Copy of a letter received by John Macarthur from Henry Waterhouse, 12 March 1804 (Series 23.30) - No. 0003

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totally divested of Underwood interspersd with Plains, with rich luxuriant Grass, but for want of feeding off, Rank except where recently burnt; this is the part where the Cattle that have strayd have constantly fed, of course their own selection.   I must observe it appears some of the Meadows bordering on the Banks of the Nepean River are evidently at times overflowd from the River, but it is not very common & cannot be done without sufficient time to drive any stock away if common attention is paid.  The extent of this Ground I mention so very fine can be easily ascertaind from the Chart attachd to the last account (or Hunters) of New South Wales. The Blue Mountains extend from the Southward of Botany Bay considerably to the Northward of Port Stephens.  I have been upon the top of one of them (Mount Hunter) it is Rockey but clothd with verdure fully fit for feeding of Sheep & I think adapted for it.  The Mountains run as far back as the eye can see, all apparently equally good pasturage, with some stands of water - see the accounts given.  The extent of Pasturage for Sheep in this part of the Country, is too great for one to form any idea of - of the possibility I have no doubt.  The encouragement necessary together with the Allotments of Land, I am no judge, but of the practicability I have not a doubt. 

My dear Sir here you have the ideas of a Sailor, nothing but a wish to serve so important a business as you have undertaken, could have inducd me to committ myself on a subject of which I profess my ignorance - my whole life having been employd at Sea.  But You ask me how my own Stock were managd, It was a small one, short of one hundred, all the Spanish breed & their Offspring.  I trusted implicitly to the Shepherd I employd ( whom