A local fisherman mysteriously disappears on Pyramid Lake and found weeks later with his throat cut. He is only one of a series of lake visitors who are murdered at the lake. Abbott, Smyth, and the intrepid Beth McDonald, join them to investigate the murders thinking they could be the work of Jack the Ripper. With rumors of gold hidden in the lake, someone or something is trying to kill them. A Paiute Indian explains the myth of the Water Babies to the team and knows how to find the gold. In the process, the team uncover the real reason for the murders.