Wally Gator is visited by a lawyer named Mr. Beagle who informs him that his uncle passed away and left him an island called Grand Goober Island. Mr. Twiddles gives him a three day pass from the zoo so Wally can go visit his island.
Wally arrives on a nearby shore and is about to go over on a boat and he sees smoke rising from the island. He goes to investigate and finds a little bearded man sleeping on the island. Wally wakes him up and gets shot at. Wally shows the man named Swampy Water the deed and Swampy tells him that the fine print says that if anything happens to Wally then Swampy gets the island.
Swampy tries to get rid of Wally by shooting at him, blasting him with a cannon, and then he uses a keg of gun powder and blows Wally up in the air. Wally decides that the island isn't worth the hassle and heads back to the zoo.
Swampy is overjoyed that he chased Wally off until he notices the island sinking because of the hole in the ground caused by the dynamite.