diff --git a/lib/validate_url.rb b/lib/validate_url.rb
index 663fed6..0a319b8 100644
--- a/lib/validate_url.rb
+++ b/lib/validate_url.rb
@@ -22,13 +22,21 @@ def validate_each(record, attribute, value)
         schemes = [*options.fetch(:schemes)].map(&:to_s)
         begin
           uri = Addressable::URI.parse(value)
-          unless uri && uri.host && schemes.include?(uri.scheme) && (!options.fetch(:no_local) || uri.host.include?('.'))
+          unless uri && uri.host && schemes.include?(uri.scheme) && (!options.fetch(:no_local) || not_localhost?(uri.host))
             record.errors.add(attribute, options.fetch(:message), :value => value)
           end
         rescue Addressable::URI::InvalidURIError
           record.errors.add(attribute, options.fetch(:message), :value => value)
         end
       end
+
+      private
+
+      def not_localhost?(host)
+        return false if host == '127.0.0.1'
+
+        host.include?('.')
+      end
     end
 
     module ClassMethods
diff --git a/spec/validate_url_spec.rb b/spec/validate_url_spec.rb
index 20c47de..441f2b3 100644
--- a/spec/validate_url_spec.rb
+++ b/spec/validate_url_spec.rb
@@ -158,6 +158,11 @@
       @user.should_not be_valid
     end
 
+    it "should not allow a local ip" do
+      @user.homepage = "http://127.0.0.1"
+      @user.should_not be_valid
+    end
+
     it "should not allow weird urls that get interpreted as local hostnames" do
       @user.homepage = "http://http://example.com"
       @user.should_not be_valid