diff --git a/changelog.txt b/changelog.txt
index 6f707cbb..27874980 100644
--- a/changelog.txt
+++ b/changelog.txt
@@ -1,7 +1,7 @@
 OPENSEADRAGON CHANGELOG
 =======================
 
-2.0.0: (in progress)
+1.3.0: (in progress)
 
 * True multi-image mode (#450)
     * BREAKING CHANGE: Passing an array for the tileSources option is no longer enough to trigger sequence mode; you have to set the sequenceMode option to true as well
@@ -41,7 +41,12 @@ OPENSEADRAGON CHANGELOG
 * imageLoaderLimit now works (#544)
 * Turning off scrollToZoom in gestureSettings now allows scroll events to propagate
 
-1.2.0: (in progress)
+1.2.1: (in progress)
+
+* Added preserveOverlays option (#561)
+* Fixed: DZI tilesource was broken (#563)
+
+1.2.0:
 
 * New combined IIIF TileSource for 1.0 through 2.0 (#441)
     * BREAKING CHANGE: Removed IIIF1_1TileSource (now that IIIFTileSource supports all versions)
diff --git a/package.json b/package.json
index 2b102600..97fb8b25 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "OpenSeadragon",
-  "version": "1.1.1",
+  "version": "1.2.0",
   "description": "Provides a smooth, zoomable user interface for HTML/Javascript.",
   "devDependencies": {
     "grunt": "^0.4.5",
diff --git a/src/openseadragon.js b/src/openseadragon.js
index 07abcd42..c85c6012 100644
--- a/src/openseadragon.js
+++ b/src/openseadragon.js
@@ -517,6 +517,14 @@
   *     viewport to 'home' position.  If preserveViewport is set to true, then the viewport
   *     position is preserved when navigating between images in the sequence.
   *
+  * @property {Boolean} [preserveOverlays=false]
+  *     If sequenceMode is true, then normally navigating to through each image
+  *     resets the overlays.
+  *     If preserveOverlays is set to true, then the overlays
+  *     are preserved when navigating between images in the sequence.
+  *     Note: setting preserveOverlays overrides any overlays specified in the
+  *     "overlays" property.
+  *
   * @property {Boolean} [showReferenceStrip=false]
   *     If sequenceMode is true, then display a scrolling strip of image thumbnails for
   *     navigating through the images.
@@ -952,6 +960,7 @@ window.OpenSeadragon = window.OpenSeadragon || function( options ){
             showSequenceControl:     true,  //SEQUENCE
             sequenceControlAnchor:   null,  //SEQUENCE
             preserveViewport:        false, //SEQUENCE
+            preserveOverlays:        false, //SEQUENCE
             navPrevNextWrap:         false, //SEQUENCE
             showNavigationControl:   true,  //ZOOM/HOME/FULL/ROTATION
             navigationControlAnchor: null,  //ZOOM/HOME/FULL/ROTATION
diff --git a/src/viewer.js b/src/viewer.js
index b3350306..ca8a0780 100644
--- a/src/viewer.js
+++ b/src/viewer.js
@@ -622,8 +622,10 @@ $.extend( $.Viewer.prototype, $.EventSource.prototype, $.ControlDock.prototype,
                     }
 
                     // Global overlays
-                    for ( var i = 0; i < _this.overlays.length; i++ ) {
-                        _this.currentOverlays[ i ] = getOverlayObject( _this, _this.overlays[ i ] );
+                    if( _this.overlays && !_this.preserveOverlays ){
+                        for ( var i = 0; i < _this.overlays.length; i++ ) {
+                            _this.currentOverlays[ i ] = getOverlayObject( _this, _this.overlays[ i ] );
+                        }
                     }
 
                     _this._drawOverlays();
@@ -734,8 +736,11 @@ $.extend( $.Viewer.prototype, $.EventSource.prototype, $.ControlDock.prototype,
             this.navigator.close();
         }
 
-        this.clearOverlays();
-        this.overlaysContainer.innerHTML = "";
+        if( ! this.preserveOverlays)
+        {
+            this.clearOverlays();
+            this.overlaysContainer.innerHTML = "";
+        }
 
         THIS[ this.hash ].animating = false;
         this.world.removeAll();