Instead of attending summer school, Hobie decides to go power skiing with two friends, whose recklessness leads to a tragic accident. Eddie's lack of financial resources is revealed when Craig finds him sleeping in one of the lifeguard towers.

While in training for underwater Olympic techniques, Cody and Stephanie find a rare Spanish gold medallion on the ocean floor and Cody becomes obsessed to find more gold, much to C.J.'s chagrin. But things take a turn when a couple of drug smugglers happen by to retrieve a package of cocaine they threw overboard and Cody gets the bends after rescuing Stephanie from the smugglers during a scuffle on the ocean floor.