diff --git a/pkgs/compatibility-pkgs/compatibility-doc/mzlib/scribblings/compile.scrbl b/pkgs/compatibility-pkgs/compatibility-doc/mzlib/scribblings/compile.scrbl
index 572ba3142b..0bc69bb28b 100644
--- a/pkgs/compatibility-pkgs/compatibility-doc/mzlib/scribblings/compile.scrbl
+++ b/pkgs/compatibility-pkgs/compatibility-doc/mzlib/scribblings/compile.scrbl
@@ -1,34 +1,7 @@
 #lang scribble/doc
 @(require "common.rkt"
-          (for-label mzlib/compile
-                     compiler/compiler
-                     compiler/cm))
+          (for-label compiler/compile-file))
 
 @mzlib[#:mode title compile]
 
-@defproc[(compile-file [src path-string?]
-                       [dest path-string? (let-values ([(base name dir?) (split-path src)])
-                                            (build-path base "compiled"
-                                                        (path-add-suffix name #".zo")))]
-                       [filter (any/c . -> . any/c) values])
-         path?]{
-
-Compiles the Scheme file @racket[src] and saves the compiled code to
-@racket[dest].  If @racket[dest] is not provided and the
-@filepath{compiled} subdirectory does not already exist, the
-subdirectory is created. The result of @racket[compile-file] is the
-destination file's path.
-
-If the @racket[filter] procedure is provided, it is applied to each
-source expression, and the result is compiled. 
-
-The @racket[compile-file] procedure is designed for compiling modules
-files, in that each expression in @racket[src] is compiled
-independently. If @racket[src] does not contain a single
-@racket[module] expression, then earlier expressions can affect the
-compilation of later expressions when @racket[src] is loaded
-directly. An appropriate @racket[filter] can make compilation behave
-like evaluation, but the problem is also solved (as much as possible)
-by the @racket[compile-zos] procedure.
-
-See also @racket[managed-compile-zo].}
+Re-exports @racket[compile-file] from @racketmodname[compiler/compile-file].
diff --git a/pkgs/compatibility-pkgs/compatibility-lib/mzlib/compile.rkt b/pkgs/compatibility-pkgs/compatibility-lib/mzlib/compile.rkt
new file mode 100644
index 0000000000..af29dccd74
--- /dev/null
+++ b/pkgs/compatibility-pkgs/compatibility-lib/mzlib/compile.rkt
@@ -0,0 +1,4 @@
+#lang racket/base
+(require compiler/compile-file)
+
+(provide compile-file)
diff --git a/pkgs/racket-pkgs/racket-doc/scribblings/raco/make.scrbl b/pkgs/racket-pkgs/racket-doc/scribblings/raco/make.scrbl
index 37faa0e626..98ec80a1f4 100644
--- a/pkgs/racket-pkgs/racket-doc/scribblings/raco/make.scrbl
+++ b/pkgs/racket-pkgs/racket-doc/scribblings/raco/make.scrbl
@@ -516,6 +516,8 @@ datastructure containing an in-memory tree representation of the collects
 directory.
 }
 
+@; ----------------------------------------------------------------------
+
 @section{Compilation Manager Hook for Syntax Transformers}
 
 @defmodule[compiler/cm-accomplice]
@@ -549,6 +551,39 @@ recognizes the message to register a dependency on a
 module (which implies a dependency on all of that module's
 dependencies, etc.).}
 
+@; ----------------------------------------
+
+@section{API for Simple Bytecode Creation}
+
+@defmodule[compiler/compile-file]
+
+@defproc[(compile-file [src path-string?]
+                       [dest path-string? (let-values ([(base name dir?) (split-path src)])
+                                            (build-path base "compiled"
+                                                        (path-add-suffix name #".zo")))]
+                       [filter (any/c . -> . any/c) values])
+         path?]{
+
+Compiles the Racket file @racket[src] and saves the compiled code to
+@racket[dest].  If @racket[dest] is not provided and the
+@filepath{compiled} subdirectory does not already exist, the
+subdirectory is created. The result of @racket[compile-file] is the
+destination file's path.
+
+If the @racket[filter] procedure is provided, it is applied to each
+source expression, and the result is compiled. 
+
+The @racket[compile-file] procedure is designed for compiling modules
+files, in that each expression in @racket[src] is compiled
+independently. If @racket[src] does not contain a single
+@racket[module] expression, then earlier expressions can affect the
+compilation of later expressions when @racket[src] is loaded
+directly. An appropriate @racket[filter] can make compilation behave
+like evaluation, but the problem is also solved (as much as possible)
+by the @racket[compile-zos] procedure.
+
+See also @racket[managed-compile-zo].}
+
 @; ----------------------------------------------------------------------
 
 @section[#:tag "zo"]{Compiling to Raw Bytecode}
diff --git a/pkgs/racket-pkgs/racket-doc/scribblings/reference/filesystem.scrbl b/pkgs/racket-pkgs/racket-doc/scribblings/reference/filesystem.scrbl
index e7294538ed..dee96faa68 100644
--- a/pkgs/racket-pkgs/racket-doc/scribblings/reference/filesystem.scrbl
+++ b/pkgs/racket-pkgs/racket-doc/scribblings/reference/filesystem.scrbl
@@ -996,7 +996,8 @@ paths disappear during the scan, then an exception is raised.}
 @defproc[(make-directory* [path path-string?]) void?]{
 
 Creates directory specified by @racket[path], creating intermediate
-directories as necessary.}
+directories as necessary, and never failing if @racket[path] exists
+already.}
 
 
 @defproc[(make-temporary-file [template string? "rkttmp~a"]
diff --git a/pkgs/racket-pkgs/racket-index/setup/scribble.rkt b/pkgs/racket-pkgs/racket-index/setup/scribble.rkt
index ea36853c48..02242904c5 100644
--- a/pkgs/racket-pkgs/racket-index/setup/scribble.rkt
+++ b/pkgs/racket-pkgs/racket-index/setup/scribble.rkt
@@ -23,7 +23,6 @@
          scribble/private/run-pdflatex
          setup/xref
          scribble/xref
-         unstable/file
          racket/place
          pkg/lib
          pkg/strip
@@ -1103,7 +1102,7 @@
     (unless latex-dest
       (let ([dir (doc-dest-dir doc)])
         (if (not (directory-exists? dir))
-            (make-directory*/ignore-exists-exn dir)
+            (make-directory* dir)
             (for ([f (directory-list dir)]
                   #:when
                   (and (file-exists? f)
@@ -1225,7 +1224,7 @@
   (let* ([filename (sxref-path latex-dest doc name)])
     (prep! filename)
     (when (verbose) (printf " [Caching to disk ~a]\n" filename))
-    (make-directory*/ignore-exists-exn (doc-dest-dir doc))
+    (make-directory* (doc-dest-dir doc))
     (with-compile-output 
      filename 
      (lambda (out tmp-filename)
@@ -1242,7 +1241,7 @@
   (when (and (doc-pkg? doc)
              (not (doc-under-main? doc))
              (not latex-dest))
-    (make-directory*/ignore-exists-exn (doc-dest-dir doc))
+    (make-directory* (doc-dest-dir doc))
     (with-compile-output
      (sxref-path latex-dest doc "provides.sxref")
      (lambda (out tmp-filename)
diff --git a/pkgs/unstable/scribblings/file.scrbl b/pkgs/unstable/scribblings/file.scrbl
deleted file mode 100644
index e0ba272d51..0000000000
--- a/pkgs/unstable/scribblings/file.scrbl
+++ /dev/null
@@ -1,18 +0,0 @@
-#lang scribble/doc
-@(require scribble/base
-          scribble/manual
-          "utils.rkt"
-          (for-label unstable/file
-                     racket/file
-                     racket/contract
-                     racket/base))
-
-@title[#:tag "file"]{Filesystem}
-@unstable[@author+email["Jay McCarthy" "jay@racket-lang.org"]]
-
-@defmodule[unstable/file]
-
-@defproc[(make-directory*/ignore-exists-exn [pth path-string?])
-         void]{
- Like @racket[make-directory*], except it ignores errors when the path already exists. Useful to deal with race conditions on processes that create directories.
-}
diff --git a/pkgs/unstable/scribblings/unstable.scrbl b/pkgs/unstable/scribblings/unstable.scrbl
index 2c44a38210..16a34a2794 100644
--- a/pkgs/unstable/scribblings/unstable.scrbl
+++ b/pkgs/unstable/scribblings/unstable.scrbl
@@ -81,7 +81,6 @@ Keep documentation and tests up to date.
 @include-section["debug.scrbl"]
 @include-section["define.scrbl"]
 @include-section["error.scrbl"]
-@include-section["file.scrbl"]
 @include-section["find.scrbl"]
 @include-section["flonum.scrbl"]
 @include-section["future.scrbl"]
diff --git a/racket/lib/collects/compiler/cm.rkt b/racket/lib/collects/compiler/cm.rkt
index 15a7844021..abff94cc15 100644
--- a/racket/lib/collects/compiler/cm.rkt
+++ b/racket/lib/collects/compiler/cm.rkt
@@ -3,7 +3,6 @@
          syntax/modresolve
          syntax/modread
          setup/dirs
-	 unstable/file
          racket/file
          racket/list
          racket/path
@@ -426,7 +425,7 @@
 
   ;; Write the code and dependencies:
   (when code
-    (with-compiler-security-guard (make-directory*/ignore-exists-exn code-dir))
+    (with-compiler-security-guard (make-directory* code-dir))
     (with-compile-output zo-name
       (lambda (out tmp-name)
         (with-handlers ([exn:fail?
diff --git a/racket/lib/collects/mzlib/compile.rkt b/racket/lib/collects/compiler/compile-file.rkt
similarity index 96%
rename from racket/lib/collects/mzlib/compile.rkt
rename to racket/lib/collects/compiler/compile-file.rkt
index a097b724db..2fcab1b0ed 100644
--- a/racket/lib/collects/mzlib/compile.rkt
+++ b/racket/lib/collects/compiler/compile-file.rkt
@@ -1,15 +1,14 @@
 #lang racket/base
 (require racket/function
          racket/path
-         racket/file
-         unstable/file)
+         racket/file)
 (provide compile-file)
 
 (define compile-file
   (case-lambda
     [(src)
      (define cdir (build-path (path-only src) "compiled"))
-     (make-directory*/ignore-exists-exn cdir)
+     (make-directory* cdir)
      (compile-file src (build-path cdir (path-add-suffix (file-name-from-path src) #".zo")))]
     [(src dest) 
      (compile-file src dest values)]
diff --git a/racket/lib/collects/compiler/compiler-unit.rkt b/racket/lib/collects/compiler/compiler-unit.rkt
index 32c3cdc0d2..a02c29f0ee 100644
--- a/racket/lib/collects/compiler/compiler-unit.rkt
+++ b/racket/lib/collects/compiler/compiler-unit.rkt
@@ -18,7 +18,7 @@
          syntax/moddep
 
          scheme/file
-         mzlib/compile ; gets compile-file
+         compiler/compile-file
          compiler/cm
          setup/getinfo
          setup/main-collects
diff --git a/racket/lib/collects/racket/HISTORY.txt b/racket/lib/collects/racket/HISTORY.txt
index 7916b928ce..b48254d097 100644
--- a/racket/lib/collects/racket/HISTORY.txt
+++ b/racket/lib/collects/racket/HISTORY.txt
@@ -2,6 +2,7 @@ Version 5.3.900.6
 Added identifier-binding-symbol
 Changed ".plt" file unpacking to require certain literal S-expression
  patterns, instead of evaluating S-expressions from the archive
+racket/file: make-directory* never fails on existing directories
 
 Version 5.3.900.5
 Added call-with-default-reading-parameterization
diff --git a/racket/lib/collects/racket/file.rkt b/racket/lib/collects/racket/file.rkt
index 591cec2557..f1196385ee 100644
--- a/racket/lib/collects/racket/file.rkt
+++ b/racket/lib/collects/racket/file.rkt
@@ -94,7 +94,8 @@
                (not (directory-exists? base)))
       (make-directory* base))
     (unless (directory-exists? dir)
-      (make-directory dir))))
+      (with-handlers ([exn:fail:filesystem:exists? void])
+        (make-directory dir)))))
 
 (define-syntax (make-temporary-file stx)
   (with-syntax ([app (datum->syntax stx #'#%app stx)])
diff --git a/racket/lib/collects/unstable/file.rkt b/racket/lib/collects/unstable/file.rkt
deleted file mode 100644
index ab785ff45b..0000000000
--- a/racket/lib/collects/unstable/file.rkt
+++ /dev/null
@@ -1,19 +0,0 @@
-#lang racket/base
-; Responsible: Jay McCarthy
-(require racket/contract/base)
-
-(define (exn:fail:filesystem:exists? x)
-  (and (exn:fail:filesystem? x)
-       (regexp-match #rx"exists" (exn-message x))))
-
-(define (make-directory*/ignore-exists-exn dir)
-  (let-values ([(base name dir?) (split-path dir)])
-    (when (and (path? base)
-               (not (directory-exists? base)))
-      (make-directory*/ignore-exists-exn base))
-    (unless (directory-exists? dir)
-      (with-handlers ([exn:fail:filesystem:exists? void])
-        (make-directory dir)))))
-
-(provide/contract
- [make-directory*/ignore-exists-exn (path-string? . -> . void?)])