Olivia is about to deliver her first child, and Jasper's family descends on them intending to aid at the birth. Their Bohemian life style clashes with the traditional life style of the King Family, causing major problems. Montgomery King Dale's entrance to the world, almost didn't happen. Jasper is the one who saves the day!

Aunt Hetty's plans to help Olivia with the new baby change when Olivia challenges Hetty to be creative. Hetty has written a romance novel, and with out her knowledge, Olivia publishes it in the Chronicle, under the nom de plume, H.E. LeRoi. Clive Pettibone, the new school master, also has a creative streak. Hetty and Clive are antagonists, until they share their secrets. (setting us up for a possible romance between the two characters)

For his 14th birthday, Felix wants a rifle, but receives a telescope instead. He borrows his fathers rifle to go hunting, on another one of his 'get rich quick schemes', to provide venison for the White Sands Hotel. Gus hears the shot, and finds Felix bending over a wounded Digger. Arthur Pettibone, is a veterinarian student, the oldest son of Clive, who his eye on Felicity. He treats Digger, knowing he is making an impression. Gus is not pleased at Felicity's reaction to Arthur, and realizes that he has competition for her affections.

When the town decides it needs a Volunteer Fire Department, after a mishap nearly burns down the stable, the choice of chief is between Alec and Clive. It is Hetty who casts the deciding vote, for Clive! The fire department is unruly and disorganized, until Felix's science experiment goes awry, almost burning down the school and they all work together as a team to save it.

With the 'romance' of Felicity and Gus progressing, Sara is feeling left out. Then Zak Morgan, and his ""Wild West Show"" come to town and Sara loses her heart. Hetty and Olivia are very concerned that Sara is getting into a dangerous situation. Sara rodeo rides to impress Zak, and asks if she can join his show. Zak agrees, but when the time comes and the show leaves town Sara is left behind.

Alec's childhood friend, Emmett, returns to Avonlea with a new young bride and an infant. He asks Alec for help, as his farm has done poorly and he needs to fish for food for the winter.

On a shipping expedition, their ship sinks and Emmett dies. Alec feeling responsible, tries to run Emmett's farm and his own. Evelyn, the clinging widow, causes problems between Janet and Alec and sets the whole town gossiping.

Now 16, Felicity, decides that a romantic evening with Gus is what their relationship needs. She schemes to empty the house so she and Gus can dine alone. Gus has no idea that they are to dine alone. Alec and Janet return home, from dinner at the White Sands, and although the situation that the two young lovebirds are caught in is totally innocent, Gus is banished. Sara tries to help, but it only makes matters worse. Gus faces Alec, man to man, and asks for permission to ""See, Felicity, in the open, and with your blessin'"". Alec agrees.

Gus gets Felix a job at the White Sands Hotel, as Simon Tremayne's assistant. The job goes to Felix's head, and causes a riff with Gus. He reveals that the new owner once worked for royalty; the same Duke who just happens to be visiting Carmody. Hetty is determined to get the Duke to come to the Founders Day Banquet and to have the King Family honoured as Avonlea's 'Founding Family'---of course, it isn't quite the Kings---

To make ends meet, Simon Tremayne takes Hetty as his ""silent"" partner in the hotel. Hetty thinks she can make money by holding a Valentine dance; but a health inspector almost closes the hotel down when he finds a 100 year old bird, dead, in the ice house. Arthur wants to dance with Felicity, who has agreed to go to the dance with Gus, who is being pursued by Chef Pierre's French niece, Suzette.

The son of a wealthy businesswoman pays a visit to the White Sands hotel without informing his mother. At the same time an antiques dealer charms the Avonlea townspeople into letting him ""appraise"" their valuables. When he makes off with them, the wealthy scion is nowhere to be found, so it is believed that he has been kidnapped. Soon, a detective turns up to find out the whereabouts of both men, though at first only Sara knows the twisted truth about what really has happened.

A wealthy American developer tries to modernize Avonlea and reinvent it in the style of a town he built in Pennsylvania. Opinions in the town are mixed; Clara Potts and Olivia take up the case for modernization but Hetty is firmly against it. Meanwhile, Sarah convinces her trust fund (by impersonating Hetty over the telephone) to buy an Edison motion picture camera and send it to Jasper Dale, under the impression that he is to do experiments in frame rate with it for the Edison company. Eventually, Hetty decides to use footage Jasper filmed with his camera to show a visual record of Avonlea, as part of an emotional appeal against the radical rebuilding of the town.

Sara and Felix are desperate for a science project for school, when they find perfect one in Jasper's work room. Aunt Eliza surprises everyone with a visit. Since it is cold, and lambing time, the visit is not welcome. Janet and Alec, tired and worn out, make some unkind remarks about Eliza and she runs away. The science project warms up a frozen Eliza, a cold barn and keeps the new born lambs warm, as well. [I guess this disproves my favourite quote of the episode, eh Felix?]