Donald Duck Clarence Nash has recently moved into a new house in a quiet neighborhood. He quickly notices his neighbor Pete Billy Bletcher stepping outside to dump garbage into Donald’s yard, and Pete’s dog Muncey bursts through the fence to dig up Donald’s garden. Pete introduces himself with a friendly grin, and immediately exploits Donald’s warmth to help himself to Donald’s food and serving ware. When Pete returns, his seemingly kind offer of a bowl of homemade green porridge turns out to be dog food.
With spring in the air, the yards become the focal point of the block. Donald wheels out a wheelbarrow and a set of tools, but Pete swoops in and forcibly takes each item as Donald reaches for it, grabbing forks, trowels, sprayers, pruners, and clippers with a sly smile. A sudden thunderstorm drives them both indoors, but Pete reminds Donald that all of those tools are sitting out in what has become a mud puddle, leaving Donald to sprint out into the rain to rescue them while Pete stays warm and dry inside.
On another spring day, Pete trims his tree, and the wind scatters leaves and branches onto Donald’s lawn. Pete taunts Donald with a quick quip: “Better rake ’em up quick! They’ll ruin your lawn!” and watches as Donald scrambles to gather the debris, loading it into his incinerator. Seeing Pete’s laundry on a nearby line gives Donald a chance for mischief, so he lights up the leaves and directs the smoke toward the laundry, taunting Pete as the feud intensifies. What begins as petty tricks quickly escalates into a full-scale war.
The conflict attracts crowds and even local TV coverage. Pete starts by removing a large protruding limb from Donald’s tree; Donald answers by snipping away at Pete’s long johns that extend over the property line. The battles grow more aggressive and destructive, until the two end up on a ladder balanced on the fence, looking like a dangerous see-saw as the crowd laughs. Pete lifts the ladder, but Donald retaliates with a lawn mower charged by gravity, injuring Pete’s back.
Between rounds, both neighbors retreat to their respective corners, receiving pep talks from supporters who spur them on. A neighbor suggests a spite fence as a prudent tactical move. When the bell rings for the next round, the two begin building taller fences along the boundary, the crowd cheering as the walls rise higher and higher. Muncey digs under the foundations and starts punching holes through the bottoms of the fences, inspiring more cheers from the neighborhood dogs. The structural damage is too much, and the towering fences crumble, sending debris and the crowd scattering.
In the final scene, Pete is shown injured and walking away with his house in tow. Donald is declared the winner, but the camera pulls back to reveal him moving away as well, leaving the audience with the sense that the war between neighbors ends in a draw rather than a clear victory.