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

It is 1951 and the Scheme is still in the planning stages but the small township of Cooma is beginning to attract new arrivals and sooner or later, they all find their way to Mick's Café. Molly and Jack's daughter Kate returns home from Sydney unexpectedly and catches the eye of engineer Gordon King. School teacher Lilian Anderson arrives in Cooma and makes an immediate impression on Michael. East German refugees Wolfie and Eva get married before he and Max leave for Australia to work on the project. Eva will have to wait two years to join them.©tz

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.

Rebellious and full of mischief, Wolfie has a big influence over Michael. Jack and Molly are concerned about their son's new-found friendship. Their fears are realised when Bernie informs them Wolfie has been charged with assaulting a young local girl.

Wolfie encourages Michael's infatuation with Lilian, his teacher, while Stuart has a falling out with Alf. At the camp, serious accusations are made against Max who faces deportation by the authorities — and even harsher treatment from his workmates who suffered under the Germans during the war.

A developing friendship between Wolfie and Kate makes everyone uneasy. The Snowy is beginning to reveal its ugly side with gamblers in the camps and cattle thieves in the mountains — events which combine to provide Stuart with a fateful opportunity to exact vengeance for the death of his sons.

As Bernie tries to piece together the events surrounding the shooting, Wolfie lies in a coma from which he may not recover.aa Michael is devastated when the truth behind Wolfie's shooting is finally revealed and Lilian, herself alienated by small town attitudes, reaches out to comfort him.

Stuart's arrest divides the community and scandal is brewing over Michael and Lilian's love affair. Kate nurses Wolfie back to health but he is deeply depressed by the forthcoming hearing. Michael tries to reach some understanding with Wolfie. To avoid dismissal Lilian takes a job out of town and Max tries to hide the truth about Wolfie from Eva.

The court finds Stuart has a case to answer and sends him for trial. Michael goes to Lilian and she urges him to make peace with Wolfie, but Wolfie disappears mysteriously. A strike is threatened and Molly pressures the Authority to improve the worker's conditions. Max continues his letters to Eva compounding the lie.

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.

In an effort to get closer to Max, still under suspicion for Wolfie's disappearance, Bernie asks him to help in his efforts to rid the camps of their criminal elements. Kate and Bernie go to Island Bend and end up in trouble, spending the night in the bush together. Eva arrives from Germany and is devastated to discover that Wolfie is missing.

Max tells Eva what Wolfie was really like but Eva doesn't want to hear. The men are being pushed day and night and accidents on the Scheme are not infrequent. Kate is shocked to learn that Eva and Wolfie are married. Jack shocks the family when he announces he is putting the hotel up for sale.

In the series finale, Eva forgives Max but decides to return to Germany; Alf resigns from the Authority; Michael visits Stuart in jail. A love from the past returns shocking Eva and Kate. Lilian and Molly settle their differences and Stuart surprises Michael with a special Christmas call.