Denison was responsible for closing the penal colony on Norfolk Island and for resettling the mutineers of the Bounty from Pitcairn Island. He initially instructed that the Island, except for certain public reserves would be vested in the Pitcairners, and was then forced by the Colonial Office to withdraw the vesting of land, leading to a lasting grievance. When visiting New Zealand gave sensible advice to Colonel Gore Browne, which if followed, might have averted the New Zealand Wars. In November 1860 he received word that he had been appointed governor of Madras, and left Sydney on 22 January 1861.