  We report on the status of the construction of an array of four 10 m
atmospheric Cherenkov telescopes for gamma-ray astronomy, near Woomera, in
South Australia -- the CANGAROO-III project. The first telescope of this array
is the upgraded version of the CANGAROO-II 7 m telescope and has been in
operation since March 2000. The second telescope, an improved version of the
first, is being constructed for installation in late 2001. Stereoscopic
observation of sub TeV gamma-rays with the two 10 m telescopes will begin in
2002 and the full array will be operational in 2004.
