Five college students travel to a small Texas town to research the Legend of Blood Lake, an obscure folktale forged by events surrounding the massacre of a Comanche village by a company of Texas Rangers in the 1800s. Reports of people having disappeared from the area have mounted over the years, giving rise to incredible tales of evil spirits who protect a sacred cache of gold that lies beneath the surface of the lake. A crusty old bartender cautions the students to mind their own business and go back home, but they are approached by a beautiful young woman who offers to take them to the lake. Its not long before they begin to realize that the legend is much more than local folklore when they come face-to-face with their own pasts and the legend itself.