diff --git a/_py/test/pycollect.py b/_py/test/pycollect.py
index 8e6fc4111..f2fbf324a 100644
--- a/_py/test/pycollect.py
+++ b/_py/test/pycollect.py
@@ -161,13 +161,24 @@ class Module(py.test.collect.File, PyCollectorMixin):
     def setup(self): 
         if getattr(self.obj, 'disabled', 0):
             py.test.skip("%r is disabled" %(self.obj,))
-        mod = self.obj
-        if hasattr(mod, 'setup_module'): 
-            self.obj.setup_module(mod)
+        if hasattr(self.obj, 'setup_module'): 
+            #XXX: nose compat hack, move to nose plugin
+            # if it takes a positional arg, its probably a py.test style one
+            # so we pass the current module object
+            if inspect.getargspec(self.obj.setup_module)[0]:
+                self.obj.setup_module(self.obj)
+            else:
+                self.obj.setup_module()
 
     def teardown(self): 
         if hasattr(self.obj, 'teardown_module'): 
-            self.obj.teardown_module(self.obj) 
+            #XXX: nose compat hack, move to nose plugin
+            # if it takes a positional arg, its probably a py.test style one
+            # so we pass the current module object
+            if inspect.getargspec(self.obj.teardown_module)[0]:
+                self.obj.teardown_module(self.obj)
+            else:
+                self.obj.teardown_module()
 
 class Class(PyCollectorMixin, py.test.collect.Collector): 
 
diff --git a/testing/pytest/plugin/test_pytest_nose.py b/testing/pytest/plugin/test_pytest_nose.py
index bb8b80d5f..fea4f0cf8 100644
--- a/testing/pytest/plugin/test_pytest_nose.py
+++ b/testing/pytest/plugin/test_pytest_nose.py
@@ -115,3 +115,24 @@ def test_module_level_setup(testdir):
     result.stdout.fnmatch_lines([
         "*2 passed*",
     ])
+
+def test_nose_style_setup_teardown(testdir):
+    testdir.makepyfile("""
+        l = []
+        def setup_module():
+            l.append(1)
+
+        def teardown_module():
+            del l[0]
+
+        def test_hello():
+            assert l == [1]
+
+        def test_world():
+            assert l == [1]
+        """)
+    result = testdir.runpytest('-p', 'nose')
+    result.stdout.fnmatch_lines([
+        "*2 passed*",
+    ])
+