Stephen is surprised when he realizes Rafe isn't dead. Rafe explains to Stephen that they can't kill each other because it would offset the balance of good and evil. Rafe vows to get revenge on Stephen. Lucy refuses to leave Ian's side. Ian is horrified over the fact that he has become a vampire. Ian's fangs resurface over his and Lucy's close proximity as she tries to ease his discomfort. Elizabeth denies Alison's accusation that she has become a vampire. Alison tells Elizabeth her fear that she and Rafe are brother and sister. Alison accepts Elizabeth's invitation to move in with her. Later, Rafe physically carries Alison out of Elizabeth and Stephen's loft. After pushing Tess into the water, Kevin encounters Jack. Kevin tells Jack he doesn't know where Tess is. Stephen rescues Tess from the water and takes her to the villa.
Stephen takes Tess to the villa in the hope it will cause Livvie to return. Alone, Tess is overwhelmed by memories of Livvie in the villa. Stephen believes that Livvie has returned but realizes he is mistaken when Tess begins to tell him she can sense the goodness inside of him. Stephen is enraged by Tess and causes her to disappear.
Ian leaves the on call room before Kevin finds him and Lucy together. Ian breaks into Stephen's loft in search of the special water. Elizabeth discovers Ian and taunts him when she holds out a bottle of the water. Jack overhears Kevin confess to Lucy that he's afraid he might have killed Tess. Jack attacks Kevin and is about to kill him when Tess suddenly appears on the docks.
Alison tells Rafe she believes his claim that Elizabeth and Stephen are vampires. Alison forms a plan to find out whether or not Stephen set it up to make her and Rafe believe they are siblings and tells Rafe she is going to move in with Elizabeth and Stephen. Rafe reluctantly agrees to Alison's plan.
At the recording studio, Caleb is furious with Joshua for letting the slayer in. When Josh asks where Caleb was, Caleb explains he was at the villa with Tess. Somehow, Livvie got lost inside of Tess. Caleb is NOT happy with this. Josh hands Caleb a knife and says he may as well slit his own throat. Joshua can’t believe that Caleb is still hung up on Livvie when they he has everything else. He reminds Caleb that he has a beautiful wife, power, and fame. Caleb believes that only Livvie matters. She is his other half, his soul mate. Caleb orders the band to return so they can resume practice. They come in bruised and beaten. When Ricky arrives, he is confused over why everyone looks like they’d been out partying all night. He wonders why he wasn’t invited.
Ian begs Elizabeth for some of her special water. She offers to give it him on one condition: That Ian promises to stay away from her. Stephen can never know about her little indiscretion. Ian doesn’t want to agree, but he has no other choice. Elizabeth gives him the water and Ian eagerly guzzles it down. Elizabeth supplies him with a few more bottles, then tells him to hurry and get out. Ian is angry over what she has done to him. Elizabeth tells him she’s sorry, but there’s no turning back. She tries to tell Ian that Stephen gave her a gift. Ian calls it a curse. Ian senses that Elizabeth is trying to hurry him out because she’s frightened. Elizabeth explains that if Stephen finds out what she’s done, he’ll kill them both. Ian refuses to live with his new condition and vows to fight it. He asks for Elizabeth’s help as she is one of the few people close to Stephen. Elizabeth says no way. Ian explains what it will be like to stay young while Alison grows up, then dies. Elizabeth will continue to watch Alison’s children do the same, and their children after that and so on. Elizabeth argues she is not strong enough to fight Stephen. Ian believes they can fight if they do it together. Elizabeth reluctantly agrees, then pushes Ian out the door just as Stephen arrives.
Jack finds Tess on the dock along with Lucy and Kevin. Jack is concerned and asks Tess what happened to her. She smiles at Kevin and says, “I forgive you.” Kevin can’t believe she is forgiving him when she is the one who killed his daughter. Tess quietly tells Kevin that he isn’t angry at her, he is angry at himself for letting Livvie down. Kevin angrily informs Tess that the wrong person died. He would trade Tess’s life for Livvie’s any day. As Jack leads Tess away, Lucy is appalled at the words coming out of Kevin’s mouth. She tearfully says that although he looks like the man she loves, she has no idea who he is anymore.
Lucy tells Kevin that any rational person would have reached out to save Tess from the water. She believes that Kevin may have left the hospital too soon. She wants to take him back. Kevin decides he is NOT going back to the hospital. He accuses Lucy of never liking Livvie in the first place. He believes Lucy must be glad Livvie is gone. Kevin orders Lucy to leave so he can mourn his daughter in peace. Lucy asks if they can work together to find out what happened to Livvie. Kevin doesn’t respond, and refuses to even look at Lucy. Finally, she has no other choice than to walk away.
When Tess and Jack arrive back home, Jack asks her to tell him where she’s been. Tess explains she was at the villa with Caleb. He wanted Livvie to come back, but didn’t hurt Tess. Jack and Tess kiss, then make love in front of the fireplace. Jack fears that Caleb will never leave Tess alone since she looks so much like Livvie. Jack vows to kill Caleb before he ever gets near to Tess again.
At the Hospital, as Ian tries to discover the secret of Caleb's water, a nurse informs Ian that he has a patient whose condition is getting worse. Chris and Karen overhear and Chris tells the nurse to get the patient to the Operating Room quickly for an emergency appendectomy. When Chris and Karen try to determine what is ailing Ian, Ian just claims it must be the flu and asks Karen to take over his shift. After Karen agrees, Chris makes another attempt to get Ian to open up but Ian gives Chris the brush-off and refuses to talk.
Meanwhile, Rafe and Alison meet secretly and go over their plan to plant surveillance cameras at Stephen's apartment when Alison moves in with her mother. Rafe admits that he is getting cold feet about the project but, when Alison insists that this is their only hope of getting to the bottom of Caleb's plans, Rafe reminds Alison to call him immediately if she runs into any kind of trouble. At the same time, Elizabeth visits Stephen at his studio and reminds her new husband that she does NOT want Alison to join the undead just because her daughter will be living with her mother and new bridegroom, and Caleb assures his new bride that he has no such plans for Alison. While Elizabeth wonders about Caleb's eagerness to hustle her out of the studio, Caleb finds he can NOT keep his mind off memories of Livvie.
In the meantime, at Jack's Place, Jack officially asks Tess to marry him - today! Tess tells Jack that she can tell that Jack is afraid of something and Jack admits that he IS worried about Caleb's continued obsession with her. Tess finally agrees with Jack's plans.
Alison arrives at Stephen's apartment and, finding herself alone, she quickly installs the two security cameras. From his hiding place, Rafe confirms that the cameras are working. But Alison is surprised when Elizabeth suddenly returns sooner than expected. When Elizabeth hugs Alison and then tears up, Alison asks if her mother is happy with her recent marriage to Stephen. As Rafe listens in, he fears that Alison will spill everything she knows to Elizabeth, but Alison quickly covers by telling Elizabeth that Ali is worried about her mother becoming so dependent on a man again. Alison soon leaves with the excuse that she needs to pick up some more of her things and then Alison returns to meet again with Rafe.
When the Band arrives to practice at Stephen's Studio, Jamal drops Marissa at the door. When Caleb crabs about Marissa's new lyrics, Ricky grabs the song sheet and shows Caleb how the lyrics could be improved with some minor changes. Stephen apologizes to Marissa for blowing his stack and passes it off as a bad mood on his part.
When Jamal arrives at Jack's place, Jack clues his friend in to the fact that Jack had a fight with Caleb about Tess and Jack has seen Caleb bare his fangs and use his supernatural tricks and Jack now has positive proof that Stephen is really Caleb, just as they all suspected. Jack informs Jamal that Jack and Tess are planning to marry later in the day, but Jack urges Jamal to get Marissa away from the Band as soon as possible, using any pretense necessary. Tess tells Jack she knows what she will wear to be married - but Jack informs his new bride that he has an errand to run and leaves while she changes.
After Stephen dismisses the Band, Reese confides to Cass that she would like to nibble on Ricky, but Cass reminds Reese that she has to wait for Stephen's OK. In the meantime, Jamal fibs to Marissa that her mother called and Marissa needs to return home as soon as possible, and Jamal succeeds in getting Marissa to leave immediately.
As Rafe and Alison watch Stephen's apartment through the surveillance cameras, Ian arrives at Elizabeth's apartment and informs her that Stephen's magic elixir is NOT working for him and that he has quit drinking it. Elizabeth stuns Ian when she suddenly bursts into tears and sobs on Ian's shoulder.
When Tess goes out in to the living room at Jack's Place to show Jack the dress she has chosen to wear for her wedding, she finds the place twinkling in candlelight and strewn with rose petals - but she finds that it is Caleb who is waiting for her in the living room!
After looking for his missing daughter all night, Kevin returns to the Light House and finds Lucy with her bags packed and learns that the girls are staying with Lee and Gail. Lucy again blasts Kevin for his cold-hearted attitude toward Tess's 'accidental' fall into the water. Lucy finally announces that, IF Kevin continues to refuse to return to the Hospital for further treatment, Lucy will leave him. Kevin accuses Lucy of plotting all along to leave with Ian and calls Lucy an unfeeling, spiteful bitch. As they argue, Lucy tearfully grabs her bags and walks out.
At Stephen's apartment, Elizabeth tries to convince Ian to continue drinking Stephen's water but Ian refuses, explaining that he can NOT keep his mind on his work or his son while he is dependent on Stephen's water. Elizabeth finally scratches her wrist and urges Ian to let Elizabeth satisfy Ian's needs.
As Jack hurries through the Park, making wedding plans, he hears a woman scream and discovers Reese, with her foot wedged in the root of a fallen tree. Jack works to free Reese and she then begs him to stay with her until her leg is strong enough for her to stand on it.
In the meantime, Tess is shocked to find Caleb at Jack's Place. Tess tells Caleb that she is marrying Jack that evening and that Caleb must leave. However, Caleb announces that there will be NO wedding that evening and Caleb begs Tess to let him talk to Livvie, but Tess refuses. Caleb tells Tess that, if she would just let Caleb speak to Livvie for a few minutes, Caleb could make them into two separate individuals again and Tess could enjoy her happy life with Jack while Livvie would be free to reunite with Caleb. But Tess insists that Caleb's love is NOT good for Livvie and that Livvie needs to stay hidden so she will be protected from Caleb's way of life. When Tess runs out of the house to get away from Caleb, he suddenly appears in front of her. When Tess runs back inside the house to escape Caleb, Caleb appears in front of her inside the house. Caleb warns Tess that, one day, Olivia's desire to be with Caleb will make Livvie too strong for Tess to continue to keep her hidden. Caleb makes his guitar magically appear and begins to sing a new song for Livvie, called Surrender, calling Livvie to reappear to Caleb.
After Lucy walks out of the Light House, Kevin reassures himself that she will be back eventually because she has ALWAYS come back in the past. But, in the meantime, Kevin tells himself that guilt is too boring for Kevin to mess around with any longer.
At the same time that Elizabeth has almost succeeded in convincing Ian that no one will ever know if they satisfy each other's desires, Lucy arrives at Rafe's loft with her bags. When Lucy sets her bags down, one of them hits Rafe's remote and Lucy suddenly sees Ian and Elizabeth kissing through Rafe's hidden cameras.
As Caleb strums his guitar and sings to Livvie, Tess suddenly touches Caleb's lips.