Landry has Sam Martin killed. When Tim and Chito find Martin and his son, Chip says Matt Potter was responsible. But when Tim and Chito start their search, no ones knows a Matt Potter.

Red Ryder convinces homesteaders to settle in Paradise Valley. Business men in nearby Central City want control of the valley and water supply and propose to build a dam for half interest in the land. They use Red to generate interest in the dam but when the dam is completed, they rig the stockholder's meeting so Central City will get the water.

An outlaw saved by a Mexican girl hunts the holdup partner who shot him in the back.