diff --git a/Cargo.lock b/Cargo.lock
index 18f754d43..5f6c73f58 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -893,6 +893,7 @@ dependencies = [
  "byteorder 1.3.4 (registry+https://github.com/rust-lang/crates.io-index)",
  "chrono 0.4.11 (registry+https://github.com/rust-lang/crates.io-index)",
  "croaring-mw 0.4.5 (registry+https://github.com/rust-lang/crates.io-index)",
+ "enum_primitive 0.1.1 (registry+https://github.com/rust-lang/crates.io-index)",
  "env_logger 0.7.1 (registry+https://github.com/rust-lang/crates.io-index)",
  "failure 0.1.8 (registry+https://github.com/rust-lang/crates.io-index)",
  "failure_derive 0.1.8 (registry+https://github.com/rust-lang/crates.io-index)",
diff --git a/api/src/handlers/utils.rs b/api/src/handlers/utils.rs
index 7b6848ebb..738cf1fce 100644
--- a/api/src/handlers/utils.rs
+++ b/api/src/handlers/utils.rs
@@ -26,7 +26,7 @@ use std::sync::{Arc, Weak};
 // boilerplate of dealing with `Weak`.
 pub fn w<T>(weak: &Weak<T>) -> Result<Arc<T>, Error> {
 	weak.upgrade()
-		.ok_or_else(|| ErrorKind::Internal("failed to upgrade weak refernce".to_owned()).into())
+		.ok_or_else(|| ErrorKind::Internal("failed to upgrade weak reference".to_owned()).into())
 }
 
 /// Internal function to retrieves an output by a given commitment
diff --git a/chain/Cargo.toml b/chain/Cargo.toml
index f7d71eccf..fa297bd9f 100644
--- a/chain/Cargo.toml
+++ b/chain/Cargo.toml
@@ -16,6 +16,7 @@ byteorder = "1"
 failure = "0.1"
 failure_derive = "0.1"
 croaring = { version = "0.4.5", package = "croaring-mw", features = ["compat"] }
+enum_primitive = "0.1"
 log = "0.4"
 serde = "1"
 serde_derive = "1"
diff --git a/chain/src/chain.rs b/chain/src/chain.rs
index 087c0b342..35a97571e 100644
--- a/chain/src/chain.rs
+++ b/chain/src/chain.rs
@@ -19,7 +19,8 @@ use crate::core::core::hash::{Hash, Hashed, ZERO_HASH};
 use crate::core::core::merkle_proof::MerkleProof;
 use crate::core::core::verifier_cache::VerifierCache;
 use crate::core::core::{
-	Block, BlockHeader, BlockSums, Committed, Output, OutputIdentifier, Transaction, TxKernel,
+	Block, BlockHeader, BlockSums, Committed, KernelFeatures, Output, OutputIdentifier,
+	Transaction, TxKernel,
 };
 use crate::core::global;
 use crate::core::pow;
@@ -195,12 +196,12 @@ impl Chain {
 			&mut txhashset,
 		)?;
 
-		// Initialize the output_pos index based on UTXO set.
-		// This is fast as we only look for stale and missing entries
-		// and do not need to rebuild the entire index.
+		// Initialize the output_pos index based on UTXO set
+		// and NRD kernel_pos index based recent kernel history.
 		{
 			let batch = store.batch()?;
 			txhashset.init_output_pos_index(&header_pmmr, &batch)?;
+			txhashset.init_recent_kernel_pos_index(&header_pmmr, &batch)?;
 			batch.commit()?;
 		}
 
@@ -296,6 +297,11 @@ impl Chain {
 	/// Returns true if it has been added to the longest chain
 	/// or false if it has added to a fork (or orphan?).
 	fn process_block_single(&self, b: Block, opts: Options) -> Result<Option<Tip>, Error> {
+		// Process the header first.
+		// If invalid then fail early.
+		// If valid then continue with block processing with header_head committed to db etc.
+		self.process_block_header(&b.header, opts)?;
+
 		let (maybe_new_head, prev_head) = {
 			let mut header_pmmr = self.header_pmmr.write();
 			let mut txhashset = self.txhashset.write();
@@ -513,13 +519,38 @@ impl Chain {
 		})
 	}
 
-	/// Validate the tx against the current UTXO set.
+	/// Validate the tx against the current UTXO set and recent kernels (NRD relative lock heights).
 	pub fn validate_tx(&self, tx: &Transaction) -> Result<(), Error> {
+		self.validate_tx_against_utxo(tx)?;
+		self.validate_tx_kernels(tx)?;
+		Ok(())
+	}
+
+	/// Validates NRD relative height locks against "recent" kernel history.
+	/// Applies the kernels to the current kernel MMR in a readonly extension.
+	/// The extension and the db batch are discarded.
+	/// The batch ensures duplicate NRD kernels within the tx are handled correctly.
+	fn validate_tx_kernels(&self, tx: &Transaction) -> Result<(), Error> {
+		let has_nrd_kernel = tx.kernels().iter().any(|k| match k.features {
+			KernelFeatures::NoRecentDuplicate { .. } => true,
+			_ => false,
+		});
+		if !has_nrd_kernel {
+			return Ok(());
+		}
+		let mut header_pmmr = self.header_pmmr.write();
+		let mut txhashset = self.txhashset.write();
+		txhashset::extending_readonly(&mut header_pmmr, &mut txhashset, |ext, batch| {
+			let height = self.next_block_height()?;
+			ext.extension.apply_kernels(tx.kernels(), height, batch)
+		})
+	}
+
+	fn validate_tx_against_utxo(&self, tx: &Transaction) -> Result<(), Error> {
 		let header_pmmr = self.header_pmmr.read();
 		let txhashset = self.txhashset.read();
 		txhashset::utxo_view(&header_pmmr, &txhashset, |utxo, batch| {
-			utxo.validate_tx(tx, batch)?;
-			Ok(())
+			utxo.validate_tx(tx, batch)
 		})
 	}
 
@@ -929,8 +960,16 @@ impl Chain {
 			Some(&header),
 		)?;
 
-		// Validate the full kernel history (kernel MMR root for every block header).
-		self.validate_kernel_history(&header, &txhashset)?;
+		// Validate the full kernel history.
+		// Check kernel MMR root for every block header.
+		// Check NRD relative height rules for full kernel history.
+		{
+			self.validate_kernel_history(&header, &txhashset)?;
+
+			let header_pmmr = self.header_pmmr.read();
+			let batch = self.store.batch()?;
+			txhashset.verify_kernel_pos_index(&self.genesis, &header_pmmr, &batch)?;
+		}
 
 		// all good, prepare a new batch and update all the required records
 		debug!("txhashset_write: rewinding a 2nd time (writeable)");
@@ -979,6 +1018,9 @@ impl Chain {
 		// Rebuild our output_pos index in the db based on fresh UTXO set.
 		txhashset.init_output_pos_index(&header_pmmr, &batch)?;
 
+		// Rebuild our NRD kernel_pos index based on recent kernel history.
+		txhashset.init_recent_kernel_pos_index(&header_pmmr, &batch)?;
+
 		// Commit all the changes to the db.
 		batch.commit()?;
 
@@ -1115,6 +1157,9 @@ impl Chain {
 		// Make sure our output_pos index is consistent with the UTXO set.
 		txhashset.init_output_pos_index(&header_pmmr, &batch)?;
 
+		// Rebuild our NRD kernel_pos index based on recent kernel history.
+		txhashset.init_recent_kernel_pos_index(&header_pmmr, &batch)?;
+
 		// Commit all the above db changes.
 		batch.commit()?;
 
diff --git a/chain/src/error.rs b/chain/src/error.rs
index f1cec32d3..e4634c45d 100644
--- a/chain/src/error.rs
+++ b/chain/src/error.rs
@@ -122,6 +122,9 @@ pub enum ErrorKind {
 	/// Tx not valid based on lock_height.
 	#[fail(display = "Transaction Lock Height")]
 	TxLockHeight,
+	/// Tx is not valid due to NRD relative_height restriction.
+	#[fail(display = "NRD Relative Height")]
+	NRDRelativeHeight,
 	/// No chain exists and genesis block is required
 	#[fail(display = "Genesis Block Required")]
 	GenesisBlockRequired,
diff --git a/chain/src/lib.rs b/chain/src/lib.rs
index 78da144bc..092b88038 100644
--- a/chain/src/lib.rs
+++ b/chain/src/lib.rs
@@ -23,6 +23,9 @@
 #[macro_use]
 extern crate bitflags;
 
+#[macro_use]
+extern crate enum_primitive;
+
 #[macro_use]
 extern crate serde_derive;
 #[macro_use]
@@ -35,6 +38,7 @@ use grin_util as util;
 
 mod chain;
 mod error;
+pub mod linked_list;
 pub mod pipe;
 pub mod store;
 pub mod txhashset;
diff --git a/chain/src/linked_list.rs b/chain/src/linked_list.rs
new file mode 100644
index 000000000..cb9822e0a
--- /dev/null
+++ b/chain/src/linked_list.rs
@@ -0,0 +1,582 @@
+// Copyright 2020 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+//! Implements "linked list" storage primitive for lmdb index supporting multiple entries.
+
+use crate::core::ser::{self, Readable, Reader, Writeable, Writer};
+use crate::store::Batch;
+use crate::types::CommitPos;
+use crate::util::secp::pedersen::Commitment;
+use enum_primitive::FromPrimitive;
+use grin_store as store;
+use std::marker::PhantomData;
+use store::{to_key, to_key_u64, Error};
+
+enum_from_primitive! {
+	#[derive(Copy, Clone, Debug, PartialEq)]
+	enum ListWrapperVariant {
+		Single = 0,
+		Multi = 1,
+	}
+}
+
+impl Writeable for ListWrapperVariant {
+	fn write<W: Writer>(&self, writer: &mut W) -> Result<(), ser::Error> {
+		writer.write_u8(*self as u8)
+	}
+}
+
+impl Readable for ListWrapperVariant {
+	fn read<R: Reader>(reader: &mut R) -> Result<ListWrapperVariant, ser::Error> {
+		ListWrapperVariant::from_u8(reader.read_u8()?).ok_or(ser::Error::CorruptedData)
+	}
+}
+
+enum_from_primitive! {
+	#[derive(Copy, Clone, Debug, PartialEq)]
+	enum ListEntryVariant {
+		// Start at 2 here to differentiate from ListWrapperVariant above.
+		Head = 2,
+		Tail = 3,
+		Middle = 4,
+	}
+}
+
+impl Writeable for ListEntryVariant {
+	fn write<W: Writer>(&self, writer: &mut W) -> Result<(), ser::Error> {
+		writer.write_u8(*self as u8)
+	}
+}
+
+impl Readable for ListEntryVariant {
+	fn read<R: Reader>(reader: &mut R) -> Result<ListEntryVariant, ser::Error> {
+		ListEntryVariant::from_u8(reader.read_u8()?).ok_or(ser::Error::CorruptedData)
+	}
+}
+
+/// Index supporting a list of (duplicate) entries per commitment.
+/// Each entry will be at a unique MMR pos.
+pub trait ListIndex {
+	/// List type
+	type List: Readable + Writeable;
+
+	/// List entry type
+	type Entry: ListIndexEntry;
+
+	/// Construct a key for the list.
+	fn list_key(&self, commit: Commitment) -> Vec<u8>;
+
+	/// Construct a key for an individual entry in the list.
+	fn entry_key(&self, commit: Commitment, pos: u64) -> Vec<u8>;
+
+	/// Returns either a "Single" with embedded "pos" or a "list" with "head" and "tail".
+	/// Key is "prefix|commit".
+	/// Note the key for an individual entry in the list is "prefix|commit|pos".
+	fn get_list(&self, batch: &Batch<'_>, commit: Commitment) -> Result<Option<Self::List>, Error> {
+		batch.db.get_ser(&self.list_key(commit))
+	}
+
+	/// Returns one of "head", "tail" or "middle" entry variants.
+	/// Key is "prefix|commit|pos".
+	fn get_entry(
+		&self,
+		batch: &Batch<'_>,
+		commit: Commitment,
+		pos: u64,
+	) -> Result<Option<Self::Entry>, Error> {
+		batch.db.get_ser(&self.entry_key(commit, pos))
+	}
+
+	/// Peek the head of the list for the specified commitment.
+	fn peek_pos(
+		&self,
+		batch: &Batch<'_>,
+		commit: Commitment,
+	) -> Result<Option<<Self::Entry as ListIndexEntry>::Pos>, Error>;
+
+	/// Push a pos onto the list for the specified commitment.
+	fn push_pos(
+		&self,
+		batch: &Batch<'_>,
+		commit: Commitment,
+		new_pos: <Self::Entry as ListIndexEntry>::Pos,
+	) -> Result<(), Error>;
+
+	/// Pop a pos off the list for the specified commitment.
+	fn pop_pos(
+		&self,
+		batch: &Batch<'_>,
+		commit: Commitment,
+	) -> Result<Option<<Self::Entry as ListIndexEntry>::Pos>, Error>;
+}
+
+/// Supports "rewind" given the provided commit and a pos to rewind back to.
+pub trait RewindableListIndex {
+	/// Rewind the index for the given commitment to the specified position.
+	fn rewind(&self, batch: &Batch<'_>, commit: Commitment, rewind_pos: u64) -> Result<(), Error>;
+}
+
+/// A pruneable list index supports pruning of old data from the index lists.
+/// This allows us to efficiently maintain an index of "recent" kernel data.
+/// We can maintain a window of 2 weeks of recent data, discarding anything older than this.
+pub trait PruneableListIndex: ListIndex {
+	/// Clear all data from the index.
+	/// Used when rebuilding the index.
+	fn clear(&self, batch: &Batch<'_>) -> Result<(), Error>;
+
+	/// Prune old data.
+	fn prune(&self, batch: &Batch<'_>, commit: Commitment, cutoff_pos: u64) -> Result<(), Error>;
+
+	/// Pop a pos off the back of the list (used for pruning old data).
+	fn pop_pos_back(
+		&self,
+		batch: &Batch<'_>,
+		commit: Commitment,
+	) -> Result<Option<<Self::Entry as ListIndexEntry>::Pos>, Error>;
+}
+
+/// Wrapper for the list to handle either `Single` or `Multi` entries.
+/// Optimized for the common case where we have a single entry in the list.
+#[derive(Copy, Clone, Debug, PartialEq)]
+pub enum ListWrapper<T> {
+	/// List with a single entry.
+	/// Allows direct access to the pos.
+	Single {
+		/// The MMR pos where this single entry is located.
+		pos: T,
+	},
+	/// List with multiple entries.
+	/// Maintains head and tail of the underlying linked list.
+	Multi {
+		/// Head of the linked list.
+		head: u64,
+		/// Tail of the linked list.
+		tail: u64,
+	},
+}
+
+impl<T> Writeable for ListWrapper<T>
+where
+	T: Writeable,
+{
+	/// Write first byte representing the variant, followed by variant specific data.
+	/// "Single" is optimized with embedded "pos".
+	/// "Multi" has references to "head" and "tail".
+	fn write<W: Writer>(&self, writer: &mut W) -> Result<(), ser::Error> {
+		match self {
+			ListWrapper::Single { pos } => {
+				ListWrapperVariant::Single.write(writer)?;
+				pos.write(writer)?;
+			}
+			ListWrapper::Multi { head, tail } => {
+				ListWrapperVariant::Multi.write(writer)?;
+				writer.write_u64(*head)?;
+				writer.write_u64(*tail)?;
+			}
+		}
+		Ok(())
+	}
+}
+
+impl<T> Readable for ListWrapper<T>
+where
+	T: Readable,
+{
+	/// Read the first byte to determine what needs to be read beyond that.
+	fn read<R: Reader>(reader: &mut R) -> Result<ListWrapper<T>, ser::Error> {
+		let entry = match ListWrapperVariant::read(reader)? {
+			ListWrapperVariant::Single => ListWrapper::Single {
+				pos: T::read(reader)?,
+			},
+			ListWrapperVariant::Multi => ListWrapper::Multi {
+				head: reader.read_u64()?,
+				tail: reader.read_u64()?,
+			},
+		};
+		Ok(entry)
+	}
+}
+
+/// Index supporting multiple duplicate entries.
+pub struct MultiIndex<T> {
+	phantom: PhantomData<*const T>,
+	list_prefix: u8,
+	entry_prefix: u8,
+}
+
+impl<T> MultiIndex<T> {
+	/// Initialize a new multi index with the specified list and entry prefixes.
+	pub fn init(list_prefix: u8, entry_prefix: u8) -> MultiIndex<T> {
+		MultiIndex {
+			phantom: PhantomData,
+			list_prefix,
+			entry_prefix,
+		}
+	}
+}
+
+impl<T> ListIndex for MultiIndex<T>
+where
+	T: PosEntry,
+{
+	type List = ListWrapper<T>;
+	type Entry = ListEntry<T>;
+
+	fn list_key(&self, commit: Commitment) -> Vec<u8> {
+		to_key(self.list_prefix, &mut commit.as_ref().to_vec())
+	}
+
+	fn entry_key(&self, commit: Commitment, pos: u64) -> Vec<u8> {
+		to_key_u64(self.entry_prefix, &mut commit.as_ref().to_vec(), pos)
+	}
+
+	fn peek_pos(&self, batch: &Batch<'_>, commit: Commitment) -> Result<Option<T>, Error> {
+		match self.get_list(batch, commit)? {
+			None => Ok(None),
+			Some(ListWrapper::Single { pos }) => Ok(Some(pos)),
+			Some(ListWrapper::Multi { head, .. }) => {
+				if let Some(ListEntry::Head { pos, .. }) = self.get_entry(batch, commit, head)? {
+					Ok(Some(pos))
+				} else {
+					Err(Error::OtherErr("expected head to be head variant".into()))
+				}
+			}
+		}
+	}
+
+	fn push_pos(&self, batch: &Batch<'_>, commit: Commitment, new_pos: T) -> Result<(), Error> {
+		match self.get_list(batch, commit)? {
+			None => {
+				let list = ListWrapper::Single { pos: new_pos };
+				batch.db.put_ser(&self.list_key(commit), &list)?;
+			}
+			Some(ListWrapper::Single { pos: current_pos }) => {
+				if new_pos.pos() <= current_pos.pos() {
+					return Err(Error::OtherErr("pos must be increasing".into()));
+				}
+
+				let head = ListEntry::Head {
+					pos: new_pos,
+					next: current_pos.pos(),
+				};
+				let tail = ListEntry::Tail {
+					pos: current_pos,
+					prev: new_pos.pos(),
+				};
+				let list: ListWrapper<T> = ListWrapper::Multi {
+					head: new_pos.pos(),
+					tail: current_pos.pos(),
+				};
+				batch
+					.db
+					.put_ser(&self.entry_key(commit, new_pos.pos()), &head)?;
+				batch
+					.db
+					.put_ser(&self.entry_key(commit, current_pos.pos()), &tail)?;
+				batch.db.put_ser(&self.list_key(commit), &list)?;
+			}
+			Some(ListWrapper::Multi { head, tail }) => {
+				if new_pos.pos() <= head {
+					return Err(Error::OtherErr("pos must be increasing".into()));
+				}
+
+				if let Some(ListEntry::Head {
+					pos: current_pos,
+					next: current_next,
+				}) = self.get_entry(batch, commit, head)?
+				{
+					let head = ListEntry::Head {
+						pos: new_pos,
+						next: current_pos.pos(),
+					};
+					let middle = ListEntry::Middle {
+						pos: current_pos,
+						next: current_next,
+						prev: new_pos.pos(),
+					};
+					let list: ListWrapper<T> = ListWrapper::Multi {
+						head: new_pos.pos(),
+						tail,
+					};
+					batch
+						.db
+						.put_ser(&self.entry_key(commit, new_pos.pos()), &head)?;
+					batch
+						.db
+						.put_ser(&self.entry_key(commit, current_pos.pos()), &middle)?;
+					batch.db.put_ser(&self.list_key(commit), &list)?;
+				} else {
+					return Err(Error::OtherErr("expected head to be head variant".into()));
+				}
+			}
+		}
+		Ok(())
+	}
+
+	/// Pop the head of the list.
+	/// Returns the output_pos.
+	/// Returns None if list was empty.
+	fn pop_pos(&self, batch: &Batch<'_>, commit: Commitment) -> Result<Option<T>, Error> {
+		match self.get_list(batch, commit)? {
+			None => Ok(None),
+			Some(ListWrapper::Single { pos }) => {
+				batch.delete(&self.list_key(commit))?;
+				Ok(Some(pos))
+			}
+			Some(ListWrapper::Multi { head, tail }) => {
+				if let Some(ListEntry::Head {
+					pos: current_pos,
+					next: current_next,
+				}) = self.get_entry(batch, commit, head)?
+				{
+					match self.get_entry(batch, commit, current_next)? {
+						Some(ListEntry::Middle { pos, next, .. }) => {
+							let head = ListEntry::Head { pos, next };
+							let list: ListWrapper<T> = ListWrapper::Multi {
+								head: pos.pos(),
+								tail,
+							};
+							batch.delete(&self.entry_key(commit, current_pos.pos()))?;
+							batch
+								.db
+								.put_ser(&self.entry_key(commit, pos.pos()), &head)?;
+							batch.db.put_ser(&self.list_key(commit), &list)?;
+							Ok(Some(current_pos))
+						}
+						Some(ListEntry::Tail { pos, .. }) => {
+							let list = ListWrapper::Single { pos };
+							batch.delete(&self.entry_key(commit, current_pos.pos()))?;
+							batch.db.put_ser(&self.list_key(commit), &list)?;
+							Ok(Some(current_pos))
+						}
+						Some(_) => Err(Error::OtherErr("next was unexpected".into())),
+						None => Err(Error::OtherErr("next missing".into())),
+					}
+				} else {
+					Err(Error::OtherErr("expected head to be head variant".into()))
+				}
+			}
+		}
+	}
+}
+
+/// List index that supports rewind.
+impl<T: PosEntry> RewindableListIndex for MultiIndex<T> {
+	fn rewind(&self, batch: &Batch<'_>, commit: Commitment, rewind_pos: u64) -> Result<(), Error> {
+		while self
+			.peek_pos(batch, commit)?
+			.map(|x| x.pos() > rewind_pos)
+			.unwrap_or(false)
+		{
+			self.pop_pos(batch, commit)?;
+		}
+		Ok(())
+	}
+}
+
+impl<T: PosEntry> PruneableListIndex for MultiIndex<T> {
+	fn clear(&self, batch: &Batch<'_>) -> Result<(), Error> {
+		let mut list_count = 0;
+		let mut entry_count = 0;
+		let prefix = to_key(self.list_prefix, "");
+		for (key, _) in batch.db.iter::<ListWrapper<T>>(&prefix)? {
+			let _ = batch.delete(&key);
+			list_count += 1;
+		}
+		let prefix = to_key(self.entry_prefix, "");
+		for (key, _) in batch.db.iter::<ListEntry<T>>(&prefix)? {
+			let _ = batch.delete(&key);
+			entry_count += 1;
+		}
+		debug!(
+			"clear: lists deleted: {}, entries deleted: {}",
+			list_count, entry_count
+		);
+		Ok(())
+	}
+
+	/// Pruning will be more performant than full rebuild but not yet necessary.
+	fn prune(
+		&self,
+		_batch: &Batch<'_>,
+		_commit: Commitment,
+		_cutoff_pos: u64,
+	) -> Result<(), Error> {
+		unimplemented!(
+			"we currently rebuild index on startup/compaction, pruning not yet implemented"
+		);
+	}
+
+	/// Pop off the back/tail of the linked list.
+	/// Used when pruning old data.
+	fn pop_pos_back(&self, batch: &Batch<'_>, commit: Commitment) -> Result<Option<T>, Error> {
+		match self.get_list(batch, commit)? {
+			None => Ok(None),
+			Some(ListWrapper::Single { pos }) => {
+				batch.delete(&self.list_key(commit))?;
+				Ok(Some(pos))
+			}
+			Some(ListWrapper::Multi { head, tail }) => {
+				if let Some(ListEntry::Tail {
+					pos: current_pos,
+					prev: current_prev,
+				}) = self.get_entry(batch, commit, tail)?
+				{
+					match self.get_entry(batch, commit, current_prev)? {
+						Some(ListEntry::Middle { pos, prev, .. }) => {
+							let tail = ListEntry::Tail { pos, prev };
+							let list: ListWrapper<T> = ListWrapper::Multi {
+								head,
+								tail: pos.pos(),
+							};
+							batch.delete(&self.entry_key(commit, current_pos.pos()))?;
+							batch
+								.db
+								.put_ser(&self.entry_key(commit, pos.pos()), &tail)?;
+							batch.db.put_ser(&self.list_key(commit), &list)?;
+							Ok(Some(current_pos))
+						}
+						Some(ListEntry::Head { pos, .. }) => {
+							let list = ListWrapper::Single { pos };
+							batch.delete(&self.entry_key(commit, current_pos.pos()))?;
+							batch.db.put_ser(&self.list_key(commit), &list)?;
+							Ok(Some(current_pos))
+						}
+						Some(_) => Err(Error::OtherErr("prev was unexpected".into())),
+						None => Err(Error::OtherErr("prev missing".into())),
+					}
+				} else {
+					Err(Error::OtherErr("expected tail to be tail variant".into()))
+				}
+			}
+		}
+	}
+}
+
+/// Something that tracks pos (in an MMR).
+pub trait PosEntry: Readable + Writeable + Copy {
+	/// Accessor for the underlying (MMR) pos.
+	fn pos(&self) -> u64;
+}
+
+impl PosEntry for CommitPos {
+	fn pos(&self) -> u64 {
+		self.pos
+	}
+}
+
+/// Entry maintained in the list index.
+pub trait ListIndexEntry: Readable + Writeable {
+	/// Type of the underlying pos indexed in the list.
+	type Pos: PosEntry;
+
+	/// Accessor for the underlying pos.
+	fn get_pos(&self) -> Self::Pos;
+}
+
+impl<T> ListIndexEntry for ListEntry<T>
+where
+	T: PosEntry,
+{
+	type Pos = T;
+
+	/// Read the common pos from the various enum variants.
+	fn get_pos(&self) -> Self::Pos {
+		match self {
+			Self::Head { pos, .. } => *pos,
+			Self::Tail { pos, .. } => *pos,
+			Self::Middle { pos, .. } => *pos,
+		}
+	}
+}
+
+/// Head|Middle|Tail variants for the linked list entries.
+pub enum ListEntry<T> {
+	/// Head of ther list.
+	Head {
+		/// The thing in the list.
+		pos: T,
+		/// The next entry in the list.
+		next: u64,
+	},
+	/// Tail of the list.
+	Tail {
+		/// The thing in the list.
+		pos: T,
+		/// The previous entry in the list.
+		prev: u64,
+	},
+	/// An entry in the middle of the list.
+	Middle {
+		/// The thing in the list.
+		pos: T,
+		/// The next entry in the list.
+		next: u64,
+		/// The previous entry in the list.
+		prev: u64,
+	},
+}
+
+impl<T> Writeable for ListEntry<T>
+where
+	T: Writeable,
+{
+	/// Write first byte representing the variant, followed by variant specific data.
+	fn write<W: Writer>(&self, writer: &mut W) -> Result<(), ser::Error> {
+		match self {
+			ListEntry::Head { pos, next } => {
+				ListEntryVariant::Head.write(writer)?;
+				pos.write(writer)?;
+				writer.write_u64(*next)?;
+			}
+			ListEntry::Tail { pos, prev } => {
+				ListEntryVariant::Tail.write(writer)?;
+				pos.write(writer)?;
+				writer.write_u64(*prev)?;
+			}
+			ListEntry::Middle { pos, next, prev } => {
+				ListEntryVariant::Middle.write(writer)?;
+				pos.write(writer)?;
+				writer.write_u64(*next)?;
+				writer.write_u64(*prev)?;
+			}
+		}
+		Ok(())
+	}
+}
+
+impl<T> Readable for ListEntry<T>
+where
+	T: Readable,
+{
+	/// Read the first byte to determine what needs to be read beyond that.
+	fn read<R: Reader>(reader: &mut R) -> Result<ListEntry<T>, ser::Error> {
+		let entry = match ListEntryVariant::read(reader)? {
+			ListEntryVariant::Head => ListEntry::Head {
+				pos: T::read(reader)?,
+				next: reader.read_u64()?,
+			},
+			ListEntryVariant::Tail => ListEntry::Tail {
+				pos: T::read(reader)?,
+				prev: reader.read_u64()?,
+			},
+			ListEntryVariant::Middle => ListEntry::Middle {
+				pos: T::read(reader)?,
+				next: reader.read_u64()?,
+				prev: reader.read_u64()?,
+			},
+		};
+		Ok(entry)
+	}
+}
diff --git a/chain/src/pipe.rs b/chain/src/pipe.rs
index f92a8eb86..2db6b1bf2 100644
--- a/chain/src/pipe.rs
+++ b/chain/src/pipe.rs
@@ -227,9 +227,6 @@ pub fn sync_block_headers(
 /// Note: In contrast to processing a full block we treat "already known" as success
 /// to allow processing to continue (for header itself).
 pub fn process_block_header(header: &BlockHeader, ctx: &mut BlockContext<'_>) -> Result<(), Error> {
-	// Check this header is not an orphan, we must know about the previous header to continue.
-	let prev_header = ctx.batch.get_previous_header(&header)?;
-
 	// If we have already processed the full block for this header then done.
 	// Note: "already known" in this context is success so subsequent processing can continue.
 	{
@@ -239,6 +236,9 @@ pub fn process_block_header(header: &BlockHeader, ctx: &mut BlockContext<'_>) ->
 		}
 	}
 
+	// Check this header is not an orphan, we must know about the previous header to continue.
+	let prev_header = ctx.batch.get_previous_header(&header)?;
+
 	// If we have not yet seen the full block then check if we have seen this header.
 	// If it does not increase total_difficulty beyond our current header_head
 	// then we can (re)accept this header and process the full block (or request it).
diff --git a/chain/src/store.rs b/chain/src/store.rs
index 0dee43cd1..aca5e1ffe 100644
--- a/chain/src/store.rs
+++ b/chain/src/store.rs
@@ -19,6 +19,7 @@ use crate::core::core::hash::{Hash, Hashed};
 use crate::core::core::{Block, BlockHeader, BlockSums};
 use crate::core::pow::Difficulty;
 use crate::core::ser::ProtocolVersion;
+use crate::linked_list::MultiIndex;
 use crate::types::{CommitPos, Tip};
 use crate::util::secp::pedersen::Commitment;
 use croaring::Bitmap;
@@ -35,6 +36,12 @@ const HEAD_PREFIX: u8 = b'H';
 const TAIL_PREFIX: u8 = b'T';
 const HEADER_HEAD_PREFIX: u8 = b'G';
 const OUTPUT_POS_PREFIX: u8 = b'p';
+
+/// Prefix for NRD kernel pos index lists.
+pub const NRD_KERNEL_LIST_PREFIX: u8 = b'K';
+/// Prefix for NRD kernel pos index entries.
+pub const NRD_KERNEL_ENTRY_PREFIX: u8 = b'k';
+
 const BLOCK_INPUT_BITMAP_PREFIX: u8 = b'B';
 const BLOCK_SUMS_PREFIX: u8 = b'M';
 const BLOCK_SPENT_PREFIX: u8 = b'S';
@@ -61,9 +68,7 @@ impl ChainStore {
 			db: db_with_version,
 		}
 	}
-}
 
-impl ChainStore {
 	/// The current chain head.
 	pub fn head(&self) -> Result<Tip, Error> {
 		option_to_not_found(self.db.get_ser(&[HEAD_PREFIX]), || "HEAD".to_owned())
@@ -144,7 +149,8 @@ impl ChainStore {
 /// An atomic batch in which all changes can be committed all at once or
 /// discarded on error.
 pub struct Batch<'a> {
-	db: store::Batch<'a>,
+	/// The underlying db instance.
+	pub db: store::Batch<'a>,
 }
 
 impl<'a> Batch<'a> {
@@ -475,3 +481,10 @@ impl<'a> Iterator for DifficultyIter<'a> {
 		}
 	}
 }
+
+/// Init the NRD "recent history" kernel index backed by the underlying db.
+/// List index supports multiple entries per key, maintaining insertion order.
+/// Allows for fast lookup of the most recent entry per excess commitment.
+pub fn nrd_recent_kernel_index() -> MultiIndex<CommitPos> {
+	MultiIndex::init(NRD_KERNEL_LIST_PREFIX, NRD_KERNEL_ENTRY_PREFIX)
+}
diff --git a/chain/src/txhashset/txhashset.rs b/chain/src/txhashset/txhashset.rs
index af7b099fc..548562822 100644
--- a/chain/src/txhashset/txhashset.rs
+++ b/chain/src/txhashset/txhashset.rs
@@ -15,14 +15,19 @@
 //! Utility structs to handle the 3 MMRs (output, rangeproof,
 //! kernel) along the overall header MMR conveniently and transactionally.
 
+use crate::core::consensus::WEEK_HEIGHT;
 use crate::core::core::committed::Committed;
 use crate::core::core::hash::{Hash, Hashed};
 use crate::core::core::merkle_proof::MerkleProof;
 use crate::core::core::pmmr::{self, Backend, ReadonlyPMMR, RewindablePMMR, PMMR};
-use crate::core::core::{Block, BlockHeader, Input, Output, OutputIdentifier, TxKernel};
+use crate::core::core::{
+	Block, BlockHeader, Input, KernelFeatures, Output, OutputIdentifier, TxKernel,
+};
+use crate::core::global;
 use crate::core::ser::{PMMRable, ProtocolVersion};
 use crate::error::{Error, ErrorKind};
-use crate::store::{Batch, ChainStore};
+use crate::linked_list::{ListIndex, PruneableListIndex, RewindableListIndex};
+use crate::store::{self, Batch, ChainStore};
 use crate::txhashset::bitmap_accumulator::BitmapAccumulator;
 use crate::txhashset::{RewindableKernelView, UTXOView};
 use crate::types::{CommitPos, OutputRoots, Tip, TxHashSetRoots, TxHashsetWriteStatus};
@@ -375,6 +380,86 @@ impl TxHashSet {
 		Ok(())
 	}
 
+	/// (Re)build the NRD kernel_pos index based on 2 weeks of recent kernel history.
+	pub fn init_recent_kernel_pos_index(
+		&self,
+		header_pmmr: &PMMRHandle<BlockHeader>,
+		batch: &Batch<'_>,
+	) -> Result<(), Error> {
+		let head = batch.head()?;
+		let cutoff = head.height.saturating_sub(WEEK_HEIGHT * 2);
+		let cutoff_hash = header_pmmr.get_header_hash_by_height(cutoff)?;
+		let cutoff_header = batch.get_block_header(&cutoff_hash)?;
+		self.verify_kernel_pos_index(&cutoff_header, header_pmmr, batch)
+	}
+
+	/// Verify and (re)build the NRD kernel_pos index from the provided header onwards.
+	pub fn verify_kernel_pos_index(
+		&self,
+		from_header: &BlockHeader,
+		header_pmmr: &PMMRHandle<BlockHeader>,
+		batch: &Batch<'_>,
+	) -> Result<(), Error> {
+		if !global::is_nrd_enabled() {
+			return Ok(());
+		}
+
+		let now = Instant::now();
+		let kernel_index = store::nrd_recent_kernel_index();
+		kernel_index.clear(batch)?;
+
+		let prev_size = if from_header.height == 0 {
+			0
+		} else {
+			let prev_header = batch.get_previous_header(&from_header)?;
+			prev_header.kernel_mmr_size
+		};
+
+		debug!(
+			"verify_kernel_pos_index: header: {} at {}, prev kernel_mmr_size: {}",
+			from_header.hash(),
+			from_header.height,
+			prev_size,
+		);
+
+		let kernel_pmmr =
+			ReadonlyPMMR::at(&self.kernel_pmmr_h.backend, self.kernel_pmmr_h.last_pos);
+
+		let mut current_pos = prev_size + 1;
+		let mut current_header = from_header.clone();
+		let mut count = 0;
+		while current_pos <= self.kernel_pmmr_h.last_pos {
+			if pmmr::is_leaf(current_pos) {
+				if let Some(kernel) = kernel_pmmr.get_data(current_pos) {
+					match kernel.features {
+						KernelFeatures::NoRecentDuplicate { .. } => {
+							while current_pos > current_header.kernel_mmr_size {
+								let hash = header_pmmr
+									.get_header_hash_by_height(current_header.height + 1)?;
+								current_header = batch.get_block_header(&hash)?;
+							}
+							let new_pos = CommitPos {
+								pos: current_pos,
+								height: current_header.height,
+							};
+							apply_kernel_rules(&kernel, new_pos, batch)?;
+							count += 1;
+						}
+						_ => {}
+					}
+				}
+			}
+			current_pos += 1;
+		}
+
+		debug!(
+			"verify_kernel_pos_index: pushed {} entries to the index, took {}s",
+			count,
+			now.elapsed().as_secs(),
+		);
+		Ok(())
+	}
+
 	/// (Re)build the output_pos index to be consistent with the current UTXO set.
 	/// Remove any "stale" index entries that do not correspond to outputs in the UTXO set.
 	/// Add any missing index entries based on UTXO set.
@@ -453,7 +538,7 @@ impl TxHashSet {
 			}
 		}
 		debug!(
-			"init_height_pos_index: added entries for {} utxos, took {}s",
+			"init_output_pos_index: added entries for {} utxos, took {}s",
 			total_outputs,
 			now.elapsed().as_secs(),
 		);
@@ -933,16 +1018,16 @@ impl<'a> Extension<'a> {
 		// Remove the spent output from the output_pos index.
 		let mut spent = vec![];
 		for input in b.inputs() {
-			let spent_pos = self.apply_input(input, batch)?;
-			affected_pos.push(spent_pos.pos);
+			let pos = self.apply_input(input, batch)?;
+			affected_pos.push(pos.pos);
 			batch.delete_output_pos_height(&input.commitment())?;
-			spent.push(spent_pos);
+			spent.push(pos);
 		}
 		batch.save_spent_index(&b.hash(), &spent)?;
 
-		for kernel in b.kernels() {
-			self.apply_kernel(kernel)?;
-		}
+		// Apply the kernels to the kernel MMR.
+		// Note: This validates and NRD relative height locks via the "recent" kernel index.
+		self.apply_kernels(b.kernels(), b.header.height, batch)?;
 
 		// Update our BitmapAccumulator based on affected outputs (both spent and created).
 		self.apply_to_bitmap_accumulator(&affected_pos)?;
@@ -1037,12 +1122,32 @@ impl<'a> Extension<'a> {
 		Ok(output_pos)
 	}
 
+	/// Apply kernels to the kernel MMR.
+	/// Validate any NRD relative height locks via the "recent" kernel index.
+	/// Note: This is used for both block processing and tx validation.
+	/// In the block processing case we use the block height.
+	/// In the tx validation case we use the "next" block height based on current chain head.
+	pub fn apply_kernels(
+		&mut self,
+		kernels: &[TxKernel],
+		height: u64,
+		batch: &Batch<'_>,
+	) -> Result<(), Error> {
+		for kernel in kernels {
+			let pos = self.apply_kernel(kernel)?;
+			let commit_pos = CommitPos { pos, height };
+			apply_kernel_rules(kernel, commit_pos, batch)?;
+		}
+		Ok(())
+	}
+
 	/// Push kernel onto MMR (hash and data files).
-	fn apply_kernel(&mut self, kernel: &TxKernel) -> Result<(), Error> {
-		self.kernel_pmmr
+	fn apply_kernel(&mut self, kernel: &TxKernel) -> Result<u64, Error> {
+		let pos = self
+			.kernel_pmmr
 			.push(kernel)
 			.map_err(&ErrorKind::TxHashSetErr)?;
-		Ok(())
+		Ok(pos)
 	}
 
 	/// Build a Merkle proof for the given output and the block
@@ -1109,7 +1214,8 @@ impl<'a> Extension<'a> {
 			let mut affected_pos = vec![];
 			let mut current = head_header;
 			while header.height < current.height {
-				let mut affected_pos_single_block = self.rewind_single_block(&current, batch)?;
+				let block = batch.get_block(&current.hash())?;
+				let mut affected_pos_single_block = self.rewind_single_block(&block, batch)?;
 				affected_pos.append(&mut affected_pos_single_block);
 				current = batch.get_previous_header(&current)?;
 			}
@@ -1126,11 +1232,10 @@ impl<'a> Extension<'a> {
 	// Rewind the MMRs and the output_pos index.
 	// Returns a vec of "affected_pos" so we can apply the necessary updates to the bitmap
 	// accumulator in a single pass for all rewound blocks.
-	fn rewind_single_block(
-		&mut self,
-		header: &BlockHeader,
-		batch: &Batch<'_>,
-	) -> Result<Vec<u64>, Error> {
+	fn rewind_single_block(&mut self, block: &Block, batch: &Batch<'_>) -> Result<Vec<u64>, Error> {
+		let header = &block.header;
+		let prev_header = batch.get_previous_header(&header)?;
+
 		// The spent index allows us to conveniently "unspend" everything in a block.
 		let spent = batch.get_spent_index(&header.hash());
 
@@ -1149,7 +1254,7 @@ impl<'a> Extension<'a> {
 		if header.height == 0 {
 			self.rewind_mmrs_to_pos(0, 0, &spent_pos)?;
 		} else {
-			let prev = batch.get_previous_header(&header)?;
+			let prev = batch.get_previous_header(header)?;
 			self.rewind_mmrs_to_pos(prev.output_mmr_size, prev.kernel_mmr_size, &spent_pos)?;
 		}
 
@@ -1160,7 +1265,6 @@ impl<'a> Extension<'a> {
 		affected_pos.push(self.output_pmmr.last_pos);
 
 		// Remove any entries from the output_pos created by the block being rewound.
-		let block = batch.get_block(&header.hash())?;
 		let mut missing_count = 0;
 		for out in block.outputs() {
 			if batch.delete_output_pos_height(&out.commitment()).is_err() {
@@ -1176,6 +1280,17 @@ impl<'a> Extension<'a> {
 			);
 		}
 
+		// If NRD feature flag is enabled rewind the kernel_pos index
+		// for any NRD kernels in the block being rewound.
+		if global::is_nrd_enabled() {
+			let kernel_index = store::nrd_recent_kernel_index();
+			for kernel in block.kernels() {
+				if let KernelFeatures::NoRecentDuplicate { .. } = kernel.features {
+					kernel_index.rewind(batch, kernel.excess(), prev_header.kernel_mmr_size)?;
+				}
+			}
+		}
+
 		// Update output_pos based on "unspending" all spent pos from this block.
 		// This is necessary to ensure the output_pos index correclty reflects a
 		// reused output commitment. For example an output at pos 1, spent, reused at pos 2.
@@ -1649,3 +1764,36 @@ fn input_pos_to_rewind(
 	}
 	Ok(bitmap)
 }
+
+/// If NRD enabled then enforce NRD relative height rules.
+fn apply_kernel_rules(kernel: &TxKernel, pos: CommitPos, batch: &Batch<'_>) -> Result<(), Error> {
+	if !global::is_nrd_enabled() {
+		return Ok(());
+	}
+	match kernel.features {
+		KernelFeatures::NoRecentDuplicate {
+			relative_height, ..
+		} => {
+			let kernel_index = store::nrd_recent_kernel_index();
+			debug!("checking NRD index: {:?}", kernel.excess());
+			if let Some(prev) = kernel_index.peek_pos(batch, kernel.excess())? {
+				let diff = pos.height.saturating_sub(prev.height);
+				debug!(
+					"NRD check: {}, {:?}, {:?}",
+					pos.height, prev, relative_height
+				);
+				if diff < relative_height.into() {
+					return Err(ErrorKind::NRDRelativeHeight.into());
+				}
+			}
+			debug!(
+				"pushing entry to NRD index: {:?}: {:?}",
+				kernel.excess(),
+				pos,
+			);
+			kernel_index.push_pos(batch, kernel.excess(), pos)?;
+		}
+		_ => {}
+	}
+	Ok(())
+}
diff --git a/chain/src/types.rs b/chain/src/types.rs
index 12e2d78b6..47375bf67 100644
--- a/chain/src/types.rs
+++ b/chain/src/types.rs
@@ -303,7 +303,7 @@ impl OutputRoots {
 }
 
 /// Minimal struct representing a known MMR position and associated block height.
-#[derive(Debug)]
+#[derive(Clone, Copy, Debug, PartialEq)]
 pub struct CommitPos {
 	/// MMR position
 	pub pos: u64,
diff --git a/chain/tests/mine_simple_chain.rs b/chain/tests/mine_simple_chain.rs
index e61476828..658240143 100644
--- a/chain/tests/mine_simple_chain.rs
+++ b/chain/tests/mine_simple_chain.rs
@@ -530,13 +530,11 @@ fn longer_fork() {
 fn spend_rewind_spend() {
 	global::set_local_chain_type(ChainTypes::AutomatedTesting);
 	util::init_test_logger();
-	clean_output_dir(".grin_spend_rewind_spend");
+	let chain_dir = ".grin_spend_rewind_spend";
+	clean_output_dir(chain_dir);
 
 	{
-		let chain = init_chain(
-			".grin_spend_rewind_spend",
-			pow::mine_genesis_block().unwrap(),
-		);
+		let chain = init_chain(chain_dir, pow::mine_genesis_block().unwrap());
 		let prev = chain.head_header().unwrap();
 		let kc = ExtKeychain::from_random_seed(false).unwrap();
 		let pb = ProofBuilder::new(&kc);
@@ -601,7 +599,7 @@ fn spend_rewind_spend() {
 		}
 	}
 
-	clean_output_dir(".grin_spend_rewind_spend");
+	clean_output_dir(chain_dir);
 }
 
 #[test]
diff --git a/chain/tests/nrd_validation_rules.rs b/chain/tests/nrd_validation_rules.rs
new file mode 100644
index 000000000..693e25e26
--- /dev/null
+++ b/chain/tests/nrd_validation_rules.rs
@@ -0,0 +1,400 @@
+// Copyright 2020 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+mod chain_test_helper;
+
+use grin_chain as chain;
+use grin_core as core;
+use grin_keychain as keychain;
+use grin_util as util;
+
+use self::chain_test_helper::{clean_output_dir, genesis_block, init_chain};
+use crate::chain::{Chain, Error, Options};
+use crate::core::core::{
+	Block, BlockHeader, KernelFeatures, NRDRelativeHeight, Transaction, TxKernel,
+};
+use crate::core::libtx::{aggsig, build, reward, ProofBuilder};
+use crate::core::{consensus, global, pow};
+use crate::keychain::{BlindingFactor, ExtKeychain, ExtKeychainPath, Identifier, Keychain};
+use chrono::Duration;
+
+fn build_block<K>(
+	chain: &Chain,
+	keychain: &K,
+	key_id: &Identifier,
+	txs: Vec<Transaction>,
+) -> Result<Block, Error>
+where
+	K: Keychain,
+{
+	let prev = chain.head_header()?;
+	build_block_from_prev(&prev, chain, keychain, key_id, txs)
+}
+
+fn build_block_from_prev<K>(
+	prev: &BlockHeader,
+	chain: &Chain,
+	keychain: &K,
+	key_id: &Identifier,
+	txs: Vec<Transaction>,
+) -> Result<Block, Error>
+where
+	K: Keychain,
+{
+	let next_header_info =
+		consensus::next_difficulty(prev.height, chain.difficulty_iter().unwrap());
+	let fee = txs.iter().map(|x| x.fee()).sum();
+	let reward =
+		reward::output(keychain, &ProofBuilder::new(keychain), key_id, fee, false).unwrap();
+
+	let mut block = Block::new(prev, txs, next_header_info.clone().difficulty, reward)?;
+
+	block.header.timestamp = prev.timestamp + Duration::seconds(60);
+	block.header.pow.secondary_scaling = next_header_info.secondary_scaling;
+
+	chain.set_txhashset_roots(&mut block)?;
+
+	block.header.pow.proof.edge_bits = global::min_edge_bits();
+	pow::pow_size(
+		&mut block.header,
+		next_header_info.difficulty,
+		global::proofsize(),
+		global::min_edge_bits(),
+	)
+	.unwrap();
+	Ok(block)
+}
+
+#[test]
+fn process_block_nrd_validation() -> Result<(), Error> {
+	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+	global::set_local_nrd_enabled(true);
+
+	util::init_test_logger();
+
+	let chain_dir = ".grin.nrd_kernel";
+	clean_output_dir(chain_dir);
+
+	let keychain = ExtKeychain::from_random_seed(false).unwrap();
+	let builder = ProofBuilder::new(&keychain);
+	let genesis = genesis_block(&keychain);
+	let chain = init_chain(chain_dir, genesis.clone());
+
+	for n in 1..9 {
+		let key_id = ExtKeychainPath::new(1, n, 0, 0, 0).to_identifier();
+		let block = build_block(&chain, &keychain, &key_id, vec![])?;
+		chain.process_block(block, Options::NONE)?;
+	}
+
+	assert_eq!(chain.head()?.height, 8);
+
+	let mut kernel = TxKernel::with_features(KernelFeatures::NoRecentDuplicate {
+		fee: 20000,
+		relative_height: NRDRelativeHeight::new(2)?,
+	});
+
+	// // Construct the message to be signed.
+	let msg = kernel.msg_to_sign().unwrap();
+
+	// // Generate a kernel with public excess and associated signature.
+	let excess = BlindingFactor::rand(&keychain.secp());
+	let skey = excess.secret_key(&keychain.secp()).unwrap();
+	kernel.excess = keychain.secp().commit(0, skey).unwrap();
+	let pubkey = &kernel.excess.to_pubkey(&keychain.secp()).unwrap();
+	kernel.excess_sig =
+		aggsig::sign_with_blinding(&keychain.secp(), &msg, &excess, Some(&pubkey)).unwrap();
+	kernel.verify().unwrap();
+
+	let key_id1 = ExtKeychainPath::new(1, 1, 0, 0, 0).to_identifier();
+	let key_id2 = ExtKeychainPath::new(1, 2, 0, 0, 0).to_identifier();
+	let key_id3 = ExtKeychainPath::new(1, 3, 0, 0, 0).to_identifier();
+
+	let tx1 = build::transaction_with_kernel(
+		vec![
+			build::coinbase_input(consensus::REWARD, key_id1.clone()),
+			build::output(consensus::REWARD - 20000, key_id2.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let tx2 = build::transaction_with_kernel(
+		vec![
+			build::input(consensus::REWARD - 20000, key_id2.clone()),
+			build::output(consensus::REWARD - 40000, key_id3.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let key_id9 = ExtKeychainPath::new(1, 9, 0, 0, 0).to_identifier();
+	let key_id10 = ExtKeychainPath::new(1, 10, 0, 0, 0).to_identifier();
+	let key_id11 = ExtKeychainPath::new(1, 11, 0, 0, 0).to_identifier();
+
+	// Block containing both tx1 and tx2 is invalid.
+	// Not valid for two duplicate NRD kernels to co-exist in same block.
+	// Jump through some hoops to build an invalid block by disabling the feature flag.
+	// TODO - We need a good way of building invalid stuff in tests.
+	let block_invalid_9 = {
+		global::set_local_nrd_enabled(false);
+		let block = build_block(&chain, &keychain, &key_id9, vec![tx1.clone(), tx2.clone()])?;
+		global::set_local_nrd_enabled(true);
+		block
+	};
+	assert!(chain.process_block(block_invalid_9, Options::NONE).is_err());
+
+	assert_eq!(chain.head()?.height, 8);
+
+	// Block containing tx1 is valid.
+	let block_valid_9 = build_block(&chain, &keychain, &key_id9, vec![tx1.clone()])?;
+	chain.process_block(block_valid_9, Options::NONE)?;
+
+	// Block at height 10 is invalid if it contains tx2 due to NRD rule (relative_height=2).
+	// Jump through some hoops to build an invalid block by disabling the feature flag.
+	// TODO - We need a good way of building invalid stuff in tests.
+	let block_invalid_10 = {
+		global::set_local_nrd_enabled(false);
+		let block = build_block(&chain, &keychain, &key_id10, vec![tx2.clone()])?;
+		global::set_local_nrd_enabled(true);
+		block
+	};
+
+	assert!(chain
+		.process_block(block_invalid_10, Options::NONE)
+		.is_err());
+
+	// Block at height 10 is valid if we do not include tx2.
+	let block_valid_10 = build_block(&chain, &keychain, &key_id10, vec![])?;
+	chain.process_block(block_valid_10, Options::NONE)?;
+
+	// Block at height 11 is valid with tx2 as NRD rule is met (relative_height=2).
+	let block_valid_11 = build_block(&chain, &keychain, &key_id11, vec![tx2.clone()])?;
+	chain.process_block(block_valid_11, Options::NONE)?;
+
+	clean_output_dir(chain_dir);
+	Ok(())
+}
+
+#[test]
+fn process_block_nrd_validation_relative_height_1() -> Result<(), Error> {
+	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+	global::set_local_nrd_enabled(true);
+
+	util::init_test_logger();
+
+	let chain_dir = ".grin.nrd_kernel_relative_height_1";
+	clean_output_dir(chain_dir);
+
+	let keychain = ExtKeychain::from_random_seed(false).unwrap();
+	let builder = ProofBuilder::new(&keychain);
+	let genesis = genesis_block(&keychain);
+	let chain = init_chain(chain_dir, genesis.clone());
+
+	for n in 1..9 {
+		let key_id = ExtKeychainPath::new(1, n, 0, 0, 0).to_identifier();
+		let block = build_block(&chain, &keychain, &key_id, vec![])?;
+		chain.process_block(block, Options::NONE)?;
+	}
+
+	assert_eq!(chain.head()?.height, 8);
+
+	let mut kernel = TxKernel::with_features(KernelFeatures::NoRecentDuplicate {
+		fee: 20000,
+		relative_height: NRDRelativeHeight::new(1)?,
+	});
+
+	// // Construct the message to be signed.
+	let msg = kernel.msg_to_sign().unwrap();
+
+	// // Generate a kernel with public excess and associated signature.
+	let excess = BlindingFactor::rand(&keychain.secp());
+	let skey = excess.secret_key(&keychain.secp()).unwrap();
+	kernel.excess = keychain.secp().commit(0, skey).unwrap();
+	let pubkey = &kernel.excess.to_pubkey(&keychain.secp()).unwrap();
+	kernel.excess_sig =
+		aggsig::sign_with_blinding(&keychain.secp(), &msg, &excess, Some(&pubkey)).unwrap();
+	kernel.verify().unwrap();
+
+	let key_id1 = ExtKeychainPath::new(1, 1, 0, 0, 0).to_identifier();
+	let key_id2 = ExtKeychainPath::new(1, 2, 0, 0, 0).to_identifier();
+	let key_id3 = ExtKeychainPath::new(1, 3, 0, 0, 0).to_identifier();
+
+	let tx1 = build::transaction_with_kernel(
+		vec![
+			build::coinbase_input(consensus::REWARD, key_id1.clone()),
+			build::output(consensus::REWARD - 20000, key_id2.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let tx2 = build::transaction_with_kernel(
+		vec![
+			build::input(consensus::REWARD - 20000, key_id2.clone()),
+			build::output(consensus::REWARD - 40000, key_id3.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let key_id9 = ExtKeychainPath::new(1, 9, 0, 0, 0).to_identifier();
+	let key_id10 = ExtKeychainPath::new(1, 10, 0, 0, 0).to_identifier();
+
+	// Block containing both tx1 and tx2 is invalid.
+	// Not valid for two duplicate NRD kernels to co-exist in same block.
+	// Jump through some hoops here to build an "invalid" block.
+	// TODO - We need a good way of building invalid stuff for tests.
+	let block_invalid_9 = {
+		global::set_local_nrd_enabled(false);
+		let block = build_block(&chain, &keychain, &key_id9, vec![tx1.clone(), tx2.clone()])?;
+		global::set_local_nrd_enabled(true);
+		block
+	};
+
+	assert!(chain.process_block(block_invalid_9, Options::NONE).is_err());
+
+	assert_eq!(chain.head()?.height, 8);
+
+	// Block containing tx1 is valid.
+	let block_valid_9 = build_block(&chain, &keychain, &key_id9, vec![tx1.clone()])?;
+	chain.process_block(block_valid_9, Options::NONE)?;
+
+	// Block at height 10 is valid with tx2 as NRD rule is met (relative_height=1).
+	let block_valid_10 = build_block(&chain, &keychain, &key_id10, vec![tx2.clone()])?;
+	chain.process_block(block_valid_10, Options::NONE)?;
+
+	clean_output_dir(chain_dir);
+	Ok(())
+}
+
+#[test]
+fn process_block_nrd_validation_fork() -> Result<(), Error> {
+	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+	global::set_local_nrd_enabled(true);
+
+	util::init_test_logger();
+
+	let chain_dir = ".grin.nrd_kernel_fork";
+	clean_output_dir(chain_dir);
+
+	let keychain = ExtKeychain::from_random_seed(false).unwrap();
+	let builder = ProofBuilder::new(&keychain);
+	let genesis = genesis_block(&keychain);
+	let chain = init_chain(chain_dir, genesis.clone());
+
+	for n in 1..9 {
+		let key_id = ExtKeychainPath::new(1, n, 0, 0, 0).to_identifier();
+		let block = build_block(&chain, &keychain, &key_id, vec![])?;
+		chain.process_block(block, Options::NONE)?;
+	}
+
+	let header_8 = chain.head_header()?;
+	assert_eq!(header_8.height, 8);
+
+	let mut kernel = TxKernel::with_features(KernelFeatures::NoRecentDuplicate {
+		fee: 20000,
+		relative_height: NRDRelativeHeight::new(2)?,
+	});
+
+	// // Construct the message to be signed.
+	let msg = kernel.msg_to_sign().unwrap();
+
+	// // Generate a kernel with public excess and associated signature.
+	let excess = BlindingFactor::rand(&keychain.secp());
+	let skey = excess.secret_key(&keychain.secp()).unwrap();
+	kernel.excess = keychain.secp().commit(0, skey).unwrap();
+	let pubkey = &kernel.excess.to_pubkey(&keychain.secp()).unwrap();
+	kernel.excess_sig =
+		aggsig::sign_with_blinding(&keychain.secp(), &msg, &excess, Some(&pubkey)).unwrap();
+	kernel.verify().unwrap();
+
+	let key_id1 = ExtKeychainPath::new(1, 1, 0, 0, 0).to_identifier();
+	let key_id2 = ExtKeychainPath::new(1, 2, 0, 0, 0).to_identifier();
+	let key_id3 = ExtKeychainPath::new(1, 3, 0, 0, 0).to_identifier();
+
+	let tx1 = build::transaction_with_kernel(
+		vec![
+			build::coinbase_input(consensus::REWARD, key_id1.clone()),
+			build::output(consensus::REWARD - 20000, key_id2.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let tx2 = build::transaction_with_kernel(
+		vec![
+			build::input(consensus::REWARD - 20000, key_id2.clone()),
+			build::output(consensus::REWARD - 40000, key_id3.clone()),
+		],
+		kernel.clone(),
+		excess.clone(),
+		&keychain,
+		&builder,
+	)
+	.unwrap();
+
+	let key_id9 = ExtKeychainPath::new(1, 9, 0, 0, 0).to_identifier();
+	let key_id10 = ExtKeychainPath::new(1, 10, 0, 0, 0).to_identifier();
+	let key_id11 = ExtKeychainPath::new(1, 11, 0, 0, 0).to_identifier();
+
+	// Block containing tx1 is valid.
+	let block_valid_9 =
+		build_block_from_prev(&header_8, &chain, &keychain, &key_id9, vec![tx1.clone()])?;
+	chain.process_block(block_valid_9.clone(), Options::NONE)?;
+
+	// Block at height 10 is valid if we do not include tx2.
+	let block_valid_10 =
+		build_block_from_prev(&block_valid_9.header, &chain, &keychain, &key_id10, vec![])?;
+	chain.process_block(block_valid_10, Options::NONE)?;
+
+	// Process an alternative "fork" block also at height 9.
+	// The "other" block at height 9 should not affect this one in terms of NRD kernels
+	// as the recent kernel index should be rewound.
+	let block_valid_9b =
+		build_block_from_prev(&header_8, &chain, &keychain, &key_id9, vec![tx1.clone()])?;
+	chain.process_block(block_valid_9b.clone(), Options::NONE)?;
+
+	// Process an alternative block at height 10 on this same fork.
+	let block_valid_10b =
+		build_block_from_prev(&block_valid_9b.header, &chain, &keychain, &key_id10, vec![])?;
+	chain.process_block(block_valid_10b.clone(), Options::NONE)?;
+
+	// Block at height 11 is valid with tx2 as NRD rule is met (relative_height=2).
+	let block_valid_11b = build_block_from_prev(
+		&block_valid_10b.header,
+		&chain,
+		&keychain,
+		&key_id11,
+		vec![tx2.clone()],
+	)?;
+	chain.process_block(block_valid_11b, Options::NONE)?;
+
+	clean_output_dir(chain_dir);
+	Ok(())
+}
diff --git a/chain/tests/store_kernel_pos_index.rs b/chain/tests/store_kernel_pos_index.rs
new file mode 100644
index 000000000..1b74502c5
--- /dev/null
+++ b/chain/tests/store_kernel_pos_index.rs
@@ -0,0 +1,589 @@
+// Copyright 2020 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+use crate::chain::linked_list::{ListIndex, ListWrapper, PruneableListIndex, RewindableListIndex};
+use crate::chain::store::{self, ChainStore};
+use crate::chain::types::CommitPos;
+use crate::core::global;
+use crate::util::secp::pedersen::Commitment;
+use grin_chain as chain;
+use grin_core as core;
+use grin_store;
+use grin_util as util;
+mod chain_test_helper;
+use self::chain_test_helper::clean_output_dir;
+use crate::grin_store::Error;
+
+fn setup_test() {
+	util::init_test_logger();
+	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+}
+
+#[test]
+fn test_store_kernel_idx() {
+	setup_test();
+	let chain_dir = ".grin_idx_1";
+	clean_output_dir(chain_dir);
+
+	let commit = Commitment::from_vec(vec![]);
+
+	let store = ChainStore::new(chain_dir).unwrap();
+	let batch = store.batch().unwrap();
+	let index = store::nrd_recent_kernel_index();
+
+	assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 2, height: 2 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 2, tail: 1 })),
+	);
+
+	// Pos must always increase.
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Err(Error::OtherErr("pos must be increasing".into())),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+		Err(Error::OtherErr("pos must be increasing".into())),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.pop_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 2, height: 2 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 2, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.pop_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 2, height: 2 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 2, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.pop_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 2, height: 2 })),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(
+		index.pop_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+	// Cleanup chain directory
+	clean_output_dir(chain_dir);
+}
+
+#[test]
+fn test_store_kernel_idx_pop_back() {
+	setup_test();
+	let chain_dir = ".grin_idx_2";
+	clean_output_dir(chain_dir);
+
+	let commit = Commitment::from_vec(vec![]);
+
+	let store = ChainStore::new(chain_dir).unwrap();
+	let batch = store.batch().unwrap();
+	let index = store::nrd_recent_kernel_index();
+
+	assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(
+		index.pop_pos_back(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.pop_pos_back(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 2 })),
+	);
+
+	assert_eq!(
+		index.pop_pos_back(&batch, commit),
+		Ok(Some(CommitPos { pos: 2, height: 2 })),
+	);
+
+	assert_eq!(
+		index.peek_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 3, height: 3 }
+		})),
+	);
+
+	assert_eq!(
+		index.pop_pos_back(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+	clean_output_dir(chain_dir);
+}
+
+#[test]
+fn test_store_kernel_idx_rewind() {
+	setup_test();
+	let chain_dir = ".grin_idx_3";
+	clean_output_dir(chain_dir);
+
+	let commit = Commitment::from_vec(vec![]);
+
+	let store = ChainStore::new(chain_dir).unwrap();
+	let batch = store.batch().unwrap();
+	let index = store::nrd_recent_kernel_index();
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 1 })),
+	);
+
+	assert_eq!(index.rewind(&batch, commit, 1), Ok(()),);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	// Check we can safely noop rewind.
+	assert_eq!(index.rewind(&batch, commit, 2), Ok(()),);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(index.rewind(&batch, commit, 1), Ok(()),);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	// Check we can rewind back to 0.
+	assert_eq!(index.rewind(&batch, commit, 0), Ok(()),);
+
+	assert_eq!(index.get_list(&batch, commit), Ok(None),);
+
+	assert_eq!(index.rewind(&batch, commit, 0), Ok(()),);
+
+	// Now check we can rewind past the end of a list safely.
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.pop_pos_back(&batch, commit),
+		Ok(Some(CommitPos { pos: 1, height: 1 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 2 })),
+	);
+
+	assert_eq!(index.rewind(&batch, commit, 1), Ok(()),);
+
+	assert_eq!(index.get_list(&batch, commit), Ok(None),);
+
+	clean_output_dir(chain_dir);
+}
+
+#[test]
+fn test_store_kernel_idx_multiple_commits() {
+	setup_test();
+	let chain_dir = ".grin_idx_4";
+	clean_output_dir(chain_dir);
+
+	let commit = Commitment::from_vec(vec![]);
+	let commit2 = Commitment::from_vec(vec![1]);
+
+	let store = ChainStore::new(chain_dir).unwrap();
+	let batch = store.batch().unwrap();
+	let index = store::nrd_recent_kernel_index();
+
+	assert_eq!(index.get_list(&batch, commit), Ok(None));
+	assert_eq!(index.get_list(&batch, commit2), Ok(None));
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(index.get_list(&batch, commit2), Ok(None));
+
+	assert_eq!(
+		index.push_pos(&batch, commit2, CommitPos { pos: 2, height: 2 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit2),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 2, height: 2 }
+		})),
+	);
+
+	assert_eq!(
+		index.push_pos(&batch, commit, CommitPos { pos: 3, height: 3 }),
+		Ok(()),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Multi { head: 3, tail: 1 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit2),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 2, height: 2 }
+		})),
+	);
+
+	assert_eq!(
+		index.pop_pos(&batch, commit),
+		Ok(Some(CommitPos { pos: 3, height: 3 })),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 1, height: 1 }
+		})),
+	);
+
+	assert_eq!(
+		index.get_list(&batch, commit2),
+		Ok(Some(ListWrapper::Single {
+			pos: CommitPos { pos: 2, height: 2 }
+		})),
+	);
+
+	clean_output_dir(chain_dir);
+}
+
+#[test]
+fn test_store_kernel_idx_clear() -> Result<(), Error> {
+	setup_test();
+	let chain_dir = ".grin_idx_clear";
+	clean_output_dir(chain_dir);
+
+	let commit = Commitment::from_vec(vec![]);
+	let commit2 = Commitment::from_vec(vec![1]);
+
+	let store = ChainStore::new(chain_dir)?;
+	let index = store::nrd_recent_kernel_index();
+
+	// Add a couple of single entries to the index and commit the batch.
+	{
+		let batch = store.batch()?;
+		assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+		assert_eq!(index.get_list(&batch, commit), Ok(None));
+
+		assert_eq!(
+			index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+			Ok(()),
+		);
+
+		assert_eq!(
+			index.push_pos(
+				&batch,
+				commit2,
+				CommitPos {
+					pos: 10,
+					height: 10
+				}
+			),
+			Ok(()),
+		);
+
+		assert_eq!(
+			index.peek_pos(&batch, commit),
+			Ok(Some(CommitPos { pos: 1, height: 1 })),
+		);
+
+		assert_eq!(
+			index.get_list(&batch, commit),
+			Ok(Some(ListWrapper::Single {
+				pos: CommitPos { pos: 1, height: 1 }
+			})),
+		);
+
+		assert_eq!(
+			index.peek_pos(&batch, commit2),
+			Ok(Some(CommitPos {
+				pos: 10,
+				height: 10
+			})),
+		);
+
+		assert_eq!(
+			index.get_list(&batch, commit2),
+			Ok(Some(ListWrapper::Single {
+				pos: CommitPos {
+					pos: 10,
+					height: 10
+				}
+			})),
+		);
+
+		batch.commit()?;
+	}
+
+	// Clear the index and confirm everything was deleted as expected.
+	{
+		let batch = store.batch()?;
+		assert_eq!(index.clear(&batch), Ok(()));
+		assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+		assert_eq!(index.get_list(&batch, commit), Ok(None));
+		assert_eq!(index.peek_pos(&batch, commit2), Ok(None));
+		assert_eq!(index.get_list(&batch, commit2), Ok(None));
+		batch.commit()?;
+	}
+
+	// Add multiple entries to the index, commit the batch.
+	{
+		let batch = store.batch()?;
+		assert_eq!(
+			index.push_pos(&batch, commit, CommitPos { pos: 1, height: 1 }),
+			Ok(()),
+		);
+		assert_eq!(
+			index.push_pos(&batch, commit, CommitPos { pos: 2, height: 2 }),
+			Ok(()),
+		);
+		assert_eq!(
+			index.peek_pos(&batch, commit),
+			Ok(Some(CommitPos { pos: 2, height: 2 })),
+		);
+		assert_eq!(
+			index.get_list(&batch, commit),
+			Ok(Some(ListWrapper::Multi { head: 2, tail: 1 })),
+		);
+		batch.commit()?;
+	}
+
+	// Clear the index and confirm everything was deleted as expected.
+	{
+		let batch = store.batch()?;
+		assert_eq!(index.clear(&batch), Ok(()));
+		assert_eq!(index.peek_pos(&batch, commit), Ok(None));
+		assert_eq!(index.get_list(&batch, commit), Ok(None));
+		batch.commit()?;
+	}
+
+	clean_output_dir(chain_dir);
+	Ok(())
+}
diff --git a/core/src/core/transaction.rs b/core/src/core/transaction.rs
index b37cee0ed..a21c779c7 100644
--- a/core/src/core/transaction.rs
+++ b/core/src/core/transaction.rs
@@ -909,6 +909,36 @@ impl TransactionBody {
 		Ok(())
 	}
 
+	// It is never valid to have multiple duplicate NRD kernels (by public excess)
+	// in the same transaction or block. We check this here.
+	// We skip this check if NRD feature is not enabled.
+	fn verify_no_nrd_duplicates(&self) -> Result<(), Error> {
+		if !global::is_nrd_enabled() {
+			return Ok(());
+		}
+
+		let mut nrd_excess: Vec<Commitment> = self
+			.kernels
+			.iter()
+			.filter(|x| match x.features {
+				KernelFeatures::NoRecentDuplicate { .. } => true,
+				_ => false,
+			})
+			.map(|x| x.excess())
+			.collect();
+
+		// Sort and dedup and compare length to look for duplicates.
+		nrd_excess.sort();
+		let original_count = nrd_excess.len();
+		nrd_excess.dedup();
+		let dedup_count = nrd_excess.len();
+		if original_count == dedup_count {
+			Ok(())
+		} else {
+			Err(Error::InvalidNRDRelativeHeight)
+		}
+	}
+
 	// Verify that inputs|outputs|kernels are sorted in lexicographical order
 	// and that there are no duplicates (they are all unique within this transaction).
 	fn verify_sorted(&self) -> Result<(), Error> {
@@ -970,6 +1000,7 @@ impl TransactionBody {
 	/// * kernel signature verification
 	pub fn validate_read(&self, weighting: Weighting) -> Result<(), Error> {
 		self.verify_weight(weighting)?;
+		self.verify_no_nrd_duplicates()?;
 		self.verify_sorted()?;
 		self.verify_cut_through()?;
 		Ok(())
@@ -1227,8 +1258,8 @@ impl Transaction {
 		weighting: Weighting,
 		verifier: Arc<RwLock<dyn VerifierCache>>,
 	) -> Result<(), Error> {
-		self.body.validate(weighting, verifier)?;
 		self.body.verify_features()?;
+		self.body.validate(weighting, verifier)?;
 		self.verify_kernel_sums(self.overage(), self.offset.clone())?;
 		Ok(())
 	}
diff --git a/pool/src/pool.rs b/pool/src/pool.rs
index eaa894d8d..11e406be9 100644
--- a/pool/src/pool.rs
+++ b/pool/src/pool.rs
@@ -29,6 +29,7 @@ use grin_util as util;
 use std::cmp::Reverse;
 use std::collections::{HashMap, HashSet};
 use std::sync::Arc;
+use util::secp::pedersen::Commitment;
 use util::static_secp_instance;
 
 pub struct Pool<B, V>
@@ -70,6 +71,19 @@ where
 			.map(|x| x.tx.clone())
 	}
 
+	/// Query the tx pool for an individual tx matching the given public excess.
+	/// Used for checking for duplicate NRD kernels in the txpool.
+	pub fn retrieve_tx_by_kernel_excess(&self, excess: Commitment) -> Option<Transaction> {
+		for x in &self.entries {
+			for k in x.tx.kernels() {
+				if k.excess() == excess {
+					return Some(x.tx.clone());
+				}
+			}
+		}
+		None
+	}
+
 	/// Query the tx pool for an individual tx matching the given kernel hash.
 	pub fn retrieve_tx_by_kernel_hash(&self, hash: Hash) -> Option<Transaction> {
 		for x in &self.entries {
@@ -197,7 +211,6 @@ where
 		// Validate aggregated tx (existing pool + new tx), ignoring tx weight limits.
 		// Validate against known chain state at the provided header.
 		self.validate_raw_tx(&agg_tx, header, Weighting::NoLimit)?;
-
 		// If we get here successfully then we can safely add the entry to the pool.
 		self.log_pool_add(&entry, header);
 		self.entries.push(entry);
@@ -425,6 +438,7 @@ where
 		tx_buckets.into_iter().flat_map(|x| x.raw_txs).collect()
 	}
 
+	/// TODO - This is kernel based. How does this interact with NRD?
 	pub fn find_matching_transactions(&self, kernels: &[TxKernel]) -> Vec<Transaction> {
 		// While the inputs outputs can be cut-through the kernel will stay intact
 		// In order to deaggregate tx we look for tx with the same kernel
diff --git a/pool/src/transaction_pool.rs b/pool/src/transaction_pool.rs
index 8f330b954..a9d47047b 100644
--- a/pool/src/transaction_pool.rs
+++ b/pool/src/transaction_pool.rs
@@ -160,13 +160,18 @@ where
 		stem: bool,
 		header: &BlockHeader,
 	) -> Result<(), PoolError> {
-		// Quick check to deal with common case of seeing the *same* tx
-		// broadcast from multiple peers simultaneously.
-		if !stem && self.txpool.contains_tx(tx.hash()) {
+		// Quick check for duplicate txs.
+		// Our stempool is private and we do not want to reveal anything about the txs contained.
+		// If this is a stem tx and is already present in stempool then fluff by adding to txpool.
+		// Otherwise if already present in txpool return a "duplicate tx" error.
+		if stem && self.stempool.contains_tx(tx.hash()) {
+			return self.add_to_pool(src, tx, false, header);
+		} else if self.txpool.contains_tx(tx.hash()) {
 			return Err(PoolError::DuplicateTx);
 		}
 
 		// Check this tx is valid based on current header version.
+		// NRD kernels only valid post HF3 and if NRD feature enabled.
 		self.verify_kernel_variants(&tx, header)?;
 
 		// Do we have the capacity to accept this transaction?
@@ -195,20 +200,19 @@ where
 			tx,
 		};
 
-		// If not stem then we are fluff.
-		// If this is a stem tx then attempt to stem.
-		// Any problems during stem, fallback to fluff.
-		if !stem
-			|| self
-				.add_to_stempool(entry.clone(), header)
-				.and_then(|_| self.adapter.stem_tx_accepted(&entry))
-				.is_err()
-		{
-			self.add_to_txpool(entry.clone(), header)?;
-			self.add_to_reorg_cache(entry.clone());
-			self.adapter.tx_accepted(&entry);
+		// If this is a stem tx then attempt to add it to stempool.
+		// If the adapter fails to accept the new stem tx then fallback to fluff via txpool.
+		if stem {
+			self.add_to_stempool(entry.clone(), header)?;
+			if self.adapter.stem_tx_accepted(&entry).is_ok() {
+				return Ok(());
+			}
 		}
 
+		self.add_to_txpool(entry.clone(), header)?;
+		self.add_to_reorg_cache(entry.clone());
+		self.adapter.tx_accepted(&entry);
+
 		// Transaction passed all the checks but we have to make space for it
 		if evict {
 			self.evict_from_txpool();
diff --git a/pool/src/types.rs b/pool/src/types.rs
index c2580e74c..75f782594 100644
--- a/pool/src/types.rs
+++ b/pool/src/types.rs
@@ -227,6 +227,9 @@ pub enum PoolError {
 	/// NRD kernels are not valid if disabled locally via "feature flag".
 	#[fail(display = "NRD kernel not enabled")]
 	NRDKernelNotEnabled,
+	/// NRD kernels are not valid if relative_height rule not met.
+	#[fail(display = "NRD kernel relative height")]
+	NRDKernelRelativeHeight,
 	/// Other kinds of error (not yet pulled out into meaningful errors).
 	#[fail(display = "General pool error {}", _0)]
 	Other(String),
@@ -234,7 +237,10 @@ pub enum PoolError {
 
 impl From<transaction::Error> for PoolError {
 	fn from(e: transaction::Error) -> PoolError {
-		PoolError::InvalidTx(e)
+		match e {
+			transaction::Error::InvalidNRDRelativeHeight => PoolError::NRDKernelRelativeHeight,
+			e @ _ => PoolError::InvalidTx(e),
+		}
 	}
 }
 
diff --git a/pool/tests/common.rs b/pool/tests/common.rs
index 43a601d57..05dae1bb4 100644
--- a/pool/tests/common.rs
+++ b/pool/tests/common.rs
@@ -19,12 +19,12 @@ use self::chain::Chain;
 use self::core::consensus;
 use self::core::core::hash::Hash;
 use self::core::core::verifier_cache::{LruVerifierCache, VerifierCache};
-use self::core::core::{Block, BlockHeader, BlockSums, KernelFeatures, Transaction};
+use self::core::core::{Block, BlockHeader, BlockSums, KernelFeatures, Transaction, TxKernel};
 use self::core::genesis;
 use self::core::global;
 use self::core::libtx::{build, reward, ProofBuilder};
 use self::core::pow;
-use self::keychain::{ExtKeychain, ExtKeychainPath, Keychain};
+use self::keychain::{BlindingFactor, ExtKeychain, ExtKeychainPath, Keychain};
 use self::pool::types::*;
 use self::pool::TransactionPool;
 use self::util::RwLock;
@@ -127,9 +127,11 @@ impl BlockChain for ChainAdapter {
 	}
 
 	fn validate_tx(&self, tx: &Transaction) -> Result<(), pool::PoolError> {
-		self.chain
-			.validate_tx(tx)
-			.map_err(|_| PoolError::Other("failed to validate tx".into()))
+		self.chain.validate_tx(tx).map_err(|e| match e.kind() {
+			chain::ErrorKind::Transaction(txe) => txe.into(),
+			chain::ErrorKind::NRDRelativeHeight => PoolError::NRDKernelRelativeHeight,
+			_ => PoolError::Other("failed to validate tx".into()),
+		})
 	}
 
 	fn verify_coinbase_maturity(&self, tx: &Transaction) -> Result<(), PoolError> {
@@ -254,6 +256,38 @@ where
 	.unwrap()
 }
 
+pub fn test_transaction_with_kernel<K>(
+	keychain: &K,
+	input_values: Vec<u64>,
+	output_values: Vec<u64>,
+	kernel: TxKernel,
+	excess: BlindingFactor,
+) -> Transaction
+where
+	K: Keychain,
+{
+	let mut tx_elements = Vec::new();
+
+	for input_value in input_values {
+		let key_id = ExtKeychain::derive_key_id(1, input_value as u32, 0, 0, 0);
+		tx_elements.push(build::input(input_value, key_id));
+	}
+
+	for output_value in output_values {
+		let key_id = ExtKeychain::derive_key_id(1, output_value as u32, 0, 0, 0);
+		tx_elements.push(build::output(output_value, key_id));
+	}
+
+	build::transaction_with_kernel(
+		tx_elements,
+		kernel,
+		excess,
+		keychain,
+		&ProofBuilder::new(keychain),
+	)
+	.unwrap()
+}
+
 pub fn test_source() -> TxSource {
 	TxSource::Broadcast
 }
diff --git a/pool/tests/nrd_kernel_relative_height.rs b/pool/tests/nrd_kernel_relative_height.rs
new file mode 100644
index 000000000..bf657944c
--- /dev/null
+++ b/pool/tests/nrd_kernel_relative_height.rs
@@ -0,0 +1,265 @@
+// Copyright 2020 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+pub mod common;
+
+use self::core::consensus;
+use self::core::core::hash::Hashed;
+use self::core::core::verifier_cache::LruVerifierCache;
+use self::core::core::{HeaderVersion, KernelFeatures, NRDRelativeHeight, TxKernel};
+use self::core::global;
+use self::core::libtx::aggsig;
+use self::keychain::{BlindingFactor, ExtKeychain, Keychain};
+use self::pool::types::PoolError;
+use self::util::RwLock;
+use crate::common::*;
+use grin_core as core;
+use grin_keychain as keychain;
+use grin_pool as pool;
+use grin_util as util;
+use std::sync::Arc;
+
+#[test]
+fn test_nrd_kernel_relative_height() -> Result<(), PoolError> {
+	util::init_test_logger();
+	global::set_local_chain_type(global::ChainTypes::AutomatedTesting);
+	global::set_local_nrd_enabled(true);
+
+	let keychain: ExtKeychain = Keychain::from_random_seed(false).unwrap();
+
+	let db_root = "target/.nrd_kernel_relative_height";
+	clean_output_dir(db_root.into());
+
+	let genesis = genesis_block(&keychain);
+	let chain = Arc::new(init_chain(db_root, genesis));
+	let verifier_cache = Arc::new(RwLock::new(LruVerifierCache::new()));
+
+	// Initialize a new pool with our chain adapter.
+	let mut pool = init_transaction_pool(
+		Arc::new(ChainAdapter {
+			chain: chain.clone(),
+		}),
+		verifier_cache,
+	);
+
+	add_some_blocks(&chain, 3, &keychain);
+
+	let header_1 = chain.get_header_by_height(1).unwrap();
+
+	// Now create tx to spend an early coinbase (now matured).
+	// Provides us with some useful outputs to test with.
+	let initial_tx = test_transaction_spending_coinbase(&keychain, &header_1, vec![10, 20, 30, 40]);
+
+	// Mine that initial tx so we can spend it with multiple txs.
+	add_block(&chain, vec![initial_tx], &keychain);
+
+	add_some_blocks(&chain, 5, &keychain);
+
+	let header = chain.head_header().unwrap();
+
+	assert_eq!(header.height, consensus::TESTING_THIRD_HARD_FORK);
+	assert_eq!(header.version, HeaderVersion(4));
+
+	let (tx1, tx2, tx3) = {
+		let mut kernel = TxKernel::with_features(KernelFeatures::NoRecentDuplicate {
+			fee: 6,
+			relative_height: NRDRelativeHeight::new(2)?,
+		});
+		let msg = kernel.msg_to_sign().unwrap();
+
+		// Generate a kernel with public excess and associated signature.
+		let excess = BlindingFactor::rand(&keychain.secp());
+		let skey = excess.secret_key(&keychain.secp()).unwrap();
+		kernel.excess = keychain.secp().commit(0, skey).unwrap();
+		let pubkey = &kernel.excess.to_pubkey(&keychain.secp()).unwrap();
+		kernel.excess_sig =
+			aggsig::sign_with_blinding(&keychain.secp(), &msg, &excess, Some(&pubkey)).unwrap();
+		kernel.verify().unwrap();
+
+		let tx1 = test_transaction_with_kernel(
+			&keychain,
+			vec![10, 20],
+			vec![24],
+			kernel.clone(),
+			excess.clone(),
+		);
+
+		let tx2 = test_transaction_with_kernel(
+			&keychain,
+			vec![24],
+			vec![18],
+			kernel.clone(),
+			excess.clone(),
+		);
+
+		// Now reuse kernel excess for tx3 but with NRD relative_height=1 (and different fee).
+		let mut kernel_short = TxKernel::with_features(KernelFeatures::NoRecentDuplicate {
+			fee: 3,
+			relative_height: NRDRelativeHeight::new(1)?,
+		});
+		let msg_short = kernel_short.msg_to_sign().unwrap();
+		kernel_short.excess = kernel.excess;
+		kernel_short.excess_sig =
+			aggsig::sign_with_blinding(&keychain.secp(), &msg_short, &excess, Some(&pubkey))
+				.unwrap();
+		kernel_short.verify().unwrap();
+
+		let tx3 = test_transaction_with_kernel(
+			&keychain,
+			vec![18],
+			vec![15],
+			kernel_short.clone(),
+			excess.clone(),
+		);
+
+		(tx1, tx2, tx3)
+	};
+
+	// Confirm we can successfully add tx1 with NRD kernel to stempool.
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx1.clone(), true, &header),
+		Ok(()),
+	);
+	assert_eq!(pool.stempool.size(), 1);
+
+	// Confirm we cannot add tx2 to stempool while tx1 is in there (duplicate NRD kernels).
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), true, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	// Confirm we can successfully add tx1 with NRD kernel to txpool,
+	// removing existing instance of tx1 from stempool in the process.
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx1.clone(), false, &header),
+		Ok(()),
+	);
+	assert_eq!(pool.txpool.size(), 1);
+	assert_eq!(pool.stempool.size(), 0);
+
+	// Confirm we cannot add tx2 to stempool while tx1 is in txpool (duplicate NRD kernels).
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), true, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	// Confirm we cannot add tx2 to txpool while tx1 is in there (duplicate NRD kernels).
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), false, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	assert_eq!(pool.total_size(), 1);
+	assert_eq!(pool.txpool.size(), 1);
+	assert_eq!(pool.stempool.size(), 0);
+
+	let txs = pool.prepare_mineable_transactions().unwrap();
+	assert_eq!(txs.len(), 1);
+
+	// Mine block containing tx1 from the txpool.
+	add_block(&chain, txs, &keychain);
+	let header = chain.head_header().unwrap();
+	let block = chain.get_block(&header.hash()).unwrap();
+
+	// Confirm the stempool/txpool is empty after reconciling the new block.
+	pool.reconcile_block(&block)?;
+	assert_eq!(pool.total_size(), 0);
+	assert_eq!(pool.txpool.size(), 0);
+	assert_eq!(pool.stempool.size(), 0);
+
+	// Confirm we cannot add tx2 to stempool with tx1 in previous block (NRD relative_height=2)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), true, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	// Confirm we cannot add tx2 to txpool with tx1 in previous block (NRD relative_height=2)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), false, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	// Add another block so NRD relative_height rule is now met.
+	add_block(&chain, vec![], &keychain);
+	let header = chain.head_header().unwrap();
+
+	// Confirm we can now add tx2 to stempool with NRD relative_height rule met.
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), true, &header),
+		Ok(())
+	);
+	assert_eq!(pool.total_size(), 0);
+	assert_eq!(pool.txpool.size(), 0);
+	assert_eq!(pool.stempool.size(), 1);
+
+	// Confirm we cannot yet add tx3 to stempool (NRD relative_height=1)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx3.clone(), true, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	// Confirm we can now add tx2 to txpool with NRD relative_height rule met.
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx2.clone(), false, &header),
+		Ok(())
+	);
+
+	// Confirm we cannot yet add tx3 to txpool (NRD relative_height=1)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx3.clone(), false, &header),
+		Err(PoolError::NRDKernelRelativeHeight)
+	);
+
+	assert_eq!(pool.total_size(), 1);
+	assert_eq!(pool.txpool.size(), 1);
+	assert_eq!(pool.stempool.size(), 0);
+
+	let txs = pool.prepare_mineable_transactions().unwrap();
+	assert_eq!(txs.len(), 1);
+
+	// Mine block containing tx2 from the txpool.
+	add_block(&chain, txs, &keychain);
+	let header = chain.head_header().unwrap();
+	let block = chain.get_block(&header.hash()).unwrap();
+	pool.reconcile_block(&block)?;
+
+	assert_eq!(pool.total_size(), 0);
+	assert_eq!(pool.txpool.size(), 0);
+	assert_eq!(pool.stempool.size(), 0);
+
+	// Confirm we can now add tx3 to stempool with tx2 in immediate previous block (NRD relative_height=1)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx3.clone(), true, &header),
+		Ok(())
+	);
+
+	assert_eq!(pool.total_size(), 0);
+	assert_eq!(pool.txpool.size(), 0);
+	assert_eq!(pool.stempool.size(), 1);
+
+	// Confirm we can now add tx3 to txpool with tx2 in immediate previous block (NRD relative_height=1)
+	assert_eq!(
+		pool.add_to_pool(test_source(), tx3.clone(), false, &header),
+		Ok(())
+	);
+
+	assert_eq!(pool.total_size(), 1);
+	assert_eq!(pool.txpool.size(), 1);
+	assert_eq!(pool.stempool.size(), 0);
+
+	// Cleanup db directory
+	clean_output_dir(db_root.into());
+
+	Ok(())
+}
diff --git a/pool/tests/transaction_pool.rs b/pool/tests/transaction_pool.rs
index a8e3dd461..438d87dea 100644
--- a/pool/tests/transaction_pool.rs
+++ b/pool/tests/transaction_pool.rs
@@ -165,12 +165,14 @@ fn test_the_transaction_pool() {
 		pool.add_to_pool(test_source(), tx.clone(), true, &header)
 			.unwrap();
 		assert_eq!(pool.total_size(), 4);
+		assert_eq!(pool.txpool.size(), 4);
 		assert_eq!(pool.stempool.size(), 1);
 
 		// Duplicate stem tx so fluff, adding it to txpool and removing it from stempool.
 		pool.add_to_pool(test_source(), tx.clone(), true, &header)
 			.unwrap();
 		assert_eq!(pool.total_size(), 5);
+		assert_eq!(pool.txpool.size(), 5);
 		assert!(pool.stempool.is_empty());
 	}
 
diff --git a/store/src/lmdb.rs b/store/src/lmdb.rs
index 269df8bff..40458b4a7 100644
--- a/store/src/lmdb.rs
+++ b/store/src/lmdb.rs
@@ -47,6 +47,9 @@ pub enum Error {
 	/// Wraps a serialization error for Writeable or Readable
 	#[fail(display = "Serialization Error")]
 	SerErr(String),
+	/// Other error
+	#[fail(display = "Other Error")]
+	OtherErr(String),
 }
 
 impl From<lmdb::error::Error> for Error {