We come back from ads with the standoff continuing. Rick and Daryl exchange tense nods, and Rick whispers to Carl, "We can do this" before opening the gate to the outer courtyard and starting the long walk down the hill, his hand on the gun in his holster. Meanwhile, Daryl confers with Sasha on the escape plan, because they no longer have the numbers to take on the invaders. Daryl says everyone needs to be ready to run for the bus if things go wrong. And if everyone isn't on board, they'll just have to wait as long as they can.
Down at the fence, Rick opens the talks by telling the Governor to release Hershel and Michonne and he'll stay and talk as long as he wants. A guard tower is burning in the background, apparently having been blown up by the tank. Good thing Glenn wasn't convalescing up there. The Governor insists he needs his hostages because the tank is just to show that he's serious, "not to blast a hole in our new home." Which is his whole point: he gives them until sundown to clear out or the hostages die. "I've got more people, more firepower… we need this prison," the Governor insists. "There it is." Rick says there are kids inside, some of whom are sick and won't survive. Tara looks a little uncomfortable to hear this, but while standing up in the turret of his tank, Mitch looks like he's wondering where the world's tiniest violin. As for the Governor, he points out that he's letting the prison's current residents walk away. "What else is there to talk about?" I don't know, but this show always finds something.
Up behind the inner fence, Daryl gets some weapons from the outdoor laundry tubs where they're stored and hands one to Bob, after confirming that he's good (read: sober). He also issues them to the rest of the group in the inner yard, including the very upset-looking Beth and Maggie, so it looks like Glenn is just going to have to stay thirsty for a while longer.
Back by the creek where the Governor left them, Lily sits on the roof of their camper while Megan continues playing in that patch of red mud. Like laundry isn't a concern at the end of the world. Looking out across the water, Lily catches sight of a figure stumbling down the bank towards them. The walker becomes a wader, just as Megan calls for Lily's help with digging something up. Lily slowly gets to her feet, watching it come. She's too distracted by this to notice that the thing Megan's trying to dig up is a big heavy slab of metal, like a hatch, which is probably better left alone. But then we learned all we need to know about Megan's survival instincts last week when she tried to crawl away from a walker. By the time Lily's satisfies that the walker is being swept downstream -- complete with bubbles when it goes under, as though it was breathing -- Megan has unearthed what turns out to be a sign instead. It's still covered with mud, but the words "Warning Flash Flood Area" are still faintly visible. I don't know if Megan's old enough to read yet, but I do know she's probably missed a lot of school lately. At least it wasn't a hatch leading to a nest of walkers. No, the walker beneath her is actually buried in the red clay, and it's reaching up out of the ground with a dead hand and a dirt-clogged face. Megan screams and Lily finally comes running, but it's got its teeth in her shoulder by the time Lily arrives and pulls the trigger. So what was the Governor saying about how Megan was going to be alive?