A massive Snowy Authority hydroelectric project changes the Logans' lives.

A new policeman, Bernie O'Donnell arrives in Cooma prepared to stamp out the ethnic tension that is causing fights in the camps. Lilian shows a special interest in Michael's writing ability and the first meeting between Wolfie and Michael is not an auspicious beginning.

Michael stands by Stuart as he is found guilty and sentenced to five years imprisonment. Molly and Michael have problems to resolve with the lease while Michael organises opposition to the Authority after cattle die due to their negligence. Max excitedly reveals that a close friend is arriving from Germany.