The system of tenure by occupation began about 1825, and was the origin of the squatting system; the production of fine merino wool gave a great impetus to the occupation of the waste lands. The licenses were annual, the rate of charge rested with the Governor, and they were renewable and transferable. But much dissatisfaction arose with the administration by the Crown Lands Commissioners who had the disposal of all disputes connected with the new system. Hence an agitation was set up for a redress of grievances, and this led to the passing of the 9th and 10th Victoria c. 104--28th August, 1846. In this act power was granted to the Crown to lease for any term of years not exceeding fourteen, to any person, any waste lands, etc., or license to occupy; such lease or license to be subject to the regulations thereafter mentioned. On the 9th of March, 1847, the celebrated orders in Council, framed under the authority of this act, were issued. The lands in the Colony of New South Wales were divided into three classes, "settled," "intermediate," and "unsettled." As respects Queensland, the settled districts were confined to very limited areas within ten miles of the town of Ipswich, and within three miles of any part of the sea coast. All the rest of the territory now comprised in the boundaries of the State was left in the unsettled districts; but power was given to the Governor to proclaim any portion as within the intermediate districts when necessary. The lease gave the right to purchase part of the land within the lease to the lessee and to him only; other acts dealing with the sale of land had been passed, and land had been alienated under them; but the leases and regulations under the orders in Council forbade the sale of any waste land to anyone except the lessee. When a run was forfeited, tenders might be given, stating the term of years for which the tenderer was willing to take it, the rent he would give in addition to the minimum fixed by the act, and the amount of premium he would pay. In the event of competition, the run was to be knocked down to the highest bidder. Where new runs were tendered for, the tenderer was to set forth in his tender a clear description of the run and its boundaries, and also whether he was willing to give any premium beyond the rent. The rent was to be proportioned to the number of sheep or equivalent number of cattle which the run was estimated to be capable of carrying according to a scale to be established by the Governor; but no run was to be capable of carrying less than 4,000 sheep, or to be let for less than £10 per annum, to which £2 10s. was added for every additional 1,000 sheep. The estimated number of sheep or cattle was decided by a valuator named by the intended lessee and approved by the Commissioner of Crown Lands, who, with an umpire chosen by the two, acted as a small court of arbitration. The scheme was fitted in its simplicity to encourage exploration on the largest possible scale.