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This issue was originally reported by David Ezell. The XML Schema 1.1 specification must choose either to use the same namespace as 1.0, or to use a different namespace, or to use more than one namespace. An explicit decision should be made. In our general outline of compatibility goals for 1.1, the WG agreed that we would avoid changes to the XML transfer syntax, in order that XML Schema 1.0 processors can successfully process 1.1 schema documents. This seems to some to entail making no change in the namespace. At the same time, we also agreed that changes to the XML transfer syntax might be made nevertheless, if they were necessary in order to support versioning better. This seems to some to imply that any final decision on whether we will make breaking changes is still out; if we do, some WG members will wish to entertain the possibility of changing the namespace, or adding additional namespaces. This topic was raised in the Working Group call of 1 July 2004 (http://lists.w3.org/Archives/Member/w3c-xml-schema-ig/2004Jul/nnnn.html), and it was agreed to create a separate requirement to make it easier to track. The underlying issue applies to both Structures and Datatypes. This Bugzilla entry is for Structures. According to the requirements document, this issue has not been classified.
The Working Group discussed this question at its telcon of 22 September 2006. We agreed that we will leave the namespace unchanged from 1.0. A Note will be added after the first paragraph of 2.6 (about schema-related markup in instances -- it's where the XSD namespace is introduced): Note: The namespace for schema documents is unchanged from version 1.0 of this specification, because any schema document valid under the rules of version 1.0 has essentially the same validation semantics under this specification as it did under XML Schema 1.0 Second Edition. There are a few exceptions to this rule, involving errors in version 1.0 of this specification which were not reparable by errata and which have therefore been fixed only in this version of this specification, not in version 1.0. This wording has not been reviewed by the Working Group, and may be revised if any WG member (or any revieewr of the spec) wishes to propose revisions or identify flaws.