diff --git a/lib/std/Io.zig b/lib/std/Io.zig
index 47ba7c2072..c56ec68866 100644
--- a/lib/std/Io.zig
+++ b/lib/std/Io.zig
@@ -1031,6 +1031,9 @@ pub const Group = struct {
     /// Once this function is called, there are resources associated with the
     /// group. To release those resources, `Group.await` or `Group.cancel` must
     /// eventually be called.
+    ///
+    /// If `error.Canceled` is returned from any operation this task performs,
+    /// it is asserted that `function` returns `error.Canceled`.
     pub fn async(g: *Group, io: Io, function: anytype, args: std.meta.ArgsTuple(@TypeOf(function))) void {
         const Args = @TypeOf(args);
         const TypeErased = struct {
@@ -1050,6 +1053,9 @@ pub const Group = struct {
     /// Once this function is called, there are resources associated with the
     /// group. To release those resources, `Group.await` or `Group.cancel` must
     /// eventually be called.
+    ///
+    /// If `error.Canceled` is returned from any operation this task performs,
+    /// it is asserted that `function` returns `error.Canceled`.
     pub fn concurrent(g: *Group, io: Io, function: anytype, args: std.meta.ArgsTuple(@TypeOf(function))) ConcurrentError!void {
         const Args = @TypeOf(args);
         const TypeErased = struct {
diff --git a/lib/std/compress/flate/Compress.zig b/lib/std/compress/flate/Compress.zig
index 41b7d8bf04..0a85dd9d0a 100644
--- a/lib/std/compress/flate/Compress.zig
+++ b/lib/std/compress/flate/Compress.zig
@@ -267,7 +267,7 @@ pub const Options = struct {
     pub const best = level_9;
 };
 
-/// It is asserted `buffer` is least `flate.max_history_len` bytes.
+/// It is asserted `buffer` is least `flate.max_window_len` bytes.
 /// It is asserted `output` has a capacity of at least 8 bytes.
 pub fn init(
     output: *Writer,
diff --git a/src/Package/Fetch.zig b/src/Package/Fetch.zig
index a9cc86b398..e9e340c099 100644
--- a/src/Package/Fetch.zig
+++ b/src/Package/Fetch.zig
@@ -1,28 +1,34 @@
 //! Represents one independent job whose responsibility is to:
 //!
-//! 1. Check the global zig package cache to see if the hash already exists.
+//! 1. Check the local zig package directory to see if the hash already exists.
 //!    If so, load, parse, and validate the build.zig.zon file therein, and
-//!    goto step 8. Likewise if the location is a relative path, treat this
+//!    goto step 9. Likewise if the location is a relative path, treat this
 //!    the same as a cache hit. Otherwise, proceed.
-//! 2. Fetch and unpack a URL into a temporary directory.
-//! 3. Load, parse, and validate the build.zig.zon file therein. It is allowed
+//! 2. Check the global package cache for a compressed tarball matching the
+//!    hash. If it is found, unpack the contents into a temporary directory inside
+//!    project local zig cache. Rename this directory into the local zig package
+//!    directory and goto step 9, skipping step 10.
+//! 3. Fetch and unpack a URL into a temporary directory.
+//! 4. Load, parse, and validate the build.zig.zon file therein. It is allowed
 //!    for the file to be missing, in which case this fetched package is considered
 //!    to be a "naked" package.
-//! 4. Apply inclusion rules of the build.zig.zon to the temporary directory by
+//! 5. Apply inclusion rules of the build.zig.zon to the temporary directory by
 //!    deleting excluded files. If any files had errors for files that were
 //!    ultimately excluded, those errors should be ignored, such as failure to
 //!    create symlinks that weren't supposed to be included anyway.
-//! 5. Compute the package hash based on the remaining files in the temporary
+//! 6. Compute the package hash based on the remaining files in the temporary
 //!    directory.
-//! 6. Rename the temporary directory into the global zig package cache
-//!    directory. If the hash already exists, delete the temporary directory and
-//!    leave the zig package cache directory untouched as it may be in use by the
-//!    system. This is done even if the hash is invalid, in case the package with
-//!    the different hash is used in the future.
-//! 7. Validate the computed hash against the expected hash. If invalid,
+//! 7. Rename the temporary directory into the local zig package directory. If
+//!    the hash already exists, delete the temporary directory and leave the zig
+//!    package directory untouched as it may be in use. This is done even if
+//!    the hash is invalid, in case the package with the different hash is used
+//!    in the future.
+//! 8. Validate the computed hash against the expected hash. If invalid,
 //!    this job is done.
-//! 8. Spawn a new fetch job for each dependency in the manifest file. Use
+//! 9. Spawn a new fetch job for each dependency in the manifest file. Use
 //!    a mutex and a hash map so that redundant jobs do not get queued up.
+//! 10.Compress the package directory and store it into the global package
+//!    cache.
 //!
 //! All of this must be done with only referring to the state inside this struct
 //! because this work will be done in a dedicated thread.
@@ -110,6 +116,7 @@ pub const JobQueue = struct {
     all_fetches: std.ArrayList(*Fetch) = .empty,
 
     http_client: *std.http.Client,
+    /// This tracks `Fetch` tasks as well as recompression tasks.
     group: Io.Group = .init,
     global_cache: Cache.Directory,
     local_cache: Cache.Path,
@@ -293,8 +300,109 @@ pub const JobQueue = struct {
             \\
         );
     }
+
+    fn recompress(jq: *JobQueue, package_hash: Package.Hash) Io.Cancelable!void {
+        var dest_sub_path_buffer: ["p/".len + Package.Hash.max_len + ".tar.gz".len]u8 = undefined;
+        const dest_path: Cache.Path = .{
+            .root_dir = jq.global_cache,
+            .sub_path = std.fmt.bufPrint(&dest_sub_path_buffer, "p/{s}.tar.gz", .{
+                package_hash.toSlice(),
+            }) catch unreachable,
+        };
+
+        const gpa = jq.http_client.allocator;
+
+        var arena_instance = std.heap.ArenaAllocator.init(gpa);
+        defer arena_instance.deinit();
+        const arena = arena_instance.allocator();
+
+        recompressFallible(jq, arena, dest_path, package_hash.toSlice()) catch |err| switch (err) {
+            error.Canceled => |e| return e,
+            error.ReadFailed => comptime unreachable,
+            error.WriteFailed => comptime unreachable,
+            else => |e| std.log.warn("failed caching recompressed tarball to {f}: {t}", .{ dest_path, e }),
+        };
+    }
+
+    fn recompressFallible(jq: *JobQueue, arena: Allocator, dest_path: Cache.Path, package_hash: []const u8) !void {
+        const gpa = jq.http_client.allocator;
+        const io = jq.io;
+
+        // We have to walk the file system up front in order to sort the file
+        // list for determinism purposes. The hash of the recompressed file is
+        // not critical because the true hash is based on the content alone.
+        // However, if we want Zig users to be able to share cached package
+        // data with each other via peer-to-peer protocols, we benefit greatly
+        // from the data being identical on everyone's computers.
+        var scanned_files: std.ArrayList([]const u8) = .empty;
+        defer scanned_files.deinit(gpa);
+
+        var pkg_dir = try jq.root_pkg_path.openDir(io, package_hash, .{ .iterate = true });
+        defer pkg_dir.close(io);
+
+        {
+            var walker = try pkg_dir.walk(gpa);
+            defer walker.deinit();
+
+            while (try walker.next(io)) |entry| {
+                switch (entry.kind) {
+                    .directory => continue,
+                    .file, .sym_link => {},
+                    else => {
+                        return error.IllegalFileType;
+                    },
+                }
+                const entry_path = try arena.dupe(u8, entry.path);
+                try scanned_files.append(gpa, entry_path);
+            }
+
+            std.mem.sortUnstable([]const u8, scanned_files.items, {}, stringCmp);
+        }
+
+        var atomic_file = try dest_path.root_dir.handle.createFileAtomic(io, dest_path.sub_path, .{
+            .make_path = true,
+            .replace = true,
+        });
+        defer atomic_file.deinit(io);
+
+        var file_write_buffer: [4096]u8 = undefined;
+        var file_writer = atomic_file.file.writer(io, &file_write_buffer);
+
+        var compress_buffer: [std.compress.flate.max_window_len]u8 = undefined;
+        var compress = std.compress.flate.Compress.init(&file_writer.interface, &compress_buffer, .gzip, .level_9) catch |err| switch (err) {
+            error.WriteFailed => return file_writer.err.?,
+        };
+
+        var archiver: std.tar.Writer = .{ .underlying_writer = &compress.writer };
+        archiver.prefix = package_hash;
+
+        var file_read_buffer: [4096]u8 = undefined;
+
+        for (scanned_files.items) |entry_path| {
+            var file = try pkg_dir.openFile(io, entry_path, .{});
+            defer file.close(io);
+            var file_reader: Io.File.Reader = .init(file, io, &file_read_buffer);
+            archiver.writeFile(entry_path, &file_reader, 0) catch |err| switch (err) {
+                error.ReadFailed => return file_reader.err.?,
+                error.WriteFailed => return file_writer.err.?,
+                else => |e| return e,
+            };
+        }
+
+        // intentionally omitting the pointless trailer
+        //try archiver.finish();
+        compress.writer.flush() catch |err| switch (err) {
+            error.WriteFailed => return file_writer.err.?,
+        };
+        try file_writer.flush();
+        try atomic_file.replace(io);
+    }
 };
 
+fn stringCmp(_: void, lhs: []const u8, rhs: []const u8) bool {
+    return std.mem.lessThan(u8, lhs, rhs);
+}
+
 pub const Location = union(enum) {
     remote: Remote,
     /// A directory found inside the parent package.
@@ -477,8 +585,11 @@ fn runResource(
     remote_hash: ?Package.Hash,
 ) RunError!void {
     const job_queue = f.job_queue;
+    assert(!job_queue.read_only);
+
     const io = job_queue.io;
     defer resource.deinit(io);
+
     const arena = f.arena.allocator();
     const eb = &f.error_bundle;
     const s = fs.path.sep_str;
@@ -556,6 +667,11 @@ fn runResource(
         ) });
         return error.FetchFailed;
     };
+
+    // Spin off a task to recompress the tarball, with filtered files deleted, into
+    // the global cache.
+    job_queue.group.async(io, JobQueue.recompress, .{ job_queue, computed_package_hash });
+
     // Remove temporary directory root if not already renamed to global cache.
     if (!package_sub_path.eql(tmp_directory_path)) {
         tmp_directory_path.root_dir.handle.deleteDir(io, tmp_directory_path.sub_path) catch |err| switch (err) {