In the next scene, the young monk is introduced to the rich and mysterious Yin family. The monk explains that his family has become a legend in China, but that he himself has fallen on bad times, but he is still a better person than his father. He tells the monk that he is different from his parents, who made a mistake, and that he has no chance to inherit his family's wealth. He explains that the white snake has been transformed into a human because it was mistakenly imprisoned in the pagoda. He says that the pagoda must fall and the lake must dry up before the white serpent can come out.