slopes of the hills, sufficient fodder being grown in the flat valley bottoms to maintain them in seasons of exceptional severity. A number of freezing establishments have been set up here and in the Canterbury Plains, and both wool and mutton are exported. Dairying is of growing importance in the lowland areas.
The chief minerals of the region are gold and coal. Tht former occurs mainly in the debris of the older rock, and is obtained either by sluicing or dredging ; while the latter, which generally consists of brown coal and lignite, is found in the Cretaceous and Tertiary districts in the extreme south. Other industries include the manufacture of woollen goods on a fairly large scale, the preparation of New Zealand flax (Phormium tenax), and saw-milling.
Dunedin is the principal town, and is situated upon Otago Harbour. Ocean-going steamers can reach its wharves, but the larger vessels are berthed at Port Chalmers. Invercargill is the chief town of the southerly districts along Foveaux Strait, and is situated on New River Harbour. The Bluff, the port of Invercargill for vessels too large to make their way up the estuary, is the most southerly in New Zealand.