diff --git a/doc/ca65.sgml b/doc/ca65.sgml
index bb944052e..348c20390 100644
--- a/doc/ca65.sgml
+++ b/doc/ca65.sgml
@@ -2273,6 +2273,13 @@ Here's a list of all control commands and a description, what they do:
     <bf/Note:/ This does not work in conjunction with <tt/.FEATURE
     loose_string_term/, since in this case the input would be ambiguous.
 
+  <tag><tt>org_per_seg</tt><label id="org_per_seg"></tag>
+
+    This feature makes relocatable/absolute mode local to the current segment.
+    Using <tt><ref id=".ORG" name=".ORG"></tt> when <tt/org_per_seg/ is in
+    effect will only enable absolute mode for the current segment. Dito for
+    <tt><ref id=".RELOC" name=".RELOC"></tt>.
+
   <tag><tt>pc_assignment</tt></tag>
 
     Allow assignments to the PC symbol (`*' or `&dollar;' if <tt/dollar_is_pc/
@@ -2798,12 +2805,14 @@ Here's a list of all control commands and a description, what they do:
   assembled. Use <tt><ref id=".RELOC" name=".RELOC"></tt> to switch back to
   relocatable code.
 
-  Please note that you <em/do not need/ this command in most cases. Placing
+  By default, absolute/relocatable mode is global (valid even when switching
+  segments). Using <tt>.FEATURE <ref id="org_per_seg" name="org_per_seg"></tt>
+  it can be made segment local.
+
+  Please note that you <em/do not need/ <tt/.ORG/ in most cases. Placing
   code at a specific address is the job of the linker, not the assembler, so
   there is usually no reason to assemble code to a specific address.
 
-  You may not switch segments while inside a section of absolute code.
-
   Example:
 
   <tscreen><verb>
diff --git a/src/ca65/expr.c b/src/ca65/expr.c
index f9258c531..fc64f29c7 100644
--- a/src/ca65/expr.c
+++ b/src/ca65/expr.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2006 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 1998-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -1482,7 +1482,7 @@ ExprNode* GenCurrentPC (void)
 {
     ExprNode* Root;
 
-    if (RelocMode) {
+    if (GetRelocMode ()) {
 	/* Create SegmentBase + Offset */
        	Root = GenAddExpr (GenSectionExpr (GetCurrentSegNum ()),
                            GenLiteralExpr (GetPC ()));
@@ -1531,7 +1531,7 @@ ExprNode* GenBranchExpr (unsigned Offs)
          * (Val - PC - Offs) - Seg
          */
         Root = GenLiteralExpr (Val - GetPC () - Offs);
-        if (RelocMode) {
+        if (GetRelocMode ()) {
             N = Root;
             Root = NewExprNode (EXPR_MINUS);
             Root->Left  = N;
@@ -1549,7 +1549,7 @@ ExprNode* GenBranchExpr (unsigned Offs)
         Root = NewExprNode (EXPR_MINUS);
         Root->Left  = N;
         Root->Right = GenLiteralExpr (GetPC () + Offs);
-        if (RelocMode) {
+        if (GetRelocMode ()) {
             N = Root;
             Root = NewExprNode (EXPR_MINUS);
             Root->Left  = N;
diff --git a/src/ca65/feature.c b/src/ca65/feature.c
index 91b0ae092..e5a0d4a28 100644
--- a/src/ca65/feature.c
+++ b/src/ca65/feature.c
@@ -56,6 +56,7 @@ static const char* FeatureKeys[FEAT_COUNT] = {
     "at_in_identifiers",
     "dollar_in_identifiers",
     "leading_dot_in_identifiers",
+    "org_per_seg",
     "pc_assignment",
     "missing_char_term",
     "ubiquitous_idents",
@@ -108,10 +109,11 @@ feature_t SetFeature (const char* Key)
      	case FEAT_AT_IN_IDENTIFIERS:	      AtInIdents	= 1;	break;
      	case FEAT_DOLLAR_IN_IDENTIFIERS:      DollarInIdents	= 1;	break;
        	case FEAT_LEADING_DOT_IN_IDENTIFIERS: LeadingDotInIdents= 1;    break;
+        case FEAT_ORG_PER_SEG:                OrgPerSeg         = 1;    break;
      	case FEAT_PC_ASSIGNMENT:	      PCAssignment	= 1;	break;
         case FEAT_MISSING_CHAR_TERM:          MissingCharTerm   = 1;    break;
         case FEAT_UBIQUITOUS_IDENTS:          UbiquitousIdents  = 1;    break;
-	default:     			 /* Keep gcc silent */	        break;
+	default:      			 /* Keep gcc silent */	        break;
     }
 
     /* Return the value found */
diff --git a/src/ca65/feature.h b/src/ca65/feature.h
index 2b8ec5ad3..a297effff 100644
--- a/src/ca65/feature.h
+++ b/src/ca65/feature.h
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 2000-2003 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 2000-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -45,7 +45,7 @@
 
 
 typedef enum {
-    FEAT_UNKNOWN		= -1,
+    FEAT_UNKNOWN 		= -1,
     FEAT_DOLLAR_IS_PC,
     FEAT_LABELS_WITHOUT_COLONS,
     FEAT_LOOSE_STRING_TERM,
@@ -53,6 +53,7 @@ typedef enum {
     FEAT_AT_IN_IDENTIFIERS,
     FEAT_DOLLAR_IN_IDENTIFIERS,
     FEAT_LEADING_DOT_IN_IDENTIFIERS,
+    FEAT_ORG_PER_SEG,
     FEAT_PC_ASSIGNMENT,
     FEAT_MISSING_CHAR_TERM,
     FEAT_UBIQUITOUS_IDENTS,
diff --git a/src/ca65/global.c b/src/ca65/global.c
index 2449ce44e..dea1dc690 100644
--- a/src/ca65/global.c
+++ b/src/ca65/global.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2004 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 1998-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -65,7 +65,7 @@ unsigned char DbgSyms	         = 0;   /* Add debug symbols */
 unsigned char Listing  	         = 0;   /* Create listing file */
 unsigned char LineCont	         = 0;   /* Allow line continuation */
 
-/* Emulation features */
+/* Emulation features */                
 unsigned char DollarIsPC         = 0;   /* Allow the $ symbol as current PC */
 unsigned char NoColonLabels      = 0;   /* Allow labels without a colon */
 unsigned char LooseStringTerm    = 0;	/* Allow ' as string terminator */
@@ -76,6 +76,7 @@ unsigned char LeadingDotInIdents = 0;   /* Allow '.' to start an identifier */
 unsigned char PCAssignment       = 0;	/* Allow "* = $XXX" or "$ = $XXX" */
 unsigned char MissingCharTerm    = 0;   /* Allow lda #'a (no closing term) */
 unsigned char UbiquitousIdents   = 0;   /* Allow ubiquitous identifiers */
+unsigned char OrgPerSeg          = 0;   /* Make .org local to current seg */
 
 /* Misc stuff */
 const char Copyright[]           = "(C) Copyright 1998-2005 Ullrich von Bassewitz";
diff --git a/src/ca65/global.h b/src/ca65/global.h
index 472800062..3d286c408 100644
--- a/src/ca65/global.h
+++ b/src/ca65/global.h
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2004 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 1998-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -73,6 +73,7 @@ extern unsigned char    LeadingDotInIdents; /* Allow '.' to start an identifier
 extern unsigned char   	PCAssignment;  	    /* Allow "* = $XXX" or "$ = $XXX" */
 extern unsigned char    MissingCharTerm;    /* Allow lda #'a (no closing term) */
 extern unsigned char    UbiquitousIdents;   /* Allow ubiquitous identifiers */
+extern unsigned char    OrgPerSeg;          /* Make .org local to current seg */
 
 /* Misc stuff */
 extern const char       Copyright[];        /* Copyright string */
diff --git a/src/ca65/listing.c b/src/ca65/listing.c
index f18ac5910..ad97d4b50 100644
--- a/src/ca65/listing.c
+++ b/src/ca65/listing.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 2000-2003 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 2000-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -105,7 +105,7 @@ void NewListingLine (const char* Line, unsigned char File, unsigned char Depth)
 	L->FragList	= 0;
 	L->FragLast 	= 0;
 	L->PC  		= GetPC ();
-	L->Reloc	= RelocMode;
+	L->Reloc	= GetRelocMode ();
 	L->File		= File;
      	L->Depth	= Depth;
 	L->Output	= (ListingEnabled > 0);
@@ -181,7 +181,7 @@ void InitListingLine (void)
 		/* Set the values for this line */
 		CHECK (L != 0);
 		L->PC    	 = GetPC ();
-		L->Reloc	 = RelocMode;
+		L->Reloc	 = GetRelocMode ();
 		L->Output  	 = (ListingEnabled > 0);
 		L->ListBytes = (unsigned char) ListBytes;
 	    } while (L->Next != LineLast);
@@ -191,7 +191,7 @@ void InitListingLine (void)
       	/* Set the values for this line */
       	CHECK (LineCur != 0);
       	LineCur->PC    	    = GetPC ();
-      	LineCur->Reloc	    = RelocMode;
+      	LineCur->Reloc	    = GetRelocMode ();
       	LineCur->Output	    = (ListingEnabled > 0);
        	LineCur->ListBytes  = (unsigned char) ListBytes;
     }
diff --git a/src/ca65/main.c b/src/ca65/main.c
index 1ccef1fc4..b8a8935a3 100644
--- a/src/ca65/main.c
+++ b/src/ca65/main.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2005, Ullrich von Bassewitz                                      */
-/*                Römerstraße 52                                             */
+/* (C) 1998-2007, Ullrich von Bassewitz                                      */
+/*                Roemerstrasse 52                                           */
 /*                D-70794 Filderstadt                                        */
 /* EMail:         uz@cc65.org                                                */
 /*                                                                           */
@@ -511,7 +511,7 @@ static void DoPCAssign (void)
     if (PC < 0 || PC > 0xFFFFFF) {
 	Error ("Range error");
     } else {
-	SetAbsPC (PC);
+	EnterAbsoluteMode (PC);
     }
 }
 
diff --git a/src/ca65/pseudo.c b/src/ca65/pseudo.c
index cca2fbe69..cd05d182f 100644
--- a/src/ca65/pseudo.c
+++ b/src/ca65/pseudo.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2005, Ullrich von Bassewitz                                      */
-/*                Römerstraße 52                                             */
+/* (C) 1998-2007, Ullrich von Bassewitz                                      */
+/*                Roemerstrasse 52                                           */
 /*                D-70794 Filderstadt                                        */
 /* EMail:         uz@cc65.org                                                */
 /*                                                                           */
@@ -1248,7 +1248,7 @@ static void DoOrg (void)
 	Error ("Range error");
     	return;
     }
-    SetAbsPC (PC);
+    EnterAbsoluteMode (PC);
 }
 
 
@@ -1391,7 +1391,7 @@ static void DoPushSeg (void)
 static void DoReloc (void)
 /* Enter relocatable mode */
 {
-    RelocMode = 1;
+    EnterRelocMode ();
 }
 
 
diff --git a/src/ca65/segment.c b/src/ca65/segment.c
index 2f23e2069..0f07ce52b 100644
--- a/src/ca65/segment.c
+++ b/src/ca65/segment.c
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2003 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 1998-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -63,13 +63,15 @@
 
 
 
-/* Are we in absolute mode or in relocatable mode? */
-int 		RelocMode = 1;
-unsigned long	AbsPC	  = 0;		/* PC if in absolute mode */
+/* If OrgPerSeg is false, all segments share the RelocMode flag and a PC
+ * used when in absolute mode. OrgPerSeg may be set by .feature org_per_seg
+ */
+static int              RelocMode = 1;
+static unsigned long    AbsPC	  = 0;		/* PC if in absolute mode */
 
 /* Segment initializer macro */
 #define SEG(segdef, num, prev)      \
-    { prev, 0, 0, 0, num, 0, 0, segdef }
+    { prev, 0, 0, 0, num, 0, 1, 0, 0, segdef }
 
 /* Definitions for predefined segments */
 SegDef NullSegDef     = STATIC_SEGDEF_INITIALIZER (SEGNAME_NULL,     ADDR_SIZE_ABS);
@@ -130,7 +132,9 @@ static Segment* NewSegment (const char* Name, unsigned char AddrSize)
     S->FragCount = 0;
     S->Num       = SegmentCount++;
     S->Align     = 0;
+    S->RelocMode = 1;
     S->PC        = 0;
+    S->AbsPC     = 0;
     S->Def       = NewSegDef (Name, AddrSize);
 
     /* Insert it into the segment list */
@@ -170,8 +174,16 @@ Fragment* GenFragment (unsigned char Type, unsigned short Len)
 
     /* Increment the program counter */
     ActiveSeg->PC += F->Len;
-    if (!RelocMode) {
-	AbsPC += F->Len;
+    if (OrgPerSeg) {
+        /* Relocatable mode is switched per segment */
+        if (!ActiveSeg->RelocMode) {
+            ActiveSeg->AbsPC += F->Len;
+        }
+    } else {
+        /* Relocatable mode is switched globally */
+        if (!RelocMode) {
+            AbsPC += F->Len;
+        }
     }
 
     /* Return the fragment */
@@ -214,16 +226,61 @@ void UseSeg (const SegDef* D)
 unsigned long GetPC (void)
 /* Get the program counter of the current segment */
 {
-    return RelocMode? ActiveSeg->PC : AbsPC;
+    if (OrgPerSeg) {
+        /* Relocatable mode is switched per segment */
+        return ActiveSeg->RelocMode? ActiveSeg->PC : ActiveSeg->AbsPC;
+    } else {
+        /* Relocatable mode is switched globally */
+        return RelocMode? ActiveSeg->PC : AbsPC;
+    }
 }
 
 
 
-void SetAbsPC (unsigned long PC)
-/* Set the program counter in absolute mode */
+void EnterAbsoluteMode (unsigned long PC)
+/* Enter absolute (non relocatable mode). Depending on the OrgPerSeg flag,
+ * this will either switch the mode globally or for the current segment.
+ */
 {
-    RelocMode = 0;
-    AbsPC = PC;
+    if (OrgPerSeg) {
+        /* Relocatable mode is switched per segment */
+        ActiveSeg->RelocMode = 0;
+        ActiveSeg->AbsPC = PC;
+    } else {
+        /* Relocatable mode is switched globally */
+        RelocMode = 0;
+        AbsPC = PC;
+    }
+}
+
+
+
+int GetRelocMode (void)
+/* Return true if we're currently in relocatable mode */
+{
+    if (OrgPerSeg) {
+        /* Relocatable mode is switched per segment */
+        return ActiveSeg->RelocMode;
+    } else {
+        /* Relocatable mode is switched globally */
+        return RelocMode;
+    }
+}
+
+
+
+void EnterRelocMode (void)
+/* Enter relocatable mode. Depending on the OrgPerSeg flag, this will either
+ * switch the mode globally or for the current segment.
+ */
+{
+    if (OrgPerSeg) {
+        /* Relocatable mode is switched per segment */
+        ActiveSeg->RelocMode = 1;
+    } else {
+        /* Relocatable mode is switched globally */
+        RelocMode = 1;
+    }
 }
 
 
diff --git a/src/ca65/segment.h b/src/ca65/segment.h
index fb0a02dd4..e1e902783 100644
--- a/src/ca65/segment.h
+++ b/src/ca65/segment.h
@@ -6,8 +6,8 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 1998-2003 Ullrich von Bassewitz                                       */
-/*               Römerstraße 52                                              */
+/* (C) 1998-2007 Ullrich von Bassewitz                                       */
+/*               Roemerstrasse 52                                            */
 /*               D-70794 Filderstadt                                         */
 /* EMail:        uz@cc65.org                                                 */
 /*                                                                           */
@@ -63,13 +63,13 @@ struct Segment {
     unsigned long   FragCount;          /* Number of fragments */
     unsigned        Num;       		/* Segment number */
     unsigned        Align;     		/* Segment alignment */
-    unsigned long   PC;
+    int             RelocMode;          /* Relocatable mode if OrgPerSeg */
+    unsigned long   PC;                 /* PC if in relocatable mode */
+    unsigned long   AbsPC;              /* PC if in local absolute mode */
+                                        /* (OrgPerSeg is true) */
     SegDef*         Def;                /* Segment definition (name and type) */
 };
 
-/* Are we in absolute mode or in relocatable mode? */
-extern int RelocMode;
-
 /* Definitions for predefined segments */
 extern SegDef NullSegDef;
 extern SegDef ZeropageSegDef;
@@ -140,8 +140,18 @@ unsigned char GetSegAddrSize (unsigned SegNum);
 unsigned long GetPC (void);
 /* Get the program counter of the current segment */
 
-void SetAbsPC (unsigned long AbsPC);
-/* Set the program counter in absolute mode */
+int GetRelocMode (void);
+/* Return true if we're currently in relocatable mode */
+
+void EnterAbsoluteMode (unsigned long AbsPC);
+/* Enter absolute (non relocatable mode). Depending on the OrgPerSeg flag,
+ * this will either switch the mode globally or for the current segment.
+ */
+
+void EnterRelocMode (void);
+/* Enter relocatable mode. Depending on the OrgPerSeg flag, this will either
+ * switch the mode globally or for the current segment.
+ */
 
 void SegCheck (void);
 /* Check the segments for range and other errors */