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.

With Kate Leigh in prison, Tilly devises a radical new strategy for taking control of Razorhurst. Meanwhile, Wally faces an uphill battle to protect Kate's business and family interests while she is in prison. A dashing nightclub singer pledges his undying love to Nellie Cameron, with tragic results. And Black Aggie is publicly humiliated in a bar-room brawl with Nellie but finds love from an unlikely source.

Fresh out of prison, Kate Leigh puts a bounty on the heads of Tilly's husband, Big Jim Devine, and her chief henchman, Frank Green, as payback for the murder of Greg Gaffney and the razor attack on Bruce Higgs. In a pre-emptive reprisal Tilly vows to eliminate Kate's muscle before they eliminate hers.

Meanwhile, Kate learns the truth about her son-in-law and is forced to take action that will drive her own daughter away.

Wally becomes an outcast when he gives evidence against Tilly's gunman.

Big Jim is desperate to hide his cowardice from the rest of Razorhurst, while Kate shoots to kill when she is the victim of a home invasion.

Tillys decision to visit London has dire consequences for her business and marriage. With Tilly in London, Kate moves to seize control of the drug trade. Fresh from prison, Guido is determined to become the Al Capone of Australia; and the police suspect they have a traitor in their ranks.

Big Jim faces the noose over the attempted murder of his wife but at the 11th hour Tilly refuses to testify against her husband and the charges are dropped.

The ultra-nationalist New Guard are proving such a danger to his government that Premier Jack Lang guarantees Bill Mackay the new title of NSW Police Commissioner if he can stamp them out.

His wife having left him and taken the kids, Frank throws in his lot with Nellie and the pair try to escape Razorhurst for a new life in Queensland.

Guido Calletti's ambitious plans to seize Kate's cocaine supply are forgotten when he and Frank clash over Nellie yet again.

After a decade of gang warfare, Kate and Tilly have their final showdown. Phil Jeffs returns from exile and vows to drive Kate Leigh out of business. Frank and Guido fight to the death over the love of Nellie Cameron, and Razorhurst celebrates the grand opening of the Sydney Harbour Bridge.