diff --git a/subversion-neon-systemproxy.patch b/subversion-neon-systemproxy.patch
new file mode 100644
index 0000000..d775852
--- /dev/null
+++ b/subversion-neon-systemproxy.patch
@@ -0,0 +1,50 @@
+Index: subversion/libsvn_ra_neon/session.c
+===================================================================
+--- subversion/libsvn_ra_neon/session.c.orig
++++ subversion/libsvn_ra_neon/session.c
+@@ -885,6 +885,17 @@ svn_ra_neon__open(svn_ra_session_t *sess
+           }
+ #endif
+       }
++#ifdef SVN_NEON_0_29
++    else
++      {
++        /* If we do not have any proxy specified for this host and
++           we're running a new enough neon implementation, we use
++           neon's session proxy autodetection (via libproxy). */
++        ne_session_system_proxy(sess, 0);
++        ne_session_system_proxy(sess2, 0);
++      }
++#endif
++
+ 
+     if (!timeout)
+       timeout = DEFAULT_HTTP_TIMEOUT;
+Index: build/ac-macros/neon.m4
+===================================================================
+--- build/ac-macros/neon.m4.orig
++++ build/ac-macros/neon.m4
+@@ -69,6 +69,11 @@ AC_DEFUN(SVN_LIB_NEON,
+                            [Define to 1 if you have Neon 0.28 or later.])
+       fi
+ 
++      if test -n ["`echo "$NEON_VERSION" | grep '^0\.29\.'`"] ; then
++        AC_DEFINE_UNQUOTED([SVN_NEON_0_29], [1],
++                           [Define to 1 if you have Neon 0.29 or later.])
++      fi
++
+       for svn_allowed_neon in $NEON_ALLOWED_LIST; do
+         if test -n "`echo "$NEON_VERSION" | grep "^$svn_allowed_neon"`" ||
+            test "$svn_allowed_neon" = "any"; then
+@@ -160,6 +165,11 @@ AC_DEFUN(SVN_NEON_CONFIG,
+                            [Define to 1 if you have Neon 0.28 or later.])
+       fi
+ 
++      if test -n ["`echo "$NEON_VERSION" | grep '^0\.29\.'`"] ; then
++        AC_DEFINE_UNQUOTED([SVN_NEON_0_29], [1],
++                           [Define to 1 if you have Neon 0.29 or later.])
++      fi
++
+       for svn_allowed_neon in $NEON_ALLOWED_LIST; do
+         if test -n "`echo "$NEON_VERSION" | grep "^$svn_allowed_neon"`" ||
+            test "$svn_allowed_neon" = "any"; then
diff --git a/subversion.changes b/subversion.changes
index cf45deb..49e6cb3 100644
--- a/subversion.changes
+++ b/subversion.changes
@@ -1,3 +1,10 @@
+-------------------------------------------------------------------
+Mon Sep 27 10:31:48 UTC 2010 - dimstar@opensuse.org
+
+- Add subversion-neon-systemproxy.patch: Use Neon's system-proxy
+  feature that was introduced in neon 0.29. In the background, neon
+  uses libproxy to get the right information from the session.
+
 -------------------------------------------------------------------
 Mon Sep 20 16:22:25 UTC 2010 - cristian.rodriguez@opensuse.org
 
diff --git a/subversion.spec b/subversion.spec
index 0a59428..8b1ae62 100644
--- a/subversion.spec
+++ b/subversion.spec
@@ -159,6 +159,8 @@ Patch33:        subversion.header_wrappers.patch
 Patch35:        subversion.java14.patch
 Patch36:        subversion-ctypes-remove_shebang.patch
 Patch37:        subversion-no-build-date.patch
+# PATCH-FEATURE-UPSTREAM subversion-neon-systemproxy.patch dimstar@opensuse.org -- Use system proxy offered by neon, if no specific config is used (Thus, actually using libproxy in the background to use 'the right proxy' as configured in the system).
+Patch38:        subversion-neon-systemproxy.patch
 #
 %if %with_ruby
 %if %{!?rb_arch:1}0
@@ -345,6 +347,7 @@ popd #./sqlite-amalgamation
 %patch35
 %patch36 -p0
 %patch37
+%patch38
 %if 0%{?sles_version} == 9
 %__grep -rwl '/usr/bin/python' . | xargs %__sed -i 's|/usr/bin/python|%{_usr}/bin/python2.5|g'
 %__grep -rwl '/usr/bin/env python' . | xargs %__sed -i 's|/usr/bin/env python|%{_usr}/bin/python2.5|g'
@@ -358,6 +361,8 @@ SQLITE_RECOMMENDED_VER=$(grep -E '^SQLITE_RECOMMENDED_VER=' configure.ac|cut -f2
 }
 
 %build
+# Re-boot strap, needed for patch37
+./autogen.sh
 # This package failed when testing with -Wl,-as-needed being default.
 # So we disable it here, if you want to retest, just delete this comment and the line below.
 export SUSE_ASNEEDED=0