Cassie judges Middleton's chili cook-off, which brings out fierce competition among residents, including Sam. Martha receives unexpected competition in her once-uncontested run for re-election. Cassie unearths a time capsule that reveals information about her current Grey House guest's background.
A mysterious, darkly beautiful woman named Cassandra Nightingale moves into an old, abandoned house which is reputed to be haunted by its original owner, "The Grey Lady". The small community is divided in their opinion of her: Some want her to stay (especially widowed police chief Jake Russell and his two children), while others want her to leave. Through the course of the story, seemingly magical things happen, and the community attributes these occurrences to her. Everyone begins to wonder if she is really a witch.