Learning that Molly O'Rourke owns the entire town of Stillwell but the back taxes have not been paid, Ben Jones takes over. When Molly arrives and learns of the tax situation, Tom rides off to pay them. But Jones is on to Tom and sends his entire gang after him.

Bandit "Softy" Jones is hiding out with his gang in the town of Stillwell. He intercepts letters from a stolen mailbag and keeps one addressed to Molly O'Rourke. In the letter, the government informs Molly that unless she pays the back taxes on Stillwell, which she inherited, she will lose it. Aware that the deserted town will revive when water is routed into the valley, Softy reopens all the businesses with his gang. He figures that he will take over ownership because Molly will never receive her letter, but Molly soon arrives with the settlers. At the same time, rancher Tom Martin brings in his herd of horses, and when Molly's horses run away, Tom rescues her and they become friends. In town, Softy invites Tom to keep his horses in the corral near the hotel, but Tom becomes suspicious when both Softy and Molly claim to own the town. Molly confronts Softy, who covers himself by telling her that he has rented out the property and will manage it for her. Softy gets angry when, during a stampede caused by a child's firecrackers, Tom sends his horses rampaging through the hotel rather than toward the children. Molly is impressed with Tom's bravery, and Softy backs down. In time, the settlers' wives become disgruntled because their husbands are spending all their time and money in Softy's saloon. Molly decides to give Softy notice, but she finds him drunk, and saloon girl Madge gives away the secret that Molly will lose the property the next day because Softy has kept her letter. Softy hits Madge and grabs Molly. Tom comes to her rescue and helps her escape, then devises a plan for her to get to the county seat to pay her back taxes before Softy gets there. Softy calls the county seat and tells his cohort Manson to keep the tax collector from accepting Molly's money, then sends his gang to intercept Tom and Molly. Tom evades Softy's men and arrives in time to intimidate Manson into backing down and getting a receipt for Molly's payment from the tax collector. In Stillwell, Tom finds out that "Thad" Hurley, a member of Softy's gang, has killed a settler after the man accused Softy of cheating. Tom and the settlers confront Softy and his gang. Thad is shot during the gunfight, and Tom arrests Softy. With the town rid of bad influences, Tom and Molly marry.