The Lake Rotokaua sulphur deposit, near Taupo, New Zealand, is a lacustrine sedimentary ore body, 220 acres in area and from 7 ft to 96 ft thick, containing, within the area drilled to date, some 20 million long tons of ore averaging 25% elemental sulphur in unconsolidated tuffaceous diatomaceous clay, overlain by about 120 ft of pumice sand and by the shallow Lake Rotokaua. An additional amount of perhaps 4 million tons of sulphur is regarded as probable in the area remaining to be drilled. Current economic studies cover the problems of mining an unconsolidated water-saturated formation with some residual thermal activity nearby; conservation and restoration after mining in a scenic recreation area; beneficiation of the ore and extraction of high- purity sulphur, principally for fertilizer manufacture. The deposit has additional importance as a pointer to possible further discoveries in the Thermal Region.