diff --git a/src/rebar_app_utils.erl b/src/rebar_app_utils.erl
index 0b16ae05..4bf2dea7 100644
--- a/src/rebar_app_utils.erl
+++ b/src/rebar_app_utils.erl
@@ -255,7 +255,10 @@ dep_to_app(Parent, DepsDir, Name, Vsn, Source, IsLock, State) ->
     CheckoutsDir = rebar_utils:to_list(rebar_dir:checkouts_dir(State, Name)),
     AppInfo = case rebar_app_info:discover(CheckoutsDir) of
                   {ok, App} ->
-                      rebar_app_info:source(rebar_app_info:is_checkout(App, true), checkout);
+                      OutDir = filename:join([DepsDir, "..", "checkouts", Name]),
+                      rebar_app_info:out_dir(
+                        rebar_app_info:source(
+                          rebar_app_info:is_checkout(App, true), checkout), OutDir);
                   not_found ->
                       Dir = rebar_utils:to_list(filename:join(DepsDir, Name)),
                       {ok, AppInfo0} =