Still recovering from the loss of Elizabeth the family begins to fall apart in some ways. Jimmy confesses about how much he did love Elizabeth, and while trying to hide from her own fears, Laura becomes addicted to laudanum. Emily tries her best to convince the Scottish relatives that she will give them everything she owns in exchange for New Moon, only to receive a reply saying the they are coming to P.E.I. to claim it.

As Emily and Ilse continue to grow older, the adults are faced with some questions that the girls will stop at nothing to get answers for: The facts of life. Meanwhile, Ilse's father, Dr Burnley has accepted a position at Massachusetts' General Hospital. Not wanting to leave, Ilse and Emily plan to run away only to have Uncle Malcolm ruin it by getting ill to the point he is close to death. Dr Burnley saves the day and begins to redeem himself in the eyes of Blair Water residents.

The Devil is in Blair Water, or so says the Reverend Nicholas Pitch who has arrived in Blair Water to rid the town of him. Hysteria immediately follows as the townspeople are suspicious of everything and blame the Devil. Meanwhile, the younger townspeople start to ask questions about the Devil.

Hysteria continues in what can be likened to the Salem witch trials. In all this it is Laura who become calm (the Devil has of course left her).

Despite disappoval from Eve's father, Abner, Jimmy plans to give Eve everything that she wants. Emily causes more problems when she gets the idea Eve is a Saint and wants it is be official by getting people to sign a petition. Abner is determined to keep the two lovers apart and finds Jimmy and Eve when they secretly rendezvous. After a struggle Abner Kinch is dead. One question remains, who killed him: Eve or Jimmy? Jimmy risks everything for the woman he loves…

Lightening is said to be able to change a person's life and so it does for Jimmy who does indeed have a change in life. After the bolt strikes him Jimmy is left in a coma, desparetly wanting Jimmy to be okay Emily wishes that he could be a ‘man of great wisdom'. When he awakens her wish has been granted, the damage which he sustained from the well accident seems to have vanished. Life changes dramatically for Jimmy as he achieves everything including world acclaim. But nothing can be compared to the joy of seeing Eve again.

One of the more hard to believe stories, this episode focuses on Perry and his life. His mother was sent to prison for murdering her husband ten years previous with an axe. Perry lived through the torments at school but he had long since forgotten about his mother. But Aunt Thom plans to break his mother out of jail and he has to help.

Small pox spreads through Blair Water and Robbie Burns dies. Trying to help as many as he can, Dr Burnley turns his house into a hospital. Ilse then also falls ill.

Emily and Ilse write an article ""Kicking the cat"" for the newspaper. The problems begin once people start taking the advice of the column and misunderstandings in love begins. Then Mr Carpenter returns and falls in love with Isabel Murray.

While her friends all head off for Shrewsbury Emily is left behind in Blair Water because her Auth Ruth refuses to have Emily stay with her. Bitterely disappointed, Laura tries to cheer her up by telling Emily that she has left Ian for good. An ally of sorts then comes to Emily's help and her future takes a turn for the good, but things aren't so good for Laura who discovers something unexpected.

Perry returns to Blair Water only to be leaving shortly to fight in the Boer War. Other strange occurances are also going on with a love letter finding its way to Cousin Jimmy and a stranger coming to town.