diff --git a/harbour/ChangeLog b/harbour/ChangeLog
index a958d09988..9441e3373f 100644
--- a/harbour/ChangeLog
+++ b/harbour/ChangeLog
@@ -1,3 +1,9 @@
+2000-08-09 15:30 UTC-0400 David G. Holm <dholm@jsd-llc.com>
+
+   * source/pp/ppcore.c
+     ! Reset s_iIncludes to zero in hb_pp_init(), so that the include
+       file nesting limit will not accumulate for multiple compilation.
+
 2000-08-09 14:15 UTC+0100 Ryszard Glab <rglab@imid.med.pl>
 
     *source/compiler/harbour.slx
diff --git a/harbour/source/pp/ppcore.c b/harbour/source/pp/ppcore.c
index c8877682e5..54b27fb18b 100644
--- a/harbour/source/pp/ppcore.c
+++ b/harbour/source/pp/ppcore.c
@@ -337,6 +337,7 @@ void hb_pp_Init( void )
    s_maxCondCompile = 5;
    s_bReplacePat = TRUE;
    s_prevchar = 'A';
+   s_iIncludes = 0;
 
    if( !hb_pp_aCondCompile )
        hb_pp_aCondCompile = ( int * ) hb_xgrab( sizeof( int ) * 5 );