Green Grass, Running Water does not consist of a standard, linear narrative. Instead, it alternates between several major plot lines that finally intersect at the end of the novel. The first plot features an unnamed, first-person narrator who interacts with a variety of figures from both Christian and Native American traditions. At the beginning of the novel, the narrator is interacting with Coyote, a traditional North American trickster figure. Coyote has a dream, which then takes on an anthropomorphic shape and begins calling itself God.
The second plot involves four Native American elders named Lone Ranger, Ishmael, Robinson Crusoe, and Hawkeye. The elders have been living in a mental institution run by Dr. Joseph Hovaugh. They have escaped a number of times, and do so again at the start of the novel. Dr. Hovaugh is convinced that the previous escapes are connected to natural disasters that occurred at similar times. After they escape, the police are called in to investigate and a police detective named Sergeant Cereno questions a woman named Babo Jones, who works at the hospital, about their disappearance. Sergeant Cereno also questions Dr. Hovaugh.
Meanwhile, the elders are making their way towards Canada and tell different versions of creation stories, which God, Coyote, and the narrator are able to witness and interact with. The first creation story is told by the Lone Ranger, and involves two individuals named Ahdamn and First Woman. God decides to intervene, and enters the garden where they are living. His presence disrupts life there, and Ahdamn and First Woman leave the garden, followed by the narrator and Coyote. Ahdamn and First Woman quickly get into trouble when a group of rangers accuse them of violence. Coyote becomes confused when First Woman is given the name of the Lone Ranger, and joined by three other figures, so the narrator begins the story again.
The second version of the creation story is told from Ishmael’s perspective and features Changing Woman. Changing Woman falls out of the sky and encounters Noah, who objectifies her and treats her badly. She escapes to an island and is helped by a whale. She eventually merges into the figure of Ishmael, and the narrator begins a third story.
Robinson Crusoe tells a story featuring Thought Woman, who drifts along a river. When she washes ashore, she has to resist being forcefully impregnated. Thought Woman eventually merges into the figure of Robinson Crusoe and the narrator moves to the fourth and final creation story.
In this story, told by Hawkeye, there is the figure of Old Woman. She encounters an individual named Young Man Who Walks on Water, who gains a following because of his miraculous ability.
Meanwhile, the novel also presents realistic plot lines involving Aboriginal characters living in present-day Canada. One aspect of this plot is the love triangle between Alberta Frank, Lionel Red Dog, and Charlie Looking Bear. Alberta is a college professor living in Calgary who hopes to one day have a child, but has no desire to be married. Her first marriage was unsuccessful and emotionally traumatic, and she is also scarred by the unhappiness she witnessed in her parent’s marriage. In order to prevent either relationship from becoming too serious, she remains romantically involved with both Lionel and Charlie, who are cousins. Lionel once had a promising future but was mistakenly charged with violence and political radicalism as a young man, and his criminal record limited his options. He now works as an electronics salesman in the town of Blossom, but is considering returning to school. Charlie is a lawyer who lives in Edmonton, and he is the son of a film actor known for playing Indian roles in Westerns. He is jealous of Alberta’s relationship with Lionel.
Another plot line focuses on Lionel’s sister Latisha, who runs a restaurant called the Dead Dog Café. She is divorced and the mother of three young children. An additional series of events focus on Eli Stands Alone, who is Lionel’s uncle. Eli left the reservation as a young man to move to Toronto and became a professor of literature. He also pursued a relationship with a white woman named Karen, who eventually dies in a car accident. He only returns to the reservation after his mother’s death, when he learns that her house is going to be torn down in order to allow for the construction of a dam. Eli launches a lawsuit, and although he cannot stop the dam from being constructed, it has not yet been made operational.
All of these characters plan to attend the annual Blackfoot Sun Dance ceremony held on the reservation. As Lionel is driving towards the Indian reservation with his aunt Norma, he sees the four Indian elders standing by the side of the road and stops to pick them up. The elders inform him they are in the process of fixing the world. Lionel and Norma drop the elders off at a hotel in Blossom. Back at the asylum, Dr. Hovaugh is alerted to the presence of the elders. Accompanied by Babo, he heads in the direction of Canada. Meanwhile, the cars belonging to the other characters have started to vanish. Eli attempts to offer guidance to Lionel, while Alberta shares her troubles with Latisha. She is also beginning to show symptoms of pregnancy.
Dr. Hovaugh is frantically trying to track down the elders before they cause a disaster. However, in his excitement at the sharing of stories, Coyote’s singing and dancing triggers an earthquake, and the dam bursts, with water flooding everywhere. Eli is killed in the flood. The story picks up a month later. Charlie has lost his job and decides to go to Los Angeles to visit his father. Alberta is pregnant, and uncertain of her plans but considering beginning a more serious relationship with Lionel. Dr. Hovaugh is back at the asylum and learns that the Indians have returned. The Indians tell Babo that they managed to fix part of the world. The novel ends with the narrator and Coyote continuing to tell stories about the creation of the world.
