Diana Lyon was once a normal girl until the day she became Naiad Mistress of Water. When at camp the camp counselor Sherri Lancer would tease her every day at camp. But one day she went too far and pushed Diana into the camp lake to cure her of hydrophobia. Diana almost drowned that day and her hydrophobia intensified, as did the teasing. Many years later Diana studied science to figure out a cure for her fear of water. One day she found the cure through a lazer zapping her, but it gave her the power to control water, and create things out of water. She the called herself Naiad, and went looking for Sherri Lancer and get her revenge.
Over the years she became a famous actress and Diana got a job as one of her stage hands. One day they were filming at their old camp. This brought back painful memories for Diana. Once she was alone she took off her disguise and changed her hair white. She then created a monster to attack Sherri. Fortunately Vicki and Chris were there and dialed some heroes to fight her. Vicki became Infra-Violet, and Chris became Coldwave. They were successful in defeating her monsters, but never found the source of their creations. Eventually Diana tried again to get revenge this time by turning all the water in the city into monsters. Vicki and Chris again stopped her this time as Gossamer and Earth-man. They finally caught her but she finally injured Sherri with a lazer.
While in Jail the Master saw her power and wanted her as his minion, so he sent one of his creations the Marauder to go and break her out of jail. He was successful in getting her out but she refused to go with him. Vicki and Chris arrived to help her this time as Anybody and The Fan. Chris was knocked out and Vicki gained the upper hand using her wind abilities but was eventually he proved too strong for her, and she was knocked unconscious. Later when Vicki awoke she found Naiad passed out in front her, however she discovered that Chris turned into her to find the Master's hideout. Vicky then returned Naiad back to jail.