Ichi is rescued from the water and a travelling stranger pays a local townswoman to nurse Zatoichi back to health.
On the way to Kajikazawa, Ichi passes by a sword dojo being roughed up by some stray ronin.
When Ichi arrives in Kajikazawa, he finds that the stranger was not a man but was Kuni, daughter of Bunkichi, one of the two town bosses.
Her father is planning a free fireworks display and goes across the river to talk to rival boss Yasugoro.
Yasugoro wants control of the river ford as all travellers have to pay to cross.
Ichi is confused about why he is being forced to leave before the fireworks and refuses the money Bunkichi offers.
With Ichi gone Yasugoro attacks Bunkichi's house killing almost everyone present (but not Kuni and her sister who are safe in a locked storeroom).
Ichi, wishing to see, or at least be close to, the fireworks turns back and over hears the ronin, who are camped outside of town, as they brag about the plan.