diff --git a/src/cpp/ripple/AccountState.cpp b/src/cpp/ripple/AccountState.cpp
index beaa5cbcc9..8e6ff69a78 100644
--- a/src/cpp/ripple/AccountState.cpp
+++ b/src/cpp/ripple/AccountState.cpp
@@ -15,8 +15,7 @@ AccountState::AccountState(const RippleAddress& naAccountID) : mAccountID(naAcco
 {
 	if (!naAccountID.isValid()) return;
 
-	mLedgerEntry = boost::make_shared<SerializedLedgerEntry>(ltACCOUNT_ROOT);
-	mLedgerEntry->setIndex(Ledger::getAccountRootIndex(naAccountID));
+	mLedgerEntry = boost::make_shared<SerializedLedgerEntry>(ltACCOUNT_ROOT, Ledger::getAccountRootIndex(naAccountID));
 	mLedgerEntry->setFieldAccount(sfAccount, naAccountID.getAccountID());
 
 	mValid = true;
diff --git a/src/cpp/ripple/Ledger.cpp b/src/cpp/ripple/Ledger.cpp
index 693b3cd0d2..22eeba34a1 100644
--- a/src/cpp/ripple/Ledger.cpp
+++ b/src/cpp/ripple/Ledger.cpp
@@ -756,8 +756,7 @@ SLE::pointer Ledger::getASNode(LedgerStateParms& parms, const uint256& nodeID,
 		}
 
 		parms = parms | lepCREATED | lepOKAY;
-		SLE::pointer sle=boost::make_shared<SLE>(let);
-		sle->setIndex(nodeID);
+		SLE::pointer sle=boost::make_shared<SLE>(let, nodeID);
 
 		return sle;
 	}
@@ -890,7 +889,7 @@ uint256 Ledger::getAccountRootIndex(const uint160& uAccountID)
 uint256 Ledger::getLedgerHashIndex()
 { // get the index of the node that holds the last 256 ledgers
 	Serializer s(2);
-	s.add16(spaceHashes);
+	s.add16(spaceSkipList);
 	return s.getSHA512Half();
 }
 
@@ -898,7 +897,7 @@ uint256 Ledger::getLedgerHashIndex(uint32 desiredLedgerIndex)
 { // get the index of the node that holds the set of 256 ledgers that includes this ledger's hash
   // (or the first ledger after it if it's not a multiple of 256)
 	Serializer s(6);
-	s.add16(spaceHashes);
+	s.add16(spaceSkipList);
 	s.add32(desiredLedgerIndex >> 16);
 	return s.getSHA512Half();
 }
@@ -1063,6 +1062,56 @@ bool Ledger::assertSane()
 	return false;
 }
 
+void Ledger::updateSkipList()
+{ // update the skip list with the information from our previous ledger
+
+	if (mLedgerSeq == 0) // genesis ledger has no previous ledger
+		return;
+
+	uint32 prevIndex = mLedgerSeq - 1;
+
+	if ((prevIndex & 0xff) == 0)
+	{ // update record of every 256th ledger
+		uint256 hash = getLedgerHashIndex(prevIndex);
+		SLE::pointer skipList = getSLE(hash);
+		std::vector<uint256> hashes;
+
+		if (!skipList)
+			skipList = boost::make_shared<SLE>(ltLEDGER_HASHES, hash);
+		else
+			hashes = skipList->getFieldV256(sfHashes).peekValue();
+
+		assert(hashes.size() <= 256);
+		hashes.push_back(mParentHash);
+		skipList->setFieldV256(sfHashes, STVector256(hashes));
+
+		if (writeBack(lepCREATE, skipList) == lepERROR)
+		{
+			assert(false);
+		}
+	}
+
+	// update record of past 256 ledger
+	uint256 hash = getLedgerHashIndex();
+	SLE::pointer skipList = getSLE(hash);
+	std::vector<uint256> hashes;
+	if (!skipList)
+		skipList = boost::make_shared<SLE>(ltLEDGER_HASHES, hash);
+	else
+		hashes = skipList->getFieldV256(sfHashes).peekValue();
+
+	assert(hashes.size() <= 256);
+	if (hashes.size() == 256)
+		hashes.erase(hashes.begin());
+	hashes.push_back(mParentHash);
+	skipList->setFieldV256(sfHashes, STVector256(hashes));
+
+	if (writeBack(lepCREATE, skipList) == lepERROR)
+	{
+		assert(false);
+	}
+}
+
 int Ledger::sPendingSaves = 0;
 boost::recursive_mutex Ledger::sPendingSaveLock;
 
diff --git a/src/cpp/ripple/Ledger.h b/src/cpp/ripple/Ledger.h
index d89fcbba42..fae8b107b1 100644
--- a/src/cpp/ripple/Ledger.h
+++ b/src/cpp/ripple/Ledger.h
@@ -166,6 +166,7 @@ public:
 	LedgerStateParms writeBack(LedgerStateParms parms, SLE::ref);
 	SLE::pointer getAccountRoot(const uint160& accountID);
 	SLE::pointer getAccountRoot(const RippleAddress& naAccountID);
+	void updateSkipList();
 
 	// database functions
 	static Ledger::pointer loadByIndex(uint32 ledgerIndex);
diff --git a/src/cpp/ripple/LedgerConsensus.cpp b/src/cpp/ripple/LedgerConsensus.cpp
index 96604df891..0fc07a4aad 100644
--- a/src/cpp/ripple/LedgerConsensus.cpp
+++ b/src/cpp/ripple/LedgerConsensus.cpp
@@ -1159,6 +1159,7 @@ void LedgerConsensus::accept(SHAMap::ref set)
 	newLCL->peekTransactionMap()->armDirty();
 	newLCL->peekAccountStateMap()->armDirty();
 	applyTransactions(set, newLCL, newLCL, failedTransactions, false);
+	newLCL->updateSkipList();
 	newLCL->setClosed();
 	boost::shared_ptr<SHAMap::SHADirtyMap> acctNodes = newLCL->peekAccountStateMap()->disarmDirty();
 	boost::shared_ptr<SHAMap::SHADirtyMap> txnNodes = newLCL->peekTransactionMap()->disarmDirty();
diff --git a/src/cpp/ripple/LedgerEntrySet.cpp b/src/cpp/ripple/LedgerEntrySet.cpp
index 3b3017b744..e7d361c671 100644
--- a/src/cpp/ripple/LedgerEntrySet.cpp
+++ b/src/cpp/ripple/LedgerEntrySet.cpp
@@ -72,8 +72,7 @@ SLE::pointer LedgerEntrySet::getEntry(const uint256& index, LedgerEntryAction& a
 SLE::pointer LedgerEntrySet::entryCreate(LedgerEntryType letType, const uint256& index)
 {
 	assert(index.isNonZero());
-	SLE::pointer sleNew = boost::make_shared<SLE>(letType);
-	sleNew->setIndex(index);
+	SLE::pointer sleNew = boost::make_shared<SLE>(letType, index);
 	entryCreate(sleNew);
 	return sleNew;
 }
diff --git a/src/cpp/ripple/LedgerFormats.h b/src/cpp/ripple/LedgerFormats.h
index cae045f23a..2c3f3cd5a4 100644
--- a/src/cpp/ripple/LedgerFormats.h
+++ b/src/cpp/ripple/LedgerFormats.h
@@ -29,7 +29,7 @@ enum LedgerNameSpace
 	spaceOwnerDir		= 'O',	// Directory of things owned by an account.
 	spaceBookDir		= 'B',	// Directory of order books.
 	spaceContract		= 'c',
-	spaceHashes			= 'h',
+	spaceSkipList		= 's',
 };
 
 enum LedgerSpecificFlags
diff --git a/src/cpp/ripple/SerializedLedger.cpp b/src/cpp/ripple/SerializedLedger.cpp
index 00a3539878..9f70f7c522 100644
--- a/src/cpp/ripple/SerializedLedger.cpp
+++ b/src/cpp/ripple/SerializedLedger.cpp
@@ -39,7 +39,8 @@ SerializedLedgerEntry::SerializedLedgerEntry(const Serializer& s, const uint256&
 	}
 }
 
-SerializedLedgerEntry::SerializedLedgerEntry(LedgerEntryType type) : STObject(sfLedgerEntry), mType(type)
+SerializedLedgerEntry::SerializedLedgerEntry(LedgerEntryType type, const uint256& index) :
+	STObject(sfLedgerEntry), mIndex(index), mType(type)
 {
 	mFormat = LedgerEntryFormat::getLgrFormat(type);
 	if (mFormat == NULL) throw std::runtime_error("invalid ledger entry type");
diff --git a/src/cpp/ripple/SerializedLedger.h b/src/cpp/ripple/SerializedLedger.h
index 7bbdfaf992..ec344d9b91 100644
--- a/src/cpp/ripple/SerializedLedger.h
+++ b/src/cpp/ripple/SerializedLedger.h
@@ -24,7 +24,7 @@ protected:
 public:
 	SerializedLedgerEntry(const Serializer& s, const uint256& index);
 	SerializedLedgerEntry(SerializerIterator& sit, const uint256& index);
-	SerializedLedgerEntry(LedgerEntryType type);
+	SerializedLedgerEntry(LedgerEntryType type, const uint256& index);
 
 	SerializedTypeID getSType() const { return STI_LEDGERENTRY; }
 	std::string getFullText() const;