The part that gave it away for me was when Teddy asked what was in the lighthouse to the police officer early on in the film, he paused and said it was something for sewage. When he was there later on in the movie, it wasn't.
After they convinced him he was infact insane and he did kill his wife, they showed the promiscuous shot of the lighthouse. Why did they do that? I thought the ligthouse was something for the sewage/empty?
Sane. The real Rachel in the cave said have you been taking your own cigarettes? He said no. At the start of the film, on the boat he said he lost his cigarettes, he was sure they were in his jacket. His partner Chuck offered him one of his cigarettes, when he got to the Island Dr Cawley gave him tablets.
Teddy knew what that place was doing in that lighthouse, went there to "blow the lid off the place" and Dr Cawley and Chuck devised a plan to stop him.
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