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.

Matt and Kathleen's wedding day is marked, and could be marred, by a woman who appears at the church and wants to buy a horse from Matt. Matt finds a riderless horse and goes off to investigate, without telling anyone.

Montana's new horse is stolen by rustler Seb Holgate after she bests him in a shooting competition. Montana sets out after him and is joined by Kathleen.

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.

Kathleen's husband, who was thought to have perished eight years ago, returns to make amends with Kathleen and Michael for his deceit.

Emily is still ill from drinking water from the river and it turns out someone has built a dam. Matt makes the decision to get rid of the dam by using dynamite, but one person is killed in the explosion.

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.

Montana and Rob find an American surveyer who has been shot. They help him and he reveals he was shot by a man spying on Montana. When Montana claims that she has seen someone loitering by her property and her horses are poisoned, Rob is determined to protect the woman he has more than neighbourly feelings for.

Montana is charged with the murder of Sam Taylor's father and scheduled to be extradited to America. But Matt and Kathleen get her a hearing in Paterson's Ridge with Matt as her defender.

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.

When Matt and his family visit Melbourne, they become embroiled in a political plot between English and Russian royalty.

During Paterson Ridge's charity sale, a book belonging to Mr. Elliott is accidentally sold. Kathleen finds - and publishes - a love poem that falls from the book but who is the lady of Herbert's dreams?

A fair is held in aid of church funds and members of Patterson Ridge all make donations. When a hand-written love poem is found in a second hand book, gossip around town is rife as everyone tries to work out who wrote the poem.

Mr Gleeson and Kathleen travel to Mansfield to collect an old friend who has travelled from England to visit him. When their carriage skids down an embankment, they find themselves stranded and injured in the bush.

A friend of Emily's arrives in Paterson's Ridge with her newborn child in search of a fresh start but her abusive husband soon follows to take her with him.

Macalister tries to persuade his wife to return by destroying the economy of Paterson's Ridge, but Matt finds a weak spot in his plans.

Duncan Jones, an old friend of Rob's turns up while Rob is away. Danni is suspicious of him though as he seems nervous. The Race is being re-run and none of the McGregor's are going to be competing.

Miss Hannah Kirov opens a Russian tea room at the back of the general store to generate more income. The hotel owner though isn't happy with the business he is losing, so he cuts his prices in half.

Jessie McClusky turns up in Paterson's Ridge to run the Railway Hotel. While much of the town doesn't like Jessie, it is Emily's reaction which has Colin worried. It takes a real heart-to-heart for Emily to reveal her secret.

Spanish gypsies pass through Paterson's Ridge, and Danni falls in love with Carlos, while Hannah loves Carlos' older brother. Then the town turns against the gypsies after several robberies take place.

Nell Frampton sells Matt a bull called 'The Grand Duke', but soon after the bull vanishes and another bull turns up dead. Meanwhile, Emily and Colin move into their home.