diff --git a/CHANGELOG b/CHANGELOG
index ecc93a3b9..ab198aced 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,6 +1,10 @@
 2.8.0.dev (compared to 2.7.X)
 -----------------------------
 
+- fix issue82: avoid loading conftest files from setup.cfg/pytest.ini/tox.ini
+  files and upwards by default (--confcutdir can still be set to override this).
+  Thanks Bruno Oliveira for the PR.
+
 - fix issue768: docstrings found in python modules were not setting up session
   fixtures. Thanks Jason R. Coombs for reporting and Bruno Oliveira for the PR.
 
diff --git a/_pytest/config.py b/_pytest/config.py
index c8a79f6b5..55a3bfa88 100644
--- a/_pytest/config.py
+++ b/_pytest/config.py
@@ -894,6 +894,9 @@ class Config(object):
             self.warn("I2", "could not load setuptools entry import: %s" % (e,))
         self.pluginmanager.consider_env()
         self.known_args_namespace = ns = self._parser.parse_known_args(args)
+        if self.known_args_namespace.confcutdir is None and self.inifile:
+            confcutdir = py.path.local(self.inifile).dirname
+            self.known_args_namespace.confcutdir = confcutdir
         try:
             self.hook.pytest_load_initial_conftests(early_config=self,
                     args=args, parser=self._parser)
diff --git a/doc/en/customize.txt b/doc/en/customize.txt
index b92194999..1c1655697 100644
--- a/doc/en/customize.txt
+++ b/doc/en/customize.txt
@@ -219,3 +219,10 @@ Builtin configuration file options
 
    One or more doctest flag names from the standard ``doctest`` module.
    :doc:`See how py.test handles doctests <doctest>`.
+
+.. confval:: confcutdir
+
+   Sets a directory where search upwards for ``conftest.py`` files stops.
+   By default, pytest will stop searching for ``conftest.py`` files upwards
+   from ``pytest.ini``/``tox.ini``/``setup.cfg`` of the project if any,
+   or up to the file-system root.
diff --git a/testing/test_conftest.py b/testing/test_conftest.py
index 513ba43a5..64fa6d5e5 100644
--- a/testing/test_conftest.py
+++ b/testing/test_conftest.py
@@ -343,3 +343,44 @@ class TestConftestVisibility:
         with dirs[chdir].as_cwd():
             reprec = testdir.inline_run(testarg, "-q", "--traceconfig")
             reprec.assertoutcome(passed=expect_ntests_passed)
+
+
+@pytest.mark.parametrize('confcutdir,passed,error', [
+    ('.', 2, 0),
+    ('src', 1, 1),
+    (None, 1, 1),
+])
+def test_search_conftest_up_to_inifile(testdir, confcutdir, passed, error):
+    """Test that conftest files are detected only up to a ini file, unless
+    an explicit --confcutdir option is given.
+    """
+    root = testdir.tmpdir
+    src = root.join('src').ensure(dir=1)
+    src.join('pytest.ini').write('[pytest]')
+    src.join('conftest.py').write(py.code.Source("""
+        import pytest
+        @pytest.fixture
+        def fix1(): pass
+    """))
+    src.join('test_foo.py').write(py.code.Source("""
+        def test_1(fix1):
+            pass
+        def test_2(out_of_reach):
+            pass
+    """))
+    root.join('conftest.py').write(py.code.Source("""
+        import pytest
+        @pytest.fixture
+        def out_of_reach(): pass
+    """))
+
+    args = [str(src)]
+    if confcutdir:
+        args = ['--confcutdir=%s' % root.join(confcutdir)]
+    result = testdir.runpytest(*args)
+    match = ''
+    if passed:
+        match += '*%d passed*' % passed
+    if error:
+        match += '*%d error*' % error
+    result.stdout.fnmatch_lines(match)