diff --git a/src/scenedit/scen.actions.cpp b/src/scenedit/scen.actions.cpp
index 291730771..1020f8c5f 100644
--- a/src/scenedit/scen.actions.cpp
+++ b/src/scenedit/scen.actions.cpp
@@ -903,6 +903,8 @@ static bool handle_terrain_action(location the_point, bool ctrl_hit) {
 					change_made = true;
 				}
 				else if(overall_mode == MODE_SET_TOWN_RECT) {
+					undo_list.add(action_ptr(new aEditTownBounds(false, town->in_town_rect, working_rect)));
+					update_edit_menu();
 					town->in_town_rect = working_rect;
 					change_made = true;
 				}
@@ -924,6 +926,8 @@ static bool handle_terrain_action(location the_point, bool ctrl_hit) {
 					change_made = true;
 				}
 				else if(overall_mode == MODE_STORAGE_RECT) {
+					undo_list.add(action_ptr(new aEditTownBounds(true, scenario.store_item_rects[cur_town], working_rect)));
+					update_edit_menu();
 					scenario.store_item_rects[cur_town] = working_rect;
 					change_made = true;
 				}
diff --git a/src/scenedit/scen.undo.cpp b/src/scenedit/scen.undo.cpp
index d67348947..dc8f1e1c0 100644
--- a/src/scenedit/scen.undo.cpp
+++ b/src/scenedit/scen.undo.cpp
@@ -1212,4 +1212,23 @@ bool aEditSpecial::redo_me() {
 	}
 	start_special_editing(mode);
 	return true;
+}
+
+bool aEditTownBounds::undo_me() {
+	if(for_saved_items){
+		if(old_rect.empty()) scenario.store_item_rects.erase(area.town_num);
+		else scenario.store_item_rects[area.town_num] = old_rect;
+	}else{
+		scenario.towns[area.town_num]->in_town_rect = old_rect;
+	}
+	return true;
+}
+
+bool aEditTownBounds::redo_me() {
+	if(for_saved_items){
+		scenario.store_item_rects[area.town_num] = new_rect;
+	}else{
+		scenario.towns[area.town_num]->in_town_rect = new_rect;
+	}
+	return true;
 }
\ No newline at end of file
diff --git a/src/scenedit/scen.undo.hpp b/src/scenedit/scen.undo.hpp
index e05ea167c..082259495 100644
--- a/src/scenedit/scen.undo.hpp
+++ b/src/scenedit/scen.undo.hpp
@@ -813,4 +813,20 @@ public:
 		cAction("Clear Special Node"), mode(mode), which(which), old_spec(old_spec), new_spec(cSpecial()), which_town(cur_town), which_out(cur_out) {}
 };
 
+class aEditTownBounds : public cTerrainAction {
+	rectangle old_rect;
+	rectangle new_rect;
+	bool for_saved_items;
+	bool undo_me() override;
+	bool redo_me() override;
+public:
+	aEditTownBounds(bool saved_items, rectangle old_rect, rectangle new_rect) :
+		cTerrainAction((saved_items ?
+							(old_rect.empty() ?
+								"Create Saved Item Area"
+								: "Edit Saved Item Area")
+							:"Edit Town Boundaries"), new_rect.topLeft()),
+		for_saved_items(saved_items), old_rect(old_rect), new_rect(new_rect) {}
+};
+
 #endif
\ No newline at end of file