The alcalde has the Indian camp ransacked, leaving Zorro's mark, so as to turn the whole pueblo against the 'bandit', finds copper ore on Indian land and has a fake Zorro, a master-swordsman, rob the church's poor box, which convinces most of the villagers. The real one rides to investigate, finds the alcalde's geology report and overhears him plan a fake duel with the impostor. The alcalde confiscates the Indian land but both 'duelists' are defeated by the real Zorro.

The de la Vega's are surprised the poor farmer Maceas offers them a free load of beans, because he believes Zeus, a fine stallion he nursed to racing shape after don Esteban ordered it put down, will win him a fortune from a certain señor Herrera. The whole pueblo bets on the race, after don Diego won a friendly challenge accepted by don Alejando, but remarked the stranger held his horse back, the alcalde even wagers 4,000 pesos of taxes collected for the governor.