It seems python3.5 does not completely free memory of any deleted object, this may because of python internally maintaining some kind of memroy pool for reusing purpose, however
Once you delete an object it is available to garbage collected rather than deleted immediately - so just give it some time and it will free up or trigger a gc.collect()
to speed things up.
python.exe
Python 3.5.1 (v3.5.1:37a07cee5969, Dec 6 2015, 01:38:48) [MSC v.1900 32 bit (Intel)] on win32
Type "help", "copyright", "credits" or "license" for more information.
>>> import psutil
>>> import gc
>>> psutil.Process().memory_info().rss / 2**20
13.2890625
>>> d = {x:x for x in range(10**7)}
>>> psutil.Process().memory_info().rss / 2**20
359.13671875
>>> del d
>>> psutil.Process().memory_info().rss / 2**20
13.5234375
>>> gc.collect()
0
>>> psutil.Process().memory_info().rss / 2**20
13.4375
>>>
Just for reference the Python 3 shell is actually more like ipython 2 in that there is a certain amount of storage taken up with history, etc., just for reference:
Python 3.5.1 (v3.5.1:37a07cee5969, Dec 6 2015, 01:38:48) [MSC v.1900 32 bit (Intel)] on win32
Type "help", "copyright", "credits" or "license" for more information.
>>> import psutil
>>> psutil.Process().memory_info().rss / 2**20
13.1875
>>> psutil.Process().memory_info().rss / 2**20
13.20703125
>>> psutil.Process().memory_info().rss / 2**20
13.20703125
>>> psutil.Process().memory_info().rss / 2**20
13.20703125
>>> psutil.Process().memory_info().rss / 2**20
13.20703125
>>> 22*3
66
>>> psutil.Process().memory_info().rss / 2**20
13.25390625
>>> import gc
>>> psutil.Process().memory_info().rss / 2**20
13.25390625
>>> gc.collect()
0
>>> psutil.Process().memory_info().rss / 2**20
13.171875
>>>
Next Morning to check if doing dict update in a function is different:
>>> psutil.Process().memory_info().rss / 2**20
13.1484375
>>> D = {}
>>> psutil.Process().memory_info().rss / 2**20
13.1484375
>>> def UpdateD(d, v):
... """ Add the text and value for v to dict d """
... d[v] = str(v)
...
>>> psutil.Process().memory_info().rss / 2**20
13.16015625
>>> for x in range(10**7):
... UpdateD(D, x)
...
>>> psutil.Process().memory_info().rss / 2**20
666.6328125
>>> del D
>>> psutil.Process().memory_info().rss / 2**20
10.765625
>>> gc.collect()
0
>>> psutil.Process().memory_info().rss / 2**20
12.8984375
>>>
So it looks like your production code might be hanging onto a reference that you still have to track down.