diff --git a/src/mzscheme/src/env.c b/src/mzscheme/src/env.c
index 90aff15d8e..bd1794bbc6 100644
--- a/src/mzscheme/src/env.c
+++ b/src/mzscheme/src/env.c
@@ -2609,7 +2609,9 @@ scheme_lookup_binding(Scheme_Object *find_id, Scheme_Comp_Env *env, int flags,
 	  if (SCHEME_FALSEP(val)) {
 	    /* Corresponds to a run-time binding (but will be replaced later
 	       through a renaming to a different binding) */
-	    return NULL;
+            if (flags & SCHEME_OUT_OF_CONTEXT_LOCAL)
+              return scheme_make_local(scheme_local_type, 0, 0);
+            return NULL;
 	  }
 
 	  if (!(flags & SCHEME_ENV_CONSTANTS_OK)) {
@@ -2647,6 +2649,8 @@ scheme_lookup_binding(Scheme_Object *find_id, Scheme_Comp_Env *env, int flags,
       if (!(flags & SCHEME_OUT_OF_CONTEXT_OK))
         scheme_wrong_syntax(scheme_compile_stx_string, NULL, find_id,
                             "identifier used out of context");
+      if (flags & SCHEME_OUT_OF_CONTEXT_LOCAL)
+        return scheme_make_local(scheme_local_type, 0, 0);
       return NULL;
     }
   }
diff --git a/src/mzscheme/src/eval.c b/src/mzscheme/src/eval.c
index 17d1ae7b7b..e69111e3d3 100644
--- a/src/mzscheme/src/eval.c
+++ b/src/mzscheme/src/eval.c
@@ -5379,7 +5379,7 @@ scheme_compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 				       ? SCHEME_RESOLVE_MODIDS
 				       : 0)
                                     + ((!rec[drec].comp && (rec[drec].depth == -2))
-                                       ? SCHEME_OUT_OF_CONTEXT_OK
+                                       ? (SCHEME_OUT_OF_CONTEXT_OK | SCHEME_OUT_OF_CONTEXT_LOCAL)
                                        : 0),
 				    rec[drec].certs, env->in_modidx, 
 				    &menv, &protected, &lexical_binding_id);
@@ -5486,7 +5486,7 @@ scheme_compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 				       ? SCHEME_RESOLVE_MODIDS
 				       : 0)
                                     + ((!rec[drec].comp && (rec[drec].depth == -2))
-                                       ? SCHEME_OUT_OF_CONTEXT_OK
+                                       ? (SCHEME_OUT_OF_CONTEXT_OK | SCHEME_OUT_OF_CONTEXT_LOCAL)
                                        : 0),
 				    erec1.certs, env->in_modidx, 
 				    &menv, NULL, NULL);
@@ -5572,7 +5572,7 @@ scheme_compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 				  + SCHEME_APP_POS + SCHEME_ENV_CONSTANTS_OK
 				  + SCHEME_DONT_MARK_USE
                                   + ((!rec[drec].comp && (rec[drec].depth == -2))
-                                     ? SCHEME_OUT_OF_CONTEXT_OK
+                                     ? (SCHEME_OUT_OF_CONTEXT_OK | SCHEME_OUT_OF_CONTEXT_LOCAL)
                                      : 0),
 				  rec[drec].certs, env->in_modidx, 
 				  &menv, NULL, NULL);
@@ -5615,7 +5615,7 @@ scheme_compile_expand_expr(Scheme_Object *form, Scheme_Comp_Env *env,
 				  + SCHEME_APP_POS + SCHEME_ENV_CONSTANTS_OK
 				  + SCHEME_DONT_MARK_USE
                                   + ((!rec[drec].comp && (rec[drec].depth == -2))
-                                     ? SCHEME_OUT_OF_CONTEXT_OK
+                                     ? (SCHEME_OUT_OF_CONTEXT_OK | SCHEME_OUT_OF_CONTEXT_LOCAL)
                                      : 0),
 				  rec[drec].certs, env->in_modidx, 
 				  &menv, NULL, NULL);
diff --git a/src/mzscheme/src/schpriv.h b/src/mzscheme/src/schpriv.h
index ccd049a4ca..6f5ec3e0fc 100644
--- a/src/mzscheme/src/schpriv.h
+++ b/src/mzscheme/src/schpriv.h
@@ -2350,6 +2350,7 @@ int *scheme_env_get_flags(Scheme_Comp_Env *frame, int start, int count);
 #define SCHEME_RESOLVE_MODIDS 1024
 #define SCHEME_NO_CERT_CHECKS 2048
 #define SCHEME_REFERENCING 4096
+#define SCHEME_OUT_OF_CONTEXT_LOCAL 8192
 
 Scheme_Hash_Table *scheme_map_constants_to_globals(void);
 
diff --git a/src/mzscheme/src/stxobj.c b/src/mzscheme/src/stxobj.c
index d7726bdbff..41c26b2ec4 100644
--- a/src/mzscheme/src/stxobj.c
+++ b/src/mzscheme/src/stxobj.c
@@ -3109,6 +3109,14 @@ static Scheme_Object *check_floating_id(Scheme_Object *stx)
   return scheme_false;
 }
 
+#define EXPLAIN_RESOLVE 0
+#if EXPLAIN_RESOLVE
+static int explain_resolves = 1;
+# define EXPLAIN(x) if (explain_resolves) { x; }
+#else
+# define EXPLAIN(x) /* empty */
+#endif
+
 static int same_marks(WRAP_POS *_awl, WRAP_POS *_bwl, Scheme_Object *barrier_env)
 /* Compares the marks in two wraps lists. A result of 2 means that the
    result depended on a barrier env. For a rib-based renaming, we need
@@ -3273,6 +3281,7 @@ static int same_marks(WRAP_POS *_awl, WRAP_POS *_bwl, Scheme_Object *barrier_env
 
     /* Done if both reached the end: */
     if (WRAP_POS_END_P(awl) && WRAP_POS_END_P(bwl)) {
+      EXPLAIN(fprintf(stderr, "    %d vs. %d marks\n", a_mark_cnt, b_mark_cnt));
       if (a_mark_cnt == b_mark_cnt) {
         while (a_mark_cnt--) {
           if (!SAME_OBJ(a_mark_stack[a_mark_cnt], b_mark_stack[a_mark_cnt]))
@@ -3364,14 +3373,6 @@ static void add_all_marks(Scheme_Object *wraps, Scheme_Hash_Table *marks)
   }
 }
 
-#define EXPLAIN_RESOLVE 0
-#if EXPLAIN_RESOLVE
-static int explain_resolves = 0;
-# define EXPLAIN(x) if (explain_resolves) { x; }
-#else
-# define EXPLAIN(x) /* empty */
-#endif
-
 static int check_matching_marks(Scheme_Object *p, Scheme_Object *orig_id, Scheme_Object **marks_cache, int depth)
 {
   int l1, l2;
@@ -3898,8 +3899,9 @@ static Scheme_Object *resolve_env(WRAP_POS *_wraps,
 	is_rib = NULL;
       }
 
-      EXPLAIN(fprintf(stderr, "%d lexical rename (%d) %d%s\n", depth, is_rib ? 1 : 0,
+      EXPLAIN(fprintf(stderr, "%d lexical rename (%d) %d %s%s\n", depth, is_rib ? 1 : 0,
                       SCHEME_VEC_SIZE(rename), 
+                      SCHEME_SYMBOLP(SCHEME_VEC_ELS(rename)[0]) ? SCHEME_SYM_VAL(SCHEME_VEC_ELS(rename)[0]) : "<simp>",
                       SCHEME_FALSEP(SCHEME_VEC_ELS(rename)[1]) ? "" : " hash"));
 
       c = SCHEME_RENAME_LEN(rename);