It's a new term and Waterloo Road is under threat, as the council wants to merge it with Havelock High. But Vaughan is ready for battle, and his plan involves volatile new pupils Kenzie and Scott. Now all he's got to do is let the staff in on his radical strategy.

Vaughan's newly-qualified teachers Marco and Guy start work, but it's not long before Guy recognises Carrie Norton and the school comes down heavily on their relationship. Christine's plan to keep Audrey's smothering at bay backfires on her, while Sonya is forced to reveal a very private secret.