With Katrina having absconded with the savings of the entire town, Bob Jelly is contemplating suicide. But when Katrina is caught red-handed through the combined efforts of Max and Sergeant Grey, the town's fortunes take a turn for the better, and then the worse, and then the better again. During this roller-coaster, Bob and Sergeant Grey each face their own moral dilemmas.

Jack's fraud trial is finally being heard, and the kids convince Laura to support him in person. Back in the city, unexpected sparks fly between the exes, just as Laura is offered a spanking new job. Laura must decide if she wants to return to the "real world" or stay by the sea.

Jules returns to Pearl Bay showing her true colors, as Kevin returns home from his honeymoon only to find himself in a legal battle over ownership of the caravan park. While Laura, Miranda, and Bob join forces to save their town, Miranda is forced to confront her true feelings for Findlay.

Bob feels the heat when his acquaintance from prison is released early and comes to town to check on his investment. When Stella claims to have spotted the rare rainbow seahorse nearby, Miranda sees a way to stop Findlay's company from mining a local beach.

Kevin is having a recurring nightmare in which a hooded figure accuses him of having failed the truth. Is it a premonition-or the effects of Phrani's cooking? Meanwhile, Pearl Bay is turning to dust as a voracious insect devours wooden structures all over town. In working on a school project, Miranda uncovers a curious gap in Meredith's memory that points to a guilty secret in Pearl Bay's past.

While Laura's on a one-way track to the altar, Max announces he has accepted a lucrative job with an international newspaper and will be leaving Pearl Bay-and Laura-behind. Of all things, a trivia night question causes Max to reassess his life. Meanwhile, Bob launches his mayoral campaign with Morton's backing.

As the news of Carmen and Max's affair infiltrates the town, Carmen heads to the city, feigning excitement about a job interview. Max feels guilty, but Carmen insists she is not leaving Pearl Bay because of him. When the new local administrator forms plans to build a tunnel between Pearl Bay and Port Deakin, Meredith and Bob form an unlikely alliance and call for a complete Port Deakin boycott.

Laura and Dan's relationship would be perfect-if it wasn't for everything else in Laura's life. As Rupert schemes to get his parents back together, Dan tempts Laura with talk of travel to exotic places, and she struggles to find a way to fit his dream into her reality. Meanwhile, tax prosecutor Katrina Fennessy arrives in town and senses an opportunity for Pearl Bay, with the help of Bob Jelly.

Jealousy runs rife in Pearl Bay as the dreaded CFA Dance approaches. Taking advantage of this year's Latin theme, seductive flamenco instructor Francesca spins into town-instantly scoring the attention of the menfolk, including Max. While Bob's real estate license remains suspended, Heather reluctantly puts hers to use.

When Laura's mother, June, arrives in town, her suspiciously sudden appearance is more of an inconvenience than a pleasure for Laura, who is too caught up in her own life to sense her mother's sadness. Max plays along with Bob's new tourist draw-Ye Olde Pearl Bay-for his own entertainment, but he comes to Bob's rescue in an unexpected way.