diff -r 6f097ff9ac04 Doc/library/functions.rst
--- a/Doc/library/functions.rst	Mon Dec 12 19:18:24 2011 +0100
+++ b/Doc/library/functions.rst	Mon Dec 12 16:22:54 2011 -0500
@@ -389,7 +389,12 @@
    See :func:`ast.literal_eval` for a function that can safely evaluate strings
    with expressions containing only literals.
 
+   .. note::
 
+      Note that free variables will be resolved in the *globals* and not *locals* name space.
+      See `Execution model <http://docs.python.org/py3k/reference/executionmodel.html>`__
+      for more information on how names in code passed to ``eval`` will be resolved.
+      
 .. function:: exec(object[, globals[, locals]])
 
    This function supports dynamic execution of Python code. *object* must be
@@ -427,7 +432,12 @@
       Pass an explicit *locals* dictionary if you need to see effects of the
       code on *locals* after function :func:`exec` returns.
 
+   .. note::
 
+      Note that free variables will be resolved in the *globals* and not *locals* name space.
+      See `Execution model <http://docs.python.org/py3k/reference/executionmodel.html>`__
+      for more information on how names in code passed to ``exec`` will be resolved.
+      
 .. function:: filter(function, iterable)
 
    Construct an iterator from those elements of *iterable* for which *function*
diff -r 6f097ff9ac04 Doc/reference/executionmodel.rst
--- a/Doc/reference/executionmodel.rst	Mon Dec 12 19:18:24 2011 +0100
+++ b/Doc/reference/executionmodel.rst	Mon Dec 12 16:22:54 2011 -0500
@@ -168,7 +168,8 @@
 
 The :func:`eval` and :func:`exec` functions do not have access to the full
 environment for resolving names.  Names may be resolved in the local and global
-namespaces of the caller.  Free variables are not resolved in the nearest
+namespaces of the caller.  Free variables in a ``def``, list comprehension,
+generator expression, or lamba are not resolved in the nearest
 enclosing namespace, but in the global namespace.  [#]_ The :func:`exec` and
 :func:`eval` functions have optional arguments to override the global and local
 namespace.  If only one namespace is specified, it is used for both.
@@ -233,5 +234,5 @@
 .. rubric:: Footnotes
 
 .. [#] This limitation occurs because the code that is executed by these operations
-       is not available at the time the module is compiled.
+       is not available at the time the enclosing module or code fragment is compiled.