The Water and the Wine is set on the Greek island of Hydra in a '60s artistic community. The author lived there as a child. The main focus is on Leonard Cohen and his lover/muse, Marianne Ihlen. Other real characters are Australian writers Charmian Clift and George Johnston, whose marriage is volatile. Norman Peterson is an American sculptor who makes works out of objects he finds. Each night, at Douskos Taverna, the artists and writers meet and discuss their ideas about life, art, philosophy, and religion. They are tolerated and accepted by the local Greek islanders, many of whom also feature in this book.  

The novel mixes fact and fiction: The Silver family (loosely based on the author's own family) arrive on the island and are drawn into a world of creativity and excitement but also infidelity, jealousy, and dysfunctional relationships. The book explores the effect on the children of this lifestyle, the tensions between the men and the women, the conflict between wanting to create and being hindered by domestic responsibilities, and how financial pressures can hinder one's freedom. 

The beauty of the island, the flowers and goats, the mules that transport people and goods, the Greek food and landscape, all provide an antidote to the human instability. 

Ultimately, the novel asks the question: What is the price of creativity?