Serpulid patch reefs of Galeolaria hystrix Morch, 1863 were found in water depths of 9-16 m in Big Glory Bay, Paterson Inlet, Stewart Island, and here we report preliminary studies of these important habitat-formers. This is the first observation of this species in subtidal patch reefs; 114 reefs were noted in a survey of 28 000 m 2 . Most reefs were 1-5 m in diameter, and up to 1.5 m high. Up to 65% of the serpulid tubes were occupied by living G. hystrix during a mid-winter diving survey; 64% of reefs observed were whole, whereas 36% were broken or dead. Radiometric dating of a basal specimen of reef carbonate showed it to be less than 50 years old. Production of high-Mg calcite, ranging from 9 to 11 wt% MgCO 3 , by G. hystrix may be as much as 11 kg CaCO 3 m -2 y -1 , but was not reflected in surrounding sediments, which were dominantly terrigenous muds. A rich reef fauna, both sessile and motile, was associated with the reefs. Further study of these unusual temperate reefs is strongly recommended.