diff --git a/src/params/paramTypes.ts b/src/params/paramTypes.ts
index dec1e26c9..c65e7e4f4 100644
--- a/src/params/paramTypes.ts
+++ b/src/params/paramTypes.ts
@@ -23,7 +23,7 @@ export class ParamTypes {
       decode: valFromString,
       is: is(String),
       pattern: /.*/,
-      equals: val(true)
+      equals: (a, b) => a == b // allow coersion for null/undefined/""
     },
     "string": {
       encode: valToString,
diff --git a/src/state/stateRegistry.ts b/src/state/stateRegistry.ts
index c28a615b8..06daf8512 100644
--- a/src/state/stateRegistry.ts
+++ b/src/state/stateRegistry.ts
@@ -27,7 +27,7 @@ export class StateRegistry {
       url: '^',
       views: null,
       params: {
-        '#': { value: null, type: 'hash' }
+        '#': { value: null, type: 'hash', dynamic: true }
       },
       abstract: true
     };
diff --git a/test/ng1/stateSpec.js b/test/ng1/stateSpec.js
index 305842faa..8cbd87aa5 100644
--- a/test/ng1/stateSpec.js
+++ b/test/ng1/stateSpec.js
@@ -663,6 +663,21 @@ describe('state', function () {
       expect($location.hash()).toBe('frag');
     }));
 
+    it('runs a transition when the location #fragment is updated', inject(function ($state, $q, $location, $transitions) {
+      var transitionCount = 0;
+      $transitions.onSuccess({}, function() { transitionCount++; });
+
+      $state.transitionTo('home.item', {id: 'world', '#': 'frag'});
+      $q.flush();
+      expect($location.hash()).toBe('frag');
+      expect(transitionCount).toBe(1);
+
+      $state.transitionTo('home.item', {id: 'world', '#': 'blarg'});
+      $q.flush();
+      expect($location.hash()).toBe('blarg');
+      expect(transitionCount).toBe(2);
+    }));
+
     it('injects $transition$ into resolves', inject(function ($state, $q) {
       $state.transitionTo('home'); $q.flush();
       $state.transitionTo('about'); $q.flush();