In Barataria, the gondolier-courtiers are all enjoying living under "a monarchy that's tempered with Republican equality". Marco and Giuseppe have been doing all the work around the palace for the past three months - it is the privilege of royalty! They are happy enough with this arrangement, except that they are worried about having to share a single portion of rations between the two of them, and they miss their wives. Soon, however, all the ladies arrive, having risked the long sea voyage from Venice – they could no longer stand the separation. In delight, the reunited couples have a magnificent banquet and a dance (a cachucha).