diff --git a/README.new b/README.new
index f71415218..aacdc4790 100644
--- a/README.new
+++ b/README.new
@@ -195,3 +195,5 @@ Lmod 8.7+
             * Removed MRC:__marged_hiddenT, MRC:__marged_forbiddenT and MRC:__mergedAlias2modT
             * Issue #731: Support for env. var. LMOD_SHOW_HIDDEN
 	    * Issue #739: Make tcl files have "spider" as mode matching when Lmod is in spider mode.
+   (8.7.55) * Patch #737: A better test for spaces in front of #
+   
diff --git a/rt/deprecation/etc/admin.list b/rt/deprecation/etc/admin.list
index 9d04f4c50..ea5615779 100644
--- a/rt/deprecation/etc/admin.list
+++ b/rt/deprecation/etc/admin.list
@@ -2,7 +2,7 @@
 #  value
 #
 #  key2: value ..
-
+    # a comment 
 
 gcc/4.2.3:  This is old and you should not be using it.
 
diff --git a/src/utils.lua b/src/utils.lua
index b9ccfbc6c..47ac027c6 100644
--- a/src/utils.lua
+++ b/src/utils.lua
@@ -418,8 +418,8 @@ function readAdmin()
 
       for v in whole:split("\n") do
          repeat
-            v = v:gsub("%s+","")
-            if (v:sub(1,1) == "#") then
+            v = v:gsub("^%s+$","")
+            if (v:find("^%s*#")) then
                -- ignore this comment line
                break