When Jack McLeod passes away, his two daughters inherit Drovers Run, a vast cattle ranch in the Australian outback. Ultimately, Tess and Claire decide to run the ranch together, with their housekeeper, Meg, her teenage daughter, Jodi, and a local girl, Becky. Their lives are hard and the obstacles many, but the rewards are every bit as grand as the wild open land they've inherited.
Kate is obsessed with proving that Riley survived the Christmas night car accident. Grace searches for the mysterious person who saved her life in the car accident. After his lucky escape from the car crash, Patrick feels invincible and risks his life to prove it. Ingrid is forced to reveal a dark secret — she is on the run from an abusive husband. The Drovers girls use old world technology to repair their windmill, which broke and fell during the recent flood.
Grace and Marcus are trapped at the bottom of an abandoned mine shaft meanwhile Kate helps Father Dan by caring for an elderly woman, who makes her life a misery. Tayler is nervous about taking her relationship to the next level and Phil goes to extreme lengths to woo back Moira.
Stevie's wild-at-heart former rodeo mate Sharon visits Drovers and turns everyone's lives upside down. Marcus sacrifices his chances in a major horse endurance race to save Ingrid from an abusive rider. Kate is feeling increasingly dissatisfied with her life, and throws herself into her new role as overseer. But is this enough for her?
In episode 206 of McLeod's, Kate is raring to finish her pipe project when she comes across a young man broken down on the stock route.
Moira hears strange noises in the night as an intruder haunts Drovers. Meanwhile, Phil has troubles with the Truckstop.
Alex returns from Argentina and his reunion with Stevie begins wonderfully, but soon turns ominious after Stevie has a tragedy-filled dream.
After the tragedy, Stevie decides to leave Drovers and move to Killarney. Meanwile, the girls at Drovers have started a baby name sweep for Wombat; Stevie begins implementing the breeding plan Alex and Nick were working on in Argentina; Grace tries to figure out what her feelings for Marcus are, after their kiss.
The McLeod sisters clash over Drovers' fate when Jaz returns.
The girls of Drovers band together with the local community in order to stop a massive dam being built upstream; Meanwhile, Jaz is blackmailed by a pro-dam farmer; Patrick's trial run as overseer at Killarney ends in disaster.
When Tayler's mom shows up at Drovers, Tayler is forced to face her demons. Meanwhile, Stevie is concerned that her infant son has not smiled yet.
Grace, Jaz, Marcus and Frank drives to the city to present their objections to a minister that is responsible for the Dam. Meanwhile back at Drovers Phil is trying to patch things up with Moira and brings her a very personal gift that catches her by surprise.
Jaz is surprised to find out from Lily that her dad, Frank, is planning to propose to her, and Jaz needs to decide how to deal with the situation. Meanwhile, the minister working with the dam comes to visit and Frank lets his unstable side surface.
To work as a team to rescue a kidnapped dog, Ben and Marcus are forced to get along.
Misha, Jaz's former boyfriend, shows up at Drovers with a major surprise. Meanwhile, Phil suggests to Moira that they go travelling and start a life of their own.
Tayler has a new study-buddy, Wolfgang, that Patrick doesn't approve of, causing Tayler to be angry with Patrick for not trusting her. Meanwhile, Moira tries to tell Phil that she is pregnant, but is afraid to disappoint him and ruin their life plans.
Rumours run amok after the ball, as the town believes Steve is dating Marcus. Repurcussions occur when one man, Ted Franklin, causes some problems for Drovers and Tayler takes it upon herself to dig up gossip on him to bargain with.
Jaz tries to train her horse Annie to become a working horse, but Annie is afraid of something and causes problems on the farm. With help from Ben, Jaz tries to figure out if Annie can stay at Drovers or whether she should show jump again.
Ingrid's husband Paul is still investigating cattle theft in the area and this makes Ingrid very unconfortable. Meanwhile, Phil is trying to make Moira feel better and has a special evening planned for them. Tayler gets an F on an essay, while Patrick got an A+, she doesn't tell him and she doesn't know how to make the next essay better.
Ingrid is becoming more and more anxious about Paul's presence and it's affecting her work. Meanwhile, Marcus, Ben and the girls realize Paul's true side so they start making a plan to get rid of him for good.
Moira is preparing to play the leading girl in Phil's musical. During the rehearsals she finds out that Phil's son is getting married, but Phil isn't planning to attend the wedding, and she decides to interfere. Meanwhile, a new vet arrives in town and Stevie feels guilty for finding him attractive. Grace feels bad about what she said to Ingrid before she left.
Drovers has a lot of debt and they need to shear all their sheep in one day to get them to the sale in time. Grace and Marcus go to Fisher to pick up some shearing tools and he has a surprise for her, but Grace sees Ingrid and her guilty conscience comes back. Meanwhile, a fire at Drovers causes even bigger issues for the future.
Grace finally finds someone willing to carry their cattle, but this involves a two day journey for the girls. Meanwhile, Stevie worries that she can't handle the farm without Alex. A love triangle blooms between Jaz, Ben and Ben's ex, Monique. Meanwhile, Grace decides to tell Marcus the truth about Ingrid.