diff --git a/conn.go b/conn.go
index 7b70e045..bec30527 100644
--- a/conn.go
+++ b/conn.go
@@ -879,55 +879,6 @@ func (c *Conn) Exec(sql string, arguments ...interface{}) (commandTag CommandTag
 	}
 }
 
-// Transaction runs f in a transaction. f should return true if the transaction
-// should be committed or false if it should be rolled back. Return value committed
-// is if the transaction was committed or not. committed should be checked separately
-// from err as an explicit rollback is not an error. Transaction will use the default
-// isolation level for the current connection. To use a specific isolation level see
-// TransactionIso
-func (c *Conn) Transaction(f func() bool) (committed bool, err error) {
-	return c.transaction("", f)
-}
-
-// TransactionIso is the same as Transaction except it takes an isoLevel argument that
-// it uses as the transaction isolation level.
-//
-// Valid isolation levels (and their constants) are:
-//   serializable (pgx.Serializable)
-//   repeatable read (pgx.RepeatableRead)
-//   read committed (pgx.ReadCommitted)
-//   read uncommitted (pgx.ReadUncommitted)
-func (c *Conn) TransactionIso(isoLevel string, f func() bool) (committed bool, err error) {
-	return c.transaction(isoLevel, f)
-}
-
-func (c *Conn) transaction(isoLevel string, f func() bool) (committed bool, err error) {
-	var beginSql string
-	if isoLevel == "" {
-		beginSql = "begin"
-	} else {
-		beginSql = fmt.Sprintf("begin isolation level %s", isoLevel)
-	}
-
-	if _, err = c.Exec(beginSql); err != nil {
-		return
-	}
-	defer func() {
-		if committed && c.TxStatus == 'T' {
-			_, err = c.Exec("commit")
-			if err != nil {
-				committed = false
-			}
-		} else {
-			_, err = c.Exec("rollback")
-			committed = false
-		}
-	}()
-
-	committed = f()
-	return
-}
-
 // Processes messages that are not exclusive to one context such as
 // authentication or query response. The response to these messages
 // is the same regardless of when they occur.
diff --git a/conn_pool.go b/conn_pool.go
index b24a1b70..c13197d0 100644
--- a/conn_pool.go
+++ b/conn_pool.go
@@ -198,6 +198,41 @@ func (p *ConnPool) QueryRow(sql string, args ...interface{}) *Row {
 	return (*Row)(rows)
 }
 
+// Begin acquires a connection and begins a transaction on it. When the
+// transaction is closed the connection will be automatically released.
+func (p *ConnPool) Begin() (*Tx, error) {
+	c, err := p.Acquire()
+	if err != nil {
+		return nil, err
+	}
+
+	tx, err := c.Begin()
+	if err != nil {
+		return nil, err
+	}
+
+	tx.pool = p
+	return tx, nil
+}
+
+// BeginIso acquires a connection and begins a transaction in isolation mode iso
+// on it. When the transaction is closed the connection will be automatically
+// released.
+func (p *ConnPool) BeginIso(iso string) (*Tx, error) {
+	c, err := p.Acquire()
+	if err != nil {
+		return nil, err
+	}
+
+	tx, err := c.BeginIso(iso)
+	if err != nil {
+		return nil, err
+	}
+
+	tx.pool = p
+	return tx, nil
+}
+
 // Transaction acquires a connection, delegates the call to that connection,
 // and releases the connection. The call signature differs slightly from the
 // underlying Transaction in that the callback function accepts a *Conn
diff --git a/conn_pool_test.go b/conn_pool_test.go
index 0954798e..cfc8b451 100644
--- a/conn_pool_test.go
+++ b/conn_pool_test.go
@@ -303,6 +303,33 @@ func TestPoolReleaseDiscardsDeadConnections(t *testing.T) {
 	}
 }
 
+func TestConnPoolTransaction(t *testing.T) {
+	t.Parallel()
+
+	pool := createConnPool(t, 2)
+	defer pool.Close()
+
+	tx, err := pool.Begin()
+	if err != nil {
+		t.Fatalf("pool.Begin failed: %v", err)
+	}
+
+	var n int32
+	err := pool.QueryRow("select 40+$1", 2).Scan(&n)
+	if err != nil {
+		t.Fatalf("pool.QueryRow Scan failed: %v", err)
+	}
+
+	if n != 42 {
+		t.Errorf("Expected 42, got %d", n)
+	}
+
+	stats := pool.Stat()
+	if stats.CurrentConnections != 1 || stats.AvailableConnections != 1 {
+		t.Fatalf("Unexpected connection pool stats: %v", stats)
+	}
+}
+
 func TestPoolTransaction(t *testing.T) {
 	t.Parallel()
 
diff --git a/conn_test.go b/conn_test.go
index e68f91c9..04e418e7 100644
--- a/conn_test.go
+++ b/conn_test.go
@@ -712,151 +712,6 @@ func TestPrepareFailure(t *testing.T) {
 	ensureConnValid(t, conn)
 }
 
-func TestTransaction(t *testing.T) {
-	t.Parallel()
-
-	conn := mustConnect(t, *defaultConnConfig)
-	defer closeConn(t, conn)
-
-	createSql := `
-		create temporary table foo(
-			id integer,
-			unique (id) initially deferred
-		);
-	`
-
-	if _, err := conn.Exec(createSql); err != nil {
-		t.Fatalf("Failed to create table: %v", err)
-	}
-
-	// Transaction happy path -- it executes function and commits
-	committed, err := conn.Transaction(func() bool {
-		mustExec(t, conn, "insert into foo(id) values (1)")
-		return true
-	})
-	if err != nil {
-		t.Fatalf("Transaction unexpectedly failed: %v", err)
-	}
-	if !committed {
-		t.Fatal("Transaction was not committed")
-	}
-
-	var n int64
-	err = conn.QueryRow("select count(*) from foo").Scan(&n)
-	if err != nil {
-		t.Fatalf("QueryRow Scan failed: %v", err)
-	}
-	if n != 1 {
-		t.Fatalf("Did not receive correct number of rows: %v", n)
-	}
-
-	mustExec(t, conn, "truncate foo")
-
-	// It rolls back when passed function returns false
-	committed, err = conn.Transaction(func() bool {
-		mustExec(t, conn, "insert into foo(id) values (1)")
-		return false
-	})
-	if err != nil {
-		t.Fatalf("Transaction unexpectedly failed: %v", err)
-	}
-	if committed {
-		t.Fatal("Transaction should not have been committed")
-	}
-	err = conn.QueryRow("select count(*) from foo").Scan(&n)
-	if err != nil {
-		t.Fatalf("QueryRow Scan failed: %v", err)
-	}
-	if n != 0 {
-		t.Fatalf("Did not receive correct number of rows: %v", n)
-	}
-
-	// it rolls back changes when connection is in error state
-	committed, err = conn.Transaction(func() bool {
-		mustExec(t, conn, "insert into foo(id) values (1)")
-		if _, err := conn.Exec("invalid"); err == nil {
-			t.Fatal("Exec was supposed to error but didn't")
-		}
-		return true
-	})
-	if err != nil {
-		t.Fatalf("Transaction unexpectedly failed: %v", err)
-	}
-	if committed {
-		t.Fatal("Transaction was committed when it shouldn't have been")
-	}
-	err = conn.QueryRow("select count(*) from foo").Scan(&n)
-	if err != nil {
-		t.Fatalf("QueryRow Scan failed: %v", err)
-	}
-	if n != 0 {
-		t.Fatalf("Did not receive correct number of rows: %v", n)
-	}
-
-	// when commit fails
-	committed, err = conn.Transaction(func() bool {
-		mustExec(t, conn, "insert into foo(id) values (1)")
-		mustExec(t, conn, "insert into foo(id) values (1)")
-		return true
-	})
-	if err == nil {
-		t.Fatal("Transaction should have failed but didn't")
-	}
-	if committed {
-		t.Fatal("Transaction was committed when it should have failed")
-	}
-
-	err = conn.QueryRow("select count(*) from foo").Scan(&n)
-	if err != nil {
-		t.Fatalf("QueryRow Scan failed: %v", err)
-	}
-	if n != 0 {
-		t.Fatalf("Did not receive correct number of rows: %v", n)
-	}
-
-	// when something in transaction panics
-	func() {
-		defer func() {
-			recover()
-		}()
-
-		committed, err = conn.Transaction(func() bool {
-			mustExec(t, conn, "insert into foo(id) values (1)")
-			panic("stop!")
-		})
-
-		err = conn.QueryRow("select count(*) from foo").Scan(&n)
-		if err != nil {
-			t.Fatalf("QueryRow Scan failed: %v", err)
-		}
-		if n != 0 {
-			t.Fatalf("Did not receive correct number of rows: %v", n)
-		}
-	}()
-}
-
-func TestTransactionIso(t *testing.T) {
-	t.Parallel()
-
-	conn := mustConnect(t, *defaultConnConfig)
-	defer closeConn(t, conn)
-
-	isoLevels := []string{pgx.Serializable, pgx.RepeatableRead, pgx.ReadCommitted, pgx.ReadUncommitted}
-	for _, iso := range isoLevels {
-		_, err := conn.TransactionIso(iso, func() bool {
-			var level string
-			conn.QueryRow("select current_setting('transaction_isolation')").Scan(&level)
-			if level != iso {
-				t.Errorf("Expected to be in isolation level %v but was %v", iso, level)
-			}
-			return true
-		})
-		if err != nil {
-			t.Fatalf("Unexpected transaction failure: %v", err)
-		}
-	}
-}
-
 func TestListenNotify(t *testing.T) {
 	t.Parallel()
 
diff --git a/tx.go b/tx.go
new file mode 100644
index 00000000..144f22a0
--- /dev/null
+++ b/tx.go
@@ -0,0 +1,141 @@
+package pgx
+
+import (
+	"errors"
+	"fmt"
+)
+
+func (c *Conn) Begin() (*Tx, error) {
+	return c.begin("")
+}
+
+func (c *Conn) BeginIso(isoLevel string) (*Tx, error) {
+	return c.begin(isoLevel)
+}
+
+func (c *Conn) begin(isoLevel string) (*Tx, error) {
+	var beginSql string
+	if isoLevel == "" {
+		beginSql = "begin"
+	} else {
+		beginSql = fmt.Sprintf("begin isolation level %s", isoLevel)
+	}
+
+	_, err := c.Exec(beginSql)
+	if err != nil {
+		return nil, err
+	}
+
+	return &Tx{conn: c}, nil
+}
+
+type Tx struct {
+	pool   *ConnPool
+	conn   *Conn
+	closed bool
+}
+
+// Commit commits the transaction
+func (tx *Tx) Commit() error {
+	if tx.closed {
+		return errors.New("tx is closed")
+	}
+
+	_, err := tx.conn.Exec("commit")
+	tx.close()
+	return err
+}
+
+// Rollback rolls back the transaction
+func (tx *Tx) Rollback() error {
+	if tx.closed {
+		return errors.New("tx is closed")
+	}
+
+	_, err := tx.conn.Exec("rollback")
+	tx.close()
+	return err
+}
+
+func (tx *Tx) close() {
+	if tx.pool != nil {
+		tx.pool.Release(tx.conn)
+		tx.pool = nil
+	}
+	tx.closed = true
+}
+
+// Exec delegates to the underlying *Conn
+func (tx *Tx) Exec(sql string, arguments ...interface{}) (commandTag CommandTag, err error) {
+	if tx.closed {
+		return CommandTag(""), errors.New("tx is closed")
+	}
+
+	return tx.conn.Exec(sql, arguments...)
+}
+
+// Query delegates to the underlying *Conn
+func (tx *Tx) Query(sql string, args ...interface{}) (*Rows, error) {
+	if tx.closed {
+		// Because checking for errors can be deferred to the *Rows, build one with the error
+		err := errors.New("tx is closed")
+		return &Rows{closed: true, err: err}, err
+	}
+
+	return tx.conn.Query(sql, args...)
+}
+
+// QueryRow delegates to the underlying *Conn
+func (tx *Tx) QueryRow(sql string, args ...interface{}) *Row {
+	rows, _ := tx.conn.Query(sql, args...)
+	return (*Row)(rows)
+}
+
+// Transaction runs f in a transaction. f should return true if the transaction
+// should be committed or false if it should be rolled back. Return value committed
+// is if the transaction was committed or not. committed should be checked separately
+// from err as an explicit rollback is not an error. Transaction will use the default
+// isolation level for the current connection. To use a specific isolation level see
+// TransactionIso
+func (c *Conn) Transaction(f func() bool) (committed bool, err error) {
+	return c.transaction("", f)
+}
+
+// TransactionIso is the same as Transaction except it takes an isoLevel argument that
+// it uses as the transaction isolation level.
+//
+// Valid isolation levels (and their constants) are:
+//   serializable (pgx.Serializable)
+//   repeatable read (pgx.RepeatableRead)
+//   read committed (pgx.ReadCommitted)
+//   read uncommitted (pgx.ReadUncommitted)
+func (c *Conn) TransactionIso(isoLevel string, f func() bool) (committed bool, err error) {
+	return c.transaction(isoLevel, f)
+}
+
+func (c *Conn) transaction(isoLevel string, f func() bool) (committed bool, err error) {
+	var beginSql string
+	if isoLevel == "" {
+		beginSql = "begin"
+	} else {
+		beginSql = fmt.Sprintf("begin isolation level %s", isoLevel)
+	}
+
+	if _, err = c.Exec(beginSql); err != nil {
+		return
+	}
+	defer func() {
+		if committed && c.TxStatus == 'T' {
+			_, err = c.Exec("commit")
+			if err != nil {
+				committed = false
+			}
+		} else {
+			_, err = c.Exec("rollback")
+			committed = false
+		}
+	}()
+
+	committed = f()
+	return
+}
diff --git a/tx_test.go b/tx_test.go
new file mode 100644
index 00000000..a0e0a805
--- /dev/null
+++ b/tx_test.go
@@ -0,0 +1,261 @@
+package pgx_test
+
+import (
+	"github.com/jackc/pgx"
+	"testing"
+)
+
+func TestTransactionSuccessfulCommit(t *testing.T) {
+	t.Parallel()
+
+	conn := mustConnect(t, *defaultConnConfig)
+	defer closeConn(t, conn)
+
+	createSql := `
+    create temporary table foo(
+      id integer,
+      unique (id) initially deferred
+    );
+  `
+
+	if _, err := conn.Exec(createSql); err != nil {
+		t.Fatalf("Failed to create table: %v", err)
+	}
+
+	tx, err := conn.Begin()
+	if err != nil {
+		t.Fatalf("conn.Begin failed: %v", err)
+	}
+
+	_, err = tx.Exec("insert into foo(id) values (1)")
+	if err != nil {
+		t.Fatalf("tx.Exec failed: %v", err)
+	}
+
+	err = tx.Commit()
+	if err != nil {
+		t.Fatalf("tx.Commit failed: %v", err)
+	}
+
+	var n int64
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 1 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+}
+
+func TestTransactionSuccessfulRollback(t *testing.T) {
+	t.Parallel()
+
+	conn := mustConnect(t, *defaultConnConfig)
+	defer closeConn(t, conn)
+
+	createSql := `
+    create temporary table foo(
+      id integer,
+      unique (id) initially deferred
+    );
+  `
+
+	if _, err := conn.Exec(createSql); err != nil {
+		t.Fatalf("Failed to create table: %v", err)
+	}
+
+	tx, err := conn.Begin()
+	if err != nil {
+		t.Fatalf("conn.Begin failed: %v", err)
+	}
+
+	_, err = tx.Exec("insert into foo(id) values (1)")
+	if err != nil {
+		t.Fatalf("tx.Exec failed: %v", err)
+	}
+
+	err = tx.Rollback()
+	if err != nil {
+		t.Fatalf("tx.Rollback failed: %v", err)
+	}
+
+	var n int64
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 0 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+}
+
+func TestBeginIso(t *testing.T) {
+	t.Parallel()
+
+	conn := mustConnect(t, *defaultConnConfig)
+	defer closeConn(t, conn)
+
+	isoLevels := []string{pgx.Serializable, pgx.RepeatableRead, pgx.ReadCommitted, pgx.ReadUncommitted}
+	for _, iso := range isoLevels {
+		tx, err := conn.BeginIso(iso)
+		if err != nil {
+			t.Fatalf("conn.BeginIso failed: %v", err)
+		}
+
+		var level string
+		conn.QueryRow("select current_setting('transaction_isolation')").Scan(&level)
+		if level != iso {
+			t.Errorf("Expected to be in isolation level %v but was %v", iso, level)
+		}
+
+		err = tx.Rollback()
+		if err != nil {
+			t.Fatalf("tx.Rollback failed: %v", err)
+		}
+	}
+}
+
+func TestTransaction(t *testing.T) {
+	t.Parallel()
+
+	conn := mustConnect(t, *defaultConnConfig)
+	defer closeConn(t, conn)
+
+	createSql := `
+    create temporary table foo(
+      id integer,
+      unique (id) initially deferred
+    );
+  `
+
+	if _, err := conn.Exec(createSql); err != nil {
+		t.Fatalf("Failed to create table: %v", err)
+	}
+
+	// Transaction happy path -- it executes function and commits
+	committed, err := conn.Transaction(func() bool {
+		mustExec(t, conn, "insert into foo(id) values (1)")
+		return true
+	})
+	if err != nil {
+		t.Fatalf("Transaction unexpectedly failed: %v", err)
+	}
+	if !committed {
+		t.Fatal("Transaction was not committed")
+	}
+
+	var n int64
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 1 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+
+	mustExec(t, conn, "truncate foo")
+
+	// It rolls back when passed function returns false
+	committed, err = conn.Transaction(func() bool {
+		mustExec(t, conn, "insert into foo(id) values (1)")
+		return false
+	})
+	if err != nil {
+		t.Fatalf("Transaction unexpectedly failed: %v", err)
+	}
+	if committed {
+		t.Fatal("Transaction should not have been committed")
+	}
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 0 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+
+	// it rolls back changes when connection is in error state
+	committed, err = conn.Transaction(func() bool {
+		mustExec(t, conn, "insert into foo(id) values (1)")
+		if _, err := conn.Exec("invalid"); err == nil {
+			t.Fatal("Exec was supposed to error but didn't")
+		}
+		return true
+	})
+	if err != nil {
+		t.Fatalf("Transaction unexpectedly failed: %v", err)
+	}
+	if committed {
+		t.Fatal("Transaction was committed when it shouldn't have been")
+	}
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 0 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+
+	// when commit fails
+	committed, err = conn.Transaction(func() bool {
+		mustExec(t, conn, "insert into foo(id) values (1)")
+		mustExec(t, conn, "insert into foo(id) values (1)")
+		return true
+	})
+	if err == nil {
+		t.Fatal("Transaction should have failed but didn't")
+	}
+	if committed {
+		t.Fatal("Transaction was committed when it should have failed")
+	}
+
+	err = conn.QueryRow("select count(*) from foo").Scan(&n)
+	if err != nil {
+		t.Fatalf("QueryRow Scan failed: %v", err)
+	}
+	if n != 0 {
+		t.Fatalf("Did not receive correct number of rows: %v", n)
+	}
+
+	// when something in transaction panics
+	func() {
+		defer func() {
+			recover()
+		}()
+
+		committed, err = conn.Transaction(func() bool {
+			mustExec(t, conn, "insert into foo(id) values (1)")
+			panic("stop!")
+		})
+
+		err = conn.QueryRow("select count(*) from foo").Scan(&n)
+		if err != nil {
+			t.Fatalf("QueryRow Scan failed: %v", err)
+		}
+		if n != 0 {
+			t.Fatalf("Did not receive correct number of rows: %v", n)
+		}
+	}()
+}
+
+func TestTransactionIso(t *testing.T) {
+	t.Parallel()
+
+	conn := mustConnect(t, *defaultConnConfig)
+	defer closeConn(t, conn)
+
+	isoLevels := []string{pgx.Serializable, pgx.RepeatableRead, pgx.ReadCommitted, pgx.ReadUncommitted}
+	for _, iso := range isoLevels {
+		_, err := conn.TransactionIso(iso, func() bool {
+			var level string
+			conn.QueryRow("select current_setting('transaction_isolation')").Scan(&level)
+			if level != iso {
+				t.Errorf("Expected to be in isolation level %v but was %v", iso, level)
+			}
+			return true
+		})
+		if err != nil {
+			t.Fatalf("Unexpected transaction failure: %v", err)
+		}
+	}
+}