diff --git a/pkg/build/strategies/layered/layered.go b/pkg/build/strategies/layered/layered.go
index ac85d3fa5..b2527f269 100644
--- a/pkg/build/strategies/layered/layered.go
+++ b/pkg/build/strategies/layered/layered.go
@@ -125,17 +125,6 @@ func (builder *Layered) CreateDockerfile(config *api.Config) error {
 	return nil
 }
 
-// SourceTar returns a stream to the source tar file.
-// TODO: this should stop generating a file, and instead stream the tar.
-func (builder *Layered) SourceTar(config *api.Config) (io.ReadCloser, error) {
-	uploadDir := filepath.Join(config.WorkingDir, "upload")
-	tarFileName, err := builder.tar.CreateTarFile(builder.config.WorkingDir, uploadDir)
-	if err != nil {
-		return nil, err
-	}
-	return builder.fs.Open(tarFileName)
-}
-
 // Build handles the `docker build` equivalent execution, returning the
 // success/failure details.
 func (builder *Layered) Build(config *api.Config) (*api.Result, error) {
@@ -157,11 +146,7 @@ func (builder *Layered) Build(config *api.Config) (*api.Result, error) {
 	}
 
 	glog.V(2).Info("Creating application source code image")
-	tarStream, err := builder.SourceTar(config)
-	if err != nil {
-		buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonTarSourceFailed, utilstatus.ReasonMessageTarSourceFailed)
-		return buildResult, err
-	}
+	tarStream := builder.tar.CreateTarStreamReader(filepath.Join(config.WorkingDir, "upload"), false)
 	defer tarStream.Close()
 
 	newBuilderImage := fmt.Sprintf("s2i-layered-temp-image-%d", time.Now().UnixNano())
@@ -193,7 +178,7 @@ func (builder *Layered) Build(config *api.Config) (*api.Result, error) {
 	}(outReader)
 
 	glog.V(2).Infof("Building new image %s with scripts and sources already inside", newBuilderImage)
-	if err = builder.docker.BuildImage(opts); err != nil {
+	if err := builder.docker.BuildImage(opts); err != nil {
 		buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonDockerImageBuildFailed, utilstatus.ReasonMessageDockerImageBuildFailed)
 		return buildResult, err
 	}
@@ -208,6 +193,7 @@ func (builder *Layered) Build(config *api.Config) (*api.Result, error) {
 	if scriptsIncluded {
 		builder.config.ScriptsURL = "image://" + path.Join(getDestination(config), "scripts")
 	} else {
+		var err error
 		builder.config.ScriptsURL, err = builder.docker.GetScriptsURL(newBuilderImage)
 		if err != nil {
 			buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonGenericS2IBuildFailed, utilstatus.ReasonMessageGenericS2iBuildFailed)
diff --git a/pkg/build/strategies/layered/layered_test.go b/pkg/build/strategies/layered/layered_test.go
index 4d4f22075..a7a9e0ed8 100644
--- a/pkg/build/strategies/layered/layered_test.go
+++ b/pkg/build/strategies/layered/layered_test.go
@@ -30,7 +30,7 @@ func newFakeLayered() *Layered {
 	}
 }
 
-func newFakeLayeredWithScripts(assemble, workDir string) *Layered {
+func newFakeLayeredWithScripts(workDir string) *Layered {
 	return &Layered{
 		docker:  &docker.FakeDocker{},
 		config:  &api.Config{WorkingDir: workDir},
@@ -51,7 +51,7 @@ func TestBuildOK(t *testing.T) {
 	}
 	defer file.Close()
 	defer os.RemoveAll(workDir)
-	l := newFakeLayeredWithScripts(assemble, workDir)
+	l := newFakeLayeredWithScripts(workDir)
 	l.config.BuilderImage = "test/image"
 	_, err = l.Build(l.config)
 	if err != nil {
@@ -84,7 +84,7 @@ func TestBuildOKWithImageRef(t *testing.T) {
 	}
 	defer file.Close()
 	defer os.RemoveAll(workDir)
-	l := newFakeLayeredWithScripts(assemble, workDir)
+	l := newFakeLayeredWithScripts(workDir)
 	l.config.BuilderImage = "docker.io/uptoknow/ruby-20-centos7@sha256:d6f5718b85126954d98931e654483ee794ac357e0a98f4a680c1e848d78863a1"
 	_, err = l.Build(l.config)
 	if err != nil {
@@ -158,16 +158,6 @@ func TestBuildErrorCreateTarFile(t *testing.T) {
 	}
 }
 
-func TestBuildErrorOpenTarFile(t *testing.T) {
-	l := newFakeLayered()
-	l.config.BuilderImage = "test/image"
-	l.fs.(*test.FakeFileSystem).OpenError = errors.New("OpenTarError")
-	_, err := l.Build(l.config)
-	if err == nil || err.Error() != "OpenTarError" {
-		t.Errorf("An error was expected for OpenTarFile, but got different: %v", err)
-	}
-}
-
 func TestBuildErrorBuildImage(t *testing.T) {
 	l := newFakeLayered()
 	l.config.BuilderImage = "test/image"
diff --git a/pkg/build/strategies/onbuild/onbuild.go b/pkg/build/strategies/onbuild/onbuild.go
index a6d408d8b..31d263b1b 100644
--- a/pkg/build/strategies/onbuild/onbuild.go
+++ b/pkg/build/strategies/onbuild/onbuild.go
@@ -3,7 +3,6 @@ package onbuild
 import (
 	"bytes"
 	"fmt"
-	"io"
 	"os"
 	"path/filepath"
 
@@ -76,17 +75,6 @@ func New(config *api.Config, overrides build.Overrides) (*OnBuild, error) {
 	return builder, nil
 }
 
-// SourceTar produces a tar archive containing application source and streams
-// it
-func (builder *OnBuild) SourceTar(config *api.Config) (io.ReadCloser, error) {
-	uploadDir := filepath.Join(config.WorkingDir, "upload", "src")
-	tarFileName, err := builder.tar.CreateTarFile(config.WorkingDir, uploadDir)
-	if err != nil {
-		return nil, err
-	}
-	return builder.fs.Open(tarFileName)
-}
-
 // Build executes the ONBUILD kind of build
 func (builder *OnBuild) Build(config *api.Config) (*api.Result, error) {
 	buildResult := &api.Result{}
@@ -112,11 +100,7 @@ func (builder *OnBuild) Build(config *api.Config) (*api.Result, error) {
 	}
 
 	glog.V(2).Info("Creating application source code image")
-	tarStream, err := builder.SourceTar(config)
-	if err != nil {
-		buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonTarSourceFailed, utilstatus.ReasonMessageTarSourceFailed)
-		return buildResult, err
-	}
+	tarStream := builder.tar.CreateTarStreamReader(filepath.Join(config.WorkingDir, "upload", "src"), false)
 	defer tarStream.Close()
 
 	opts := docker.BuildImageOptions{
@@ -127,7 +111,7 @@ func (builder *OnBuild) Build(config *api.Config) (*api.Result, error) {
 	}
 
 	glog.V(2).Info("Building the application source")
-	if err = builder.docker.BuildImage(opts); err != nil {
+	if err := builder.docker.BuildImage(opts); err != nil {
 		buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonDockerImageBuildFailed, utilstatus.ReasonMessageDockerImageBuildFailed)
 		return buildResult, err
 	}
@@ -136,7 +120,7 @@ func (builder *OnBuild) Build(config *api.Config) (*api.Result, error) {
 	builder.garbage.Cleanup(config)
 
 	var imageID string
-
+	var err error
 	if len(opts.Name) > 0 {
 		if imageID, err = builder.docker.GetImageID(opts.Name); err != nil {
 			buildResult.BuildInfo.FailureReason = utilstatus.NewFailureReason(utilstatus.ReasonGenericS2IBuildFailed, utilstatus.ReasonMessageGenericS2iBuildFailed)
diff --git a/pkg/build/strategies/sti/postexecutorstep.go b/pkg/build/strategies/sti/postexecutorstep.go
index 2e2200152..4dd239552 100644
--- a/pkg/build/strategies/sti/postexecutorstep.go
+++ b/pkg/build/strategies/sti/postexecutorstep.go
@@ -1,19 +1,19 @@
 package sti
 
 import (
+	"archive/tar"
 	"fmt"
 	"io"
 	"io/ioutil"
 	"os"
 	"path"
 	"path/filepath"
-	"runtime"
 	"strings"
 
 	"github.com/openshift/source-to-image/pkg/api"
 	dockerpkg "github.com/openshift/source-to-image/pkg/docker"
 	"github.com/openshift/source-to-image/pkg/errors"
-	"github.com/openshift/source-to-image/pkg/tar"
+	s2itar "github.com/openshift/source-to-image/pkg/tar"
 	"github.com/openshift/source-to-image/pkg/util"
 	utilstatus "github.com/openshift/source-to-image/pkg/util/status"
 )
@@ -142,7 +142,7 @@ type downloadFilesFromBuilderImageStep struct {
 	builder *STI
 	docker  dockerpkg.Docker
 	fs      util.FileSystem
-	tar     tar.Tar
+	tar     s2itar.Tar
 }
 
 func (step *downloadFilesFromBuilderImageStep) execute(ctx *postExecutorStepContext) error {
@@ -295,37 +295,18 @@ func (step *startRuntimeImageAndUploadFilesStep) execute(ctx *postExecutorStepCo
 	}
 
 	opts.OnStart = func(containerID string) error {
-		setStandardPerms := func(path string, info os.FileInfo, err error) error {
-			if err != nil {
-				return err
-			}
-			// chmod does nothing on windows anyway.
-			if runtime.GOOS == "windows" {
-				return nil
-			}
-			// Skip chmod for symlinks
-			if info.Mode()&os.ModeSymlink != 0 {
-				return nil
-			}
-			// file should be writable by owner (u=w) and readable by other users (a=r),
-			// executable bit should be left as is
-			mode := os.FileMode(0644)
-			// syscall.S_IEXEC == 0x40 but we can't reference the constant if we want
-			// to build releases for windows.
-			if info.IsDir() || info.Mode()&0x40 != 0 {
-				mode = 0755
-			}
-			return step.fs.Chmod(path, mode)
+		setStandardPerms := func(writer io.Writer) s2itar.Writer {
+			return s2itar.ChmodAdapter{Writer: tar.NewWriter(writer), NewFileMode: 0644, NewExecFileMode: 0755, NewDirMode: 0755}
 		}
 
 		glog.V(5).Infof("Uploading directory %q -> %q", artifactsDir, workDir)
-		onStartErr := step.docker.UploadToContainerWithCallback(artifactsDir, workDir, containerID, setStandardPerms, true)
+		onStartErr := step.docker.UploadToContainerWithTarWriter(artifactsDir, workDir, containerID, setStandardPerms)
 		if onStartErr != nil {
 			return fmt.Errorf("Couldn't upload directory (%q -> %q) into container %s: %v", artifactsDir, workDir, containerID, err)
 		}
 
 		glog.V(5).Infof("Uploading file %q -> %q", lastFilePath, lastFileDstPath)
-		onStartErr = step.docker.UploadToContainerWithCallback(lastFilePath, lastFileDstPath, containerID, setStandardPerms, true)
+		onStartErr = step.docker.UploadToContainerWithTarWriter(lastFilePath, lastFileDstPath, containerID, setStandardPerms)
 		if onStartErr != nil {
 			return fmt.Errorf("Couldn't upload file (%q -> %q) into container %s: %v", lastFilePath, lastFileDstPath, containerID, err)
 		}
diff --git a/pkg/docker/docker.go b/pkg/docker/docker.go
index 511603299..875da290d 100644
--- a/pkg/docker/docker.go
+++ b/pkg/docker/docker.go
@@ -1,6 +1,7 @@
 package docker
 
 import (
+	"archive/tar"
 	"bytes"
 	"encoding/base64"
 	"encoding/json"
@@ -28,7 +29,7 @@ import (
 
 	"github.com/openshift/source-to-image/pkg/api"
 	"github.com/openshift/source-to-image/pkg/errors"
-	"github.com/openshift/source-to-image/pkg/tar"
+	s2itar "github.com/openshift/source-to-image/pkg/tar"
 	"github.com/openshift/source-to-image/pkg/util"
 	"github.com/openshift/source-to-image/pkg/util/interrupt"
 )
@@ -113,7 +114,7 @@ type Docker interface {
 	GetImageEntrypoint(name string) ([]string, error)
 	GetLabels(name string) (map[string]string, error)
 	UploadToContainer(srcPath, destPath, container string) error
-	UploadToContainerWithCallback(srcPath, destPath, container string, walkFn filepath.WalkFunc, modifyInplace bool) error
+	UploadToContainerWithTarWriter(srcPath, destPath, container string, makeTarWriter func(io.Writer) s2itar.Writer) error
 	DownloadFromContainer(containerPath string, w io.Writer, container string) error
 	Version() (dockertypes.Version, error)
 }
@@ -360,62 +361,40 @@ func (d *stiDocker) GetImageEntrypoint(name string) ([]string, error) {
 
 // UploadToContainer uploads artifacts to the container.
 func (d *stiDocker) UploadToContainer(src, dest, container string) error {
-	makeFileWorldWritable := func(path string, info os.FileInfo, err error) error {
-		if err != nil {
-			return err
-		}
-		// Skip chmod if on windows OS and for symlinks
-		if runtime.GOOS == "windows" || info.Mode()&os.ModeSymlink != 0 {
-			return nil
-		}
-		mode := os.FileMode(0666)
-		if info.IsDir() {
-			mode = 0777
-		}
-		return os.Chmod(path, mode)
+	makeWorldWritable := func(writer io.Writer) s2itar.Writer {
+		return s2itar.ChmodAdapter{Writer: tar.NewWriter(writer), NewFileMode: 0666, NewExecFileMode: 0666, NewDirMode: 0777}
 	}
-	return d.UploadToContainerWithCallback(src, dest, container, makeFileWorldWritable, false)
+
+	return d.UploadToContainerWithTarWriter(src, dest, container, makeWorldWritable)
 }
 
-// UploadToContainerWithCallback uploads artifacts to the container.
+// UploadToContainerWithTarWriter uploads artifacts to the container.
 // If the source is a directory, then all files and sub-folders are copied into
 // the destination (which has to be directory as well).
 // If the source is a single file, then the file copied into destination (which
 // has to be full path to a file inside the container).
-// If the destination path is empty or set to ".", then we will try to figure
-// out the WORKDIR of the image that the container was created from and use that
-// as a destination. If the WORKDIR is not set, then we copy files into "/"
-// folder (docker upload default).
-func (d *stiDocker) UploadToContainerWithCallback(src, dest, container string, walkFn filepath.WalkFunc, modifyInplace bool) error {
+func (d *stiDocker) UploadToContainerWithTarWriter(src, dest, container string, makeTarWriter func(io.Writer) s2itar.Writer) error {
 	path := filepath.Dir(dest)
-	f, err := os.Open(src)
-	if err != nil {
-		return err
-	}
-	info, _ := f.Stat()
-	defer f.Close()
-	t := tar.New()
 	r, w := io.Pipe()
-	if info.IsDir() {
-		path = dest
-		go func() {
-			defer w.Close()
-			if err := t.StreamDirAsTarWithCallback(src, w, walkFn, modifyInplace); err != nil {
-				glog.V(0).Infof("error: Uploading directory to container failed: %v", err)
-			}
-		}()
-	} else {
-		go func() {
-			defer w.Close()
-			if err := t.StreamFileAsTarWithCallback(src, filepath.Base(dest), w, walkFn, modifyInplace); err != nil {
-				glog.V(0).Infof("error: Uploading files to container failed: %v", err)
-			}
-		}()
-	}
+	go func() {
+		tarWriter := makeTarWriter(w)
+		tarWriter = s2itar.RenameAdapter{Writer: tarWriter, Old: filepath.Base(src), New: filepath.Base(dest)}
+
+		err := s2itar.New().CreateTarStreamToTarWriter(src, true, tarWriter, nil)
+		if err == nil {
+			err = tarWriter.Close()
+		}
+
+		w.CloseWithError(err)
+	}()
 	glog.V(3).Infof("Uploading %q to %q ...", src, path)
 	ctx, cancel := getDefaultContext()
 	defer cancel()
-	return d.client.CopyToContainer(ctx, container, path, r, dockertypes.CopyToContainerOptions{})
+	err := d.client.CopyToContainer(ctx, container, path, r, dockertypes.CopyToContainerOptions{})
+	if err != nil {
+		glog.V(0).Infof("error: Uploading to container failed: %v", err)
+	}
+	return err
 }
 
 // DownloadFromContainer downloads file (or directory) from the container.
diff --git a/pkg/docker/docker_test.go b/pkg/docker/docker_test.go
index fb88f631d..fb7af4847 100644
--- a/pkg/docker/docker_test.go
+++ b/pkg/docker/docker_test.go
@@ -119,6 +119,7 @@ func TestCopyToContainer(t *testing.T) {
 		},
 		"error": {
 			containerID: "test-container-id",
+			src:         "badsource",
 		},
 	}
 
diff --git a/pkg/docker/fake_docker.go b/pkg/docker/fake_docker.go
index dde952e4d..a7addae0a 100644
--- a/pkg/docker/fake_docker.go
+++ b/pkg/docker/fake_docker.go
@@ -3,10 +3,11 @@ package docker
 import (
 	"errors"
 	"io"
-	"path/filepath"
+	"io/ioutil"
 
 	dockertypes "github.com/docker/engine-api/types"
 	"github.com/openshift/source-to-image/pkg/api"
+	"github.com/openshift/source-to-image/pkg/tar"
 )
 
 // FakeDocker provides a fake docker interface
@@ -119,8 +120,8 @@ func (f *FakeDocker) UploadToContainer(srcPath, destPath, container string) erro
 	return nil
 }
 
-// UploadToContainerWithCallback uploads artifacts to the container.
-func (f *FakeDocker) UploadToContainerWithCallback(srcPath, destPath, container string, walkFn filepath.WalkFunc, modifyInplace bool) error {
+// UploadToContainerWithTarWriter uploads artifacts to the container.
+func (f *FakeDocker) UploadToContainerWithTarWriter(srcPath, destPath, container string, makeTarWriter func(io.Writer) tar.Writer) error {
 	return errors.New("not implemented")
 }
 
@@ -182,6 +183,12 @@ func (f *FakeDocker) CheckAndPullImage(name string) (*api.Image, error) {
 // BuildImage builds image
 func (f *FakeDocker) BuildImage(opts BuildImageOptions) error {
 	f.BuildImageOpts = opts
+	if opts.Stdin != nil {
+		_, err := io.Copy(ioutil.Discard, opts.Stdin)
+		if err != nil {
+			return err
+		}
+	}
 	return f.BuildImageError
 }
 
diff --git a/pkg/tar/tar.go b/pkg/tar/tar.go
index 2f9518e7b..7becd7cf6 100644
--- a/pkg/tar/tar.go
+++ b/pkg/tar/tar.go
@@ -9,6 +9,7 @@ import (
 	"path/filepath"
 	"regexp"
 	"runtime"
+	"strings"
 	"time"
 
 	utilglog "github.com/openshift/source-to-image/pkg/util/glog"
@@ -39,17 +40,21 @@ type Tar interface {
 	// The name of the new tar file is returned if successful
 	CreateTarFile(base, dir string) (string, error)
 
-	// CreateTarStreamWithLogging creates a tar from the given directory
+	// CreateTarStreamToTarWriter creates a tar from the given directory
 	// and streams it to the given writer.
 	// An error is returned if an error occurs during streaming.
 	// Archived file names are written to the logger if provided
-	CreateTarStreamWithLogging(dir string, includeDirInPath bool, writer io.Writer, logger io.Writer) error
+	CreateTarStreamToTarWriter(dir string, includeDirInPath bool, writer Writer, logger io.Writer) error
 
 	// CreateTarStream creates a tar from the given directory
 	// and streams it to the given writer.
 	// An error is returned if an error occurs during streaming.
 	CreateTarStream(dir string, includeDirInPath bool, writer io.Writer) error
 
+	// CreateTarStreamReader returns an io.ReadCloser from which a tar stream can be
+	// read.  The tar stream is created using CreateTarStream.
+	CreateTarStreamReader(dir string, includeDirInPath bool) io.ReadCloser
+
 	// ExtractTarStream extracts files from a given tar stream.
 	// Times out if reading from the stream for any given file
 	// exceeds the value of timeout.
@@ -66,27 +71,6 @@ type Tar interface {
 	// exceeds the value of timeout.
 	// Extracted file names are written to the logger if provided.
 	ExtractTarStreamFromTarReader(dir string, tarReader Reader, logger io.Writer) error
-
-	// StreamFileAsTar streams a single file as a TAR archive into specified
-	// writer. The second argument is the file name in archive.
-	// The file permissions in tar archive will change to 0666.
-	StreamFileAsTar(string, string, io.Writer) error
-
-	// StreamFileAsTarWithCallback streams a single file as a TAR archive into specified
-	// writer. By specifying walkFn you can modify file's permissions in arbitrary way.
-	// If modifyInplace is set to false, file will be copied into a temporary directory before changing its permissions.
-	StreamFileAsTarWithCallback(source, name string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error
-
-	// StreamDirAsTar streams a directory as a TAR archive into specified writer.
-	// The second argument is the name of the folder in the archive.
-	// All files in the source folder will have permissions changed to 0666 in the
-	// tar archive.
-	StreamDirAsTar(string, string, io.Writer) error
-
-	// StreamDirAsTarWithCallback streams a directory as a TAR archive into specified writer.
-	// By specifying walkFn you can modify files' permissions in arbitrary way.
-	// If modifyInplace is set to false, all the files will be copied into a temporary directory before changing their permissions.
-	StreamDirAsTarWithCallback(source string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error
 }
 
 // Reader is an interface which tar.Reader implements.
@@ -95,6 +79,58 @@ type Reader interface {
 	Next() (*tar.Header, error)
 }
 
+// Writer is an interface which tar.Writer implements.
+type Writer interface {
+	io.WriteCloser
+	Flush() error
+	WriteHeader(hdr *tar.Header) error
+}
+
+// ChmodAdapter changes the mode of files and directories inline as a tarfile is
+// being written
+type ChmodAdapter struct {
+	Writer
+	NewFileMode     int64
+	NewExecFileMode int64
+	NewDirMode      int64
+}
+
+// WriteHeader changes the mode of files and directories inline as a tarfile is
+// being written
+func (a ChmodAdapter) WriteHeader(hdr *tar.Header) error {
+	if hdr.FileInfo().Mode()&os.ModeSymlink == 0 {
+		hdr.Mode &^= 0777
+		if hdr.FileInfo().IsDir() {
+			hdr.Mode |= a.NewDirMode
+		} else if hdr.FileInfo().Mode()&0010 != 0 { // S_IXUSR
+			hdr.Mode |= a.NewExecFileMode
+		} else {
+			hdr.Mode |= a.NewFileMode
+		}
+	}
+	return a.Writer.WriteHeader(hdr)
+}
+
+// RenameAdapter renames files and directories inline as a tarfile is being
+// written
+type RenameAdapter struct {
+	Writer
+	Old string
+	New string
+}
+
+// WriteHeader renames files and directories inline as a tarfile is being
+// written
+func (a RenameAdapter) WriteHeader(hdr *tar.Header) error {
+	if hdr.Name == a.Old {
+		hdr.Name = a.New
+	} else if strings.HasPrefix(hdr.Name, a.Old+"/") {
+		hdr.Name = a.New + hdr.Name[len(a.Old):]
+	}
+
+	return a.Writer.WriteHeader(hdr)
+}
+
 // New creates a new Tar
 func New() Tar {
 	return &stiTar{
@@ -115,106 +151,6 @@ func (t *stiTar) SetExclusionPattern(p *regexp.Regexp) {
 	t.exclude = p
 }
 
-// StreamDirAsTar streams the source directory as a tar archive.
-// The permissions of the file is changed to 0666.
-func (t *stiTar) StreamDirAsTar(source, dest string, writer io.Writer) error {
-	makeFileWorldWritable := func(path string, info os.FileInfo, err error) error {
-		if err != nil {
-			return err
-		}
-		// Skip chmod if on windows OS and for symlinks
-		if runtime.GOOS == "windows" || info.Mode()&os.ModeSymlink != 0 {
-			return nil
-		}
-		mode := os.FileMode(0666)
-		if info.IsDir() {
-			mode = 0777
-		}
-		return os.Chmod(path, mode)
-	}
-	return t.StreamDirAsTarWithCallback(source, writer, makeFileWorldWritable, false)
-}
-
-// StreamDirAsTarWithCallback streams the source directory as a tar archive.
-func (t *stiTar) StreamDirAsTarWithCallback(source string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error {
-	f, err := os.Open(source)
-	if err != nil {
-		return err
-	}
-	defer f.Close()
-	info, err := f.Stat()
-	if err != nil {
-		return err
-	}
-	if !info.IsDir() {
-		return fmt.Errorf("the source %q has to be directory, not a file", source)
-	}
-	destDir := source
-	if !modifyInplace {
-		fs := util.NewFileSystem()
-		tmpDir, err := ioutil.TempDir("", "s2i-")
-		if err != nil {
-			return err
-		}
-		defer os.RemoveAll(tmpDir)
-		if err = fs.Copy(source, tmpDir); err != nil {
-			return err
-		}
-		destDir = tmpDir
-	}
-	if err := filepath.Walk(destDir, walkFn); err != nil {
-		return err
-	}
-	return t.CreateTarStream(destDir, false, writer)
-}
-
-// StreamFileAsTar streams the source file as a tar archive.
-// The permissions of all files in archive is changed to 0666.
-func (t *stiTar) StreamFileAsTar(source, name string, writer io.Writer) error {
-	makeFileWorldWritable := func(path string, info os.FileInfo, err error) error {
-		if err != nil {
-			return err
-		}
-		// Skip chmod if on windows OS and for symlinks
-		if runtime.GOOS == "windows" || info.Mode()&os.ModeSymlink != 0 {
-			return nil
-		}
-		return os.Chmod(path, 0666)
-	}
-	return t.StreamFileAsTarWithCallback(source, name, writer, makeFileWorldWritable, false)
-}
-
-// StreamFileAsTarWithCallback streams the source file as a tar archive.
-func (t *stiTar) StreamFileAsTarWithCallback(source, name string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error {
-	f, err := os.Open(source)
-	if err != nil {
-		return err
-	}
-	defer f.Close()
-	info, err := f.Stat()
-	if err != nil {
-		return err
-	}
-	if info.IsDir() {
-		return fmt.Errorf("the source %q has to be regular file, not directory", source)
-	}
-	fs := util.NewFileSystem()
-	tmpDir, err := ioutil.TempDir("", "s2i-")
-	if err != nil {
-		return err
-	}
-	defer os.RemoveAll(tmpDir)
-	dst := filepath.Join(tmpDir, name)
-	if err := fs.Copy(source, dst); err != nil {
-		return err
-	}
-	fileInfo, fileErr := os.Stat(dst)
-	if err := walkFn(dst, fileInfo, fileErr); err != nil {
-		return err
-	}
-	return t.CreateTarStream(tmpDir, false, writer)
-}
-
 // CreateTarFile creates a tar file from the given directory
 // while excluding files that match the given exclusion pattern
 // It returns the name of the created file
@@ -234,19 +170,29 @@ func (t *stiTar) shouldExclude(path string) bool {
 	return t.exclude != nil && t.exclude.String() != "" && t.exclude.MatchString(path)
 }
 
-// CreateTarStream calls CreateTarStreamWithLogging with a nil logger
+// CreateTarStream calls CreateTarStreamToTarWriter with a nil logger
 func (t *stiTar) CreateTarStream(dir string, includeDirInPath bool, writer io.Writer) error {
-	return t.CreateTarStreamWithLogging(dir, includeDirInPath, writer, nil)
-}
-
-// CreateTarStreamWithLogging creates a tar stream on the given writer from
-// the given directory while excluding files that match the given
-// exclusion pattern.
-// TODO: this should encapsulate the goroutine that generates the stream.
-func (t *stiTar) CreateTarStreamWithLogging(dir string, includeDirInPath bool, writer io.Writer, logger io.Writer) error {
-	dir = filepath.Clean(dir) // remove relative paths and extraneous slashes
 	tarWriter := tar.NewWriter(writer)
 	defer tarWriter.Close()
+
+	return t.CreateTarStreamToTarWriter(dir, includeDirInPath, tarWriter, nil)
+}
+
+// CreateTarStreamReader returns an io.ReadCloser from which a tar stream can be
+// read.  The tar stream is created using CreateTarStream.
+func (t *stiTar) CreateTarStreamReader(dir string, includeDirInPath bool) io.ReadCloser {
+	r, w := io.Pipe()
+	go func() {
+		w.CloseWithError(t.CreateTarStream(dir, includeDirInPath, w))
+	}()
+	return r
+}
+
+// CreateTarStreamToTarWriter creates a tar stream on the given writer from
+// the given directory while excluding files that match the given
+// exclusion pattern.
+func (t *stiTar) CreateTarStreamToTarWriter(dir string, includeDirInPath bool, tarWriter Writer, logger io.Writer) error {
+	dir = filepath.Clean(dir) // remove relative paths and extraneous slashes
 	glog.V(5).Infof("Adding %q to tar ...", dir)
 	err := filepath.Walk(dir, func(path string, info os.FileInfo, err error) error {
 		if err != nil {
@@ -292,7 +238,7 @@ func (t *stiTar) CreateTarStreamWithLogging(dir string, includeDirInPath bool, w
 }
 
 // writeTarHeader writes tar header for given file, returns error if operation fails
-func (t *stiTar) writeTarHeader(tarWriter *tar.Writer, dir string, path string, info os.FileInfo, includeDirInPath bool, logger io.Writer) error {
+func (t *stiTar) writeTarHeader(tarWriter Writer, dir string, path string, info os.FileInfo, includeDirInPath bool, logger io.Writer) error {
 	var (
 		link string
 		err  error
@@ -341,31 +287,26 @@ func (t *stiTar) ExtractTarStreamWithLogging(dir string, reader io.Reader, logge
 // Times out if reading from the stream for any given file
 // exceeds the value of timeout
 func (t *stiTar) ExtractTarStreamFromTarReader(dir string, tarReader Reader, logger io.Writer) error {
-	errorChannel := make(chan error, 1)
-	timeoutTimer := time.NewTimer(t.timeout)
-	go func() {
+	err := util.TimeoutAfter(t.timeout, "", func(timeoutTimer *time.Timer) error {
 		for {
 			header, err := tarReader.Next()
 			if !timeoutTimer.Stop() {
-				break
+				return &util.TimeoutError{}
 			}
 			timeoutTimer.Reset(t.timeout)
 			if err == io.EOF {
-				errorChannel <- nil
-				break
+				return nil
 			}
 			if err != nil {
 				glog.Errorf("Error reading next tar header: %v", err)
-				errorChannel <- err
-				break
+				return err
 			}
 			if header.FileInfo().IsDir() {
 				dirPath := filepath.Join(dir, header.Name)
 				glog.V(3).Infof("Creating directory %s", dirPath)
 				if err = os.MkdirAll(dirPath, 0700); err != nil {
 					glog.Errorf("Error creating dir %q: %v", dirPath, err)
-					errorChannel <- err
-					break
+					return err
 				}
 			} else {
 				fileDir := filepath.Dir(header.Name)
@@ -373,40 +314,35 @@ func (t *stiTar) ExtractTarStreamFromTarReader(dir string, tarReader Reader, log
 				glog.V(3).Infof("Creating directory %s", dirPath)
 				if err = os.MkdirAll(dirPath, 0700); err != nil {
 					glog.Errorf("Error creating dir %q: %v", dirPath, err)
-					errorChannel <- err
-					break
+					return err
 				}
 				if header.Typeflag == tar.TypeSymlink {
 					if err := extractLink(dir, header, tarReader); err != nil {
 						glog.Errorf("Error extracting link %q: %v", header.Name, err)
-						errorChannel <- err
-						break
+						return err
 					}
 					continue
 				}
 				logFile(logger, header.Name)
 				if err := extractFile(dir, header, tarReader); err != nil {
 					glog.Errorf("Error extracting file %q: %v", header.Name, err)
-					errorChannel <- err
-					break
+					return err
 				}
 			}
 		}
-	}()
+	})
 
-	for {
-		select {
-		case err := <-errorChannel:
-			if err != nil {
-				glog.Error("Error extracting tar stream")
-			} else {
-				glog.V(2).Info("Done extracting tar stream")
-			}
-			return err
-		case <-timeoutTimer.C:
-			return errors.NewTarTimeoutError()
-		}
+	if err != nil {
+		glog.Error("Error extracting tar stream")
+	} else {
+		glog.V(2).Info("Done extracting tar stream")
 	}
+
+	if util.IsTimeoutError(err) {
+		err = errors.NewTarTimeoutError()
+	}
+
+	return err
 }
 
 func extractLink(dir string, header *tar.Header, tarReader io.Reader) error {
diff --git a/pkg/test/tar.go b/pkg/test/tar.go
index ab2b35a0e..d33052454 100644
--- a/pkg/test/tar.go
+++ b/pkg/test/tar.go
@@ -3,7 +3,6 @@ package test
 import (
 	"errors"
 	"io"
-	"path/filepath"
 	"regexp"
 	"sync"
 
@@ -73,29 +72,9 @@ func (f *FakeTar) ExtractTarStream(dir string, reader io.Reader) error {
 func (f *FakeTar) SetExclusionPattern(*regexp.Regexp) {
 }
 
-// StreamFileAsTar streams a single file as a TAR archive into specified writer.
-func (f *FakeTar) StreamFileAsTar(string, string, io.Writer) error {
-	return nil
-}
-
-// StreamFileAsTarWithCallback streams a single file as a TAR archive into specified writer.
-func (f *FakeTar) StreamFileAsTarWithCallback(source, name string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error {
-	return errors.New("not implemented")
-}
-
-// StreamDirAsTar streams a directory as a TAR archive into specified writer.
-func (f *FakeTar) StreamDirAsTar(string, string, io.Writer) error {
-	return nil
-}
-
-// StreamDirAsTarWithCallback streams a directory as a TAR archive into specified writer.
-func (f *FakeTar) StreamDirAsTarWithCallback(source string, writer io.Writer, walkFn filepath.WalkFunc, modifyInplace bool) error {
-	return errors.New("not implemented")
-}
-
-// CreateTarStreamWithLogging creates a tar from the given directory and streams
+// CreateTarStreamToTarWriter creates a tar from the given directory and streams
 // it to the given writer.
-func (f *FakeTar) CreateTarStreamWithLogging(dir string, includeDirInPath bool, writer io.Writer, logger io.Writer) error {
+func (f *FakeTar) CreateTarStreamToTarWriter(dir string, includeDirInPath bool, writer tar.Writer, logger io.Writer) error {
 	f.lock.Lock()
 	defer f.lock.Unlock()
 	f.CreateTarDir = dir
@@ -105,5 +84,14 @@ func (f *FakeTar) CreateTarStreamWithLogging(dir string, includeDirInPath bool,
 // CreateTarStream creates a tar from the given directory and streams it to the
 // given writer.
 func (f *FakeTar) CreateTarStream(dir string, includeDirInPath bool, writer io.Writer) error {
-	return f.CreateTarStreamWithLogging(dir, includeDirInPath, writer, nil)
+	return f.CreateTarStreamToTarWriter(dir, includeDirInPath, nil, nil)
+}
+
+// CreateTarStreamReader returns an io.ReadCloser from which a tar stream can be
+// read.  The tar stream is created using CreateTarStream.
+func (f *FakeTar) CreateTarStreamReader(dir string, includeDirInPath bool) io.ReadCloser {
+	f.CreateTarStreamToTarWriter(dir, includeDirInPath, nil, nil)
+	r, w := io.Pipe()
+	go w.CloseWithError(f.CreateTarError)
+	return r
 }
diff --git a/pkg/util/status/build_status.go b/pkg/util/status/build_status.go
index 74902e780..d6dabd69d 100644
--- a/pkg/util/status/build_status.go
+++ b/pkg/util/status/build_status.go
@@ -97,13 +97,6 @@ const (
 	// range of failures.
 	ReasonMessageGenericS2iBuildFailed api.StepFailureMessage = "Generic S2I Build failure - check S2I logs for details"
 
-	// ReasonTarSourceFailed is the failure reason associated with a failure to
-	// tar the current source.
-	ReasonTarSourceFailed api.StepFailureReason = "TarSourceFailed"
-	// ReasonMessageTarSourceFailed is the message associated with a failure to
-	// tar the current source.
-	ReasonMessageTarSourceFailed api.StepFailureMessage = "Failed to tar source files"
-
 	// ReasonOnBuildForbidden is the failure reason associated with an image that
 	// uses the ONBUILD instruction when it's not allowed.
 	ReasonOnBuildForbidden api.StepFailureReason = "OnBuildForbidden"