Elizabeth's sister, Julie, visits Hope Valley in her quest to become a teacher; Lee is made acting Sheriff when Abigail and Bill leave town to testify in Gowen's trial; Carson has problems with a traveling tonic salesmen.
Elizabeth mentors Julie, who finds teaching more difficult than she imagined; Abigail has to find a way to convince the railroad to build its depot in Hope Valley.
Jack and Elizabeth start planning their future; sparks fly between Carson and a new arrival; Elizabeth teaches her students the difference between facts and speculation; the town is put on edge when Lee can't pay his employees.
Abigail has to figure out how to keep the town's bank afloat; Elizabeth struggles to understand what troubles one of her students; Rosemary goes overboard planning Jack and Elizabeth's wedding.
Elizabeth assigns her students to follow business leaders in Hope Valley; Abigail and the town host two possible investors for the failing bank; Bill's life is disrupted when AJ Foster arrives and turns herself in.
Bill is put in jeopardy while transporting AJ to face trial; Abigail tries to save the town from an investor who will hurt Hope Valley; Carson is faced with a decision; Elizabeth tries to reunite a mother and her son.
The widow of Lee's former partner arrives and gives Gowen a chance to run a company again; Elizabeth tutors a new student; the residents of Hope Valley conspire to pull off a surprise.