diff --git a/modules/angular2/src/core/compiler/element_injector.ts b/modules/angular2/src/core/compiler/element_injector.ts
index 821d5e736a..aecdc6edf4 100644
--- a/modules/angular2/src/core/compiler/element_injector.ts
+++ b/modules/angular2/src/core/compiler/element_injector.ts
@@ -1027,7 +1027,8 @@ export class ElementInjector extends TreeNode<ElementInjector> {
     if (queryRef.query.descendants == false) {
       if (this == queryRef.originator) {
         this._addQueryToTreeSelfAndRecurse(queryRef);
-      } else if (this.parent == queryRef.originator && this._proto.distanceToParent == 1) {
+        // TODO(rado): add check for distance to parent = 1 when issue #2707 is fixed.
+      } else if (this.parent == queryRef.originator) {
         this._assignQueryRef(queryRef);
       }
     } else {
diff --git a/modules/angular2/src/core/compiler/view_manager_utils.ts b/modules/angular2/src/core/compiler/view_manager_utils.ts
index 9f7cba1626..2ba7b27b00 100644
--- a/modules/angular2/src/core/compiler/view_manager_utils.ts
+++ b/modules/angular2/src/core/compiler/view_manager_utils.ts
@@ -86,6 +86,7 @@ export class AppViewManagerUtils {
     this._hydrateView(hostView, injector, null, new Object(), null);
   }
 
+  // Misnomer: this method is attaching next to the view container.
   attachViewInContainer(parentView: viewModule.AppView, boundElementIndex: number,
                         contextView: viewModule.AppView, contextBoundElementIndex: number,
                         atIndex: number, view: viewModule.AppView) {
@@ -104,7 +105,11 @@ export class AppViewManagerUtils {
     }
     var elementInjector = contextView.elementInjectors[contextBoundElementIndex];
     for (var i = view.rootElementInjectors.length - 1; i >= 0; i--) {
-      view.rootElementInjectors[i].linkAfter(elementInjector, sibling);
+      if (isPresent(elementInjector.parent)) {
+        view.rootElementInjectors[i].linkAfter(elementInjector.parent, sibling);
+      } else {
+        contextView.rootElementInjectors.push(view.rootElementInjectors[i]);
+      }
     }
   }
 
@@ -115,7 +120,13 @@ export class AppViewManagerUtils {
     view.changeDetector.remove();
     ListWrapper.removeAt(viewContainer.views, atIndex);
     for (var i = 0; i < view.rootElementInjectors.length; ++i) {
-      view.rootElementInjectors[i].unlink();
+      var inj = view.rootElementInjectors[i];
+      if (isPresent(inj.parent)) {
+        inj.unlink();
+      } else {
+        var removeIdx = ListWrapper.indexOf(parentView.rootElementInjectors, inj);
+        ListWrapper.removeAt(parentView.rootElementInjectors, removeIdx);
+      }
     }
   }
 
diff --git a/modules/angular2/src/directives/ng_for.ts b/modules/angular2/src/directives/ng_for.ts
index e4a982a575..5041c477ad 100644
--- a/modules/angular2/src/directives/ng_for.ts
+++ b/modules/angular2/src/directives/ng_for.ts
@@ -107,7 +107,7 @@ export class NgFor {
     return movedTuples;
   }
 
-  static bulkInsert(tuples, viewContainer, protoViewRef) {
+  static bulkInsert(tuples, viewContainer: ViewContainerRef, protoViewRef: ProtoViewRef) {
     tuples.sort((a, b) => a.record.currentIndex - b.record.currentIndex);
     for (var i = 0; i < tuples.length; i++) {
       var tuple = tuples[i];
diff --git a/modules/angular2/src/facade/collection.dart b/modules/angular2/src/facade/collection.dart
index fa1f93f87a..2cd79c08cb 100644
--- a/modules/angular2/src/facade/collection.dart
+++ b/modules/angular2/src/facade/collection.dart
@@ -93,6 +93,8 @@ class StringMapWrapper {
 class ListWrapper {
   static List clone(Iterable l) => new List.from(l);
   static List createFixedSize(int size) => new List(size);
+  static List createGrowableSize(int size) =>
+      new List.generate(size, (_) => null, growable: true);
   static get(List m, int k) => m[k];
   static void set(List m, int k, v) {
     m[k] = v;
diff --git a/modules/angular2/src/facade/collection.ts b/modules/angular2/src/facade/collection.ts
index 175083d788..d0cf91b711 100644
--- a/modules/angular2/src/facade/collection.ts
+++ b/modules/angular2/src/facade/collection.ts
@@ -140,7 +140,10 @@ export class StringMapWrapper {
 }
 
 export class ListWrapper {
+  // JS has no way to express a staticly fixed size list, but dart does so we
+  // keep both methods.
   static createFixedSize(size): List<any> { return new List(size); }
+  static createGrowableSize(size): List<any> { return new List(size); }
   static get(m, k) { return m[k]; }
   static set(m, k, v) { m[k] = v; }
   static clone(array: List<any>) { return array.slice(0); }
diff --git a/modules/angular2/test/core/compiler/query_integration_spec.ts b/modules/angular2/test/core/compiler/query_integration_spec.ts
index ca7852da69..72a7932410 100644
--- a/modules/angular2/test/core/compiler/query_integration_spec.ts
+++ b/modules/angular2/test/core/compiler/query_integration_spec.ts
@@ -76,14 +76,11 @@ export function main() {
                });
          }));
 
-      // TODO(rado): The test below should be using descendants: false,
-      // but due to a bug with how injectors are hooked up query considers the
-      // directives to be distances 2 instead of direct children.
       it('should reflect dynamically inserted directives',
          inject([TestBed, AsyncTestCompleter], (tb: TestBed, async) => {
            var template =
                '<div text="1"></div>' +
-               '<needs-query-desc text="2"><div *ng-if="shouldShow" [text]="\'3\'"></div></needs-query-desc>' +
+               '<needs-query text="2"><div *ng-if="shouldShow" [text]="\'3\'"></div></needs-query>' +
                '<div text="4"></div>';
 
            tb.createView(MyComp, {html: template})
@@ -104,7 +101,7 @@ export function main() {
          inject([TestBed, AsyncTestCompleter], (tb: TestBed, async) => {
            var template =
                '<div text="1"></div>' +
-               '<needs-query-desc text="2"><div *ng-for="var i of list" [text]="i"></div></needs-query-desc>' +
+               '<needs-query text="2"><div *ng-for="var i of list" [text]="i"></div></needs-query>' +
                '<div text="4"></div>';
 
            tb.createView(MyComp, {html: template})
@@ -126,10 +123,10 @@ export function main() {
     describe("onChange", () => {
       it('should notify query on change',
          inject([TestBed, AsyncTestCompleter], (tb: TestBed, async) => {
-           var template = '<needs-query-desc #q>' +
+           var template = '<needs-query #q>' +
                           '<div text="1"></div>' +
                           '<div *ng-if="shouldShow" text="2"></div>' +
-                          '</needs-query-desc>';
+                          '</needs-query>';
 
            tb.createView(MyComp, {html: template})
                .then((view) => {
diff --git a/modules/angular2/test/core/compiler/view_manager_utils_spec.ts b/modules/angular2/test/core/compiler/view_manager_utils_spec.ts
index ec74c4ff48..0c67fb0a2c 100644
--- a/modules/angular2/test/core/compiler/view_manager_utils_spec.ts
+++ b/modules/angular2/test/core/compiler/view_manager_utils_spec.ts
@@ -27,7 +27,8 @@ import {ElementBinder} from 'angular2/src/core/compiler/element_binder';
 import {
   DirectiveBinding,
   ElementInjector,
-  PreBuiltObjects
+  PreBuiltObjects,
+  ProtoElementInjector
 } from 'angular2/src/core/compiler/element_injector';
 import {DirectiveResolver} from 'angular2/src/core/compiler/directive_resolver';
 import {Component} from 'angular2/annotations';
@@ -66,10 +67,12 @@ export function main() {
       return res;
     }
 
-    function createElementInjector() {
+    function createElementInjector(parent = null) {
       var host = new SpyElementInjector();
       var appInjector = new SpyInjector();
-      return SpyObject.stub(new SpyElementInjector(),
+      var elementInjector =
+          isPresent(parent) ? new SpyElementInjectorWithParent(parent) : new SpyElementInjector();
+      return SpyObject.stub(elementInjector,
                             {
                               'isExportingComponent': false,
                               'isExportingElement': false,
@@ -82,15 +85,19 @@ export function main() {
                             {});
     }
 
-    function createView(pv = null) {
+    function createView(pv = null, nestedInjectors = false) {
       if (isBlank(pv)) {
         pv = createProtoView();
       }
       var view = new AppView(null, pv, new Map());
-      var elementInjectors = ListWrapper.createFixedSize(pv.elementBinders.length);
+      var elementInjectors = ListWrapper.createGrowableSize(pv.elementBinders.length);
       var preBuiltObjects = ListWrapper.createFixedSize(pv.elementBinders.length);
       for (var i = 0; i < pv.elementBinders.length; i++) {
-        elementInjectors[i] = createElementInjector();
+        if (nestedInjectors && i > 0) {
+          elementInjectors[i] = createElementInjector(elementInjectors[i - 1]);
+        } else {
+          elementInjectors[i] = createElementInjector();
+        }
         preBuiltObjects[i] = new SpyPreBuiltObjects();
       }
       view.init(<any>new SpyChangeDetector(), elementInjectors, elementInjectors, preBuiltObjects,
@@ -118,10 +125,9 @@ export function main() {
         var spyCd = <any>componentView.changeDetector;
         spyCd.spy('hydrate').andCallFake(log.fn('hydrateCD'));
 
-        utils.hydrateComponentView(hostView, 0)
+        utils.hydrateComponentView(hostView, 0);
 
-            expect(log.result())
-                .toEqual('hydrate; hydrateCD');
+        expect(log.result()).toEqual('hydrate; hydrateCD');
       });
 
     });
@@ -187,25 +193,32 @@ export function main() {
     describe('attachViewInContainer', () => {
       var parentView, contextView, childView;
 
-      function createViews() {
+      function createViews(numInj = 1) {
         var parentPv = createProtoView([createEmptyElBinder()]);
         parentView = createView(parentPv);
 
-        var contextPv = createProtoView([createEmptyElBinder()]);
-        contextView = createView(contextPv);
+        var binders = [];
+        for (var i = 0; i < numInj; i++) binders.push(createEmptyElBinder());
+        var contextPv = createProtoView(binders);
+        contextView = createView(contextPv, true);
 
         var childPv = createProtoView([createEmptyElBinder()]);
         childView = createView(childPv);
       }
 
+      it('should link the views rootElementInjectors at the given context', () => {
+        createViews();
+        utils.attachViewInContainer(parentView, 0, contextView, 0, 0, childView);
+        expect(contextView.elementInjectors.length).toEqual(2);
+      });
+
       it('should link the views rootElementInjectors after the elementInjector at the given context',
          () => {
-           createViews();
-           utils.attachViewInContainer(parentView, 0, contextView, 0, 0, childView);
+           createViews(2);
+           utils.attachViewInContainer(parentView, 0, contextView, 1, 0, childView);
            expect(childView.rootElementInjectors[0].spy('linkAfter'))
                .toHaveBeenCalledWith(contextView.elementInjectors[0], null);
          });
-
     });
 
     describe('hydrateViewInContainer', () => {
@@ -279,6 +292,17 @@ class SpyElementInjector extends SpyObject {
   noSuchMethod(m) { return super.noSuchMethod(m) }
 }
 
+@proxy
+@IMPLEMENTS(ElementInjector)
+class SpyElementInjectorWithParent extends SpyObject {
+  parent: ElementInjector;
+  constructor(parent) {
+    super(ElementInjector);
+    this.parent = parent;
+  }
+  noSuchMethod(m) { return super.noSuchMethod(m) }
+}
+
 @proxy
 @IMPLEMENTS(PreBuiltObjects)
 class SpyPreBuiltObjects extends SpyObject {