diff --git a/arch/arm/mach-omap2/omap_hwmod.c b/arch/arm/mach-omap2/omap_hwmod.c
index 503832e20d56..6c6d31b432d2 100644
--- a/arch/arm/mach-omap2/omap_hwmod.c
+++ b/arch/arm/mach-omap2/omap_hwmod.c
@@ -1534,10 +1534,9 @@ static int _enable(struct omap_hwmod *oh)
 	pr_debug("omap_hwmod: %s: enabling\n", oh->name);
 
 	/*
-	 * hwmods with HWMOD_INIT_NO_IDLE flag set are left
-	 * in enabled state at init.
-	 * Now that someone is really trying to enable them,
-	 * just ensure that the hwmod mux is set.
+	 * hwmods with HWMOD_INIT_NO_IDLE flag set are left in enabled
+	 * state at init.  Now that someone is really trying to enable
+	 * them, just ensure that the hwmod mux is set.
 	 */
 	if (oh->_int_flags & _HWMOD_SKIP_ENABLE) {
 		/*
@@ -1819,46 +1818,60 @@ static int __init _init(struct omap_hwmod *oh, void *data)
 }
 
 /**
- * _setup - do initial configuration of omap_hwmod
+ * _setup_iclk_autoidle - configure an IP block's interface clocks
  * @oh: struct omap_hwmod *
  *
- * Writes the CLOCKACTIVITY bits @clockact to the hwmod @oh
- * OCP_SYSCONFIG register.  Returns 0.
+ * Set up the module's interface clocks.  XXX This function is still mostly
+ * a stub; implementing this properly requires iclk autoidle usecounting in
+ * the clock code.   No return value.
  */
-static int _setup(struct omap_hwmod *oh, void *data)
+static void __init _setup_iclk_autoidle(struct omap_hwmod *oh)
 {
-	int i, r;
-	u8 postsetup_state;
+	int i;
 
 	if (oh->_state != _HWMOD_STATE_INITIALIZED)
-		return 0;
+		return;
 
-	/* Set iclk autoidle mode */
-	if (oh->slaves_cnt > 0) {
-		for (i = 0; i < oh->slaves_cnt; i++) {
-			struct omap_hwmod_ocp_if *os = oh->slaves[i];
-			struct clk *c = os->_clk;
+	for (i = 0; i < oh->slaves_cnt; i++) {
+		struct omap_hwmod_ocp_if *os = oh->slaves[i];
+		struct clk *c = os->_clk;
 
-			if (!c)
-				continue;
+		if (!c)
+			continue;
 
-			if (os->flags & OCPIF_SWSUP_IDLE) {
-				/* XXX omap_iclk_deny_idle(c); */
-			} else {
-				/* XXX omap_iclk_allow_idle(c); */
-				clk_enable(c);
-			}
+		if (os->flags & OCPIF_SWSUP_IDLE) {
+			/* XXX omap_iclk_deny_idle(c); */
+		} else {
+			/* XXX omap_iclk_allow_idle(c); */
+			clk_enable(c);
 		}
 	}
 
-	oh->_state = _HWMOD_STATE_INITIALIZED;
+	return;
+}
+
+/**
+ * _setup_reset - reset an IP block during the setup process
+ * @oh: struct omap_hwmod *
+ *
+ * Reset the IP block corresponding to the hwmod @oh during the setup
+ * process.  The IP block is first enabled so it can be successfully
+ * reset.  Returns 0 upon success or a negative error code upon
+ * failure.
+ */
+static int __init _setup_reset(struct omap_hwmod *oh)
+{
+	int r;
+
+	if (oh->_state != _HWMOD_STATE_INITIALIZED)
+		return -EINVAL;
 
 	/*
 	 * In the case of hwmod with hardreset that should not be
 	 * de-assert at boot time, we have to keep the module
 	 * initialized, because we cannot enable it properly with the
-	 * reset asserted. Exit without warning because that behavior is
-	 * expected.
+	 * reset asserted. Exit without warning because that behavior
+	 * is expected.
 	 */
 	if ((oh->flags & HWMOD_INIT_NO_RESET) && oh->rst_lines_cnt > 0)
 		return 0;
@@ -1871,7 +1884,53 @@ static int _setup(struct omap_hwmod *oh, void *data)
 	}
 
 	if (!(oh->flags & HWMOD_INIT_NO_RESET))
-		_reset(oh);
+		r = _reset(oh);
+
+	return r;
+}
+
+/**
+ * _setup_postsetup - transition to the appropriate state after _setup
+ * @oh: struct omap_hwmod *
+ *
+ * Place an IP block represented by @oh into a "post-setup" state --
+ * either IDLE, ENABLED, or DISABLED.  ("post-setup" simply means that
+ * this function is called at the end of _setup().)  The postsetup
+ * state for an IP block can be changed by calling
+ * omap_hwmod_enter_postsetup_state() early in the boot process,
+ * before one of the omap_hwmod_setup*() functions are called for the
+ * IP block.
+ *
+ * The IP block stays in this state until a PM runtime-based driver is
+ * loaded for that IP block.  A post-setup state of IDLE is
+ * appropriate for almost all IP blocks with runtime PM-enabled
+ * drivers, since those drivers are able to enable the IP block.  A
+ * post-setup state of ENABLED is appropriate for kernels with PM
+ * runtime disabled.  The DISABLED state is appropriate for unusual IP
+ * blocks such as the MPU WDTIMER on kernels without WDTIMER drivers
+ * included, since the WDTIMER starts running on reset and will reset
+ * the MPU if left active.
+ *
+ * This post-setup mechanism is deprecated.  Once all of the OMAP
+ * drivers have been converted to use PM runtime, and all of the IP
+ * block data and interconnect data is available to the hwmod code, it
+ * should be possible to replace this mechanism with a "lazy reset"
+ * arrangement.  In a "lazy reset" setup, each IP block is enabled
+ * when the driver first probes, then all remaining IP blocks without
+ * drivers are either shut down or enabled after the drivers have
+ * loaded.  However, this cannot take place until the above
+ * preconditions have been met, since otherwise the late reset code
+ * has no way of knowing which IP blocks are in use by drivers, and
+ * which ones are unused.
+ *
+ * No return value.
+ */
+static void __init _setup_postsetup(struct omap_hwmod *oh)
+{
+	u8 postsetup_state;
+
+	if (oh->rst_lines_cnt > 0)
+		return;
 
 	postsetup_state = oh->_postsetup_state;
 	if (postsetup_state == _HWMOD_STATE_UNKNOWN)
@@ -1895,6 +1954,35 @@ static int _setup(struct omap_hwmod *oh, void *data)
 		WARN(1, "hwmod: %s: unknown postsetup state %d! defaulting to enabled\n",
 		     oh->name, postsetup_state);
 
+	return;
+}
+
+/**
+ * _setup - prepare IP block hardware for use
+ * @oh: struct omap_hwmod *
+ * @n: (unused, pass NULL)
+ *
+ * Configure the IP block represented by @oh.  This may include
+ * enabling the IP block, resetting it, and placing it into a
+ * post-setup state, depending on the type of IP block and applicable
+ * flags.  IP blocks are reset to prevent any previous configuration
+ * by the bootloader or previous operating system from interfering
+ * with power management or other parts of the system.  The reset can
+ * be avoided; see omap_hwmod_no_setup_reset().  This is the second of
+ * two phases for hwmod initialization.  Code called here generally
+ * affects the IP block hardware, or system integration hardware
+ * associated with the IP block.  Returns 0.
+ */
+static int __init _setup(struct omap_hwmod *oh, void *data)
+{
+	if (oh->_state != _HWMOD_STATE_INITIALIZED)
+		return 0;
+
+	_setup_iclk_autoidle(oh);
+
+	if (!_setup_reset(oh))
+		_setup_postsetup(oh);
+
 	return 0;
 }
 
@@ -2700,10 +2788,10 @@ int omap_hwmod_for_each_by_class(const char *classname,
  * @state: state that _setup() should leave the hwmod in
  *
  * Sets the hwmod state that @oh will enter at the end of _setup()
- * (called by omap_hwmod_setup_*()).  Only valid to call between
- * calling omap_hwmod_register() and omap_hwmod_setup_*().  Returns
- * 0 upon success or -EINVAL if there is a problem with the arguments
- * or if the hwmod is in the wrong state.
+ * (called by omap_hwmod_setup_*()).  See also the documentation
+ * for _setup_postsetup(), above.  Returns 0 upon success or
+ * -EINVAL if there is a problem with the arguments or if the hwmod is
+ * in the wrong state.
  */
 int omap_hwmod_set_postsetup_state(struct omap_hwmod *oh, u8 state)
 {