Matt and Kathleen fight a land-grabbing politician's scheme to drive the farmers from the high-country after news breaks that their high-country grazing leases are about to expire.

While going to fish one day, Colin and Rob discover the stagecoach, which tumbled down a cliff. The only survivors are a woman and a baby. The woman, Ruth Whitney, claims that the baby is not hers, but nobody in Paterson's Ridge believes her.

Matt is held responsible by an angry landowner when the government decides to take his land to dam the valley.

Kathleen has arranged to buy a new printing press from a wheeler-and-dealer in Blaine's Ravine, who tries to cheat her on the deal. Robbie and Michael outwit him. Montana Hale arrives in Patterson's Creek, complete with riding boots with spurs, American saddle, and Winchester rifle. Kathleen and Matt set a wedding date.

McGregor takes a stand between an aboriginal man who is accused of the murder of a teenager, and the victim's father and two brothers who want revenge.

Danni and her father Matt argue after he tells her he wants her to go to a ladies finishing school. Objecting, Danni runs away to the cabin and spends the night, only telling Michael where she was going.

Josh is found in the woods but refuses to talk to anyone. Two graves are found, of his parents, so Emily and Colin take him in. But then people come to take Josh away - will he talk and tell the truth in time to stay?

Matt is blinded in a mining explosion and is aided by Kathleen and the family as he struggles to regain his sight. Meanwhile, Colin reveals a dark secret from his childhood.

When Matt allows visiting soldiers to camp on his land, Michael and Josh get swept up in the romanticism of the military - and Josh sets his sights on carrying a gun.

Danni falls in love with a stranger who arrives in Paterson's Ridge. His presence seems to have an encouraging effect on all the romances in town but his gift to make others happy masks his own unhappiness.