  We revisit the $\theta$ dependence in $CP^{N-1}$ model with large $N$. We
study the consequences of a recently discovered new ingredient of the instanton
vacuum, i.e. the massless chiral edge excitations. Contrary to the previous
believes, our results demonstrate that the large $N$ expansion displays all the
fundamental features of the quantum Hall effect. This includes the {\em robust}
quantization of the Hall conductance, as well as the appearance of massless
bulk excitations at $\theta = \pi$. We conclude that the quantum Hall effect is
a generic feature of the instanton vacuum, i.e. for any number of field
components and not just for the theory in the replica limit alone.
