Index: Doc/Extra/Provider/version.html
==================================================================
--- Doc/Extra/Provider/version.html
+++ Doc/Extra/Provider/version.html
@@ -47,10 +47,11 @@
     <ul>
       <li>Updated to <a href="https://www.sqlite.org/releaselog/3_15_1.html">SQLite 3.15.1</a>.</li>
       <li>Updated the <a href="https://www.sqlite.org/json1.html">JSON1</a> extension to check-in <a href="https://www.sqlite.org/src/info/b540984915">[b540984915]</a>.</li>
       <li>Add the &quot;%PreLoadSQLite_AssemblyDirectory%&quot;, &quot;%PreLoadSQLite_TargetFramework%&quot;, and &quot;%PreLoadSQLite_XmlConfigDirectory%&quot; <a href="https://system.data.sqlite.org/index.html/artifact?ci=trunk&filename=Doc/Extra/Provider/environment.html">replacement tokens</a> for use in configuration setting values. Pursuant to <a href="https://system.data.sqlite.org/index.html/info/d4728aecb7">[d4728aecb7]</a>.</li>
       <li>Prevent the GetByte, GetChar, and GetInt16 methods of the SQLiteDataReader class from throwing exceptions for large integer values. Pursuant to <a href="https://system.data.sqlite.org/index.html/info/5535448538">[5535448538]</a>.&nbsp;<b>** Potentially Incompatible Change **</b></li>
+      <li>Use <a href="https://www.sqlite.org/lang_savepoint.html">SAVEPOINTs</a> to properly implement nested transactions when the new AllowNestedTransactions connection flag is used. Fix for <a href="https://system.data.sqlite.org/index.html/info/1f7bfff467">[1f7bfff467]</a>.</li>
     </ul>
     <p><b>1.0.103.0 - September 15, 2016</b></p>
     <ul>
       <li>Updated to <a href="https://www.sqlite.org/releaselog/3_14_2.html">SQLite 3.14.2</a>.</li>
       <li>Add preliminary support for the .NET Framework 4.6.2.</li>

Index: Setup/data/verify.lst
==================================================================
--- Setup/data/verify.lst
+++ Setup/data/verify.lst
@@ -588,10 +588,12 @@
   System.Data.SQLite/SQLiteParameter.cs
   System.Data.SQLite/SQLiteParameterCollection.cs
   System.Data.SQLite/SQLitePatchLevel.cs
   System.Data.SQLite/SQLiteStatement.cs
   System.Data.SQLite/SQLiteTransaction.cs
+  System.Data.SQLite/SQLiteTransaction2.cs
+  System.Data.SQLite/SQLiteTransactionBase.cs
   System.Data.SQLite/System.Data.SQLite.2005.csproj
   System.Data.SQLite/System.Data.SQLite.2008.csproj
   System.Data.SQLite/System.Data.SQLite.2010.csproj
   System.Data.SQLite/System.Data.SQLite.2012.csproj
   System.Data.SQLite/System.Data.SQLite.2013.csproj
@@ -789,10 +791,11 @@
   Tests/tkt-0a32885109.eagle
   Tests/tkt-0d5b1ef362.eagle
   Tests/tkt-0ed01c447c.eagle
   Tests/tkt-17045010df.eagle
   Tests/tkt-1c456ae75f.eagle
+  Tests/tkt-1f7bfff467.eagle
   Tests/tkt-201128cc88.eagle
   Tests/tkt-2556655d1b.eagle
   Tests/tkt-2abbf2c244.eagle
   Tests/tkt-2c630bffa7.eagle
   Tests/tkt-2ce0870fad.eagle

Index: System.Data.SQLite/SQLiteBase.cs
==================================================================
--- System.Data.SQLite/SQLiteBase.cs
+++ System.Data.SQLite/SQLiteBase.cs
@@ -1235,10 +1235,18 @@
       /// <summary>
       /// When returning column values, skip verifying their affinity.
       /// </summary>
       NoVerifyTypeAffinity = 0x4000000000,
 
+      /// <summary>
+      /// Allow transactions to be nested.  The outermost transaction still
+      /// controls whether or not any changes are ultimately committed or
+      /// rolled back.  All non-outermost transactions are implemented using
+      /// the SAVEPOINT construct.
+      /// </summary>
+      AllowNestedTransactions = 0x8000000000,
+
       /// <summary>
       /// When binding parameter values or returning column values, always
       /// treat them as though they were plain text (i.e. no numeric,
       /// date/time, or other conversions should be attempted).
       /// </summary>

Index: System.Data.SQLite/SQLiteConnection.cs
==================================================================
--- System.Data.SQLite/SQLiteConnection.cs
+++ System.Data.SQLite/SQLiteConnection.cs
@@ -1443,10 +1443,16 @@
     /// <summary>
     /// Nesting level of the transactions open on the connection
     /// </summary>
     internal int _transactionLevel;
 
+    /// <summary>
+    /// Transaction counter for the connection.  Currently, this is only used
+    /// to build SAVEPOINT names.
+    /// </summary>
+    internal int _transactionSequence;
+
     /// <summary>
     /// If this flag is non-zero, the <see cref="Dispose()" /> method will have
     /// no effect; however, the <see cref="Close" /> method will continue to
     /// behave as normal.
     /// </summary>
@@ -2795,12 +2801,23 @@
       isolationLevel = GetEffectiveIsolationLevel(isolationLevel);
 
       if (isolationLevel != ImmediateIsolationLevel && isolationLevel != DeferredIsolationLevel)
         throw new ArgumentException("isolationLevel");
 
-      SQLiteTransaction transaction =
-          new SQLiteTransaction(this, isolationLevel != ImmediateIsolationLevel);
+      SQLiteTransaction transaction;
+
+      if ((_flags & SQLiteConnectionFlags.AllowNestedTransactions)
+            == SQLiteConnectionFlags.AllowNestedTransactions)
+      {
+          transaction = new SQLiteTransaction2(
+              this, isolationLevel != ImmediateIsolationLevel);
+      }
+      else
+      {
+          transaction = new SQLiteTransaction(
+              this, isolationLevel != ImmediateIsolationLevel);
+      }
 
       OnChanged(this, new ConnectionEventArgs(
           SQLiteConnectionEventType.NewTransaction, null, transaction,
           null, null, null, null, null));
 
@@ -2843,10 +2860,11 @@
           // we cannot truly shut down this connection until the scope has completed.  Therefore make a
           // hidden connection temporarily to hold open the connection until the scope has completed.
           SQLiteConnection cnn = new SQLiteConnection();
           cnn._sql = _sql;
           cnn._transactionLevel = _transactionLevel;
+          cnn._transactionSequence = _transactionSequence;
           cnn._enlistment = _enlistment;
           cnn._connectionState = _connectionState;
           cnn._version = _version;
 
           cnn._enlistment._transaction._cnn = cnn;
@@ -2860,10 +2878,11 @@
         {
           _sql.Close(!_disposing);
           _sql = null;
         }
         _transactionLevel = 0;
+        _transactionSequence = 0;
       }
 
       StateChangeEventArgs eventArgs = null;
       OnStateChange(ConnectionState.Closed, ref eventArgs);
 

Index: System.Data.SQLite/SQLiteTransaction.cs
==================================================================
--- System.Data.SQLite/SQLiteTransaction.cs
+++ System.Data.SQLite/SQLiteTransaction.cs
@@ -6,74 +6,28 @@
  ********************************************************/
 
 namespace System.Data.SQLite
 {
     using System;
-    using System.Data;
-    using System.Data.Common;
-    using System.Threading;
-
-    ///////////////////////////////////////////////////////////////////////////////////////////////
-
-    /// <summary>
-    /// SQLite implementation of DbTransaction.
-    /// </summary>
-    public sealed class SQLiteTransaction : DbTransaction
-    {
-        /// <summary>
-        /// The connection to which this transaction is bound
-        /// </summary>
-        internal SQLiteConnection _cnn;
-
-        /// <summary>
-        /// Matches the version of the connection.
-        /// </summary>
-        private int _version;
-
-        /// <summary>
-        /// The isolation level for this transaction.
-        /// </summary>
-        private IsolationLevel _level;
-
-        ///////////////////////////////////////////////////////////////////////////////////////////////
-
+    using System.Threading;
+
+    ///////////////////////////////////////////////////////////////////////////////////////////////////
+
+    /// <summary>
+    /// SQLite implementation of DbTransaction that does not support nested transactions.
+    /// </summary>
+    public class SQLiteTransaction : SQLiteTransactionBase
+    {
         /// <summary>
         /// Constructs the transaction object, binding it to the supplied connection
         /// </summary>
         /// <param name="connection">The connection to open a transaction on</param>
         /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
         internal SQLiteTransaction(SQLiteConnection connection, bool deferredLock)
-        {
-            _cnn = connection;
-            _version = _cnn._version;
-
-            _level = (deferredLock == true) ?
-                SQLiteConnection.DeferredIsolationLevel :
-                SQLiteConnection.ImmediateIsolationLevel;
-
-            if (_cnn._transactionLevel++ == 0)
-            {
-                try
-                {
-                    using (SQLiteCommand cmd = _cnn.CreateCommand())
-                    {
-                        if (!deferredLock)
-                            cmd.CommandText = "BEGIN IMMEDIATE;";
-                        else
-                            cmd.CommandText = "BEGIN;";
-
-                        cmd.ExecuteNonQuery();
-                    }
-                }
-                catch (SQLiteException)
-                {
-                    _cnn._transactionLevel--;
-                    _cnn = null;
-
-                    throw;
-                }
-            }
+            : base(connection, deferredLock)
+        {
+            // do nothing.
         }
 
         ///////////////////////////////////////////////////////////////////////////////////////////////
 
         #region IDisposable "Pattern" Members
@@ -150,48 +104,40 @@
         }
 
         ///////////////////////////////////////////////////////////////////////////////////////////////
 
         /// <summary>
-        /// Returns the underlying connection to which this transaction applies.
-        /// </summary>
-        public new SQLiteConnection Connection
-        {
-            get { CheckDisposed(); return _cnn; }
-        }
-
-        ///////////////////////////////////////////////////////////////////////////////////////////////
-
-        /// <summary>
-        /// Forwards to the local Connection property
-        /// </summary>
-        protected override DbConnection DbConnection
-        {
-            get { return Connection; }
-        }
-
-        ///////////////////////////////////////////////////////////////////////////////////////////////
-
-        /// <summary>
-        /// Gets the isolation level of the transaction.  SQLite only supports Serializable transactions.
-        /// </summary>
-        public override IsolationLevel IsolationLevel
-        {
-            get { CheckDisposed(); return _level; }
-        }
-
-        ///////////////////////////////////////////////////////////////////////////////////////////////
-
-        /// <summary>
-        /// Rolls back the active transaction.
-        /// </summary>
-        public override void Rollback()
-        {
-            CheckDisposed();
-            SQLiteConnection.Check(_cnn);
-            IsValid(true);
-            IssueRollback(true);
+        /// Attempts to start a transaction.  An exception will be thrown if the transaction cannot
+        /// be started for any reason.
+        /// </summary>
+        /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
+        protected override void Begin(
+            bool deferredLock
+            )
+        {
+            if (_cnn._transactionLevel++ == 0)
+            {
+                try
+                {
+                    using (SQLiteCommand cmd = _cnn.CreateCommand())
+                    {
+                        if (!deferredLock)
+                            cmd.CommandText = "BEGIN IMMEDIATE;";
+                        else
+                            cmd.CommandText = "BEGIN;";
+
+                        cmd.ExecuteNonQuery();
+                    }
+                }
+                catch (SQLiteException)
+                {
+                    _cnn._transactionLevel--;
+                    _cnn = null;
+
+                    throw;
+                }
+            }
         }
 
         ///////////////////////////////////////////////////////////////////////////////////////////////
 
         /// <summary>
@@ -199,11 +145,13 @@
         /// optionally re-throwing any caught exception.
         /// </summary>
         /// <param name="throwError">
         /// Non-zero to re-throw caught exceptions.
         /// </param>
-        private void IssueRollback(bool throwError)
+        protected override void IssueRollback(
+            bool throwError
+            )
         {
             SQLiteConnection cnn = Interlocked.Exchange(ref _cnn, null);
 
             if (cnn != null)
             {
@@ -221,47 +169,7 @@
                         throw;
                 }
                 cnn._transactionLevel = 0;
             }
         }
-
-        ///////////////////////////////////////////////////////////////////////////////////////////////
-
-        /// <summary>
-        /// Checks the state of this transaction, optionally throwing an exception if a state inconsistency is found.
-        /// </summary>
-        /// <param name="throwError">
-        /// Non-zero to throw an exception if a state inconsistency is found.
-        /// </param>
-        /// <returns>
-        /// Non-zero if this transaction is valid; otherwise, false.
-        /// </returns>
-        internal bool IsValid(bool throwError)
-        {
-            if (_cnn == null)
-            {
-                if (throwError == true) throw new ArgumentNullException("No connection associated with this transaction");
-                else return false;
-            }
-
-            if (_cnn._version != _version)
-            {
-                if (throwError == true) throw new SQLiteException("The connection was closed and re-opened, changes were already rolled back");
-                else return false;
-            }
-            if (_cnn.State != ConnectionState.Open)
-            {
-                if (throwError == true) throw new SQLiteException("Connection was closed");
-                else return false;
-            }
-
-            if (_cnn._transactionLevel == 0 || _cnn._sql.AutoCommit == true)
-            {
-                _cnn._transactionLevel = 0; // Make sure the transaction level is reset before returning
-                if (throwError == true) throw new SQLiteException("No transaction is active on this connection");
-                else return false;
-            }
-
-            return true;
-        }
     }
 }

ADDED   System.Data.SQLite/SQLiteTransaction2.cs
Index: System.Data.SQLite/SQLiteTransaction2.cs
==================================================================
--- /dev/null
+++ System.Data.SQLite/SQLiteTransaction2.cs
@@ -0,0 +1,276 @@
+/********************************************************
+ * ADO.NET 2.0 Data Provider for SQLite Version 3.X
+ * Written by Robert Simpson (robert@blackcastlesoft.com)
+ *
+ * Released to the public domain, use at your own risk!
+ ********************************************************/
+
+namespace System.Data.SQLite
+{
+    using System;
+    using System.Threading;
+
+    ///////////////////////////////////////////////////////////////////////////////////////////////////
+
+    /// <summary>
+    /// SQLite implementation of DbTransaction that does support nested transactions.
+    /// </summary>
+    public sealed class SQLiteTransaction2 : SQLiteTransaction
+    {
+        /// <summary>
+        /// The original transaction level for the associated connection
+        /// when this transaction was created (i.e. begun).
+        /// </summary>
+        private int _beginLevel;
+
+        /// <summary>
+        /// The SAVEPOINT name for this transaction, if any.  This will
+        /// only be non-null if this transaction is a nested one.
+        /// </summary>
+        private string _savePointName;
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Constructs the transaction object, binding it to the supplied connection
+        /// </summary>
+        /// <param name="connection">The connection to open a transaction on</param>
+        /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
+        internal SQLiteTransaction2(SQLiteConnection connection, bool deferredLock)
+            : base(connection, deferredLock)
+        {
+            // do nothing.
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        #region IDisposable "Pattern" Members
+        private bool disposed;
+        private void CheckDisposed() /* throw */
+        {
+#if THROW_ON_DISPOSED
+            if (disposed)
+                throw new ObjectDisposedException(typeof(SQLiteTransaction2).Name);
+#endif
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Disposes the transaction.  If it is currently active, any changes are rolled back.
+        /// </summary>
+        protected override void Dispose(bool disposing)
+        {
+            try
+            {
+                if (!disposed)
+                {
+                    if (disposing)
+                    {
+                        ////////////////////////////////////
+                        // dispose managed resources here...
+                        ////////////////////////////////////
+
+                        if (IsValid(false))
+                        {
+                            IssueRollback(false);
+                        }
+                    }
+
+                    //////////////////////////////////////
+                    // release unmanaged resources here...
+                    //////////////////////////////////////
+                }
+            }
+            finally
+            {
+                base.Dispose(disposing);
+
+                //
+                // NOTE: Everything should be fully disposed at this point.
+                //
+                disposed = true;
+            }
+        }
+        #endregion
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Commits the current transaction.
+        /// </summary>
+        public override void Commit()
+        {
+            CheckDisposed();
+            SQLiteConnection.Check(_cnn);
+            IsValid(true);
+
+            if (_beginLevel == 0)
+            {
+                using (SQLiteCommand cmd = _cnn.CreateCommand())
+                {
+                    cmd.CommandText = "COMMIT;";
+                    cmd.ExecuteNonQuery();
+                }
+
+                _cnn._transactionLevel = 0;
+                _cnn = null;
+            }
+            else
+            {
+                using (SQLiteCommand cmd = _cnn.CreateCommand())
+                {
+                    if (String.IsNullOrEmpty(_savePointName))
+                        throw new SQLiteException("Cannot commit, unknown SAVEPOINT");
+
+                    cmd.CommandText = String.Format(
+                        "RELEASE {0};", _savePointName);
+
+                    cmd.ExecuteNonQuery();
+                }
+
+                _cnn._transactionLevel--;
+                _cnn = null;
+            }
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Attempts to start a transaction.  An exception will be thrown if the transaction cannot
+        /// be started for any reason.
+        /// </summary>
+        /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
+        protected override void Begin(
+            bool deferredLock
+            )
+        {
+            int transactionLevel;
+
+            if ((transactionLevel = _cnn._transactionLevel++) == 0)
+            {
+                try
+                {
+                    using (SQLiteCommand cmd = _cnn.CreateCommand())
+                    {
+                        if (!deferredLock)
+                            cmd.CommandText = "BEGIN IMMEDIATE;";
+                        else
+                            cmd.CommandText = "BEGIN;";
+
+                        cmd.ExecuteNonQuery();
+
+                        _beginLevel = transactionLevel;
+                    }
+                }
+                catch (SQLiteException)
+                {
+                    _cnn._transactionLevel--;
+                    _cnn = null;
+
+                    throw;
+                }
+            }
+            else
+            {
+                try
+                {
+                    using (SQLiteCommand cmd = _cnn.CreateCommand())
+                    {
+                        _savePointName = GetSavePointName();
+
+                        cmd.CommandText = String.Format(
+                            "SAVEPOINT {0};", _savePointName);
+
+                        cmd.ExecuteNonQuery();
+
+                        _beginLevel = transactionLevel;
+                    }
+                }
+                catch (SQLiteException)
+                {
+                    _cnn._transactionLevel--;
+                    _cnn = null;
+
+                    throw;
+                }
+            }
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Issue a ROLLBACK command against the database connection,
+        /// optionally re-throwing any caught exception.
+        /// </summary>
+        /// <param name="throwError">
+        /// Non-zero to re-throw caught exceptions.
+        /// </param>
+        protected override void IssueRollback(bool throwError)
+        {
+            SQLiteConnection cnn = Interlocked.Exchange(ref _cnn, null);
+
+            if (cnn != null)
+            {
+                if (_beginLevel == 0)
+                {
+                    try
+                    {
+                        using (SQLiteCommand cmd = cnn.CreateCommand())
+                        {
+                            cmd.CommandText = "ROLLBACK;";
+                            cmd.ExecuteNonQuery();
+                        }
+
+                        cnn._transactionLevel = 0;
+                    }
+                    catch
+                    {
+                        if (throwError)
+                            throw;
+                    }
+                }
+                else
+                {
+                    try
+                    {
+                        using (SQLiteCommand cmd = cnn.CreateCommand())
+                        {
+                            if (String.IsNullOrEmpty(_savePointName))
+                                throw new SQLiteException("Cannot rollback, unknown SAVEPOINT");
+
+                            cmd.CommandText = String.Format(
+                                "ROLLBACK TO {0};", _savePointName);
+
+                            cmd.ExecuteNonQuery();
+                        }
+
+                        cnn._transactionLevel--;
+                    }
+                    catch
+                    {
+                        if (throwError)
+                            throw;
+                    }
+                }
+            }
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Constructs the name of a new savepoint for this transaction.  It
+        /// should only be called from the constructor of this class.
+        /// </summary>
+        /// <returns>
+        /// The name of the new savepoint -OR- null if it cannot be constructed.
+        /// </returns>
+        private string GetSavePointName()
+        {
+            int sequence = ++_cnn._transactionSequence;
+
+            return String.Format(
+                "sqlite_dotnet_savepoint_{0}", sequence);
+        }
+    }
+}

ADDED   System.Data.SQLite/SQLiteTransactionBase.cs
Index: System.Data.SQLite/SQLiteTransactionBase.cs
==================================================================
--- /dev/null
+++ System.Data.SQLite/SQLiteTransactionBase.cs
@@ -0,0 +1,214 @@
+/********************************************************
+ * ADO.NET 2.0 Data Provider for SQLite Version 3.X
+ * Written by Robert Simpson (robert@blackcastlesoft.com)
+ *
+ * Released to the public domain, use at your own risk!
+ ********************************************************/
+
+namespace System.Data.SQLite
+{
+    using System;
+    using System.Data;
+    using System.Data.Common;
+
+    ///////////////////////////////////////////////////////////////////////////////////////////////////
+
+    /// <summary>
+    /// Base class used by to implement DbTransaction for SQLite.
+    /// </summary>
+    public abstract class SQLiteTransactionBase : DbTransaction
+    {
+        /// <summary>
+        /// The connection to which this transaction is bound.
+        /// </summary>
+        internal SQLiteConnection _cnn;
+
+        /// <summary>
+        /// Matches the version of the connection.
+        /// </summary>
+        internal int _version;
+
+        /// <summary>
+        /// The isolation level for this transaction.
+        /// </summary>
+        private IsolationLevel _level;
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Constructs the transaction object, binding it to the supplied connection
+        /// </summary>
+        /// <param name="connection">The connection to open a transaction on</param>
+        /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
+        internal SQLiteTransactionBase(SQLiteConnection connection, bool deferredLock)
+        {
+            _cnn = connection;
+            _version = _cnn._version;
+
+            _level = (deferredLock == true) ?
+                SQLiteConnection.DeferredIsolationLevel :
+                SQLiteConnection.ImmediateIsolationLevel;
+
+            Begin(deferredLock);
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Gets the isolation level of the transaction.  SQLite only supports Serializable transactions.
+        /// </summary>
+        public override IsolationLevel IsolationLevel
+        {
+            get { CheckDisposed(); return _level; }
+        }
+ 
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        #region IDisposable "Pattern" Members
+        private bool disposed;
+        private void CheckDisposed() /* throw */
+        {
+#if THROW_ON_DISPOSED
+            if (disposed)
+            {
+                throw new ObjectDisposedException(
+                    typeof(SQLiteTransactionBase).Name);
+            }
+#endif
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Disposes the transaction.  If it is currently active, any changes are rolled back.
+        /// </summary>
+        protected override void Dispose(bool disposing)
+        {
+            try
+            {
+                if (!disposed)
+                {
+                    if (disposing)
+                    {
+                        ////////////////////////////////////
+                        // dispose managed resources here...
+                        ////////////////////////////////////
+
+                        if (IsValid(false))
+                        {
+                            IssueRollback(false);
+                        }
+                    }
+
+                    //////////////////////////////////////
+                    // release unmanaged resources here...
+                    //////////////////////////////////////
+                }
+            }
+            finally
+            {
+                base.Dispose(disposing);
+
+                //
+                // NOTE: Everything should be fully disposed at this point.
+                //
+                disposed = true;
+            }
+        }
+        #endregion
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Returns the underlying connection to which this transaction applies.
+        /// </summary>
+        public new SQLiteConnection Connection
+        {
+            get { CheckDisposed(); return _cnn; }
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Forwards to the local Connection property
+        /// </summary>
+        protected override DbConnection DbConnection
+        {
+            get { return Connection; }
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Rolls back the active transaction.
+        /// </summary>
+        public override void Rollback()
+        {
+            CheckDisposed();
+            SQLiteConnection.Check(_cnn);
+            IsValid(true);
+            IssueRollback(true);
+        }
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Attempts to start a transaction.  An exception will be thrown if the transaction cannot
+        /// be started for any reason.
+        /// </summary>
+        /// <param name="deferredLock">TRUE to defer the writelock, or FALSE to lock immediately</param>
+        protected abstract void Begin(bool deferredLock);
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Issue a ROLLBACK command against the database connection,
+        /// optionally re-throwing any caught exception.
+        /// </summary>
+        /// <param name="throwError">
+        /// Non-zero to re-throw caught exceptions.
+        /// </param>
+        protected abstract void IssueRollback(bool throwError);
+
+        ///////////////////////////////////////////////////////////////////////////////////////////////
+
+        /// <summary>
+        /// Checks the state of this transaction, optionally throwing an exception if a state
+        /// inconsistency is found.
+        /// </summary>
+        /// <param name="throwError">
+        /// Non-zero to throw an exception if a state inconsistency is found.
+        /// </param>
+        /// <returns>
+        /// Non-zero if this transaction is valid; otherwise, false.
+        /// </returns>
+        internal bool IsValid(bool throwError)
+        {
+            if (_cnn == null)
+            {
+                if (throwError == true) throw new ArgumentNullException("No connection associated with this transaction");
+                else return false;
+            }
+
+            if (_cnn._version != _version)
+            {
+                if (throwError == true) throw new SQLiteException("The connection was closed and re-opened, changes were already rolled back");
+                else return false;
+            }
+            if (_cnn.State != ConnectionState.Open)
+            {
+                if (throwError == true) throw new SQLiteException("Connection was closed");
+                else return false;
+            }
+
+            if (_cnn._transactionLevel == 0 || _cnn._sql.AutoCommit == true)
+            {
+                _cnn._transactionLevel = 0; // Make sure the transaction level is reset before returning
+                if (throwError == true) throw new SQLiteException("No transaction is active on this connection");
+                else return false;
+            }
+
+            return true;
+        }
+    }
+}

Index: System.Data.SQLite/Targets/System.Data.SQLite.Files.targets
==================================================================
--- System.Data.SQLite/Targets/System.Data.SQLite.Files.targets
+++ System.Data.SQLite/Targets/System.Data.SQLite.Files.targets
@@ -49,10 +49,12 @@
     <Compile Include="SQLiteParameter.cs" />
     <Compile Include="SQLiteParameterCollection.cs" />
     <Compile Include="SQLitePatchLevel.cs" />
     <Compile Include="SQLiteStatement.cs" />
     <Compile Include="SQLiteTransaction.cs" />
+    <Compile Include="SQLiteTransaction2.cs" />
+    <Compile Include="SQLiteTransactionBase.cs" />
     <Compile Include="UnsafeNativeMethods.cs" />
     <Compile Include="Resources\SR.Designer.cs">
       <DependentUpon>SR.resx</DependentUpon>
       <AutoGen>True</AutoGen>
       <DesignTime>True</DesignTime>

ADDED   Tests/tkt-1f7bfff467.eagle
Index: Tests/tkt-1f7bfff467.eagle
==================================================================
--- /dev/null
+++ Tests/tkt-1f7bfff467.eagle
@@ -0,0 +1,509 @@
+###############################################################################
+#
+# tkt-1f7bfff467.eagle --
+#
+# Written by Joe Mistachkin.
+# Released to the public domain, use at your own risk!
+#
+###############################################################################
+
+package require Eagle
+package require Eagle.Library
+package require Eagle.Test
+
+runTestPrologue
+
+###############################################################################
+
+package require System.Data.SQLite.Test
+runSQLiteTestPrologue
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.0 {rollback nested transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.0.db]
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+    INSERT INTO t1(x) VALUES(2);
+    INSERT INTO t1(x) VALUES(3);
+  }
+
+  catch {
+    set result [list]
+
+    lappend result [sql execute \
+        -execute scalar $db "SELECT COUNT(*) FROM t1;"]
+
+    set transaction(1) [sql transaction begin $db]
+
+    sql execute -transaction $transaction(1) $db \
+        "INSERT INTO t1(x) VALUES(4);"
+
+    lappend result [sql execute -transaction $transaction(1) \
+        -execute reader -format list $db \
+        "SELECT x FROM t1 ORDER BY x;"]
+
+    set transaction(2) [sql transaction begin $db]
+
+    sql execute -transaction $transaction(2) $db \
+        "DELETE FROM t1 WHERE x = 2;"
+
+    lappend result [sql execute -transaction $transaction(2) \
+        -execute reader -format list $db \
+        "SELECT x FROM t1 ORDER BY x;"]
+
+    sql transaction rollback $transaction(2)
+
+    sql execute -transaction $transaction(1) $db \
+        "UPDATE t1 SET x = 9 WHERE x = 3;"
+
+    sql transaction commit $transaction(1)
+
+    lappend result [sql execute \
+        -execute reader -format list $db \
+        "SELECT x FROM t1 ORDER BY x;"]
+
+    set result
+  } error
+
+  extractSystemDataSQLiteExceptionMessage $error
+} -cleanup {
+  catch {sql transaction rollback $transaction(2)}
+  catch {sql transaction rollback $transaction(1)}
+
+  cleanupDb $fileName
+
+  catch {removeDbTransaction $transaction(2)}
+  catch {removeDbTransaction $transaction(1)}
+
+  unset -nocomplain error result transaction db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite} -result {unknown error -- No transaction is active on this\
+connection}}
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.1 {rollback nested transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.1.db] "" "" "" AllowNestedTransactions
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+    INSERT INTO t1(x) VALUES(2);
+    INSERT INTO t1(x) VALUES(3);
+  }
+
+  set result [list]
+
+  lappend result [sql execute \
+      -execute scalar $db "SELECT COUNT(*) FROM t1;"]
+
+  set transaction(1) [sql transaction begin $db]
+
+  sql execute -transaction $transaction(1) $db \
+      "INSERT INTO t1(x) VALUES(4);"
+
+  lappend result [sql execute -transaction $transaction(1) \
+      -execute reader -format list $db \
+      "SELECT x FROM t1 ORDER BY x;"]
+
+  set transaction(2) [sql transaction begin $db]
+
+  sql execute -transaction $transaction(2) $db \
+      "DELETE FROM t1 WHERE x = 2;"
+
+  lappend result [sql execute -transaction $transaction(2) \
+      -execute reader -format list $db \
+      "SELECT x FROM t1 ORDER BY x;"]
+
+  sql transaction rollback $transaction(2)
+
+  sql execute -transaction $transaction(1) $db \
+      "UPDATE t1 SET x = 9 WHERE x = 3;"
+
+  sql transaction commit $transaction(1)
+
+  lappend result [sql execute \
+      -execute reader -format list $db \
+      "SELECT x FROM t1 ORDER BY x;"]
+
+  set result
+} -cleanup {
+  cleanupDb $fileName
+
+  unset -nocomplain result transaction db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite} -result {3 {1 2 3 4} {1 3 4} {1 2 4 9}}}
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.2 {commit outer transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.2.db]
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+  }
+
+  set sql(1) { \
+    INSERT INTO t1(x) VALUES(2); \
+  }
+
+  set sql(2) { \
+    INSERT INTO t1(x) VALUES(3); \
+  }
+
+  set id [object invoke Interpreter.GetActive NextId]
+  set dataSource [file join [getDatabaseDirectory] $fileName]
+  set flags AllowNestedTransactions
+
+  unset -nocomplain results errors
+
+  set code [compileCSharpWith [subst {
+    using System.Data.SQLite;
+
+    namespace _Dynamic${id}
+    {
+      public static class Test${id}
+      {
+        public static void Main()
+        {
+          using (SQLiteConnection connection = new SQLiteConnection(
+              "Data Source=${dataSource};[getFlagsProperty ${flags}]"))
+          {
+            connection.Open();
+
+            using (SQLiteTransaction transaction1 =
+                connection.BeginTransaction())
+            {
+              using (SQLiteCommand command1 = new SQLiteCommand(
+                  "${sql(1)}", connection))
+              {
+                command1.Transaction = transaction1;
+                command1.ExecuteNonQuery();
+              }
+
+              using (SQLiteTransaction transaction2 =
+                  connection.BeginTransaction())
+              {
+                using (SQLiteCommand command2 = new SQLiteCommand(
+                    "${sql(2)}", connection))
+                {
+                  command2.Transaction = transaction2;
+                  command2.ExecuteNonQuery();
+
+                  transaction1.Commit();
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+  }] true true true results errors System.Data.SQLite.dll]
+
+  list $code $results \
+      [expr {[info exists errors] ? $errors : ""}] \
+      [expr {$code eq "Ok" ? [catch {
+        object invoke _Dynamic${id}.Test${id} Main
+      } result] : [set result ""]}] $result \
+      [sql execute -execute reader -format list $db \
+          "SELECT x FROM t1 ORDER BY x;"]
+} -cleanup {
+  cleanupDb $fileName
+
+  unset -nocomplain result results errors code
+  unset -nocomplain sql flags dataSource id db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite compileCSharp} -match regexp -result {^Ok\
+System#CodeDom#Compiler#CompilerResults#\d+ \{\} 0 \{\} \{1 2 3\}$}}
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.3 {rollback outer transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.3.db]
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+  }
+
+  set sql(1) { \
+    INSERT INTO t1(x) VALUES(2); \
+  }
+
+  set sql(2) { \
+    INSERT INTO t1(x) VALUES(3); \
+  }
+
+  set id [object invoke Interpreter.GetActive NextId]
+  set dataSource [file join [getDatabaseDirectory] $fileName]
+  set flags AllowNestedTransactions
+
+  unset -nocomplain results errors
+
+  set code [compileCSharpWith [subst {
+    using System.Data.SQLite;
+
+    namespace _Dynamic${id}
+    {
+      public static class Test${id}
+      {
+        public static void Main()
+        {
+          using (SQLiteConnection connection = new SQLiteConnection(
+              "Data Source=${dataSource};[getFlagsProperty ${flags}]"))
+          {
+            connection.Open();
+
+            using (SQLiteTransaction transaction1 =
+                connection.BeginTransaction())
+            {
+              using (SQLiteCommand command1 = new SQLiteCommand(
+                  "${sql(1)}", connection))
+              {
+                command1.Transaction = transaction1;
+                command1.ExecuteNonQuery();
+              }
+
+              using (SQLiteTransaction transaction2 =
+                  connection.BeginTransaction())
+              {
+                using (SQLiteCommand command2 = new SQLiteCommand(
+                    "${sql(2)}", connection))
+                {
+                  command2.Transaction = transaction2;
+                  command2.ExecuteNonQuery();
+
+                  transaction1.Rollback();
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+  }] true true true results errors System.Data.SQLite.dll]
+
+  list $code $results \
+      [expr {[info exists errors] ? $errors : ""}] \
+      [expr {$code eq "Ok" ? [catch {
+        object invoke _Dynamic${id}.Test${id} Main
+      } result] : [set result ""]}] $result \
+      [sql execute -execute reader -format list $db \
+          "SELECT x FROM t1 ORDER BY x;"]
+} -cleanup {
+  cleanupDb $fileName
+
+  unset -nocomplain result results errors code
+  unset -nocomplain sql flags dataSource id db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite compileCSharp} -match regexp -result {^Ok\
+System#CodeDom#Compiler#CompilerResults#\d+ \{\} 0 \{\} 1$}}
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.4 {commit middle transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.4.db]
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+  }
+
+  set sql(1) { \
+    INSERT INTO t1(x) VALUES(2); \
+  }
+
+  set sql(2) { \
+    INSERT INTO t1(x) VALUES(3); \
+  }
+
+  set sql(3) { \
+    INSERT INTO t1(x) VALUES(4); \
+  }
+
+  set id [object invoke Interpreter.GetActive NextId]
+  set dataSource [file join [getDatabaseDirectory] $fileName]
+  set flags AllowNestedTransactions
+
+  unset -nocomplain results errors
+
+  set code [compileCSharpWith [subst {
+    using System.Data.SQLite;
+
+    namespace _Dynamic${id}
+    {
+      public static class Test${id}
+      {
+        public static void Main()
+        {
+          using (SQLiteConnection connection = new SQLiteConnection(
+              "Data Source=${dataSource};[getFlagsProperty ${flags}]"))
+          {
+            connection.Open();
+
+            using (SQLiteTransaction transaction1 =
+                connection.BeginTransaction())
+            {
+              using (SQLiteCommand command1 = new SQLiteCommand(
+                  "${sql(1)}", connection))
+              {
+                command1.Transaction = transaction1;
+                command1.ExecuteNonQuery();
+              }
+
+              using (SQLiteTransaction transaction2 =
+                  connection.BeginTransaction())
+              {
+                using (SQLiteCommand command2 = new SQLiteCommand(
+                    "${sql(2)}", connection))
+                {
+                  command2.Transaction = transaction2;
+                  command2.ExecuteNonQuery();
+                }
+
+                using (SQLiteTransaction transaction3 =
+                    connection.BeginTransaction())
+                {
+                  using (SQLiteCommand command3 = new SQLiteCommand(
+                      "${sql(3)}", connection))
+                  {
+                    command3.Transaction = transaction3;
+                    command3.ExecuteNonQuery();
+
+                    transaction2.Commit();
+                  }
+                }
+              }
+
+              transaction1.Commit();
+            }
+          }
+        }
+      }
+    }
+  }] true true true results errors System.Data.SQLite.dll]
+
+  list $code $results \
+      [expr {[info exists errors] ? $errors : ""}] \
+      [expr {$code eq "Ok" ? [catch {
+        object invoke _Dynamic${id}.Test${id} Main
+      } result] : [set result ""]}] $result \
+      [sql execute -execute reader -format list $db \
+          "SELECT x FROM t1 ORDER BY x;"]
+} -cleanup {
+  cleanupDb $fileName
+
+  unset -nocomplain result results errors code
+  unset -nocomplain sql flags dataSource id db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite compileCSharp} -match regexp -result {^Ok\
+System#CodeDom#Compiler#CompilerResults#\d+ \{\} 0 \{\} \{1 2 3 4\}$}}
+
+###############################################################################
+
+runTest {test tkt-1f7bfff467-1.5 {rollback middle transaction} -setup {
+  setupDb [set fileName tkt-1f7bfff467-1.5.db]
+} -body {
+  sql execute $db {
+    CREATE TABLE t1(x);
+    INSERT INTO t1(x) VALUES(1);
+  }
+
+  set sql(1) { \
+    INSERT INTO t1(x) VALUES(2); \
+  }
+
+  set sql(2) { \
+    INSERT INTO t1(x) VALUES(3); \
+  }
+
+  set sql(3) { \
+    INSERT INTO t1(x) VALUES(4); \
+  }
+
+  set id [object invoke Interpreter.GetActive NextId]
+  set dataSource [file join [getDatabaseDirectory] $fileName]
+  set flags AllowNestedTransactions
+
+  unset -nocomplain results errors
+
+  set code [compileCSharpWith [subst {
+    using System.Data.SQLite;
+
+    namespace _Dynamic${id}
+    {
+      public static class Test${id}
+      {
+        public static void Main()
+        {
+          using (SQLiteConnection connection = new SQLiteConnection(
+              "Data Source=${dataSource};[getFlagsProperty ${flags}]"))
+          {
+            connection.Open();
+
+            using (SQLiteTransaction transaction1 =
+                connection.BeginTransaction())
+            {
+              using (SQLiteCommand command1 = new SQLiteCommand(
+                  "${sql(1)}", connection))
+              {
+                command1.Transaction = transaction1;
+                command1.ExecuteNonQuery();
+              }
+
+              using (SQLiteTransaction transaction2 =
+                  connection.BeginTransaction())
+              {
+                using (SQLiteCommand command2 = new SQLiteCommand(
+                    "${sql(2)}", connection))
+                {
+                  command2.Transaction = transaction2;
+                  command2.ExecuteNonQuery();
+                }
+
+                using (SQLiteTransaction transaction3 =
+                    connection.BeginTransaction())
+                {
+                  using (SQLiteCommand command3 = new SQLiteCommand(
+                      "${sql(3)}", connection))
+                  {
+                    command3.Transaction = transaction3;
+                    command3.ExecuteNonQuery();
+
+                    transaction2.Rollback();
+                  }
+                }
+              }
+
+              transaction1.Commit();
+            }
+          }
+        }
+      }
+    }
+  }] true true true results errors System.Data.SQLite.dll]
+
+  list $code $results \
+      [expr {[info exists errors] ? $errors : ""}] \
+      [expr {$code eq "Ok" ? [catch {
+        object invoke _Dynamic${id}.Test${id} Main
+      } result] : [set result ""]}] $result \
+      [sql execute -execute reader -format list $db \
+          "SELECT x FROM t1 ORDER BY x;"]
+} -cleanup {
+  cleanupDb $fileName
+
+  unset -nocomplain result results errors code
+  unset -nocomplain sql flags dataSource id db fileName
+} -constraints {eagle command.object monoBug28 command.sql compile.DATA SQLite\
+System.Data.SQLite compileCSharp} -match regexp -result {^Ok\
+System#CodeDom#Compiler#CompilerResults#\d+ \{\} 0 \{\} \{1 2\}$}}
+
+###############################################################################
+
+runSQLiteTestEpilogue
+runTestEpilogue

Index: lib/System.Data.SQLite/common.eagle
==================================================================
--- lib/System.Data.SQLite/common.eagle
+++ lib/System.Data.SQLite/common.eagle
@@ -2660,10 +2660,19 @@
       #       of those known to the Eagle interpreter.
       #
       object invoke -flags +NonPublic Interpreter.GetActive.connections Add \
           $db $connection
     }
+
+    proc removeDbTransaction { transaction } {
+      #
+      # NOTE: Remove the database transaction provided by our caller from the
+      #       list of those known to the Eagle interpreter.
+      #
+      object invoke -flags +NonPublic Interpreter.GetActive.transactions \
+          Remove $transaction
+    }
 
     proc getRowsFromDataTable { dataTable {valueCallback ""} } {
       set rows [list]
       set count [$dataTable Columns.Count]
 

Index: readme.htm
==================================================================
--- readme.htm
+++ readme.htm
@@ -214,10 +214,11 @@
 <ul>
     <li>Updated to <a href="https://www.sqlite.org/releaselog/3_15_1.html">SQLite 3.15.1</a>.</li>
     <li>Updated the <a href="https://www.sqlite.org/json1.html">JSON1</a> extension to check-in <a href="https://www.sqlite.org/src/info/b540984915">[b540984915]</a>.</li>
     <li>Add the &quot;%PreLoadSQLite_AssemblyDirectory%&quot;, &quot;%PreLoadSQLite_TargetFramework%&quot;, and &quot;%PreLoadSQLite_XmlConfigDirectory%&quot; <a href="https://system.data.sqlite.org/index.html/artifact?ci=trunk&filename=Doc/Extra/Provider/environment.html">replacement tokens</a> for use in configuration setting values. Pursuant to [d4728aecb7].</li>
     <li>Prevent the GetByte, GetChar, and GetInt16 methods of the SQLiteDataReader class from throwing exceptions for large integer values. Pursuant to [5535448538].&nbsp;<b>** Potentially Incompatible Change **</b></li>
+    <li>Use <a href="https://www.sqlite.org/lang_savepoint.html">SAVEPOINTs</a> to properly implement nested transactions when the new AllowNestedTransactions connection flag is used. Fix for [1f7bfff467].</li>
 </ul>
 <p>
     <b>1.0.103.0 - September 15, 2016</b>
 </p>
 <ul>

Index: www/news.wiki
==================================================================
--- www/news.wiki
+++ www/news.wiki
@@ -8,10 +8,11 @@
 <ul>
     <li>Updated to [https://www.sqlite.org/releaselog/3_15_1.html|SQLite 3.15.1].</li>
     <li>Updated the [https://www.sqlite.org/json1.html|JSON1] extension to check-in [https://www.sqlite.org/src/info/b540984915|b540984915].</li>
     <li>Add the &quot;%PreLoadSQLite_AssemblyDirectory%&quot;, &quot;%PreLoadSQLite_TargetFramework%&quot;, and &quot;%PreLoadSQLite_XmlConfigDirectory%&quot; [https://system.data.sqlite.org/index.html/artifact?ci=trunk&filename=Doc/Extra/Provider/environment.html|replacement tokens] for use in configuration setting values. Pursuant to [d4728aecb7].</li>
     <li>Prevent the GetByte, GetChar, and GetInt16 methods of the SQLiteDataReader class from throwing exceptions for large integer values. Pursuant to [5535448538].&nbsp;<b>** Potentially Incompatible Change **</b></li>
+    <li>Use [https://www.sqlite.org/lang_savepoint.html|SAVEPOINTs] to properly implement nested transactions when the new AllowNestedTransactions connection flag is used. Fix for [1f7bfff467].</li>
 </ul>
 <p>
     <b>1.0.103.0 - September 15, 2016</b>
 </p>
 <ul>