The Government Offices building at Loxton has developed moderate to severe cracking during 1965. Two drillholes were drilled to total depths of 48 and 36 feet respectively to determine the cause and nature of the failure. Each hole penetrated from 26 to 28 feet of low density sands. The sand recovered was extremely calcareous, and ranged from damp at the top to wet at depth. There was a slight seepage of water into Hole 1 between 20 and 28 feet depth, but this was not sufficient to cause water to stand in the hole. Below the near-surface sand was a band about 9 feet thick of red-brown, clay-bound sand which was moist to wet. Poorly graded Loxton Sand occurs underlying the clayey sand. Possible remedial actions include: building of reinforced concrete piers for jacking; avoidance of artificial watering near the building; and improvement of surface drainage. The 1 to 2 inch wide gap between the building and the concrete pavement should be sealed to prevent easy penetration of storm water run-off.