diff --git a/python/src/com/jetbrains/python/inspections/PyCompatibilityInspection.java b/python/src/com/jetbrains/python/inspections/PyCompatibilityInspection.java
index 5c4d63bdd0d0..528118421521 100644
--- a/python/src/com/jetbrains/python/inspections/PyCompatibilityInspection.java
+++ b/python/src/com/jetbrains/python/inspections/PyCompatibilityInspection.java
@@ -433,7 +433,10 @@ public class PyCompatibilityInspection extends PyInspection {
       StringBuilder message = new StringBuilder(myCommonMessage);
       for (int i = 0; i != myVersionsToProcess.size(); ++i) {
         LanguageLevel languageLevel = myVersionsToProcess.get(i);
-        if (!languageLevel.supportsSetLiterals()) {
+        if (languageLevel == LanguageLevel.PYTHON24) {
+          registerProblem(node, "Python version 2.4 doesn't support this syntax.");
+        }
+        else if (!languageLevel.supportsSetLiterals()) {
           final PyWithItem[] items = node.getWithItems();
           if (items.length > 1) {
             for (int j = 1; j < items.length; j++) {
diff --git a/python/src/com/jetbrains/python/validation/UnsupportedFeatures.java b/python/src/com/jetbrains/python/validation/UnsupportedFeatures.java
index 0deaa91d5d9d..64d11610fdeb 100644
--- a/python/src/com/jetbrains/python/validation/UnsupportedFeatures.java
+++ b/python/src/com/jetbrains/python/validation/UnsupportedFeatures.java
@@ -271,7 +271,10 @@ public class UnsupportedFeatures extends PyAnnotator {
   public void visitPyWithStatement(PyWithStatement node) {
     super.visitPyWithStatement(node);
     final LanguageLevel languageLevel = getLanguageLevel(node);
-    if (!languageLevel.supportsSetLiterals()) {
+    if (languageLevel == LanguageLevel.PYTHON24) {
+      getHolder().createWarningAnnotation(node, "Python version 2.4 doesn't support this syntax.");
+    }
+    else if (!languageLevel.supportsSetLiterals()) {
       final PyWithItem[] items = node.getWithItems();
       if (items.length > 1) {
         for (int i = 1; i < items.length; i++) {
@@ -280,6 +283,7 @@ public class UnsupportedFeatures extends PyAnnotator {
       }
     }
   }
+
   @Override
   public void visitPyClass(PyClass node) {  //PY-2719
     if (getLanguageLevel(node) == LanguageLevel.PYTHON24) {
diff --git a/python/testData/inspections/PyCompatibilityInspection/test.py b/python/testData/inspections/PyCompatibilityInspection/test.py
index fec63feb9933..4c8304c2c186 100644
--- a/python/testData/inspections/PyCompatibilityInspection/test.py
+++ b/python/testData/inspections/PyCompatibilityInspection/test.py
@@ -14,10 +14,10 @@ class BaseC<warning descr="Python version 2.4 does not support this syntax.">()<
 
 ########################
 
-with A() as a, <warning descr="Python versions 2.4, 2.5, 2.6, 3.0 do not support multiple context managers">B() as b</warning>:
+<warning descr="Python version 2.4 doesn't support this syntax.">with A() as a, <warning descr="Python versions 2.5, 2.6, 3.0 do not support multiple context managers">B() as b</warning>:
     suite
 
-########################
+</warning>########################
 a = <warning descr="Python versions 3.0, 3.1 do not support backquotes, use repr() instead">`imp.acquire_lock()`</warning>
 
 ########################
@@ -89,4 +89,10 @@ def unified_tef():
     else:
         pass
     finally:
-        pass</warning>
+        pass
+
+</warning>########################
+# PY-2797
+
+<warning descr="Python version 2.4 doesn't support this syntax.">with open("x.txt") as f:
+    data = f.read()</warning>