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Sandy's moral compass becomes imperiled when a past love interest makes her way back into his life, and he takes over Caleb's old position as head of The Newport Group, pursuing a project to establish more low-income housing in Newport.
Ryan also attempts to resolve his individual relationships with his mother, and with his childhood friend Theresa Diaz.
Similarly, Kirsten confronts her alcohol addiction and eventually leaves rehab, only to encounter more problems when she begins business with a con artist.
The other characters look towards college, with Seth and Summer competing for a spot at Brown University.
Julie Cooper-Nichol, once one of the richest women in all of Newport, struggles to put food on the table for her daughters.
Marissa's life begins to spiral out of control, as she struggles with alcohol and drug abuse, as well as dealing with the loss of her close friend Johnny.
With the help of Julie, both she and Ryan are able to track Volchok down in Mexico, and turn him into federal officials.
Although coming from very different backgrounds, Ryan soon discovers that he deals with similar issues to his new peers, such as self-identity conflict and familial alienation.
The relationship between Ryan and Marissa flourishes when he supports her through her parents' divorce.
Firstly, Marissa is expelled from the Harbor School.
The Cooper family, left with little money, is forced to move into a trailer park.
A number of recurring characters are introduced, such as D.