diff --git a/make-distribution.sh b/make-distribution.sh
index 0a8941c1f8515be8754576119cb465213d95319f..a101024de54ae779c5b755bd8e5f76f6bc2c612d 100755
--- a/make-distribution.sh
+++ b/make-distribution.sh
@@ -24,9 +24,10 @@
 # so it is completely self contained.
 # It does not contain source or *.class files.
 #
-# Arguments
-#   (none): Creates dist/ directory
-#      tgz: Additionally creates spark-$VERSION-bin.tar.gz
+# Optional Arguments
+#      --tgz: Additionally creates spark-$VERSION-bin.tar.gz
+#      --hadoop VERSION: Builds against specified version of Hadoop.
+#      --with-yarn: Enables support for Hadoop YARN.
 #
 # Recommended deploy/testing procedure (standalone mode):
 # 1) Rsync / deploy the dist/ dir to one host
@@ -44,20 +45,50 @@ DISTDIR="$FWDIR/dist"
 export TERM=dumb   # Prevents color codes in SBT output
 VERSION=$($FWDIR/sbt/sbt "show version" | tail -1 | cut -f 2 | sed 's/^\([a-zA-Z0-9.-]*\).*/\1/')
 
-if [ "$1" == "tgz" ]; then
-	echo "Making spark-$VERSION-bin.tar.gz"
+# Initialize defaults
+SPARK_HADOOP_VERSION=1.2.1
+SPARK_YARN_MODE=false
+MAKE_TGZ=false
+
+# Parse arguments
+while (( "$#" )); do
+  case $1 in
+    --hadoop)
+      SPARK_HADOOP_VERSION="$2"
+      shift
+      ;;
+    --with-yarn)
+      SPARK_YARN_MODE=true
+      ;;
+    --tgz)
+      MAKE_TGZ=true
+      ;;
+  esac
+  shift
+done
+
+if [ "$MAKE_TGZ" == "true" ]; then
+	echo "Making spark-$VERSION-hadoop_$SPARK_HADOOP_VERSION-bin.tar.gz"
 else
 	echo "Making distribution for Spark $VERSION in $DISTDIR..."
 fi
 
+echo "Hadoop version set to $SPARK_HADOOP_VERSION"
+if [ "$SPARK_YARN_MODE" == "true" ]; then
+  echo "YARN enabled"
+else
+  echo "YARN disabled"
+fi
 
 # Build fat JAR
-$FWDIR/sbt/sbt "repl/assembly"
+export SPARK_HADOOP_VERSION
+export SPARK_YARN_MODE
+"$FWDIR/sbt/sbt" "repl/assembly"
 
 # Make directories
 rm -rf "$DISTDIR"
 mkdir -p "$DISTDIR/jars"
-echo "$VERSION" >$DISTDIR/RELEASE
+echo "$VERSION" > "$DISTDIR/RELEASE"
 
 # Copy jars
 cp $FWDIR/repl/target/*.jar "$DISTDIR/jars/"
@@ -69,9 +100,9 @@ cp "$FWDIR/run" "$FWDIR/spark-shell" "$DISTDIR"
 cp "$FWDIR/spark-executor" "$DISTDIR"
 
 
-if [ "$1" == "tgz" ]; then
+if [ "$MAKE_TGZ" == "true" ]; then
   TARDIR="$FWDIR/spark-$VERSION"
-  cp -r $DISTDIR $TARDIR
-  tar -zcf spark-$VERSION-bin.tar.gz -C $FWDIR spark-$VERSION
-  rm -rf $TARDIR
+  cp -r "$DISTDIR" "$TARDIR"
+  tar -zcf "spark-$VERSION-hadoop_$SPARK_HADOOP_VERSION-bin.tar.gz" -C "$FWDIR" "spark-$VERSION"
+  rm -rf "$TARDIR"
 fi
diff --git a/project/SparkBuild.scala b/project/SparkBuild.scala
index 350a36a964339bb4ee9625391fe46aa2bc1d2dd9..23c71799192e2f684c99bf839f85dbda8787eb82 100644
--- a/project/SparkBuild.scala
+++ b/project/SparkBuild.scala
@@ -24,10 +24,15 @@ import AssemblyKeys._
 //import com.jsuereth.pgp.sbtplugin.PgpKeys._
 
 object SparkBuild extends Build {
+  // Hadoop version to build against. For example, "0.20.2", "0.20.205.0", or
+  // "1.0.4" for Apache releases, or "0.20.2-cdh3u5" for Cloudera Hadoop.
+  val HADOOP_VERSION = "1.2.1"
+  val HADOOP_YARN = false
+
   // HBase version; set as appropriate.
   val HBASE_VERSION = "0.94.6"
 
-  lazy val root = Project("root", file("."), settings = rootSettings) aggregate(core, repl, examples, bagel, streaming, mllib, tools, yarn)
+  lazy val root = Project("root", file("."), settings = rootSettings) aggregate(allProjects:_*)
 
   lazy val core = Project("core", file("core"), settings = coreSettings)
 
@@ -49,6 +54,17 @@ object SparkBuild extends Build {
   lazy val MavenCompile = config("m2r") extend(Compile)
   lazy val publishLocalBoth = TaskKey[Unit]("publish-local", "publish local for m2 and ivy")
 
+  // Allows build configuration to be set through environment variables
+  lazy val hadoopVersion = scala.util.Properties.envOrElse("SPARK_HADOOP_VERSION", HADOOP_VERSION)
+  lazy val isYarnMode = scala.util.Properties.envOrNone("SPARK_YARN_MODE") match {
+    case None => HADOOP_YARN
+    case Some(v) => v.toBoolean
+  }
+
+  // Conditionally include the yarn sub-project
+  lazy val maybeYarn = if(isYarnMode) Seq[ProjectReference](yarn) else Seq[ProjectReference]()
+  lazy val allProjects = Seq[ProjectReference](core, repl, examples, bagel, streaming, mllib, tools) ++ maybeYarn
+
   def sharedSettings = Defaults.defaultSettings ++ Seq(
     organization := "org.spark-project",
     version := "0.8.0-SNAPSHOT",
@@ -170,7 +186,7 @@ object SparkBuild extends Build {
       "org.apache.mesos" % "mesos" % "0.12.1",
       "io.netty" % "netty-all" % "4.0.0.Beta2",
       "org.apache.derby" % "derby" % "10.4.2.0" % "test",
-      "org.apache.hadoop" % "hadoop-client" % "1.2.1" excludeAll(excludeJackson, excludeNetty, excludeAsm),
+      "org.apache.hadoop" % "hadoop-client" % hadoopVersion excludeAll(excludeJackson, excludeNetty, excludeAsm),
       "com.codahale.metrics" % "metrics-core" % "3.0.0",
       "com.codahale.metrics" % "metrics-jvm" % "3.0.0",
       "com.codahale.metrics" % "metrics-json" % "3.0.0",
@@ -239,10 +255,10 @@ object SparkBuild extends Build {
     name := "spark-yarn",
     libraryDependencies ++= Seq(
       // Exclude rule required for all ?
-      "org.apache.hadoop" % "hadoop-client" % "2.0.2-alpha" excludeAll(excludeJackson, excludeNetty, excludeAsm),
-      "org.apache.hadoop" % "hadoop-yarn-api" % "2.0.2-alpha" excludeAll(excludeJackson, excludeNetty, excludeAsm),
-      "org.apache.hadoop" % "hadoop-yarn-common" % "2.0.2-alpha" excludeAll(excludeJackson, excludeNetty, excludeAsm),
-      "org.apache.hadoop" % "hadoop-yarn-client" % "2.0.2-alpha" excludeAll(excludeJackson, excludeNetty, excludeAsm)
+      "org.apache.hadoop" % "hadoop-client" % hadoopVersion excludeAll(excludeJackson, excludeNetty, excludeAsm),
+      "org.apache.hadoop" % "hadoop-yarn-api" % hadoopVersion excludeAll(excludeJackson, excludeNetty, excludeAsm),
+      "org.apache.hadoop" % "hadoop-yarn-common" % hadoopVersion excludeAll(excludeJackson, excludeNetty, excludeAsm),
+      "org.apache.hadoop" % "hadoop-yarn-client" % hadoopVersion excludeAll(excludeJackson, excludeNetty, excludeAsm)
     )
   ) ++ assemblySettings ++ extraAssemblySettings