=== modified file 'Lib/test/test_urllib.py'
--- Lib/test/test_urllib.py	2008-09-09 00:49:16 +0000
+++ Lib/test/test_urllib.py	2008-09-18 10:40:45 +0000
@@ -94,6 +94,31 @@
         for line in self.returned_obj.__iter__():
             self.assertEqual(line, self.text)
 
+
+class ProxyTests(unittest.TestCase):
+
+    def setUp(self):
+        unittest.TestCase.setUp(self)
+        # Save all proxy related env vars
+        self._saved_environ = dict([(k, v) for k, v in os.environ.iteritems()
+                                    if k.lower().find('proxy') >= 0])
+        # Delete all proxy related env vars
+        for k in self._saved_environ:
+            del os.environ[k]
+
+    def tearDown(self):
+        unittest.TestCase.tearDown(self)
+        # Restore all proxy related env vars
+        for k, v in self._saved_environ:
+            os.environ[k] = v
+
+    def test_getproxies_environment_keep_no_proxies(self):
+        os.environ['NO_PROXY'] = 'localhost'
+        proxies = urllib.getproxies_environment()
+        # getproxies_environment use lowered case truncated (no '_proxy') keys
+        self.assertEquals('localhost', proxies['no'])
+
+
 class urlopen_HttpTests(unittest.TestCase):
     """Test urlopen() opening a fake http connection."""
 
@@ -648,6 +673,7 @@
             urlopen_FileTests,
             urlopen_HttpTests,
             urlretrieve_FileTests,
+            ProxyTests,
             QuotingTests,
             UnquotingTests,
             urlencode_Tests,

=== modified file 'Lib/urllib.py'
--- Lib/urllib.py	2008-07-02 01:57:08 +0000
+++ Lib/urllib.py	2008-09-16 12:21:26 +0000
@@ -1299,9 +1299,6 @@
     proxies = {}
     for name, value in os.environ.items():
         name = name.lower()
-        if name == 'no_proxy':
-            # handled in proxy_bypass_environment
-            continue
         if value and name[-6:] == '_proxy':
             proxies[name[:-6]] = value
     return proxies