diff --git a/py/test/rsession/hostmanage.py b/py/test/rsession/hostmanage.py
index 300a3a8d7..2fb70da80 100644
--- a/py/test/rsession/hostmanage.py
+++ b/py/test/rsession/hostmanage.py
@@ -17,10 +17,14 @@ class HostInfo(object):
     def __init__(self, spec):
         parts = spec.split(':', 1)
         self.hostname = parts.pop(0)
-        if parts:
+        if parts and parts[0]:
             self.relpath = parts[0]
         else:
-            self.relpath = "pytestcache-" + self.hostname 
+            self.relpath = "pytestcache-" + self.hostname
+        if spec.find(':') == -1 and self.hostname == 'localhost':
+            self.rsync_flag = False
+        else:
+            self.rsync_flag = True
         self.hostid = self._getuniqueid(self.hostname) 
 
     def _getuniqueid(self, hostname):
@@ -90,7 +94,7 @@ class HostRSync(py.execnet.RSync):
     def add_target_host(self, host, reporter=lambda x: None,
                         destrelpath=None, finishedcallback=None):
         key = host.hostname, host.relpath 
-        if key in self._synced:
+        if not host.rsync_flag or key in self._synced:
             if finishedcallback:
                 finishedcallback()
             return False
@@ -139,7 +143,7 @@ class HostManager(object):
                     host, reporter, destrelpath, finishedcallback=
                     lambda host=host, root=root: donecallback(host, root))
                 reporter(repevent.HostRSyncing(host, root, remotepath))
-            rsync.send()
+            rsync.send_if_targets()
 
     def setup_hosts(self, reporter):
         self.init_rsync(reporter)
diff --git a/py/test/rsession/testing/test_hostmanage.py b/py/test/rsession/testing/test_hostmanage.py
index e7a553e3f..fe9421bc0 100644
--- a/py/test/rsession/testing/test_hostmanage.py
+++ b/py/test/rsession/testing/test_hostmanage.py
@@ -24,7 +24,7 @@ class TestHostInfo(DirSetup):
         return hostinfo
 
     def test_defaultpath(self):
-        x = HostInfo("localhost")
+        x = HostInfo("localhost:")
         assert x.hostname == "localhost"
         assert x.relpath == "pytestcache-" + x.hostname 
 
@@ -34,11 +34,11 @@ class TestHostInfo(DirSetup):
         assert x.hostname == "localhost"
 
     def test_hostid(self):
-        x = HostInfo("localhost")
-        y = HostInfo("localhost")
+        x = HostInfo("localhost:")
+        y = HostInfo("localhost:")
         assert x.hostid != y.hostid 
         x = HostInfo("localhost:/tmp")
-        y = HostInfo("localhost")
+        y = HostInfo("localhost:")
         assert x.hostid != y.hostid 
 
     def test_non_existing_hosts(self):
@@ -192,6 +192,20 @@ class TestHostManager(DirSetup):
         assert self.dest.join("dir5","file").check()
         assert not self.dest.join("dir6").check()
 
+    def test_hostmanage_optimise_localhost(self):
+        def add_target(self, a, b, c):
+            assert 0, "Should not rsync here"
+        try:
+            config = py.test.config._reparse([self.source])
+            old_add_target = HostRSync.add_target
+            HostRSync.add_target = add_target
+            hm = HostManager(config, hosts=[HostInfo('localhost') for i in
+                                            range(3)])
+            events = []
+            hm.init_rsync(reporter=events.append)
+        finally:
+            HostRSync.add_target = old_add_target
+
 def test_getpath_relto_home():
     x = getpath_relto_home("hello")
     assert x == py.path.local._gethomedir().join("hello")