Episode 3 is the third episode of the Season 1 of Top of the Lake
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Matt Mitcham goes to Paradise and sits in on a session with GJ, the enigmatic leader of the camp. In a mocking tone, Matt asks the group about the human mind; GJ tells Matt that the human mind schemes. Later, Al meets Matt in the middle of the lake in separate boats. Matt tries to deflect attention to Wolfgang Zanic, but Al warns him that a search of the Mitcham compound is inevitable. During the search, Robin examines Tui's room and sees two women leave the house from a bathroom. Robin investigates the bathroom, though Matt appears to distract her.
A local man, Sarge, finds Wolfgang dead. In his cabin, Robin and the police discover vandalism and intimidating messages. They also discover a suicide note, purportedly written by Wolfgang. Wolfgang is found hanging from a tree, with woman's underwear on his head and a shovel below his body. Police uncover a grave nearby, which ends up belonging to a dog.
The police find many videotapes in Wolfgang's cabin. Back at the police offices, Robin watches a video of Tui dancing, then a video of Tui playing and singing in the woods with a person in a blue hooded sweatshirt. Robin brings the tape of Tui dancing home, and calls Al to tell him she has a notion about Tui's "no one" note. At dinner with Anita, Matt Mitcham asks questions about GJ and the women's camp. They go back to Matt's compound, where Matt reveals he needs medication to have intercourse.
At the compound (the home where Tui grew up), the bathroom has an entry to a drug lab, where one of Matt's sons takes a drug and becomes very affectionate. The son greets Matt and Anita without any clothes on while he keeps telling his brother to talk in the present tense.
Robin inspects the women's passports at the container village at Paradise. GJ tells Robin that Robin will fall hard as a result of the Tui investigation. Robin finds out her mother has terminal cancer.
On another date, Matt and Anita take ecstasy together. Matt at first is affectionate with Anita, but becomes infuriated when Anita walks on the grave of Matt's mother. There is a belt lying on top of the grave, and Matt uses the belt to whip his back.
Robin has a sexual interaction with Johnno in the bathroom of a local bar. Johnno later tells Robin about his experience in prison in Thailand, including something about his mother bringing him food. Johnno no longer smokes or drinks.
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