diff --git a/Doc/library/packaging.util.rst b/Doc/library/packaging.util.rst
index ae96d87..2b3103c 100644
--- a/Doc/library/packaging.util.rst
+++ b/Doc/library/packaging.util.rst
@@ -116,7 +116,6 @@
    values are ``n``, ``no``, ``f``, ``false``, ``off`` and ``0``.  Raises
    :exc:`ValueError` if *val* is anything else.
 
-.. TODO Add :term: markup to bytecode when merging into the stdlib
 
 .. function:: byte_compile(py_files[, optimize=0, force=0, prefix=None, base_dir=None, verbose=1, dry_run=0, direct=None])
 
@@ -134,7 +133,7 @@
 
    If *force* is true, all files are recompiled regardless of timestamps.
 
-   The source filename encoded in each bytecode file defaults to the filenames
+   The source filename encoded in each :term:`bytecode` file defaults to the filenames
    listed in *py_files*; you can modify these with *prefix* and *basedir*.
    *prefix* is a string that will be stripped off of each source filename, and
    *base_dir* is a directory name that will be prepended (after *prefix* is
@@ -150,3 +149,6 @@
    figure out to use direct compilation or not (see the source for details).
    The *direct* flag is used by the script generated in indirect mode; unless
    you know what you're doing, leave it set to ``None``.
+
+   This function is independent from the running Python's :option:`-O` or
+   :option:`-B` options; it is fully controlled by the parameters passed in.
diff --git a/Doc/packaging/builtdist.rst b/Doc/packaging/builtdist.rst
index b1e5e93..1d9a349 100644
--- a/Doc/packaging/builtdist.rst
+++ b/Doc/packaging/builtdist.rst
@@ -164,9 +164,7 @@
 have to create a separate installer for every Python version you want to
 support.
 
-.. TODO Add :term: markup to bytecode when merging into the stdlib
-
-The installer will try to compile pure modules into bytecode after installation
+The installer will try to compile pure modules into :term:`bytecode` after installation
 on the target system in normal and optimizing mode.  If you don't want this to
 happen for some reason, you can run the :command:`bdist_wininst` command with
 the :option:`--no-target-compile` and/or the :option:`--no-target-optimize`
diff --git a/Doc/packaging/commandref.rst b/Doc/packaging/commandref.rst
index 0ec7505..2165b56 100644
--- a/Doc/packaging/commandref.rst
+++ b/Doc/packaging/commandref.rst
@@ -115,7 +115,24 @@
 -------------------
 
 Build the Python modules (just copy them to the build directory) and
-byte-compile them to .pyc files.
+:term:`byte-compile <bytecode>` them to :file:`.pyc` and/or :file:`.pyo` files.
+
+The byte compilation is controlled by two sets of options:
+
+- ``--compile`` and ``--no-compile`` are used to control the creation of
+  :file:`.pyc` files; the default is ``--no-compile``.
+
+- ``--optimize N`` (or ``-ON``) is used to control the creation of :file:`.pyo`
+  files: ``-O1`` turns on basic optimizations, ``-O2`` also discards docstrings,
+  ``-O0`` does not create :file:`.pyo` files; the default is ``-O0``.
+
+You can mix and match these options: for example, ``--no-compile --optimize 2``
+will create :file:`.pyo` files but no :file:`.pyc` files.
+
+.. XXX these option roles do not work
+
+Calling Python with :option:`-O` or :option:`-B` does not control the creation
+of bytecode files, only the options described above do.
 
 
 :command:`build_scripts`
@@ -341,7 +358,14 @@
 :command:`install_lib`
 ----------------------
 
-Install C library files.
+Install all modules (extensions and pure Python).
+
+.. XXX what about C libraries created with build_clib?
+
+Similarly to ``build_py``, there are options to control the compilation of
+Python code to :term:`bytecode` files (see above).  By default, :file:`.pyc`
+files will be created (``--compile``) and :file:`.pyo` files will not
+(``--optimize 0``).
 
 
 :command:`install_scripts`
diff --git a/Doc/using/cmdline.rst b/Doc/using/cmdline.rst
index f7bd92b..bc38542 100644
--- a/Doc/using/cmdline.rst
+++ b/Doc/using/cmdline.rst
@@ -455,7 +455,8 @@
 .. envvar:: PYTHONDONTWRITEBYTECODE
 
    If this is set, Python won't try to write ``.pyc`` or ``.pyo`` files on the
-   import of source modules.
+   import of source modules.  This is equivalent to specifying the :option:`-B`
+   option.
 
 
 .. envvar:: PYTHONIOENCODING
diff --git a/Lib/_pyio.py b/Lib/_pyio.py
index 39c1717..fec1c6f 100644
--- a/Lib/_pyio.py
+++ b/Lib/_pyio.py
@@ -1455,7 +1455,7 @@
     enabled.  With this enabled, on input, the lines endings '\n', '\r',
     or '\r\n' are translated to '\n' before being returned to the
     caller. Conversely, on output, '\n' is translated to the system
-    default line seperator, os.linesep. If newline is any other of its
+    default line separator, os.linesep. If newline is any other of its
     legal values, that newline becomes the newline when the file is read
     and it is returned untranslated. On output, '\n' is converted to the
     newline.
diff --git a/Lib/distutils/command/build_py.py b/Lib/distutils/command/build_py.py
index 9e2473f..1371b3d 100644
--- a/Lib/distutils/command/build_py.py
+++ b/Lib/distutils/command/build_py.py
@@ -2,8 +2,9 @@
 
 Implements the Distutils 'build_py' command."""
 
-import sys, os
+import os
 import imp
+import sys
 from glob import glob
 
 from distutils.core import Command
@@ -311,9 +312,11 @@
             outputs.append(filename)
             if include_bytecode:
                 if self.compile:
-                    outputs.append(imp.cache_from_source(filename, True))
+                    outputs.append(imp.cache_from_source(filename,
+                                                         debug_override=True))
                 if self.optimize > 0:
-                    outputs.append(imp.cache_from_source(filename, False))
+                    outputs.append(imp.cache_from_source(filename,
+                                                         debug_override=False))
 
         outputs += [
             os.path.join(build_dir, filename)
diff --git a/Lib/distutils/command/install_lib.py b/Lib/distutils/command/install_lib.py
index 8a6bc7d..15c08f1 100644
--- a/Lib/distutils/command/install_lib.py
+++ b/Lib/distutils/command/install_lib.py
@@ -165,9 +165,11 @@
             if ext != PYTHON_SOURCE_EXTENSION:
                 continue
             if self.compile:
-                bytecode_files.append(imp.cache_from_source(py_file, True))
+                bytecode_files.append(imp.cache_from_source(
+                    py_file, debug_override=True))
             if self.optimize > 0:
-                bytecode_files.append(imp.cache_from_source(py_file, False))
+                bytecode_files.append(imp.cache_from_source(
+                    py_file, debug_override=False))
 
         return bytecode_files
 
diff --git a/Lib/distutils/tests/test_bdist_dumb.py b/Lib/distutils/tests/test_bdist_dumb.py
index 55ba58d..1037d82 100644
--- a/Lib/distutils/tests/test_bdist_dumb.py
+++ b/Lib/distutils/tests/test_bdist_dumb.py
@@ -1,8 +1,10 @@
 """Tests for distutils.command.bdist_dumb."""
 
-import unittest
-import sys
 import os
+import imp
+import sys
+import zipfile
+import unittest
 from test.support import run_unittest
 
 from distutils.core import Distribution
@@ -72,15 +74,24 @@
 
         # see what we have
         dist_created = os.listdir(os.path.join(pkg_dir, 'dist'))
-        base = "%s.%s" % (dist.get_fullname(), cmd.plat_name)
+        base = "%s.%s.zip" % (dist.get_fullname(), cmd.plat_name)
         if os.name == 'os2':
             base = base.replace(':', '-')
 
-        wanted = ['%s.zip' % base]
-        self.assertEqual(dist_created, wanted)
+        self.assertEqual(dist_created, [base])
 
         # now let's check what we have in the zip file
-        # XXX to be done
+        fp = zipfile.ZipFile(os.path.join('dist', base))
+        try:
+            contents = fp.namelist()
+        finally:
+            fp.close()
+
+        contents = sorted(os.path.basename(fn) for fn in contents)
+        wanted = ['foo-0.1-py%s.%s.egg-info' % sys.version_info[:2],
+                  'foo.%s.pyc' % imp.get_tag(),
+                  'foo.py']
+        self.assertEqual(contents, sorted(wanted))
 
 def test_suite():
     return unittest.makeSuite(BuildDumbTestCase)
diff --git a/Lib/distutils/tests/test_build_py.py b/Lib/distutils/tests/test_build_py.py
index 80316ad..e416edd 100644
--- a/Lib/distutils/tests/test_build_py.py
+++ b/Lib/distutils/tests/test_build_py.py
@@ -2,7 +2,6 @@
 
 import os
 import sys
-import io
 import imp
 import unittest
 
@@ -54,7 +53,6 @@
         # This makes sure the list of outputs includes byte-compiled
         # files for Python modules but not for package data files
         # (there shouldn't *be* byte-code files for those!).
-        #
         self.assertEqual(len(cmd.get_outputs()), 3)
         pkgdest = os.path.join(destination, "pkg")
         files = os.listdir(pkgdest)
@@ -64,15 +62,11 @@
         if sys.dont_write_bytecode:
             self.assertFalse(os.path.exists(pycache_dir))
         else:
-            # XXX even with -O, distutils writes pyc, not pyo; bug?
             pyc_files = os.listdir(pycache_dir)
             self.assertIn("__init__.%s.pyc" % imp.get_tag(), pyc_files)
 
     def test_empty_package_dir(self):
-        # See SF 1668596/1720897.
-        cwd = os.getcwd()
-
-        # create the distribution files.
+        # See bugs #1668596/#1720897
         sources = self.mkdtemp()
         open(os.path.join(sources, "__init__.py"), "w").close()
 
@@ -81,30 +75,55 @@
         open(os.path.join(testdir, "testfile"), "w").close()
 
         os.chdir(sources)
-        old_stdout = sys.stdout
-        sys.stdout = io.StringIO()
+        dist = Distribution({"packages": ["pkg"],
+                             "package_dir": {"pkg": ""},
+                             "package_data": {"pkg": ["doc/*"]}})
+        # script_name need not exist, it just need to be initialized
+        dist.script_name = os.path.join(sources, "setup.py")
+        dist.script_args = ["build"]
+        dist.parse_command_line()
 
         try:
-            dist = Distribution({"packages": ["pkg"],
-                                 "package_dir": {"pkg": ""},
-                                 "package_data": {"pkg": ["doc/*"]}})
-            # script_name need not exist, it just need to be initialized
-            dist.script_name = os.path.join(sources, "setup.py")
-            dist.script_args = ["build"]
-            dist.parse_command_line()
+            dist.run_commands()
+        except DistutilsFileError:
+            self.fail("failed package_data test when package_dir is ''")
 
-            try:
-                dist.run_commands()
-            except DistutilsFileError:
-                self.fail("failed package_data test when package_dir is ''")
-        finally:
-            # Restore state.
-            os.chdir(cwd)
-            sys.stdout = old_stdout
+    @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
+    def test_byte_compile(self):
+        project_dir, dist = self.create_dist(py_modules=['boiledeggs'])
+        os.chdir(project_dir)
+        self.write_file('boiledeggs.py', 'import antigravity')
+        cmd = build_py(dist)
+        cmd.compile = 1
+        cmd.build_lib = 'here'
+        cmd.finalize_options()
+        cmd.run()
+
+        found = os.listdir(cmd.build_lib)
+        self.assertEqual(sorted(found), ['__pycache__', 'boiledeggs.py'])
+        found = os.listdir(os.path.join(cmd.build_lib, '__pycache__'))
+        self.assertEqual(found, ['boiledeggs.%s.pyc' % imp.get_tag()])
+
+    @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
+    def test_byte_compile_optimized(self):
+        project_dir, dist = self.create_dist(py_modules=['boiledeggs'])
+        os.chdir(project_dir)
+        self.write_file('boiledeggs.py', 'import antigravity')
+        cmd = build_py(dist)
+        cmd.compile = 0
+        cmd.optimize = 1
+        cmd.build_lib = 'here'
+        cmd.finalize_options()
+        cmd.run()
+
+        found = os.listdir(cmd.build_lib)
+        self.assertEqual(sorted(found), ['__pycache__', 'boiledeggs.py'])
+        found = os.listdir(os.path.join(cmd.build_lib, '__pycache__'))
+        self.assertEqual(sorted(found), ['boiledeggs.%s.pyo' % imp.get_tag()])
 
     def test_dont_write_bytecode(self):
         # makes sure byte_compile is not used
-        pkg_dir, dist = self.create_dist()
+        dist = self.create_dist()[1]
         cmd = build_py(dist)
         cmd.compile = 1
         cmd.optimize = 1
@@ -118,6 +137,7 @@
 
         self.assertIn('byte-compiling is disabled', self.logs[0][1])
 
+
 def test_suite():
     return unittest.makeSuite(BuildPyTestCase)
 
diff --git a/Lib/distutils/tests/test_install.py b/Lib/distutils/tests/test_install.py
index dfc46b1..cb2e1f2 100644
--- a/Lib/distutils/tests/test_install.py
+++ b/Lib/distutils/tests/test_install.py
@@ -1,6 +1,7 @@
 """Tests for distutils.command.install."""
 
 import os
+import imp
 import sys
 import unittest
 import site
@@ -67,10 +68,7 @@
         check_path(cmd.install_data, destination)
 
     def test_user_site(self):
-        # site.USER_SITE was introduced in 2.6
-        if sys.version < '2.6':
-            return
-
+        # test install with --user
         # preparing the environment for the test
         self.old_user_base = site.USER_BASE
         self.old_user_site = site.USER_SITE
@@ -87,19 +85,17 @@
         self.old_expand = os.path.expanduser
         os.path.expanduser = _expanduser
 
-        try:
-            # this is the actual test
-            self._test_user_site()
-        finally:
+        def cleanup():
             site.USER_BASE = self.old_user_base
             site.USER_SITE = self.old_user_site
             install_module.USER_BASE = self.old_user_base
             install_module.USER_SITE = self.old_user_site
             os.path.expanduser = self.old_expand
 
-    def _test_user_site(self):
+        self.addCleanup(cleanup)
+
         for key in ('nt_user', 'unix_user', 'os2_home'):
-            self.assertTrue(key in INSTALL_SCHEMES)
+            self.assertIn(key, INSTALL_SCHEMES)
 
         dist = Distribution({'name': 'xx'})
         cmd = install(dist)
@@ -107,14 +103,14 @@
         # making sure the user option is there
         options = [name for name, short, lable in
                    cmd.user_options]
-        self.assertTrue('user' in options)
+        self.assertIn('user', options)
 
         # setting a value
         cmd.user = 1
 
         # user base and site shouldn't be created yet
-        self.assertTrue(not os.path.exists(self.user_base))
-        self.assertTrue(not os.path.exists(self.user_site))
+        self.assertFalse(os.path.exists(self.user_base))
+        self.assertFalse(os.path.exists(self.user_site))
 
         # let's run finalize
         cmd.ensure_finalized()
@@ -123,8 +119,8 @@
         self.assertTrue(os.path.exists(self.user_base))
         self.assertTrue(os.path.exists(self.user_site))
 
-        self.assertTrue('userbase' in cmd.config_vars)
-        self.assertTrue('usersite' in cmd.config_vars)
+        self.assertIn('userbase', cmd.config_vars)
+        self.assertIn('usersite', cmd.config_vars)
 
     def test_handle_extra_path(self):
         dist = Distribution({'name': 'xx', 'extra_path': 'path,dirs'})
@@ -177,15 +173,16 @@
 
     def test_record(self):
         install_dir = self.mkdtemp()
-        project_dir, dist = self.create_dist(scripts=['hello'])
-        self.addCleanup(os.chdir, os.getcwd())
+        project_dir, dist = self.create_dist(py_modules=['hello'],
+                                             scripts=['sayhi'])
         os.chdir(project_dir)
-        self.write_file('hello', "print('o hai')")
+        self.write_file('hello.py', "def main(): print('o hai')")
+        self.write_file('sayhi', 'from hello import main; main()')
 
         cmd = install(dist)
         dist.command_obj['install'] = cmd
         cmd.root = install_dir
-        cmd.record = os.path.join(project_dir, 'RECORD')
+        cmd.record = os.path.join(project_dir, 'filelist')
         cmd.ensure_finalized()
         cmd.run()
 
@@ -196,7 +193,7 @@
             f.close()
 
         found = [os.path.basename(line) for line in content.splitlines()]
-        expected = ['hello',
+        expected = ['hello.py', 'hello.%s.pyc' % imp.get_tag(), 'sayhi',
                     'UNKNOWN-0.0.0-py%s.%s.egg-info' % sys.version_info[:2]]
         self.assertEqual(found, expected)
 
@@ -204,7 +201,6 @@
         install_dir = self.mkdtemp()
         project_dir, dist = self.create_dist(ext_modules=[
             Extension('xx', ['xxmodule.c'])])
-        self.addCleanup(os.chdir, os.getcwd())
         os.chdir(project_dir)
         support.copy_xxmodule_c(project_dir)
 
@@ -216,7 +212,7 @@
         dist.command_obj['install'] = cmd
         dist.command_obj['build_ext'] = buildextcmd
         cmd.root = install_dir
-        cmd.record = os.path.join(project_dir, 'RECORD')
+        cmd.record = os.path.join(project_dir, 'filelist')
         cmd.ensure_finalized()
         cmd.run()
 
@@ -242,6 +238,7 @@
             install_module.DEBUG = False
         self.assertTrue(len(self.logs) > old_logs_len)
 
+
 def test_suite():
     return unittest.makeSuite(InstallTestCase)
 
diff --git a/Lib/distutils/tests/test_install_lib.py b/Lib/distutils/tests/test_install_lib.py
index b42b03b..2bd4dc6 100644
--- a/Lib/distutils/tests/test_install_lib.py
+++ b/Lib/distutils/tests/test_install_lib.py
@@ -10,13 +10,14 @@
 from distutils.errors import DistutilsOptionError
 from test.support import run_unittest
 
+
 class InstallLibTestCase(support.TempdirManager,
                          support.LoggingSilencer,
                          support.EnvironGuard,
                          unittest.TestCase):
 
     def test_finalize_options(self):
-        pkg_dir, dist = self.create_dist()
+        dist = self.create_dist()[1]
         cmd = install_lib(dist)
 
         cmd.finalize_options()
@@ -35,56 +36,62 @@
 
     @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
     def test_byte_compile(self):
-        pkg_dir, dist = self.create_dist()
-        os.chdir(pkg_dir)
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
         cmd = install_lib(dist)
         cmd.compile = cmd.optimize = 1
 
-        f = os.path.join(pkg_dir, 'foo.py')
+        f = os.path.join(project_dir, 'foo.py')
         self.write_file(f, '# python file')
         cmd.byte_compile([f])
-        pyc_file = imp.cache_from_source('foo.py')
+        pyc_file = imp.cache_from_source('foo.py', debug_override=True)
         pyo_file = imp.cache_from_source('foo.py', debug_override=False)
         self.assertTrue(os.path.exists(pyc_file))
         self.assertTrue(os.path.exists(pyo_file))
 
     def test_get_outputs(self):
-        pkg_dir, dist = self.create_dist()
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
+        os.mkdir('spam')
         cmd = install_lib(dist)
 
         # setting up a dist environment
         cmd.compile = cmd.optimize = 1
-        cmd.install_dir = pkg_dir
-        f = os.path.join(pkg_dir, 'foo.py')
-        self.write_file(f, '# python file')
-        cmd.distribution.py_modules = [pkg_dir]
+        cmd.install_dir = self.mkdtemp()
+        f = os.path.join(project_dir, 'spam', '__init__.py')
+        self.write_file(f, '# python package')
         cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
-        cmd.distribution.packages = [pkg_dir]
+        cmd.distribution.packages = ['spam']
         cmd.distribution.script_name = 'setup.py'
 
-        # get_output should return 4 elements
-        self.assertTrue(len(cmd.get_outputs()) >= 2)
+        # get_outputs should return 4 elements: spam/__init__.py, .pyc and
+        # .pyo, foo.import-tag-abiflags.so / foo.pyd
+        outputs = cmd.get_outputs()
+        self.assertEqual(len(outputs), 4, outputs)
 
     def test_get_inputs(self):
-        pkg_dir, dist = self.create_dist()
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
+        os.mkdir('spam')
         cmd = install_lib(dist)
 
         # setting up a dist environment
         cmd.compile = cmd.optimize = 1
-        cmd.install_dir = pkg_dir
-        f = os.path.join(pkg_dir, 'foo.py')
-        self.write_file(f, '# python file')
-        cmd.distribution.py_modules = [pkg_dir]
+        cmd.install_dir = self.mkdtemp()
+        f = os.path.join(project_dir, 'spam', '__init__.py')
+        self.write_file(f, '# python package')
         cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
-        cmd.distribution.packages = [pkg_dir]
+        cmd.distribution.packages = ['spam']
         cmd.distribution.script_name = 'setup.py'
 
-        # get_input should return 2 elements
-        self.assertEqual(len(cmd.get_inputs()), 2)
+        # get_inputs should return 2 elements: spam/__init__.py and
+        # foo.import-tag-abiflags.so / foo.pyd
+        inputs = cmd.get_inputs()
+        self.assertEqual(len(inputs), 2, inputs)
 
     def test_dont_write_bytecode(self):
         # makes sure byte_compile is not used
-        pkg_dir, dist = self.create_dist()
+        dist = self.create_dist()[1]
         cmd = install_lib(dist)
         cmd.compile = 1
         cmd.optimize = 1
@@ -98,6 +105,7 @@
 
         self.assertTrue('byte-compiling is disabled' in self.logs[0][1])
 
+
 def test_suite():
     return unittest.makeSuite(InstallLibTestCase)
 
diff --git a/Lib/distutils/tests/test_sdist.py b/Lib/distutils/tests/test_sdist.py
index 529b4ef..d0d16b2 100644
--- a/Lib/distutils/tests/test_sdist.py
+++ b/Lib/distutils/tests/test_sdist.py
@@ -288,7 +288,7 @@
     # the following tests make sure there is a nice error message instead
     # of a traceback when parsing an invalid manifest template
 
-    def _test_template(self, content):
+    def _check_template(self, content):
         dist, cmd = self.get_cmd()
         os.chdir(self.tmp_dir)
         self.write_file('MANIFEST.in', content)
@@ -299,17 +299,17 @@
         self.assertEqual(len(warnings), 1)
 
     def test_invalid_template_unknown_command(self):
-        self._test_template('taunt knights *')
+        self._check_template('taunt knights *')
 
     def test_invalid_template_wrong_arguments(self):
         # this manifest command takes one argument
-        self._test_template('prune')
+        self._check_template('prune')
 
     @unittest.skipIf(os.name != 'nt', 'test relevant for Windows only')
     def test_invalid_template_wrong_path(self):
         # on Windows, trailing slashes are not allowed
         # this used to crash instead of raising a warning: #8286
-        self._test_template('include examples/')
+        self._check_template('include examples/')
 
     @unittest.skipUnless(ZLIB_SUPPORT, 'Need zlib support to run')
     def test_get_file_list(self):
diff --git a/Lib/packaging/command/build.py b/Lib/packaging/command/build.py
index 6580fd1..2e5eb8b 100644
--- a/Lib/packaging/command/build.py
+++ b/Lib/packaging/command/build.py
@@ -41,7 +41,7 @@
         ('use-2to3', None,
          "use 2to3 to make source python 3.x compatible"),
         ('convert-2to3-doctests', None,
-         "use 2to3 to convert doctests in seperate text files"),
+         "use 2to3 to convert doctests in separate text files"),
         ('use-2to3-fixers', None,
          "list additional fixers opted for during 2to3 conversion"),
         ]
diff --git a/Lib/packaging/command/build_py.py b/Lib/packaging/command/build_py.py
index e5b10b0..5faae39 100644
--- a/Lib/packaging/command/build_py.py
+++ b/Lib/packaging/command/build_py.py
@@ -2,7 +2,6 @@
 
 import os
 import imp
-import sys
 from glob import glob
 
 from packaging import logger
@@ -14,10 +13,14 @@
 # marking public APIs
 __all__ = ['build_py']
 
+
 class build_py(Command, Mixin2to3):
 
     description = "build pure Python modules (copy to build directory)"
 
+    # The options for controlling byte compilations are two independent sets;
+    # more info in install_lib or the reST docs
+
     user_options = [
         ('build-lib=', 'd', "directory to build (copy) to"),
         ('compile', 'c', "compile .py to .pyc"),
@@ -29,13 +32,14 @@
         ('use-2to3', None,
          "use 2to3 to make source python 3.x compatible"),
         ('convert-2to3-doctests', None,
-         "use 2to3 to convert doctests in seperate text files"),
+         "use 2to3 to convert doctests in separate text files"),
         ('use-2to3-fixers', None,
          "list additional fixers opted for during 2to3 conversion"),
         ]
 
     boolean_options = ['compile', 'force']
-    negative_opt = {'no-compile' : 'compile'}
+
+    negative_opt = {'no-compile': 'compile'}
 
     def initialize_options(self):
         self.build_lib = None
@@ -116,7 +120,7 @@
     def get_data_files(self):
         """Generate list of '(package,src_dir,build_dir,filenames)' tuples.
 
-        Helper function for `finalize_options()`.
+        Helper function for finalize_options.
         """
         data = []
         if not self.packages:
@@ -131,7 +135,7 @@
             # Length of path to strip from found files
             plen = 0
             if src_dir:
-                plen = len(src_dir)+1
+                plen = len(src_dir) + 1
 
             # Strip directory from globbed filenames
             filenames = [
@@ -143,7 +147,7 @@
     def find_data_files(self, package, src_dir):
         """Return filenames for package's data files in 'src_dir'.
 
-        Helper function for `get_data_files()`.
+        Helper function for get_data_files.
         """
         globs = (self.package_data.get('', [])
                  + self.package_data.get(package, []))
@@ -158,7 +162,7 @@
     def build_package_data(self):
         """Copy data files into build directory.
 
-        Helper function for `run()`.
+        Helper function for run.
         """
         # FIXME add tests for this method
         for package, src_dir, build_dir, filenames in self.data_files:
@@ -168,16 +172,17 @@
                 self.mkpath(os.path.dirname(target))
                 outf, copied = self.copy_file(srcfile,
                                target, preserve_mode=False)
-                if copied and srcfile in self.distribution.convert_2to3.doctests:
+                doctests = self.distribution.convert_2to3_doctests
+                if copied and srcfile in doctests:
                     self._doctests_2to3.append(outf)
 
     # XXX - this should be moved to the Distribution class as it is not
     # only needed for build_py. It also has no dependencies on this class.
     def get_package_dir(self, package):
         """Return the directory, relative to the top of the source
-           distribution, where package 'package' should be found
-           (at least according to the 'package_dir' option, if any)."""
-
+        distribution, where package 'package' should be found
+        (at least according to the 'package_dir' option, if any).
+        """
         path = package.split('.')
         if self.package_dir is not None:
             path.insert(0, self.package_dir)
@@ -188,8 +193,7 @@
         return ''
 
     def check_package(self, package, package_dir):
-        """Helper function for `find_package_modules()` and `find_modules()'.
-        """
+        """Helper function for find_package_modules and find_modules."""
         # Empty dir name means current directory, which we can probably
         # assume exists.  Also, os.path.exists and isdir don't know about
         # my "empty string means current dir" convention, so we have to
@@ -209,8 +213,8 @@
             if os.path.isfile(init_py):
                 return init_py
             else:
-                logger.warning(("package init file '%s' not found " +
-                                "(or not a regular file)"), init_py)
+                logger.warning("package init file %r not found "
+                               "(or not a regular file)", init_py)
 
         # Either not in a package at all (__init__.py not expected), or
         # __init__.py doesn't exist -- so don't return the filename.
@@ -218,7 +222,7 @@
 
     def check_module(self, module, module_file):
         if not os.path.isfile(module_file):
-            logger.warning("file %s (for module %s) not found",
+            logger.warning("file %r (for module %r) not found",
                            module_file, module)
             return False
         else:
@@ -239,7 +243,7 @@
                 module = os.path.splitext(os.path.basename(f))[0]
                 modules.append((package, module, f))
             else:
-                logger.debug("excluding %s", setup_script)
+                logger.debug("excluding %r", setup_script)
         return modules
 
     def find_modules(self):
@@ -331,7 +335,8 @@
             outputs.append(filename)
             if include_bytecode:
                 if self.compile:
-                    outputs.append(imp.cache_from_source(filename))
+                    outputs.append(imp.cache_from_source(filename,
+                                                         debug_override=True))
                 if self.optimize > 0:
                     outputs.append(imp.cache_from_source(filename,
                                                          debug_override=False))
@@ -361,7 +366,6 @@
     def build_modules(self):
         modules = self.find_modules()
         for package, module, module_file in modules:
-
             # Now "build" the module -- ie. copy the source file to
             # self.build_lib (the build directory for Python source).
             # (Actually, it gets copied to the directory for this package
@@ -370,7 +374,6 @@
 
     def build_packages(self):
         for package in self.packages:
-
             # Get list of (package, module, module_file) tuples based on
             # scanning the package directory.  'package' is only included
             # in the tuple so that 'find_modules()' and
@@ -390,11 +393,6 @@
                 self.build_module(module, module_file, package)
 
     def byte_compile(self, files):
-        if sys.dont_write_bytecode:
-            logger.warning('%s: byte-compiling is disabled, skipping.',
-                           self.get_command_name())
-            return
-
         from packaging.util import byte_compile  # FIXME use compileall
         prefix = self.build_lib
         if prefix[-1] != os.sep:
@@ -403,7 +401,6 @@
         # XXX this code is essentially the same as the 'byte_compile()
         # method of the "install_lib" command, except for the determination
         # of the 'prefix' string.  Hmmm.
-
         if self.compile:
             byte_compile(files, optimize=0,
                          force=self.force, prefix=prefix, dry_run=self.dry_run)
diff --git a/Lib/packaging/command/install_lib.py b/Lib/packaging/command/install_lib.py
index 558966d..f6c785f 100644
--- a/Lib/packaging/command/install_lib.py
+++ b/Lib/packaging/command/install_lib.py
@@ -2,7 +2,6 @@
 
 import os
 import imp
-import sys
 import logging
 
 from packaging import logger
@@ -11,25 +10,18 @@
 
 
 # Extension for Python source files.
+# XXX dead code?  most of the codebase checks for literal '.py'
 if hasattr(os, 'extsep'):
     PYTHON_SOURCE_EXTENSION = os.extsep + "py"
 else:
     PYTHON_SOURCE_EXTENSION = ".py"
 
+
 class install_lib(Command):
 
     description = "install all modules (extensions and pure Python)"
 
-    # The byte-compilation options are a tad confusing.  Here are the
-    # possible scenarios:
-    #   1) no compilation at all (--no-compile --no-optimize)
-    #   2) compile .pyc only (--compile --no-optimize; default)
-    #   3) compile .pyc and "level 1" .pyo (--compile --optimize)
-    #   4) compile "level 1" .pyo only (--no-compile --optimize)
-    #   5) compile .pyc and "level 2" .pyo (--compile --optimize-more)
-    #   6) compile "level 2" .pyo only (--no-compile --optimize-more)
-    #
-    # The UI for this is two option, 'compile' and 'optimize'.
+    # The options for controlling byte compilations are two independent sets:
     # 'compile' is strictly boolean, and only decides whether to
     # generate .pyc files.  'optimize' is three-way (0, 1, or 2), and
     # decides both whether to generate .pyo files and what level of
@@ -37,7 +29,7 @@
 
     user_options = [
         ('install-dir=', 'd', "directory to install to"),
-        ('build-dir=','b', "build directory (where to install from)"),
+        ('build-dir=', 'b', "build directory (where to install from)"),
         ('force', 'f', "force installation (overwrite existing files)"),
         ('compile', 'c', "compile .py to .pyc [default]"),
         ('no-compile', None, "don't compile .py files"),
@@ -48,7 +40,8 @@
         ]
 
     boolean_options = ['force', 'compile', 'skip-build']
-    negative_opt = {'no-compile' : 'compile'}
+
+    negative_opt = {'no-compile': 'compile'}
 
     def initialize_options(self):
         # let the 'install_dist' command dictate our installation directory
@@ -66,7 +59,8 @@
         self.set_undefined_options('install_dist',
                                    ('build_lib', 'build_dir'),
                                    ('install_lib', 'install_dir'),
-                                   'force', 'compile', 'optimize', 'skip_build')
+                                   'force', 'compile', 'optimize',
+                                   'skip_build')
 
         if self.compile is None:
             self.compile = True
@@ -115,14 +109,6 @@
         return outfiles
 
     def byte_compile(self, files):
-        if sys.dont_write_bytecode:
-            # XXX do we want this?  because a Python runs without bytecode
-            # doesn't mean that the *dists should not contain bytecode
-            #--or does it?
-            logger.warning('%s: byte-compiling is disabled, skipping.',
-                           self.get_command_name())
-            return
-
         from packaging.util import byte_compile  # FIXME use compileall
 
         # Get the "--root" directory supplied to the "install_dist" command,
@@ -138,13 +124,11 @@
         if self.compile:
             byte_compile(files, optimize=0,
                          force=self.force, prefix=install_root,
-                         dry_run=self.dry_run)
+                         verbose=verbose, dry_run=self.dry_run)
         if self.optimize > 0:
             byte_compile(files, optimize=self.optimize,
                          force=self.force, prefix=install_root,
-                         verbose=verbose,
-                         dry_run=self.dry_run)
-
+                         verbose=verbose, dry_run=self.dry_run)
 
     # -- Utility methods -----------------------------------------------
 
@@ -173,14 +157,14 @@
             if ext != PYTHON_SOURCE_EXTENSION:
                 continue
             if self.compile:
-                bytecode_files.append(imp.cache_from_source(py_file))
+                bytecode_files.append(imp.cache_from_source(
+                    py_file, debug_override=True))
             if self.optimize > 0:
                 bytecode_files.append(imp.cache_from_source(
                     py_file, debug_override=False))
 
         return bytecode_files
 
-
     # -- External interface --------------------------------------------
     # (called by outsiders)
 
diff --git a/Lib/packaging/dist.py b/Lib/packaging/dist.py
index 4027d23..49ad4c5 100644
--- a/Lib/packaging/dist.py
+++ b/Lib/packaging/dist.py
@@ -69,7 +69,7 @@
         ('use-2to3', None,
          "use 2to3 to make source python 3.x compatible"),
         ('convert-2to3-doctests', None,
-         "use 2to3 to convert doctests in seperate text files"),
+         "use 2to3 to convert doctests in separate text files"),
         ]
     display_option_names = [x[0].replace('-', '_') for x in display_options]
 
diff --git a/Lib/packaging/errors.py b/Lib/packaging/errors.py
index 8924a2d..8878129 100644
--- a/Lib/packaging/errors.py
+++ b/Lib/packaging/errors.py
@@ -72,10 +72,6 @@
     """Syntax error in a file list template."""
 
 
-class PackagingByteCompileError(PackagingError):
-    """Byte compile error."""
-
-
 class PackagingPyPIError(PackagingError):
     """Any problem occuring during using the indexes."""
 
diff --git a/Lib/packaging/tests/support.py b/Lib/packaging/tests/support.py
index 6e26ea4..66890c9 100644
--- a/Lib/packaging/tests/support.py
+++ b/Lib/packaging/tests/support.py
@@ -53,7 +53,7 @@
     # misc. functions and decorators
     'fake_dec', 'create_distribution', 'copy_xxmodule_c', 'fixup_build_ext',
     # imported from this module for backport purposes
-    'unittest', 'requires_zlib', 'skip_unless_symlink',
+    'unittest', 'requires_zlib', 'skip_2to3_optimize', 'skip_unless_symlink',
 ]
 
 
@@ -357,3 +357,7 @@
 except ImportError:
     skip_unless_symlink = unittest.skip(
         'requires test.support.skip_unless_symlink')
+
+
+skip_2to3_optimize = unittest.skipIf(sys.flags.optimize,
+                                     "2to3 doesn't work under -O")
diff --git a/Lib/packaging/tests/test_command_bdist_dumb.py b/Lib/packaging/tests/test_command_bdist_dumb.py
index 8e2d497..15cf658 100644
--- a/Lib/packaging/tests/test_command_bdist_dumb.py
+++ b/Lib/packaging/tests/test_command_bdist_dumb.py
@@ -1,6 +1,9 @@
 """Tests for distutils.command.bdist_dumb."""
 
 import os
+import imp
+import sys
+import zipfile
 import packaging.util
 
 from packaging.dist import Distribution
@@ -49,15 +52,21 @@
 
         # see what we have
         dist_created = os.listdir(os.path.join(pkg_dir, 'dist'))
-        base = "%s.%s" % (dist.get_fullname(), cmd.plat_name)
+        base = "%s.%s.zip" % (dist.get_fullname(), cmd.plat_name)
         if os.name == 'os2':
             base = base.replace(':', '-')
 
-        wanted = ['%s.zip' % base]
-        self.assertEqual(dist_created, wanted)
+        self.assertEqual(dist_created, [base])
 
         # now let's check what we have in the zip file
-        # XXX to be done
+        with zipfile.ZipFile(os.path.join('dist', base)) as fp:
+            contents = fp.namelist()
+
+        contents = sorted(os.path.basename(fn) for fn in contents)
+        wanted = ['foo.py',
+                  'foo.%s.pyc' % imp.get_tag(),
+                  'METADATA', 'INSTALLER', 'REQUESTED', 'RECORD']
+        self.assertEqual(contents, sorted(wanted))
 
     def test_finalize_options(self):
         pkg_dir, dist = self.create_dist()
diff --git a/Lib/packaging/tests/test_command_build_py.py b/Lib/packaging/tests/test_command_build_py.py
index 9d519e3..4d93faa 100644
--- a/Lib/packaging/tests/test_command_build_py.py
+++ b/Lib/packaging/tests/test_command_build_py.py
@@ -62,12 +62,8 @@
         pycache_dir = os.path.join(pkgdest, "__pycache__")
         self.assertIn("__init__.py", files)
         self.assertIn("README.txt", files)
-        if sys.dont_write_bytecode:
-            self.assertFalse(os.path.exists(pycache_dir))
-        else:
-            # XXX even with -O, packaging writes pyc, not pyo; bug?
-            pyc_files = os.listdir(pycache_dir)
-            self.assertIn("__init__.%s.pyc" % imp.get_tag(), pyc_files)
+        pyc_files = os.listdir(pycache_dir)
+        self.assertIn("__init__.%s.pyc" % imp.get_tag(), pyc_files)
 
     def test_empty_package_dir(self):
         # See SF 1668596/1720897.
@@ -102,7 +98,6 @@
             os.chdir(cwd)
             sys.stdout = old_stdout
 
-    @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
     def test_byte_compile(self):
         project_dir, dist = self.create_dist(py_modules=['boiledeggs'])
         os.chdir(project_dir)
@@ -118,7 +113,6 @@
         found = os.listdir(os.path.join(cmd.build_lib, '__pycache__'))
         self.assertEqual(found, ['boiledeggs.%s.pyc' % imp.get_tag()])
 
-    @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
     def test_byte_compile_optimized(self):
         project_dir, dist = self.create_dist(py_modules=['boiledeggs'])
         os.chdir(project_dir)
@@ -136,21 +130,13 @@
         self.assertEqual(sorted(found), ['boiledeggs.%s.pyc' % imp.get_tag(),
                                          'boiledeggs.%s.pyo' % imp.get_tag()])
 
-    def test_dont_write_bytecode(self):
-        # makes sure byte_compile is not used
-        pkg_dir, dist = self.create_dist()
-        cmd = build_py(dist)
-        cmd.compile = True
-        cmd.optimize = 1
-
-        old_dont_write_bytecode = sys.dont_write_bytecode
+    def test_byte_compile_under_B(self):
+        # make sure byte compilation works under -B (dont_write_bytecode)
+        self.addCleanup(setattr, sys, 'dont_write_bytecode',
+                        sys.dont_write_bytecode)
         sys.dont_write_bytecode = True
-        try:
-            cmd.byte_compile([])
-        finally:
-            sys.dont_write_bytecode = old_dont_write_bytecode
-
-        self.assertIn('byte-compiling is disabled', self.get_logs()[0])
+        self.test_byte_compile()
+        self.test_byte_compile_optimized()
 
 
 def test_suite():
diff --git a/Lib/packaging/tests/test_command_install_lib.py b/Lib/packaging/tests/test_command_install_lib.py
index 3f36822..e58e812 100644
--- a/Lib/packaging/tests/test_command_install_lib.py
+++ b/Lib/packaging/tests/test_command_install_lib.py
@@ -17,7 +17,7 @@
     restore_environ = ['PYTHONPATH']
 
     def test_finalize_options(self):
-        pkg_dir, dist = self.create_dist()
+        dist = self.create_dist()[1]
         cmd = install_lib(dist)
 
         cmd.finalize_options()
@@ -34,71 +34,73 @@
         cmd.finalize_options()
         self.assertEqual(cmd.optimize, 2)
 
-    @unittest.skipIf(sys.dont_write_bytecode, 'byte-compile disabled')
     def test_byte_compile(self):
-        pkg_dir, dist = self.create_dist()
-        os.chdir(pkg_dir)
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
         cmd = install_lib(dist)
         cmd.compile = True
         cmd.optimize = 1
 
-        f = os.path.join(pkg_dir, 'foo.py')
+        f = os.path.join(project_dir, 'foo.py')
         self.write_file(f, '# python file')
         cmd.byte_compile([f])
-        pyc_file = imp.cache_from_source('foo.py')
+        pyc_file = imp.cache_from_source('foo.py', debug_override=True)
         pyo_file = imp.cache_from_source('foo.py', debug_override=False)
         self.assertTrue(os.path.exists(pyc_file))
         self.assertTrue(os.path.exists(pyo_file))
 
-    def test_get_outputs(self):
-        pkg_dir, dist = self.create_dist()
-        cmd = install_lib(dist)
-
-        # setting up a dist environment
-        cmd.compile = True
-        cmd.optimize = 1
-        cmd.install_dir = pkg_dir
-        f = os.path.join(pkg_dir, '__init__.py')
-        self.write_file(f, '# python package')
-        cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
-        cmd.distribution.packages = [pkg_dir]
-
-        # make sure the build_lib is set the temp dir
-        build_dir = os.path.split(pkg_dir)[0]
-        cmd.get_finalized_command('build_py').build_lib = build_dir
-
-        # get_output should return 4 elements
-        self.assertEqual(len(cmd.get_outputs()), 4)
-
-    def test_get_inputs(self):
-        pkg_dir, dist = self.create_dist()
-        cmd = install_lib(dist)
-
-        # setting up a dist environment
-        cmd.compile = True
-        cmd.optimize = 1
-        cmd.install_dir = pkg_dir
-        f = os.path.join(pkg_dir, '__init__.py')
-        self.write_file(f, '# python package')
-        cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
-        cmd.distribution.packages = [pkg_dir]
-
-        # get_input should return 2 elements
-        self.assertEqual(len(cmd.get_inputs()), 2)
-
-    def test_dont_write_bytecode(self):
-        # makes sure byte_compile is not used
-        pkg_dir, dist = self.create_dist()
-        cmd = install_lib(dist)
-        cmd.compile = True
-        cmd.optimize = 1
-
+    def test_byte_compile_under_B(self):
+        # make sure byte compilation works under -B (dont_write_bytecode)
         self.addCleanup(setattr, sys, 'dont_write_bytecode',
                         sys.dont_write_bytecode)
         sys.dont_write_bytecode = True
-        cmd.byte_compile([])
+        self.test_byte_compile()
 
-        self.assertIn('byte-compiling is disabled', self.get_logs()[0])
+    def test_get_outputs(self):
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
+        os.mkdir('spam')
+        cmd = install_lib(dist)
+
+        # setting up a dist environment
+        cmd.compile = True
+        cmd.optimize = 1
+        cmd.install_dir = self.mkdtemp()
+        f = os.path.join(project_dir, 'spam', '__init__.py')
+        self.write_file(f, '# python package')
+        cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
+        cmd.distribution.packages = ['spam']
+
+        # make sure the build_lib is set the temp dir  # XXX what?  this is not
+        # needed in the same distutils test and should work without manual
+        # intervention
+        build_dir = os.path.split(project_dir)[0]
+        cmd.get_finalized_command('build_py').build_lib = build_dir
+
+        # get_outputs should return 4 elements: spam/__init__.py, .pyc and
+        # .pyo, foo.import-tag-abiflags.so / foo.pyd
+        outputs = cmd.get_outputs()
+        self.assertEqual(len(outputs), 4, outputs)
+
+    def test_get_inputs(self):
+        project_dir, dist = self.create_dist()
+        os.chdir(project_dir)
+        os.mkdir('spam')
+        cmd = install_lib(dist)
+
+        # setting up a dist environment
+        cmd.compile = True
+        cmd.optimize = 1
+        cmd.install_dir = self.mkdtemp()
+        f = os.path.join(project_dir, 'spam', '__init__.py')
+        self.write_file(f, '# python package')
+        cmd.distribution.ext_modules = [Extension('foo', ['xxx'])]
+        cmd.distribution.packages = ['spam']
+
+        # get_inputs should return 2 elements: spam/__init__.py and
+        # foo.import-tag-abiflags.so / foo.pyd
+        inputs = cmd.get_inputs()
+        self.assertEqual(len(inputs), 2, inputs)
 
 
 def test_suite():
diff --git a/Lib/packaging/tests/test_command_sdist.py b/Lib/packaging/tests/test_command_sdist.py
index 7ea138c..34a2e9c 100644
--- a/Lib/packaging/tests/test_command_sdist.py
+++ b/Lib/packaging/tests/test_command_sdist.py
@@ -1,9 +1,7 @@
 """Tests for packaging.command.sdist."""
 import os
-import zipfile
 import tarfile
-
-from packaging.tests.support import requires_zlib
+import zipfile
 
 try:
     import grp
@@ -12,16 +10,16 @@
 except ImportError:
     UID_GID_SUPPORT = False
 
-from os.path import join
-from packaging.tests import captured_stdout
-from packaging.command.sdist import sdist
-from packaging.command.sdist import show_formats
-from packaging.dist import Distribution
-from packaging.tests import unittest
-from packaging.errors import PackagingOptionError
-from packaging.util import find_executable
-from packaging.tests import support
 from shutil import get_archive_formats
+from os.path import join
+from packaging.dist import Distribution
+from packaging.util import find_executable
+from packaging.errors import PackagingOptionError
+from packaging.command.sdist import sdist, show_formats
+
+from packaging.tests import support, unittest
+from packaging.tests import captured_stdout
+from packaging.tests.support import requires_zlib
 
 
 MANIFEST = """\
@@ -88,7 +86,6 @@
 
         # creating VCS directories with some files in them
         os.mkdir(join(self.tmp_dir, 'somecode', '.svn'))
-
         self.write_file((self.tmp_dir, 'somecode', '.svn', 'ok.py'), 'xxx')
 
         os.mkdir(join(self.tmp_dir, 'somecode', '.hg'))
@@ -216,12 +213,14 @@
         # testing the `check-metadata` option
         dist, cmd = self.get_cmd(metadata={'name': 'xxx', 'version': 'xxx'})
 
-        # this should raise some warnings
-        # with the check subcommand
+        # this should cause the check subcommand to log two warnings:
+        # version is invalid, home-page and author are missing
         cmd.ensure_finalized()
         cmd.run()
         warnings = self.get_logs()
-        self.assertEqual(len(warnings), 4)
+        check_warnings = [msg for msg in warnings if
+                          not msg.startswith('sdist:')]
+        self.assertEqual(len(check_warnings), 2, warnings)
 
         # trying with a complete set of metadata
         self.loghandler.flush()
@@ -244,7 +243,6 @@
         self.assertEqual(len(output), num_formats)
 
     def test_finalize_options(self):
-
         dist, cmd = self.get_cmd()
         cmd.finalize_options()
 
@@ -264,6 +262,18 @@
         self.assertRaises(PackagingOptionError, cmd.finalize_options)
 
     @requires_zlib
+    def test_template(self):
+        dist, cmd = self.get_cmd()
+        dist.extra_files = ['include yeah']
+        cmd.ensure_finalized()
+        self.write_file((self.tmp_dir, 'yeah'), 'xxx')
+        cmd.run()
+        with open(cmd.manifest) as f:
+            content = f.read()
+
+        self.assertIn('yeah', content)
+
+    @requires_zlib
     @unittest.skipUnless(UID_GID_SUPPORT, "requires grp and pwd support")
     @unittest.skipIf(find_executable('tar') is None or
                      find_executable('gzip') is None,
@@ -368,18 +378,6 @@
         self.assertEqual(manifest, ['README.manual'])
 
     @requires_zlib
-    def test_template(self):
-        dist, cmd = self.get_cmd()
-        dist.extra_files = ['include yeah']
-        cmd.ensure_finalized()
-        self.write_file((self.tmp_dir, 'yeah'), 'xxx')
-        cmd.run()
-        with open(cmd.manifest) as f:
-            content = f.read()
-
-        self.assertIn('yeah', content)
-
-    @requires_zlib
     def test_manifest_builder(self):
         dist, cmd = self.get_cmd()
         cmd.manifest_builders = 'packaging.tests.test_command_sdist.builder'
diff --git a/Lib/packaging/tests/test_mixin2to3.py b/Lib/packaging/tests/test_mixin2to3.py
index 000a992..c439bcb 100644
--- a/Lib/packaging/tests/test_mixin2to3.py
+++ b/Lib/packaging/tests/test_mixin2to3.py
@@ -8,6 +8,7 @@
                         support.LoggingCatcher,
                         unittest.TestCase):
 
+    @support.skip_2to3_optimize
     def test_convert_code_only(self):
         # used to check if code gets converted properly.
         code = "print 'test'"
diff --git a/Lib/packaging/tests/test_util.py b/Lib/packaging/tests/test_util.py
index 1cf5c93..00d61e0 100644
--- a/Lib/packaging/tests/test_util.py
+++ b/Lib/packaging/tests/test_util.py
@@ -10,7 +10,7 @@
 from io import StringIO
 
 from packaging.errors import (
-    PackagingPlatformError, PackagingByteCompileError, PackagingFileError,
+    PackagingPlatformError, PackagingFileError,
     PackagingExecError, InstallationException)
 from packaging import util
 from packaging.dist import Distribution
@@ -138,15 +138,8 @@
             self._uname = None
         os.uname = self._get_uname
 
-        # patching POpen
-        self.old_find_executable = util.find_executable
-        util.find_executable = self._find_executable
-        self._exes = {}
-        self.old_popen = subprocess.Popen
-        self.old_stdout = sys.stdout
-        self.old_stderr = sys.stderr
-        FakePopen.test_class = self
-        subprocess.Popen = FakePopen
+    def _get_uname(self):
+        return self._uname
 
     def tearDown(self):
         # getting back the environment
@@ -161,17 +154,24 @@
             os.uname = self.uname
         else:
             del os.uname
+        super(UtilTestCase, self).tearDown()
+
+    def mock_popen(self):
+        self.old_find_executable = util.find_executable
+        util.find_executable = self._find_executable
+        self._exes = {}
+        self.old_popen = subprocess.Popen
+        self.old_stdout = sys.stdout
+        self.old_stderr = sys.stderr
+        FakePopen.test_class = self
+        subprocess.Popen = FakePopen
+        self.addCleanup(self.unmock_popen)
+
+    def unmock_popen(self):
         util.find_executable = self.old_find_executable
         subprocess.Popen = self.old_popen
         sys.old_stdout = self.old_stdout
         sys.old_stderr = self.old_stderr
-        super(UtilTestCase, self).tearDown()
-
-    def _set_uname(self, uname):
-        self._uname = uname
-
-    def _get_uname(self):
-        return self._uname
 
     def test_convert_path(self):
         # linux/mac
@@ -283,6 +283,7 @@
         return None
 
     def test_get_compiler_versions(self):
+        self.mock_popen()
         # get_versions calls distutils.spawn.find_executable on
         # 'gcc', 'ld' and 'dllwrap'
         self.assertEqual(get_compiler_versions(), (None, None, None))
@@ -323,15 +324,12 @@
         res = get_compiler_versions()
         self.assertEqual(res[2], None)
 
-    def test_dont_write_bytecode(self):
-        # makes sure byte_compile raise a PackagingError
-        # if sys.dont_write_bytecode is True
-        old_dont_write_bytecode = sys.dont_write_bytecode
+    def test_byte_compile_under_B(self):
+        # make sure byte compilation works under -B (dont_write_bytecode)
+        self.addCleanup(setattr, sys, 'dont_write_bytecode',
+                        sys.dont_write_bytecode)
         sys.dont_write_bytecode = True
-        try:
-            self.assertRaises(PackagingByteCompileError, byte_compile, [])
-        finally:
-            sys.dont_write_bytecode = old_dont_write_bytecode
+        byte_compile([])
 
     def test_newer(self):
         self.assertRaises(PackagingFileError, util.newer, 'xxx', 'xxx')
@@ -418,6 +416,7 @@
         self.assertRaises(ImportError, resolve_name, 'a.b.Spam')
         self.assertRaises(ImportError, resolve_name, 'a.b.c.Spam')
 
+    @support.skip_2to3_optimize
     def test_run_2to3_on_code(self):
         content = "print 'test'"
         converted_content = "print('test')"
@@ -431,6 +430,7 @@
         file_handle.close()
         self.assertEqual(new_content, converted_content)
 
+    @support.skip_2to3_optimize
     def test_run_2to3_on_doctests(self):
         # to check if text files containing doctests only get converted.
         content = ">>> print 'test'\ntest\n"
@@ -448,8 +448,6 @@
     @unittest.skipUnless(os.name in ('nt', 'posix'),
                          'runs only under posix or nt')
     def test_spawn(self):
-        # no patching of Popen here
-        subprocess.Popen = self.old_popen
         tmpdir = self.mkdtemp()
 
         # creating something executable
@@ -545,8 +543,6 @@
         self.assertEqual(args['py_modules'], dist.py_modules)
 
     def test_generate_setup_py(self):
-        # undo subprocess.Popen monkey-patching before using assert_python_*
-        subprocess.Popen = self.old_popen
         os.chdir(self.mkdtemp())
         self.write_file('setup.cfg', textwrap.dedent("""\
             [metadata]
diff --git a/Lib/packaging/util.py b/Lib/packaging/util.py
index 8dd715f..e76e3c3 100644
--- a/Lib/packaging/util.py
+++ b/Lib/packaging/util.py
@@ -20,8 +20,8 @@
 
 from packaging import logger
 from packaging.errors import (PackagingPlatformError, PackagingFileError,
-                              PackagingByteCompileError, PackagingExecError,
-                              InstallationException, PackagingInternalError)
+                              PackagingExecError, InstallationException,
+                              PackagingInternalError)
 
 __all__ = [
     # file dependencies
@@ -325,12 +325,10 @@
     the source for details).  The 'direct' flag is used by the script
     generated in indirect mode; unless you know what you're doing, leave
     it set to None.
-    """
-    # nothing is done if sys.dont_write_bytecode is True
-    # FIXME this should not raise an error
-    if sys.dont_write_bytecode:
-        raise PackagingByteCompileError('byte-compiling is disabled.')
 
+    This function is independent from the running Python's -O or -B options;
+    it is fully controlled by the parameters passed in.
+    """
     # First, if the caller didn't force us into direct or indirect mode,
     # figure out which mode we should be in.  We take a conservative
     # approach: choose direct mode *only* if the current interpreter is
@@ -417,12 +415,10 @@
             # Terminology from the py_compile module:
             #   cfile - byte-compiled file
             #   dfile - purported source filename (same as 'file' by default)
-            if optimize >= 0:
-                cfile = imp.cache_from_source(file,
-                                              debug_override=not optimize)
-            else:
-                cfile = imp.cache_from_source(file)
+            debug_override = not optimize
+            cfile = imp.cache_from_source(file, debug_override)
             dfile = file
+
             if prefix:
                 if file[:len(prefix)] != prefix:
                     raise ValueError("invalid prefix: filename %r doesn't "
diff --git a/Misc/NEWS b/Misc/NEWS
index 11f98a7..b46cea8 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -97,7 +97,7 @@
 
 - Issue #12773: Make __doc__ mutable on user-defined classes.
 
-- Issue #12766: Raise an ValueError when creating a class with a class variable
+- Issue #12766: Raise a ValueError when creating a class with a class variable
   that conflicts with a name in __slots__.
 
 - Issue #12266: Fix str.capitalize() to correctly uppercase/lowercase
@@ -158,7 +158,7 @@
   given, produce a informative error message which includes the name(s) of the
   missing arguments.
 
-- Issue #12370: Fix super with not arguments when __class__ is overriden in the
+- Issue #12370: Fix super with no arguments when __class__ is overriden in the
   class body.
 
 - Issue #12084: os.stat on Windows now works properly with relative symbolic
@@ -350,6 +350,9 @@
 Library
 -------
 
+- Byte compilation in packaging is now isolated from the calling Python -B or
+  -O options, instead of being disallowed under -B or buggy under -O.
+
 - Issue #10570: curses.tigetstr() is now expecting a byte string, instead of
   a Unicode string.
 
@@ -357,8 +360,9 @@
 
 - Issue #2892: preserve iterparse events in case of SyntaxError.
 
-- Issue #13287: urllib.request and urllib.error now contains a __all__ and
-  exposes only relevant Classes, Functions. Patch by Florent Xicluna.
+- Issue #13287: urllib.request and urllib.error now contains an __all__
+  attribute to expose only relevant classes and functions.  Patch by Florent
+  Xicluna.
 
 - Issue #670664: Fix HTMLParser to correctly handle the content of
   ``<script>...</script>`` and ``<style>...</style>``.
diff --git a/Python/import.c b/Python/import.c
index 701041b..5c33b6b 100644
--- a/Python/import.c
+++ b/Python/import.c
@@ -3908,7 +3908,8 @@
 }
 
 PyDoc_STRVAR(doc_cache_from_source,
-"Given the path to a .py file, return the path to its .pyc/.pyo file.\n\
+"cache_from_source(path, [debug_override]) -> path\n\
+Given the path to a .py file, return the path to its .pyc/.pyo file.\n\
 \n\
 The .py file does not need to exist; this simply returns the path to the\n\
 .pyc/.pyo file calculated as if the .py file were imported.  The extension\n\
@@ -3940,7 +3941,8 @@
 }
 
 PyDoc_STRVAR(doc_source_from_cache,
-"Given the path to a .pyc./.pyo file, return the path to its .py file.\n\
+"source_from_cache(path) -> path\n\
+Given the path to a .pyc./.pyo file, return the path to its .py file.\n\
 \n\
 The .pyc/.pyo file does not need to exist; this simply returns the path to\n\
 the .py file calculated to correspond to the .pyc/.pyo file.  If path\n\