The guests soon arrive and exchange words with Burrs, and alcohol starts flowing ("Dry"). Queenie makes her appearance in a "new" dress ("My Beautiful Blonde"), and welcomes everyone, meeting Nadine, a minor who wants to be a blonde and drink bathtub gin ("Welcome To My Party"). Queenie takes her under her wing as she mingles with the other guests. Madelaine, an "almost famous" stripper, introduces Queenie to her new girlfriend, the catatonic morphine-addicted Sally, who she met crawling outside the theatre in a drugged stupor. Madelaine believes Sally is a "post-modernist", to which Burrs replies "in need of a post mortem".