Senior Sergeant Lance Rorke dies as the result of an accident during surveillance on a container ship wharf. It was supposed to be a simple police operation, and everyone begins to wonder what they could have done to prevent it.
Jack goes to Port Bligh so that he can interview people about a number of yacht bombings. While there, he is involved in a car accident with a woman who turns out to be a cop - Acting Inspector Julia Goodwin. Like Jack, she is also on police business in the town.
Inspector Julia Goodwin is assigned to the Water Police to investigate the murder of a woman found in Sydney Harbour. She believes that the same person killed the woman and a number of other people in the country, and tries to prove that her theory is correct.
Julia refuses to believe that her profile of the serial killer was incorrect when Helen thinks that she was abducted by two people, not one. When Jack is trying to talk to a suspect in the interview room, Julia does her best to hinder his questions.
The Water Police discover a yacht drifting out at sea with no sign of anyone, except for a number of blood spatters. In their investigation, the detectives find out that one of the yacht's owners is a well-known criminal lawyer.
While at the greyhound track, Jack runs into his estranged father, Tom, who is a bookmaker. He doesn't want anything to do with his father, but when Tom is caught short of money and attacked by a number of angry punters, Jack reluctlantly decides to help.
Jack easily accepts the death of a terminally ill man as suicide but Alex is troubled by what happened. How could a man, as psychically ill as he was, jump to his death?
Helen applies for a job as security manager for an American Bank in Chicago. Thinking that she has the job in the bag, Helen decides to take the opportunity to tell everyone at work what she really thinks of them.
Mick's sister Jess asks him to help her husband Danny overcome a criminal charge that could send him to prison. She doesn't want to have to fend for herself and her child. Desperate to help his sister, Mick turns to his friend from the academy.
Mick is devastated by the murder of Danny, and while trying to find the person responsible for his death, Mick once again turns to his old friend from the academy. But his methods could see the whole case compromised.
The detectives are called in to investigate when yachts in a marina are found to have homophobic graffiti written on them. During the investigation, they find out that one of the yachts belongs to Jeff.
When a man is arrested, and subsequently interviewed by the detectives, he lashes out and creates a hole in the interview room wall. As a result of this, a large amount of money is found to be hidden there.
The Water Police are saddened to hear about the death of their former colleague, Dave McCall. When a wake is held at the Cutter Bar, stories about Dave are told, many of which are not so pleasant.
Songs: John Williamson -- True Blue
A young water-skier dies in Sophie's arms when she is first on the scene. Pretending that she is not affected by the death, Sophie ignores Jack, who wants to discuss what happened.
Alex discovers that someone has left a breakfast tray for two outside her front door one morning. Mick and Jack investigate, as this is not the first time she has received an anonymous gift.
A case of a woman who went missing a number of years ago is reopened when the divers find her wetsuit, which had been weighted down in the water by bricks.
Meanwhile, Gavin and Eva get married.
When a gun explodes, and kills one of the two boys playing with it, the detectives investigate and learn that one of the potential suspects for distributing the guns, is now dead.
An old friend of Alex's wants her to investigate the disappearance of his son in law, Robbo. Harry tells her that he has seen Robbo's ghost and believes that he was murdered. Alex and Mick are a little bewildered when they find the missing man's watch.
A man denies he has been shot when the Nemesis crew find him on a wharf in the harbour, despite the wounds rather obvious appearance. This leaves the detectives rather suspicious about the man, as well as his circle of friends.
Jack and Alex are puzzled by the death of a young man, who was found shot, and hanging from a cliff. Further complications arise when people who knew the man are less than helpful.
The Nemesis crew come across a man who is trying to get to New Zealand on a boat which is not sea-worthy.
When an old pair of police handcuffs are found with a poker machine dumped in the harbour, Mick and Alex investigate. Meanwhile Jeff's 'History of the Sydney Water Police' book is finally published.
Alex and Mick are forced to pursue a man nicknamed 'Leadlegs' through the streets of Sydney. They find that the man has commited a number of robberies, and the murder of at least three security guards.
Jeff contemplates retiring from the police service when he has to take six months sick leave. Jack is then given the job of Acting Chief Inspector, a move which does not impress Helen, as she thought she would be the ideal candidate for the position.
Detective George Newhouse joins the Water Police.
Jeff's decision to retire from his job has consequences in his personal life when Vanessa breaks up with him. Detective Newhouse, now nicknamed 'Gorgeous George', has the women at the Water Police on cloud nine.
When a woman is shot by a sniper, the detectives soon realise that she was mistaken for someone else, and set out to find the person responsible for the shooting.
Eva prepares for the birth of her and Gavin's child, with help from Donna.
Jack learns the responsibilities he has to face as Acting Chief Inspector, and has to accept the consequences of the fallout of a police operation which went horribly wrong. As Gavin fights for his life in hospital, Eva gives birth to a baby girl.