diff --git a/Lib/decimal.py b/Lib/decimal.py
index 396c413..a66beef 100644
--- a/Lib/decimal.py
+++ b/Lib/decimal.py
@@ -131,7 +131,7 @@
     'ROUND_FLOOR', 'ROUND_UP', 'ROUND_HALF_DOWN',
 
     # Functions for manipulating contexts
-    'setcontext', 'getcontext'
+    'setcontext', 'getcontext', 'localcontext'
 ]
 
 import copy as _copy
@@ -458,6 +458,49 @@
 
     del threading, local        # Don't contaminate the namespace
 
+def localcontext(ctx=None):
+    """Return a context manager for a copy of the supplied context
+
+    Uses a copy of the current context if no context is specified
+    The returned context manager creates a local decimal context
+    in a with statement:
+        def sin(x):
+             with localcontext() as ctx:
+                 ctx.prec += 2
+                 # Rest of sin calculation algorithm
+                 # uses a precision 2 greater than normal
+             return +s # Convert result to normal precision
+
+         def sin(x):
+             with localcontext(ExtendedContext):
+                 # Rest of sin calculation algorithm
+                 # uses the Extended Context from the
+                 # General Decimal Arithmetic Specification
+             return +s # Convert result to normal context
+
+    """
+    # The below can't be included in the docstring until Python 2.6
+    # as the doctest module doesn't understand __future__ statements
+    """
+    >>> from __future__ import with_statement
+    >>> print getcontext().prec
+    28
+    >>> with localcontext():
+    ...     ctx = getcontext()
+    ...     ctx.prec() += 2
+    ...     print ctx.prec
+    ...
+    30
+    >>> with localcontext(ExtendedContext):
+    ...     print getcontext().prec
+    ...
+    9
+    >>> print getcontext().prec
+    28
+    """
+    if ctx is None: ctx = getcontext()
+    return _ContextManager(ctx)
+
 
 ##### Decimal class ###########################################
 
@@ -2173,23 +2216,14 @@
 
 del name, val, globalname, rounding_functions
 
-class ContextManager(object):
-    """Helper class to simplify Context management.
+class _ContextManager(object):
+    """Context manager class to support localcontext().
 
-    Sample usage:
-
-    with decimal.ExtendedContext:
-        s = ...
-    return +s # Convert result to normal precision
-
-    with decimal.getcontext() as ctx:
-        ctx.prec += 2
-        s = ...
-    return +s
-
+      Sets a copy of the supplied context in __enter__() and restores
+      the previous decimal context in __exit__()
     """
     def __init__(self, new_context):
-        self.new_context = new_context
+        self.new_context = new_context.copy()
     def __enter__(self):
         self.saved_context = getcontext()
         setcontext(self.new_context)
@@ -2248,9 +2282,6 @@
         s.append('traps=[' + ', '.join([t.__name__ for t, v in self.traps.items() if v]) + ']')
         return ', '.join(s) + ')'
 
-    def get_manager(self):
-        return ContextManager(self.copy())
-
     def clear_flags(self):
         """Reset all flags to zero"""
         for flag in self.flags:
diff --git a/Lib/test/test_contextlib.py b/Lib/test/test_contextlib.py
index 2cf39ae..747785d 100644
--- a/Lib/test/test_contextlib.py
+++ b/Lib/test/test_contextlib.py
@@ -330,32 +330,6 @@
                 return True
         self.boilerPlate(lock, locked)
 
-class DecimalContextTestCase(unittest.TestCase):
-
-    # XXX Somebody should write more thorough tests for this
-
-    def testBasic(self):
-        ctx = decimal.getcontext()
-        orig_context = ctx.copy()
-        try:
-            ctx.prec = save_prec = decimal.ExtendedContext.prec + 5
-            with decimal.ExtendedContext.get_manager():
-                self.assertEqual(decimal.getcontext().prec,
-                                 decimal.ExtendedContext.prec)
-            self.assertEqual(decimal.getcontext().prec, save_prec)
-            try:
-                with decimal.ExtendedContext.get_manager():
-                    self.assertEqual(decimal.getcontext().prec,
-                                     decimal.ExtendedContext.prec)
-                    1/0
-            except ZeroDivisionError:
-                self.assertEqual(decimal.getcontext().prec, save_prec)
-            else:
-                self.fail("Didn't raise ZeroDivisionError")
-        finally:
-            decimal.setcontext(orig_context)
-
-
 # This is needed to make the test actually run under regrtest.py!
 def test_main():
     run_suite(
diff --git a/Lib/test/test_decimal.py b/Lib/test/test_decimal.py
index f3f9215..841ea6f 100644
--- a/Lib/test/test_decimal.py
+++ b/Lib/test/test_decimal.py
@@ -23,6 +23,7 @@
 you're working through IDLE, you can import this test module and call test_main()
 with the corresponding argument.
 """
+from __future__ import with_statement
 
 import unittest
 import glob
@@ -1064,6 +1065,32 @@
         self.assertNotEqual(id(c.flags), id(d.flags))
         self.assertNotEqual(id(c.traps), id(d.traps))
 
+class WithStatementTest(unittest.TestCase):
+    # Can't do these as docstrings until Python 2.6
+    # as doctest can't handle __future__ statements
+
+    def test_localcontext(self):
+        # Use a copy of the current context in the block
+        orig_ctx = getcontext()
+        with localcontext() as enter_ctx:
+            set_ctx = getcontext()
+        final_ctx = getcontext()
+        self.assert_(orig_ctx is final_ctx, 'did not restore context correctly')
+        self.assert_(orig_ctx is not set_ctx, 'did not copy the context')
+        self.assert_(set_ctx is enter_ctx, '__enter__ returned wrong context')
+
+    def test_localcontextarg(self):
+        # Use a copy of the supplied context in the block
+        orig_ctx = getcontext()
+        new_ctx = Context(prec=42)
+        with localcontext(new_ctx) as enter_ctx:
+            set_ctx = getcontext()
+        final_ctx = getcontext()
+        self.assert_(orig_ctx is final_ctx, 'did not restore context correctly')
+        self.assert_(set_ctx.prec == new_ctx.prec, 'did not set correct context')
+        self.assert_(new_ctx is not set_ctx, 'did not copy the context')
+        self.assert_(set_ctx is enter_ctx, '__enter__ returned wrong context')
+
 def test_main(arith=False, verbose=None):
     """ Execute the tests.
 
@@ -1084,6 +1111,7 @@
         DecimalPythonAPItests,
         ContextAPItests,
         DecimalTest,
+        WithStatementTest,
     ]
 
     try: