diff --git a/Makefile b/Makefile
index ea5f0be..a86ac8c 100644
--- a/Makefile
+++ b/Makefile
@@ -883,80 +883,12 @@
 $(vmlinux-dirs): prepare scripts
 	$(Q)$(MAKE) $(build)=$@
 
-# Build the kernel release string
-#
-# The KERNELRELEASE value built here is stored in the file
-# include/config/kernel.release, and is used when executing several
-# make targets, such as "make install" or "make modules_install."
-#
-# The eventual kernel release string consists of the following fields,
-# shown in a hierarchical format to show how smaller parts are concatenated
-# to form the larger and final value, with values coming from places like
-# the Makefile, kernel config options, make command line options and/or
-# SCM tag information.
-#
-#	$(KERNELVERSION)
-#	  $(VERSION)			eg, 2
-#	  $(PATCHLEVEL)			eg, 6
-#	  $(SUBLEVEL)			eg, 18
-#	  $(EXTRAVERSION)		eg, -rc6
-#	$(localver-full)
-#	  $(localver)
-#	    localversion*		(files without backups, containing '~')
-#	    $(CONFIG_LOCALVERSION)	(from kernel config setting)
-#	  $(LOCALVERSION)		(from make command line, if provided)
-#	  $(localver-extra)
-#	    $(scm-identifier)		(unique SCM tag, if one exists)
-#	      ./scripts/setlocalversion	(only with CONFIG_LOCALVERSION_AUTO)
-#	      .scmversion		(only with CONFIG_LOCALVERSION_AUTO)
-#	    +				(only without CONFIG_LOCALVERSION_AUTO
-#					 and without LOCALVERSION= and
-#					 repository is at non-tagged commit)
-#
-# For kernels without CONFIG_LOCALVERSION_AUTO compiled from an SCM that has
-# been revised beyond a tagged commit, `+' is appended to the version string
-# when not overridden by using "make LOCALVERSION=".  This indicates that the
-# kernel is not a vanilla release version and has been modified.
-
-pattern = ".*/localversion[^~]*"
-string  = $(shell cat /dev/null \
-	   `find $(objtree) $(srctree) -maxdepth 1 -regex $(pattern) | sort -u`)
-
-localver = $(subst $(space),, $(string) \
-			      $(patsubst "%",%,$(CONFIG_LOCALVERSION)))
-
-# scripts/setlocalversion is called to create a unique identifier if the source
-# is managed by a known SCM and the repository has been revised since the last
-# tagged (release) commit.  The format of the identifier is determined by the
-# SCM's implementation.
-#
-# .scmversion is used when generating rpm packages so we do not loose
-# the version information from the SCM when we do the build of the kernel
-# from the copied source
-ifeq ($(wildcard .scmversion),)
-        scm-identifier = $(shell $(CONFIG_SHELL) \
-                         $(srctree)/scripts/setlocalversion $(srctree))
-else
-        scm-identifier = $(shell cat .scmversion 2> /dev/null)
-endif
-
-ifdef CONFIG_LOCALVERSION_AUTO
-	localver-extra = $(scm-identifier)
-else
-	ifneq ($(scm-identifier),)
-		ifeq ($(LOCALVERSION),)
-			localver-extra = +
-		endif
-	endif
-endif
-
-localver-full = $(localver)$(LOCALVERSION)$(localver-extra)
-
 # Store (new) KERNELRELASE string in include/config/kernel.release
-kernelrelease = $(KERNELVERSION)$(localver-full)
+localversion = $(shell $(CONFIG_SHELL) \
+	       $(srctree)/scripts/setlocalversion $(srctree))
 include/config/kernel.release: include/config/auto.conf FORCE
 	$(Q)rm -f $@
-	$(Q)echo $(kernelrelease) > $@
+	$(Q)echo $(KERNELVERSION)$(localversion) > $@
 
 
 # Things we need to do before we recursively start building the kernel
diff --git a/scripts/package/Makefile b/scripts/package/Makefile
index 62fcc3a..3a681ef 100644
--- a/scripts/package/Makefile
+++ b/scripts/package/Makefile
@@ -44,7 +44,7 @@
 	fi
 	$(MAKE) clean
 	$(PREV) ln -sf $(srctree) $(KERNELPATH)
-	$(CONFIG_SHELL) $(srctree)/scripts/setlocalversion > $(objtree)/.scmversion
+	$(CONFIG_SHELL) $(srctree)/scripts/setlocalversion --scm-only > $(objtree)/.scmversion
 	$(PREV) tar -cz $(RCS_TAR_IGNORE) -f $(KERNELPATH).tar.gz $(KERNELPATH)/.
 	$(PREV) rm $(KERNELPATH)
 	rm -f $(objtree)/.scmversion
diff --git a/scripts/setlocalversion b/scripts/setlocalversion
index 46989b8..d6a866e 100755
--- a/scripts/setlocalversion
+++ b/scripts/setlocalversion
@@ -10,73 +10,158 @@
 #
 
 usage() {
-	echo "Usage: $0 [srctree]" >&2
+	echo "Usage: $0 [--scm-only] [srctree]" >&2
 	exit 1
 }
 
-cd "${1:-.}" || usage
+scm_only=false
+srctree=.
+if test "$1" = "--scm-only"; then
+	scm_only=true
+	shift
+fi
+if test $# -gt 0; then
+	srctree=$1
+	shift
+fi
+if test $# -gt 0 -o ! -d "$srctree"; then
+	usage
+fi
 
-# Check for git and a git repo.
-if head=`git rev-parse --verify --short HEAD 2>/dev/null`; then
+scm_version()
+{
+	local short=false
 
-	# If we are at a tagged commit (like "v2.6.30-rc6"), we ignore it,
-	# because this version is defined in the top level Makefile.
-	if [ -z "`git describe --exact-match 2>/dev/null`" ]; then
+	cd "$srctree"
+	if test -e .scmversion; then
+		cat "$_"
+		return
+	fi
+	if test "$1" = "--short"; then
+		short=true
+	fi
 
-		# If we are past a tagged commit (like "v2.6.30-rc5-302-g72357d5"),
-		# we pretty print it.
-		if atag="`git describe 2>/dev/null`"; then
-			echo "$atag" | awk -F- '{printf("-%05d-%s", $(NF-1),$(NF))}'
+	# Check for git and a git repo.
+	if head=`git rev-parse --verify --short HEAD 2>/dev/null`; then
 
-		# If we don't have a tag at all we print -g{commitish}.
-		else
-			printf '%s%s' -g $head
+		# If we are at a tagged commit (like "v2.6.30-rc6"), we ignore
+		# it, because this version is defined in the top level Makefile.
+		if [ -z "`git describe --exact-match 2>/dev/null`" ]; then
+
+			# If only the short version is requested, don't bother
+			# running further git commands
+			if $short; then
+				echo "+"
+				return
+			fi
+			# If we are past a tagged commit (like
+			# "v2.6.30-rc5-302-g72357d5"), we pretty print it.
+			if atag="`git describe 2>/dev/null`"; then
+				echo "$atag" | awk -F- '{printf("-%05d-%s", $(NF-1),$(NF))}'
+
+			# If we don't have a tag at all we print -g{commitish}.
+			else
+				printf '%s%s' -g $head
+			fi
 		fi
+
+		# Is this git on svn?
+		if git config --get svn-remote.svn.url >/dev/null; then
+			printf -- '-svn%s' "`git svn find-rev $head`"
+		fi
+
+		# Update index only on r/w media
+		[ -w . ] && git update-index --refresh --unmerged > /dev/null
+
+		# Check for uncommitted changes
+		if git diff-index --name-only HEAD | grep -v "^scripts/package" \
+		    | read dummy; then
+			printf '%s' -dirty
+		fi
+
+		# All done with git
+		return
 	fi
 
-	# Is this git on svn?
-	if git config --get svn-remote.svn.url >/dev/null; then
-	        printf -- '-svn%s' "`git svn find-rev $head`"
+	# Check for mercurial and a mercurial repo.
+	if hgid=`hg id 2>/dev/null`; then
+		tag=`printf '%s' "$hgid" | cut -d' ' -f2`
+
+		# Do we have an untagged version?
+		if [ -z "$tag" -o "$tag" = tip ]; then
+			id=`printf '%s' "$hgid" | sed 's/[+ ].*//'`
+			printf '%s%s' -hg "$id"
+		fi
+
+		# Are there uncommitted changes?
+		# These are represented by + after the changeset id.
+		case "$hgid" in
+			*+|*+\ *) printf '%s' -dirty ;;
+		esac
+
+		# All done with mercurial
+		return
 	fi
 
-	# Update index only on r/w media
-	[ -w . ] && git update-index --refresh --unmerged > /dev/null
+	# Check for svn and a svn repo.
+	if rev=`svn info 2>/dev/null | grep '^Last Changed Rev'`; then
+		rev=`echo $rev | awk '{print $NF}'`
+		printf -- '-svn%s' "$rev"
 
-	# Check for uncommitted changes
-	if git diff-index --name-only HEAD | grep -v "^scripts/package" \
-	    | read dummy; then
-		printf '%s' -dirty
+		# All done with svn
+		return
 	fi
+}
 
-	# All done with git
+collect_files()
+{
+	local file res
+
+	for file; do
+		case "$file" in
+		*\~*)
+			continue
+			;;
+		esac
+		if test -e "$file"; then
+			res="$res$(cat "$file")"
+		fi
+	done
+	echo "$res"
+}
+
+if $scm_only; then
+	scm_version
 	exit
 fi
 
-# Check for mercurial and a mercurial repo.
-if hgid=`hg id 2>/dev/null`; then
-	tag=`printf '%s' "$hgid" | cut -d' ' -f2`
+if test -e include/config/auto.conf; then
+	source "$_"
+else
+	echo "Error: kernelrelease not valid - run 'make prepare' to update it"
+	exit 1
+fi
 
-	# Do we have an untagged version?
-	if [ -z "$tag" -o "$tag" = tip ]; then
-		id=`printf '%s' "$hgid" | sed 's/[+ ].*//'`
-		printf '%s%s' -hg "$id"
+# localversion* files in the build and source directory
+res="$(collect_files localversion*)"
+if test ! "$srctree" -ef .; then
+	res="$res$(collect_files "$srctree"/localversion*)"
+fi
+
+# CONFIG_LOCALVERSION and LOCALVERSION (if set)
+res="${res}${CONFIG_LOCALVERSION}${LOCALVERSION}"
+
+# scm version string if not at a tagged commit
+if test "$CONFIG_LOCALVERSION_AUTO" = "y"; then
+	# full scm version string
+	res="$res$(scm_version)"
+else
+	# apped a plus sign if the repository is not in a clean tagged
+	# state and  LOCALVERSION= is not specified
+	if test "${LOCALVERSION+set}" != "set"; then
+		scm=$(scm_version --short)
+		res="$res${scm:++}"
 	fi
-
-	# Are there uncommitted changes?
-	# These are represented by + after the changeset id.
-	case "$hgid" in
-		*+|*+\ *) printf '%s' -dirty ;;
-	esac
-
-	# All done with mercurial
-	exit
 fi
 
-# Check for svn and a svn repo.
-if rev=`svn info 2>/dev/null | grep '^Last Changed Rev'`; then
-	rev=`echo $rev | awk '{print $NF}'`
-	printf -- '-svn%s' "$rev"
-
-	# All done with svn
-	exit
-fi
+echo "$res"