diff --git a/j2cli/cli.py b/j2cli/cli.py
index fae229a..727ec08 100644
--- a/j2cli/cli.py
+++ b/j2cli/cli.py
@@ -44,10 +44,12 @@ class Jinja2TemplateRenderer(object):
         'jinja2.ext.loopcontrols',
     )
 
-    def __init__(self, cwd, allow_undefined, j2_env_params):
+    def __init__(self, cwd, allow_undefined, no_compact=False, j2_env_params={}):
         # Custom env params
         j2_env_params.setdefault('keep_trailing_newline', True)
         j2_env_params.setdefault('undefined', jinja2.Undefined if allow_undefined else jinja2.StrictUndefined)
+        j2_env_params.setdefault('trim_blocks', not no_compact)
+        j2_env_params.setdefault('lstrip_blocks', not no_compact)
         j2_env_params.setdefault('extensions', self.ENABLED_EXTENSIONS)
         j2_env_params.setdefault('loader', FilePathLoader(cwd))
 
@@ -118,7 +120,10 @@ def render_command(cwd, environ, stdin, argv):
                         help='Load custom Jinja2 tests from a Python file.')
     parser.add_argument('--customize', default=None, metavar='python-file.py', dest='customize',
                         help='A Python file that implements hooks to fine-tune the j2cli behavior')
-    parser.add_argument('--undefined', action='store_true', dest='undefined', help='Allow undefined variables to be used in templates (no error will be raised)')
+    parser.add_argument('--no-compact', action='store_true', dest='no_compact',
+                        help='Do not compact space around Jinja2 blocks.')
+    parser.add_argument('-U', '--undefined', action='store_true', dest='undefined',
+                        help='Allow undefined variables to be used in templates (no error will be raised.)')
     parser.add_argument('-o', metavar='outfile', dest='output_file', help="Output to a file instead of stdout")
     parser.add_argument('template', help='Template file to process')
     parser.add_argument('data', nargs='?', default=None, help='Input data file path; "-" to use stdin')
@@ -183,7 +188,7 @@ def render_command(cwd, environ, stdin, argv):
     context = customize.alter_context(context)
 
     # Renderer
-    renderer = Jinja2TemplateRenderer(cwd, args.undefined, j2_env_params=customize.j2_environment_params())
+    renderer = Jinja2TemplateRenderer(cwd, args.undefined, args.no_compact, j2_env_params=customize.j2_environment_params())
     customize.j2_environment(renderer._env)
 
     # Filters, Tests
diff --git a/j2cli/context.py b/j2cli/context.py
index f8035d4..547727e 100644
--- a/j2cli/context.py
+++ b/j2cli/context.py
@@ -1,11 +1,6 @@
+import six
 import sys
 
-# Patch basestring in for python 3 compat
-try:
-    basestring
-except NameError:
-    basestring = str
-
 #region Parsers
 
 def _parse_ini(data_string):
@@ -120,7 +115,7 @@ def _parse_env(data_string):
         $ j2 config.j2 - < data.env
     """
     # Parse
-    if isinstance(data_string, basestring):
+    if isinstance(data_string, six.string_types):
         data = filter(
             lambda l: len(l) == 2 ,
             (
diff --git a/requirements-dev.txt b/requirements-dev.txt
index 2ac3dff..f837c52 100644
--- a/requirements-dev.txt
+++ b/requirements-dev.txt
@@ -1,3 +1,4 @@
 wheel
 nose
 exdoc
+six
diff --git a/setup.py b/setup.py
index 71410d6..5733ee5 100755
--- a/setup.py
+++ b/setup.py
@@ -47,6 +47,7 @@
 
     install_requires=[
         'jinja2 >= 2.7.2',
+        'six >= 1.10',
     ],
     extras_require={
         'yaml': [pyyaml_version,]