diff -r 08633bf16195 src/rev.cpp
--- a/src/rev.cpp	Sun Mar 01 00:30:53 2015 +0300
+++ b/src/rev.cpp	Thu Mar 05 03:56:56 2015 +0300
@@ -1,4 +1,4 @@
-/* $Id: rev.cpp.in 26440 2014-04-01 18:33:16Z frosch $ */
+/* $Id: rev.cpp.in 26482 2014-04-23 20:13:33Z rubidium $ */
 
 /*
  * This file is part of OpenTTD.
@@ -13,6 +13,8 @@
 #include "core/bitmath_func.hpp"
 #include "rev.h"
 
+#include "safeguards.h"
+
 /**
  * Is this version of OpenTTD a release version?
  * @return True if it is a release version.
@@ -37,7 +39,7 @@
  * norev000 is for non-releases that are made on systems without
  * subversion or sources that are not a checkout of subversion.
  */
-const char _openttd_revision[] = "1.4.0";
+const char _openttd_revision[] = "h318731efM-openttd";
 
 /**
  * The text version of OpenTTD's build date.
@@ -55,7 +57,7 @@
  * (compiling from sources without any version control software)
  * and 2 is for modified revision.
  */
-const byte _openttd_revision_modified = 0;
+const byte _openttd_revision_modified = 2;
 
 /**
  * The NewGRF revision of OTTD:
@@ -70,11 +72,11 @@
  * final release will always have a lower version number than the released
  * version, thus making comparisons on specific revisions easy.
  */
-const uint32 _openttd_newgrf_version = 1 << 28 | 4 << 24 | 0 << 20 | 1 << 19 | (26440 & ((1 << 19) - 1));
+const uint32 _openttd_newgrf_version = 1 << 28 | 5 << 24 | 0 << 20 | 0 << 19 | (0 & ((1 << 19) - 1));
 
 #ifdef __MORPHOS__
 /**
  * Variable used by MorphOS to show the version.
  */
-extern const char morphos_versions_tag[] = "$VER: OpenTTD 1.4.0 (02.04.14) OpenTTD Team [MorphOS, PowerPC]";
+extern const char morphos_versions_tag[] = "$VER: OpenTTD h318731efM-openttd (05.03.15) OpenTTD Team [MorphOS, PowerPC]";
 #endif
diff -r 08633bf16195 src/town_cmd.cpp
--- a/src/town_cmd.cpp	Sun Mar 01 00:30:53 2015 +0300
+++ b/src/town_cmd.cpp	Thu Mar 05 03:56:56 2015 +0300
@@ -1297,6 +1297,47 @@
 }
 
 /**
+ * Checks whether it makes sense to go in particular direction for town expansion.
+ * Does a simple test for most obvious and common things only.
+ * @param  tile search is currently at
+ * @param  dir  direction in which it indends to go
+ * @return true if is worth going in that direction
+ */
+static bool CanGrowTownInDirection(TileIndex tile, DiagDirection dir) {
+	TileIndex target_tile = tile + TileOffsByDiagDir(dir);
+	if (HasTileWaterGround(target_tile)) return false;
+	if (!IsValidTile(target_tile)) return false;
+	RoadBits target_rb = GetTownRoadBits(target_tile);
+
+	if (_settings_game.economy.allow_town_roads) {
+		switch (GetTileType(target_tile)) {
+			case MP_ROAD: {
+				if (target_rb == ROAD_NONE) {
+					/* can't build extra roads here (depot, standard station, etc) */
+					return false;
+				}
+				break;
+			}
+			case MP_HOUSE:
+			case MP_STATION:
+			case MP_INDUSTRY:
+			case MP_OBJECT:
+				/* checked for void and water earlier */
+				return false;
+
+			default:;
+		}
+	} else {
+		/* we can't build roads so bailing out if there is no way
+		 * back or it ends with half-road (i.e. back is the only way) */
+		RoadBits back_rb = DiagDirToRoadBits(ReverseDiagDir(dir));
+		if (!(target_rb & back_rb) || !(target_rb & ~back_rb))
+			return false;
+	}
+	return true;
+}
+
+/**
  * Returns "growth" if a house was built, or no if the build failed.
  * @param t town to inquiry
  * @param tile to inquiry
@@ -1346,9 +1387,21 @@
 			/* Only build in the direction away from the tunnel or bridge. */
 			target_dir = ReverseDiagDir(GetTunnelBridgeDirection(tile));
 		} else {
-			/* Select a random bit from the blockmask, walk a step
-			 * and continue the search from there. */
-			do target_dir = RandomDiagDir(); while (!(cur_rb & DiagDirToRoadBits(target_dir)));
+			/* Select a random bit from the blockmask, and check whether
+			 * we can grow in that direction. */
+			RoadBits dir_rb = ROAD_NONE;
+			do {
+				// excluding direction that failed check
+				cur_rb &= ~dir_rb;
+				if (cur_rb == ROAD_NONE) {
+					return GROWTH_SEARCH_STOPPED;
+				}
+				// selecting random direction
+				do {
+					target_dir = RandomDiagDir();
+					dir_rb = DiagDirToRoadBits(target_dir);
+				} while (!(cur_rb & dir_rb));
+			} while (!CanGrowTownInDirection(tile, target_dir));
 		}
 		tile = TileAddByDiagDir(tile, target_dir);