Six months after giving birth, Tina and Bette raise their baby Angelica (Olivia Windbiel) while suffering more marital strife (including Bette losing her job, and shows little interest in finding a new one). The couple appears distant; Bette seeks partner support from an overwhelmed Tina, who starts looking for the protection Bette cannot give her outside the home. Bette's love seems to have less and less effect on Tina, who slowly drifts back to heterosexuality .
After having received six months of medical treatment and having stayed at her mother's house in Skokie, Jenny returns to Los Angeles with working class butch girlfriend Moira (portrayed by Daniela Sea). Jenny has received a reply from an editor in New York and learns that her book might be published by fall. Shane and Carmen are in a committed relationship, which suffers a shake after the reappearance on the scene of Cherie, Shane's ex-girlfriend. The further advance of this relationship leads Carmen to finally face her family and reveal her homosexuality to them.
Kit starts a blooming relationship with Angus (Dallas Roberts), Angelica's hired male nanny. Helena Peabody has just bought a movie studio, and offers Tina the chief development executive position. Helena meets Dylan (Alexandra Hedison), a straight documentary film producer who is about to live her coming out story. Helena's overconfidence and Dylan's uncertainty leads Dylan's boyfriend Danny to use her and plot a lawsuit against Helena for sexual harrasment .
Tina reveals her troubles to Bette. Already in emotional turmoil, Bette decides to go on a spiritual retreat, kicks Tina out of her bedroom and removes her life-partner privileges. During this retreat, Tina (who has already had an online fling and also a frustrated attempt at fulfilling her interest with a male movie producer) meets Henry (Steven Eckholdt), a divorced man. Upon realizing the relationship with Bette has reached a dead end, she gives Henry a chance and explores her renewed interest in him.
Dana is back with Lara, causing Alice to become obsessive. After finally being able to get over with the breakup, Alice has to deal with tragic news. Dana has been diagnosed with aggressive breast cancer, which could lead to her death. Dana becomes emotionally abusive to Lara, who then leaves for a cooking school in Paris. Alice takes up the job as Dana's caregiver. At the same time, Max (formerly Moira) begins the process of becoming a man. This drastic transformation alters Max emotionally, leading him to turn his relationship with Jenny into a possible story of abuse.
As the season advances, stories entwine. As Dana's condition worsens, Alice keeps a bedside vigil. Bette, who is still in Olympia, finally leaves her silent retreat without any enlightenment and ends up receiving wanted wisdom in the place she would least expect. Back to Los Angeles, Jenny's ex-husband Tim makes a reappearance on the scene, re-married and expecting a child. Jenny and Tim spend some time together with their respective couples, but the dark story of their past ends up ruining their meeting. Lara tries to reach for Dana, but apparently she has taken too long. Carmen reveals an infidelity to Shane; Dylan and Helena settle their lawsuit and break up out of court; Tina delegates even more fatherly duties on Henry; and nobody gets to say goodbye to Dana, who ultimately loses her cancer battle alone while Alice is out taking a walk.
A lot of emotions are confronted upon Dana's funeral. Her parents, who stil try to ignore Dana's sexual orientation, prepare a ceremony in which her friends are secluded. Alice, who is upset about this setup, steals some of Dana's ashes decides to arrange a funeral with her friends. They spread the ashes on a waterfall at a tennis camp Dana loved, and where she and Alice first met during an interview. At the same time, Tina and Henry continue settling in, and Bette decides to visit a gay civil rights lawyer in order to obtain the full custody of Angelica. Shane, on the other hand, is severely affected by the loss of her friend, and decides to propose marriage to Carmen. Carmen accepts to marry Shane at the waterfall. Max gets a job offer at a technology center where he had been rejected as Moira, which makes Jenny angry and leads them to another dispute. Dylan returns Helena's check and the footage of the sexual harrasment setup; and Lara comes back from Paris, only to find out she is too late. In the midst of the loss she is suffering, Lara reaches out for Alice and they share a emotional moment that evolves into a secret relationship.
Six weeks later, the group travels to Canada under Helena's expense to celebrate Shane's wedding. Carmen's family overcomes prejudice and decide to attend. Kit discovers she is pregnant and gives Angus the news.
Just before the wedding ceremony took place, Shane has second thoughts and decides to abandon. This is motivated by her meeting with her father Gabriel (Eric Roberts), which has just decided to leave his wife and continue his lifestyle. The disastrous prodigal behavior of her Helena motivates Peggy to cut her off financially. Jenny's and Max's relationship, on the other hand, is termintated after Jenny meets Claude (Elodie Bouchez), a French writer who becomes her new love interest.
Also in Canada, Bette decides to withdraw her sole custody petition. This notification unfortunately reaches her lawyer too late. After receiving Bette's letter, Tina decides to withdraw her petition of allowing Bette to become Angelica's other legal parent. The season closes with a desperate act of Bette to keep Angelica, as she kidnaps the baby and runs away.
Guest appearances during the third season were made by Nona Hendryx, the music group Betty, and many others.
Episodes
301 Labia Majora
302 Lost Weekend
303 Lobsters
304 Light My Fire
305 Lifeline
306 Lifesize
307 Lone Star
308 Latecomer
309 Lead, Follow Or Get Out Of The Way
310 Losing The Light
311 Last Dance
312 Left Hand Of The Goddess
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> Season 4
> Season 5