diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index c480cd2d..956a5d6e 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -1,4 +1,10 @@
-1.7.0 (08-08-2019)
+1.7.1 (2019-08-28)
+------------------
+
+* `#108 <https://github.com/pytest-dev/execnet/issues/108>`__: Revert ``linecache`` optimization introduced in ``1.7.0`` which
+  broke remote execution.
+
+1.7.0 (2019-08-08)
 ------------------
 
 * `#102 <https://github.com/pytest-dev/execnet/pull/102>`__: Show paths in stack traces
diff --git a/execnet/gateway.py b/execnet/gateway.py
index 5a636213..8e2c1de0 100644
--- a/execnet/gateway.py
+++ b/execnet/gateway.py
@@ -4,6 +4,7 @@
 (c) 2004-2013, Holger Krekel and others
 """
 import inspect
+import linecache
 import os
 import sys
 import textwrap
@@ -111,10 +112,8 @@ def remote_exec(self, source, **kwargs):
         file_name = None
         if isinstance(source, types.ModuleType):
             file_name = inspect.getsourcefile(source)
-            if not file_name:
-                source = inspect.getsource(source)
-            else:
-                source = None
+            linecache.updatecache(file_name)
+            source = inspect.getsource(source)
         elif isinstance(source, types.FunctionType):
             call_name = source.__name__
             file_name = inspect.getsourcefile(source)
diff --git a/execnet/gateway_base.py b/execnet/gateway_base.py
index 5e101411..21f408f7 100644
--- a/execnet/gateway_base.py
+++ b/execnet/gateway_base.py
@@ -14,7 +14,6 @@
 """
 from __future__ import with_statement
 
-import linecache
 import os
 import struct
 import sys
@@ -1077,9 +1076,6 @@ def executetask(self, item):
                         name = name.encode("ascii")
                     newkwargs[name] = value
                 kwargs = newkwargs
-            if source is None:
-                assert file_name, file_name
-                source = "".join(linecache.updatecache(file_name))
             loc = {"channel": channel, "__name__": "__channelexec__"}
             self._trace("execution starts[%s]: %s" % (channel.id, repr(source)[:50]))
             channel._executing = True
diff --git a/testing/test_gateway.py b/testing/test_gateway.py
index 13ec8cef..fc1cf6ae 100644
--- a/testing/test_gateway.py
+++ b/testing/test_gateway.py
@@ -122,6 +122,37 @@ def test_remote_exec_module(self, tmpdir, gw):
         name = channel.receive()
         assert name == 2
 
+    def test_remote_exec_module_is_removed(self, gw, tmpdir, monkeypatch):
+        remotetest = tmpdir.join("remote.py")
+        remotetest.write(
+            dedent(
+                """
+            def remote():
+                return True
+
+            if __name__ == '__channelexec__':
+                for item in channel:  # noqa
+                    channel.send(eval(item))  # noqa
+
+            """
+            )
+        )
+
+        monkeypatch.syspath_prepend(tmpdir)
+        import remote
+
+        ch = gw.remote_exec(remote)
+        # simulate sending the code to a remote location that does not have
+        # access to the source
+        tmpdir.remove()
+        ch.send("remote()")
+        try:
+            result = ch.receive()
+        finally:
+            ch.close()
+
+        assert result is True
+
     def test_remote_exec_module_with_traceback(self, gw, tmpdir, monkeypatch):
         remotetest = tmpdir.join("remotetest.py")
         remotetest.write(