diff --git a/.travis.yml b/.travis.yml
index 83134951..09b06ede 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -81,6 +81,10 @@ jobs:
       python: '3.6'
     - env: TOXENV=py36-pytest51-xdist29-coverage50
       python: '3.6'
+    - env: TOXENV=py36-pytest52-xdist29-coverage45
+      python: '3.6'
+    - env: TOXENV=py36-pytest52-xdist29-coverage50
+      python: '3.6'
     - env: TOXENV=py37-pytest46-xdist29-coverage45
       python: '3.7'
     - env: TOXENV=py37-pytest46-xdist29-coverage50
@@ -89,6 +93,10 @@ jobs:
       python: '3.7'
     - env: TOXENV=py37-pytest51-xdist29-coverage50
       python: '3.7'
+    - env: TOXENV=py37-pytest52-xdist29-coverage45
+      python: '3.7'
+    - env: TOXENV=py37-pytest52-xdist29-coverage50
+      python: '3.7'
     - env: TOXENV=py38-pytest46-xdist29-coverage45
       python: '3.8-dev'
     - env: TOXENV=py38-pytest46-xdist29-coverage50
@@ -97,6 +105,10 @@ jobs:
       python: '3.8-dev'
     - env: TOXENV=py38-pytest51-xdist29-coverage50
       python: '3.8-dev'
+    - env: TOXENV=py38-pytest52-xdist29-coverage45
+      python: '3.8-dev'
+    - env: TOXENV=py38-pytest52-xdist29-coverage50
+      python: '3.8-dev'
     - env: TOXENV=pypy3-pytest46-xdist29-coverage45
       python: 'pypy3'
     - env: TOXENV=pypy3-pytest46-xdist29-coverage50
@@ -105,6 +117,10 @@ jobs:
       python: 'pypy3'
     - env: TOXENV=pypy3-pytest51-xdist29-coverage50
       python: 'pypy3'
+    - env: TOXENV=pypy3-pytest52-xdist29-coverage45
+      python: 'pypy3'
+    - env: TOXENV=pypy3-pytest52-xdist29-coverage50
+      python: 'pypy3'
 
     - stage: examples
       python: '3.6'
diff --git a/AUTHORS.rst b/AUTHORS.rst
index 206a88bc..03782571 100644
--- a/AUTHORS.rst
+++ b/AUTHORS.rst
@@ -30,3 +30,4 @@ Authors
 * Семён Марьясин - https://github.com/MarSoft
 * Alexander Shadchin - https://github.com/shadchin
 * Thomas Grainger - https://graingert.co.uk
+* Ned Batchelder - https://nedbatchelder.com
diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 01b5ace0..6514982a 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -4,6 +4,8 @@ Changelog
 2.7.2.dev0 (unreleased)
 -----------------------
 
+* Added --cov-context option for setting the coverage.py dynamic context for
+  each test.
 * Match pytest-xdist master/worker terminology.
   Contributed in `#321 <https://github.com/pytest-dev/pytest-cov/pull/321>`_
 
diff --git a/appveyor.yml b/appveyor.yml
index b414a642..bf561d77 100644
--- a/appveyor.yml
+++ b/appveyor.yml
@@ -7,8 +7,8 @@ environment:
     - TOXENV: 'py27-pytest310-xdist27-coverage45,py27-pytest46-xdist27-coverage45,py27-pytest310-xdist27-coverage50,py27-pytest46-xdist27-coverage50'
     - TOXENV: 'py34-pytest310-xdist27-coverage45,py34-pytest46-xdist27-coverage45'
     - TOXENV: 'py35-pytest310-xdist27-coverage45,py35-pytest46-xdist27-coverage45,py35-pytest310-xdist27-coverage50,py35-pytest46-xdist27-coverage50'
-    - TOXENV: 'py36-pytest310-xdist27-coverage45,py36-pytest46-xdist27-coverage45,py36-pytest310-xdist27-coverage50,py36-pytest46-xdist27-coverage50,py36-pytest46-xdist29-coverage45,py36-pytest46-xdist29-coverage50,py36-pytest51-xdist29-coverage45,py36-pytest51-xdist29-coverage50'
-    - TOXENV: 'py37-pytest310-xdist27-coverage45,py37-pytest46-xdist27-coverage45,py37-pytest310-xdist27-coverage50,py37-pytest46-xdist27-coverage50,py37-pytest46-xdist29-coverage45,py37-pytest46-xdist29-coverage50,py37-pytest51-xdist29-coverage45,py37-pytest51-xdist29-coverage50'
+    - TOXENV: 'py36-pytest310-xdist27-coverage45,py36-pytest46-xdist27-coverage45,py36-pytest310-xdist27-coverage50,py36-pytest46-xdist27-coverage50,py36-pytest46-xdist29-coverage45,py36-pytest46-xdist29-coverage50,py36-pytest51-xdist29-coverage45,py36-pytest51-xdist29-coverage50,py36-pytest52-xdist29-coverage45,py36-pytest52-xdist29-coverage50'
+    - TOXENV: 'py37-pytest310-xdist27-coverage45,py37-pytest46-xdist27-coverage45,py37-pytest310-xdist27-coverage50,py37-pytest46-xdist27-coverage50,py37-pytest46-xdist29-coverage45,py37-pytest46-xdist29-coverage50,py37-pytest51-xdist29-coverage45,py37-pytest51-xdist29-coverage50,py37-pytest52-xdist29-coverage45,py37-pytest52-xdist29-coverage50'
     - TOXENV: 'pypy-pytest310-xdist27-coverage45,pypy-pytest46-xdist27-coverage45,pypy-pytest310-xdist27-coverage50,pypy-pytest46-xdist27-coverage50'
 
 init:
diff --git a/docs/config.rst b/docs/config.rst
index 02a82a0e..3e5bf938 100644
--- a/docs/config.rst
+++ b/docs/config.rst
@@ -63,3 +63,4 @@ The complete list of command line options is:
   --cov-append          Do not delete coverage but append to current. Default:
                         False
   --cov-branch          Enable branch coverage.
+  --cov-context         Choose the method for setting the dynamic context.
diff --git a/docs/contexts.rst b/docs/contexts.rst
new file mode 100644
index 00000000..e5256fcc
--- /dev/null
+++ b/docs/contexts.rst
@@ -0,0 +1,18 @@
+========
+Contexts
+========
+
+Coverage.py 5.0 can record separate coverage data for different contexts during
+one run of a test suite.  Pytest-cov can use this feature to record coverage
+data for each test individually, with the ``--cov-context=test`` option.
+
+The context name recorded in the coverage.py database is the pytest test id,
+and the phase of execution, one of "setup", "run", or "teardown".  These two
+are separated with a pipe symbol.  You might see contexts like::
+
+    test_functions.py::test_addition|run
+    test_fancy.py::test_parametrized[1-101]|setup
+    test_oldschool.py::RegressionTests::test_error|run
+
+Note that parameterized tests include the values of the parameters in the test
+id, and each set of parameter values is recorded as a separate test.
diff --git a/docs/index.rst b/docs/index.rst
index 494cd2df..84ff5810 100644
--- a/docs/index.rst
+++ b/docs/index.rst
@@ -12,6 +12,7 @@ Contents:
     debuggers
     xdist
     subprocess-support
+    contexts
     tox
     plugins
     markers-fixtures
diff --git a/setup.py b/setup.py
index 024d9c36..b3f2115f 100644
--- a/setup.py
+++ b/setup.py
@@ -1,23 +1,24 @@
 #!/usr/bin/env python
 # -*- encoding: utf-8 -*-
-from __future__ import absolute_import, print_function
+from __future__ import absolute_import
+from __future__ import print_function
 
 import io
-from itertools import chain
 import re
+from distutils.command.build import build
 from glob import glob
+from itertools import chain
 from os.path import basename
 from os.path import dirname
 from os.path import join
 from os.path import splitext
-from distutils.command.build import build
 
 from setuptools import Command
 from setuptools import find_packages
 from setuptools import setup
 from setuptools.command.develop import develop
-from setuptools.command.install_lib import install_lib
 from setuptools.command.easy_install import easy_install
+from setuptools.command.install_lib import install_lib
 
 
 def read(*names, **kwargs):
diff --git a/src/pytest_cov/engine.py b/src/pytest_cov/engine.py
index d228d5b5..93a0050e 100644
--- a/src/pytest_cov/engine.py
+++ b/src/pytest_cov/engine.py
@@ -1,5 +1,4 @@
 """Coverage controllers for use by pytest-cov and nose-cov."""
-
 import contextlib
 import copy
 import os
@@ -10,8 +9,10 @@
 import coverage
 from coverage.data import CoverageData
 
+from .compat import StringIO
+from .compat import workerinput
+from .compat import workeroutput
 from .embed import cleanup
-from .compat import StringIO, workeroutput, workerinput
 
 
 class _NullFile(object):
@@ -130,8 +131,7 @@ def summary(self, stream):
                 'file': stream,
             }
             skip_covered = isinstance(self.cov_report, dict) and 'skip-covered' in self.cov_report.values()
-            if hasattr(coverage, 'version_info') and coverage.version_info[0] >= 4:
-                options.update({'skip_covered': skip_covered or None})
+            options.update({'skip_covered': skip_covered or None})
             with _backup(self.cov, "config"):
                 total = self.cov.report(**options)
 
diff --git a/src/pytest_cov/plugin.py b/src/pytest_cov/plugin.py
index d84a6dbc..fb7a8f54 100644
--- a/src/pytest_cov/plugin.py
+++ b/src/pytest_cov/plugin.py
@@ -3,6 +3,7 @@
 import os
 import warnings
 
+import coverage
 import pytest
 from coverage.misc import CoverageException
 
@@ -48,6 +49,14 @@ def validate_fail_under(num_str):
         return float(num_str)
 
 
+def validate_context(arg):
+    if coverage.version_info <= (5, 0):
+        raise argparse.ArgumentTypeError('Contexts are only supported with coverage.py >= 5.x')
+    if arg != "test":
+        raise argparse.ArgumentTypeError('--cov-context=test is the only supported value')
+    return arg
+
+
 class StoreReport(argparse.Action):
     def __call__(self, parser, namespace, values, option_string=None):
         report_type, file = values
@@ -88,6 +97,9 @@ def pytest_addoption(parser):
                          'Default: False')
     group.addoption('--cov-branch', action='store_true', default=None,
                     help='Enable branch coverage.')
+    group.addoption('--cov-context', action='store', metavar='CONTEXT',
+                    type=validate_context,
+                    help='Dynamic contexts to use. "test" for now.')
 
 
 def _prepare_cov_source(cov_source):
@@ -198,6 +210,9 @@ def pytest_sessionstart(self, session):
         elif not self._started:
             self.start(engine.Central)
 
+        if self.options.cov_context == 'test':
+            session.config.pluginmanager.register(TestContextPlugin(self.cov_controller.cov), '_cov_contexts')
+
     def pytest_configure_node(self, node):
         """Delegate to our implementation.
 
@@ -308,6 +323,24 @@ def pytest_runtest_call(self, item):
             yield
 
 
+class TestContextPlugin(object):
+    def __init__(self, cov):
+        self.cov = cov
+
+    def pytest_runtest_setup(self, item):
+        self.switch_context(item, 'setup')
+
+    def pytest_runtest_teardown(self, item):
+        self.switch_context(item, 'teardown')
+
+    def pytest_runtest_call(self, item):
+        self.switch_context(item, 'run')
+
+    def switch_context(self, item, when):
+        context = "{item.nodeid}|{when}".format(item=item, when=when)
+        self.cov.switch_context(context)
+
+
 @pytest.fixture
 def no_cover():
     """A pytest fixture to disable coverage."""
diff --git a/tests/contextful.py b/tests/contextful.py
new file mode 100644
index 00000000..3527e499
--- /dev/null
+++ b/tests/contextful.py
@@ -0,0 +1,105 @@
+# A test file for test_pytest_cov.py:test_contexts
+
+import unittest
+
+import pytest
+
+
+def test_01():
+    assert 1 == 1                                   # r1
+
+
+def test_02():
+    assert 2 == 2                                   # r2
+
+
+class OldStyleTests(unittest.TestCase):
+    items = []
+
+    @classmethod
+    def setUpClass(cls):
+        cls.items.append("hello")                   # s3
+
+    @classmethod
+    def tearDownClass(cls):
+        cls.items.pop()                             # t4
+
+    def setUp(self):
+        self.number = 1                             # r3 r4
+
+    def tearDown(self):
+        self.number = None                          # r3 r4
+
+    def test_03(self):
+        assert self.number == 1                     # r3
+        assert self.items[0] == "hello"             # r3
+
+    def test_04(self):
+        assert self.number == 1                     # r4
+        assert self.items[0] == "hello"             # r4
+
+
+@pytest.fixture
+def some_data():
+    return [1, 2, 3]                                # s5 s6
+
+
+def test_05(some_data):
+    assert len(some_data) == 3                      # r5
+
+
+@pytest.fixture
+def more_data(some_data):
+    return [2*x for x in some_data]                 # s6
+
+
+def test_06(some_data, more_data):
+    assert len(some_data) == len(more_data)         # r6
+
+
+@pytest.fixture(scope='session')
+def expensive_data():
+    return list(range(10))                          # s7
+
+
+def test_07(expensive_data):
+    assert len(expensive_data) == 10                # r7
+
+
+def test_08(expensive_data):
+    assert len(expensive_data) == 10                # r8
+
+
+@pytest.fixture(params=[1, 2, 3])
+def parametrized_number(request):
+    return request.param                            # s9-1 s9-2 s9-3
+
+
+def test_09(parametrized_number):
+    assert parametrized_number > 0                  # r9-1 r9-2 r9-3
+
+
+def test_10():
+    assert 1 == 1                                   # r10
+
+
+@pytest.mark.parametrize("x, ans", [
+    (1, 101),
+    (2, 202),
+])
+def test_11(x, ans):
+    assert 100 * x + x == ans                       # r11-1 r11-2
+
+
+@pytest.mark.parametrize("x, ans", [
+    (1, 101),
+    (2, 202),
+], ids=['one', 'two'])
+def test_12(x, ans):
+    assert 100 * x + x == ans                       # r12-1 r12-2
+
+
+@pytest.mark.parametrize("x", [1, 2])
+@pytest.mark.parametrize("y", [3, 4])
+def test_13(x, y):
+    assert x + y > 0                                # r13-1 r13-2 r13-3 r13-4
diff --git a/tests/test_pytest_cov.py b/tests/test_pytest_cov.py
index 6d0e7e78..adc28d54 100644
--- a/tests/test_pytest_cov.py
+++ b/tests/test_pytest_cov.py
@@ -1,9 +1,10 @@
+import collections
 import glob
 import os
 import platform
+import re
 import subprocess
 import sys
-from distutils.version import StrictVersion
 from itertools import chain
 
 import coverage
@@ -17,15 +18,15 @@
 from process_tests import wait_for_strings
 from six import exec_
 
+import pytest_cov.plugin
+from pytest_cov import compat
+
 try:
     from StringIO import StringIO
 except ImportError:
     from io import StringIO
 
-import pytest_cov.plugin
-from pytest_cov import compat
-
-coverage, platform, StrictVersion  # required for skipif mark on test_cov_min_from_coveragerc
+coverage, platform      # required for skipif mark on test_cov_min_from_coveragerc
 
 max_worker_restart_0 = "--max-" + compat.worker + "-restart=0"
 
@@ -468,7 +469,6 @@ def test_central_nonspecific(testdir, prop):
     assert result.ret == 0
 
 
-@pytest.mark.skipif('StrictVersion(coverage.__version__) <= StrictVersion("3.8")')
 def test_cov_min_from_coveragerc(testdir):
     script = testdir.makepyfile(SCRIPT)
     testdir.tmpdir.join('.coveragerc').write("""
@@ -1636,7 +1636,6 @@ def test_basic():
 SKIP_COVERED_RESULT = '1 file skipped due to complete coverage.'
 
 
-@pytest.mark.skipif('StrictVersion(coverage.__version__) < StrictVersion("4.0")')
 @pytest.mark.parametrize('report_option', [
     'term-missing:skip-covered',
     'term:skip-covered'])
@@ -1651,7 +1650,6 @@ def test_skip_covered_cli(testdir, report_option):
     result.stdout.fnmatch_lines([SKIP_COVERED_RESULT])
 
 
-@pytest.mark.skipif('StrictVersion(coverage.__version__) < StrictVersion("4.0")')
 def test_skip_covered_coveragerc_config(testdir):
     testdir.makefile('', coveragerc=SKIP_COVERED_COVERAGERC)
     script = testdir.makepyfile(SKIP_COVERED_TEST)
@@ -1932,3 +1930,95 @@ def test_cov_and_no_cov(testdir):
                                script)
 
     assert result.ret == 0
+
+
+def find_labels(text, pattern):
+    all_labels = collections.defaultdict(list)
+    lines = text.splitlines()
+    for lineno, line in enumerate(lines, start=1):
+        labels = re.findall(pattern, line)
+        for label in labels:
+            all_labels[label].append(lineno)
+    return all_labels
+
+
+# The contexts and their labels in contextful.py
+EXPECTED_CONTEXTS = {
+    '': 'c0',
+    'test_contexts.py::test_01|run': 'r1',
+    'test_contexts.py::test_02|run': 'r2',
+    'test_contexts.py::OldStyleTests::test_03|setup': 's3',
+    'test_contexts.py::OldStyleTests::test_03|run': 'r3',
+    'test_contexts.py::OldStyleTests::test_04|run': 'r4',
+    'test_contexts.py::OldStyleTests::test_04|teardown': 't4',
+    'test_contexts.py::test_05|setup': 's5',
+    'test_contexts.py::test_05|run': 'r5',
+    'test_contexts.py::test_06|setup': 's6',
+    'test_contexts.py::test_06|run': 'r6',
+    'test_contexts.py::test_07|setup': 's7',
+    'test_contexts.py::test_07|run': 'r7',
+    'test_contexts.py::test_08|run': 'r8',
+    'test_contexts.py::test_09[1]|setup': 's9-1',
+    'test_contexts.py::test_09[1]|run': 'r9-1',
+    'test_contexts.py::test_09[2]|setup': 's9-2',
+    'test_contexts.py::test_09[2]|run': 'r9-2',
+    'test_contexts.py::test_09[3]|setup': 's9-3',
+    'test_contexts.py::test_09[3]|run': 'r9-3',
+    'test_contexts.py::test_10|run': 'r10',
+    'test_contexts.py::test_11[1-101]|run': 'r11-1',
+    'test_contexts.py::test_11[2-202]|run': 'r11-2',
+    'test_contexts.py::test_12[one]|run': 'r12-1',
+    'test_contexts.py::test_12[two]|run': 'r12-2',
+    'test_contexts.py::test_13[3-1]|run': 'r13-1',
+    'test_contexts.py::test_13[3-2]|run': 'r13-2',
+    'test_contexts.py::test_13[4-1]|run': 'r13-3',
+    'test_contexts.py::test_13[4-2]|run': 'r13-4',
+}
+
+
+@pytest.mark.skipif("coverage.version_info < (5, 0)")
+@xdist_params
+def test_contexts(testdir, opts):
+    with open(os.path.join(os.path.dirname(__file__), "contextful.py")) as f:
+        contextful_tests = f.read()
+    script = testdir.makepyfile(contextful_tests)
+    result = testdir.runpytest('-v',
+                               '--cov=%s' % script.dirpath(),
+                               '--cov-context=test',
+                               script,
+                               *opts.split()
+                               )
+    assert result.ret == 0
+    result.stdout.fnmatch_lines([
+        'test_contexts* 100%*',
+    ])
+
+    data = coverage.CoverageData(".coverage")
+    data.read()
+    assert data.measured_contexts() == set(EXPECTED_CONTEXTS)
+    measured = data.measured_files()
+    assert len(measured) == 1
+    test_context_path = list(measured)[0]
+    assert test_context_path.lower() == os.path.abspath("test_contexts.py").lower()
+
+    line_data = find_labels(contextful_tests, r"[crst]\d+(?:-\d+)?")
+    for context, label in EXPECTED_CONTEXTS.items():
+        if context == '':
+            continue
+        data.set_query_context(context)
+        actual = data.lines(test_context_path)
+        assert line_data[label] == actual, "Wrong lines for context {!r}".format(context)
+
+
+@pytest.mark.skipif("coverage.version_info >= (5, 0)")
+def test_contexts_not_supported(testdir):
+    script = testdir.makepyfile("a = 1")
+    result = testdir.runpytest('-v',
+                               '--cov=%s' % script.dirpath(),
+                               '--cov-context=test',
+                               script,
+                               )
+    result.stderr.fnmatch_lines([
+        '*argument --cov-context: Contexts are only supported with coverage.py >= 5.x',
+    ])
+    assert result.ret != 0
diff --git a/tox.ini b/tox.ini
index a546659d..fd5a9f5c 100644
--- a/tox.ini
+++ b/tox.ini
@@ -5,7 +5,7 @@ envlist =
     check
     py{27,34,35,36,37,py,py3}-pytest{310,46}-xdist27-coverage45
     py{27,35,36,37,py,py3}-pytest{310,46}-xdist27-coverage50
-    py{36,37,38,py3}-pytest{46,51}-xdist29-coverage{45,50}
+    py{36,37,38,py3}-pytest{46,51,52}-xdist29-coverage{45,50}
     docs
 
 [testenv]
@@ -21,7 +21,8 @@ setenv =
     pytest44:  _DEP_PYTEST=pytest==4.4.2
     pytest45:  _DEP_PYTEST=pytest==4.5.0
     pytest46:  _DEP_PYTEST=pytest==4.6.5
-    pytest51:  _DEP_PYTEST=pytest==5.1.0
+    pytest51:  _DEP_PYTEST=pytest==5.1.3
+    pytest52:  _DEP_PYTEST=pytest==5.2.0
 
     xdist22: _DEP_PYTESTXDIST=pytest-xdist==1.22.0
     xdist27: _DEP_PYTESTXDIST=pytest-xdist==1.27.0
@@ -29,7 +30,7 @@ setenv =
     xdist29: _DEP_PYTESTXDIST=pytest-xdist==1.29.0
 
     coverage45: _DEP_COVERAGE=coverage==4.5.4
-    coverage50: _DEP_COVERAGE=coverage==5.0a7
+    coverage50: _DEP_COVERAGE=coverage==5.0a8
 
 passenv =
     *
@@ -66,9 +67,11 @@ deps =
     flake8
     readme-renderer
     pygments
+    isort
 skip_install = true
 usedevelop = false
 commands =
     python setup.py check --strict --metadata --restructuredtext
     check-manifest {toxinidir}
     flake8 src tests setup.py
+    isort --check-only --diff --recursive src tests setup.py