diff --git a/requirements/common.txt b/requirements/common.txt
index 8118931150..0551b91372 100644
--- a/requirements/common.txt
+++ b/requirements/common.txt
@@ -139,3 +139,6 @@ uritemplate==0.6
 zope.interface==4.1.2
 
 -r emailmirror.txt
+
+# Django extension for static asset pipeline
+django-pipeline==1.6.8
diff --git a/requirements/py2_common.txt b/requirements/py2_common.txt
index 0c92bc9d22..ece97f9e3e 100644
--- a/requirements/py2_common.txt
+++ b/requirements/py2_common.txt
@@ -2,9 +2,6 @@
 
 enum34==1.0.4
 
-# Django extension for static asset pipeline
-django-pipeline==1.2.2
-
 # Used for Hesiod lookups, etc.
 pydns==2.3.6
 
diff --git a/requirements/py3_common.txt b/requirements/py3_common.txt
index 1a10e2ce94..d456fccf42 100644
--- a/requirements/py3_common.txt
+++ b/requirements/py3_common.txt
@@ -3,9 +3,6 @@
 # Used for Hesiod lookups, etc.
 py3dns==3.1.0
 
-# Django extension for static asset pipeline
-django-pipeline==1.6.8
-
 # Needed for LDAP integration
 pyldap==2.4.25.1
 
diff --git a/templates/analytics/activity.html b/templates/analytics/activity.html
index fcdfab3584..60a3a564e1 100644
--- a/templates/analytics/activity.html
+++ b/templates/analytics/activity.html
@@ -10,7 +10,7 @@
 {% block customhead %}
 {{ super() }}
 {{ minified_js('activity')|safe }}
-{{ compressed_css('activity')|safe }}
+{% stylesheet 'activity' %}
 {% endblock %}
 
 {% block content %}
diff --git a/templates/zerver/base.html b/templates/zerver/base.html
index 7a7a765077..49e96d6178 100644
--- a/templates/zerver/base.html
+++ b/templates/zerver/base.html
@@ -23,7 +23,7 @@
     {% endif %}
 
     {# We need to import jQuery before Bootstrap #}
-    {{ compressed_css('common')|safe }}
+    {% stylesheet 'common' %}
     {% block page_params %}
     {# blueslip needs page_params.debug_mode.  Set it to false by default. #}
     <script type="text/javascript">
diff --git a/templates/zerver/index.html b/templates/zerver/index.html
index 7c3d939ef9..1b3994476c 100644
--- a/templates/zerver/index.html
+++ b/templates/zerver/index.html
@@ -31,9 +31,9 @@ var page_params = {{ page_params }};
 
 {% if nofontface %}
 {# We can't use @font-face on qtwebkit, so use differently minified CSS #}
-{{ compressed_css('app-fontcompat')|safe }}
+{% stylesheet 'app-fontcompat' %}
 {% else %}
-{{ compressed_css('app')|safe }}
+{% stylesheet 'app' %}
 {% endif %}
 {{ minified_js('app')|safe }}
 
diff --git a/templates/zerver/portico.html b/templates/zerver/portico.html
index 60c3129f06..2cdcf957bc 100644
--- a/templates/zerver/portico.html
+++ b/templates/zerver/portico.html
@@ -7,7 +7,7 @@
 #}
 
     {% block customhead %}
-    {{ compressed_css('portico')|safe }}
+    {% stylesheet 'portico' %}
     {% endblock %}
 
 {% block content %}
diff --git a/zerver/views/__init__.py b/zerver/views/__init__.py
index 0ed68dafaf..ec153d4cb8 100644
--- a/zerver/views/__init__.py
+++ b/zerver/views/__init__.py
@@ -1026,7 +1026,7 @@ def home(request):
                                    'avatar_url': avatar_url(user_profile),
                                    'show_debug':
                                        settings.DEBUG and ('show_debug' in request.GET),
-                                   'pipeline': settings.PIPELINE,
+                                   'pipeline': settings.PIPELINE_ENABLED,
                                    'show_invites': show_invites,
                                    'is_admin': user_profile.is_realm_admin,
                                    'show_webathena': user_profile.realm.domain == "mit.edu",
diff --git a/zproject/dev_urls.py b/zproject/dev_urls.py
index f59c80fb9b..c12a2daee1 100644
--- a/zproject/dev_urls.py
+++ b/zproject/dev_urls.py
@@ -4,7 +4,7 @@ import os.path
 
 # These URLs are available only in the development environment
 
-use_prod_static = getattr(settings, 'PIPELINE', False)
+use_prod_static = getattr(settings, 'PIPELINE_ENABLED', False)
 static_root = os.path.join(settings.DEPLOY_ROOT, 'prod-static/serve' if use_prod_static else 'static')
 
 urls = [url(r'^static/(?P<path>.*)$', 'django.views.static.serve', {'document_root': static_root})]
diff --git a/zproject/jinja2/__init__.py b/zproject/jinja2/__init__.py
index 4b5fcbcbfb..0603b76fe3 100644
--- a/zproject/jinja2/__init__.py
+++ b/zproject/jinja2/__init__.py
@@ -8,7 +8,7 @@ from django.utils import translation
 from django.http import HttpResponse
 from jinja2 import Environment
 
-from .compressors import compressed_css, minified_js
+from .compressors import minified_js
 from zerver.templatetags.app_filters import display_list
 
 
@@ -22,7 +22,6 @@ def environment(**options):
     env.globals.update({
         'static': staticfiles_storage.url,
         'url': reverse,
-        'compressed_css': compressed_css,
         'minified_js': minified_js,
     })
 
diff --git a/zproject/jinja2/compressors.py b/zproject/jinja2/compressors.py
index c0fc487adb..d6a36466a8 100644
--- a/zproject/jinja2/compressors.py
+++ b/zproject/jinja2/compressors.py
@@ -5,15 +5,10 @@ from __future__ import absolute_import  # Python 2 only
 
 from django.conf import settings
 from django.template import TemplateSyntaxError
-from pipeline.templatetags.compressed import CompressedCSSNode
 
 from zerver.templatetags.minified_js import MinifiedJSNode
 
 
-def compressed_css(package_name):
-    return CompressedCSSNode(package_name).render({package_name: package_name})
-
-
 def minified_js(sourcefile):
     if sourcefile not in settings.JS_SPECS:
         raise TemplateSyntaxError(
diff --git a/zproject/settings.py b/zproject/settings.py
index 9bc6ac8645..0ce2f6e37e 100644
--- a/zproject/settings.py
+++ b/zproject/settings.py
@@ -236,13 +236,14 @@ TEMPLATES = [
         'DIRS': [
              os.path.join(DEPLOY_ROOT, 'templates'),
         ],
-        'APP_DIRS': False,
+        'APP_DIRS': True,
         'OPTIONS': {
             'debug': DEBUG,
             'environment': 'zproject.jinja2.environment',
             'extensions': [
                 'jinja2.ext.i18n',
                 'jinja2.ext.autoescape',
+                'pipeline.jinja2.PipelineExtension',
             ],
             'context_processors': [
                 'zerver.context_processors.add_settings',
@@ -531,14 +532,15 @@ STATIC_URL = '/static/'
 
 # This is the default behavior from Pipeline, but we set it
 # here so that urls.py can read it.
-PIPELINE = not DEBUG
+PIPELINE_ENABLED = not DEBUG
 
 if DEBUG:
     STATICFILES_STORAGE = 'pipeline.storage.PipelineStorage'
     STATICFILES_FINDERS = (
         'django.contrib.staticfiles.finders.AppDirectoriesFinder',
+        'pipeline.finders.PipelineFinder',
     )
-    if PIPELINE:
+    if PIPELINE_ENABLED:
         STATIC_ROOT = os.path.abspath('prod-static/serve')
     else:
         STATIC_ROOT = os.path.abspath('static/')
@@ -558,61 +560,67 @@ FILE_UPLOAD_MAX_MEMORY_SIZE = 0
 STATICFILES_DIRS = ['static/']
 STATIC_HEADER_FILE = 'zerver/static_header.txt'
 
-# To use minified files in dev, set PIPELINE = True.  For the full
+# To use minified files in dev, set PIPELINE_ENABLED = True.  For the full
 # cache-busting behavior, you must also set DEBUG = False.
 #
 # You will need to run update-prod-static after changing
 # static files.
 
-PIPELINE_CSS = {
-    'activity': {
-        'source_filenames': ('styles/activity.css',),
-        'output_filename':  'min/activity.css'
-    },
-    'portico': {
-        'source_filenames': (
-            'third/zocial/zocial.css',
-            'styles/portico.css',
-            'styles/pygments.css',
-            'styles/thirdparty-fonts.css',
-            'styles/fonts.css',
-        ),
-        'output_filename': 'min/portico.css'
-    },
-    # Two versions of the app CSS exist because of QTBUG-3467
-    'app-fontcompat': {
-        'source_filenames': (
-            'third/bootstrap-notify/css/bootstrap-notify.css',
-            'third/spectrum/spectrum.css',
-            'styles/zulip.css',
-            'styles/settings.css',
-            'styles/pygments.css',
-            'styles/thirdparty-fonts.css',
-            # We don't want fonts.css on QtWebKit, so its omitted here
-        ),
-        'output_filename': 'min/app-fontcompat.css'
-    },
-    'app': {
-        'source_filenames': (
-            'third/bootstrap-notify/css/bootstrap-notify.css',
-            'third/spectrum/spectrum.css',
-            'third/jquery-perfect-scrollbar/css/perfect-scrollbar.css',
-            'styles/zulip.css',
-            'styles/settings.css',
-            'styles/pygments.css',
-            'styles/thirdparty-fonts.css',
-            'styles/fonts.css',
-        ),
-        'output_filename': 'min/app.css'
-    },
-    'common': {
-        'source_filenames': (
-            'third/bootstrap/css/bootstrap.css',
-            'third/bootstrap/css/bootstrap-btn.css',
-            'third/bootstrap/css/bootstrap-responsive.css',
-        ),
-        'output_filename': 'min/common.css'
+PIPELINE = {
+    'PIPELINE_ENABLED': PIPELINE_ENABLED,
+    'CSS_COMPRESSOR': 'pipeline.compressors.yui.YUICompressor',
+    'YUI_BINARY': '/usr/bin/env yui-compressor',
+    'STYLESHEETS': {
+        'activity': {
+            'source_filenames': ('styles/activity.css',),
+            'output_filename':  'min/activity.css'
+        },
+        'portico': {
+            'source_filenames': (
+                'third/zocial/zocial.css',
+                'styles/portico.css',
+                'styles/pygments.css',
+                'styles/thirdparty-fonts.css',
+                'styles/fonts.css',
+            ),
+            'output_filename': 'min/portico.css'
+        },
+        # Two versions of the app CSS exist because of QTBUG-3467
+        'app-fontcompat': {
+            'source_filenames': (
+                'third/bootstrap-notify/css/bootstrap-notify.css',
+                'third/spectrum/spectrum.css',
+                'styles/zulip.css',
+                'styles/settings.css',
+                'styles/pygments.css',
+                'styles/thirdparty-fonts.css',
+                # We don't want fonts.css on QtWebKit, so its omitted here
+            ),
+            'output_filename': 'min/app-fontcompat.css'
+        },
+        'app': {
+            'source_filenames': (
+                'third/bootstrap-notify/css/bootstrap-notify.css',
+                'third/spectrum/spectrum.css',
+                'third/jquery-perfect-scrollbar/css/perfect-scrollbar.css',
+                'styles/zulip.css',
+                'styles/settings.css',
+                'styles/pygments.css',
+                'styles/thirdparty-fonts.css',
+                'styles/fonts.css',
+            ),
+            'output_filename': 'min/app.css'
+        },
+        'common': {
+            'source_filenames': (
+                'third/bootstrap/css/bootstrap.css',
+                'third/bootstrap/css/bootstrap-btn.css',
+                'third/bootstrap/css/bootstrap-responsive.css',
+            ),
+            'output_filename': 'min/common.css'
+        },
     },
+    'JAVASCRIPT': {},
 }
 
 JS_SPECS = {
@@ -738,7 +746,7 @@ JS_SPECS = {
             'js/referral.js',
             'js/custom_markdown.js',
             'js/bot_data.js',
-            # JS bundled by webpack is also included here if PIPELINE setting is true
+            # JS bundled by webpack is also included here if PIPELINE_ENABLED setting is true
         ],
         'output_filename': 'min/app.js'
     },
@@ -755,18 +763,12 @@ JS_SPECS = {
     },
 }
 
-if PIPELINE:
+if PIPELINE_ENABLED:
     # This is also done in test_settings.py, see comment there..
     JS_SPECS['app']['source_filenames'].append('js/bundle.js')
 
 app_srcs = JS_SPECS['app']['source_filenames']
 
-PIPELINE_JS = {}  # Now handled in tools/minify-js
-PIPELINE_JS_COMPRESSOR = None
-
-PIPELINE_CSS_COMPRESSOR = 'pipeline.compressors.yui.YUICompressor'
-PIPELINE_YUI_BINARY = '/usr/bin/env yui-compressor'
-
 ########################################################################
 # LOGGING SETTINGS
 ########################################################################
diff --git a/zproject/test_settings.py b/zproject/test_settings.py
index 3a0e6db6c7..6619f14655 100644
--- a/zproject/test_settings.py
+++ b/zproject/test_settings.py
@@ -12,7 +12,7 @@ DATABASES["default"] = {"NAME": "zulip_test",
                         "OPTIONS": {"connection_factory": TimeTrackingConnection },}
 
 # In theory this should just go in zproject/settings.py inside the `if
-# PIPELINE` statement, but because zproject/settings.py is processed
+# PIPELINE_ENABLED` statement, but because zproject/settings.py is processed
 # first, we have to add it here as a hack.
 JS_SPECS['app']['source_filenames'].append('js/bundle.js')