The story tells about Jigong, who, at the critical moment of breaking through the final level to become the Dragon-Subduing Arhat, senses the villagers of Baishui Town in distress. He abandons his spiritual practice and journeys to Baishui Town to rescue them. There, he encounters Huang Yuan, who impersonates Jigong and deceives the people, nearly burning Jigong to death. Ultimately, Huang Yuan is moved by Jigong's actions and helps him subdue the demon, saving the people of Baishui Town. Jigong then becomes the Dragon-Subduing Arhat.

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