diff --git a/ethcore/res/tx_permission_tests/contract_ver_2_genesis.json b/ethcore/res/tx_permission_tests/contract_ver_2_genesis.json
index b165625a1..89077c0af 100644
--- a/ethcore/res/tx_permission_tests/contract_ver_2_genesis.json
+++ b/ethcore/res/tx_permission_tests/contract_ver_2_genesis.json
@@ -17,7 +17,8 @@
 		"minGasLimit": "0x1388",
 		"networkID" : "0x69",
 		"gasLimitBoundDivisor": "0x0400",
-		"transactionPermissionContract": "0x0000000000000000000000000000000000000005"
+		"transactionPermissionContract": "0x0000000000000000000000000000000000000005",
+		"transactionPermissionContractTransition": "1"
 	},
 	"genesis": {
 		"seal": {
diff --git a/ethcore/res/tx_permission_tests/deprecated_contract_genesis.json b/ethcore/res/tx_permission_tests/deprecated_contract_genesis.json
index 92fde9080..dd858bee6 100644
--- a/ethcore/res/tx_permission_tests/deprecated_contract_genesis.json
+++ b/ethcore/res/tx_permission_tests/deprecated_contract_genesis.json
@@ -17,7 +17,8 @@
 		"minGasLimit": "0x1388",
 		"networkID" : "0x69",
 		"gasLimitBoundDivisor": "0x0400",
-		"transactionPermissionContract": "0x0000000000000000000000000000000000000005"
+		"transactionPermissionContract": "0x0000000000000000000000000000000000000005",
+		"transactionPermissionContractTransition": "1"
 	},
 	"genesis": {
 		"seal": {
diff --git a/ethcore/src/machine.rs b/ethcore/src/machine.rs
index 5b2170609..d487fff9b 100644
--- a/ethcore/src/machine.rs
+++ b/ethcore/src/machine.rs
@@ -343,7 +343,7 @@ impl EthereumMachine {
 		-> Result<(), transaction::Error>
 	{
 		if let Some(ref filter) = self.tx_filter.as_ref() {
-			if !filter.transaction_allowed(header.parent_hash(), t, client) {
+			if !filter.transaction_allowed(header.parent_hash(), header.number(), t, client) {
 				return Err(transaction::Error::NotAllowed.into())
 			}
 		}
diff --git a/ethcore/src/spec/spec.rs b/ethcore/src/spec/spec.rs
index 45f9a6c95..e842835f7 100644
--- a/ethcore/src/spec/spec.rs
+++ b/ethcore/src/spec/spec.rs
@@ -139,6 +139,8 @@ pub struct CommonParams {
 	pub max_code_size_transition: BlockNumber,
 	/// Transaction permission managing contract address.
 	pub transaction_permission_contract: Option<Address>,
+	/// Block at which the transaction permission contract should start being used.
+	pub transaction_permission_contract_transition: BlockNumber,
 	/// Maximum size of transaction's RLP payload
 	pub max_transaction_size: usize,
 }
@@ -296,6 +298,8 @@ impl From<ethjson::spec::Params> for CommonParams {
 			max_transaction_size: p.max_transaction_size.map_or(MAX_TRANSACTION_SIZE, Into::into),
 			max_code_size_transition: p.max_code_size_transition.map_or(0, Into::into),
 			transaction_permission_contract: p.transaction_permission_contract.map(Into::into),
+			transaction_permission_contract_transition:
+				p.transaction_permission_contract_transition.map_or(0, Into::into),
 			wasm_activation_transition: p.wasm_activation_transition.map_or_else(
 				BlockNumber::max_value,
 				Into::into
diff --git a/ethcore/src/tx_filter.rs b/ethcore/src/tx_filter.rs
index 585dc7e3d..78b495b26 100644
--- a/ethcore/src/tx_filter.rs
+++ b/ethcore/src/tx_filter.rs
@@ -23,6 +23,7 @@ use client::{BlockInfo, CallContract, BlockId};
 use parking_lot::Mutex;
 use spec::CommonParams;
 use transaction::{Action, SignedTransaction};
+use types::BlockNumber;
 use hash::KECCAK_EMPTY;
 
 use_contract!(transact_acl_deprecated, "TransactAclDeprecated", "res/contracts/tx_acl_deprecated.json");
@@ -44,6 +45,7 @@ pub struct TransactionFilter {
 	contract_deprecated: transact_acl_deprecated::TransactAclDeprecated,
 	contract: transact_acl::TransactAcl,
 	contract_address: Address,
+	transition_block: BlockNumber,
 	permission_cache: Mutex<LruCache<(H256, Address), u32>>,
 	contract_version_cache: Mutex<LruCache<(H256), Option<U256>>>
 }
@@ -56,6 +58,7 @@ impl TransactionFilter {
 				contract_deprecated: transact_acl_deprecated::TransactAclDeprecated::default(),
 				contract: transact_acl::TransactAcl::default(),
 				contract_address: address,
+				transition_block: params.transaction_permission_contract_transition,
 				permission_cache: Mutex::new(LruCache::new(MAX_CACHE_SIZE)),
 				contract_version_cache: Mutex::new(LruCache::new(MAX_CACHE_SIZE)),
 			}
@@ -63,7 +66,9 @@ impl TransactionFilter {
 	}
 
 	/// Check if transaction is allowed at given block.
-	pub fn transaction_allowed<C: BlockInfo + CallContract>(&self, parent_hash: &H256, transaction: &SignedTransaction, client: &C) -> bool {
+	pub fn transaction_allowed<C: BlockInfo + CallContract>(&self, parent_hash: &H256, block_number: BlockNumber, transaction: &SignedTransaction, client: &C) -> bool {
+		if block_number < self.transition_block { return true; }
+
 		let mut permission_cache = self.permission_cache.lock();
 		let mut contract_version_cache = self.contract_version_cache.lock();
 
@@ -196,33 +201,38 @@ mod test {
 		basic_tx_with_ether_and_to_key6.value = U256::from(123123);
 
 		let genesis = client.block_hash(BlockId::Latest).unwrap();
+		let block_number = 1;
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &create_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &call_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key2.secret(), None), &*client));
+		// same tx but request is allowed because the contract only enables at block #1
+		assert!(filter.transaction_allowed(&genesis, 0, &create_tx.clone().sign(key2.secret(), None), &*client));
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key2.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key2.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &call_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key1.secret(), None), &*client));
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key3.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key3.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &call_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key2.secret(), None), &*client));
 
-		assert!(!filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key4.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key4.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &call_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key3.secret(), None), &*client));
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &create_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &call_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key4.secret(), None), &*client));
 
-		assert!(!filter.transaction_allowed(&genesis, &basic_tx_with_ether_and_to_key7.clone().sign(key5.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &call_tx_with_ether.clone().sign(key5.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key6.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &basic_tx_with_ether_and_to_key7.clone().sign(key6.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &basic_tx_to_key6.clone().sign(key7.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &basic_tx_with_ether_and_to_key6.clone().sign(key7.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key1.secret(), None), &*client));
+
+		assert!(!filter.transaction_allowed(&genesis, block_number, &basic_tx_with_ether_and_to_key7.clone().sign(key5.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &call_tx_with_ether.clone().sign(key5.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key6.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx_with_ether_and_to_key7.clone().sign(key6.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx_to_key6.clone().sign(key7.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &basic_tx_with_ether_and_to_key6.clone().sign(key7.secret(), None), &*client));
 	}
 
 	/// Contract code: https://gist.github.com/arkpar/38a87cb50165b7e683585eec71acb05a
@@ -254,21 +264,26 @@ mod test {
 		call_tx.action = Action::Call(Address::from("0000000000000000000000000000000000000005"));
 
 		let genesis = client.block_hash(BlockId::Latest).unwrap();
+		let block_number = 1;
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &create_tx.clone().sign(key1.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &call_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key2.secret(), None), &*client));
+		// same tx but request is allowed because the contract only enables at block #1
+		assert!(filter.transaction_allowed(&genesis, 0, &create_tx.clone().sign(key2.secret(), None), &*client));
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key2.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key2.secret(), None), &*client));
-		assert!(filter.transaction_allowed(&genesis, &call_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key1.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key1.secret(), None), &*client));
 
-		assert!(filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key3.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key3.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &call_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key2.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key2.secret(), None), &*client));
 
-		assert!(!filter.transaction_allowed(&genesis, &basic_tx.clone().sign(key4.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &create_tx.clone().sign(key4.secret(), None), &*client));
-		assert!(!filter.transaction_allowed(&genesis, &call_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key3.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key3.secret(), None), &*client));
+
+		assert!(!filter.transaction_allowed(&genesis, block_number, &basic_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &create_tx.clone().sign(key4.secret(), None), &*client));
+		assert!(!filter.transaction_allowed(&genesis, block_number, &call_tx.clone().sign(key4.secret(), None), &*client));
 	}
 }
diff --git a/json/src/spec/params.rs b/json/src/spec/params.rs
index 0fab68198..cf57e9af4 100644
--- a/json/src/spec/params.rs
+++ b/json/src/spec/params.rs
@@ -143,6 +143,9 @@ pub struct Params {
 	/// Transaction permission contract address.
 	#[serde(rename="transactionPermissionContract")]
 	pub transaction_permission_contract: Option<Address>,
+	/// Block at which the transaction permission contract should start being used.
+	#[serde(rename="transactionPermissionContractTransition")]
+	pub transaction_permission_contract_transition: Option<Uint>,
 	/// Wasm activation block height, if not activated from start
 	#[serde(rename="wasmActivationTransition")]
 	pub wasm_activation_transition: Option<Uint>,