WREXHAM'S five-game unbeaten run in League Two came to an end following a 1-0 defeat against Stockport County at Edgeley Park.
The teams have become rivals in recent years and it was the Hatters who had bragging rights after inflicting a third league defeat of the season on Phil Parkinson's outfit.
It was a disappointing performance by the Reds for large parts as Stockport had a host of chances and could have won by a bigger margin.
Wrexham remain third in the table but they lost ground on leaders Wycombe Wanderers and second placed Birmingham City whose games this weekend have been postponed due to international call-ups.
Parkinson rang the changes for the EFL Trophy game with Port Vale in midweek but welcomed back his regulars at Stockport.
The Reds boss made two changes from the side that secured a hard-fought 1-0 win at home to Mansfield Town in the last league game the previous weekend but there was a notable absentee.
It emerged that goalkeeper Arthur Okonkwo, who kept eight clean sheets in the opening 14 league matches, suffered a broken wrist in the victory over the Stags so Callum Burton came into the side.
There was also a full debut for striker Jon Dadi Bodvarsson who took over from Paul Mullin in attack.
Wrexham made a lively start and Bodvarsson's overhead kick in the area was gathered by keeper Ben Hinchliffe.
With the Reds on the front foot, two Stockport players - Macauley Southam-Hales and Fraser Horsfall - were shown yellow cards in the opening five minutes following late challenges.
The Hatters began to come more into the game and an acrobatic effort from Kyle Wootton drifted wide.
Although Stockport were now seeing a lot of the ball, Louis Barrie was the latest home player to be booked and Elliot Lee's free-kick was headed well wide by Dan Scarr.
However, Stockport took the lead in the 24th minute.
A shot was blocked in the area and the ball came back out to Louie Barry whose curling effort from 20 yards beat Burton.
Buoyed by the goal, Stockport continued to put the pressure on and Callum Connolly's deep cross was tipped over the bar by Burton while Tom O'Connor didn't deal with a ball over the top, Will Collar kept the ball in play and his shot was deflected behind following Scarr's vital block.
The corner came in and Burton made a brilliant double save, keeping out Collar's header and Horsfall's follow-up from close range.
It was all Stockport who were winning all the second balls and Ollie Norwood only just cleared the bar with a volley while Burton was quick off his line to deny Ryan Rydel.
Pye headed wide for Stockport and Wrexham were relieved to be only one-goal down at the interval.
The Hatters were back on the front foot when the second half kicked off and Pye headed over from Norwood's corner.
Wrexham finally had a sight of goal but Borvarsson's effort fell wide from Ryan Barnett's cross.
Stockport went quickly back on the attack and Burton pulled off a brilliant save to thwart Barry who darted into the area.
The Reds were being put under sustained pressure and Southam-Hales' shot was deflected behind for a corner.
Parkinson made a triple change after 62 minutes with Ollie Rathbone, Mullin and Eoghan O'Connell coming on for Cannon, Bodvarsson and Scarr.
There was an improvement from Wrexham and after Barnett's cross was tipped behind by Hinchliffe, the goalkeeper had to punch Lee's corner off his line.
But Stockport were creating good chances and Kyle Wootton latched onto a through-ball and brought another superb save out of Burton.
However, Wrexham almost levelled when James McClean sent in a teasing cross and Lee's header went inches wide.
With Stockport being pushed back and put under pressure, Wrexham saw Barnett's drive saved by Hinchliffe.
Stockport should have made it 2-0 late on but Burton made another one on one save to prevent Tanto Olaofe from scoring and Jayden Fevrier was also denied by the Reds' keeper but Stockport celebrated victory.
Stockport County (3-5-2): Hinchliffe; Connolly, Horsfall, Pye; Southam-Hales (Fevrier 82), Collar, Norwood (Bailey 82), Bate, Rydel (Adaramola 82); Wooton, Barry (Olaofe 74). Subs not used: Addal, Hughes, Fiorini.
Wrexham (3-5-2): Burton; Cleworth, Scarr (O'Connell 62), O'Connor; Barnett, Cannon (Rathbone 62), Dobson (James 85), Lee, McClean; Palmer (Faal 73), Bodvarsson (Mullin 62). Subs not used: Howard, O'Connell, Revan.
Attendance: 10,327.
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