diff --git a/py/test/rsession/hostmanage.py b/py/test/rsession/hostmanage.py
index 257ce6d4b..b6c00a46e 100644
--- a/py/test/rsession/hostmanage.py
+++ b/py/test/rsession/hostmanage.py
@@ -106,7 +106,8 @@ class HostRSync(py.execnet.RSync):
         return remotepath 
 
 class HostManager(object):
-    def __init__(self, config, hosts=None):
+    def __init__(self, config, hosts=None, optimise_localhost=False):
+        self.optimise_localhost = optimise_localhost
         self.config = config
         if hosts is None:
             hosts = self.config.getvalue("dist_hosts")
@@ -132,14 +133,21 @@ class HostManager(object):
             rsync = HostRSync(ignores=ignores, 
                               verbose=self.config.option.verbose)
             destrelpath = root.relto(self.config.topdir)
+            to_send = False
             for host in self.hosts:
-                def donecallback(host, root):
+                if host.hostname != 'localhost' or not self.optimise_localhost:
+                    def donecallback(host=host, root=root):
+                        reporter(repevent.HostRSyncRootReady(host, root))
+                    remotepath = rsync.add_target_host(
+                        host, reporter, destrelpath, finishedcallback=
+                        donecallback)
+                    reporter(repevent.HostRSyncing(host, root, remotepath))
+                    to_send = True
+                else:
                     reporter(repevent.HostRSyncRootReady(host, root))
-                remotepath = rsync.add_target_host(
-                    host, reporter, destrelpath, finishedcallback=
-                    lambda host=host, root=root: donecallback(host, root))
-                reporter(repevent.HostRSyncing(host, root, remotepath))
-            rsync.send(root)
+            if to_send:
+                # don't send if we have no targets
+                rsync.send(root)
 
     def setup_hosts(self, reporter):
         self.init_rsync(reporter)
@@ -153,7 +161,14 @@ class HostManager(object):
     def teardown_hosts(self, reporter, channels, nodes,
                        waiter=lambda : time.sleep(.1), exitfirst=False):
         for channel in channels:
-            channel.send(None)
+            try:
+                channel.send(None)
+            except IOError:
+                print "Sending error, channel IOError"
+                print channel._getremoterror()
+                # XXX: this should go as soon as we'll have proper detection
+                #      of hanging nodes and such
+                raise
     
         clean = exitfirst
         while not clean:
@@ -166,7 +181,11 @@ class HostManager(object):
 
     def kill_channels(self, channels):
         for channel in channels:
-            channel.send(42)
+            try:
+                channel.send(42)
+            except IOError:
+                print "Sending error, channel IOError"
+                print channel._getremoterror()
 
     def teardown_gateways(self, reporter, channels):
         for channel in channels:
diff --git a/py/test/rsession/testing/test_hostmanage.py b/py/test/rsession/testing/test_hostmanage.py
index 31e6df74f..c48f350c3 100644
--- a/py/test/rsession/testing/test_hostmanage.py
+++ b/py/test/rsession/testing/test_hostmanage.py
@@ -192,6 +192,19 @@ class TestHostManager(DirSetup):
         assert self.dest.join("dir5","file").check()
         assert not self.dest.join("dir6").check()
 
+    def test_hostmanager_rsync_optimise_localhost(self):
+        dir1 = self.source.ensure("opt_localhost1", dir=1)
+        config = py.test.config._reparse([self.source])
+        hm = HostManager(config,
+                         hosts=[HostInfo("localhost:" + str(self.dest))],
+                         optimise_localhost=True)
+        events = []
+        hm.init_rsync(reporter=events.append)
+        rr = [i for i in events if isinstance(i, repevent.HostRSyncRootReady)]
+        assert len(rr) == 1
+        hr = [i for i in events if isinstance(i, repevent.HostRSyncing)]
+        assert len(hr) == 0
+
 def test_getpath_relto_home():
     x = getpath_relto_home("hello")
     assert x == py.path.local._gethomedir().join("hello")