diff --git a/src/backend/parser/parse_clause.c b/src/backend/parser/parse_clause.c
index 6f7a004a6c..c15dd9b789 100644
--- a/src/backend/parser/parse_clause.c
+++ b/src/backend/parser/parse_clause.c
@@ -8,7 +8,7 @@
  *
  *
  * IDENTIFICATION
- *	  $PostgreSQL: pgsql/src/backend/parser/parse_clause.c,v 1.127 2004/01/23 02:13:12 neilc Exp $
+ *	  $PostgreSQL: pgsql/src/backend/parser/parse_clause.c,v 1.128 2004/04/18 18:12:57 tgl Exp $
  *
  *-------------------------------------------------------------------------
  */
@@ -1140,10 +1140,18 @@ findTargetlistEntry(ParseState *pstate, Node *node, List *tlist, int clause)
 			 * is a matching column.  If so, fall through to let
 			 * transformExpr() do the rest.  NOTE: if name could refer
 			 * ambiguously to more than one column name exposed by FROM,
-			 * colnameToVar will ereport(ERROR).  That's just what we want
+			 * colNameToVar will ereport(ERROR).  That's just what we want
 			 * here.
+			 *
+			 * Small tweak for 7.4.3: ignore matches in upper query levels.
+			 * This effectively changes the search order for bare names to
+			 * (1) local FROM variables, (2) local targetlist aliases,
+			 * (3) outer FROM variables, whereas before it was (1) (3) (2).
+			 * SQL92 and SQL99 do not allow GROUPing BY an outer reference,
+			 * so this breaks no cases that are legal per spec, and it
+			 * seems a more self-consistent behavior.
 			 */
-			if (colnameToVar(pstate, name) != NULL)
+			if (colNameToVar(pstate, name, true) != NULL)
 				name = NULL;
 		}
 
diff --git a/src/backend/parser/parse_expr.c b/src/backend/parser/parse_expr.c
index acee2b300e..2747ec3ed4 100644
--- a/src/backend/parser/parse_expr.c
+++ b/src/backend/parser/parse_expr.c
@@ -8,7 +8,7 @@
  *
  *
  * IDENTIFICATION
- *	  $PostgreSQL: pgsql/src/backend/parser/parse_expr.c,v 1.168 2004/04/02 19:06:58 tgl Exp $
+ *	  $PostgreSQL: pgsql/src/backend/parser/parse_expr.c,v 1.169 2004/04/18 18:12:58 tgl Exp $
  *
  *-------------------------------------------------------------------------
  */
@@ -966,7 +966,7 @@ transformColumnRef(ParseState *pstate, ColumnRef *cref)
 				char	   *name = strVal(lfirst(cref->fields));
 
 				/* Try to identify as an unqualified column */
-				node = colnameToVar(pstate, name);
+				node = colNameToVar(pstate, name, false);
 
 				if (node == NULL)
 				{
diff --git a/src/backend/parser/parse_relation.c b/src/backend/parser/parse_relation.c
index 4df92ee310..de4bf093ee 100644
--- a/src/backend/parser/parse_relation.c
+++ b/src/backend/parser/parse_relation.c
@@ -8,7 +8,7 @@
  *
  *
  * IDENTIFICATION
- *	  $PostgreSQL: pgsql/src/backend/parser/parse_relation.c,v 1.93 2004/04/02 19:06:58 tgl Exp $
+ *	  $PostgreSQL: pgsql/src/backend/parser/parse_relation.c,v 1.94 2004/04/18 18:12:58 tgl Exp $
  *
  *-------------------------------------------------------------------------
  */
@@ -531,13 +531,14 @@ scanRTEForColumn(ParseState *pstate, RangeTblEntry *rte, char *colname)
 }
 
 /*
- * colnameToVar
+ * colNameToVar
  *	  Search for an unqualified column name.
  *	  If found, return the appropriate Var node (or expression).
  *	  If not found, return NULL.  If the name proves ambiguous, raise error.
+ *	  If localonly is true, only names in the innermost query are considered.
  */
 Node *
-colnameToVar(ParseState *pstate, char *colname)
+colNameToVar(ParseState *pstate, char *colname, bool localonly)
 {
 	Node	   *result = NULL;
 	ParseState *orig_pstate = pstate;
@@ -594,8 +595,8 @@ colnameToVar(ParseState *pstate, char *colname)
 			}
 		}
 
-		if (result != NULL)
-			break;				/* found */
+		if (result != NULL || localonly)
+			break;				/* found, or don't want to look at parent */
 
 		pstate = pstate->parentParseState;
 		levels_up++;
diff --git a/src/include/parser/parse_relation.h b/src/include/parser/parse_relation.h
index 0fa75d0297..724639dd96 100644
--- a/src/include/parser/parse_relation.h
+++ b/src/include/parser/parse_relation.h
@@ -7,7 +7,7 @@
  * Portions Copyright (c) 1996-2003, PostgreSQL Global Development Group
  * Portions Copyright (c) 1994, Regents of the University of California
  *
- * $PostgreSQL: pgsql/src/include/parser/parse_relation.h,v 1.43 2004/04/02 19:07:02 tgl Exp $
+ * $PostgreSQL: pgsql/src/include/parser/parse_relation.h,v 1.44 2004/04/18 18:12:58 tgl Exp $
  *
  *-------------------------------------------------------------------------
  */
@@ -32,7 +32,7 @@ extern RangeTblEntry *GetRTEByRangeTablePosn(ParseState *pstate,
 											 int sublevels_up);
 extern Node *scanRTEForColumn(ParseState *pstate, RangeTblEntry *rte,
 							  char *colname);
-extern Node *colnameToVar(ParseState *pstate, char *colname);
+extern Node *colNameToVar(ParseState *pstate, char *colname, bool localonly);
 extern Node *qualifiedNameToVar(ParseState *pstate,
 				   char *schemaname,
 				   char *refname,