diff --git a/ethchain/state_manager.go b/ethchain/state_manager.go
index b8a893d15..fb5753ab3 100644
--- a/ethchain/state_manager.go
+++ b/ethchain/state_manager.go
@@ -50,6 +50,10 @@ type StateManager struct {
 	// Comparative state it used for comparing and validating end
 	// results
 	compState *State
+	// Transiently state. The trans state isn't ever saved, validated and
+	// it could be used for setting account nonces without effecting
+	// the main states.
+	transState *State
 
 	manifest *Manifest
 }
@@ -65,6 +69,8 @@ func NewStateManager(ethereum EthManager) *StateManager {
 		manifest:         NewManifest(),
 	}
 	sm.procState = ethereum.BlockChain().CurrentBlock.State()
+	sm.transState = sm.procState.Copy()
+
 	return sm
 }
 
@@ -72,22 +78,8 @@ func (sm *StateManager) ProcState() *State {
 	return sm.procState
 }
 
-// Watches any given address and puts it in the address state store
-func (sm *StateManager) WatchAddr(addr []byte) *CachedStateObject {
-	//XXX account := sm.bc.CurrentBlock.state.GetAccount(addr)
-	account := sm.procState.GetAccount(addr)
-
-	return sm.stateObjectCache.Add(addr, account)
-}
-
-func (sm *StateManager) GetAddrState(addr []byte) *CachedStateObject {
-	account := sm.stateObjectCache.Get(addr)
-	if account == nil {
-		a := sm.procState.GetAccount(addr)
-		account = &CachedStateObject{Nonce: a.Nonce, Object: a}
-	}
-
-	return account
+func (sm *StateManager) TransState() *State {
+	return sm.transState
 }
 
 func (sm *StateManager) BlockChain() *BlockChain {
diff --git a/ethchain/transaction_pool.go b/ethchain/transaction_pool.go
index 72836d6cb..56deae0c6 100644
--- a/ethchain/transaction_pool.go
+++ b/ethchain/transaction_pool.go
@@ -148,8 +148,7 @@ func (pool *TxPool) ValidateTransaction(tx *Transaction) error {
 	}
 
 	// Get the sender
-	accountState := pool.Ethereum.StateManager().GetAddrState(tx.Sender())
-	sender := accountState.Object
+	sender := pool.Ethereum.StateManager().procState.GetAccount(tx.Sender())
 
 	totAmount := new(big.Int).Add(tx.Value, new(big.Int).Mul(TxFee, TxFeeRat))
 	// Make sure there's enough in the sender's account. Having insufficient
diff --git a/ethpub/pub.go b/ethpub/pub.go
index 5e7792a9f..f7e641b35 100644
--- a/ethpub/pub.go
+++ b/ethpub/pub.go
@@ -92,7 +92,14 @@ func (lib *PEthereum) createTx(key, recipient, valueStr, gasStr, gasPriceStr, in
 		hash = ethutil.FromHex(recipient)
 	}
 
-	keyPair, err := ethchain.NewKeyPairFromSec([]byte(ethutil.FromHex(key)))
+	var keyPair *ethchain.KeyPair
+	var err error
+	if key[0:2] == "0x" {
+		keyPair, err = ethchain.NewKeyPairFromSec([]byte(ethutil.FromHex(key[0:2])))
+	} else {
+		keyPair, err = ethchain.NewKeyPairFromSec([]byte(ethutil.FromHex(key)))
+	}
+
 	if err != nil {
 		return nil, err
 	}
@@ -132,8 +139,11 @@ func (lib *PEthereum) createTx(key, recipient, valueStr, gasStr, gasPriceStr, in
 		tx = ethchain.NewTransactionMessage(hash, value, gas, gasPrice, ethutil.FromHex(initStr))
 	}
 
-	acc := lib.stateManager.GetAddrState(keyPair.Address())
+	acc := lib.stateManager.TransState().GetStateObject(keyPair.Address())
+	//acc := lib.stateManager.GetAddrState(keyPair.Address())
 	tx.Nonce = acc.Nonce
+	lib.stateManager.TransState().SetStateObject(acc)
+
 	tx.Sign(keyPair.PrivateKey)
 	lib.txPool.QueueTransaction(tx)