diff --git a/config.yml b/config.yml
index 2fe9f5eb..e6f59528 100644
--- a/config.yml
+++ b/config.yml
@@ -26,9 +26,9 @@ protection:
     item-durability: on
 
 simulation:
-    classic-water: off
     sponge:
         enable: on
+        redstone: off
         radius: 3
 
 physics:
diff --git a/src/com/sk89q/worldguard/bukkit/WorldGuardBlockListener.java b/src/com/sk89q/worldguard/bukkit/WorldGuardBlockListener.java
index 4f38759a..2d3483ab 100644
--- a/src/com/sk89q/worldguard/bukkit/WorldGuardBlockListener.java
+++ b/src/com/sk89q/worldguard/bukkit/WorldGuardBlockListener.java
@@ -123,7 +123,9 @@ public void onBlockFlow(BlockFromToEvent event) {
             for (int cx = -plugin.spongeRadius; cx <= plugin.spongeRadius; cx++) {
                 for (int cy = -plugin.spongeRadius; cy <= plugin.spongeRadius; cy++) {
                     for (int cz = -plugin.spongeRadius; cz <= plugin.spongeRadius; cz++) {
-                        if (world.getBlockTypeIdAt(ox + cx, oy + cy, oz + cz) == 19) {
+                        Block sponge = world.getBlockAt(ox + cx, oy + cy, oz + cz);
+                        if (sponge.getTypeId() == 19
+                                && (!plugin.redstoneSponges || !sponge.isBlockIndirectlyPowered())) {
                             event.setCancelled(true);
                             return;
                         }
@@ -132,14 +134,16 @@ public void onBlockFlow(BlockFromToEvent event) {
             }
         }
 
-        if (plugin.classicWater && isWater) {
-            int blockBelow = world.getBlockTypeIdAt(blockFrom.getX(), blockFrom.getY() - 1, blockFrom.getZ());
+        /*if (plugin.classicWater && isWater) {
+            int blockBelow = blockFrom.getRelative(0, -1, 0).getTypeId();
             if (blockBelow != 0 && blockBelow != 8 && blockBelow != 9) {
-                world.getBlockAt(blockFrom.getX(), blockFrom.getY(), blockFrom.getZ()).setTypeId(9);
-                event.setCancelled(true);
+                blockFrom.setTypeId(9);
+                if (blockTo.getTypeId() == 0) {
+                    blockTo.setTypeId(9);
+                }
                 return;
             }
-        }
+        }*/
 
         if (plugin.preventWaterDamage.size() > 0 && isWater) {
             int targetId = world.getBlockTypeIdAt(
@@ -343,21 +347,15 @@ public void onBlockPlace(BlockPlaceEvent event) {
         }
 
         if (plugin.simulateSponge && blockPlaced.getTypeId() == 19) {
+            if (plugin.redstoneSponges && blockPlaced.isBlockIndirectlyPowered()) {
+                return;
+            }
+            
             int ox = blockPlaced.getX();
             int oy = blockPlaced.getY();
             int oz = blockPlaced.getZ();
 
-            for (int cx = -plugin.spongeRadius; cx <= plugin.spongeRadius; cx++) {
-                for (int cy = -plugin.spongeRadius; cy <= plugin.spongeRadius; cy++) {
-                    for (int cz = -plugin.spongeRadius; cz <= plugin.spongeRadius; cz++) {
-                        int id = world.getBlockTypeIdAt(ox + cx, oy + cy, oz + cz);
-                        if (id == 8 || id == 9) {
-                            world.getBlockAt(ox + cx, oy + cy, oz + cz)
-                                    .setTypeId(0);
-                        }
-                    }
-                }
-            }
+            clearSpongeWater(world, ox, oy, oz);
         }
     }
 
@@ -393,4 +391,61 @@ public void onBlockRightClick(BlockRightClickEvent event) {
             }
         }
     }
+
+
+    /**
+     * Called when redstone changes
+     * From: the source of the redstone change
+     * To: The redstone dust that changed
+     *
+     * @param event Relevant event details
+     */
+    @Override
+    public void onBlockRedstoneChange(BlockFromToEvent event) {
+        World world = event.getBlock().getWorld();
+        Block blockTo = event.getToBlock();
+
+        if (plugin.simulateSponge && plugin.redstoneSponges) {
+            int ox = blockTo.getX();
+            int oy = blockTo.getY();
+            int oz = blockTo.getZ();
+            
+            for (int cx = -1; cx <= 1; cx++) {
+                for (int cy = -1; cy <= 1; cy++) {
+                    for (int cz = -1; cz <= 1; cz++) {
+                        Block sponge = world.getBlockAt(ox + cx, oy + cy, oz + cz);
+                        if (sponge.getTypeId() == 19
+                                && sponge.isBlockIndirectlyPowered()) {
+                            clearSpongeWater(world, ox + cx, oy + cy, oz + cz);
+                        }
+                    }
+                }
+            }
+            
+            return;
+        }
+    }
+    
+    /**
+     * Remove water around a sponge.
+     * 
+     * @param world
+     * @param ox
+     * @param oy
+     * @param oz
+     */
+    private void clearSpongeWater(World world, int ox, int oy, int oz) {
+        for (int cx = -plugin.spongeRadius; cx <= plugin.spongeRadius; cx++) {
+            for (int cy = -plugin.spongeRadius; cy <= plugin.spongeRadius; cy++) {
+                for (int cz = -plugin.spongeRadius; cz <= plugin.spongeRadius; cz++) {
+                    Block block = world.getBlockAt(ox + cx, oy + cy, oz + cz);
+                    int id = block.getTypeId();
+                    if (id == 8 || id == 9) {
+                        world.getBlockAt(ox + cx, oy + cy, oz + cz)
+                                .setTypeId(0);
+                    }
+                }
+            }
+        }
+    }
 }
diff --git a/src/com/sk89q/worldguard/bukkit/WorldGuardPlugin.java b/src/com/sk89q/worldguard/bukkit/WorldGuardPlugin.java
index ab162ab0..b320a1b3 100644
--- a/src/com/sk89q/worldguard/bukkit/WorldGuardPlugin.java
+++ b/src/com/sk89q/worldguard/bukkit/WorldGuardPlugin.java
@@ -94,6 +94,7 @@ public class WorldGuardPlugin extends JavaPlugin {
     boolean classicWater;
     boolean simulateSponge;
     int spongeRadius;
+    boolean redstoneSponges;
 
     boolean noPhysicsGravel;
     boolean noPhysicsSand;
@@ -181,6 +182,7 @@ private void registerEvents() {
         registerEvent(Event.Type.BLOCK_INTERACT, blockListener, Priority.High);
         registerEvent(Event.Type.BLOCK_PLACED, blockListener, Priority.High);
         registerEvent(Event.Type.BLOCK_RIGHTCLICKED, blockListener, Priority.High);
+        registerEvent(Event.Type.REDSTONE_CHANGE, blockListener, Priority.High);
 
         registerEvent(Event.Type.ENTITY_DAMAGED, entityListener, Priority.High);
         registerEvent(Event.Type.ENTITY_DAMAGEDBY_PROJECTILE, entityListener, Priority.High);
@@ -262,6 +264,7 @@ public void loadConfiguration() {
         classicWater = config.getBoolean("simulation.classic-water", false);
         simulateSponge = config.getBoolean("simulation.sponge.enable", true);
         spongeRadius = Math.max(1, config.getInt("simulation.sponge.radius", 3)) - 1;
+        redstoneSponges = config.getBoolean("simulation.sponge.redstone", false);
         
         noPhysicsGravel = config.getBoolean("physics.no-physics-gravel", false);
         noPhysicsSand = config.getBoolean("physics.no-physics-sand", false);