Index: java/client/org/apache/derby/client/am/Connection.java
===================================================================
--- java/client/org/apache/derby/client/am/Connection.java	(revision 472430)
+++ java/client/org/apache/derby/client/am/Connection.java	(working copy)
@@ -945,8 +945,13 @@
                                 java.sql.ResultSet.CONCUR_READ_ONLY,
                                 holdability());
             }
+
             setTransactionIsolationStmt.executeUpdate("SET CURRENT ISOLATION = " + levelString);
 
+            // The server has now implicitely committed the
+            // transaction so we have to clean up locally.
+            completeLocalCommit();
+
             isolation_ = level;
         }
         catch ( SqlException se )