Fred comes home early to surprise Wilma and sets the bag of groceries on the fence and when he picks the bag up, he doesn't notice the package that came out. He goes in and tells Wilma that he will be fixing steaks. He reaches into the bag and finds them missing. Just then he smells Barney cooking steaks next door and assumes that Barney took his steaks and they fight. Wilma finds Fred's steaks and Fred is not in the mood to apologize and leaves in a huff.
Barney comes over later and wants to get his ladder back since Fred is not acting neighborly and when he grabs the ladder from the side of the house, Fred falls down to the ground. Fred is furious and chases Barney. Fred hops the fence and lands in a big hole. He asks Barney what the hole is for and Barney tells him that it's going to be a swimming pool. Fred starts trying to butter Barney up and tells him that they will build the swimming pool so that half is on Barney's property and half is on Fred's property.
Barney gets suckered into doing most of the work and once the pool is full of water, Fred and Barney both take advantage of their new pool. It seems that the idea of sharing the pool is not working out so well for Fred and Barney. Each of them has their groups that come over to use the pool and this starts a conflict between the two of them. The wives make the two men make up forcibly and later Fred overhears Wilma talking to Betty about a party that Barney will be throwing that evening. Fred gets an idea and calls a buddy of his and tells him to come over dressed as a policeman and spoil the party.
Later on that evening, Fred is watching to see when his buddy is going to show up when Barney comes over with the gang. It seems that the party is a surprise birthday party for Fred. Fred is overcome and calls Barney his best buddy. The party gets a little too loud and rambunctious and the neighbors call the police.
A policeman shows up at the party and Fred thinks it's his buddy in disguise and dunks him in the pool. Fred finds out that this was not the case and gets put in jail. Barney and Wilma post Fred's bail and Barney takes Fred home. Fred immediately jumps in the pool only to find that Barney had drained it to clean it.