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diff --git a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_012_pos.ksh b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_012_pos.ksh
new file mode 100755
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+++ b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_012_pos.ksh
@@ -0,0 +1,83 @@
+#!/bin/ksh -p
+#
+# CDDL HEADER START
+#
+# This file and its contents are supplied under the terms of the
+# Common Development and Distribution License ("CDDL"), version 1.0.
+# You may only use this file in accordance with the terms of version
+# 1.0 of the CDDL.
+#
+# A full copy of the text of the CDDL should have accompanied this
+# source.  A copy of the CDDL is also available via the Internet at
+# http://www.illumos.org/license/CDDL.
+#
+# CDDL HEADER END
+#
+
+#
+# Copyright 2016, OmniTI Computer Consulting, Inc. All rights reserved.
+#
+
+. $STF_SUITE/include/libtest.shlib
+
+#
+# DESCRIPTION:
+#	refquota, like regular quota, is loosely enforced.  A dataset
+#	can exceed its refquota by one transaction.  This loose enforcement
+#	used to cause problems upon receiving a datastream where its
+#	refquota is slightly exceeded.  This test confirms that we can
+#	successfully receive a slightly over refquota stream.
+#
+# STRATEGY:
+#	1. Create a filesystem.
+#	2. Set a refquota.
+#	3. Snapshot the filesystem.
+#	4. Send a replication stream to a new filesystem.
+#	5. On the original filesystem, fill it up to its quota.
+#	6. Snapshot the original filesystem again.
+#	7. Send an incremental stream to the same new filesystem.
+#
+
+verify_runnable "both"
+
+typeset streamfile=$TEST_BASE_DIR/streamfile.$$
+
+function cleanup
+{
+	log_must rm $streamfile
+	log_must zfs destroy -rf $TESTPOOL/$TESTFS1
+	log_must zfs destroy -rf $TESTPOOL/$TESTFS2
+}
+
+log_assert "The allowable slight refquota overage is properly sent-and-" \
+	"received."
+log_onexit cleanup
+
+orig=$TESTPOOL/$TESTFS1
+dest=$TESTPOOL/$TESTFS2
+
+#	1. Create a filesystem.
+log_must zfs create $orig
+origdir=$(get_prop mountpoint $orig)
+
+#	2. Set a refquota.
+log_must zfs set refquota=50M $orig
+
+#	3. Snapshot the filesystem.
+log_must zfs snapshot $orig@1
+
+#	4. Send a replication stream to a new filesystem.
+log_must eval "zfs send -R $orig@1 > $streamfile"
+log_must eval "zfs recv $dest < $streamfile"
+
+#	5. On the original filesystem, fill it up to its quota.
+cat < /dev/urandom > $origdir/fill-it-up
+
+#	6. Snapshot the original filesystem again.
+log_must zfs snapshot $orig@2
+
+#	7. Send an incremental stream to the same new filesystem.
+log_must eval "zfs send -I 1 -R $orig@2 > $streamfile"
+log_must eval "zfs recv $dest < $streamfile"
+
+log_pass "Verified receiving a slightly-over-refquota stream succeeds."