diff --git a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/XmlFlowModelBuilder.java b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/XmlFlowModelBuilder.java
index b3943780..d5a19997 100644
--- a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/XmlFlowModelBuilder.java
+++ b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/XmlFlowModelBuilder.java
@@ -658,7 +658,11 @@ public class XmlFlowModelBuilder implements FlowModelBuilder {
 				flowId = parent.substring(0, hashIndex).trim();
 				stateId = parent.substring(hashIndex + 1).trim();
 				try {
-					parentState = modelLocator.getFlowModel(flowId).getStateById(stateId);
+					if (StringUtils.hasText(flowId)) {
+						parentState = modelLocator.getFlowModel(flowId).getStateById(stateId);
+					} else {
+						parentState = flowModel.getStateById(stateId);
+					}
 					if (parentState == null) {
 						throw new FlowModelBuilderException("Unable to find state '" + stateId + "' in flow '" + flowId
 								+ "'");
diff --git a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/spring-webflow-2.0.xsd b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/spring-webflow-2.0.xsd
index 0c38ad2e..74247ab9 100644
--- a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/spring-webflow-2.0.xsd
+++ b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/builder/xml/spring-webflow-2.0.xsd
@@ -249,9 +249,11 @@ The unique identifier of this state; must be unique to this flow.
 								<xsd:annotation>
 									<xsd:documentation>
 										<![CDATA[
-Flow identifier to inherit from for this state only.
-<p>
-For example <pre>&lt;state id="state" parent="flowId#stateId"&gt;</pre>
+The parent state this state should inherit from.
+Specify the value in the form [flowId]#<stateId>.
+If inheriting from a state defined in another flow, the flowId prefix is required.
+If inheriting from a state defined in this flow, the flowId should not be specified.
+For example, <pre>&lt;action-state id="state" parent="myParentFlow#myParentState"&gt;</pre> or <pre>&lt;action-state id="state" parent="#myLocalParentState"&gt;</pre>
 ]]>
 									</xsd:documentation>
 								</xsd:annotation>
@@ -449,9 +451,11 @@ The unique identifier of this state; must be unique to this flow.
 								<xsd:annotation>
 									<xsd:documentation>
 										<![CDATA[
-Flow identifier to inherit from for this state only.
-<p>
-For example <pre>&lt;state id="state" parent="flowId#stateId"&gt;</pre>
+The parent state this state should inherit from.
+Specify the value in the form [flowId]#<stateId>.
+If inheriting from a state defined in another flow, the flowId prefix is required.
+If inheriting from a state defined in this flow, the flowId should not be specified.
+For example, <pre>&lt;view-state id="state" parent="myParentFlow#myParentState"&gt;</pre> or <pre>&lt;view-state id="state" parent="#myLocalParentState"&gt;</pre>
 ]]>
 									</xsd:documentation>
 								</xsd:annotation>
@@ -662,9 +666,11 @@ The unique identifier of this state; must be unique to this flow.
 								<xsd:annotation>
 									<xsd:documentation>
 										<![CDATA[
-Flow identifier to inherit from for this state only.
-<p>
-For example <pre>&lt;state id="state" parent="flowId#stateId"&gt;</pre>
+The parent state this state should inherit from.
+Specify the value in the form [flowId]#<stateId>.
+If inheriting from a state defined in another flow, the flowId prefix is required.
+If inheriting from a state defined in this flow, the flowId should not be specified.
+For example, <pre>&lt;decision-state id="state" parent="myParentFlow#myParentState"&gt;</pre> or <pre>&lt;decision-state id="state" parent="#myLocalParentState"&gt;</pre>
 ]]>
 									</xsd:documentation>
 								</xsd:annotation>
@@ -779,9 +785,11 @@ The unique identifier of this state; must be unique to this flow.
 								<xsd:annotation>
 									<xsd:documentation>
 										<![CDATA[
-Flow identifier to inherit from for this state only.
-<p>
-For example <pre>&lt;state id="state" parent="flowId#stateId"&gt;</pre>
+The parent state this state should inherit from.
+Specify the value in the form [flowId]#<stateId>.
+If inheriting from a state defined in another flow, the flowId prefix is required.
+If inheriting from a state defined in this flow, the flowId should not be specified.
+For example, <pre>&lt;subflow-state id="state" parent="myParentFlow#myParentState"&gt;</pre> or <pre>&lt;subflow-state id="state" parent="#myLocalParentState"&gt;</pre>
 ]]>
 									</xsd:documentation>
 								</xsd:annotation>
@@ -885,9 +893,11 @@ The unique identifier of this state; must be unique to this flow.
 								<xsd:annotation>
 									<xsd:documentation>
 										<![CDATA[
-Flow identifier to inherit from for this state only.
-<p>
-For example <pre>&lt;state id="state" parent="flowId#stateId"&gt;</pre>
+The parent state this state should inherit from.
+Specify the value in the form [flowId]#<stateId>.
+If inheriting from a state defined in another flow, the flowId prefix is required.
+If inheriting from a state defined in this flow, the flowId should not be specified.
+For example, <pre>&lt;end-state id="state" parent="myParentFlow#myParentState"&gt;</pre> or <pre>&lt;end-state id="state" parent="#myLocalParentState"&gt;</pre>
 ]]>
 									</xsd:documentation>
 								</xsd:annotation>
@@ -1045,7 +1055,7 @@ The starting point of this flow.  If not specified, the start state is the first
 				<xsd:annotation>
 					<xsd:documentation>
 						<![CDATA[
-Marks a flow model as abstract, preventing it from instantiating as a flow definition.
+Marks a flow model as abstract, preventing it from being instantiated as a flow definition.
 ]]>
 					</xsd:documentation>
 				</xsd:annotation>
@@ -1054,7 +1064,7 @@ Marks a flow model as abstract, preventing it from instantiating as a flow defin
 				<xsd:annotation>
 					<xsd:documentation>
 						<![CDATA[
-A comma separated list of flow identifier for this flow to inherit from.
+A comma separated list of flows this flow definition should inherit from.
 ]]>
 					</xsd:documentation>
 				</xsd:annotation>
diff --git a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/registry/FlowModelRegistryImpl.java b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/registry/FlowModelRegistryImpl.java
index d50f9331..0be69007 100644
--- a/spring-webflow/src/main/java/org/springframework/webflow/engine/model/registry/FlowModelRegistryImpl.java
+++ b/spring-webflow/src/main/java/org/springframework/webflow/engine/model/registry/FlowModelRegistryImpl.java
@@ -49,7 +49,6 @@ public class FlowModelRegistryImpl implements FlowModelRegistry {
 	public FlowModel getFlowModel(String id) throws NoSuchFlowModelException {
 		try {
 			return getFlowModelHolder(id).getFlowModel();
-
 		} catch (NoSuchFlowModelException e) {
 			if (parent != null) {
 				// try parent