Matt suggests to Jack Kelly that he work for Kathleen in exchange for food and board. Reluctantly, he agrees to do so. Jack and Kathleen argue from the start, but obviously need one another. Oliver Blackwood continues his efforts in trying to undermine Kathleen's hold on her land. Rob and Luke court danger to win Victoria's affections, chasing down a wild stallion. Matt must intervene when Danni is severely punished by the new teacher.

Victoria Blackwood and her chaperone return from shopping in Melbourne, but their train journey ends when the tracks are washed away in heavy rain. Rob is sent to collect them and shares a passionate kiss with Victoria. Matt and Kathleen have a disagreement about Sean Carney's education and Emily donates a new organ to Colin's church.

Lawlessness abounds as miners stream into Paterson's Ridge. Anita Hargreaves invites Luke to dinner. Colin McGregor proposes to his organist Emily Cornish. Rob and Luke, in defending Victoria Blackwood's honour, get into a punch up with some miners, and Matt finds the courage to ask Kathleen to go with him to the Mountain Ball. Meanwhile, Frank Blackwood plans to poison Kathleen's cattle to force her from her land.

Everyone is excited that the railway is coming to Paterson's Ridge, except Kathleen, because it will run straight through the middle of her property. She decides to go to Melbourne to argue her case. Matt is also going to the city to be sworn in as a new Member of Parliament. They travel together and Matt takes Kathleen to the ceremony where she pleads her case to the governor and then to a ball. They dance together and, filled with emotion, he tells her he loves her. Meanwhile, Oliver hires a mining engineer to conduct an assay of Luke's mine and Vernoica is sent to England.