Evolution of an electrostatic plasma wave driven by low-density ultra-relativistic electron beam in dense inhomogeneous plasma is considered. In particular, the wavelength variation as observed at fixed locations in the plasma is analyzed in terms of the wave characteristics. It is shown that for negative density gradient, the observed local wavelength decreases monotonically with time, but for positive density gradient, it first increases and then decreases with time, accompanied by reversal of the wave phase. However, in both cases the local wavelength eventually decreases with time since Landau damping becomes significant as the wavelength becomes of the order of the plasma Debye length. Results from particle-in-cell simulations agree well with theoretical analyses of the wavelength variation.