diff --git a/router/connection.go b/router/connection.go
index 7a1f878f4b..77a539ccb5 100644
--- a/router/connection.go
+++ b/router/connection.go
@@ -329,10 +329,6 @@ func (conn *LocalConnection) registerRemote(remote *Peer, acceptNewPeer bool) er
 		}
 	}
 
-	if conn.remote.UID != remote.UID {
-		return fmt.Errorf("Connection appears to be with different version of a peer we already know of")
-	}
-
 	if conn.remote == conn.local {
 		return ErrConnectToSelf
 	}
diff --git a/router/local_peer.go b/router/local_peer.go
index 80c5abcc22..ab54745a87 100644
--- a/router/local_peer.go
+++ b/router/local_peer.go
@@ -249,3 +249,13 @@ func (peer *LocalPeer) setShortID(shortID PeerShortID) {
 	peer.ShortID = shortID
 	peer.Version++
 }
+
+func (peer *LocalPeer) setVersionBeyond(version uint64) bool {
+	peer.Lock()
+	defer peer.Unlock()
+	if version >= peer.Version {
+		peer.Version = version + 1
+		return true
+	}
+	return false
+}
diff --git a/router/peers.go b/router/peers.go
index 6082c754a7..9c30a4e292 100644
--- a/router/peers.go
+++ b/router/peers.go
@@ -40,14 +40,6 @@ func (upe UnknownPeerError) Error() string {
 	return fmt.Sprint("Reference to unknown peer ", upe.Name)
 }
 
-type NameCollisionError struct {
-	Name PeerName
-}
-
-func (nce NameCollisionError) Error() string {
-	return fmt.Sprint("Multiple peers found with same name: ", nce.Name)
-}
-
 type PeerNameSet map[PeerName]struct{}
 
 type ConnectionSummary struct {
@@ -68,6 +60,9 @@ type PeersPendingNotifications struct {
 
 	// The local short ID needs reassigning due to a collision
 	reassignLocalShortID bool
+
+	// The local peer was modified
+	localPeerModified bool
 }
 
 func NewPeers(ourself *LocalPeer) *Peers {
@@ -100,7 +95,8 @@ func (peers *Peers) OnInvalidateShortIDs(callback func()) {
 }
 
 func (peers *Peers) unlockAndNotify(pending *PeersPendingNotifications) {
-	broadcastLocalPeer := pending.reassignLocalShortID && peers.reassignLocalShortID(pending)
+	broadcastLocalPeer := (pending.reassignLocalShortID && peers.reassignLocalShortID(pending)) ||
+		pending.localPeerModified
 	onGC := peers.onGC
 	onInvalidateShortIDs := peers.onInvalidateShortIDs
 	peers.Unlock()
@@ -436,12 +432,8 @@ func (peers *Peers) decodeUpdate(update []byte) (newPeers map[PeerName]*Peer, de
 		newPeer := NewPeerFromSummary(peerSummary)
 		decodedUpdate = append(decodedUpdate, newPeer)
 		decodedConns = append(decodedConns, connSummaries)
-		existingPeer, found := peers.byName[newPeer.Name]
-		if !found {
+		if _, found := peers.byName[newPeer.Name]; !found {
 			newPeers[newPeer.Name] = newPeer
-		} else if existingPeer.UID != newPeer.UID {
-			err = NameCollisionError{Name: newPeer.Name}
-			return
 		}
 	}
 
@@ -469,36 +461,36 @@ func (peers *Peers) applyUpdate(decodedUpdate []*Peer, decodedConns [][]Connecti
 		connSummaries := decodedConns[idx]
 		name := newPeer.Name
 		// guaranteed to find peer in the peers.byName
-		peer := peers.byName[name]
-		if peer != newPeer &&
-			(peer == peers.ourself.Peer || peer.Version >= newPeer.Version) {
-			// Nobody but us updates us. And if we know more about a
-			// peer than what's in the the update, we ignore the
-			// latter.
-			continue
-		}
-		// If we're here, either it was a new peer, or the update has
-		// more info about the peer than we do. Either case, we need
-		// to set version and conns and include the updated peer in
-		// the outgoing update.
-
-		// Can peer have been updated by anyone else in the mean time?
-		// No - we know that peer is not ourself, so the only prospect
-		// for an update would be someone else calling
-		// router.Peers.ApplyUpdate. But ApplyUpdate takes the Lock on
-		// the router.Peers, so there can be no race here.
-		peer.Version = newPeer.Version
-		peer.connections = makeConnsMap(peer, connSummaries, peers.byName)
-
-		if newPeer.ShortID != peer.ShortID {
-			peers.deleteByShortID(peer, pending)
-			peer.ShortID = newPeer.ShortID
-			peers.addByShortID(peer, pending)
+		switch peer := peers.byName[name]; peer {
+		case peers.ourself.Peer:
+			if newPeer.UID != peer.UID {
+				// The update contains information about an old
+				// incarnation of ourselves. We increase our version
+				// number beyond that which we received, so our
+				// information supersedes the old one when it is
+				// received by other peers.
+				pending.localPeerModified = peers.ourself.setVersionBeyond(newPeer.Version)
+			}
+		case newPeer:
+			peer.connections = makeConnsMap(peer, connSummaries, peers.byName)
+			newUpdate[name] = void
+		default: // existing peer
+			if newPeer.Version < peer.Version ||
+				(newPeer.Version == peer.Version && newPeer.UID <= peer.UID) {
+				continue
+			}
+			peer.Version = newPeer.Version
+			peer.UID = newPeer.UID
+			peer.connections = makeConnsMap(peer, connSummaries, peers.byName)
+
+			if newPeer.ShortID != peer.ShortID {
+				peers.deleteByShortID(peer, pending)
+				peer.ShortID = newPeer.ShortID
+				peers.addByShortID(peer, pending)
+			}
+			newUpdate[name] = void
 		}
-
-		newUpdate[name] = void
 	}
-
 	return newUpdate
 }