diff --git a/frappe/commands/site.py b/frappe/commands/site.py
index 2b37af0f2c..4a98a2307f 100755
--- a/frappe/commands/site.py
+++ b/frappe/commands/site.py
@@ -416,6 +416,7 @@ def _set_limits(context, site, limits):
 		site = get_site(context)
 
 	with frappe.init_site(site):
+		frappe.connect()
 		new_limits = {}
 		for limit, value in limits:
 			if limit not in ('emails', 'space', 'users', 'email_group',
diff --git a/frappe/limits.py b/frappe/limits.py
index 90efaca935..65fd735673 100755
--- a/frappe/limits.py
+++ b/frappe/limits.py
@@ -4,7 +4,7 @@ from frappe import _
 from frappe.utils import now_datetime, getdate, flt, cint, get_fullname
 from frappe.installer import update_site_config
 from frappe.utils.data import formatdate
-from frappe.utils.user import get_enabled_system_users
+from frappe.utils.user import get_enabled_system_users, disable_users
 import os, subprocess, urlparse, urllib
 
 class SiteExpiredError(frappe.ValidationError):
@@ -149,6 +149,7 @@ def update_limits(limits_dict):
 	limits = get_limits()
 	limits.update(limits_dict)
 	update_site_config("limits", limits, validate=False)
+	disable_users(limits)
 	frappe.local.conf.limits = limits
 
 def clear_limit(key):
diff --git a/frappe/utils/user.py b/frappe/utils/user.py
index 15367f988e..f8209ca1d0 100755
--- a/frappe/utils/user.py
+++ b/frappe/utils/user.py
@@ -308,4 +308,19 @@ def get_users():
 
 def set_last_active_to_now(user):
 	from frappe.utils import now_datetime
-	frappe.db.set_value("User", user, "last_active", now_datetime())
\ No newline at end of file
+	frappe.db.set_value("User", user, "last_active", now_datetime())
+
+def disable_users(limits=None):
+	if not limits:
+		return
+
+	if limits.get('users'):
+		active_users =  frappe.db.sql_list("""select name from tabUser
+			where name not in ('Administrator', 'Guest') and user_type = 'System User' and enabled=1
+			order by creation desc""")
+
+		if len(active_users) > limits.get('users'):
+			for user in active_users[: -limits.get('users')]:
+				frappe.db.set_value("User", user, 'enabled', 0)
+
+	frappe.db.commit()