Don Alhambra brings in the nurse who had tended the infant prince of Barataria twenty years ago. She reveals that when the Grand Inquisitor came to steal the prince, she had loyally hidden him away, and given Don Alhambra her own young son instead. Thus, the king is neither Marco nor Giuseppe, but her own son, Luiz. This resolves the romantic entanglements to everyone's satisfaction. Casilda finds that she is already married to the man she loves, Luiz. The two gondoliers surrender their crown to Luiz and, though a bit disappointed that neither will be a king, they can return happily to Venice with their wives. There is a final dance for the full company, reprising the gondoliers' Act I duet and the cachucha.