diff --git a/lib/ansible/parsing/mod_args.py b/lib/ansible/parsing/mod_args.py
index ad4293013b..50e39f48d0 100644
--- a/lib/ansible/parsing/mod_args.py
+++ b/lib/ansible/parsing/mod_args.py
@@ -233,9 +233,10 @@ class ModuleArgsParser:
         task, dealing with all sorts of levels of fuzziness.
         '''
 
-        thing       = None
+        thing      = None
+
         action      = None
-        connection  = self._task_ds.get('connection', None)
+        delegate_to = self._task_ds.get('delegate_to', None)
         args        = dict()
 
 
@@ -255,12 +256,11 @@ class ModuleArgsParser:
         # local_action
         local_action = False
         if 'local_action' in self._task_ds:
-            # local_action is similar but also implies a connection='local'
+            # local_action is similar but also implies a delegate_to
             if action is not None:
                 raise AnsibleParserError("action and local_action are mutually exclusive", obj=self._task_ds)
             thing = self._task_ds.get('local_action', '')
-            connection = 'local'
-            local_action = True
+            delegate_to = 'localhost'
             action, args = self._normalize_parameters(thing, additional_args=additional_args)
 
         # walk the input dictionary to see we recognize a module name
@@ -294,8 +294,4 @@ class ModuleArgsParser:
         # shell modules require special handling
         (action, args) = self._handle_shell_weirdness(action, args)
 
-        # now add the local action flag to the args, if it was set
-        if local_action:
-            args['_local_action'] = local_action
-
-        return (action, args, connection)
+        return (action, args, delegate_to)
diff --git a/lib/ansible/playbook/task.py b/lib/ansible/playbook/task.py
index bc32903f7f..51ba8e9869 100644
--- a/lib/ansible/playbook/task.py
+++ b/lib/ansible/playbook/task.py
@@ -184,11 +184,11 @@ class Task(Base, Conditional, Taggable, Become):
         # and the delegate_to value from the various possible forms
         # supported as legacy
         args_parser = ModuleArgsParser(task_ds=ds)
-        (action, args, connection) = args_parser.parse()
+        (action, args, delegate_to) = args_parser.parse()
 
         new_ds['action']      = action
         new_ds['args']        = args
-        new_ds['connection'] = connection
+        new_ds['delegate_to'] = delegate_to
 
         # we handle any 'vars' specified in the ds here, as we may
         # be adding things to them below (special handling for includes).
@@ -200,8 +200,8 @@ class Task(Base, Conditional, Taggable, Become):
         else:
             new_ds['vars'] = dict()
 
-        for (k,v) in iteritems(ds):
-            if k in ('action', 'local_action', 'args', 'connection') or k == action or k == 'shell':
+        for (k,v) in ds.iteritems():
+            if k in ('action', 'local_action', 'args', 'delegate_to') or k == action or k == 'shell':
                 # we don't want to re-assign these values, which were
                 # determined by the ModuleArgsParser() above
                 continue