diff --git a/src/comp/middle/typeck.rs b/src/comp/middle/typeck.rs
index 4cb3a219a880..a8450c30ee64 100644
--- a/src/comp/middle/typeck.rs
+++ b/src/comp/middle/typeck.rs
@@ -2092,7 +2092,7 @@ fn check_expr(&@fn_ctxt fcx, &@ast::expr expr) {
         }
         case (ast::expr_self_method(?ident)) {
             auto t = ty::mk_nil(fcx.ccx.tcx);
-            let ty::t this_obj_ty;
+            let ty::t this_obj_ty = ty::mk_nil(fcx.ccx.tcx);
             let option::t[obj_info] this_obj_info = get_obj_info(fcx.ccx);
             alt (this_obj_info) {
                 case (
@@ -2106,7 +2106,12 @@ fn check_expr(&@fn_ctxt fcx, &@ast::expr expr) {
                         ty::lookup_item_type(fcx.ccx.tcx,
                                              local_def(obj_info.this_obj))._1;
                 }
-                case (none) { fail; }
+                case (none) {
+                    // Shouldn't happen.
+                    fcx.ccx.tcx.sess.span_err(expr.span,
+                                              "self-call in non-object \
+                                               context");
+                }
             }
             // Grab this method's type out of the current object type.
 
diff --git a/src/test/compile-fail/self-call-non-obj.rs b/src/test/compile-fail/self-call-non-obj.rs
new file mode 100644
index 000000000000..816c8ad698f3
--- /dev/null
+++ b/src/test/compile-fail/self-call-non-obj.rs
@@ -0,0 +1,14 @@
+//xfail-stage0
+
+// error-pattern:self-call in non-object context
+
+// Fix for issue #707.
+fn main() {
+
+    fn foo() -> int {
+        ret 3();
+    }
+
+    self.foo();
+
+}