Photo by Jessica Lyons: Why Is This Man Smiling? Zan Henson, former water board member, at what was supposed to be an election night victory party.

The mood at an election-night party for Kristi Markey, Bob Pacelli and Zan Henson, the environmentalist slate of candidates running for a seat on the Monterey Peninsula Water Management Board of Directors, remained happy and upbeat until about quarter till nine.

A veritable Who''s Who of Peninsula progressives and activists sipped wine and beer (to conserve water, of course) at Morgan''s Coffee & Tea, awaiting the results of Tuesday''s election.

At another party, at Adventure''s by the Sea, candidates Marc Beique, Michelle Knight and Larry Foy also waited to hear the vote count.

Then, at Morgan''s, the clock stuck 8:45pm. Henson announced the early numbers were in. And the good feeling ran down the drain.

With 90 percent of the votes in, attorney Kristi Markey had clearly won the Monterey seat on the board, beating architect Marc Beique. When Markey''s victory was announced, the Morgan''s crowed cheered--the last time they would do so.

In the Pacific Grove race, it was announced, Knight had beaten Pacelli. Boos and hisses rang out. And in Carmel, Foy had won a narrow victory over Henson. This announcement was met by gasps of surprise.

"I think that money talks," Henson said, upon hearing the results. Foy had raised $21,494 for his successful campaign, compared to Henson''s $6,328.

"It means no new water for very long time," he added, referring to the fact that the Moss Landing desal plant--the project now favored by the board majority--won''t be online until 2008 at the soonest.

Markey, the only winner, remained upbeat. "I hope that we all have common ground and that we all are concerned about preserving this community, while at the same time solving our water shortage," she said.

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