diff --git a/source/dub/dub.d b/source/dub/dub.d
index 5cbe3af..97d87fc 100644
--- a/source/dub/dub.d
+++ b/source/dub/dub.d
@@ -168,7 +168,7 @@
 		else
 			m_packageSuppliers = getPackageSuppliers(additional_package_suppliers, skip_registry);
 
-		m_packageManager = new PackageManager(m_dirs.localRepository, m_dirs.systemSettings);
+		m_packageManager = new PackageManager(m_rootPath, m_dirs.localRepository, m_dirs.systemSettings);
 
 		auto ccps = m_config.customCachePaths;
 		if (ccps.length)
@@ -260,7 +260,7 @@
 	{
 		init(NativePath());
 		m_overrideSearchPath = override_path;
-		m_packageManager = new PackageManager(NativePath(), NativePath(), false);
+		m_packageManager = new PackageManager(NativePath(), NativePath(), NativePath(), false);
 		updatePackageSearchPath();
 	}
 
@@ -862,7 +862,7 @@
 
 		NativePath placement;
 		final switch (location) {
-			case PlacementLocation.local: placement = m_rootPath; break;
+			case PlacementLocation.local: placement = m_rootPath ~ ".dub/packages/"; break;
 			case PlacementLocation.user: placement = m_dirs.localRepository ~ "packages/"; break;
 			case PlacementLocation.system: placement = m_dirs.systemSettings ~ "packages/"; break;
 		}
diff --git a/source/dub/generators/build.d b/source/dub/generators/build.d
index 5a92dbf..5f54d4a 100644
--- a/source/dub/generators/build.d
+++ b/source/dub/generators/build.d
@@ -623,7 +623,7 @@
 
 	auto desc = parseJsonString(`{"name": "test", "targetType": "library", "sourceFiles": ["foo.d", "`~libfile~`"]}`);
 	auto pack = new Package(desc, NativePath("/tmp/fooproject"));
-	auto pman = new PackageManager(NativePath("/tmp/foo/"), NativePath("/tmp/foo/"), false);
+	auto pman = new PackageManager(pack.path, NativePath("/tmp/foo/"), NativePath("/tmp/foo/"), false);
 	auto prj = new Project(pman, pack);
 
 	final static class TestCompiler : GDCCompiler {
diff --git a/source/dub/packagemanager.d b/source/dub/packagemanager.d
index c06da9c..ae03dbf 100644
--- a/source/dub/packagemanager.d
+++ b/source/dub/packagemanager.d
@@ -39,9 +39,20 @@
 
 	this(NativePath user_path, NativePath system_path, bool refresh_packages = true)
 	{
-		m_repositories.length = LocalPackageType.max+1;
-		m_repositories[LocalPackageType.user] = Repository(user_path ~ "packages/");
-		m_repositories[LocalPackageType.system] = Repository(system_path ~ "packages/");
+		m_repositories = [
+			Repository(user_path ~ "packages/"),
+			Repository(system_path ~ "packages/")];
+
+		if (refresh_packages) refresh(true);
+	}
+
+	this(NativePath package_path, NativePath user_path, NativePath system_path, bool refresh_packages = true)
+	{
+		m_repositories = [
+			Repository(package_path ~ ".dub/packages/"),
+			Repository(user_path ~ "packages/"),
+			Repository(system_path ~ "packages/")];
+
 		if (refresh_packages) refresh(true);
 	}
 
@@ -615,6 +626,7 @@
 		}
 		scanLocalPackages(LocalPackageType.system);
 		scanLocalPackages(LocalPackageType.user);
+		scanLocalPackages(LocalPackageType.package_);
 
 		auto old_packages = m_packages;
 
@@ -681,6 +693,7 @@
 				}
 			}
 		}
+		loadOverrides(LocalPackageType.package_);
 		loadOverrides(LocalPackageType.user);
 		loadOverrides(LocalPackageType.system);
 	}
@@ -813,6 +826,7 @@
 }
 
 enum LocalPackageType {
+	package_,
 	user,
 	system
 }
diff --git a/test/issue1180-local-cache-broken.sh b/test/issue1180-local-cache-broken.sh
new file mode 100755
index 0000000..e46970a
--- /dev/null
+++ b/test/issue1180-local-cache-broken.sh
@@ -0,0 +1,20 @@
+#!/usr/bin/env bash
+DIR=$(dirname "${BASH_SOURCE[0]}")
+
+. "$DIR"/common.sh
+
+PORT=$(($$ + 1024)) # PID + 1024
+"$DUB" remove maven-dubpackage --root="$DIR/issue1180-local-cache-broken" --non-interactive --version=* 2>/dev/null || true
+
+"$DUB" build --single "$DIR"/test_registry.d
+"$DIR"/test_registry --folder="$DIR/issue1416-maven-repo-pkg-supplier" --port=$PORT &
+PID=$!
+sleep 1
+trap 'kill $PID 2>/dev/null || true' exit
+
+echo "Trying to download maven-dubpackage (1.0.5)"
+"$DUB" upgrade --root="$DIR/issue1180-local-cache-broken" --cache=local --skip-registry=all --registry=mvn+http://localhost:$PORT/maven/release/dubpackages
+
+if ! "$DUB" remove maven-dubpackage --root="$DIR/issue1180-local-cache-broken" --non-interactive --version=1.0.5 2>/dev/null; then
+    die 'DUB did not install package from maven registry.'
+fi
diff --git a/test/issue1180-local-cache-broken.sh.min_frontend b/test/issue1180-local-cache-broken.sh.min_frontend
new file mode 100644
index 0000000..bb0a2e1
--- /dev/null
+++ b/test/issue1180-local-cache-broken.sh.min_frontend
@@ -0,0 +1 @@
+2.076
diff --git a/test/issue1180-local-cache-broken/.gitignore b/test/issue1180-local-cache-broken/.gitignore
new file mode 100644
index 0000000..0fd9d37
--- /dev/null
+++ b/test/issue1180-local-cache-broken/.gitignore
@@ -0,0 +1,4 @@
+test
+*.o
+*.exe
+.dub
\ No newline at end of file
diff --git a/test/issue1180-local-cache-broken/.no_build b/test/issue1180-local-cache-broken/.no_build
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/issue1180-local-cache-broken/.no_build
diff --git a/test/issue1180-local-cache-broken/dub.json b/test/issue1180-local-cache-broken/dub.json
new file mode 100644
index 0000000..495617d
--- /dev/null
+++ b/test/issue1180-local-cache-broken/dub.json
@@ -0,0 +1,7 @@
+{
+	"name": "test",
+	"dependencies": {
+		"maven-dubpackage": "1.0.5"
+	}
+
+}
\ No newline at end of file
diff --git a/test/issue1180-local-cache-broken/source/app.d b/test/issue1180-local-cache-broken/source/app.d
new file mode 100644
index 0000000..ef93217
--- /dev/null
+++ b/test/issue1180-local-cache-broken/source/app.d
@@ -0,0 +1 @@
+void main(){}
\ No newline at end of file
diff --git a/test/issue674-concurrent-dub.sh b/test/issue674-concurrent-dub.sh
index d49bdd3..8f59ab7 100755
--- a/test/issue674-concurrent-dub.sh
+++ b/test/issue674-concurrent-dub.sh
@@ -16,4 +16,4 @@
 pid2=$!
 wait $pid1
 wait $pid2
-[ -d ${TMPDIR}/bloom* ]
+[ -d ${TMPDIR}/.dub/packages/bloom* ]
\ No newline at end of file