CNN

McCain speaks with voters in New Hampshire over the weekend.

BOW, New Hampshire (CNN) - When Arizona Sen. John McCain sought the Republican presidential nomination in 2000, Tennessee Sen. Fred Thompson was one of only a handful of supporters who backed his bid.

Several years removed from Congress, Thompson is now about to become McCain's rival for the right to be the GOP nominee in the 2008 race for the White House.

“I think he’s a good and close friend of mine and I’m sure he’ll do well," McCain told CNN in an interview Tuesday after a town hall meeting in this important primary state. "All of us have to be in campaigns and so it’s unclear how exactly he’ll do, but I think it’s a process unlike any other and I want to say come on in Fred, the water is fine.” (Related video: McCain on Thompson's entrance)

McCain is hoping history repeats itself in the Granite State primary, which he won in his unsuccessful bid for the nomination seven years ago. He used this town hall meeting, held in a fire station off of I-89, to restate his belief that the state's unique role in helping vet presidential candidates needs to be preserved.

“This is what it’s all about," McCain said. "This is what democracy in America should be all about. The people of the state of New Hampshire understand their responsibilities and the impact that they have on the selection of the next President of the United States."

He later added, “The people in NH understand their responsibilities, they examine the candidates.”

McCain, who only months ago was a front runner for the nomination, is trying to rebuild his campaign after it was learned his operation was nearly broke and his senior staff turned over. McCain is hoping a win in New Hampshire will propel him on the road to winning the nomination.

McCain said it was important to take the necessary steps to preserve New Hampshire's role in the selection process, a statement that played well with this audience.

“I’m a little worried now my friends about this collapse of the primary season," McCain said . "I know you’ve read about it as state after state is moving their primary up closer and closer. Look, I respect all those states…but the fact is that we have to do everything in our power to preserve the first in the nation status for the state of New Hampshire for good reason. Money doesn’t buy elections in the state of New Hampshire my friends.”

TIME.com: Thompson Enters, Stage Right

- CNN New Hampshire Producer Sareena K. Dalla