diff --git a/src/api/api_context.cpp b/src/api/api_context.cpp
index 1d2b22059..7dc8d1a12 100644
--- a/src/api/api_context.cpp
+++ b/src/api/api_context.cpp
@@ -82,13 +82,13 @@ namespace api {
     context::context(context_params * p, bool user_ref_count):
         m_params(p != 0 ? *p : context_params()),
         m_user_ref_count(user_ref_count),
-        m_manager(m_params.m_proof ? PGM_FINE : PGM_DISABLED, m_params.m_trace ? m_params.m_trace_file_name.c_str() : 0), 
-        m_plugins(m_manager),
-        m_arith_util(m_manager),
-        m_bv_util(m_manager),
-        m_datalog_util(m_manager),
-        m_last_result(m_manager),
-        m_ast_trail(m_manager),
+        m_manager(m_params.mk_ast_manager()),
+        m_plugins(m()),
+        m_arith_util(m()),
+        m_bv_util(m()),
+        m_datalog_util(m()),
+        m_last_result(m()),
+        m_ast_trail(m()),
         m_replay_stack() {
 
         m_solver     = 0;
@@ -102,22 +102,16 @@ namespace api {
         m_smtlib_parser_has_decls = false;
         
         z3_bound_num_procs();
-        //
-        // Configuration parameter settings.
-        //
-        if (m_params.m_debug_ref_count) {
-            m_manager.debug_ref_count();
-        }
         
         m_error_handler = &default_error_handler;
 
-        m_basic_fid = m_manager.get_basic_family_id();
-        m_arith_fid = m_manager.get_family_id("arith");
-        m_bv_fid    = m_manager.get_family_id("bv");
-        m_array_fid = m_manager.get_family_id("array");
-        m_dt_fid    = m_manager.get_family_id("datatype");
-        m_datalog_fid = m_manager.get_family_id("datalog_relation");
-        m_dt_plugin = static_cast<datatype_decl_plugin*>(m_manager.get_plugin(m_dt_fid));
+        m_basic_fid = m().get_basic_family_id();
+        m_arith_fid = m().get_family_id("arith");
+        m_bv_fid    = m().get_family_id("bv");
+        m_array_fid = m().get_family_id("array");
+        m_dt_fid    = m().get_family_id("datatype");
+        m_datalog_fid = m().get_family_id("datalog_relation");
+        m_dt_plugin = static_cast<datatype_decl_plugin*>(m().get_plugin(m_dt_fid));
 
         if (!m_user_ref_count) {
             m_replay_stack.push_back(0);
@@ -143,7 +137,7 @@ namespace api {
         {
             if (m_interruptable)
                 (*m_interruptable)();
-            m_manager.set_cancel(true);
+            m().set_cancel(true);
         }
     }
     
@@ -196,12 +190,12 @@ namespace api {
     expr * context::mk_and(unsigned num_exprs, expr * const * exprs) {
         switch(num_exprs) {
         case 0: 
-            return m_manager.mk_true(); 
+            return m().mk_true(); 
         case 1: 
             save_ast_trail(exprs[0]);
             return exprs[0];
         default: {
-            expr * a = m_manager.mk_and(num_exprs, exprs);
+            expr * a = m().mk_and(num_exprs, exprs);
             save_ast_trail(a);
             return a;
         } }
@@ -217,7 +211,7 @@ namespace api {
         SASSERT(m_replay_stack.size() > num_scopes);
         unsigned j = m_replay_stack.size() - num_scopes - 1;
         if (!m_replay_stack[j]) {
-            m_replay_stack[j] = alloc(ast_ref_vector, m_manager);
+            m_replay_stack[j] = alloc(ast_ref_vector, m());
         }
         m_replay_stack[j]->push_back(n);
     }
@@ -325,7 +319,7 @@ namespace api {
     smt::kernel & context::get_smt_kernel() {
         if (!m_solver) {
             m_fparams.updt_params(m_params);
-            m_solver = alloc(smt::kernel, m_manager, m_fparams);
+            m_solver = alloc(smt::kernel, m(), m_fparams);
         }
         return *m_solver;
     }
diff --git a/src/api/api_context.h b/src/api/api_context.h
index 02768556d..edb79b2d5 100644
--- a/src/api/api_context.h
+++ b/src/api/api_context.h
@@ -46,7 +46,7 @@ namespace api {
         struct add_plugins {  add_plugins(ast_manager & m); };
         context_params             m_params;
         bool                       m_user_ref_count; //!< if true, the user is responsible for managing referenc counters.
-        ast_manager                m_manager;
+        scoped_ptr<ast_manager>    m_manager;
         add_plugins                m_plugins;
 
         arith_util                 m_arith_util;
@@ -101,10 +101,10 @@ namespace api {
         
         context(context_params * p, bool user_ref_count = false);
         ~context();
-        ast_manager & m() { return m_manager; }
+        ast_manager & m() const { return *(m_manager.get()); }
 
         context_params & params() { return m_params; }
-        bool produce_proofs() const { return m_manager.proofs_enabled(); }
+        bool produce_proofs() const { return m().proofs_enabled(); }
         bool produce_models() const { return m_params.m_model; }
         bool produce_unsat_cores() const { return m_params.m_unsat_core; }
         bool use_auto_config() const { return m_params.m_auto_config; }
diff --git a/src/cmd_context/cmd_context.cpp b/src/cmd_context/cmd_context.cpp
index ae375fc99..828cc3a68 100644
--- a/src/cmd_context/cmd_context.cpp
+++ b/src/cmd_context/cmd_context.cpp
@@ -592,14 +592,9 @@ void cmd_context::init_manager() {
     SASSERT(m_manager == 0);
     SASSERT(m_pmanager == 0);
     m_check_sat_result = 0;
-    m_manager  = alloc(ast_manager, 
-                       produce_proofs() ? PGM_FINE : PGM_DISABLED, 
-                       m_params.m_trace ? m_params.m_trace_file_name.c_str() : 0);
+    m_manager  = m_params.mk_ast_manager();
     m_pmanager = alloc(pdecl_manager, *m_manager);
     init_manager_core(true);
-    // PARAM-TODO
-    // if (params().m_smtlib2_compliant)
-    //    m_manager->enable_int_real_coercions(false);
 }
 
 void cmd_context::init_external_manager() {
diff --git a/src/cmd_context/context_params.cpp b/src/cmd_context/context_params.cpp
index 96af5b52a..41ad5a423 100644
--- a/src/cmd_context/context_params.cpp
+++ b/src/cmd_context/context_params.cpp
@@ -79,6 +79,9 @@ void context_params::set(char const * param, char const * value) {
     else if (p == "debug_ref_count") {
         set_bool(m_debug_ref_count, param, value);
     }
+    else if (p == "smtlib2_compliant") {
+        set_bool(m_smtlib2_compliant, param, value);
+    }
     else {
         throw default_exception("unknown parameter '%s'", p.c_str());
     }
@@ -99,6 +102,7 @@ void context_params::updt_params(params_ref const & p) {
     m_trace_file_name   = p.get_str("trace_file_name", "z3.log");
     m_unsat_core        = p.get_bool("unsat_core", false);
     m_debug_ref_count   = p.get_bool("debug_ref_count", false);
+    m_smtlib2_compliant = p.get_bool("smtlib2_compliant", false);
 }
 
 void context_params::collect_param_descrs(param_descrs & d) {
@@ -113,6 +117,7 @@ void context_params::collect_param_descrs(param_descrs & d) {
     d.insert("trace_file_name", CPK_STRING, "trace out file name (see option 'trace')", "z3.log");
     d.insert("unsat_core", CPK_BOOL, "unsat-core generation for solvers, this parameter can be overwritten when creating a solver, not every solver in Z3 supports unsat core generation", "false");
     d.insert("debug_ref_count", CPK_BOOL, "debug support for AST reference counting", "false");
+    d.insert("smtlib2_compliant", CPK_BOOL, "enable/disable SMT-LIB 2.0 compliance", "false");
 }
 
 params_ref context_params::merge_default_params(params_ref const & p) {
@@ -133,4 +138,15 @@ void context_params::init_solver_params(ast_manager & m, solver & s, params_ref
     s.updt_params(merge_default_params(p));
 }
 
+ast_manager * context_params::mk_ast_manager() {
+    ast_manager * r = alloc(ast_manager, 
+                            m_proof ? PGM_FINE : PGM_DISABLED, 
+                            m_trace ? m_trace_file_name.c_str() : 0);
+    if (m_smtlib2_compliant)
+        r->enable_int_real_coercions(false);
+    if (m_debug_ref_count)
+        r->debug_ref_count();
+    return r;
+}
+
 
diff --git a/src/cmd_context/context_params.h b/src/cmd_context/context_params.h
index b3933dc23..dd60b9616 100644
--- a/src/cmd_context/context_params.h
+++ b/src/cmd_context/context_params.h
@@ -37,6 +37,7 @@ public:
     bool        m_model;
     bool        m_model_validate;
     bool        m_unsat_core;
+    bool        m_smtlib2_compliant; // it must be here because it enable/disable the use of coercions in the ast_manager.
     unsigned    m_timeout;
 
     context_params();
@@ -63,6 +64,11 @@ public:
        Example: auto_config
     */
     params_ref merge_default_params(params_ref const & p);
+    
+    /**
+       \brief Create an AST manager using this configuration.
+    */
+    ast_manager * mk_ast_manager();
 };
 
 
diff --git a/src/parsers/smt2/smt2parser.cpp b/src/parsers/smt2/smt2parser.cpp
index ee93dca2f..c99c362bd 100644
--- a/src/parsers/smt2/smt2parser.cpp
+++ b/src/parsers/smt2/smt2parser.cpp
@@ -2365,7 +2365,7 @@ namespace smt2 {
         parser(cmd_context & ctx, std::istream & is, bool interactive, params_ref const & p):
             m_ctx(ctx), 
             m_params(p),
-            m_scanner(ctx, is, interactive, p), 
+            m_scanner(ctx, is, interactive),
             m_curr(scanner::NULL_TOKEN),
             m_curr_cmd(0),
             m_num_bindings(0),
diff --git a/src/parsers/smt2/smt2scanner.cpp b/src/parsers/smt2/smt2scanner.cpp
index e2b2030ac..0f6101a93 100644
--- a/src/parsers/smt2/smt2scanner.cpp
+++ b/src/parsers/smt2/smt2scanner.cpp
@@ -242,7 +242,7 @@ namespace smt2 {
         }
     }
     
-    scanner::scanner(cmd_context & ctx, std::istream& stream, bool interactive, params_ref const & _p):
+    scanner::scanner(cmd_context & ctx, std::istream& stream, bool interactive):
         m_ctx(ctx),
         m_interactive(interactive), 
         m_spos(0),
@@ -254,9 +254,8 @@ namespace smt2 {
         m_bend(0),
         m_stream(stream),
         m_cache_input(false) {
-
-        parser_params p(_p);
-        m_smtlib2_compliant = p.smt2_compliant();
+        
+        m_smtlib2_compliant = ctx.params().m_smtlib2_compliant;
 
         for (int i = 0; i < 256; ++i) {
             m_normalized[i] = (char) i;
diff --git a/src/parsers/smt2/smt2scanner.h b/src/parsers/smt2/smt2scanner.h
index c63a09ff1..7b74c752f 100644
--- a/src/parsers/smt2/smt2scanner.h
+++ b/src/parsers/smt2/smt2scanner.h
@@ -76,7 +76,7 @@ namespace smt2 {
             EOF_TOKEN
         };
         
-        scanner(cmd_context & ctx, std::istream& stream, bool interactive = false, params_ref const & p = params_ref());
+        scanner(cmd_context & ctx, std::istream& stream, bool interactive = false);
         
         ~scanner() {}    
         
diff --git a/src/parsers/util/parser_params.pyg b/src/parsers/util/parser_params.pyg
index fa8f17a00..3f7495f43 100644
--- a/src/parsers/util/parser_params.pyg
+++ b/src/parsers/util/parser_params.pyg
@@ -3,4 +3,4 @@ def_module_params('parser',
                   params=(('ignore_user_patterns', BOOL, False, 'ignore patterns provided by the user'),
                           ('ignore_bad_patterns',  BOOL, True, 'ignore malformed patterns'),
                           ('error_for_visual_studio', BOOL, False, 'display error messages in Visual Studio format'),
-                          ('smt2_compliant', BOOL, False, 'enable/disable SMT-LIB 2.0 compliance')))
+                          ))