Colin speaks out against alcohol after a teenager is found drunk. The bootleggers in turn set light to the church. At the same time, Grady Hocking and his two sons, George and Greg, have come to town.

Poor railroad workers live in deplorable conditions, and Kathleen sets out to help them and their families.

The arrival of a travelling boxing troupe in Paterson's Ridge, led by "Dandy" Jim O'Rourke, has the community, including the McGregors, ready to try their hand. A visiting pianist is suspected of being a con man.

A drought causes a flood of hostility between the McGregors and the Blackwoods over a shared boundary creek when Frank changes the course of the stream.