diff --git a/pkgs/development/compilers/dev86/default.nix b/pkgs/development/compilers/dev86/default.nix
index aa44b14d844..0dfb0be96f9 100644
--- a/pkgs/development/compilers/dev86/default.nix
+++ b/pkgs/development/compilers/dev86/default.nix
@@ -1,18 +1,23 @@
-{stdenv, fetchurl}:
+{ stdenv, fetchurl }:
 
 stdenv.mkDerivation {
-  name = "dev86-0.16.17";
+  name = "dev86-0.16.18";
+  
   src = fetchurl {
-    url = http://homepage.ntlworld.com/robert.debath/dev86/Dev86src-0.16.17.tar.gz;
-    md5 = "e7bbfdbe61c2fb964994a087e29b0087";
+    url = http://www.debath.co.uk/dev86/Dev86src-0.16.18.tar.gz;
+    sha256 = "1wcg2x8i2fq7kqgazx2il3qfmikyi4kfb23vm45yxlwq72l55604";
   };
 
-  patches = [ ./dev86-0.16.17-noelks-1.patch ];
-  
-  preBuild = "
-    makeFlags=\"PREFIX=$out\"
-  ";
+  makeFlags = "PREFIX=$(out)";
 
+  # Awful hackery to get dev86 to compile with recent gcc/binutils.
+  # See http://bugs.gentoo.org/214964 for some inconclusive
+  # discussion.
+  preBuild =
+    ''
+      substituteInPlace makefile.in --replace "-O2" "" --replace "-O" ""
+    '';
+      
   meta = {
     description = "Linux 8086 development environment";
     homepage = http://www.debath.co.uk/;
diff --git a/pkgs/development/compilers/dev86/dev86-0.16.17-noelks-1.patch b/pkgs/development/compilers/dev86/dev86-0.16.17-noelks-1.patch
deleted file mode 100644
index fd0d9dfae31..00000000000
--- a/pkgs/development/compilers/dev86/dev86-0.16.17-noelks-1.patch
+++ /dev/null
@@ -1,22 +0,0 @@
-Submitted By: Andrew "Weibullguy" Rowland <darowland_at_ieee_dot_org>
-Date: 2007-10-23
-Initial Package Version: 0.16.17
-Origin: Fedora Project
-Description: Suppresses elksemu
-Upstream Status: Unknown
-
---- dev86-0.16.17/makefile.in.noelks	2006-01-25 17:03:02.000000000 -0500
-+++ dev86-0.16.17/makefile.in	2006-01-25 17:03:19.000000000 -0500
-@@ -89,10 +89,10 @@
- 
- #ifdef GNUMAKE
- all: check_config bcc86 cpp unproto copt as86 ar86 ld86 objdump86 \
--     library lib-bsd alt-libs elksemu
-+     library lib-bsd alt-libs 
- 
- install: check_config install-bcc install-man \
--     install-lib install-emu
-+     install-lib
- 
- install-all: install install-other
-