The Town of Carmody is planning on amalgamating several surrounding communities, including Avonlea, into their town, all in the name of progress due to economies of scale. Although modernization has never been a selling point to most Avonlea residents, Eulalie Bugle and Archie Gillis lead the charge for amalgamation since they individually would gain monetarily from the move. While many in Avonlea work against amalgamation, including the Kings, the tide seems to be working for amalgamation with the showy and expensive propaganda provided by the pro-amalgamation forces, led by Carmody's mayor and officials of the railroad. A microcosm of the battle is the Dale Cannery. Many smaller canneries like the Dale's are closing due to the mega-cannery in Carmody being able to offer higher prices to the fishermen for the raw materials while undercutting prices to consumers. Lottie Cooper, a young single mother of a newborn, worked at one of those closed canneries. She comes to Olivia looking for work. Olivia, seeing a woman in dire straights, agrees. When Olivia finds that Lottie has no home and is barely surviving, Olivia additionally offers her home as a place to live temporarily. Lottie's stay coincides with Jasper's return to Avonlea. Lottie's child and Jasper's return renews thoughts within Olivia of wanting another child but probably not being able to have one.
—Huggo