In the last episode Jack finds a cove type place with fresh water while he was chasing his white rabbit. Today, he gathers a small group of people to go and get water for the whole camp. The time spent gathering water he realizes that the place could be survivable for the camp. Back at camp the asian man runs and tackles Michael into the water and starts to punch him and try to drown him. Sayid and Sawyer rush to Michael's aid and capture the asian man. They then handcuff the man. Sayid tries to question Michael by asking him why the man was trying to kill him. Jack and Kate bring the water back down to the camp while Locke and Charlie stay to clean up. Locke is suspicious of Charlie, and secretly tries to find out what Charlie is hiding.
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Locke discovers that Charlie is a drug addict. Locke finds his guitar which is on a cliff side and decides to make Charlie a deal. He confronts him and tells him if he gives up the drugs he will find his guitar. Charlie agrees and instantly becomes happy with his long lost guitar. Locke does realize that Charlie will start to feel the drug withdrawal. Back at camp Jack starts to convince some people to move into the cove area where they can easily survive. The only thing blocking people from moving is if a boat passes by they will still be on that island.
The asian woman walks to Michael and speaks to him in english. The woman tells him that her husband tried to kill him because Michael was wearing her father's watch which is precious to her husband and to have honor he must protect that watch. She also tells him that she needs help, and that her husband has a temper (Her name is Sun). Michael talks to the asian man and tells him to stay away from him and his son (I'm not sure if the man understood Michael). Michael also tosses the watch at him.
Jack and the people who want to move in the cove finish packing and make their way up toward the mountain, and toward their new home.