Set in a small Australian town between world wars, the film follows the battle between two children, Scott, a poor farm boy, and Josie, the handicapped daughter of a wealthy ranch owner, for ownership of a horse that both children love. Scott requires a horse to ride seven miles to school today and his father buys an unbroken pony, which Scott names Taff. Josie yearns to ride again but, being crippled, must settle on the use of a cart and pony. Scott's pony disappears, while a pony is eventually selected for Josie from her father's herd. When Scott sees the horse, which Josie named Bo, performing in the pony and cart competition at the township fair, he recognizes it as his horse and attempts to take it away. The ensuing quarrel affects both the children as well as dividing the town. The c