A pregnant woman from out of town admits herself to Wandin Valley Hospital with signs of foetal distress. Despite his reluctance, Terence is forced to operate when another doctor is unable to reach the town in time. Delivering a baby girl, the hospital staff are surprised by Mrs Myers' disinterest and apathy toward her daughter, whom she says is ""not mine"". Meanwhile, Simon has to refuse local girl Jenny Secombe's request for the birth control pill. At fifteen, Jenny needs parental consent to obtain the pill, but is afraid to ask her father. Shirley finds she is receiving unwanted attention from the recently widowed Frank Gilroy, while Simon continues to pursue Vicky, despite her insistence that they remain friends.

Ladies' Auxiliary President and part-time hospital administrator Elaine MacKay is killed in a car accident at the Five Mile Bridge. As the town grapples with the loss, speculation begins as to why Elaine was in a car with her husband's friend—Ian Sutton—heading out of town. Molly and Brendan Jones arrive in town.

Frank awaits Peter Gleeson's blood results to see if he was driving under the influence of alcohol when the accident that killed Elaine MacKay occured. Gossip begins to circulate in town that Ian and Eliane were having an affair. Andy, increasingly speculative as to why Elaine was traveling in Ian's car (which was heading to Sydney), goes to see Ian in the hospital. Molly adjusts to nights alone on the farm.

Tension is high between some members of the community and the seasonal fruit pickers, who are in town for the orange harvest. While making a house call at the Cameron farm, Terence spots one of the picker's children, Lexy Popovich. At first thinking that the child has malnutrition (because of his swollen stomach), Terence comes to the conclusion that the child has a hydatic cyst. After much convincing, Lexy's mother Sandra allows Terence to operate. The operation is a success. However, Sandra—who is attempting to hold down her job, regularly visit Lexy at the hospital, and, resultingly, is not taking adequate care of her health—collaspes whilst working. Meanwhile, Shirley tries to dissuade Frank's interest in her by cooking for him (showing, she thinks, that she would be a bad wife). However, the plan backfires when Frank announces that he can cook and proceeds to whip up a gourmet meal.

Simon meets former nurse Emily Page, who knew his grandfather Charlie. Befriending Emily—who is beginning to feel the effects of crippling arthritis—he is shocked to learn that she plans to commit suicide when she feels the illness has progressed to such a point that living would constitute a burden to those around her. Terence persuades Pat Turner to admit her belligerent father Artie to the hospital so that she can have a long-overdue vacation. While at the hospital, Artie engages in a war of wills with his nurse, Brendan. Bill Ferguson continues to visit Sandra at the hospital. Molly buys an old, sick cow, much to the disappointment of Vicky.

The team at the hospital - with the help of Shirley, Frank, Vicky, and Robert Bowen - work together to treat the passengers of the bus accident. Molly confronts the bank manager about her loan. After burning his hands at the accident scene, Frank moves in with Shirley and Vicky so that Shirley can take care of him. Robert expresses some reserved praise for Simon.

Vicky secures a high-profile job treating a Yarraman colt trained by Neil Stephens, but worries that Stephens is excessively pushing his reluctant daughter Robin into constant showjumping training. Meanwhile, Terence becomes concerned about Neil's wife Jill, who requests that Terence sterilize her. Simon suspects that a young girl is being physically abused by her father. Molly decides to go into business breeding turkeys. Marta spends an evening at Terence's vineyard with Alex Popovich. Shirley helps Frank work on his article for the Horticultural Society.

After Robin is admitted to hospital as the result of her horse-riding accident, Simon searches for the truth about the previous injuries - which were treated by Terence - that become apparent on her X-rays. Molly decides to start business as a yabbi farmer. Marta's friendship with Alex continues to deepen, with Alex gifting her with a wood-carving of The General. Shirley's attempts to get Frank to move back into his own house with a farewell dinner backfire.

Terence comes to the aid of a woman suffering from agoraphobia. Molly assists at the veterinary practice when Vicky falls ill, while Simon uses this as an opportunity to get closer to her. A three-year-old child is treated by the team after falling off a moving plough. Shirley continues to replace her craving for cigarettes with food. Marta learns that the Hospital Workers' Union has advised workers to strike for a pay rise, leaving only the medical staff to run the hospital.

Shirley, Molly, and Vicky assist at the hospital during the strike. Simon performs his first operation in the valley on Kathy Pieri. However, what is at first thought to be an appendicitis turns out to be something quite different. Terence worries that problems at home may be the cause of Brett Morgan's anxiety and inability to study or sleep. Vicky becomes upset when Terence refers to his wife in Sydney.

Jeremy Gunn - (Jayson Duncan), is expelled from a private boarding school for marijuana posession. There is more to that than meets the eye he is covering up for others as he has a low self- esteem. So he returns home to his father Tom (T.B.A)who is the neighbour of Brendon & Molly Jones - (Shane Withington & Anne Tenney). Jeremy's mother has left Tom and is travelling Europe somewhere. Tom is depressed and this trouble with Jeremy is the last thing he needs and there is tension between the two as Jeremy reminds Tom of his mother and believes the boy to be useless. Jeremy attends Burrigan High where he hooks up with some local lads he was mates with pre boarding school and they are all at the age where they are learning to drive. Jeremy seeks lessons from Brendan as his father has not got the patience. Craig Morrison was one of those lads, we worked together often in the 1980's. So i cannot remember exactly where Episode 1 ended but...Jeremy couldn't drive well at all, though bravado m

Frank is furious when he can't discover who wrote the bad review about his play. A popular country and western singer comes to the valley with his teenage daughter.

Simon is estatic when he hears Vicky's good news. Judy helps a young girl cope with the pressures of adolescence. Terence has to face the dilemma of breaking bad news to a close friend.

A chimpanzee is found dead. Shirley fights to eradicate the plastic shopping bag.

A charitable act toward a group of gypsies puts Steve on the outs with her neighbours. Shirley and Rosemary decide to teach themselves auto mechanics-and decide to use Franks squad car for practice. Taking a break from her last minute preparations for her trip to Greece, Steve goes for one last horseback ride during which she is thrown from her horse and killed.

Luke goes out to look for Steve and finds her body. Discovering that Steve's horse had been shot, immediate suspicions falls on the Gypsies who have been seen hunting in the area. Dave Watson organises a posse who burn down the Gypsies' caravan, but when a bullet retrieved from Steve's horse identifies Dave Watson as the shooter, Luke confronts him with rifle in hand. Dave admits to the act but states that he was unaware that Steve was in the area and was only firing a warning shot to scare off one of the Gypsies. Frank intervenes and charges Dave with manslaughter. Unable to remain in the valley, Luke packs up his things and leaves for Sydney. Matt and Lucy become foster parents to an infant.

Harry and Kate have finally gone on their honeymoon and Dr. Alex Fraser makes a surprise return to the valley.

Tom takes Anatomic to the track for the first time but only Anna's influence can get the horse into the starting gate.