diff --git a/src/cmd/go/build.go b/src/cmd/go/build.go
index 0b51a22d4f9..24c2a05d226 100644
--- a/src/cmd/go/build.go
+++ b/src/cmd/go/build.go
@@ -383,6 +383,7 @@ func goFilesPackage(gofiles []string) *Package {
 
 	bp, err := ctxt.ImportDir(dir, 0)
 	pkg := new(Package)
+	pkg.local = true
 	pkg.load(&stk, bp, err)
 	pkg.localPrefix = dirToImportPath(dir)
 	pkg.ImportPath = "command-line-arguments"
@@ -1202,7 +1203,7 @@ func (gcToolchain) pack(b *builder, p *Package, objDir, afile string, ofiles []s
 
 func (gcToolchain) ld(b *builder, p *Package, out string, allactions []*action, mainpkg string, ofiles []string) error {
 	importArgs := b.includeArgs("-L", allactions)
-	return b.run(p.Dir, p.ImportPath, tool(archChar+"l"), "-o", out, importArgs, buildLdflags, mainpkg)
+	return b.run(".", p.ImportPath, tool(archChar+"l"), "-o", out, importArgs, buildLdflags, mainpkg)
 }
 
 func (gcToolchain) cc(b *builder, p *Package, objdir, ofile, cfile string) error {
@@ -1284,7 +1285,7 @@ func (tools gccgcToolchain) ld(b *builder, p *Package, out string, allactions []
 		ldflags = append(ldflags, afile)
 	}
 	ldflags = append(ldflags, cgoldflags...)
-	return b.run(p.Dir, p.ImportPath, "gccgo", "-o", out, buildGccgoflags, ofiles, "-Wl,-(", ldflags, "-Wl,-)")
+	return b.run(".", p.ImportPath, "gccgo", "-o", out, buildGccgoflags, ofiles, "-Wl,-(", ldflags, "-Wl,-)")
 }
 
 func (gccgcToolchain) cc(b *builder, p *Package, objdir, ofile, cfile string) error {
@@ -1308,6 +1309,9 @@ func (b *builder) gccld(p *Package, out string, flags []string, obj []string) er
 
 // gccCmd returns a gcc command line prefix
 func (b *builder) gccCmd(objdir string) []string {
+	// NOTE: env.go's mkEnv knows that the first three
+	// strings returned are "gcc", "-I", objdir (and cuts them off).
+
 	// TODO: HOST_CC?
 	a := []string{"gcc", "-I", objdir, "-g", "-O2"}
 
diff --git a/src/cmd/go/pkg.go b/src/cmd/go/pkg.go
index 9bdd56240b7..1b6a8c5124c 100644
--- a/src/cmd/go/pkg.go
+++ b/src/cmd/go/pkg.go
@@ -279,9 +279,8 @@ func (p *Package) load(stk *importStack, bp *build.Package, err error) *Package
 	p.copyBuild(bp)
 
 	// The localPrefix is the path we interpret ./ imports relative to.
-	// Now that we've fixed the import path, it's just the import path.
 	// Synthesized main packages sometimes override this.
-	p.localPrefix = p.ImportPath
+	p.localPrefix = dirToImportPath(p.Dir)
 
 	if err != nil {
 		p.Incomplete = true
@@ -343,6 +342,16 @@ func (p *Package) load(stk *importStack, bp *build.Package, err error) *Package
 		}
 		p1 := loadImport(path, p.Dir, stk, p.build.ImportPos[path])
 		if p1.local {
+			if !p.local && p.Error == nil {
+				p.Error = &PackageError{
+					ImportStack: stk.copy(),
+					Err:         fmt.Sprintf("local import %q in non-local package", path),
+				}
+				pos := p.build.ImportPos[path]
+				if len(pos) > 0 {
+					p.Error.Pos = pos[0].String()
+				}
+			}
 			path = p1.ImportPath
 			importPaths[i] = path
 		}