diff --git a/examples/popups.html b/examples/popups.html
index 85b9ecff3c..7ac745cda3 100644
--- a/examples/popups.html
+++ b/examples/popups.html
@@ -42,6 +42,15 @@
         
             map.addPopup(popup);
         }        
+
+        function addAnchor() {
+            popup = new OpenLayers.Popup.Anchored("chicken", 
+                                         new OpenLayers.LonLat(5,40),
+                                         new OpenLayers.Size(200,200),
+                                         "example popup");
+        
+            map.addPopup(popup);
+        }        
         
         function destroy() {
             popup.destroy();
@@ -60,7 +69,7 @@
     <div id="map"></div>
     <div style="background-color:purple" onclick="add()"> click to add popup to map</div>
     <div style="background-color:blue" onclick="changer()"> click to modify popup's attributes</div>
-    <div style="background-color:red" onclick="destroy()"> click to destroy the popup</div>
+    <div style="background-color:red" onclick="addAnchor()"> click to add an anchored popup</div>
     <div style="background-color:green" onclick="remove()"> click to remove the popup from map</div>
   </body>
 </html>
diff --git a/lib/OpenLayers.js b/lib/OpenLayers.js
index 4551e17872..62fd4e0086 100644
--- a/lib/OpenLayers.js
+++ b/lib/OpenLayers.js
@@ -53,6 +53,7 @@ catch(e){
         "OpenLayers/Layer/Text.js",
         "OpenLayers/Layer/WMS.js",
         "OpenLayers/Layer/WFS.js",
+        "OpenLayers/Popup/Anchored.js",
         "OpenLayers/Control.js",
         "OpenLayers/Control/MouseDefaults.js",
         "OpenLayers/Control/KeyboardDefaults.js",
diff --git a/lib/OpenLayers/Popup/Anchored.js b/lib/OpenLayers/Popup/Anchored.js
index aabc2bf825..edd98765d9 100644
--- a/lib/OpenLayers/Popup/Anchored.js
+++ b/lib/OpenLayers/Popup/Anchored.js
@@ -7,6 +7,13 @@ OpenLayers.Popup.Anchored = Class.create();
 OpenLayers.Popup.Anchored.prototype =
    Object.extend( new OpenLayers.Popup(), {
 
+    /** "lr", "ll", "tr", "tl" - relative position of the popup.
+     * @type String */
+    relativePosition: null,
+
+    /** @type OpenLayers.Size */
+    anchorSize: null,
+
     /** 
     * @constructor
     * 
@@ -15,8 +22,14 @@ OpenLayers.Popup.Anchored.prototype =
     * @param {OpenLayers.Size} size
     * @param {String} contentHTML
     */
-    initialize:function(id, lonlat, size, contentHTML) {
-        OpenLayers.Popup.prototype.initialize.apply(this, arguments);
+    initialize:function(id, lonlat, size, contentHTML, anchorSize) {
+
+        var newArguments = new Array(id, lonlat, size, contentHTML);
+        OpenLayers.Popup.prototype.initialize.apply(this, newArguments);
+
+        this.anchorSize = (anchorSize != null) ? anchorSize 
+                                               : new OpenLayers.Size(0,0);
+        
     },
 
     /** 
@@ -25,6 +38,7 @@ OpenLayers.Popup.Anchored.prototype =
         OpenLayers.Popup.prototype.destroy.apply(this, arguments);
     },
 
+
     /** 
     * @param {OpenLayers.Pixel} px
     * 
@@ -32,14 +46,75 @@ OpenLayers.Popup.Anchored.prototype =
     * @type DOMElement
     */
     draw: function(px) {
-        OpenLayers.Popup.prototype.draw.apply(this, arguments);
+        
+        //calculate relative position
+        this.relativePosition = this.calculateRelativePosition(px);
+        
+        return OpenLayers.Popup.prototype.draw.apply(this, arguments);
     },
+    
+    /** 
+    * @param {OpenLayers.Pixel} px
+    * 
+    * @returns The relative position ("br" "tr" "tl "bl") at which the popup
+    *           should be placed
+    * @type String
+    */
+    calculateRelativePosition:function(px) {
+        var lonlat = this.map.getLonLatFromLayerPx(px);        
+        
+        var extent = this.map.getExtent();
+        var quadrant = extent.determineQuadrant(lonlat);
+        
+        return this.oppositeQuadrant(quadrant);
+    }, 
 
     /**
     * @param {OpenLayers.Pixel} px
     */
     moveTo: function(px) {
-        OpenLayers.Popup.prototype.moveTo.apply(this, arguments);
+        
+        var newPx = this.calculateNewPx(px);
+        
+        var newArguments = new Array(newPx);        
+        OpenLayers.Popup.prototype.moveTo.apply(this, newArguments);
+    },
+    
+    /** 
+     * @param {OpenLayers.Pixel} px
+     * 
+     * @returns The the new px position of the popup on the screen
+     *           relative to the passed-in px
+     * @type OpenLayers.Pixel
+     */
+    calculateNewPx:function(px) {
+
+        var newPx = px.copyOf();
+
+        var top = (this.relativePosition.charAt(0) == 't');
+        newPx.y += (top) ? -this.size.h : this.anchorSize.h;
+        
+        var left = (this.relativePosition.charAt(1) == 'l');
+        newPx.x += (left) ? -this.size.w : this.anchorSize.w;
+
+        return newPx;   
+    },
+
+    /**
+     * @param {String} quadrant 
+     * 
+     * @returns The opposing quadrant ("br" "tr" "tl" "bl"). For Example, if 
+     *           you pass in "bl" it returns "tr", if you pass in "br" it 
+     *           returns "tl", etc.
+     * @type String
+     */
+    oppositeQuadrant: function(quadrant) {
+        var opp = "";
+        
+        opp += (quadrant.charAt(0) == 't') ? 'b' : 't';
+        opp += (quadrant.charAt(1) == 'l') ? 'r' : 'l';
+        
+        return opp;
     },
 
     CLASS_NAME: "OpenLayers.Popup.Anchored"