The film is about a town populated entirely by midgets. In many respects it 's just like any other town where people go about their business and family lives. No one is above three feet eleven inches, except for the Mayor, who was four foot one. The town is a little like the towns in American westerns, with a saloon, undertaker, general store, chapel and jail. The population ride around on Shetland ponies. The town also has something mediaeval about it; many of the citizens were engaged in small scale agricultural ventures. In the town all property is held in common. Just when you're getting used to everyone being diminutive a stranger rides into town on a shire horse. He's about five foot nine and he's looking for work. Everyone in the town comes out to greet the curious looking stranger and the Mayor says he can stay in the town if he observes the local laws.
It is through the eyes of the stranger that our perception of the community shifts. The appearance of egalitarianism is only superficial and the mayor is running something akin to a police state . The Mayor, with the authority of the town council, has stores of food and confiscates any property of value. He maintains order through a police force who ride souped up mopeds and dress like hells angels. They occupy quarters in the town hall and only appear when a citizen gets out of hand, refusing to hand over there tithe or expressing a desire to leave. I was expecting the stranger to take on the usual role of strangers in westerns and to lift the yoke of oppression from the shoulders of the towns people but instead we see him fall in love and marry, we see the christening of his children and we see his household prosper as much as any household could. The stranger also undergoes a curious and gradual transformation and becomes shorter. The film ends with a ceremony where all the citizens are gathered in the towns centre as the stranger mounts a stage and steps in front of a large measuring stick.
The priest announces that the stranger is three feet eleven inches tall. The towns people cheer and the towns band start to play a marching tune. The camera zooms slowly into the totally transformed face of the stranger, now displaying the look of supine aquesence. Tears begin to well up in his eyes as the picture freezes and the credits roll.