Introducing sensible Steve, 15, and tearaway Tamara Henderson, 13, two city kids who live with their mother Alice in Melbourne. A hard up family who find more financial problems when Tam crashes into a fruit stall while racing her brother home on her roller skates, he is on a bus. Alice considers selling up and moving to Haven Bay to stay with her brother Mike who is the local policeman. Meanwhile a ruthless business man Ashley Wheeler also from Haven Bay offers to buy Henderson Point from them, but as it is sentimental to her Alice refuses, but does agree to meet up with him. Also introducing the Haven Bay kids Cowboy,Char,Brains and Ted who's father is also in a battle with Ashley Wheeler over the Mill closure. On her way to meet Ashley Wheeler Alice saves a little boy from being run over by pushing him out of the way, unfortunately she doesn't get herself out of the way and is killed by a truck.

Hanging on for sheer life, Ted and Steve are helped by Cowboy while Char, Tam and Brains cling onto him. Afterwards Steve and Cowboy call a truce but Ted isn't so easy. Mike has another shock for the kids, he's enrolled them in school, the first day gets off to a great start when Ted and Steve have a fight before registration,and Tam finds her favorite spot on the net ball team taken by the popular Regina Powell. Head teacher Mr Barton decides to make Ted and Steve work together on a science project, eventually Steve makes Ted see they are stuck with each other whether they like it or not, he ends up getting an invite to Teds for tea and gets involved in Johnny Morgan and Bill Chisholm's latest protest against Ashley Wheeler, they have holed up at the Mill and are threatening to destroy it unless Wheeler gives then their jobs back. When Steve agrees to help get food to them despite Mike, Ted finally agrees to be friends.

Mike and Regina's father search frantically for Tam and Regina, they have made it to Melbourne and are having a great time dreaming of staying in fancy hotels and playing video games all night. Problems start when Regina's purse is stolen with both her's and Tam's money in, knowing they can't tell the police because they'd be sent straight home they are forced to spend the night in a bus station, in desperation they turn to Tam's best friend Claire, but she isn't interested and has new friends now. The local kids question Steve about Tam and Regina running away, wishing they had gone with them to the exciting city. When a local city kid Terry offers to help Tam and Regina, Tam is suspicious of his motives, but Regina talks her into accepting lunch, he introduces them to his friend Stan who tells them they could be models and invites them to a party with rock stars, Tam is unsure but Regina is desperate to go.

While up at the "Point" Char, Ted, Cowboy, Tam and Brains spot Steve and Andy in the sea. Andy tells Steve he can't take both their weight in the water and he must tread water himself. Cowboy and Ted swim out to Steve and Andy, while Char radio's through to her Dad's boat, Mike is with Char's dad also searching. When Cowboy saves Steve, Tam develops a crush on him. Mike has a go at Steve and Steve tells him he didn't want to live with him any way. Wheeler makes new plans to get hold of "Henderson's Point" by enlisting the help of his spoilt daughter Glynis, he promises to buy her a horse if she can romance Mike Henderson into getting the kids to sell the "Point" Char asks Cowboy to teach Tam how to ride a horse, Tam is thrilled. Steve is given a job from Cowboy's dad. Glynis puts her plan into action by asking Mike to the dance. Rain forest protesters rent Cowboys land infuriating Ted.

Mr. Barton helps Steve look into the agricultural prints, Steve pretends he has litter duty so Ted and the others don't know and Mr Barton is impressed when he see's Steve picking up rubbish when he doesn't need to. A drover winding up Cowboy falls and breaks his leg, this leads to Cowboy being offered a job. Mike offers to help find Tam and Steve's dad and brings a print out home of thousands of Walter Mullins from the station. Char is upset that Cowboy has left, but he is not having an easy time of it when he finds he will be riding a motorbike instead of his horse. Rutt Jones spy's on Steve and steals his letter to the museum from the post office. Steve tells Tam about the cave, when she becomes suspicious of him and threatens to ask him questions at the dinner table in front of Mike. Mike finally asks Pat to dinner. Tam bumps into a drunk and is shocked to find it is Cowboy with the other drovers.