The third installment of the series focuses on the petty street crimes and the organization of Barksdale. It also explores the political scenario and how it influences the crime scene in the city. Someone from the political fraternity is trying to legalize smuggling of drugs which in turn has also led to the increase of prostitution in a metropolis named Hamsterdam. As a result the crime rates decreases in European cities like Amsterdam which also results in the well-being of it's citizens. Meanwhile, in Baltimore, Barksdale organization's towers and other such places have been destroyed.
The criminals associated it have been forced to move out of their hiding places and come back onto the streets. However, a man named Stringer Bell continues to improve it's dilapidated condition by making partnerships with other youth like him and then distributing the profits among themselves. Marlo Stanfield is the head of a new gang which is becoming powerful by the minute. Stringer Bell tries to strike a deal with him. But Marlo Stanfield says no to him. Avon decides to go to war with Marlo Stanfield. Stringer Bell tries to stop him, but Avon doesn't listens and as a result both the gangs starts to kill each other's members.
Barksdale organization faces a threat in the form of Omar Little who tries to rob it at every possible opportunity. Her boyfriend and two other women help her in her task. This internal war between the criminals forces the Crime Unit to interfere and take matters in their own hand. Tommy Carcetti wants to elect the mayoral elections. With the help of a colleague, he plans the downfall of the current mayor. Major Howard "Bunny" Colvin is fast approaching his retirement. This predicament makes him introspect and his decides to work for the welfare of the people. He begins to secretly monitor locations which are susceptible to crime with the help of few men.
This led to reduced crime rates. However, eventually the media and the central government comes to know about this and thus puts an end to it. Colvin is forced to retire. Tommy Carcetti uses this situation to his advantage, and makes a speech to the citizens of the Baltimore. Avon and Dennis "Cutty" Wise are released from the prison. After release, Dennis decide to lead a clean life. He is tempted to return to his notorious days, but eventually he overcomes it and then seeks Avon's help to provide him some money to set a gym for boxers.
The Crime Branch gets a tip of that Stringer is trying to become a legalized businessman using his contacts. Stringer fears that Avon will resume his fight against Marlo and hence he gives the police information about the location where Avon keeps his arms. However, Avon and Brother Mouzone betray Stringer and with the help of Omar they decide to kill him. In the end, Colvin reveals Avon's hideout to the officials and they manage to arrest him.
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