When the members of a caravan of pioneers find a daisy growing in the middle of the desert they decide to stop there and to build their town on this very spot. Houses soon spring up like mushrooms, immediately followed by a bank, a saloon, a prison, etc: Daisy Town is born.—Guy Bellinger
As a wagon train makes its way across the open prairie, they come upon a solitary daisy growing in the middle of the vast desert. The townsfolk then take it as a sign, and decide to build their community here, naming it 'Daisy Town.'
However, no sooner has the town been completed, then it is set upon by outlaws, desperadoes and horse thieves. One day, Lucky Luke comes riding into town atop his horse, Jolly Jumper. Making his way to the saloon. Luke soon causes a stir when he takes out all the unsavory characters in the bar. Several of the men then attempt to kill Luke on his way to find lodging for the night, but he takes care of them as well. Several of the citizenry have noticed Luke's skills, and report this to the Mayor.
The next day, the Mayor and several of the townsfolk go to meet Luke, offering him the job of Sheriff of Daisy Town. Luke accepts, and goes about his duties, soon having taken care of the criminals. However, with the jail filled to capacity, Luke refuses to give in to a public hanging for the extra criminals. Instead, several are tarred and feathered before being run out of town.
Sometime afterward, word reaches the townsfolk of the Dalton brothers who are in the vicinity. The four brothers eventually make their way to Daisy Town. Luke warns them to leave town, but they claim they will be staying. The four then rob all the local stores, before (accidentally) blowing up a hotel.
Luke is incensed when the townspeople seem to be willing to let the Daltons do whatever they wish, and quits his position as Sheriff. It is then that Joe Dalton declares an election should be held for no positions in town.
Joe declares he'll run for Mayor, William Dalton declares he'll run for judge, and Jack Dalton wishes to run for Sheriff. This leaves the last of the brothers Averill, who is put in charge of the brothers' campaigns.
Luke uses this to his advantage, and turns the brothers against each other, before they call for a showdown with Luke. Luke has the showdown and wins, with the brothers being tarred and feathered, and then run out of town.
However, once they have scrubbed themselves clean, the Daltons head back to Daisy Town intent on getting revenge. On their way, they are accosted by Indians. Originally planning to be burned at the stake, Joe convinces the Chieftain that the Daisy Town settlers are just the start, and more will be making their way west to run the natives off their land.
The Chieftain then declares war on Daisy Town, and Joe thinks that he and his brothers will finally go free. Instead, the Chieftain explains that they know who the Daltons are, and sends them to the State Prison to collect a reward for their capture.
Unknown to the Daltons, Luke trailed them after they left the town. Finding out about the Indian's plans, Luke alerts the townspeople. Several try to get messages through to the Cavalry, but the Indians won't let anyone leave.
Finally, Luke hits on the perfect ruse: they'll pretend they are abandoning the town, but fill all the wagons with armed men. The wagon train is then attacked, and Luke and the wagons then play a complex game on the natives until the Cavalry shows up.
A Powwow is held, and a truce is set between the Daisy Town inhabitants and the Indians. The two sides reconvene at Daisy Town's main saloon, where the Mayor thanks Lucky Luke, and speaks highly of the bright future for the town.
Just then, a prospector rushes into the saloon, declaring that gold has been found in the hills. This almost everyone in town scurrying off towards the hills to seek their fortune, abandoning the town.
Luke is the last one left, calmly walking out of the saloon and getting aboard Jolly Jumper. Around them, the town has already taken on the look of a ghost town. As they pass by the town's sign, Luke plucks the solitary daisy from the ground and places it in Jolly Jumper's mane. As they ride off into the sunset, the sign proclaiming 'Daisy Town' falls over, signaling the end for the small town.