Background The small town of Twin Peaks, Washington, has been shocked by the murder of schoolgirl
Laura Palmer (
Sheryl Lee) and the attempted murder of her friend
Ronette Pulaski (
Phoebe Augustine). FBI special agent
Dale Cooper (
Kyle MacLachlan) has come to the town to investigate; the violent, drug-dealing truck driver
Leo Johnson (
Eric Da Re) is the chief suspect. Meanwhile, local businessman Benjamin Horne (
Richard Beymer) has been scheming with his lover, Catherine Martell (
Piper Laurie), to burn down the town's sawmill to buy its land cheaply. However, Horne also conspires with the mill's owner, Josie Packard (
Joan Chen), to burn the mill and kill Martell to collect their insurance policies.
Events James Hurley (
James Marshall) and Donna Hayward (
Lara Flynn Boyle) sneak into the office of psychiatrist Laurence Jacoby (
Russ Tamblyn), hoping to find out more about Laura, whom he had been treating. They find a cassette tape she sent him. Meanwhile, Jacoby is distracted by an offer to meet Laura's cousin, Madeline Ferguson (Lee), who has disguised herself as the dead girl; before they can meet, however, he is attacked by a masked man and left unconscious. Cooper and Ed Hurley (
Everett McGill) are undercover in One Eyed Jacks, a Canadian brothel and casino. Cooper speaks to drug smuggler Jacques Renault (
Walter Olkewicz), who he believes is connected to Laura's death. Posing as a drug financier, Cooper persuades Renault to meet him in the US; Cooper learns that Renault and Johnson were with Pulaski and Laura on the night she died. Later that night, when Renault arrives to meet Cooper, he is arrested for Laura's murder. Renault resists and is shot; he is taken to a hospital where he accuses Johnson of attacking him the night of the murder, claiming to have been unconscious while the killing occurred. Laura's father, Leland (
Ray Wise), learns of the arrest; he travels to the hospital and fatally smothers Renault. Johnson's wife, Shelley (
Mädchen Amick), is at home when he returns and assaults her. He drives her to the sawmill, ties her up, and rigs a timed device that will set the building on fire. Meanwhile, Packard meets with recently paroled Hank Jennings (
Chris Mulkey) to give him US$90,000; it is revealed Packard paid Jennings to serve eighteen months in prison. This ensured that neither of them would be implicated in the death of Packard's husband, from whom she inherited the mill. Jennings later calls Martell to lure her to the mill. As Martell arrives, the device explodes, engulfing the building in flames. At the same time, Johnson attempts to kill Shelley's lover, Bobby Briggs (
Dana Ashbrook), but is shot by Jennings. Cooper returns to his hotel room and orders room service. Before he can read a note that was left earlier by Audrey, Deputy Brennan calls him to inform him that Johnson has been shot. However, a knock on the door draws him away from the phone. When he opens the door, an unseen figure shoots him three times. ==Production==