diff --git a/packages/bundler/src/BundlerServer.ts b/packages/bundler/src/BundlerServer.ts
index 372f1d84..078b39f3 100644
--- a/packages/bundler/src/BundlerServer.ts
+++ b/packages/bundler/src/BundlerServer.ts
@@ -334,9 +334,13 @@ export class BundlerServer {
       case 'debug_bundler_setConfiguration': {
         const pvgc = await this.debugHandler._setConfiguration(params[0])
         this.methodHandler.preVerificationGasCalculator = pvgc
+        break
       }
+      case 'debug_bundler_setAltMempoolConfig': {
+        await this.debugHandler._setAltMempoolConfig(params[0])
         result = {}
         break
+      }
       default:
         throw new RpcError(`Method ${method} is not supported`, -32601)
     }
diff --git a/packages/bundler/src/Config.ts b/packages/bundler/src/Config.ts
index 8aa14b35..100ead1c 100644
--- a/packages/bundler/src/Config.ts
+++ b/packages/bundler/src/Config.ts
@@ -4,6 +4,7 @@ import fs from 'fs'
 import { BundlerConfig, bundlerConfigDefault, BundlerConfigShape } from './BundlerConfig'
 import { Wallet, Signer } from 'ethers'
 import { JsonRpcProvider } from '@ethersproject/providers'
+import { AltMempoolConfig, validateAltMempoolConfigShape } from '@account-abstraction/validation-manager'
 
 function getCommandLineParams (programOpts: any): Partial<BundlerConfig> {
   const params: any = {}
@@ -60,3 +61,17 @@ export async function resolveConfiguration (programOpts: any): Promise<{ config:
   }
   return { config, provider, wallet }
 }
+
+export async function resolveAltMempoolConfig (programOpts: any): Promise<AltMempoolConfig> {
+  const configFileName: string = programOpts.altMempoolConfig
+  if (!fs.existsSync(configFileName)) {
+    return {}
+  }
+  try {
+    const fileConfig = JSON.parse(fs.readFileSync(configFileName, 'ascii'))
+    validateAltMempoolConfigShape(fileConfig)
+    return fileConfig
+  } catch (e: any) {
+    throw new Error(`Unable to read --altMempoolConfig ${configFileName}: ${e.message as string}`)
+  }
+}
diff --git a/packages/bundler/src/DebugMethodHandler.ts b/packages/bundler/src/DebugMethodHandler.ts
index 605fc0d6..a9c99a84 100644
--- a/packages/bundler/src/DebugMethodHandler.ts
+++ b/packages/bundler/src/DebugMethodHandler.ts
@@ -7,8 +7,9 @@ import { BundlerConfig, DebugBundlerConfigShape } from './BundlerConfig'
 import { EventsManager } from './modules/EventsManager'
 import { ExecutionManager } from './modules/ExecutionManager'
 import { MempoolManager } from './modules/MempoolManager'
-import { ReputationDump, ReputationManager } from './modules/ReputationManager'
+import { ReputationEntry, ReputationManager } from './modules/ReputationManager'
 import { SendBundleReturn } from './modules/BundleManager'
+import { AltMempoolConfig, validateAltMempoolConfigShape } from '@account-abstraction/validation-manager'
 
 export class DebugMethodHandler {
   constructor (
@@ -53,19 +54,19 @@ export class DebugMethodHandler {
   }
 
   async dumpMempool (): Promise<any> {
-    return this.mempoolMgr.dump()
+    return this.mempoolMgr.debugDumpMempool()
   }
 
   clearMempool (): void {
     this.mempoolMgr.clearState()
   }
 
-  setReputation (param: any): ReputationDump {
-    return this.repManager.setReputation(param)
+  setReputation (param: any): ReputationEntry[] {
+    return this.repManager._debugSetReputation(param)
   }
 
-  dumpReputation (): ReputationDump {
-    return this.repManager.dump()
+  dumpReputation (): ReputationEntry[] {
+    return this.repManager._debugDumpReputation()
   }
 
   clearReputation (): void {
@@ -86,4 +87,11 @@ export class DebugMethodHandler {
     ow.object.exactShape(DebugBundlerConfigShape)
     return await this.execManager._setConfiguration(config)
   }
+
+  async _setAltMempoolConfig (altMempoolConfig: AltMempoolConfig): Promise<void> {
+    const configCleanedUp = JSON.parse(JSON.stringify(altMempoolConfig))
+    validateAltMempoolConfigShape(configCleanedUp)
+    await this.mempoolMgr._setAltMempoolConfig(configCleanedUp)
+    await this._setConfiguration({})
+  }
 }
diff --git a/packages/bundler/src/modules/EventsManager.ts b/packages/bundler/src/modules/EventsManager.ts
index 6eacb91a..461f0a26 100644
--- a/packages/bundler/src/modules/EventsManager.ts
+++ b/packages/bundler/src/modules/EventsManager.ts
@@ -86,6 +86,7 @@ export class EventsManager {
 
   handleUserOperationEvent (ev: UserOperationEventEvent): void {
     const hash = ev.args.userOpHash
+    this.mempoolManager.includedUserOp(hash)
     this.mempoolManager.removeUserOp(hash)
     this._includedAddress(ev.args.sender)
     this._includedAddress(ev.args.paymaster)
diff --git a/packages/bundler/src/modules/ExecutionManager.ts b/packages/bundler/src/modules/ExecutionManager.ts
index a10816fc..5b57fe22 100644
--- a/packages/bundler/src/modules/ExecutionManager.ts
+++ b/packages/bundler/src/modules/ExecutionManager.ts
@@ -9,7 +9,7 @@ import { ReputationManager } from './ReputationManager'
 import { IBundleManager } from './IBundleManager'
 import {
   EmptyValidateUserOpResult,
-  IValidationManager, ValidationManager
+  IValidationManager, ValidateUserOpResult, ValidationManager
 } from '@account-abstraction/validation-manager'
 import { DepositManager } from './DepositManager'
 import { BigNumberish, Signer } from 'ethers'
@@ -56,7 +56,7 @@ export class ExecutionManager {
     await this.mutex.runExclusive(async () => {
       debug('sendUserOperation')
       this.validationManager.validateInputParameters(userOp, entryPointInput)
-      let validationResult = EmptyValidateUserOpResult
+      let validationResult: ValidateUserOpResult = EmptyValidateUserOpResult
       if (!skipValidation) {
         validationResult = await this.validationManager.validateUserOp(userOp)
       }
@@ -150,7 +150,8 @@ export class ExecutionManager {
     const { configuration, entryPoint, unsafe } = this.validationManager._getDebugConfiguration()
     const mergedConfiguration = Object.assign({}, configuration, configOverrides)
     const pvgc = new PreVerificationGasCalculator(mergedConfiguration)
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, mergedConfiguration.senderCreator ?? '')
+    const bailOnViolation = this.mempoolManager.hasAltMempools()
+    const erc7562Parser = new ERC7562Parser(bailOnViolation, entryPoint.address, mergedConfiguration.senderCreator ?? '')
     this.validationManager = new ValidationManager(
       entryPoint,
       unsafe,
diff --git a/packages/bundler/src/modules/MempoolEntry.ts b/packages/bundler/src/modules/MempoolEntry.ts
index ea62f96d..97299c14 100644
--- a/packages/bundler/src/modules/MempoolEntry.ts
+++ b/packages/bundler/src/modules/MempoolEntry.ts
@@ -1,5 +1,7 @@
 import { BigNumber, BigNumberish } from 'ethers'
 import { OperationBase, ReferencedCodeHashes, UserOperation } from '@account-abstraction/utils'
+import { ERC7562Violation } from '@account-abstraction/validation-manager/dist/src/ERC7562Violation'
+import { ValidateUserOpResult } from '@account-abstraction/validation-manager'
 
 export class MempoolEntry {
   userOpMaxGas: BigNumber
@@ -7,8 +9,10 @@ export class MempoolEntry {
   constructor (
     readonly userOp: OperationBase,
     readonly userOpHash: string,
+    readonly validateUserOpResult: ValidateUserOpResult,
     readonly prefund: BigNumberish,
     readonly referencedContracts: ReferencedCodeHashes,
+    readonly ruleViolations: ERC7562Violation[],
     readonly skipValidation: boolean,
     readonly aggregator?: string
   ) {
diff --git a/packages/bundler/src/modules/MempoolManager.ts b/packages/bundler/src/modules/MempoolManager.ts
index 1f942d4f..88276637 100644
--- a/packages/bundler/src/modules/MempoolManager.ts
+++ b/packages/bundler/src/modules/MempoolManager.ts
@@ -10,25 +10,78 @@ import {
   requireCond
 } from '@account-abstraction/utils'
 import {
+  AltMempoolConfig, ERC7562Rule,
   ValidateUserOpResult,
   ValidationResult
 } from '@account-abstraction/validation-manager'
 
 import { MempoolEntry } from './MempoolEntry'
 import { ReputationManager } from './ReputationManager'
+import { BaseAltMempoolRule } from '@account-abstraction/validation-manager/src/altmempool/AltMempoolConfig'
+import { ERC7562Violation } from '@account-abstraction/validation-manager/dist/src/ERC7562Violation'
+import { AccountAbstractionEntity } from '@account-abstraction/validation-manager/dist/src/AccountAbstractionEntity'
 
 const debug = Debug('aa.mempool')
 
-type MempoolDump = OperationBase[]
+interface MempoolDump {[mempoolId: string]: OperationBase[]}
 
 const THROTTLED_ENTITY_MEMPOOL_COUNT = 4
 
+function isRuleViolated (
+  userOp: OperationBase,
+  violation: ERC7562Violation,
+  config: { [rule in ERC7562Rule]?: BaseAltMempoolRule }
+): boolean {
+  const override = config[violation.rule]
+  if (override == null) {
+    return true
+  }
+  if (override.enabled === false) {
+    return false
+  }
+  for (const exception of override.exceptions ?? []) {
+    if (typeof exception === 'string' && exception.toLowerCase() === violation.address.toLowerCase()) {
+      return false
+    }
+    if (
+      (exception === AccountAbstractionEntity.account ||
+        (typeof exception === 'object' && exception.role === AccountAbstractionEntity.account.toString())
+      ) &&
+      violation.entity === AccountAbstractionEntity.account) {
+      return false
+    }
+    // type RuleException = `0x${string}` | Role | AltMempoolRuleExceptionBase | AltMempoolRuleExceptionBannedOpcode
+    // todo: match all possible exceptions
+  }
+  return true
+}
+
 export class MempoolManager {
   private mempool: MempoolEntry[] = []
+  private altMempools: { [mempoolId: string]: MempoolEntry[] } = {}
 
   // count entities in mempool.
   private _entryCount: { [addr: string]: number | undefined } = {}
 
+  constructor (
+    private readonly reputationManager: ReputationManager,
+    private altMempoolConfig: AltMempoolConfig) {
+  }
+
+  /**
+   * Helper to allow for-of loop that of both the main and alt-mempools where possible without merging them in code.
+   */
+  private _getAllMempoolsLoop (): Array<[string, MempoolEntry[]]> {
+    return Object.entries({ ...this.altMempools, 0: this.mempool })
+  }
+
+  /**
+   * Helper function to allow skipping resource-intensive trace parsing if there are no configured alt-mempools.
+   */
+  hasAltMempools (): boolean {
+    return Object.keys(this.altMempoolConfig).length === 0
+  }
+
   entryCount (address: string): number | undefined {
     return this._entryCount[address.toLowerCase()]
   }
@@ -53,10 +106,6 @@ export class MempoolManager {
     }
   }
 
-  constructor (
-    readonly reputationManager: ReputationManager) {
-  }
-
   count (): number {
     return this.mempool.length
   }
@@ -68,24 +117,21 @@ export class MempoolManager {
     skipValidation: boolean,
     userOp: OperationBase,
     userOpHash: string,
-    validationResult: ValidationResult
+    validationResult: ValidateUserOpResult
   ): void {
     const entry = new MempoolEntry(
       userOp,
       userOpHash,
+      validationResult,
       validationResult.returnInfo.prefund ?? 0,
-      (validationResult as ValidateUserOpResult).referencedContracts,
+      validationResult.referencedContracts,
+      validationResult.ruleViolations,
       skipValidation,
       validationResult.aggregatorInfo?.addr
     )
     const packedNonce = getPackedNonce(entry.userOp)
-    const index = this._findBySenderNonce(userOp.sender, packedNonce)
-    let oldEntry: MempoolEntry | undefined
-    if (index !== -1) {
-      oldEntry = this.mempool[index]
-      this.checkReplaceUserOp(oldEntry, entry)
+    if (this._checkReplaceByFee(entry)) {
       debug('replace userOp', userOp.sender, packedNonce)
-      this.mempool[index] = entry
     } else {
       debug('add userOp', userOp.sender, packedNonce)
       if (!skipValidation) {
@@ -99,14 +145,31 @@ export class MempoolManager {
       if (userOp.factory != null) {
         this.incrementEntryCount(userOp.factory)
       }
-      this.mempool.push(entry)
-    }
-    if (oldEntry != null) {
-      this.updateSeenStatus(oldEntry.aggregator, oldEntry.userOp, validationResult.senderInfo, -1)
+      const mempoolsAssigned = this.tryAssignToMempool(entry)
+      if (mempoolsAssigned.length == 0) {
+        throw new RpcError(`UserOperation ${userOpHash} did not match any mempools due to the following violations: ${JSON.stringify(entry.ruleViolations)}`, ValidationErrors.OpcodeValidation)
+      }
     }
     this.updateSeenStatus(validationResult.aggregatorInfo?.addr, userOp, validationResult.senderInfo)
   }
 
+  private _checkReplaceByFee (entry: MempoolEntry): boolean {
+    const packedNonce = getPackedNonce(entry.userOp)
+    for (const [mempoolId, mempool] of this._getAllMempoolsLoop()) {
+      const index = this._findBySenderNonce(entry.userOp.sender, packedNonce, mempool)
+      let oldEntry: MempoolEntry | undefined
+      if (index !== -1) {
+        debug('replace userOp in alt-mempool', entry.userOp.sender, packedNonce, mempoolId)
+        oldEntry = mempool[index]
+        this.checkReplaceUserOp(oldEntry, entry)
+        mempool[index] = entry
+        this.updateSeenStatus(oldEntry.aggregator, oldEntry.userOp, entry.validateUserOpResult.senderInfo, -1)
+        return true
+      }
+    }
+    return false
+  }
+
   private updateSeenStatus (aggregator: string | undefined, userOp: OperationBase, senderInfo: StakeInfo, val = 1): void {
     try {
       this.reputationManager.checkStake('account', senderInfo)
@@ -199,9 +262,9 @@ export class MempoolManager {
     return copy
   }
 
-  _findBySenderNonce (sender: string, nonce: BigNumberish): number {
-    for (let i = 0; i < this.mempool.length; i++) {
-      const curOp = this.mempool[i].userOp
+  _findBySenderNonce (sender: string, nonce: BigNumberish, mempool: MempoolEntry[]): number {
+    for (let i = 0; i < mempool.length; i++) {
+      const curOp = mempool[i].userOp
       const packedNonce = getPackedNonce(curOp)
       if (curOp.sender === sender && packedNonce.eq(nonce)) {
         return i
@@ -210,9 +273,9 @@ export class MempoolManager {
     return -1
   }
 
-  _findByHash (hash: string): number {
-    for (let i = 0; i < this.mempool.length; i++) {
-      const curOp = this.mempool[i]
+  _findByHash (hash: string, mempool: MempoolEntry[]): number {
+    for (let i = 0; i < mempool.length; i++) {
+      const curOp = mempool[i]
       if (curOp.userOpHash === hash) {
         return i
       }
@@ -225,18 +288,29 @@ export class MempoolManager {
    * @param userOpOrHash
    */
   removeUserOp (userOpOrHash: OperationBase | string): void {
+    for (const [mempoolId, mempool] of this._getAllMempoolsLoop()) {
+      this._removeUserOpInternal(userOpOrHash, mempoolId, mempool)
+    }
+  }
+
+  _removeUserOpInternal (userOpOrHash: OperationBase | string, mempoolId: string, mempool: MempoolEntry[]): void {
     let index: number
     if (typeof userOpOrHash === 'string') {
-      index = this._findByHash(userOpOrHash)
+      index = this._findByHash(userOpOrHash, mempool)
     } else {
       const packedNonce = getPackedNonce(userOpOrHash)
-      index = this._findBySenderNonce(userOpOrHash.sender, packedNonce)
+      index = this._findBySenderNonce(userOpOrHash.sender, packedNonce, mempool)
     }
     if (index !== -1) {
-      const userOp = this.mempool[index].userOp
+      const userOp = mempool[index].userOp
       const packedNonce = getPackedNonce(userOp)
       debug('removeUserOp', userOp.sender, packedNonce)
-      this.mempool.splice(index, 1)
+      mempool.splice(index, 1)
+      if (mempoolId !== '0') {
+        // Only decrement entity counts for the main mempool
+        // TODO: support per-mempool entity counts
+        return
+      }
       this.decrementEntryCount(userOp.sender)
       this.decrementEntryCount(userOp.paymaster)
       this.decrementEntryCount(userOp.factory)
@@ -247,8 +321,12 @@ export class MempoolManager {
   /**
    * debug: dump mempool content
    */
-  dump (): MempoolDump {
-    return this.mempool.map(entry => entry.userOp)
+  debugDumpMempool (): MempoolDump {
+    const mempoolDump: MempoolDump = {}
+    for (const [mempoolId, mempool] of this._getAllMempoolsLoop()) {
+      mempoolDump[mempoolId] = mempool.map(entry => entry.userOp)
+    }
+    return mempoolDump
   }
 
   /**
@@ -300,4 +378,51 @@ export class MempoolManager {
       }
     }
   }
+
+  private tryAssignToMempool (entry: MempoolEntry): string[] {
+    if (entry.ruleViolations.length === 0) {
+      this.mempool.push(entry)
+      return ['0']
+    }
+    const mempoolIds: string[] = []
+    console.log(`UserOperation ${entry.userOpHash}`)
+    for (const [mempoolId, config] of Object.entries(this.altMempoolConfig)) {
+      console.log(` Mempool ID: ${mempoolId} Config: ${JSON.stringify(config)}`)
+      for (const violation of entry.ruleViolations) {
+        console.log(`  Violation: ${JSON.stringify(violation)}`)
+        if (isRuleViolated(entry.userOp, violation, config)) {
+          console.log(`   Not adding to mempool ${mempoolId} - rule violated`)
+          continue
+        }
+        console.error(`   Adding to mempool ${mempoolId}`)
+        if (this.altMempools[mempoolId] == null) {
+          this.altMempools[mempoolId] = []
+        }
+        mempoolIds.push(mempoolId)
+        this.altMempools[mempoolId].push(entry)
+        this.reputationManager.updateSeenStatus(mempoolId)
+      }
+    }
+    return mempoolIds
+  }
+
+  /**
+   * Debug only function to clean up the existing alt-mempools and set a new alt-mempools configuration.
+   */
+  async _setAltMempoolConfig (altMempoolConfig: AltMempoolConfig): Promise<void> {
+    this.altMempools = {}
+    this.altMempoolConfig = altMempoolConfig
+  }
+
+  includedUserOp (userOpHash: string): void {
+    for (const [mempoolId, mempool] of Object.entries(this.altMempools)) {
+      const found = mempool.find((it: MempoolEntry) => {
+        return it.userOpHash === userOpHash
+      })
+      if (found != null) {
+        console.error(`Found UserOp ${userOpHash} in the mempool ${mempoolId}, updating INCLUDED`)
+        this.reputationManager.updateIncludedStatus(mempoolId)
+      }
+    }
+  }
 }
diff --git a/packages/bundler/src/modules/ReputationManager.ts b/packages/bundler/src/modules/ReputationManager.ts
index 33a004c2..f110089b 100644
--- a/packages/bundler/src/modules/ReputationManager.ts
+++ b/packages/bundler/src/modules/ReputationManager.ts
@@ -37,15 +37,18 @@ export const NonBundlerReputationParams: ReputationParams = {
   banSlack: 10
 }
 
-interface ReputationEntry {
-  address: string
+/**
+ * An entry whose "reputation" is tracked by the {@link ReputationManager}.
+ * May represent either a smart contract with a role in an ERC-4337 transaction or an alternative mempool.
+ * The "entryId" is either a contract address or alt-mempool ID.
+ */
+export interface ReputationEntry {
+  entryId: string
   opsSeen: number
   opsIncluded: number
   status?: ReputationStatus
 }
 
-export type ReputationDump = ReputationEntry[]
-
 export class ReputationManager {
   constructor (
     readonly provider: Provider,
@@ -54,18 +57,23 @@ export class ReputationManager {
     readonly minUnstakeDelay: number) {
   }
 
-  private entries: { [address: string]: ReputationEntry } = {}
+  /**
+   * A mapping of all entries whose reputation is being tracked.
+   * A lowercase address is used to identify smart contracts.
+   * An alt-mempool ID is used to identify alt-mempools.
+   */
+  private entries: { [id: string | number]: ReputationEntry } = {}
   // black-listed entities - always banned
   readonly blackList = new Set<string>()
 
   // white-listed entities - always OK.
-  readonly whitelist = new Set<string>()
+  readonly whitelist = new Set<string | number>()
 
   /**
    * debug: dump reputation map (with updated "status" for each entry)
    */
-  dump (): ReputationDump {
-    Object.values(this.entries).forEach(entry => { entry.status = this.getStatus(entry.address) })
+  _debugDumpReputation (): ReputationEntry[] {
+    Object.values(this.entries).forEach(entry => { entry.status = this.getStatus(entry.entryId) })
     return Object.values(this.entries)
   }
 
@@ -92,12 +100,12 @@ export class ReputationManager {
     params.forEach(item => this.blackList.add(item))
   }
 
-  _getOrCreate (addr: string): ReputationEntry {
-    addr = addr.toLowerCase()
-    let entry = this.entries[addr]
+  _getOrCreate (id: string): ReputationEntry {
+    id = id.toLowerCase()
+    let entry = this.entries[id]
     if (entry == null) {
-      this.entries[addr] = entry = {
-        address: addr,
+      this.entries[id] = entry = {
+        entryId: id,
         opsSeen: 0,
         opsIncluded: 0
       }
@@ -107,16 +115,16 @@ export class ReputationManager {
 
   /**
    * address seen in the mempool triggered by the
-   * @param addr
+   * @param id
    * @param val increment value for "seen" status
    */
-  updateSeenStatus (addr?: string, val = 1): void {
-    if (addr == null) {
+  updateSeenStatus (id?: string, val = 1): void {
+    if (id == null) {
       return
     }
-    const entry = this._getOrCreate(addr)
+    const entry = this._getOrCreate(id)
     entry.opsSeen = Math.max(0, entry.opsSeen + val)
-    debug('after seen+', val, addr, entry)
+    debug('after seen+', val, id, entry)
   }
 
   /**
@@ -202,17 +210,17 @@ export class ReputationManager {
 
   /**
    * for debugging: put in the given reputation entries
-   * @param entries
+   * @param reputations
    */
-  setReputation (reputations: ReputationDump): ReputationDump {
+  _debugSetReputation (reputations: ReputationEntry[]): ReputationEntry[] {
     reputations.forEach(rep => {
-      this.entries[rep.address.toLowerCase()] = {
-        address: rep.address.toLowerCase(),
+      this.entries[rep.entryId.toLowerCase()] = {
+        entryId: rep.entryId.toLowerCase(),
         opsSeen: BigNumber.from(rep.opsSeen).toNumber(),
         opsIncluded: BigNumber.from(rep.opsIncluded).toNumber()
       }
     })
-    return this.dump()
+    return this._debugDumpReputation()
   }
 
   /**
diff --git a/packages/bundler/src/modules/initServer.ts b/packages/bundler/src/modules/initServer.ts
index ad7d0942..26b59034 100644
--- a/packages/bundler/src/modules/initServer.ts
+++ b/packages/bundler/src/modules/initServer.ts
@@ -12,7 +12,7 @@ import {
   AA_ENTRY_POINT,
   AA_NONCE_MANAGER,
   AA_SENDER_CREATOR,
-  AA_STAKE_MANAGER,
+  AA_STAKE_MANAGER, AltMempoolConfig,
   IValidationManager,
   ValidationManager,
   ValidationManagerRIP7560
@@ -31,25 +31,27 @@ import { ERC7562Parser } from '@account-abstraction/validation-manager/dist/src/
  * initialize server modules.
  * returns the ExecutionManager and EventsManager (for handling events, to update reputation)
  * @param config
+ * @param altMempoolConfig
  * @param signer
  */
-export function initServer (config: BundlerConfig, signer: Signer): [ExecutionManager, EventsManager, ReputationManager, MempoolManager, PreVerificationGasCalculator] {
+export function initServer (config: BundlerConfig, altMempoolConfig: AltMempoolConfig, signer: Signer): [ExecutionManager, EventsManager, ReputationManager, MempoolManager, PreVerificationGasCalculator] {
   const entryPoint = IEntryPoint__factory.connect(config.entryPoint, signer)
   const reputationManager = new ReputationManager(getNetworkProvider(config.network), BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-  const mempoolManager = new MempoolManager(reputationManager)
+  const mempoolManager = new MempoolManager(reputationManager, altMempoolConfig)
   const eventsManager = new EventsManager(entryPoint, mempoolManager, reputationManager)
   const mergedPvgcConfig = Object.assign({}, ChainConfigs[config.chainId] ?? {}, config)
   const preVerificationGasCalculator = new PreVerificationGasCalculator(mergedPvgcConfig)
   let validationManager: IValidationManager
   let bundleManager: IBundleManager
   if (!config.rip7560) {
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+    const bailOnViolation = Object.keys(altMempoolConfig).length === 0
+    const erc7562Parser = new ERC7562Parser(bailOnViolation, entryPoint.address, config.senderCreator)
     const tracerProvider = config.tracerRpcUrl == null ? undefined : getNetworkProvider(config.tracerRpcUrl)
     validationManager = new ValidationManager(entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser, tracerProvider)
     bundleManager = new BundleManager(entryPoint, entryPoint.provider as JsonRpcProvider, signer, eventsManager, mempoolManager, validationManager, reputationManager,
       config.beneficiary, parseEther(config.minBalance), config.maxBundleGas, config.conditionalRpc)
   } else {
-    const erc7562Parser = new ERC7562Parser(AA_ENTRY_POINT, AA_SENDER_CREATOR, AA_NONCE_MANAGER)
+    const erc7562Parser = new ERC7562Parser(true, AA_ENTRY_POINT, AA_SENDER_CREATOR, AA_NONCE_MANAGER)
     const stakeManager = IRip7560StakeManager__factory.connect(AA_STAKE_MANAGER, signer)
     validationManager = new ValidationManagerRIP7560(stakeManager, entryPoint.provider as JsonRpcProvider, erc7562Parser, config.unsafe)
     bundleManager = new BundleManagerRIP7560(entryPoint.provider as JsonRpcProvider, signer, eventsManager, mempoolManager, validationManager, reputationManager,
diff --git a/packages/bundler/src/runBundler.ts b/packages/bundler/src/runBundler.ts
index e4d6e0f2..a86ffbbd 100644
--- a/packages/bundler/src/runBundler.ts
+++ b/packages/bundler/src/runBundler.ts
@@ -16,7 +16,7 @@ import { MethodHandlerERC4337 } from './MethodHandlerERC4337'
 import { initServer } from './modules/initServer'
 import { DebugMethodHandler } from './DebugMethodHandler'
 import { supportsDebugTraceCall, supportsNativeTracer } from '@account-abstraction/validation-manager'
-import { resolveConfiguration } from './Config'
+import { resolveAltMempoolConfig, resolveConfiguration } from './Config'
 import { bundlerConfigDefault } from './BundlerConfig'
 import { parseEther } from 'ethers/lib/utils'
 import { MethodHandlerRIP7560 } from './MethodHandlerRIP7560'
@@ -32,6 +32,7 @@ ethers.BigNumber.prototype[inspectCustomSymbol] = function () {
 }
 
 const CONFIG_FILE_NAME = 'workdir/bundler.config.json'
+const ALT_MEMPOOL_FILE_NAME = 'workdir/alt.mempool.config.json'
 
 export let showStackTraces = false
 
@@ -89,6 +90,7 @@ export async function runBundler (argv: string[], overrideExit = true): Promise<
     .option('--rip7560', 'Use this bundler as an RIP-7560 node')
     .option('--rip7560Mode <string>', 'PUSH mode sends bundles to node at an interval, PULL mode waits for node to query bundle')
     .option('--gethDevMode', 'In PULL mode send 1 wei transaction to trigger block creation')
+    .option('--altMempoolConfig <string>', 'path to Alt-Mempool config files (overrides to ERC-7562 rules)', ALT_MEMPOOL_FILE_NAME)
 
   const programOpts = program.parse(argv).opts()
   showStackTraces = programOpts.showStackTraces
@@ -107,6 +109,7 @@ export async function runBundler (argv: string[], overrideExit = true): Promise<
     process.exit(1)
   }
   const { config, provider, wallet } = await resolveConfiguration(programOpts)
+  const altMempoolConfig = await resolveAltMempoolConfig(programOpts)
 
   const {
     // name: chainName,
@@ -182,7 +185,7 @@ export async function runBundler (argv: string[], overrideExit = true): Promise<
     reputationManager,
     mempoolManager,
     preVerificationGasCalculator
-  ] = initServer(execManagerConfig, wallet)
+  ] = initServer(execManagerConfig, altMempoolConfig, wallet)
   const methodHandler = new MethodHandlerERC4337(
     execManager,
     provider,
diff --git a/packages/bundler/test/BundlerManager.test.ts b/packages/bundler/test/BundlerManager.test.ts
index 9827b7df..3a6e8e3c 100644
--- a/packages/bundler/test/BundlerManager.test.ts
+++ b/packages/bundler/test/BundlerManager.test.ts
@@ -63,9 +63,9 @@ describe('#BundlerManager', () => {
     }
 
     const repMgr = new ReputationManager(provider, BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-    const mempoolMgr = new MempoolManager(repMgr)
+    const mempoolMgr = new MempoolManager(repMgr, {})
     const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+    const erc7562Parser = new ERC7562Parser(true, entryPoint.address, config.senderCreator)
     const validMgr = new ValidationManager(entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser)
     const evMgr = new EventsManager(entryPoint, mempoolMgr, repMgr)
     bm = new BundleManager(entryPoint, entryPoint.provider as JsonRpcProvider, entryPoint.signer, evMgr, mempoolMgr, validMgr, repMgr, config.beneficiary, parseEther(config.minBalance), config.maxBundleGas, config.conditionalRpc)
@@ -121,9 +121,9 @@ describe('#BundlerManager', () => {
         eip7702Support: false
       }
       const repMgr = new ReputationManager(provider, BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-      const mempoolMgr = new MempoolManager(repMgr)
+      const mempoolMgr = new MempoolManager(repMgr, {})
       const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
-      const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+      const erc7562Parser = new ERC7562Parser(true, entryPoint.address, config.senderCreator)
       const validMgr = new ValidationManager(_entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser)
       const evMgr = new EventsManager(_entryPoint, mempoolMgr, repMgr)
       bundleMgr = new BundleManager(_entryPoint, _entryPoint.provider as JsonRpcProvider, _entryPoint.signer, evMgr, mempoolMgr, validMgr, repMgr, config.beneficiary, parseEther(config.minBalance), config.maxBundleGas, false)
diff --git a/packages/bundler/test/BundlerServer.test.ts b/packages/bundler/test/BundlerServer.test.ts
index cb7e30b4..428a303e 100644
--- a/packages/bundler/test/BundlerServer.test.ts
+++ b/packages/bundler/test/BundlerServer.test.ts
@@ -59,9 +59,9 @@ describe('BundleServer', function () {
     }
 
     const repMgr = new ReputationManager(provider, BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-    const mempoolMgr = new MempoolManager(repMgr)
+    const mempoolMgr = new MempoolManager(repMgr, {})
     const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+    const erc7562Parser = new ERC7562Parser(true, entryPoint.address, config.senderCreator)
     const validMgr = new ValidationManager(entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser)
     const evMgr = new EventsManager(entryPoint, mempoolMgr, repMgr)
     const bundleMgr = new BundleManager(entryPoint, entryPoint.provider as JsonRpcProvider, entryPoint.signer, evMgr, mempoolMgr, validMgr, repMgr, config.beneficiary, parseEther(config.minBalance), config.maxBundleGas, false)
diff --git a/packages/bundler/test/DebugMethodHandler.test.ts b/packages/bundler/test/DebugMethodHandler.test.ts
index 761d0277..075da9ac 100644
--- a/packages/bundler/test/DebugMethodHandler.test.ts
+++ b/packages/bundler/test/DebugMethodHandler.test.ts
@@ -69,9 +69,9 @@ describe('#DebugMethodHandler', () => {
     }
 
     const repMgr = new ReputationManager(provider, BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-    const mempoolMgr = new MempoolManager(repMgr)
+    const mempoolMgr = new MempoolManager(repMgr, {})
     const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+    const erc7562Parser = new ERC7562Parser(true, entryPoint.address, config.senderCreator)
     const validMgr = new ValidationManager(entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser)
     const eventsManager = new EventsManager(entryPoint, mempoolMgr, repMgr)
     const bundleMgr = new BundleManager(entryPoint, entryPoint.provider as JsonRpcProvider, entryPoint.signer, eventsManager, mempoolMgr, validMgr, repMgr,
diff --git a/packages/bundler/test/RIP7560Mode.test.ts b/packages/bundler/test/RIP7560Mode.test.ts
index ec602cf2..9c8091c5 100644
--- a/packages/bundler/test/RIP7560Mode.test.ts
+++ b/packages/bundler/test/RIP7560Mode.test.ts
@@ -57,7 +57,7 @@ describe.skip('RIP7560Mode', function () {
       // fund deployment of the EntryPoint contract
       await signer.sendTransaction({ to: await wallet.getAddress(), value: parseEther('1') })
 
-      const [execManager] = initServer(config, signer)
+      const [execManager] = initServer(config, {}, signer)
 
       // spy on the underlying ExecutionManager provider 'send' function
       // @ts-ignore
diff --git a/packages/bundler/test/UserOpMethodHandler.test.ts b/packages/bundler/test/UserOpMethodHandler.test.ts
index c47dbe96..81eda571 100644
--- a/packages/bundler/test/UserOpMethodHandler.test.ts
+++ b/packages/bundler/test/UserOpMethodHandler.test.ts
@@ -87,9 +87,9 @@ describe('UserOpMethodHandler', function () {
     }
 
     const repMgr = new ReputationManager(provider, BundlerReputationParams, parseEther(config.minStake), config.minUnstakeDelay)
-    mempoolMgr = new MempoolManager(repMgr)
+    mempoolMgr = new MempoolManager(repMgr, {})
     const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, config.senderCreator)
+    const erc7562Parser = new ERC7562Parser(true, entryPoint.address, config.senderCreator)
     const validMgr = new ValidationManager(entryPoint, config.unsafe, preVerificationGasCalculator, erc7562Parser)
     const evMgr = new EventsManager(entryPoint, mempoolMgr, repMgr)
     const bundleMgr = new BundleManager(entryPoint, entryPoint.provider as JsonRpcProvider, entryPoint.signer, evMgr, mempoolMgr, validMgr, repMgr, config.beneficiary, parseEther(config.minBalance), config.maxBundleGas, false)
diff --git a/packages/bundler/test/ValidateManager.test.ts b/packages/bundler/test/ValidateManager.test.ts
index c582b104..6f3f72fb 100644
--- a/packages/bundler/test/ValidateManager.test.ts
+++ b/packages/bundler/test/ValidateManager.test.ts
@@ -157,7 +157,7 @@ describe('#ValidationManager', () => {
     const preVerificationGasCalculator = new PreVerificationGasCalculator(MainnetConfig)
 
     const senderCreator = '0xefc2c1444ebcc4db75e7613d20c6a62ff67a167c'
-    const erc7562Parser = new ERC7562Parser(entryPoint.address, senderCreator)
+    const erc7562Parser = new ERC7562Parser(true, entryPoint.address, senderCreator)
     vm = new ValidationManager(entryPoint, unsafe, preVerificationGasCalculator, erc7562Parser)
 
     if (!await supportsDebugTraceCall(ethers.provider, false)) {
diff --git a/packages/validation-manager/src/ERC7562Parser.ts b/packages/validation-manager/src/ERC7562Parser.ts
index ccdd72ee..4a7a7fc5 100644
--- a/packages/validation-manager/src/ERC7562Parser.ts
+++ b/packages/validation-manager/src/ERC7562Parser.ts
@@ -255,15 +255,15 @@ export class ERC7562Parser {
   private contractAddresses: string[] = []
   private storageMap: StorageMap = {}
 
-  private bailOnViolation: boolean = false
-
   constructor (
+    public bailOnViolation: boolean,
     readonly entryPointAddress: string,
     readonly senderCreatorAddress: string,
     readonly nonceManagerAddress?: string
   ) {}
 
   /**
+   * TODO: remove - currently only used by 7560
    * Analyzes the tracing results for the given UserOperation.
    * Throws an exception in case canonical ERC-7562 rule violation was detected.
    *
@@ -284,7 +284,7 @@ export class ERC7562Parser {
   /**
    * Analyzes the tracing results for the given UserOperation.
    *
-   * Unlike {@link requireCompliance}, does not throw an exception in case a rule violation was detected.
+   * If {@link bailOnViolation} is true throws an exception once the first rule violation is detected.
    *
    * @returns {@link ERC7562ValidationResults} containing addresses and storage slots accessed by the UserOperation,
    * @returns an array of ERC-7562 rules that were violated by the UserOperation.
@@ -518,7 +518,7 @@ export class ERC7562Parser {
           rule: ERC7562Rule.op011,
           depth: recursionDepth,
           entity: this.currentEntity,
-          address: erc7562Call.from,
+          address: erc7562Call.to,
           opcode,
           value: '0',
           errorCode: ValidationErrors.OpcodeValidation,
diff --git a/packages/validation-manager/src/IValidationManager.ts b/packages/validation-manager/src/IValidationManager.ts
index c24fd2c0..0b5e634b 100644
--- a/packages/validation-manager/src/IValidationManager.ts
+++ b/packages/validation-manager/src/IValidationManager.ts
@@ -8,6 +8,7 @@ import {
   StorageMap
 } from '@account-abstraction/utils'
 import { PreVerificationGasCalculatorConfig } from '@account-abstraction/sdk'
+import { ERC7562Violation } from './ERC7562Violation'
 
 /**
  * result from successful validation
@@ -28,6 +29,7 @@ export interface ValidationResult {
 }
 
 export interface ValidateUserOpResult extends ValidationResult {
+  ruleViolations: ERC7562Violation[]
   referencedContracts: ReferencedCodeHashes
   storageMap: StorageMap
 }
@@ -49,6 +51,7 @@ export const EmptyValidateUserOpResult: ValidateUserOpResult = {
     addresses: [],
     hash: ''
   },
+  ruleViolations: [],
   storageMap: {}
 }
 
diff --git a/packages/validation-manager/src/ValidationManager.ts b/packages/validation-manager/src/ValidationManager.ts
index 5a2a0438..117be5d4 100644
--- a/packages/validation-manager/src/ValidationManager.ts
+++ b/packages/validation-manager/src/ValidationManager.ts
@@ -40,6 +40,7 @@ import { ERC7562Parser } from './ERC7562Parser'
 import { ERC7562Call } from './ERC7562Call'
 import { bundlerCollectorTracer, BundlerTracerResult } from './BundlerCollectorTracer'
 import { tracerResultParser } from './TracerResultParser'
+import { ERC7562Violation } from './ERC7562Violation'
 
 const debug = Debug('aa.mgr.validate')
 
@@ -263,6 +264,7 @@ export class ValidationManager implements IValidationManager {
     }
     const stateOverrideForEip7702 = await this.getAuthorizationsStateOverride(authorizationList)
     let storageMap: StorageMap = {}
+    let ruleViolations: ERC7562Violation[] = []
     if (!this.unsafe) {
       let erc7562Call: ERC7562Call | null
       let bundlerTracerResult: BundlerTracerResult | null
@@ -273,7 +275,7 @@ export class ValidationManager implements IValidationManager {
       // console.dir(tracerResult, { depth: null })
       let contractAddresses: string[]
       if (erc7562Call != null) {
-        ({ contractAddresses, storageMap } = this.erc7562Parser.requireCompliance(userOp, erc7562Call, res))
+        ({ contractAddresses, storageMap, ruleViolations } = this.erc7562Parser.parseResults(userOp, erc7562Call, res))
       } else if (bundlerTracerResult != null) {
         [contractAddresses, storageMap] = tracerResultParser(userOp, bundlerTracerResult, res, this.entryPoint.address)
       } else {
@@ -318,6 +320,7 @@ export class ValidationManager implements IValidationManager {
 
     return {
       ...res,
+      ruleViolations,
       referencedContracts: codeHashes,
       storageMap
     }
diff --git a/packages/validation-manager/src/ValidationManagerRIP7560.ts b/packages/validation-manager/src/ValidationManagerRIP7560.ts
index 825fe59a..6ba4f493 100644
--- a/packages/validation-manager/src/ValidationManagerRIP7560.ts
+++ b/packages/validation-manager/src/ValidationManagerRIP7560.ts
@@ -130,6 +130,7 @@ export class ValidationManagerRIP7560 implements IValidationManager {
         addresses: [],
         hash: ''
       },
+      ruleViolations: [],
       storageMap: {}
     }
     // throw new Error('Method not implemented.');
diff --git a/packages/validation-manager/src/altmempool/AltMempoolConfig.ts b/packages/validation-manager/src/altmempool/AltMempoolConfig.ts
index 1f422ea6..f8d6a5a2 100644
--- a/packages/validation-manager/src/altmempool/AltMempoolConfig.ts
+++ b/packages/validation-manager/src/altmempool/AltMempoolConfig.ts
@@ -1,8 +1,10 @@
+import ow from 'ow'
+
 import { ERC7562Rule } from '../enum/ERC7562Rule'
 
-type Role = 'sender' | 'paymaster' | 'factory'
+export type Role = 'account' | 'paymaster' | 'factory'
 
-type EnterOpcode = 'CALL' | 'DELEGATECALL' | 'CALLCODE' | 'STATICCALL' | 'CREATE' | 'CREATE2'
+export type EnterOpcode = 'CALL' | 'DELEGATECALL' | 'CALLCODE' | 'STATICCALL' | 'CREATE' | 'CREATE2'
 
 export interface AltMempoolRuleExceptionBase {
   role?: Role
@@ -25,15 +27,50 @@ export interface BaseAltMempoolRule {
 }
 
 export interface AltMempoolConfig {
-  [mempoolId: number]: { [rule in ERC7562Rule]?: BaseAltMempoolRule }
+  [mempoolId: string]: { [rule in ERC7562Rule]?: BaseAltMempoolRule }
+}
+
+const AltMempoolRuleExceptionBaseShape = ow.object.partialShape({
+  role: ow.optional.any(ow.optional.string.oneOf(['account', 'paymaster', 'factory']), ow.null),
+  address: ow.optional.any(ow.string, ow.null),
+  depths: ow.optional.any(ow.optional.array.ofType(ow.number), ow.null),
+  enterOpcode: ow.optional.any(ow.optional.array.ofType(
+    ow.string.oneOf(['CALL', 'DELEGATECALL', 'CALLCODE', 'STATICCALL', 'CREATE', 'CREATE2'])
+  ), ow.null),
+  enterMethodSelector: ow.optional.any(ow.optional.string.matches(/^0x[a-fA-F0-9]+$/), ow.null)
+})
+
+const AltMempoolRuleExceptionBannedOpcodeShape = ow.object.partialShape({
+  ...AltMempoolRuleExceptionBaseShape,
+  opcodes: ow.array.minLength(1).ofType(ow.string),
+  slots: ow.array.minLength(1).ofType(ow.string.matches(/^0x[a-fA-F0-9]+$/))
+})
+
+const BaseAltMempoolRuleShape = ow.object.partialShape({
+  enabled: ow.optional.boolean,
+  exceptions: ow.optional.array.minLength(1).ofType(
+    ow.any(
+      ow.string.matches(/^0x[a-fA-F0-9]+$/),
+      ow.string.oneOf(['account', 'paymaster', 'factory']),
+      AltMempoolRuleExceptionBaseShape,
+      AltMempoolRuleExceptionBannedOpcodeShape
+    )
+  )
+})
+
+const AltMempoolConfigShape = ow.object.valuesOfType(ow.object.valuesOfType(BaseAltMempoolRuleShape))
+
+export function validateAltMempoolConfigShape (config: AltMempoolConfig): void {
+  ow(config, AltMempoolConfigShape)
 }
 
+// TODO: remove
 const config: AltMempoolConfig = {
   1: {
     [ERC7562Rule.erep010]: {
       enabled: true,
       exceptions: [
-        'sender',
+        'account',
         '0xdeadbeef',
         {
           depths: [3],
@@ -46,4 +83,6 @@ const config: AltMempoolConfig = {
   }
 }
 
+validateAltMempoolConfigShape(config)
+
 console.log(config)
diff --git a/packages/validation-manager/src/index.ts b/packages/validation-manager/src/index.ts
index bea25cee..ebae1027 100644
--- a/packages/validation-manager/src/index.ts
+++ b/packages/validation-manager/src/index.ts
@@ -58,7 +58,7 @@ export async function checkRulesViolations (
   }
   const entryPoint = IEntryPoint__factory.connect(entryPointAddress, provider)
   const senderCreator = '0xefc2c1444ebcc4db75e7613d20c6a62ff67a167c'
-  const erc7562Parser = new ERC7562Parser(entryPointAddress, senderCreator)
+  const erc7562Parser = new ERC7562Parser(true, entryPointAddress, senderCreator)
   const validationManager = new ValidationManager(
     entryPoint,
     false,
diff --git a/submodules/rip7560 b/submodules/rip7560
index b38a294a..5903e385 160000
--- a/submodules/rip7560
+++ b/submodules/rip7560
@@ -1 +1 @@
-Subproject commit b38a294a7c35007610d0ce5498f053d2ee2f58e3
+Subproject commit 5903e3850d775f2eda30b8fcccb630b1253df0a5