In Texas, in 1872, John Ellis, a former slave, and Sarah, a young orphan, founded New Babylon, a city of outcasts. Django arrives in the city on a search for the murderer of his family. There he finds his daughter Sarah, the sole survivor of the massacre.

Sarah makes a life-saving discovery for the finances of New Babylon: the city's basements are full of oil. With John, she pushes the door of the bank of Elmdale to finance a drill. They incur the wrath of Elizabeth Thurmann, the local potentate, who is preparing an ambush.

Wanting revenge on Elizabeth, Kevin rides to Elmdale; Elizabeth uses the brutal escalation to turn the townsfolk against the people of New Babylon.