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Until this feature gets built into Python, you can use a Python-coded generator such as this one to accomplish the same effect:
def fileLineIter(inputFile,
 inputNewline="\n",
 outputNewline=None,
 readSize=8192):
 """Like the normal file iter but you can set what string indicates newline.
 
 The newline string can be arbitrarily long; it need not be restricted to a
 single character. You can also set the read size and control whether or not
 the newline string is left on the end of the iterated lines. Setting
 newline to '0円' is particularly good for use with an input file created with
 something like "os.popen('find -print0')".
 """
 if outputNewline is None: outputNewline = inputNewline
 partialLine = ''
 while True:
 charsJustRead = inputFile.read(readSize)
 if not charsJustRead: break
 partialLine += charsJustRead
 lines = partialLine.split(inputNewline)
 partialLine = lines.pop()
 for line in lines: yield line + outputNewline
 if partialLine: yield partialLine