diff --git a/src/evdev-fallback.c b/src/evdev-fallback.c
index 64007720..50c4afd1 100644
--- a/src/evdev-fallback.c
+++ b/src/evdev-fallback.c
@@ -871,6 +871,21 @@ fallback_any_button_down(struct fallback_dispatch *dispatch,
 	return false;
 }
 
+static inline bool
+fallback_arbitrate_touch(struct fallback_dispatch *dispatch,
+			 struct mt_slot *slot)
+{
+	bool discard = false;
+
+	if (dispatch->arbitration.state == ARBITRATION_IGNORE_RECT &&
+	    point_in_rect(&slot->point, &dispatch->arbitration.rect)) {
+		slot->palm_state = PALM_IS_PALM;
+		discard = true;
+	}
+
+	return discard;
+}
+
 static inline bool
 fallback_flush_mt_events(struct fallback_dispatch *dispatch,
 			 struct evdev_device *device,
@@ -900,10 +915,13 @@ fallback_flush_mt_events(struct fallback_dispatch *dispatch,
 		} else if (slot->palm_state == PALM_NONE) {
 			switch (slot->state) {
 			case SLOT_STATE_BEGIN:
-				sent = fallback_flush_mt_down(dispatch,
-							      device,
-							      i,
-							      time);
+				if (!fallback_arbitrate_touch(dispatch,
+							     slot)) {
+					sent = fallback_flush_mt_down(dispatch,
+								      device,
+								      i,
+								      time);
+				}
 				break;
 			case SLOT_STATE_UPDATE:
 				sent = fallback_flush_mt_motion(dispatch,
@@ -1044,12 +1062,16 @@ fallback_interface_process(struct evdev_dispatch *evdev_dispatch,
 static void
 cancel_touches(struct fallback_dispatch *dispatch,
 	       struct evdev_device *device,
+	       const struct device_coord_rect *rect,
 	       uint64_t time)
 {
 	unsigned int idx;
 	bool need_frame = false;
 
-	need_frame = fallback_flush_st_cancel(dispatch, device, time);
+	if (!rect || point_in_rect(&dispatch->abs.point, rect))
+		need_frame = fallback_flush_st_cancel(dispatch,
+						      device,
+						      time);
 
 	for (idx = 0; idx < dispatch->mt.slots_len; idx++) {
 		struct mt_slot *slot = &dispatch->mt.slots[idx];
@@ -1057,7 +1079,8 @@ cancel_touches(struct fallback_dispatch *dispatch,
 		if (slot->seat_slot == -1)
 			continue;
 
-		if (fallback_flush_mt_cancel(dispatch, device, idx, time))
+		if ((!rect || point_in_rect(&slot->point, rect)) &&
+		    fallback_flush_mt_cancel(dispatch, device, idx, time))
 			need_frame = true;
 	}
 
@@ -1125,7 +1148,7 @@ fallback_return_to_neutral_state(struct fallback_dispatch *dispatch,
 	if ((time = libinput_now(libinput)) == 0)
 		return;
 
-	cancel_touches(dispatch, device, time);
+	cancel_touches(dispatch, device, NULL, time);
 	release_pressed_keys(dispatch, device, time);
 	memset(dispatch->hw_key_mask, 0, sizeof(dispatch->hw_key_mask));
 	memset(dispatch->hw_key_mask, 0, sizeof(dispatch->last_hw_key_mask));
@@ -1199,9 +1222,11 @@ static void
 fallback_interface_toggle_touch(struct evdev_dispatch *evdev_dispatch,
 				struct evdev_device *device,
 				enum evdev_arbitration_state which,
+				const struct phys_rect *phys_rect,
 				uint64_t time)
 {
 	struct fallback_dispatch *dispatch = fallback_dispatch(evdev_dispatch);
+	struct device_coord_rect rect = {0};
 
 	if (which == dispatch->arbitration.state)
 		return;
@@ -1218,6 +1243,12 @@ fallback_interface_toggle_touch(struct evdev_dispatch *evdev_dispatch,
 		libinput_timer_set(&dispatch->arbitration.arbitration_timer,
 				   time + ms2us(90));
 		break;
+	case ARBITRATION_IGNORE_RECT:
+		assert(phys_rect);
+		rect = evdev_phys_rect_to_units(device, phys_rect);
+		cancel_touches(dispatch, device, &rect, time);
+		dispatch->arbitration.rect = rect;
+		break;
 	case ARBITRATION_IGNORE_ALL:
 		libinput_timer_cancel(&dispatch->arbitration.arbitration_timer);
 		fallback_return_to_neutral_state(dispatch, device);
@@ -1421,7 +1452,8 @@ struct evdev_dispatch_interface fallback_interface = {
 	.device_suspended = fallback_interface_device_removed, /* treat as remove */
 	.device_resumed = fallback_interface_device_added,   /* treat as add */
 	.post_added = fallback_interface_sync_initial_state,
-	.toggle_touch = fallback_interface_toggle_touch,
+	.touch_arbitration_toggle = fallback_interface_toggle_touch,
+	.touch_arbitration_update_rect = NULL,
 	.get_switch_state = fallback_interface_get_switch_state,
 };
 
diff --git a/src/evdev-fallback.h b/src/evdev-fallback.h
index 58694dcc..f57c4af2 100644
--- a/src/evdev-fallback.h
+++ b/src/evdev-fallback.h
@@ -147,6 +147,7 @@ struct fallback_dispatch {
 	struct {
 		enum evdev_arbitration_state state;
 		bool in_arbitration;
+		struct device_coord_rect rect;
 		struct libinput_timer arbitration_timer;
 	} arbitration;
 };
diff --git a/src/evdev-mt-touchpad.c b/src/evdev-mt-touchpad.c
index 7385ab57..4798111a 100644
--- a/src/evdev-mt-touchpad.c
+++ b/src/evdev-mt-touchpad.c
@@ -2693,6 +2693,7 @@ static void
 tp_interface_toggle_touch(struct evdev_dispatch *dispatch,
 			  struct evdev_device *device,
 			  enum evdev_arbitration_state which,
+			  const struct phys_rect *rect,
 			  uint64_t time)
 {
 	struct tp_dispatch *tp = tp_dispatch(dispatch);
@@ -2702,6 +2703,7 @@ tp_interface_toggle_touch(struct evdev_dispatch *dispatch,
 
 	switch (which) {
 	case ARBITRATION_IGNORE_ALL:
+	case ARBITRATION_IGNORE_RECT:
 		libinput_timer_cancel(&tp->arbitration.arbitration_timer);
 		tp_clear_state(tp);
 		tp->arbitration.state = which;
@@ -2730,7 +2732,8 @@ static struct evdev_dispatch_interface tp_interface = {
 	.device_suspended = tp_interface_device_removed, /* treat as remove */
 	.device_resumed = tp_interface_device_added,   /* treat as add */
 	.post_added = NULL,
-	.toggle_touch = tp_interface_toggle_touch,
+	.touch_arbitration_toggle = tp_interface_toggle_touch,
+	.touch_arbitration_update_rect = NULL,
 	.get_switch_state = NULL,
 };
 
diff --git a/src/evdev-tablet-pad.c b/src/evdev-tablet-pad.c
index b3b374dc..f1cbc4a4 100644
--- a/src/evdev-tablet-pad.c
+++ b/src/evdev-tablet-pad.c
@@ -518,7 +518,8 @@ static struct evdev_dispatch_interface pad_interface = {
 	.device_suspended = NULL,
 	.device_resumed = NULL,
 	.post_added = NULL,
-	.toggle_touch = NULL,
+	.touch_arbitration_toggle = NULL,
+	.touch_arbitration_update_rect = NULL,
 	.get_switch_state = NULL,
 };
 
diff --git a/src/evdev-tablet.c b/src/evdev-tablet.c
index 6d177e18..e94fad53 100644
--- a/src/evdev-tablet.c
+++ b/src/evdev-tablet.c
@@ -1634,11 +1634,12 @@ tablet_set_touch_device_enabled(struct evdev_device *touch_device,
 		which = ARBITRATION_IGNORE_ALL;
 
 	dispatch = touch_device->dispatch;
-	if (dispatch->interface->toggle_touch)
-		dispatch->interface->toggle_touch(dispatch,
-						  touch_device,
-						  which,
-						  time);
+	if (dispatch->interface->touch_arbitration_toggle)
+		dispatch->interface->touch_arbitration_toggle(dispatch,
+							      touch_device,
+							      which,
+							      NULL,
+							      time);
 }
 
 static inline void
@@ -1941,7 +1942,8 @@ static struct evdev_dispatch_interface tablet_interface = {
 	.device_suspended = NULL,
 	.device_resumed = NULL,
 	.post_added = tablet_check_initial_proximity,
-	.toggle_touch = NULL,
+	.touch_arbitration_toggle = NULL,
+	.touch_arbitration_update_rect = NULL,
 	.get_switch_state = NULL,
 };
 
diff --git a/src/evdev.h b/src/evdev.h
index e983fb1d..34ee64de 100644
--- a/src/evdev.h
+++ b/src/evdev.h
@@ -147,6 +147,7 @@ enum evdev_debounce_state {
 enum evdev_arbitration_state {
 	ARBITRATION_NOT_ACTIVE,
 	ARBITRATION_IGNORE_ALL,
+	ARBITRATION_IGNORE_RECT,
 };
 
 struct evdev_device {
@@ -303,11 +304,22 @@ struct evdev_dispatch_interface {
 			   struct evdev_dispatch *dispatch);
 
 	/* For touch arbitration, called on the device that should
-	 * enable/disable touch capabilities */
-	void (*toggle_touch)(struct evdev_dispatch *dispatch,
-			     struct evdev_device *device,
-			     enum evdev_arbitration_state which,
-			     uint64_t now);
+	 * enable/disable touch capabilities.
+	 */
+	void (*touch_arbitration_toggle)(struct evdev_dispatch *dispatch,
+					 struct evdev_device *device,
+					 enum evdev_arbitration_state which,
+					 const struct phys_rect *rect, /* may be NULL */
+					 uint64_t now);
+
+	/* Called when touch arbitration is on, updates the area where touch
+	 * arbitration should apply.
+	 */
+	void (*touch_arbitration_update_rect)(struct evdev_dispatch *dispatch,
+					      struct evdev_device *device,
+					      const struct phys_rect *rect,
+					      uint64_t now);
+
 
 	/* Return the state of the given switch */
 	enum libinput_switch_state
@@ -880,6 +892,33 @@ evdev_device_mm_to_units(const struct evdev_device *device,
 	return units;
 }
 
+static inline struct device_coord_rect
+evdev_phys_rect_to_units(const struct evdev_device *device,
+			 const struct phys_rect *mm)
+{
+	struct device_coord_rect units = {0};
+	const struct input_absinfo *absx, *absy;
+
+	if (device->abs.absinfo_x == NULL ||
+	    device->abs.absinfo_y == NULL) {
+		log_bug_libinput(evdev_libinput_context(device),
+				 "%s: is not an abs device\n",
+				 device->devname);
+		return units;
+	}
+
+	absx = device->abs.absinfo_x;
+	absy = device->abs.absinfo_y;
+
+	units.x = mm->x * absx->resolution + absx->minimum;
+	units.y = mm->y * absy->resolution + absy->minimum;
+	units.w = mm->w * absx->resolution;
+	units.h = mm->h * absy->resolution;
+
+	return units;
+}
+
+
 static inline void
 evdev_device_init_abs_range_warnings(struct evdev_device *device)
 {
diff --git a/src/libinput-private.h b/src/libinput-private.h
index ad92cde8..c0234a5b 100644
--- a/src/libinput-private.h
+++ b/src/libinput-private.h
@@ -95,6 +95,18 @@ struct phys_coords {
 	double y;
 };
 
+/* A rectangle in mm, x/y is the top-left corner */
+struct phys_rect {
+	double x, y;
+	double w, h;
+};
+
+/* A rectangle in device coordinates, x/y is the top-left corner */
+struct device_coord_rect {
+	int x, y;
+	int w, h;
+};
+
 /* A pair of tilt flags */
 struct wheel_tilt_flags {
 	bool vertical, horizontal;
@@ -810,4 +822,19 @@ device_float_get_direction(const struct device_float_coords coords)
 {
 	return xy_get_direction(coords.x, coords.y);
 }
+
+/**
+ * Returns true if the point is within the given rectangle, including the
+ * left edge but excluding the right edge.
+ */
+static inline bool
+point_in_rect(const struct device_coords *point,
+	      const struct device_coord_rect *rect)
+{
+	return (point->x >= rect->x &&
+		point->x < rect->x + rect->w &&
+		point->y >= rect->y &&
+		point->y < rect->y + rect->h);
+}
+
 #endif /* LIBINPUT_PRIVATE_H */