Having to detour through the swamplands to avoid flooded areas of the road, Alptraum, Arkold and Tulani reach the village of Stonebarrow at the northern edge of the swamp. The town is busy setting up for the Frog Festival, which occurs every five years to commemorate a local girl's triumph over a monster.

Here they encounter the young Gallee noble who is trying to implement his progressive ideas towards improving the land, since his father the Chevalier was turned into a pig by the Countess Draco. Alptraum and the boy's parents get off to a bad start, but the poodle apologizes and offers the travelers a room for the night.

Arkold goes off to a special part of the kitchen to eat, since the town is populated by vegetarians (and some otters, but apparently they don't eat fish in the tavern) while Erik the Gallee explains his plans and some of the history of the town. Tulani goes to gather what she needs to make a broom, so that she can participate in the festivities, and Alptraum is introduced to the local witch, Morgan, who will be one of the judges for the Frog Princess competition.