Rauch led the race with 50 percent of the vote to Keyserling's 46 percent, according to unofficial results. Local businessman Peter White rounded out the race with 4 percent of the vote.
An official tally on the race wasn't expected until at least 3 a.m. today as election officials were left still counting some of the more than 7,000 absentee ballots cast in the county this year, more than double the amount filed in the county for the 2000 presidential election.
Election officials said state law wouldn't allow them to start counting the absentee votes until 2 p.m. Tuesday.
"I don't decorate the nursery until the baby is born", said Rauch, who was far from celebratory in speaking about Tuesday's results, knowing that his lead could evaporate as the absentee ballots are counted.
Agnes Garvin, executive director of the county's Board of Elections and Voter Registration Office, said it wasn't possible to tell how many of the uncounted absentee ballots were cast by city voters.
"Beaufort's going to be in good hands no matter who wins," Keyserling said. "I never said he was a bad mayor, I just think I could be a better mayor."
Keyserling, a city councilman, said he was not surprised that the race was a close one.
The campaign was fiercely fought over the past few months between the three candidates, with many negative messages being traded back and forth between Keyserling and Rauch.
Overshadowed grossly by the negative hoopla and his opponents' campaign fund raising was White, owner of Southurn Rose Buggy Tours.
The local businessman said he was pleased with the support he did receive, although he said he perceived a fear in voters to choose a mayor who is not a politician,
He spoke about the possibility of running for city council or mayor again in the future, but only if the government is not operating in the best interest of the city and its residents.
"If there's no need for change, then I won't interfere," White said.
Rauch has served as mayor since 1999, while Keyserling has served as a city councilman since 2001.
Election results will be certified by the Beaufort County Board of Elections and Voter Registration at 11 a.m. Friday in council chambers, 100 Ribaut Road.