diff --git a/app/controllers/places_controller.rb b/app/controllers/places_controller.rb
index 2891a10db26..951995d3b44 100644
--- a/app/controllers/places_controller.rb
+++ b/app/controllers/places_controller.rb
@@ -216,7 +216,10 @@ def update
   
   def destroy
     errors = []
-    errors << "there are people using this place in their projects" if @place.projects.exists?
+    if @place.projects.exists? || 
+        ProjectObservationRule.where(ruler_type: 'Project', operand: @place, operator: "observed_in_place?").exists?
+      errors << "there are people using this place in their projects"
+    end
     errors << "there are people using this place in their guides" if @place.guides.exists?
     if errors.blank?
       @place.destroy
diff --git a/spec/controllers/places_controller_spec.rb b/spec/controllers/places_controller_spec.rb
index 5974df62105..cf69ca4f135 100644
--- a/spec/controllers/places_controller_spec.rb
+++ b/spec/controllers/places_controller_spec.rb
@@ -18,13 +18,26 @@
   describe "destroy" do
     let(:user) { User.make! }
     let(:place) { Place.make!(:user => user) }
-    it "should delete the place" do
+    before do
       sign_in user
+    end
+    it "should delete the place" do
       expect(place).not_to be_blank
       expect {
         delete :destroy, :id => place.id
       }.to change(Place, :count).by(-1)
     end
+    it "should fail if projects are using the place" do
+      p = Project.make!(place: place)
+      delete :destroy, id: place.id
+      expect( Place.find_by_id(place.id) ).not_to be_blank
+    end
+    it "should fail if projects are using the place in rules" do
+      p = Project.make!
+      p.project_observation_rules.create(operand: place, operator: 'observed_in_place?')
+      delete :destroy, id: place.id
+      expect( Place.find_by_id(place.id) ).not_to be_blank
+    end
   end
 
   describe "search" do