diff --git a/Source/cmcmd.cxx b/Source/cmcmd.cxx
index 1dc304c3a..e9d77b250 100644
--- a/Source/cmcmd.cxx
+++ b/Source/cmcmd.cxx
@@ -813,10 +813,8 @@ int cmcmd::ExecuteCMakeCommand(std::vector<std::string>& args)
         {
         cm.SetGlobalGenerator(ggd);
         cmState::Snapshot snapshot = cm.GetCurrentSnapshot();
-        snapshot.GetDirectory().SetCurrentBinary
-          (cmSystemTools::GetCurrentWorkingDirectory());
-        snapshot.GetDirectory().SetCurrentSource
-          (cmSystemTools::GetCurrentWorkingDirectory());
+        snapshot.GetDirectory().SetCurrentBinary(startOutDir);
+        snapshot.GetDirectory().SetCurrentSource(startDir);
         cmsys::auto_ptr<cmMakefile> mf(new cmMakefile(ggd, snapshot));
         cmsys::auto_ptr<cmLocalGenerator> lgd(
               ggd->CreateLocalGenerator(mf.get()));
diff --git a/Tests/Fortran/CMakeLists.txt b/Tests/Fortran/CMakeLists.txt
index 753ce2796..ecf38a605 100644
--- a/Tests/Fortran/CMakeLists.txt
+++ b/Tests/Fortran/CMakeLists.txt
@@ -223,5 +223,6 @@ if(TEST_MODULE_DEPENDS)
   endif()
 
   add_subdirectory(Library)
+  add_subdirectory(Subdir)
   add_subdirectory(Executable)
 endif()
diff --git a/Tests/Fortran/Executable/CMakeLists.txt b/Tests/Fortran/Executable/CMakeLists.txt
index 55f21ad46..de08d8605 100644
--- a/Tests/Fortran/Executable/CMakeLists.txt
+++ b/Tests/Fortran/Executable/CMakeLists.txt
@@ -3,6 +3,6 @@ include_directories(${External_BINARY_DIR})
 link_directories(${External_BINARY_DIR})
 
 add_executable(subdir_exe2 main.f90)
-target_link_libraries(subdir_exe2 subdir_mods)
+target_link_libraries(subdir_exe2 subdir_mods subdir_mods2)
 add_dependencies(subdir_exe2 ExternalTarget)
 target_link_libraries(subdir_exe2 myext)
diff --git a/Tests/Fortran/Executable/main.f90 b/Tests/Fortran/Executable/main.f90
index f21156cda..640259c12 100644
--- a/Tests/Fortran/Executable/main.f90
+++ b/Tests/Fortran/Executable/main.f90
@@ -1,6 +1,7 @@
 PROGRAM MAINF90
   USE libraryModuleA
   USE libraryModuleB
+  USE subdirModuleA
   USE externalMod
   CALL printExtModGreeting
 END PROGRAM MAINF90
diff --git a/Tests/Fortran/Subdir/CMakeLists.txt b/Tests/Fortran/Subdir/CMakeLists.txt
new file mode 100644
index 000000000..52683e587
--- /dev/null
+++ b/Tests/Fortran/Subdir/CMakeLists.txt
@@ -0,0 +1,2 @@
+add_library(subdir_mods2 subdir.f90)
+target_include_directories(subdir_mods2 INTERFACE ${CMAKE_CURRENT_BINARY_DIR})
diff --git a/Tests/Fortran/Subdir/subdir.f90 b/Tests/Fortran/Subdir/subdir.f90
new file mode 100644
index 000000000..68955f6b5
--- /dev/null
+++ b/Tests/Fortran/Subdir/subdir.f90
@@ -0,0 +1,2 @@
+MODULE subdirModuleA
+END MODULE