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We consider the problem of bringing a distributed system to a consistent state after transient failures. We address the two components of this problem by describing a distributed algorithm to create consistent checkpoints, as well as a rollback-recovery algorithm to recover the system to a consistent state. In contrast to previous algorithms, they tolerate failures that occur during their executions. Furthermore, when a process takes a checkpoint, a minimal number of additional processes are forced to take checkpoints. Similarly, when a process rolls back and restarts after a failure, a minimal number of additional processes are forced to roll back with it. Our algorithms require each process to store at most two checkpoints in stable storage. This storage requirement is shown to be minimal under general assumptions.