diff --git a/ipam/allocator.go b/ipam/allocator.go
index 958788cf..8e6cd6a8 100644
--- a/ipam/allocator.go
+++ b/ipam/allocator.go
@@ -56,20 +56,20 @@ type Allocator struct {
 	paxosTicker      *time.Ticker
 	shuttingDown     bool // to avoid doing any requests while trying to shut down
 	now              func() time.Time
-	namesFunc        func() map[router.PeerName]struct{}
+	peerValidFunc    func(router.PeerName) bool
 }
 
 // NewAllocator creates and initialises a new Allocator
-func NewAllocator(ourName router.PeerName, ourUID router.PeerUID, ourNickname string, universe address.Range, quorum uint, names func() map[router.PeerName]struct{}) *Allocator {
+func NewAllocator(ourName router.PeerName, ourUID router.PeerUID, ourNickname string, universe address.Range, quorum uint, validPeer func(name router.PeerName) bool) *Allocator {
 	return &Allocator{
-		ourName:   ourName,
-		universe:  universe,
-		ring:      ring.New(universe.Start, universe.End, ourName),
-		owned:     make(map[string][]address.Address),
-		paxos:     paxos.NewNode(ourName, ourUID, quorum),
-		nicknames: map[router.PeerName]string{ourName: ourNickname},
-		now:       time.Now,
-		namesFunc: names,
+		ourName:       ourName,
+		universe:      universe,
+		ring:          ring.New(universe.Start, universe.End, ourName),
+		owned:         make(map[string][]address.Address),
+		paxos:         paxos.NewNode(ourName, ourUID, quorum),
+		nicknames:     map[router.PeerName]string{ourName: ourNickname},
+		now:           time.Now,
+		peerValidFunc: validPeer,
 	}
 }
 
@@ -276,6 +276,33 @@ func (alloc *Allocator) Free(ident string, addrToFree address.Address) error {
 	return <-errChan
 }
 
+func (alloc *Allocator) pickPeerFromNicknames(isValid func(router.PeerName) bool) router.PeerName {
+	for name := range alloc.nicknames {
+		if name != alloc.ourName && isValid(name) {
+			return name
+		}
+	}
+	return router.UnknownPeerName
+}
+
+func (alloc *Allocator) pickPeerForTransfer() router.PeerName {
+	// first try alive peers that actively participate in IPAM (i.e. have entries)
+	if heir := alloc.ring.PickPeerForTransfer(alloc.peerValidFunc); heir != router.UnknownPeerName {
+		return heir
+	}
+	// next try alive peers that have IPAM enabled but have no entries
+	if heir := alloc.pickPeerFromNicknames(alloc.peerValidFunc); heir != router.UnknownPeerName {
+		return heir
+	}
+	// next try disappeared peers that still have entries
+	t := func(router.PeerName) bool { return true }
+	if heir := alloc.ring.PickPeerForTransfer(t); heir != router.UnknownPeerName {
+		return heir
+	}
+	// finally, disappeared peers that that passively participated in IPAM
+	return alloc.pickPeerFromNicknames(t)
+}
+
 // Shutdown (Sync)
 func (alloc *Allocator) Shutdown() {
 	alloc.infof("Shutdown")
@@ -284,16 +311,7 @@ func (alloc *Allocator) Shutdown() {
 		alloc.shuttingDown = true
 		alloc.cancelOps(&alloc.pendingClaims)
 		alloc.cancelOps(&alloc.pendingAllocates)
-		heir := alloc.ring.PickPeerForTransfer()
-		if heir == router.UnknownPeerName && alloc.namesFunc != nil {
-			// No peers in the ring; pick one via the function we were given at init
-			for peerName := range alloc.namesFunc() {
-				if peerName != alloc.ourName {
-					heir = peerName
-					break
-				}
-			}
-		}
+		heir := alloc.pickPeerForTransfer()
 		if heir != router.UnknownPeerName {
 			alloc.ring.Transfer(alloc.ourName, heir)
 			alloc.space.Clear()
@@ -322,7 +340,6 @@ func (alloc *Allocator) AdminTakeoverRanges(peerNameOrNickname string) error {
 			return
 		}
 
-		delete(alloc.nicknames, peername)
 		newRanges, err := alloc.ring.Transfer(peername, alloc.ourName)
 		alloc.space.AddRanges(newRanges)
 		resultChan <- err
@@ -344,11 +361,11 @@ func (alloc *Allocator) lookupPeername(name string) (router.PeerName, error) {
 	return router.PeerNameFromString(name)
 }
 
-// Restrict the peers in "nicknames" to those in the ring and our own
+// Restrict the peers in "nicknames" to those in the ring plus peers known to the router
 func (alloc *Allocator) pruneNicknames() {
 	ringPeers := alloc.ring.PeerNames()
 	for name := range alloc.nicknames {
-		if _, ok := ringPeers[name]; !ok && name != alloc.ourName {
+		if _, ok := ringPeers[name]; !ok && !alloc.peerValidFunc(name) {
 			delete(alloc.nicknames, name)
 		}
 	}
diff --git a/ipam/ring/ring.go b/ipam/ring/ring.go
index b82bad1d..fee7991e 100644
--- a/ipam/ring/ring.go
+++ b/ipam/ring/ring.go
@@ -470,9 +470,9 @@ func (r *Ring) ChoosePeersToAskForSpace(start, end address.Address) []router.Pee
 	return result
 }
 
-func (r *Ring) PickPeerForTransfer() router.PeerName {
+func (r *Ring) PickPeerForTransfer(isValid func(router.PeerName) bool) router.PeerName {
 	for _, entry := range r.Entries {
-		if entry.Peer != r.Peer {
+		if entry.Peer != r.Peer && isValid(entry.Peer) {
 			return entry.Peer
 		}
 	}
diff --git a/ipam/testutils_test.go b/ipam/testutils_test.go
index ea954aa0..144e313f 100644
--- a/ipam/testutils_test.go
+++ b/ipam/testutils_test.go
@@ -135,7 +135,7 @@ func makeAllocator(name string, cidrStr string, quorum uint) (*Allocator, addres
 	}
 
 	alloc := NewAllocator(peername, router.PeerUID(rand.Int63()),
-		"nick-"+name, cidr.Range(), quorum, nil)
+		"nick-"+name, cidr.Range(), quorum, func(router.PeerName) bool { return true })
 
 	return alloc, cidr.HostRange()
 }
diff --git a/prog/weaver/main.go b/prog/weaver/main.go
index 5444f2f4..dae87086 100644
--- a/prog/weaver/main.go
+++ b/prog/weaver/main.go
@@ -368,8 +368,8 @@ func createAllocator(router *weave.Router, ipRangeStr string, defaultSubnetStr s
 			Log.Fatalf("IP address allocation default subnet %s does not overlap with allocation range %s", defaultSubnet, ipRange)
 		}
 	}
-	namesFunc := func() map[weave.PeerName]struct{} { return router.Peers.Names() }
-	allocator := ipam.NewAllocator(router.Ourself.Peer.Name, router.Ourself.Peer.UID, router.Ourself.Peer.NickName, ipRange.Range(), quorum, namesFunc)
+	isValidFunc := func(name weave.PeerName) bool { return router.Peers.Fetch(name) != nil }
+	allocator := ipam.NewAllocator(router.Ourself.Peer.Name, router.Ourself.Peer.UID, router.Ourself.Peer.NickName, ipRange.Range(), quorum, isValidFunc)
 
 	allocator.SetInterfaces(router.NewGossip("IPallocation", allocator))
 	allocator.Start()