Ginny Bradshaw has returned to Falcon Beach to reopen her girlhood cottage with her reluctant daughter Paige. Townies Jason and Danny plan to party during Memorial Day weekend, which marks the beginning of summer.
Jason tries to be supportive of Tanya, who is still troubled. When her agent arrives in Falcon Beach, she must choose between Jason and her career. Paige is forced to stay in Falcon Beach, rather than go home to New York, because her father's business is in trouble. Danny finds out that his Dad might lose the arcade, so Paige decides to help them out using her business skills.
Tanya makes a play for Jason. Paige meets a handsome new doctor. Danny and Erin deal with their relationship. Lane pays the price for dealing drugs when then Falcon Beach police use him to get closer to an even bigger drug dealer.
Trevor Bradshaw returns to Falcon Beach to be in a P.R. piece and photography spread with his family. Paige's opinion of the father begins to change when she finds out that he cheated on her mother. Jason enters the regional wakeboarding championships. Tanya gets a job offer at the Sunset. Lane uses his father's jet to help Mook transport drugs. Danny and Erin finally talk things out and decide to pursue a relationship together.
Jason is trying to prepare to compete in Wake Jam, but his boat keeps breaking down. Danny and Paige want to restore the historic dance hall. Ginny reconnects with an old flame. Erin flashes the crowd at a party, upsetting Danny.
It's the Summer Solstice Festival, and love is in the air on Falcon Beach. Paige rents a boat for Jason to use so he can compete, which makes Tanya and Paige's new boyfriend jealous.
Ginny's sister Patsy arrives unexpectedly at the Bradshaw's cottage with her two kids. Paige is stuck watching over her cousins. Danny and Erin book a hotel, but Danny is concerned that Erin is moving too fast with him. Tanya and Jason's relationship becomes strained when Tom is fired for sexual harassment, and Jason doubts Tanya's side of the story. Jason competes in Wake Jam, the regional wakeboarding championship and wins.
Construction on the dance hall begins. Paige turns into a control freak which causes an argument between her and Danny. Luckily, Jason is there to smooth things over.
Erin and Dr. Adrian Keeper are called down to the police station to be questioned about the young child's tragic drowning. A social worker comes to the Bradshaw house to ask some questions about Zoe stealing drugs from the clinic.
Danny is determined to get Erin out of her depression. When she won't go out to see her favorite band he brings her favorite band to her...at the dance hall. Jason's uncle comes to town and may take down the marina. A desperate Tanya begs Jason to take her back.
Paige receives a disturbing visit from Adrian's wife...who wants Adrian back. Jason's wakeboarding career is starting to take off with the sponsors, until an injury may affect his chances for success. Lane's small drug operation gets him in trouble with Mook. Trevor's business problems explode.
After getting beaten, Lane becomes a fugitive in Falcon Beach running from both Mook and the police. Trevor and Ginny stay up all night trying to decide if they should stay married or divorce. Jason helps Paige get Lane's payoff money to Mook, but then Lane gets taken away by the police. Jason kisses Paige, but Paige tells him she just wants to be friends.
Erin discovers that she is pregnant. Jason's sponsor turns out to be a sexy executive who seems to want to be more than just his sponsor, and Paige can't hide her jealousy. Tanya, upset about Lane's arrest and getting fired, does cocaine and gets in a car accident. Trevor sees Ginny having lunch with Alan and accuses her of cheating.
Tanya regrets her decision to testify against Lane, but it is too late. She attempts to run away, taking Lane's stash of drugs, but is caught by Palmer and told that she will be sent to jail.