Douglas went down 18-10 on their trip to Orrell Anvils.
The Manx side trailed 10-7 at half-time after skipper Bryn Snellgrove picked up a try and a conversion to pull them back into the game after they had conceded 10 early points.
A Snellgrove drop goal early in the second half levelled the scores but Orrell stole the game with a try and a penalty in the closing stages.
Football: Braddan and Rushen United progress in Ecap FA Cup
Poor weather once again heavily disrupts local fixtures
Rugby: Ramsey take early lead in Counties 3 ADM minor conference
Celts win 'old firm' clash in Manx Cup
Hockey: IoM Ladies A march on in EH Championships
Bacchas B keep up perfect run in Men's Division One
FC Isle of Man's trip to Barnoldswick Town postponed
Travel disruption and player welfare behind decision
