Liverpool overtook rivals Everton in the Premiership after a scrappy 2-1 win at Goodison Park in the 168th Merseyside derby.
With both teams hungry for a Champions League spot, the clash was also crucial in terms of local pride, Premiership places and European revenue.
It has been 16 years since Everton have finished higher than their rivals in the table and Davis Moyes was determined to end the Reds' Merseyside reign.
But with goals from Michael Owen and Danny Murphy, as well as Chelsea's defeat at the hands of Aston Villa, Gerard Houllier's side are now even closer to their European dream.
Goal-hungry wonder-kid Wayne Rooney had his first shot after just four minutes but Liverpool keeper Jerzy Dudek blocked it.
In the 19th minute a mistake by the Polish international gave Everton's Kevin Campbell the ball and an open goal.
But Jamie Carragher stepped into the shoes of absent Reds defender Sami Hyypia, who was suspended, to head the dangerous ball away.
Star striker Owen opened the scoring for the visitors in the 31st minute.
He managed to get a Murphy ball from the corner, into the box and past the outstretched arms of Everton keeper Richard Wright.
In the 51st minute striker Emile Heskey headed a ball away from the goal but straight into the path of Everton's Lee Carsley.
His shot skimmed the post and the crowd leapt up, convinced he'd netted the equaliser.
But that honour went to David Unsworth six minutes later when he scored a penalty after Carragher's clumsy foul on Gary Naysmith in the box.
Liverpool answered back in the 64th minute when midfielder Murphy surprised Wright with a powerful 30-yarder, putting the Reds back on top.