diff --git a/HISTORY b/HISTORY
index 4003a234..e25b6d98 100644
--- a/HISTORY
+++ b/HISTORY
@@ -4,6 +4,8 @@
         repmgr: poll demoted primary after restart as a standby during a
           switchover operation; GitHub #408 (Ian)
         repmgrd: fix memory leaks in witness code (AndrzejNowicki, Martín)
+        repmgrd: handle failover situation with only two nodes in the primary
+          location, and at least one node in another location; GitHub #407 (Ian)
 
 4.0.4   2018-03-09
         repmgr: add "standby clone --recovery-conf-only" option; GitHub #382 (Ian)
diff --git a/repmgrd-physical.c b/repmgrd-physical.c
index fea2c29c..c3d7656f 100644
--- a/repmgrd-physical.c
+++ b/repmgrd-physical.c
@@ -2569,6 +2569,14 @@ do_election(void)
 			return ELECTION_NOT_CANDIDATE;
 		}
 	}
+	else
+	{
+		/* standby nodes found - check if we're in the primary location befor checking theirs */
+		if (strncmp(upstream_node_info.location, local_node_info.location, MAXLEN) == 0)
+		{
+			primary_location_seen = true;
+		}
+	}
 
 	/* get our lsn */
 	local_node_info.last_wal_receive_lsn = get_last_wal_receive_location(local_conn);