Martinez did in fact rescue The Governor and Megan from the walker pit. They agree to take in his group, under two conditions. Martinez is in charge, and no dead weight. Contribute or be cast out.
The Governor goes on a supply run with Martinez, Mitch, and Pete. They keep finding decapitated bodies with signs on them like LIAR, RAPIST, and MURDERER. They come upon a cabin, and The Governor goes in first.
They can hear some noise in one of the back rooms. It is there that they find not only some walkers, but also the heads on the decapitated zombies. After they have taken care of the zombies, Mitch passes around some beers he found. Mitch and Pete tell The Governor about their military backgrounds. Martinez tells The Governor that it’s a good thing he had that girl and women with him. He doesn’t say exactly why, but it’s clear Martinez either would have killed him or left him in the pit.
Lilly sets up a nurse station in the camp, and Martinez cozies up to Lilly, Tara, and The Governor. Tara is also cozying up to a woman named Alicia. Martinez is a bit buzzed and has The Governor join him on top of a trailer to hit some golf balls.
After a bit, Martinez is very drunk, and tells The Governor maybe they can split some of the duties. The Governor thanks him by cracking his skull with a 9 iron. Ok, it probably wasn’t a 9 iron, but it sounded good. The Governor pushes him off the trailer, and drags him into the walker pit, the whole time repeating, “I don’t want it.” I guess The Governor doesn’t want to be a monster again or something.
In the morning, Mitch tells the group that Martinez got drunk and fell into the pit. All they found were some remains. Pete offers to take over the group, with some resistance from Tara. As if she’s in any place to say anything. Mitch calls her a bitch, and she goes after him until Pete restores order. Pete convinces them all that they need each other to survive.
Pete, The Governor, and Mitch go out on a supply run, and come across another occupied camp. Mitch wants to kill or rob them for their supplies, but Pete says no. When they come by the camp on their way back, someone else has already killed them and taken the supplies. Mitch shoots one of the injured men who is still alive.
The Governor doesn’t trust the current management team, and takes Lilly, Meghan, Tara, and Alicia away in the middle of the night. But they come across a muddy puddle full of walkers, and must return to the camp.
The Governor wants to speak to Pete, and Pete presumes it is to discuss punishing Mitch for killing that man. Instead, The Governor kills Pete. He goes to see Mitch, and tells Mitch he killed Pete because he was weak. The Governor is running things now, and if Mitch does as he says, he won’t have to worry anymore. There is no right or wrong thing, just the only thing. Mitch asks what they will tell the others about Pete, and he says they’ll just say he died protecting them on a supply run. In actuality, The Governor rolled Pete into the river.
The camp is working on fortifying their perimeter, and setting up stockpiles of ammo and supplies. Lilly tells The Governor that this is their home now. While they are talking, a walker goes after Meghan, trapping her under a trailer. Tara is trying to pull the zombie away as The Governor shoots the walker.
The Governor takes off and is watching the water from the dock. We see the zombified Pete trying to surface, though he is weighed down by chains and cement. As he is walking through the woods, he sees Michonne and Herschel as they are burning zombies. As I heard on something somewhere, “There’s treachery afoot.”