Yet again the third team enjoyed another promotion year, this time finishing as runners-up to secure their position in Intermediate I for 2006–07. At the beginning of season 2006–07 Dawlish Town played a pre-season friendly with Torquay United and marked the occasion by having their new grandstand officially opened jointly by Torquay United Chairman Mike Bateson, Dawlish Town’s Managing Director Terence Stone and Chairman and Director Dave Fenner. In recognition of outstanding support given to the club by Terence Stone, the grandstand was duly named the "Terence Stone Stand".