Index: Python/ceval.c
===================================================================
--- Python/ceval.c	(revision 82824)
+++ Python/ceval.c	(working copy)
@@ -2052,6 +2052,7 @@
             break;
 
         TARGET(LOAD_NAME)
+        TARGET(LOAD_NAME_LOCAL_ONLY)
             w = GETITEM(names, oparg);
             if ((v = f->f_locals) == NULL) {
                 PyErr_Format(PyExc_SystemError,
@@ -2073,15 +2074,14 @@
                 }
             }
             if (x == NULL) {
-                x = PyDict_GetItem(f->f_globals, w);
+                if (opcode != LOAD_NAME_LOCAL_ONLY) {
+                    x = PyDict_GetItem(f->f_globals, w);
+                    if (x == NULL)
+                        x = PyDict_GetItem(f->f_builtins, w);
+                }
                 if (x == NULL) {
-                    x = PyDict_GetItem(f->f_builtins, w);
-                    if (x == NULL) {
-                        format_exc_check_arg(
-                                    PyExc_NameError,
-                                    NAME_ERROR_MSG, w);
-                        break;
-                    }
+                    format_exc_check_arg(PyExc_NameError, NAME_ERROR_MSG, w);
+                    break;
                 }
                 Py_INCREF(x);
             }
Index: Python/symtable.c
===================================================================
--- Python/symtable.c	(revision 82824)
+++ Python/symtable.c	(working copy)
@@ -432,7 +432,12 @@
         return PySet_Add(free, name) >= 0;
     }
     if (flags & DEF_BOUND) {
-        SET_SCOPE(scopes, name, LOCAL);
+        if (ste->ste_type == ClassBlock && bound && PySet_Contains(bound, name)) {
+            SET_SCOPE(scopes, name, LOCAL_ONLY);
+        }
+        else {
+            SET_SCOPE(scopes, name, LOCAL);
+        }
         if (PySet_Add(local, name) < 0)
             return 0;
         if (PySet_Discard(global, name) < 0)
Index: Python/compile.c
===================================================================
--- Python/compile.c	(revision 82824)
+++ Python/compile.c	(working copy)
@@ -787,6 +787,7 @@
         case LOAD_CONST:
             return 1;
         case LOAD_NAME:
+        case LOAD_NAME_LOCAL_ONLY:
             return 1;
         case BUILD_TUPLE:
         case BUILD_LIST:
@@ -2481,6 +2482,7 @@
         optype = OP_DEREF;
         break;
     case LOCAL:
+    case LOCAL_ONLY:
         if (c->u->u_ste->ste_type == FunctionBlock)
             optype = OP_FAST;
         break;
@@ -2556,7 +2558,7 @@
         break;
     case OP_NAME:
         switch (ctx) {
-        case Load: op = LOAD_NAME; break;
+        case Load: op = (scope == LOCAL_ONLY) ? LOAD_NAME_LOCAL_ONLY : LOAD_NAME; break;
         case Store: op = STORE_NAME; break;
         case Del: op = DELETE_NAME; break;
         case AugLoad:
Index: Include/opcode.h
===================================================================
--- Include/opcode.h	(revision 82824)
+++ Include/opcode.h	(working copy)
@@ -123,6 +123,7 @@
 #define LOAD_CLOSURE    135     /* Load free variable from closure */
 #define LOAD_DEREF      136     /* Load and dereference from closure cell */ 
 #define STORE_DEREF     137     /* Store into cell */ 
+#define LOAD_NAME_LOCAL_ONLY 138
 
 /* The next 3 opcodes must be contiguous and satisfy
    (CALL_FUNCTION_VAR - CALL_FUNCTION) & 3 == 1  */
Index: Include/symtable.h
===================================================================
--- Include/symtable.h	(revision 82824)
+++ Include/symtable.h	(working copy)
@@ -88,6 +88,7 @@
 #define GLOBAL_IMPLICIT 3
 #define FREE 4
 #define CELL 5
+#define LOCAL_ONLY 6
 
 /* The following two names are used for the ste_unoptimized bit field */
 #define OPT_IMPORT_STAR 1
Index: Lib/test/test_scope.py
===================================================================
--- Lib/test/test_scope.py	(revision 82824)
+++ Lib/test/test_scope.py	(working copy)
@@ -690,7 +690,15 @@
         h = g()
         self.assertEqual(h(), 3)
 
+    def testLocalClosureShadowing(self):
+        exec("""
+x = 4
+def f(x):
+    class C:
+         x = x
+raises(NameError, f, 3)""", {"raises" : self.assertRaises})
 
+
 def test_main():
     run_unittest(ScopeTests)