S02E10 The New Atlantis

The Dark Hand releases Bai Tsa, the Water Demon. She seeks out her old kingdom – Atlantis, but when she finds it in ruins, she chooses to drown San Francisco as a new home with some information from Finn. Meanwhile, Valmont manages to render Shendu unconscious and seeks help from the Chans to exorcise him from his body. However as Uncle is preoccupied with finding a spell to stop the flood, the Chans with Valmont have to face Bai Tsa without him. In the end the Uncle succeeds in stopping the flood but the seal that was placed on Valmont’s head is wiped away by the water allowing Shendu to regain control and both he and Bai Tsa escape.