Set in a Northern California fishing town called Antonio Bay, the town is about to celebrate its centennial on April 21, 1980, and are having a celebration led by Kathy Williams (Janet Leigh). However, the centennial is also marked by ominous events, including the appearance of a glowing fog that spreads over land and sea. In the first scene, on the night before the town's celebration, a group of children seated around a campfire on a beach, are entertained by a ghost story, told by 'old' Mr. Machen (John Houseman) (exactly at the stroke of midnight), the resident elderly fisherman. The story being told is indicative of the history of the town's formation, which is being discovered at that exact moment by the local priest, Father Malone (Hal Holbrook), when he finds the diary of his grandfather (who was also the town's priest).
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