Index: auctex/tex.el
diff -u auctex/tex.el:5.509 auctex/tex.el:5.510
--- auctex/tex.el:5.509 Fri May  6 09:09:34 2005
+++ auctex/tex.el       Fri May  6 15:48:42 2005
@@ -1363,13 +1363,13 @@
        (insert "% " TeX-esc "fi\n"))))))
 
 (defun TeX-local-master-p ()
-  "Return t if there is a `TeX-master' entry in the local variables section.
+  "Return non-nil if there is a `TeX-master' entry in local variables spec.
 Return nil otherwise."
   (save-excursion
+    ;; XXX: Checking -*- line necessary as well?
     (goto-char (point-max))
-    (if (re-search-backward "^%+ *TeX-master:" nil t)
-       t
-      nil)))
+    (search-backward "\n\^L" (max (- (point-max) 3000) (point-min)) 'move)
+    (re-search-forward "^%+ *TeX-master:" nil t)))
 
 ;;; Style Paths
 


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