George returns to Moose and starts a community TV station with his best friend Clifford and the beautiful Robin, despite resistance from his father, Moose's corrupt mayor. Joan launches a kids' show featuring a militant activist sock puppet called "Me and My Beaver"
Clifford quits Moose TV, and Robin's party-girl sister Alice hitches a ride to Moose with the mayor. The Beaver airs an incriminating photograph of the mayor on "Me and My Beaver." Ernie doesn't actually make a drum on his TV show "Ernie Makes a Drum"…again.
George adds some pizzazz to Moose TV with a game show, the mayor plots to win the money, and Megog the Destroyer gets his way. Alice makes advances towards Clifford.
The illicit activities of some of Moose's citizens threaten to catch up with them. George turns Clifford's nature retreat for lawyers into "Survivor: Moose."
George breaks the station's transmitter, Germans parachute into Moose to perform spiritual "intercourse with nature," and George and Gerry get into a fistfight.
A film crew comes to town to film "Geronimo" and hires George as their community liaison. Despite his better judgement Clifford is convinced by George to take a role in the movie. Alice gets a role on "Me and My Beaver," and the murderous Jack Pratt turns up in Moose.
Robin films a historical re-enactment of the founding of Moose and casts herself as the village slut. Joan and Beaver go undercover for some hard-hitting investigative journalism. Gerry confronts George about his past dalliance with Alice and Robin overhears them. A brawl breaks out at the station.
George stages a telethon to save Moose TV, Gerry makes a deal with mining magnate Warner W. Warner, the murderous Jack Pratt turns up in town to kill George, and Ernie finishes making his drum.