diff --git a/modules/angular2/src/alt_router/router.ts b/modules/angular2/src/alt_router/router.ts
index 862364b60b..b5630beac0 100644
--- a/modules/angular2/src/alt_router/router.ts
+++ b/modules/angular2/src/alt_router/router.ts
@@ -2,7 +2,12 @@ import {OnInit, provide, ReflectiveInjector, ComponentResolver} from 'angular2/c
 import {RouterOutlet} from './directives/router_outlet';
 import {Type, isBlank, isPresent} from 'angular2/src/facade/lang';
 import {ListWrapper} from 'angular2/src/facade/collection';
-import {EventEmitter, Observable, PromiseWrapper} from 'angular2/src/facade/async';
+import {
+  EventEmitter,
+  Observable,
+  PromiseWrapper,
+  ObservableWrapper
+} from 'angular2/src/facade/async';
 import {StringMapWrapper} from 'angular2/src/facade/collection';
 import {BaseException} from 'angular2/src/facade/exceptions';
 import {RouterUrlSerializer} from './router_url_serializer';
@@ -33,13 +38,14 @@ export class RouterOutletMap {
 export class Router {
   private _prevTree: Tree<RouteSegment>;
   private _urlTree: Tree<UrlSegment>;
-
+  private _locationSubscription: any;
   private _changes: EventEmitter<void> = new EventEmitter<void>();
 
   constructor(private _rootComponent: Object, private _rootComponentType: Type,
               private _componentResolver: ComponentResolver,
               private _urlSerializer: RouterUrlSerializer,
               private _routerOutletMap: RouterOutletMap, private _location: Location) {
+    this._setUpLocationChangeListener();
     this.navigateByUrl(this._location.path());
   }
 
@@ -53,6 +59,13 @@ export class Router {
     return this._navigate(this.createUrlTree(changes, segment));
   }
 
+  dispose(): void { ObservableWrapper.dispose(this._locationSubscription); }
+
+  private _setUpLocationChangeListener(): void {
+    this._locationSubscription = this._location.subscribe(
+        (change) => { this._navigate(this._urlSerializer.parse(change['url'])); });
+  }
+
   private _navigate(url: Tree<UrlSegment>): Promise<void> {
     this._urlTree = url;
     return recognize(this._componentResolver, this._rootComponentType, url)
diff --git a/modules/angular2/src/alt_router/router_providers_common.ts b/modules/angular2/src/alt_router/router_providers_common.ts
index c5c3153d8a..e80e602d94 100644
--- a/modules/angular2/src/alt_router/router_providers_common.ts
+++ b/modules/angular2/src/alt_router/router_providers_common.ts
@@ -24,6 +24,8 @@ function routerFactory(app: ApplicationRef, componentResolver: ComponentResolver
     throw new BaseException("Bootstrap at least one component before injecting Router.");
   }
   // TODO: vsavkin this should not be null
-  return new Router(null, app.componentTypes[0], componentResolver, urlSerializer, routerOutletMap,
-                    location);
+  let router = new Router(null, app.componentTypes[0], componentResolver, urlSerializer,
+                          routerOutletMap, location);
+  app.registerDisposeListener(() => router.dispose());
+  return router;
 }
\ No newline at end of file
diff --git a/modules/angular2/test/alt_router/integration_spec.ts b/modules/angular2/test/alt_router/integration_spec.ts
index 854768f63f..7e90d73986 100644
--- a/modules/angular2/test/alt_router/integration_spec.ts
+++ b/modules/angular2/test/alt_router/integration_spec.ts
@@ -64,6 +64,19 @@ export function main() {
          expect(location.path()).toEqual('/team/33/simple');
        })));
 
+    it('should navigate when locations changes',
+       fakeAsync(inject([Router, TestComponentBuilder, Location], (router, tcb, location) => {
+         let fixture = tcb.createFakeAsync(RootCmp);
+
+         router.navigateByUrl('/team/22/user/victor');
+         advance(fixture);
+
+         location.simulateHashChange("/team/22/user/fedor");
+         advance(fixture);
+
+         expect(fixture.debugElement.nativeElement).toHaveText('team 22 { hello fedor, aux:  }');
+       })));
+
     it('should support nested routes',
        fakeAsync(inject([Router, TestComponentBuilder], (router, tcb) => {
          let fixture = tcb.createFakeAsync(RootCmp);
diff --git a/modules/playground/src/alt_routing/inbox-app.ts b/modules/playground/src/alt_routing/inbox-app.ts
index 5a489c528c..179468ed86 100644
--- a/modules/playground/src/alt_routing/inbox-app.ts
+++ b/modules/playground/src/alt_routing/inbox-app.ts
@@ -7,7 +7,7 @@ import {
   ROUTER_PROVIDERS,
   OnActivate,
   RouteSegment,
-  Tree
+  Tree,
 } from 'angular2/alt_router';
 import * as db from './data';
 import {Location} from 'angular2/platform/common';