diff --git a/pystache/common.py b/pystache/common.py
index fb266dd8..44ab680f 100644
--- a/pystache/common.py
+++ b/pystache/common.py
@@ -14,6 +14,8 @@ def _get_string_types():
     #   and "basestring" to Python 3's "str".
     if version_info < (3, ):
          return basestring
+    else:
+         unicode = str
     # The latter evaluates to "bytes" in Python 3 -- even after conversion by 2to3.
     return (unicode, type(u"a".encode('utf-8')))
 
diff --git a/pystache/parser.py b/pystache/parser.py
index 9a4fba23..bd62c17b 100644
--- a/pystache/parser.py
+++ b/pystache/parser.py
@@ -6,13 +6,17 @@
 """
 
 import re
+import sys
+
+if sys.version_info.major >= 3:
+    unicode = str
 
 from pystache import defaults
 from pystache.parsed import ParsedTemplate
 
 
 END_OF_LINE_CHARACTERS = [u'\r', u'\n']
-NON_BLANK_RE = re.compile(ur'^(.)', re.M)
+NON_BLANK_RE = re.compile(u'^(.)', re.M)
 
 
 # TODO: add some unit tests for this.
@@ -146,8 +150,9 @@ def __repr__(self):
 
     def render(self, engine, context):
         template = engine.resolve_partial(self.key)
+
         # Indent before rendering.
-        template = re.sub(NON_BLANK_RE, self.indent + ur'\1', template)
+        template = re.sub(NON_BLANK_RE, self.indent + u'\\1', template)
 
         return engine.render(template, context)