Captain McGee, star of the company’s acquired children’s show is found out to be a wife swapper with his girlfriend while a German executive is given the cold shoulder as Pyramid employees try to sell him Beaver Creek as being “young and hip”.

Alan decides Beaver Creek sucks after watching one of the episodes against the advice of everyone and fires the entire staff. He puts Victor in charge of directing, Veronica in charge of the budget, and Richard in charge of making sure the program is watchable, and he runs off to play golf, badly.

Fed Up with being ignored Veronica lets the entire staff have the day off and takes Wanda and Lisa out to lunch leaving the men alone to panic over the question to the German taxes. The trio tear the office apart looking for the files. After they've emptied all the desks and filing cabinets searching for the tax returns they find a joint and a few bottles of booze and decide to have an impromptu bankruptcy party. Veronica's lunch runs a little late.... all the way to last call. The next day Veronica returns to work and reports the taxes were paid the week before. To make up for his years of mistreatment Alan gives her a 20% raise and 4 weeks paid vacation.

Pyramid wants to make a new Beaver Creek movie using the original star, Mandy who's not thrilled with the prospect of returning since she accuses Pyramid of stealing her chidlhood. Alan has a new theory on successful television series. Using his new flowchart that links Baywatch, Flipper, Beach Combers, and Gilligan's Island he creates a program about ‘water' where water is the star. Alan uses a new computer program to write a script for his new movie Water. Richard smuggles a copy of the script to Mandy who is desperate to hurt Alan with the understanding that it's a terrible script, but something happens. She loves it, and agrees to sign on for the next two Beaver Creek movies if she gets the lead in Water.

The network has three words to describe the 150th episode of Beaver Creek. ""I Hate It!"" After taking a major advance to produce a special Beaver Creek the team has to scramble to come up with a new way to make the network happy, and what better way to do it, but to do it Live. They dig up an old script written by Siobahan that takes place in just one room. All hell breaks loose and everything that can go wrong... does go wrong. All the while a crazy woman (Miss Barnes) from a watchdog group is protesting the violence of The Sword Of Damacles. She bursts on to the set and tries to address the camera but is punched out by Siobahan seconds before the show gets cut off the air.

An aging US star seeking a comeback is set to appear on Beaver Creek. She arrives late to set, complaining of the baggage handler strike going on at the air port. She begins to push her ultra conservative agenda, arguing everything from the Trickle Down Theory with Blind Jimmy to the futility of gun locks with Richard. Alan returns from Japan, sans Victor who has been taken by several angry baggage handlers and beaten. Alan announces he has seen a commercial in Japan starring Blind Jimmy. Worried that their funding will be cut if the network discovers the ads Alan decides to cash in on the idea, and makes the entire cast do commrecials for Japan in secret.

Pyramid's CFO dies and Richard helps to replace him with his old stock broker from Ohm Dot Com. He hopes that he will be able to control him, but things get out of hand when he begins dating Veronica and questioning Richard's bizzare spending on Beaver Creek. Meanwhile a magazine keeps calling to do an interview with Alan. He thinks its a feature, but it later turns out to be a joke, focussing on all of the comedians Alan turned down over the years, including: Mike Myers, Jim Carey, and Michael J. Fox.

Veronica's friend from when she was in high school comes to visit. Back then she was a poor nobody, but now she comes complete with fur coats and a snobby euro-accent as well as a shady past where she may have killed her two former rich husbands, and now she's on the lookout for a third. Is Alan next?

Richard has to get a web address for Pyramid to get online, but it looks like the Plumbing King of Pensylvania has bought up all the good addresses (like www.pyramid-tv.com), and he's asking way too much. Richard manages to convince Veronica's friend to date the Plumbing King, and in return he gives the web addresses to Richard, who sells them to Alan through a numbered holding company he owns. When Alan suspects Richard of this he tries to call the Plumbing King to find out who he gave the address to, but he had died tragically days earler. Alan is overjoyed, believing he now has a shot with her.

Beaver Creek's new Christmas episode is re-scheduled to February forcing a quick re-write by Richard & Veronica to make it about Valentines Day they do so by ""find & replacing"" Christmas with Valentines to avoid any actual work. When Network Brian finds out he storms in on Alan and demands they change the script again. Meanwhile on set, an aging star is trying to get jiggy with Blind Jimmy and Victor. When Network Brian interupts her attempts to seduce Blind Jimmy, the pair begin making out. Richard interrupts them and after they leave he drops a ciggerette into the hay and burns down the barn. Beaver Creek's Valentines day episode now has a climactic finish with the burning of a barn, and Network Brian is silenced when Richard tells him the fire department thought the fire was caused by two kids fooling around.

Beaver Creek reaches a point in its run whereas it can only go downhill from there. Victor, Richard and Veronica remember the point in time that their lives ""Jumped the Shark"".