A peace-loving, part-time sheriff in the small town of Firecreek must take a stand when a gang of vicious outlaws takes over his town.

Federal agent Steve Lawton works undercover with his assistant, Smiley Burnette, to track down an outlaw gang that is raiding government gold shipments bound for Fort Navajo.

Using marked bills, Steve is looking for the supposedly dead Henry Hardison. Coming to Bonanza Town he gets a job with the town boss Crag Bozeman and gets paid with marked bills. He suspects Hardison is Boseman's boss and he is right as Hardison and his men are now planning to get rid of both him and the Durango kid.

Charles Starrett plays The Durango Kid in the 1950 Columbia western Texas Dynamo. As a novelty, Starrett not only plays Durango and his "alter ego" Steve Drake, but also takes on a third identity, that of a hired gun in the employ of the film's bad guys. As one critic noted, this may be the only western in which the hero is obliged to chase himself. Jock O'Mahoney -- later known as Jock Mahoney -- plays a secondary role, and also doubles for Starrett during the riskier stunt sequences.

Nugget Clark has been having his stagecoaches wrecked and Marshal Rocky Lane arrives to investigate. The foreman of a nearby mine is stealing part of the mecury output and selling it in Mexico. Nugget's house has a direct pipeline from the mine and they are trying to drive him into bankruptcy to obtain his ranch. Rocky is quickly aware that the Foremen is behind Nugget's holdups but they are also onto Rocky when he accidently drops his badge during a fight.