Marurai was re-elected at the 2004 election. When Prime Minister Robert Woonton was expelled from the Democratic party for forming a coalition with the Cook Islands Party, Marurai joined him in the newly formed Demo Party Tumu (later known as Cook Islands First). When an electoral petition found Woonton's seat was a dead tie, Woonton resigned, and Marurai was elected Prime Minister. Initially he governed in coalition with the Cook Islands Party as part of a power-sharing deal which would see CIP leader Geoffrey Henry become Prime Minister after two years, but in August 2005 the agreement broke down and Marurai formed a new coalition with the Democrats. Terepai Maoate became Deputy Prime Minister again, and a month later the remaining CIP Cabinet Ministers were sacked and replaced by Democrats.