Wealthy coat-hanger mogul Dave Whiteman (Richard Dreyfuss) lives in luxury with his wife Barbara (Bette Midler) in Beverly Hills. But his cosy existence is turned upside-down when he saves tramp Jerry Baskin (Nick Nolte) from drowning in his swimming pool. Baskin moves in and soon his alternative views start to effect everyone around him, causing them all to question the validity of their chosen lifestyles.