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Gregory brothers, and the first lot was sold in June of that year. Other parts were surveyed in subsequent years. The first house was erected in May, 1850. It was composed of "wattle and daub," and was inhabited by Lieutenant Elliot.

Messrs. Burges and Drummond drove sheep and cattle to their new pastures in 1850, and other settlers followed their example. In 1850 there were twenty residents in the Champion Bay district; in 1851 there were 68 horses, 1,140 cattle, and 5,860 sheep there, and in 1852 there were 12,859 sheep. It was proved that Captain Grey was right in his report, and that the country in from Champion Bay was well suited for pasturing sheep; hence the rapid multiplication of flocks. For a time no difficulty was experienced with the natives, but in 1851 they caused serious apprehension to arise. They were known to have speared isolated sheep, and in January, Messrs. Burges and Drummond surprised a large body of natives in the act of killing a cow. Mr. Burges, who was in advance, was assailed with spears and boomerangs (kileys). One boomerang struck him on the head and rendered him insensible for some time. The natives drove off and killed on this occasion 33 cattle, rushing them madly down steep hills until the animals toppled over and broke their necks. Other disturbances took place about the same time. Mr. Drummond, jun., had a very narrow escape. While near his hut several natives rushed towards him hurling spears. It was only by remarkable adroitness that he evaded them.

Mr. Austin, who had been attached to the Australind survey staff, had for some years been connected with the Government Survey Department, and was commissioned to conduct the survey work at Champion Bay. With Lieutenant Elliot he made numerous excursions into surrounding country, and gathered considerable information for the Government.

Much correspondence took place between Governor Fitzgerald and Earl Grey concerning the expenses of the Government in assisting the opening up of the Champion Bay country. Under the annual Parliamentary vote in aid of the Western Australian administration, the Secretary for the Colonies could refuse sanction to any expense which he did not consider necessary. He did not believe in these expeditions; would sanction no expense incidental to them, and declared that the occupation of land should be checked rather than extended. Governor Fitzgerald wanted to appoint a sub-protector of natives at Champion Bay; Earl Grey refused his sanction. Mr. Burges was appointed Resident Magistrate of the district in 1852. Among the inhabitants were ticket-of-leave men.

It was natural, for a few years after the establishment of the convict system, that little energy should be displayed in exploration. The authorities were so busy in public works and in meeting the demands of a phenomenal amount of public business, and settlers were so engrossed on the lands they already possessed, that parties were not equipped. Mr. Austin and Mr. Gregory made several short excursions, and Lieutenant Helpman sailed up the north-west coast in the Champion on different occasions to carry provisions to the military at Champion Bay and to search for guano.

The first of these voyages was made in 1850, when the Lieutenant proceeded to Sharks Bay, examined various islands, and landed in several places on the coast. Beyond the discovery of guano islands he viewed no country of much value or interest. In February, 1851, he went north again, his ultimate goal being Exmouth Gulf. He had several objects in view, such as to search for guano islands, to see if any rivers ran into the gulf, and to exploit the waters for pearl shell. He was prevented from searching carefully for rivers, and found no guano deposits or pearl shell. When near the North-West Cape, on the home voyage, on 29th March, flood tides and light winds carried the Champion close to a detached reef before her commander was aware of its proximity. Fortunately the schooner stayed, for, by the time she came around, her stern was within the roll of breakers. The quiet maintained and the quickness of the sailors in executing orders saved the vessel. Had she struck, all the the men would probably have lost their lives. The next anchorage was near the mouth of the Gascoyne River, and Mr. Austin, who was on board, and Lieutenant Helpman, sought to make an extensive examination of its banks. They were unable to proceed far owing to droughts, which left the country parched. A few patches of good soil were observed. Another voyage was made to Sharks Bay in 1851 to provision the military there and to scan the various islands. Mr. Austin was again on board. On this occasion he found pearl shell in Sharks Bay. Several new islands were discovered during these voyages, and names were awarded them generally according to the day on which they were examined, such as Saturday Island, Monday Island, &c.

The subject of land laws continued to harass the minds of Western Australians. Advocates for the reduction of the minimum sales price of Crown lands received a rude shock from Earl Grey. The land laws were somewhat similar in each Australian colony, and, with incidental differences, similar agitations were carried on. In a despatch dated 11th August, 1848, the Secretary for the Colonies informs colonists that "the very same arguments which are now brought forward against the establishment of the minimum price of £1 per acre in 1841 was urged with no less confidence against the establishment of a minimum price of 5s. an acre as a substitute for free grants in 1831, and the subsequent advance of that price to 12s. per acre in 1839. Each of these changes has been regarded with equal apprehension, yet, as I have observed, it is with the adoption of that policy, which has equally dictated each successive advance in the price of land, that the great progress of the colony may be said to have commenced." That the last clause of Earl Grey's despatch is not correct is easily proved in Western Australia, where no distinct progress of a lasting character had yet been made.

In 1848, Mr. R. W. Nash wrote what was termed an admirable exposé of the fallacy of selling Crown lands at a high rate, but it had no other effect than to supply newspapers with a subject for eulogistic critiques. The advantage of squatting had not been lost sight of, and was the cause of many despatches from the Secretary for the Colonies, public meetings, political resolutions, and the formation of committees in the colonies themselves. Governor Hutt carried a proposal in the Western Australian Council some years earlier, by which it was intended to allow the purchasers of sections of 320 acres to have a right of commonage over adjoining Crown lands. Local people were well pleased, but the Secretary for the Colonies refused his assent.

In September, 1847, regulations for the leasing of Crown lands were issued. These provided that only a given number of sheep should be run on a given area of land. The licenses were for one year only. First is given the number of sheep required, then the size of lease, then the rental:-