Phil Jeffs faces the hangman's noose for a scandalous crime that has all of Razorhurst guessing.

The rivalry between Kate Leigh and Phil Jeffs reaches boiling point, leading to a legendary street battle between their rival gangs. Jeffs is determined to put Kate and Tilly out of business by poisoning their cocaine supply and slashing their workers. The police create Australia's first drug squad to fight the deadly cocaine epidemic, and Kate starts an affair with a sexy young gangster, angering her faithful lieutenant Wally.