The Singer from the Prologue begins the story of the Chalk Circle. It begins in a city ruled by the Governor Georgi Abashwili who is married to Natella and who has a son named Michael. The Governor and his family are going to church, but so many people have arrived to see Michael that the soldiers are forced to shove the common people away from the church doors. Before entering the church, the Governor is greeted by his brother Prince Kazbeki, otherwise known as the Fat Prince. The Fat Prince remarks that Michael already looks like a future Governor.
Michael is attended by two doctors who fuss over the child and are desperate to keep him in good health. Everyone enters the church except for the Governor and a messenger who has just arrived. The messenger has important news for the Governor, but the Governor refuses to hear it, telling the messenger to wait until later.
Grusha Vashnadze, the main character of the first half of the play, enters with a stuffed goose under her arm. She is greeted by Simon Shashava, a soldier who has guard duty outside the church. The two of them flirt for a while and Simon reveals that he often hides behind a bush and watches Grusha washing the linen so he can see her dip her legs in the river. After learning this, Grusha is embarrassed and runs off.
The Fat Prince appears and makes a sign to some Ironshirts (soldiers). They disappear and within minutes the entire city is surrounded. The Governor and his family soon appear coming out of the church. He returns to his home in order to speak with some architects who are to build a new section onto his palace. The architects arrive, but they soon realize that the...