In light of an American mining company's plan to build a dam which would flood out Wandin Valley, hardened New York journalist Karen Breslin comes to town in search of a story about a conservation protest. Cathy and Terence discover Muldoon has something to hide. Cookie and Bob decide to join Esme's Brownie troupe. Luke loses his pig but gains a dog. Matt and Lucy unearth an old diary which reveals the Councillor's past. Terence is elected to lead the fight to save the Valley after a confrontation with Douglas Briggs, the local MP.