Uncle Joe is excited about a new capital works project for the valley. The plan is to dam up Bleeker Creek which will create a new lake in the area. Kate points out to Uncle Joe that the location of the new lake does not mean that the hotel will be lake front property, but rather be under water in the middle of the lake. When she sees how this project will devastate her and the Cannonball, she knows Homer Bedloe is behind it. Kate needs to collect two hundred signatures for a restraining order petition. When Kate comes up two signatures short, Mr. Fletcher the Commissioner of Conservation, says nothing will stop them from putting in the lake. Uncle Joe's dog winds up saving the Shady Rest.