diff --git a/src/backend/distributed/Makefile b/src/backend/distributed/Makefile
index 883c9284d..44f052ba2 100644
--- a/src/backend/distributed/Makefile
+++ b/src/backend/distributed/Makefile
@@ -11,7 +11,7 @@ EXTVERSIONS = 5.0 5.0-1 5.0-2  \
 	6.0-1 6.0-2 6.0-3 6.0-4 6.0-5 6.0-6 6.0-7 6.0-8 6.0-9 6.0-10 6.0-11 6.0-12 6.0-13 6.0-14 6.0-15 6.0-16 6.0-17 6.0-18 \
 	6.1-1 6.1-2 6.1-3 6.1-4 6.1-5 6.1-6 6.1-7 6.1-8 6.1-9 6.1-10 6.1-11 6.1-12 6.1-13 6.1-14 6.1-15 6.1-16 6.1-17 \
 	6.2-1 6.2-2 6.2-3 6.2-4 \
-	7.0-1 7.0-2 7.0-3
+	7.0-1 7.0-2 7.0-3 7.0-4
 
 # All citus--*.sql files in the source directory
 DATA = $(patsubst $(citus_abs_srcdir)/%.sql,%.sql,$(wildcard $(citus_abs_srcdir)/$(EXTENSION)--*--*.sql))
@@ -145,6 +145,8 @@ $(EXTENSION)--7.0-2.sql: $(EXTENSION)--7.0-1.sql $(EXTENSION)--7.0-1--7.0-2.sql
 	cat $^ > $@
 $(EXTENSION)--7.0-3.sql: $(EXTENSION)--7.0-2.sql $(EXTENSION)--7.0-2--7.0-3.sql
 	cat $^ > $@
+$(EXTENSION)--7.0-4.sql: $(EXTENSION)--7.0-3.sql $(EXTENSION)--7.0-3--7.0-4.sql
+	cat $^ > $@
 
 NO_PGXS = 1
 
diff --git a/src/backend/distributed/citus--7.0-3--7.0-4.sql b/src/backend/distributed/citus--7.0-3--7.0-4.sql
new file mode 100644
index 000000000..a7a00ad09
--- /dev/null
+++ b/src/backend/distributed/citus--7.0-3--7.0-4.sql
@@ -0,0 +1,25 @@
+/* citus--7.0-3--7.0-4.sql */
+
+SET search_path = 'pg_catalog';
+
+CREATE FUNCTION assign_distributed_transaction_id(initiator_node_identifier int4, transaction_number int8, transaction_stamp timestamptz)
+     RETURNS void
+     LANGUAGE C STRICT
+     AS 'MODULE_PATHNAME',$$assign_distributed_transaction_id$$;
+ COMMENT ON FUNCTION assign_distributed_transaction_id(initiator_node_identifier int4, transaction_number int8, transaction_stamp timestamptz)
+     IS 'Only intended for internal use, users should not call this. The function sets the distributed transaction id';
+
+CREATE OR REPLACE FUNCTION get_current_transaction_id(OUT database_id oid, OUT process_id int, OUT initiator_node_identifier int4, OUT transaction_number int8, OUT transaction_stamp timestamptz)
+     RETURNS RECORD
+     LANGUAGE C STRICT
+     AS 'MODULE_PATHNAME',$$get_current_transaction_id$$;
+ COMMENT ON FUNCTION get_current_transaction_id(OUT database_id oid, OUT process_id int, OUT initiator_node_identifier int4, OUT transaction_number int8, OUT transaction_stamp timestamptz)
+     IS 'returns the current backend data including distributed transaction id';
+
+CREATE OR REPLACE FUNCTION get_all_active_transactions(OUT database_id oid, OUT process_id int, OUT initiator_node_identifier int4, OUT transaction_number int8, OUT transaction_stamp timestamptz)
+	RETURNS SETOF RECORD
+	LANGUAGE C STRICT
+	AS 'MODULE_PATHNAME', $$get_all_active_transactions$$;
+ COMMENT ON FUNCTION get_all_active_transactions(OUT database_id oid, OUT process_id int, OUT initiator_node_identifier int4, OUT transaction_number int8, OUT transaction_stamp timestamptz)
+     IS 'returns distributed transaction ids of active distributed transactions';
+RESET search_path;
diff --git a/src/backend/distributed/citus.control b/src/backend/distributed/citus.control
index ba31416e5..ac5f945a7 100644
--- a/src/backend/distributed/citus.control
+++ b/src/backend/distributed/citus.control
@@ -1,6 +1,6 @@
 # Citus extension
 comment = 'Citus distributed database'
-default_version = '7.0-3'
+default_version = '7.0-4'
 module_pathname = '$libdir/citus'
 relocatable = false
 schema = pg_catalog
diff --git a/src/backend/distributed/connection/remote_commands.c b/src/backend/distributed/connection/remote_commands.c
index 1f7f833d9..76efecc3d 100644
--- a/src/backend/distributed/connection/remote_commands.c
+++ b/src/backend/distributed/connection/remote_commands.c
@@ -337,10 +337,11 @@ ExecuteOptionalRemoteCommand(MultiConnection *connection, const char *command,
 
 
 /*
- * SendRemoteCommand is a PQsendQuery wrapper that logs remote commands, and
- * accepts a MultiConnection instead of a plain PGconn.  It makes sure it can
+ * SendRemoteCommandParams is a PQsendQueryParams wrapper that logs remote commands,
+ * and accepts a MultiConnection instead of a plain PGconn. It makes sure it can
  * send commands asynchronously without blocking (at the potential expense of
- * an additional memory allocation).
+ * an additional memory allocation). The command string can only include a single
+ * command since PQsendQueryParams() supports only that.
  */
 int
 SendRemoteCommandParams(MultiConnection *connection, const char *command,
@@ -372,14 +373,33 @@ SendRemoteCommandParams(MultiConnection *connection, const char *command,
 
 /*
  * SendRemoteCommand is a PQsendQuery wrapper that logs remote commands, and
- * accepts a MultiConnection instead of a plain PGconn.  It makes sure it can
+ * accepts a MultiConnection instead of a plain PGconn. It makes sure it can
  * send commands asynchronously without blocking (at the potential expense of
- * an additional memory allocation).
+ * an additional memory allocation). The command string can include multiple
+ * commands since PQsendQuery() supports that.
  */
 int
 SendRemoteCommand(MultiConnection *connection, const char *command)
 {
-	return SendRemoteCommandParams(connection, command, 0, NULL, NULL);
+	PGconn *pgConn = connection->pgConn;
+	int rc = 0;
+
+	LogRemoteCommand(connection, command);
+
+	/*
+	 * Don't try to send command if connection is entirely gone
+	 * (PQisnonblocking() would crash).
+	 */
+	if (!pgConn)
+	{
+		return 0;
+	}
+
+	Assert(PQisnonblocking(pgConn));
+
+	rc = PQsendQuery(pgConn, command);
+
+	return rc;
 }
 
 
diff --git a/src/backend/distributed/shared_library_init.c b/src/backend/distributed/shared_library_init.c
index c4931d0cb..113f6e416 100644
--- a/src/backend/distributed/shared_library_init.c
+++ b/src/backend/distributed/shared_library_init.c
@@ -19,6 +19,7 @@
 #include "citus_version.h"
 #include "commands/explain.h"
 #include "executor/executor.h"
+#include "distributed/backend_data.h"
 #include "distributed/citus_nodefuncs.h"
 #include "distributed/connection_management.h"
 #include "distributed/connection_management.h"
@@ -173,6 +174,7 @@ _PG_init(void)
 
 	/* initialize coordinated transaction management */
 	InitializeTransactionManagement();
+	InitializeBackendManagement();
 	InitializeConnectionManagement();
 	InitPlacementConnectionManagement();
 
@@ -197,6 +199,7 @@ void
 StartupCitusBackend(void)
 {
 	InitializeMaintenanceDaemonBackend();
+	InitializeBackendData();
 }
 
 
diff --git a/src/backend/distributed/transaction/backend_data.c b/src/backend/distributed/transaction/backend_data.c
new file mode 100644
index 000000000..8732b1a4f
--- /dev/null
+++ b/src/backend/distributed/transaction/backend_data.c
@@ -0,0 +1,489 @@
+/*-------------------------------------------------------------------------
+ *
+ * backend_data.c
+ *
+ *  Infrastructure for managing per backend data that can efficiently
+ *  accessed by all sessions.
+ *
+ * Copyright (c) 2017, Citus Data, Inc.
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#include "postgres.h"
+#include "miscadmin.h"
+
+#include "funcapi.h"
+#include "access/htup_details.h"
+#include "catalog/pg_type.h"
+#include "datatype/timestamp.h"
+#include "distributed/backend_data.h"
+#include "distributed/listutils.h"
+#include "distributed/metadata_cache.h"
+#include "distributed/transaction_identifier.h"
+#include "nodes/execnodes.h"
+#include "storage/ipc.h"
+#include "storage/lwlock.h"
+#include "storage/proc.h"
+#include "storage/spin.h"
+#include "storage/s_lock.h"
+#include "utils/timestamp.h"
+
+
+/*
+ * Each backend's data reside in the shared memory
+ * on the BackendManagementShmemData.
+ */
+typedef struct BackendManagementShmemData
+{
+	int trancheId;
+#if (PG_VERSION_NUM >= 100000)
+	NamedLWLockTranche namedLockTranche;
+#else
+	LWLockTranche lockTranche;
+#endif
+	LWLock lock;
+
+	/*
+	 * We prefer to use an atomic integer over sequences for two
+	 * reasons (i) orders of magnitude performance difference
+	 * (ii) allowing read-only replicas to be able to generate ids
+	 */
+	pg_atomic_uint64 nextTransactionNumber;
+
+	BackendData backends[FLEXIBLE_ARRAY_MEMBER];
+} BackendManagementShmemData;
+
+
+static shmem_startup_hook_type prev_shmem_startup_hook = NULL;
+static BackendManagementShmemData *backendManagementShmemData = NULL;
+static BackendData *MyBackendData = NULL;
+
+
+static void BackendManagementShmemInit(void);
+static size_t BackendManagementShmemSize(void);
+
+
+PG_FUNCTION_INFO_V1(assign_distributed_transaction_id);
+PG_FUNCTION_INFO_V1(get_current_transaction_id);
+PG_FUNCTION_INFO_V1(get_all_active_transactions);
+
+
+/*
+ * assign_distributed_transaction_id updates the shared memory allocated for this backend
+ * and sets initiatorNodeIdentifier, transactionNumber, timestamp fields with the given
+ * inputs. Also, the function sets the database id and process id via the information that
+ * Postgres provides.
+ *
+ * This function is only intended for internal use for managing distributed transactions.
+ * Users should not use this function for any purpose.
+ */
+Datum
+assign_distributed_transaction_id(PG_FUNCTION_ARGS)
+{
+	CheckCitusVersion(ERROR);
+
+	/* MyBackendData should always be avaliable, just out of paranoia */
+	if (!MyBackendData)
+	{
+		ereport(ERROR, (errmsg("backend is not ready for distributed transactions")));
+	}
+
+	SpinLockAcquire(&MyBackendData->mutex);
+
+	/* if an id is already assigned, release the lock and error */
+	if (MyBackendData->transactionId.initiatorNodeIdentifier != 0)
+	{
+		SpinLockRelease(&MyBackendData->mutex);
+
+		ereport(ERROR, (errmsg("the backend has already been assigned a "
+							   "transaction id")));
+	}
+
+	MyBackendData->databaseId = MyDatabaseId;
+
+	MyBackendData->transactionId.initiatorNodeIdentifier = PG_GETARG_INT32(0);
+	MyBackendData->transactionId.transactionNumber = PG_GETARG_INT64(1);
+	MyBackendData->transactionId.timestamp = PG_GETARG_TIMESTAMPTZ(2);
+
+	SpinLockRelease(&MyBackendData->mutex);
+
+	PG_RETURN_VOID();
+}
+
+
+/*
+ * get_current_transaction_id returns a tuple with (databaseId, processId,
+ * initiatorNodeIdentifier, transactionNumber, timestamp) that exists in the
+ * shared memory associated with this backend. Note that if the backend
+ * is not in a transaction, the function returns uninitialized data where
+ * transactionNumber equals to 0.
+ */
+Datum
+get_current_transaction_id(PG_FUNCTION_ARGS)
+{
+	TupleDesc tupleDescriptor = NULL;
+	HeapTuple heapTuple = NULL;
+
+	const int attributeCount = 5;
+	Datum values[attributeCount];
+	bool isNulls[attributeCount];
+
+	DistributedTransactionId *distributedTransctionId = NULL;
+
+	CheckCitusVersion(ERROR);
+
+	/* build a tuple descriptor for our result type */
+	if (get_call_result_type(fcinfo, NULL, &tupleDescriptor) != TYPEFUNC_COMPOSITE)
+	{
+		elog(ERROR, "return type must be a row type");
+	}
+
+	/* MyBackendData should always be avaliable, just out of paranoia */
+	if (!MyBackendData)
+	{
+		ereport(ERROR, (errmsg("backend is not ready for distributed transactions")));
+	}
+
+	distributedTransctionId = GetCurrentDistributedTransctionId();
+
+	memset(values, 0, sizeof(values));
+	memset(isNulls, false, sizeof(isNulls));
+
+	/* first two fields do not change for this backend, so get directly */
+	values[0] = ObjectIdGetDatum(MyDatabaseId);
+	values[1] = Int32GetDatum(MyProcPid);
+
+	values[2] = Int32GetDatum(distributedTransctionId->initiatorNodeIdentifier);
+	values[3] = UInt64GetDatum(distributedTransctionId->transactionNumber);
+
+	/* provide a better output */
+	if (distributedTransctionId->initiatorNodeIdentifier != 0)
+	{
+		values[4] = TimestampTzGetDatum(distributedTransctionId->timestamp);
+	}
+	else
+	{
+		isNulls[4] = true;
+	}
+
+	heapTuple = heap_form_tuple(tupleDescriptor, values, isNulls);
+
+	PG_RETURN_DATUM(HeapTupleGetDatum(heapTuple));
+}
+
+
+/*
+ * get_all_active_transactions returns all the avaliable information about all
+ * the active backends.
+ */
+Datum
+get_all_active_transactions(PG_FUNCTION_ARGS)
+{
+	ReturnSetInfo *returnSetInfo = (ReturnSetInfo *) fcinfo->resultinfo;
+	TupleDesc tupleDescriptor = NULL;
+	Tuplestorestate *tupleStore = NULL;
+	MemoryContext perQueryContext = NULL;
+	MemoryContext oldContext = NULL;
+
+	int backendIndex = 0;
+
+	const int attributeCount = 5;
+	Datum values[attributeCount];
+	bool isNulls[attributeCount];
+
+	CheckCitusVersion(ERROR);
+
+	/* check to see if caller supports us returning a tuplestore */
+	if (returnSetInfo == NULL || !IsA(returnSetInfo, ReturnSetInfo))
+	{
+		ereport(ERROR,
+				(errcode(ERRCODE_FEATURE_NOT_SUPPORTED),
+				 errmsg("set-valued function called in context " \
+						"that cannot accept a set")));
+	}
+
+	if (!(returnSetInfo->allowedModes & SFRM_Materialize))
+	{
+		ereport(ERROR,
+				(errcode(ERRCODE_FEATURE_NOT_SUPPORTED),
+				 errmsg("materialize mode required, but it is not " \
+						"allowed in this context")));
+	}
+
+	/* build a tuple descriptor for our result type */
+	if (get_call_result_type(fcinfo, NULL, &tupleDescriptor) != TYPEFUNC_COMPOSITE)
+	{
+		elog(ERROR, "return type must be a row type");
+	}
+
+	perQueryContext = returnSetInfo->econtext->ecxt_per_query_memory;
+
+	oldContext = MemoryContextSwitchTo(perQueryContext);
+
+	tupleStore = tuplestore_begin_heap(true, false, work_mem);
+	returnSetInfo->returnMode = SFRM_Materialize;
+	returnSetInfo->setResult = tupleStore;
+	returnSetInfo->setDesc = tupleDescriptor;
+
+	MemoryContextSwitchTo(oldContext);
+
+	/*
+	 * We don't want to initialize memory while spinlock is held so we
+	 * prefer to do it here. This initialization is done only for the first
+	 * row.
+	 */
+	memset(values, 0, sizeof(values));
+	memset(isNulls, false, sizeof(isNulls));
+
+	/* we're reading all the backend data, take a lock to prevent concurrent additions */
+	LWLockAcquire(AddinShmemInitLock, LW_SHARED);
+
+	for (backendIndex = 0; backendIndex < MaxBackends; ++backendIndex)
+	{
+		BackendData *currentBackend =
+			&backendManagementShmemData->backends[backendIndex];
+
+		SpinLockAcquire(&currentBackend->mutex);
+
+		/* we're only interested in active backends */
+		if (currentBackend->transactionId.transactionNumber == 0)
+		{
+			SpinLockRelease(&currentBackend->mutex);
+			continue;
+		}
+
+		values[0] = ObjectIdGetDatum(currentBackend->databaseId);
+		values[1] = Int32GetDatum(ProcGlobal->allProcs[backendIndex].pid);
+		values[2] = Int32GetDatum(currentBackend->transactionId.initiatorNodeIdentifier);
+		values[3] = UInt64GetDatum(currentBackend->transactionId.transactionNumber);
+		values[4] = TimestampTzGetDatum(currentBackend->transactionId.timestamp);
+
+		SpinLockRelease(&currentBackend->mutex);
+
+		tuplestore_putvalues(tupleStore, tupleDescriptor, values, isNulls);
+
+		/*
+		 * We don't want to initialize memory while spinlock is held so we
+		 * prefer to do it here. This initialization is done for the rows
+		 * starting from the second one.
+		 */
+		memset(values, 0, sizeof(values));
+		memset(isNulls, false, sizeof(isNulls));
+	}
+
+	LWLockRelease(AddinShmemInitLock);
+
+	/* clean up and return the tuplestore */
+	tuplestore_donestoring(tupleStore);
+
+	PG_RETURN_VOID();
+}
+
+
+/*
+ * InitializeBackendManagement requests the necessary shared memory
+ * from Postgres and sets up the shared memory startup hook.
+ */
+void
+InitializeBackendManagement(void)
+{
+	/* allocate shared memory */
+	RequestAddinShmemSpace(BackendManagementShmemSize());
+
+	prev_shmem_startup_hook = shmem_startup_hook;
+	shmem_startup_hook = BackendManagementShmemInit;
+}
+
+
+/*
+ * BackendManagementShmemInit is the callback that is to be called on shared
+ * memory startup hook. The function sets up the necessary shared memory
+ * segment for the backend manager.
+ */
+static void
+BackendManagementShmemInit(void)
+{
+	bool alreadyInitialized = false;
+
+	/* we may update the shmem, acquire lock exclusively */
+	LWLockAcquire(AddinShmemInitLock, LW_EXCLUSIVE);
+
+	backendManagementShmemData =
+		(BackendManagementShmemData *) ShmemInitStruct(
+			"Backend Management Shmem",
+			BackendManagementShmemSize(),
+			&alreadyInitialized);
+
+	if (!alreadyInitialized)
+	{
+		int backendIndex = 0;
+		char *trancheName = "Backend Management Tranche";
+
+#if (PG_VERSION_NUM >= 100000)
+		NamedLWLockTranche *namedLockTranche =
+			&backendManagementShmemData->namedLockTranche;
+
+#else
+		LWLockTranche *lockTranche = &backendManagementShmemData->lockTranche;
+#endif
+
+		/* start by zeroing out all the memory */
+		memset(backendManagementShmemData, 0,
+			   BackendManagementShmemSize());
+
+#if (PG_VERSION_NUM >= 100000)
+		namedLockTranche->trancheId = LWLockNewTrancheId();
+
+		LWLockRegisterTranche(namedLockTranche->trancheId, trancheName);
+		LWLockInitialize(&backendManagementShmemData->lock,
+						 namedLockTranche->trancheId);
+#else
+		backendManagementShmemData->trancheId = LWLockNewTrancheId();
+
+		/* we only need a single lock */
+		lockTranche->array_base = &backendManagementShmemData->lock;
+		lockTranche->array_stride = sizeof(LWLock);
+		lockTranche->name = trancheName;
+
+		LWLockRegisterTranche(backendManagementShmemData->trancheId, lockTranche);
+		LWLockInitialize(&backendManagementShmemData->lock,
+						 backendManagementShmemData->trancheId);
+#endif
+
+		/* start the distributed transaction ids from 1 */
+		pg_atomic_init_u64(&backendManagementShmemData->nextTransactionNumber, 1);
+
+		/*
+		 * We need to init per backend's spinlock before any backend
+		 * starts its execution.
+		 */
+		for (backendIndex = 0; backendIndex < MaxBackends; ++backendIndex)
+		{
+			SpinLockInit(&backendManagementShmemData->backends[backendIndex].mutex);
+		}
+	}
+
+	LWLockRelease(AddinShmemInitLock);
+
+	if (prev_shmem_startup_hook != NULL)
+	{
+		prev_shmem_startup_hook();
+	}
+}
+
+
+/*
+ * BackendManagementShmemSize returns the size that should be allocated
+ * on the shared memory for backend management.
+ */
+static size_t
+BackendManagementShmemSize(void)
+{
+	Size size = 0;
+
+	size = add_size(size, sizeof(BackendManagementShmemData));
+	size = add_size(size, mul_size(sizeof(BackendData), MaxBackends));
+
+	return size;
+}
+
+
+/*
+ *  InitializeBackendData is called per backend and does the
+ *  required initialization.
+ */
+void
+InitializeBackendData(void)
+{
+	MyBackendData = &backendManagementShmemData->backends[MyProc->pgprocno];
+
+	Assert(MyBackendData);
+
+	SpinLockAcquire(&MyBackendData->mutex);
+
+	MyBackendData->databaseId = MyDatabaseId;
+	MyBackendData->transactionId.initiatorNodeIdentifier = 0;
+	MyBackendData->transactionId.transactionNumber = 0;
+	MyBackendData->transactionId.timestamp = 0;
+
+	SpinLockRelease(&MyBackendData->mutex);
+}
+
+
+/*
+ * UnSetDistributedTransactionId simply acquires the mutex and resets the backend's
+ * distributed transaction data in shared memory to the initial values.
+ */
+void
+UnSetDistributedTransactionId(void)
+{
+	/* backend does not exist if the extension is not created */
+	if (MyBackendData)
+	{
+		SpinLockAcquire(&MyBackendData->mutex);
+
+		MyBackendData->databaseId = 0;
+		MyBackendData->transactionId.initiatorNodeIdentifier = 0;
+		MyBackendData->transactionId.transactionNumber = 0;
+		MyBackendData->transactionId.timestamp = 0;
+
+		SpinLockRelease(&MyBackendData->mutex);
+	}
+}
+
+
+/*
+ * GetCurrentDistributedTransctionId reads the backend's distributed transaction id and
+ * returns a copy of it.
+ */
+DistributedTransactionId *
+GetCurrentDistributedTransctionId(void)
+{
+	DistributedTransactionId *currentDistributedTransactionId =
+		(DistributedTransactionId *) palloc(sizeof(DistributedTransactionId));
+
+	SpinLockAcquire(&MyBackendData->mutex);
+
+	currentDistributedTransactionId->initiatorNodeIdentifier =
+		MyBackendData->transactionId.initiatorNodeIdentifier;
+	currentDistributedTransactionId->transactionNumber =
+		MyBackendData->transactionId.transactionNumber;
+	currentDistributedTransactionId->timestamp =
+		MyBackendData->transactionId.timestamp;
+
+	SpinLockRelease(&MyBackendData->mutex);
+
+	return currentDistributedTransactionId;
+}
+
+
+/*
+ * AssignDistributedTransactionId generates a new distributed transaction id and
+ * sets it for the current backend. It also sets the databaseId and
+ * processId fields.
+ *
+ * This function should only be called on BeginCoordinatedTransaction(). Any other
+ * callers is very likely to break the distributed transction management.
+ */
+void
+AssignDistributedTransactionId(void)
+{
+	pg_atomic_uint64 *transactionNumberSequence =
+		&backendManagementShmemData->nextTransactionNumber;
+
+	uint64 nextTransactionNumber = pg_atomic_fetch_add_u64(transactionNumberSequence, 1);
+	int localGroupId = GetLocalGroupId();
+	TimestampTz currentTimestamp = GetCurrentTimestamp();
+
+	SpinLockAcquire(&MyBackendData->mutex);
+
+	MyBackendData->databaseId = MyDatabaseId;
+
+	MyBackendData->transactionId.initiatorNodeIdentifier = localGroupId;
+	MyBackendData->transactionId.transactionNumber =
+		nextTransactionNumber;
+	MyBackendData->transactionId.timestamp = currentTimestamp;
+
+	SpinLockRelease(&MyBackendData->mutex);
+}
diff --git a/src/backend/distributed/transaction/remote_transaction.c b/src/backend/distributed/transaction/remote_transaction.c
index 72c064099..d215948ef 100644
--- a/src/backend/distributed/transaction/remote_transaction.c
+++ b/src/backend/distributed/transaction/remote_transaction.c
@@ -15,6 +15,7 @@
 #include "miscadmin.h"
 
 #include "access/xact.h"
+#include "distributed/backend_data.h"
 #include "distributed/connection_management.h"
 #include "distributed/metadata_cache.h"
 #include "distributed/remote_commands.h"
@@ -32,12 +33,16 @@ static void WarnAboutLeakedPreparedTransaction(MultiConnection *connection, bool
 
 /*
  * StartRemoteTransactionBeging initiates beginning the remote transaction in
- * a non-blocking manner.
+ * a non-blocking manner. The function sends "BEGIN" followed by
+ * assign_distributed_transaction_id() to assign the distributed transaction
+ * id on the remote node.
  */
 void
 StartRemoteTransactionBegin(struct MultiConnection *connection)
 {
 	RemoteTransaction *transaction = &connection->remoteTransaction;
+	StringInfo beginAndSetDistributedTransactionId = makeStringInfo();
+	DistributedTransactionId *distributedTransactionId = NULL;
 
 	Assert(transaction->transactionState == REMOTE_TRANS_INVALID);
 
@@ -51,8 +56,23 @@ StartRemoteTransactionBegin(struct MultiConnection *connection)
 	 * side might have been changed, and that would cause problematic
 	 * behaviour.
 	 */
-	if (!SendRemoteCommand(connection,
-						   "BEGIN TRANSACTION ISOLATION LEVEL READ COMMITTED"))
+	appendStringInfoString(beginAndSetDistributedTransactionId,
+						   "BEGIN TRANSACTION ISOLATION LEVEL READ COMMITTED;");
+
+	/*
+	 * Append BEGIN and assign_distributed_transaction_id() statements into a single command
+	 * and send both in one step. The reason is purely performance, we don't want
+	 * seperate roundtrips for these two statements.
+	 */
+	distributedTransactionId = GetCurrentDistributedTransctionId();
+	appendStringInfo(beginAndSetDistributedTransactionId,
+					 "SELECT assign_distributed_transaction_id(%d, %ld, '%s')",
+					 distributedTransactionId->initiatorNodeIdentifier,
+					 distributedTransactionId->transactionNumber,
+					 timestamptz_to_str(distributedTransactionId->timestamp));
+
+
+	if (!SendRemoteCommand(connection, beginAndSetDistributedTransactionId->data))
 	{
 		ReportConnectionError(connection, WARNING);
 		MarkRemoteTransactionFailed(connection, true);
diff --git a/src/backend/distributed/transaction/transaction_management.c b/src/backend/distributed/transaction/transaction_management.c
index a1212a43a..e3094840d 100644
--- a/src/backend/distributed/transaction/transaction_management.c
+++ b/src/backend/distributed/transaction/transaction_management.c
@@ -19,6 +19,7 @@
 
 #include "access/twophase.h"
 #include "access/xact.h"
+#include "distributed/backend_data.h"
 #include "distributed/connection_management.h"
 #include "distributed/hash_helpers.h"
 #include "distributed/multi_shard_transaction.h"
@@ -73,6 +74,8 @@ BeginCoordinatedTransaction(void)
 	}
 
 	CurrentCoordinatedTransactionState = COORD_TRANS_STARTED;
+
+	AssignDistributedTransactionId();
 }
 
 
@@ -168,6 +171,8 @@ CoordinatedTransactionCallback(XactEvent event, void *arg)
 			XactModificationLevel = XACT_MODIFICATION_NONE;
 			dlist_init(&InProgressTransactions);
 			CoordinatedTransactionUses2PC = false;
+
+			UnSetDistributedTransactionId();
 			break;
 		}
 
@@ -204,13 +209,19 @@ CoordinatedTransactionCallback(XactEvent event, void *arg)
 			dlist_init(&InProgressTransactions);
 			CoordinatedTransactionUses2PC = false;
 			subXactAbortAttempted = false;
+			UnSetDistributedTransactionId();
 			break;
 		}
 
 		case XACT_EVENT_PARALLEL_COMMIT:
 		case XACT_EVENT_PARALLEL_ABORT:
+		{
+			break;
+		}
+
 		case XACT_EVENT_PREPARE:
 		{
+			UnSetDistributedTransactionId();
 			break;
 		}
 
diff --git a/src/include/distributed/backend_data.h b/src/include/distributed/backend_data.h
new file mode 100644
index 000000000..6d0e52adc
--- /dev/null
+++ b/src/include/distributed/backend_data.h
@@ -0,0 +1,39 @@
+/*
+ * backend_data.h
+ *
+ * Data structure definition for managing backend data and related function
+ * declarations.
+ *
+ * Copyright (c) 2017, Citus Data, Inc.
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#ifndef BACKEND_DATA_H
+#define BACKEND_DATA_H
+
+
+#include "datatype/timestamp.h"
+#include "distributed/transaction_identifier.h"
+#include "nodes/pg_list.h"
+#include "storage/s_lock.h"
+
+
+/*
+ * Each backend's active distributed transaction information is tracked via
+ * BackendData in shared memory.
+ */
+typedef struct BackendData
+{
+	Oid databaseId;
+	slock_t mutex;
+	DistributedTransactionId transactionId;
+} BackendData;
+
+
+extern void InitializeBackendManagement(void);
+extern void InitializeBackendData(void);
+extern void UnSetDistributedTransactionId(void);
+extern void AssignDistributedTransactionId(void);
+
+#endif /* BACKEND_DATA_H */
diff --git a/src/include/distributed/transaction_identifier.h b/src/include/distributed/transaction_identifier.h
new file mode 100644
index 000000000..9e1de3f9d
--- /dev/null
+++ b/src/include/distributed/transaction_identifier.h
@@ -0,0 +1,39 @@
+/*
+ * transaction_identifier.h
+ *
+ *    Data structure for distributed transaction id and related function
+ *    declarations.
+ *
+ * Copyright (c) 2017, Citus Data, Inc.
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#ifndef TRANSACTION_IDENTIFIER_H
+#define TRANSACTION_IDENTIFIER_H
+
+
+#include "datatype/timestamp.h"
+
+
+/*
+ * Citus identifies a distributed transaction with a triplet consisting of
+ *
+ *  -  initiatorNodeIdentifier: A unique identifier of the node that initiated
+ *     the distributed transaction
+ *  -  transactionNumber: A locally unique identifier assigned for the distributed
+ *     transaction on the node that initiated the distributed transaction
+ *  -  timestamp: The current timestamp of distributed transaction initiation
+ *
+ */
+typedef struct DistributedTransactionId
+{
+	int initiatorNodeIdentifier;
+	uint64 transactionNumber;
+	TimestampTz timestamp;
+} DistributedTransactionId;
+
+
+extern DistributedTransactionId * GetCurrentDistributedTransctionId(void);
+
+#endif /* TRANSACTION_IDENTIFIER_H */
diff --git a/src/test/regress/expected/isolation_distributed_transaction_id.out b/src/test/regress/expected/isolation_distributed_transaction_id.out
new file mode 100644
index 000000000..25fc9cf88
--- /dev/null
+++ b/src/test/regress/expected/isolation_distributed_transaction_id.out
@@ -0,0 +1,112 @@
+Parsed test spec with 4 sessions
+
+starting permutation: s1-begin s1-assign-transaction-id s4-get-all-transactions s2-begin s2-assign-transaction-id s4-get-all-transactions s3-begin s3-assign-transaction-id s4-get-all-transactions s1-commit s4-get-all-transactions s2-commit s4-get-all-transactions s3-commit s4-get-all-transactions
+step s1-begin: 
+    BEGIN;
+
+step s1-assign-transaction-id: 
+    SELECT assign_distributed_transaction_id(1, 1, '2015-01-01 00:00:00+0');
+
+assign_distributed_transaction_id
+
+               
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+1              1              Wed Dec 31 16:00:00 2014 PST
+step s2-begin: 
+    BEGIN;
+
+step s2-assign-transaction-id: 
+    SELECT assign_distributed_transaction_id(2, 2, '2015-01-02 00:00:00+0');
+
+assign_distributed_transaction_id
+
+               
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+1              1              Wed Dec 31 16:00:00 2014 PST
+2              2              Thu Jan 01 16:00:00 2015 PST
+step s3-begin: 
+    BEGIN;
+
+step s3-assign-transaction-id: 
+    SELECT assign_distributed_transaction_id(3, 3, '2015-01-03 00:00:00+0');
+
+assign_distributed_transaction_id
+
+               
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+1              1              Wed Dec 31 16:00:00 2014 PST
+2              2              Thu Jan 01 16:00:00 2015 PST
+3              3              Fri Jan 02 16:00:00 2015 PST
+step s1-commit: 
+    COMMIT;
+
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+2              2              Thu Jan 01 16:00:00 2015 PST
+3              3              Fri Jan 02 16:00:00 2015 PST
+step s2-commit: 
+    COMMIT;
+
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+3              3              Fri Jan 02 16:00:00 2015 PST
+step s3-commit: 
+    COMMIT;
+
+step s4-get-all-transactions: 
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+
+initiator_node_identifiertransaction_numbertransaction_stamp
+
+
+starting permutation: s1-create-table s1-begin s1-insert s1-get-current-transaction-id s2-get-first-worker-active-transactions
+step s1-create-table: 
+	-- some tests also use distributed table
+	CREATE TABLE distributed_transaction_id_table(some_value int, other_value int);
+	SET citus.shard_count TO 4;
+	SELECT create_distributed_table('distributed_transaction_id_table', 'some_value');
+
+create_distributed_table
+
+               
+step s1-begin: 
+    BEGIN;
+
+step s1-insert: 
+	INSERT INTO distributed_transaction_id_table VALUES (1, 1);
+
+step s1-get-current-transaction-id: 
+	SELECT row(initiator_node_identifier, transaction_number) FROM  get_current_transaction_id();
+
+row            
+
+(0,186)        
+step s2-get-first-worker-active-transactions: 
+		SELECT * FROM run_command_on_workers('SELECT row(initiator_node_identifier, transaction_number)
+												FROM	 
+											  get_all_active_transactions();
+											') 
+		WHERE nodeport = 57637;
+;
+
+nodename       nodeport       success        result         
+
+localhost      57637          t              (0,186)        
diff --git a/src/test/regress/expected/multi_distributed_transaction_id.out b/src/test/regress/expected/multi_distributed_transaction_id.out
new file mode 100644
index 000000000..01328c153
--- /dev/null
+++ b/src/test/regress/expected/multi_distributed_transaction_id.out
@@ -0,0 +1,127 @@
+--
+-- MULTI_DISTRIBUTED_TRANSACTION_ID
+-- 
+-- Unit tests for distributed transaction id functionality
+--
+-- get the current transaction id, which should be uninitialized
+-- note that we skip printing the databaseId, which might change
+-- per run
+-- set timezone to a specific value to prevent
+-- different values on different servers
+SET TIME ZONE 'PST8PDT';
+-- should return uninitialized values if not in a transaction
+SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp 
+---------------------------+--------------------+-------------------
+                         0 |                  0 | 
+(1 row)
+
+BEGIN;
+	
+	-- we should still see the uninitialized values
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+	-- now assign a value
+    SELECT assign_distributed_transaction_id(50, 50, '2016-01-01 00:00:00+0');
+ assign_distributed_transaction_id 
+-----------------------------------
+ 
+(1 row)
+
+    -- see the assigned value
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number |      transaction_stamp       | ?column? 
+---------------------------+--------------------+------------------------------+----------
+                        50 |                 50 | Thu Dec 31 16:00:00 2015 PST | t
+(1 row)
+
+	-- a backend cannot be assigned another tx id if already assigned
+    SELECT assign_distributed_transaction_id(51, 51, '2017-01-01 00:00:00+0');
+ERROR:  the backend has already been assigned a transaction id
+ROLLBACK;
+-- since the transaction finished, we should see the uninitialized values
+SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+-- also see that ROLLBACK (i.e., failures in the transaction) clears the shared memory
+BEGIN;
+	
+	-- we should still see the uninitialized values
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+	-- now assign a value
+    SELECT assign_distributed_transaction_id(52, 52, '2015-01-01 00:00:00+0');
+ assign_distributed_transaction_id 
+-----------------------------------
+ 
+(1 row)
+
+    SELECT 5 / 0;
+ERROR:  division by zero
+COMMIT;
+-- since the transaction errored, we should see the uninitialized values again
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+-- we should also see that a new connection means an uninitialized transaction id
+BEGIN;
+	
+	SELECT assign_distributed_transaction_id(52, 52, '2015-01-01 00:00:00+0');
+ assign_distributed_transaction_id 
+-----------------------------------
+ 
+(1 row)
+
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number |      transaction_stamp       | ?column? 
+---------------------------+--------------------+------------------------------+----------
+                        52 |                 52 | Wed Dec 31 16:00:00 2014 PST | t
+(1 row)
+
+	\c - - - :master_port
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+-- now show that PREPARE resets the distributed transaction id
+BEGIN;
+	SELECT assign_distributed_transaction_id(120, 120, '2015-01-01 00:00:00+0');
+ assign_distributed_transaction_id 
+-----------------------------------
+ 
+(1 row)
+
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number |      transaction_stamp       | ?column? 
+---------------------------+--------------------+------------------------------+----------
+                       120 |                120 | Wed Dec 31 16:00:00 2014 PST | t
+(1 row)
+
+	PREPARE TRANSACTION 'dist_xact_id_test';
+-- after the prepare we should see that transaction id is cleared
+SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+ initiator_node_identifier | transaction_number | transaction_stamp | ?column? 
+---------------------------+--------------------+-------------------+----------
+                         0 |                  0 |                   | t
+(1 row)
+
+-- cleanup the transaction
+ROLLBACK PREPARED 'dist_xact_id_test';
+-- set back to the original zone
+SET TIME ZONE DEFAULT;
diff --git a/src/test/regress/expected/multi_extension.out b/src/test/regress/expected/multi_extension.out
index 02daaf7bc..038c3b992 100644
--- a/src/test/regress/expected/multi_extension.out
+++ b/src/test/regress/expected/multi_extension.out
@@ -113,6 +113,7 @@ ALTER EXTENSION citus UPDATE TO '6.2-4';
 ALTER EXTENSION citus UPDATE TO '7.0-1';
 ALTER EXTENSION citus UPDATE TO '7.0-2';
 ALTER EXTENSION citus UPDATE TO '7.0-3';
+ALTER EXTENSION citus UPDATE TO '7.0-4';
 -- show running version
 SHOW citus.version;
  citus.version 
diff --git a/src/test/regress/isolation_schedule b/src/test/regress/isolation_schedule
index 143dc6e86..24860fe48 100644
--- a/src/test/regress/isolation_schedule
+++ b/src/test/regress/isolation_schedule
@@ -8,5 +8,5 @@ test: isolation_cluster_management
 test: isolation_dml_vs_repair isolation_copy_placement_vs_copy_placement isolation_cancellation
 test: isolation_concurrent_dml isolation_data_migration
 test: isolation_drop_shards isolation_copy_placement_vs_modification
-
 test: isolation_insert_vs_vacuum
+test: isolation_distributed_transaction_id
diff --git a/src/test/regress/multi_schedule b/src/test/regress/multi_schedule
index 935e6cefd..1d7b9b3cf 100644
--- a/src/test/regress/multi_schedule
+++ b/src/test/regress/multi_schedule
@@ -44,7 +44,7 @@ test: multi_insert_select
 # ----------
 # Miscellaneous tests to check our query planning behavior
 # ----------
-test: multi_deparse_shard_query
+test: multi_deparse_shard_query multi_distributed_transaction_id
 test: multi_basic_queries multi_complex_expressions 
 test: multi_explain
 test: multi_subquery multi_subquery_complex_queries multi_subquery_behavioral_analytics
diff --git a/src/test/regress/specs/isolation_distributed_transaction_id.spec b/src/test/regress/specs/isolation_distributed_transaction_id.spec
new file mode 100644
index 000000000..8d04b17f9
--- /dev/null
+++ b/src/test/regress/specs/isolation_distributed_transaction_id.spec
@@ -0,0 +1,107 @@
+# Tests around distributed transaction id generation
+
+setup
+{
+	SET TIME ZONE 'PST8PDT';
+}
+
+teardown
+{
+	SET TIME ZONE DEFAULT;
+}
+
+session "s1"
+
+step "s1-begin"
+{
+    BEGIN;
+}
+
+step "s1-assign-transaction-id"
+{
+    SELECT assign_distributed_transaction_id(1, 1, '2015-01-01 00:00:00+0');
+}
+
+step "s1-commit"
+{
+    COMMIT;
+}
+
+step "s1-create-table"
+{
+	-- some tests also use distributed table
+	CREATE TABLE distributed_transaction_id_table(some_value int, other_value int);
+	SET citus.shard_count TO 4;
+	SELECT create_distributed_table('distributed_transaction_id_table', 'some_value');
+}
+
+step "s1-insert"
+{
+	INSERT INTO distributed_transaction_id_table VALUES (1, 1);
+}
+
+step "s1-get-current-transaction-id"
+{
+	SELECT row(initiator_node_identifier, transaction_number) FROM  get_current_transaction_id();
+}
+
+session "s2"
+
+step "s2-begin"
+{
+    BEGIN;
+}
+
+step "s2-assign-transaction-id"
+{
+    SELECT assign_distributed_transaction_id(2, 2, '2015-01-02 00:00:00+0');
+}
+
+step "s2-commit"
+{
+    COMMIT;
+}
+
+# print only the necessary parts to prevent concurrent runs to print different values
+step "s2-get-first-worker-active-transactions"
+{
+		SELECT * FROM run_command_on_workers('SELECT row(initiator_node_identifier, transaction_number)
+												FROM	 
+											  get_all_active_transactions();
+											') 
+		WHERE nodeport = 57637;
+;
+}
+
+session "s3"
+
+step "s3-begin"
+{
+    BEGIN;
+}
+
+step "s3-assign-transaction-id"
+{
+    SELECT assign_distributed_transaction_id(3, 3, '2015-01-03 00:00:00+0');
+}
+
+step "s3-commit"
+{
+    COMMIT;
+}
+
+session "s4"
+
+step "s4-get-all-transactions"
+{
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_all_active_transactions() ORDER BY 1,2,3;
+}
+
+# show that we could get all distributed transaction ids from seperate sessions
+permutation "s1-begin" "s1-assign-transaction-id" "s4-get-all-transactions" "s2-begin" "s2-assign-transaction-id" "s4-get-all-transactions" "s3-begin" "s3-assign-transaction-id" "s4-get-all-transactions" "s1-commit" "s4-get-all-transactions" "s2-commit" "s4-get-all-transactions" "s3-commit" "s4-get-all-transactions"
+
+
+# now show that distributed transaction id on the coordinator
+# is the same with the one on the worker
+permutation "s1-create-table" "s1-begin" "s1-insert" "s1-get-current-transaction-id" "s2-get-first-worker-active-transactions"
+
diff --git a/src/test/regress/sql/multi_distributed_transaction_id.sql b/src/test/regress/sql/multi_distributed_transaction_id.sql
new file mode 100644
index 000000000..838549cb7
--- /dev/null
+++ b/src/test/regress/sql/multi_distributed_transaction_id.sql
@@ -0,0 +1,81 @@
+--
+-- MULTI_DISTRIBUTED_TRANSACTION_ID
+-- 
+-- Unit tests for distributed transaction id functionality
+--
+
+-- get the current transaction id, which should be uninitialized
+-- note that we skip printing the databaseId, which might change
+-- per run
+
+-- set timezone to a specific value to prevent
+-- different values on different servers
+SET TIME ZONE 'PST8PDT';
+
+-- should return uninitialized values if not in a transaction
+SELECT initiator_node_identifier, transaction_number, transaction_stamp FROM get_current_transaction_id();
+
+BEGIN;
+	
+	-- we should still see the uninitialized values
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+	-- now assign a value
+    SELECT assign_distributed_transaction_id(50, 50, '2016-01-01 00:00:00+0');
+
+    -- see the assigned value
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+	-- a backend cannot be assigned another tx id if already assigned
+    SELECT assign_distributed_transaction_id(51, 51, '2017-01-01 00:00:00+0');
+
+ROLLBACK;
+
+-- since the transaction finished, we should see the uninitialized values
+SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+
+-- also see that ROLLBACK (i.e., failures in the transaction) clears the shared memory
+BEGIN;
+	
+	-- we should still see the uninitialized values
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+	-- now assign a value
+    SELECT assign_distributed_transaction_id(52, 52, '2015-01-01 00:00:00+0');
+
+    SELECT 5 / 0;
+COMMIT;
+
+-- since the transaction errored, we should see the uninitialized values again
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+
+-- we should also see that a new connection means an uninitialized transaction id
+BEGIN;
+	
+	SELECT assign_distributed_transaction_id(52, 52, '2015-01-01 00:00:00+0');
+
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+	\c - - - :master_port
+
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+-- now show that PREPARE resets the distributed transaction id
+
+BEGIN;
+	SELECT assign_distributed_transaction_id(120, 120, '2015-01-01 00:00:00+0');
+
+	SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+	PREPARE TRANSACTION 'dist_xact_id_test';
+
+-- after the prepare we should see that transaction id is cleared
+SELECT initiator_node_identifier, transaction_number, transaction_stamp, (process_id = pg_backend_pid()) FROM get_current_transaction_id();
+
+-- cleanup the transaction
+ROLLBACK PREPARED 'dist_xact_id_test';
+
+-- set back to the original zone
+SET TIME ZONE DEFAULT;
diff --git a/src/test/regress/sql/multi_extension.sql b/src/test/regress/sql/multi_extension.sql
index 58809f36c..5895adb0d 100644
--- a/src/test/regress/sql/multi_extension.sql
+++ b/src/test/regress/sql/multi_extension.sql
@@ -113,6 +113,7 @@ ALTER EXTENSION citus UPDATE TO '6.2-4';
 ALTER EXTENSION citus UPDATE TO '7.0-1';
 ALTER EXTENSION citus UPDATE TO '7.0-2';
 ALTER EXTENSION citus UPDATE TO '7.0-3';
+ALTER EXTENSION citus UPDATE TO '7.0-4';
 
 -- show running version
 SHOW citus.version;