diff --git a/target/ppc/Makefile.objs b/target/ppc/Makefile.objs
index e667e69..a8c7a30 100644
--- a/target/ppc/Makefile.objs
+++ b/target/ppc/Makefile.objs
@@ -2,7 +2,7 @@ obj-y += cpu-models.o
 obj-y += translate.o
 ifeq ($(CONFIG_SOFTMMU),y)
 obj-y += machine.o mmu_helper.o mmu-hash32.o monitor.o
-obj-$(TARGET_PPC64) += mmu-hash64.o arch_dump.o
+obj-$(TARGET_PPC64) += mmu-hash64.o arch_dump.o compat.o
 endif
 obj-$(CONFIG_KVM) += kvm.o
 obj-$(call lnot,$(CONFIG_KVM)) += kvm-stub.o
diff --git a/target/ppc/compat.c b/target/ppc/compat.c
new file mode 100644
index 0000000..f3fd9c6
--- /dev/null
+++ b/target/ppc/compat.c
@@ -0,0 +1,91 @@
+/*
+ *  PowerPC CPU initialization for qemu.
+ *
+ *  Copyright 2016, David Gibson, Red Hat Inc. <dgibson@redhat.com>
+ *
+ * This library is free software; you can redistribute it and/or
+ * modify it under the terms of the GNU Lesser General Public
+ * License as published by the Free Software Foundation; either
+ * version 2 of the License, or (at your option) any later version.
+ *
+ * This library is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the GNU
+ * Lesser General Public License for more details.
+ *
+ * You should have received a copy of the GNU Lesser General Public
+ * License along with this library; if not, see <http://www.gnu.org/licenses/>.
+ */
+
+#include "qemu/osdep.h"
+#include "sysemu/kvm.h"
+#include "kvm_ppc.h"
+#include "sysemu/cpus.h"
+#include "qemu/error-report.h"
+#include "qapi/error.h"
+#include "cpu-models.h"
+
+typedef struct {
+    uint32_t pvr;
+    uint64_t pcr;
+} CompatInfo;
+
+static const CompatInfo compat_table[] = {
+    { /* POWER6, ISA2.05 */
+        .pvr = CPU_POWERPC_LOGICAL_2_05,
+        .pcr = PCR_COMPAT_2_07 | PCR_COMPAT_2_06 | PCR_COMPAT_2_05
+               | PCR_TM_DIS | PCR_VSX_DIS,
+    },
+    { /* POWER7, ISA2.06 */
+        .pvr = CPU_POWERPC_LOGICAL_2_06,
+        .pcr = PCR_COMPAT_2_07 | PCR_COMPAT_2_06 | PCR_TM_DIS,
+    },
+    {
+        .pvr = CPU_POWERPC_LOGICAL_2_06_PLUS,
+        .pcr = PCR_COMPAT_2_07 | PCR_COMPAT_2_06 | PCR_TM_DIS,
+    },
+    { /* POWER8, ISA2.07 */
+        .pvr = CPU_POWERPC_LOGICAL_2_07,
+        .pcr = PCR_COMPAT_2_07,
+    },
+};
+
+static const CompatInfo *compat_by_pvr(uint32_t pvr)
+{
+    int i;
+
+    for (i = 0; i < ARRAY_SIZE(compat_table); i++) {
+        if (compat_table[i].pvr == pvr) {
+            return &compat_table[i];
+        }
+    }
+    return NULL;
+}
+
+void ppc_set_compat(PowerPCCPU *cpu, uint32_t compat_pvr, Error **errp)
+{
+    const CompatInfo *compat = compat_by_pvr(compat_pvr);
+    CPUPPCState *env = &cpu->env;
+    PowerPCCPUClass *pcc = POWERPC_CPU_GET_CLASS(cpu);
+    uint64_t pcr;
+
+    if (!compat_pvr) {
+        pcr = 0;
+    } else if (!compat) {
+        error_setg(errp, "Unknown compatibility PVR 0x%08"PRIx32, compat_pvr);
+        return;
+    } else {
+        pcr = compat->pcr;
+    }
+
+    cpu->compat_pvr = compat_pvr;
+    env->spr[SPR_PCR] = pcr & pcc->pcr_mask;
+
+    if (kvm_enabled()) {
+        int ret = kvmppc_set_compat(cpu, cpu->compat_pvr);
+        if (ret < 0) {
+            error_setg_errno(errp, -ret,
+                             "Unable to set CPU compatibility mode in KVM");
+        }
+    }
+}
diff --git a/target/ppc/cpu.h b/target/ppc/cpu.h
index b62f775..c859547 100644
--- a/target/ppc/cpu.h
+++ b/target/ppc/cpu.h
@@ -1252,7 +1252,6 @@ void ppc_store_msr (CPUPPCState *env, target_ulong value);
 void ppc_cpu_list (FILE *f, fprintf_function cpu_fprintf);
 int ppc_get_compat_smt_threads(PowerPCCPU *cpu);
 #if defined(TARGET_PPC64)
-void ppc_set_compat(PowerPCCPU *cpu, uint32_t compat_pvr, Error **errp);
 #endif
 
 /* Time-base and decrementer management */
@@ -1323,6 +1322,11 @@ static inline int cpu_mmu_index (CPUPPCState *env, bool ifetch)
     return ifetch ? env->immu_idx : env->dmmu_idx;
 }
 
+/* Compatibility modes */
+#if defined(TARGET_PPC64)
+void ppc_set_compat(PowerPCCPU *cpu, uint32_t compat_pvr, Error **errp);
+#endif /* defined(TARGET_PPC64) */
+
 #include "exec/cpu-all.h"
 
 /*****************************************************************************/
diff --git a/target/ppc/translate_init.c b/target/ppc/translate_init.c
index f6b08e7..a34a0eb 100644
--- a/target/ppc/translate_init.c
+++ b/target/ppc/translate_init.c
@@ -9972,47 +9972,6 @@ int ppc_get_compat_smt_threads(PowerPCCPU *cpu)
     return ret;
 }
 
-#ifdef TARGET_PPC64
-void ppc_set_compat(PowerPCCPU *cpu, uint32_t compat_pvr, Error **errp)
-{
-    int ret = 0;
-    CPUPPCState *env = &cpu->env;
-    PowerPCCPUClass *host_pcc;
-
-    cpu->compat_pvr = compat_pvr;
-
-    switch (compat_pvr) {
-    case CPU_POWERPC_LOGICAL_2_05:
-        env->spr[SPR_PCR] = PCR_TM_DIS | PCR_VSX_DIS | PCR_COMPAT_2_07 |
-                            PCR_COMPAT_2_06 | PCR_COMPAT_2_05;
-        break;
-    case CPU_POWERPC_LOGICAL_2_06:
-    case CPU_POWERPC_LOGICAL_2_06_PLUS:
-        env->spr[SPR_PCR] = PCR_TM_DIS | PCR_COMPAT_2_07 | PCR_COMPAT_2_06;
-        break;
-    case CPU_POWERPC_LOGICAL_2_07:
-        env->spr[SPR_PCR] = PCR_COMPAT_2_07;
-        break;
-    default:
-        env->spr[SPR_PCR] = 0;
-        break;
-    }
-
-    host_pcc = kvm_ppc_get_host_cpu_class();
-    if (host_pcc) {
-        env->spr[SPR_PCR] &= host_pcc->pcr_mask;
-    }
-
-    if (kvm_enabled()) {
-        ret = kvmppc_set_compat(cpu, cpu->compat_pvr);
-        if (ret < 0) {
-            error_setg_errno(errp, -ret,
-                             "Unable to set CPU compatibility mode in KVM");
-        }
-    }
-}
-#endif
-
 static gint ppc_cpu_compare_class_pvr(gconstpointer a, gconstpointer b)
 {
     ObjectClass *oc = (ObjectClass *)a;
