diff --git a/src/core/monitor-config.c b/src/core/monitor-config.c
index 420c670b6..c223a38d1 100644
--- a/src/core/monitor-config.c
+++ b/src/core/monitor-config.c
@@ -55,6 +55,8 @@ typedef struct {
   char *serial;
 } MetaOutputKey;
 
+/* Keep this structure packed, so that we
+   can use memcmp */
 typedef struct {
   gboolean enabled;
   MetaRectangle rect;
@@ -147,6 +149,13 @@ output_key_equal (const MetaOutputKey *one,
     strcmp (one->serial, two->serial) == 0;
 }
 
+static gboolean
+output_config_equal (const MetaOutputConfig *one,
+                     const MetaOutputConfig *two)
+{
+  return memcmp (one, two, sizeof (MetaOutputConfig)) == 0;
+}
+
 static unsigned int
 config_hash (gconstpointer data)
 {
@@ -180,6 +189,30 @@ config_equal (gconstpointer one,
   return ok;
 }
 
+static gboolean
+config_equal_full (gconstpointer one,
+                   gconstpointer two)
+{
+  const MetaConfiguration *c_one = one;
+  const MetaConfiguration *c_two = two;
+  unsigned int i;
+  gboolean ok;
+
+  if (c_one->n_outputs != c_two->n_outputs)
+    return FALSE;
+
+  ok = TRUE;
+  for (i = 0; i < c_one->n_outputs && ok; i++)
+    {
+      ok = output_key_equal (&c_one->keys[i],
+                             &c_two->keys[i]);
+      ok = ok && output_config_equal (&c_one->outputs[i],
+                                      &c_two->outputs[i]);
+    }
+
+  return ok;
+}
+
 static void
 meta_monitor_config_init (MetaMonitorConfig *self)
 {
@@ -1243,6 +1276,12 @@ meta_monitor_config_update_current (MetaMonitorConfig  *self,
       init_config_from_output (&current->outputs[i], &outputs[i]);
     }
 
+  if (self->current && config_equal_full (current, self->current))
+    {
+      config_free (current);
+      return;
+    }
+
   if (self->current && !self->current_is_stored)
     config_free (self->current);
 
diff --git a/src/core/monitor-private.h b/src/core/monitor-private.h
index b0fd70c4c..beef289bb 100644
--- a/src/core/monitor-private.h
+++ b/src/core/monitor-private.h
@@ -301,6 +301,8 @@ GType meta_monitor_manager_get_type (void);
 void                meta_monitor_manager_initialize (void);
 MetaMonitorManager *meta_monitor_manager_get  (void);
 
+void                meta_monitor_manager_rebuild_derived   (MetaMonitorManager *manager);
+
 MetaMonitorInfo    *meta_monitor_manager_get_monitor_infos (MetaMonitorManager *manager,
 							    unsigned int       *n_infos);
 
@@ -379,6 +381,9 @@ void               meta_monitor_config_restore_previous (MetaMonitorConfig  *con
 void               meta_crtc_info_free   (MetaCRTCInfo   *info);
 void               meta_output_info_free (MetaOutputInfo *info);
 
+void               meta_monitor_manager_free_output_array (MetaOutput *old_outputs,
+                                                           int         n_old_outputs);
+
 /* Returns true if transform causes width and height to be inverted
    This is true for the odd transforms in the enum */
 static inline gboolean
diff --git a/src/core/monitor-xrandr.c b/src/core/monitor-xrandr.c
index bcceff80f..5e02c0ac6 100644
--- a/src/core/monitor-xrandr.c
+++ b/src/core/monitor-xrandr.c
@@ -974,11 +974,57 @@ meta_monitor_manager_xrandr_handle_xevent (MetaMonitorManager *manager,
 					   XEvent             *event)
 {
   MetaMonitorManagerXrandr *manager_xrandr = META_MONITOR_MANAGER_XRANDR (manager);
+  MetaOutput *old_outputs;
+  MetaCRTC *old_crtcs;
+  MetaMonitorMode *old_modes;
+  int n_old_outputs;
 
   if ((event->type - manager_xrandr->rr_event_base) != RRScreenChangeNotify)
     return FALSE;
 
   XRRUpdateConfiguration (event);
+
+  /* Save the old structures, so they stay valid during the update */
+  old_outputs = manager->outputs;
+  n_old_outputs = manager->n_outputs;
+  old_modes = manager->modes;
+  old_crtcs = manager->crtcs;
+
+  manager->serial++;
+  meta_monitor_manager_xrandr_read_current (manager);
+
+  /* Check if the current intended configuration has the same outputs
+     as the new real one, or if the event is a result of an XRandR call.
+     If so, we can go straight to rebuild the logical config and tell
+     the outside world.
+     Otherwise, this event was caused by hotplug, so give a chance to
+     MetaMonitorConfig.
+
+     Note that we need to check both the timestamps and the list of
+     outputs, because the X server might emit spurious events with
+     new configTimestamps (bug 702804), and the driver may have
+     changed the EDID for some other reason (old broken qxl and vbox
+     drivers...).
+  */
+  if (manager_xrandr->resources->timestamp >= manager_xrandr->resources->configTimestamp ||
+      meta_monitor_config_match_current (manager->config, manager))
+    {
+      /* This will be a no-op if the change was from our side, as
+         we already called it in the DBus method handler */
+      meta_monitor_config_update_current (manager->config, manager);
+
+      meta_monitor_manager_rebuild_derived (manager);
+    }
+  else
+    {
+      if (!meta_monitor_config_apply_stored (manager->config, manager))
+        meta_monitor_config_make_default (manager->config, manager);
+    }
+
+  meta_monitor_manager_free_output_array (old_outputs, n_old_outputs);
+  g_free (old_modes);
+  g_free (old_crtcs);
+
   return TRUE;
 }
 
diff --git a/src/core/monitor.c b/src/core/monitor.c
index 6aea00384..4f29ea19b 100644
--- a/src/core/monitor.c
+++ b/src/core/monitor.c
@@ -59,9 +59,6 @@ static void meta_monitor_manager_display_config_init (MetaDBusDisplayConfigIface
 G_DEFINE_TYPE_WITH_CODE (MetaMonitorManager, meta_monitor_manager, META_DBUS_TYPE_DISPLAY_CONFIG_SKELETON,
                          G_IMPLEMENT_INTERFACE (META_DBUS_TYPE_DISPLAY_CONFIG, meta_monitor_manager_display_config_init));
 
-static void free_output_array (MetaOutput *old_outputs,
-                               int         n_old_outputs);
-static void invalidate_logical_config (MetaMonitorManager *manager);
 static void initialize_dbus_interface (MetaMonitorManager *manager);
 
 static void
@@ -349,7 +346,7 @@ apply_config_dummy (MetaMonitorManager *manager,
   manager->screen_width = screen_width;
   manager->screen_height = screen_height;
 
-  invalidate_logical_config (manager);
+  meta_monitor_manager_rebuild_derived (manager);
 }
 
 static GBytes *
@@ -527,7 +524,7 @@ meta_monitor_manager_constructed (GObject *object)
 
       read_current_config (manager);
 
-      free_output_array (old_outputs, n_old_outputs);
+      meta_monitor_manager_free_output_array (old_outputs, n_old_outputs);
       g_free (old_modes);
       g_free (old_crtcs);
     }
@@ -558,9 +555,9 @@ meta_monitor_manager_set_power_save_mode (MetaMonitorManager *manager,
   manager->power_save_mode = mode;
 }
 
-static void
-free_output_array (MetaOutput *old_outputs,
-                   int         n_old_outputs)
+void
+meta_monitor_manager_free_output_array (MetaOutput *old_outputs,
+                                        int         n_old_outputs)
 {
   int i;
 
@@ -583,7 +580,7 @@ meta_monitor_manager_finalize (GObject *object)
 {
   MetaMonitorManager *manager = META_MONITOR_MANAGER (object);
 
-  free_output_array (manager->outputs, manager->n_outputs);
+  meta_monitor_manager_free_output_array (manager->outputs, manager->n_outputs);
   g_free (manager->monitor_infos);
   g_free (manager->modes);
   g_free (manager->crtcs);
@@ -1476,8 +1473,8 @@ meta_monitor_manager_get_screen_limits (MetaMonitorManager *manager,
   *height = manager->max_screen_height;
 }
 
-static void
-invalidate_logical_config (MetaMonitorManager *manager)
+void
+meta_monitor_manager_rebuild_derived (MetaMonitorManager *manager)
 {
   MetaMonitorInfo *old_monitor_infos;
 
@@ -1498,51 +1495,11 @@ meta_monitor_manager_handle_xevent (MetaMonitorManager *manager,
                                     XEvent             *event)
 {
   MetaMonitorManagerClass *klass;
-  MetaOutput *old_outputs;
-  MetaCRTC *old_crtcs;
-  MetaMonitorMode *old_modes;
-  int n_old_outputs;
-  gboolean changed;
 
   klass = META_MONITOR_MANAGER_GET_CLASS (manager);
   if (klass->handle_xevent)
-    changed = klass->handle_xevent (manager, event);
+    return klass->handle_xevent (manager, event);
   else
-    changed = FALSE;
-
-  if (!changed)
     return FALSE;
-
-  /* Save the old structures, so they stay valid during the update */
-  old_outputs = manager->outputs;
-  n_old_outputs = manager->n_outputs;
-  old_modes = manager->modes;
-  old_crtcs = manager->crtcs;
-
-  read_current_config (manager);
-
-  /* Check if the current intended configuration has the same outputs
-     as the new real one. If so, this was a result of an ApplyConfiguration
-     call (or a change from ourselves), and we can go straight to rebuild
-     the logical config and tell the outside world.
-
-     Otherwise, this event was caused by hotplug, so give a chance to
-     MetaMonitorConfig.
-  */
-  if (meta_monitor_config_match_current (manager->config, manager))
-    {
-      invalidate_logical_config (manager);
-    }
-  else
-    {
-      if (!meta_monitor_config_apply_stored (manager->config, manager))
-        meta_monitor_config_make_default (manager->config, manager);
-    }
-
-  free_output_array (old_outputs, n_old_outputs);
-  g_free (old_modes);
-  g_free (old_crtcs);
-
-  return TRUE;
 }