diff --git a/Cargo.toml b/Cargo.toml
index 520fefb3e..e6119bcef 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -82,7 +82,8 @@ normpath = "1.1.1"
 path-slash = "0.2.1"
 pep440_rs = { version = "0.5.0", features = ["serde", "tracing"] }
 pep508_rs = { version = "0.4.2", features = ["serde", "tracing"] }
-time = "0.3.34"
+time = "0.3.17"
+url = "2.5.0"
 unicode-xid = { version = "0.2.4", optional = true }
 
 # cli
@@ -127,8 +128,7 @@ rustls-pemfile = { version = "2.1.0", optional = true }
 keyring = { version = "2.3.2", default-features = false, features = [
     "linux-no-secret-service",
 ], optional = true }
-wild = { version = "2.2.1", optional = true }
-url = { version = "2.3.0", optional = true }
+wild = { version = "2.1.0", optional = true }
 
 [dev-dependencies]
 expect-test = "1.4.1"
@@ -154,10 +154,10 @@ upload = [
     "configparser",
     "bytesize",
     "dialoguer/password",
-    "url",
     "wild",
     "dep:dirs",
 ]
+
 # keyring doesn't support *BSD so it's not enabled in `full` by default
 password-storage = ["upload", "keyring"]
 
diff --git a/guide/src/SUMMARY.md b/guide/src/SUMMARY.md
index f7041481f..696d8bdaa 100644
--- a/guide/src/SUMMARY.md
+++ b/guide/src/SUMMARY.md
@@ -11,7 +11,7 @@
 - [Python Metadata](./metadata.md)
 - [Configuration](./config.md)
 - [Environment Variables](./environment-variables.md)
-- [Local Development](./develop.md)
+- [Local Development](./local_development.md)
 - [Distribution](./distribution.md)
 - [Sphinx Integration](./sphinx.md)
 
diff --git a/guide/src/develop.md b/guide/src/local_development.md
similarity index 87%
rename from guide/src/develop.md
rename to guide/src/local_development.md
index 8ee68b754..1f80890b2 100644
--- a/guide/src/develop.md
+++ b/guide/src/local_development.md
@@ -117,15 +117,26 @@ requires = ["maturin>=1.0,<2.0"]
 build-backend = "maturin"
 ```
 
-Editable installs right now is only useful in mixed Rust/Python project so you
-don't have to recompile and reinstall when only Python source code changes. For
-example when using pip you can make an editable installation with
+Editable installs can be used with mixed Rust/Python projects so you
+don't have to recompile and reinstall when only Python source code changes.
+They can also be used with mixed and pure projects together with the
+import hook so that recompilation/re-installation occurs automatically
+when Python or Rust source code changes.
+
+To install a package in editable mode with pip:
 
 ```bash
+cd my-project
 pip install -e .
 ```
+or
+```bash
+cd my-project
+maturin develop
+```
 
-Then Python source code changes will take effect immediately.
+Then Python source code changes will take effect immediately because the interpreter looks
+for the modules directly in the project source tree.
 
 ## Import Hook
 
diff --git a/src/develop.rs b/src/develop.rs
index f6ed88a4f..aed9d2c28 100644
--- a/src/develop.rs
+++ b/src/develop.rs
@@ -1,5 +1,6 @@
 use crate::build_options::CargoOptions;
 use crate::target::Arch;
+use crate::BuildContext;
 use crate::BuildOptions;
 use crate::PlatformTag;
 use crate::PythonInterpreter;
@@ -7,10 +8,13 @@ use crate::Target;
 use anyhow::{anyhow, bail, Context, Result};
 use cargo_options::heading;
 use pep508_rs::{MarkerExpression, MarkerOperator, MarkerTree, MarkerValue};
+use regex::Regex;
+use std::fs;
 use std::path::Path;
 use std::path::PathBuf;
 use std::process::Command;
 use tempfile::TempDir;
+use url::Url;
 
 /// Install the crate as module in the current virtualenv
 #[derive(Debug, clap::Parser)]
@@ -72,6 +76,143 @@ fn make_pip_command(python_path: &Path, pip_path: Option<&Path>) -> Command {
     }
 }
 
+fn install_dependencies(
+    build_context: &BuildContext,
+    extras: &[String],
+    interpreter: &PythonInterpreter,
+    pip_path: Option<&Path>,
+) -> Result<()> {
+    if !build_context.metadata21.requires_dist.is_empty() {
+        let mut args = vec!["install".to_string()];
+        args.extend(build_context.metadata21.requires_dist.iter().map(|x| {
+            let mut pkg = x.clone();
+            // Remove extra marker to make it installable with pip
+            // Keep in sync with `Metadata21::merge_pyproject_toml()`!
+            for extra in extras {
+                pkg.marker = pkg.marker.and_then(|marker| -> Option<MarkerTree> {
+                    match marker.clone() {
+                        MarkerTree::Expression(MarkerExpression {
+                            l_value: MarkerValue::Extra,
+                            operator: MarkerOperator::Equal,
+                            r_value: MarkerValue::QuotedString(extra_value),
+                        }) if &extra_value == extra => None,
+                        MarkerTree::And(and) => match &*and {
+                            [existing, MarkerTree::Expression(MarkerExpression {
+                                l_value: MarkerValue::Extra,
+                                operator: MarkerOperator::Equal,
+                                r_value: MarkerValue::QuotedString(extra_value),
+                            })] if extra_value == extra => Some(existing.clone()),
+                            _ => Some(marker),
+                        },
+                        _ => Some(marker),
+                    }
+                });
+            }
+            pkg.to_string()
+        }));
+        let status = make_pip_command(&interpreter.executable, pip_path)
+            .args(&args)
+            .status()
+            .context("Failed to run pip install")?;
+        if !status.success() {
+            bail!(r#"pip install finished with "{}""#, status)
+        }
+    }
+    Ok(())
+}
+
+fn pip_install_wheel(
+    build_context: &BuildContext,
+    python: &Path,
+    venv_dir: &Path,
+    pip_path: Option<&Path>,
+    wheel_filename: &Path,
+) -> Result<()> {
+    let mut pip_cmd = make_pip_command(python, pip_path);
+    let output = pip_cmd
+        .args(["install", "--no-deps", "--force-reinstall"])
+        .arg(dunce::simplified(wheel_filename))
+        .output()
+        .context(format!(
+            "pip install failed (ran {:?} with {:?})",
+            pip_cmd.get_program(),
+            &pip_cmd.get_args().collect::<Vec<_>>(),
+        ))?;
+    if !output.status.success() {
+        bail!(
+            "pip install in {} failed running {:?}: {}\n--- Stdout:\n{}\n--- Stderr:\n{}\n---\n",
+            venv_dir.display(),
+            &pip_cmd.get_args().collect::<Vec<_>>(),
+            output.status,
+            String::from_utf8_lossy(&output.stdout).trim(),
+            String::from_utf8_lossy(&output.stderr).trim(),
+        );
+    }
+    if !output.stderr.is_empty() {
+        eprintln!(
+            "⚠️ Warning: pip raised a warning running {:?}:\n{}",
+            &pip_cmd.get_args().collect::<Vec<_>>(),
+            String::from_utf8_lossy(&output.stderr).trim(),
+        );
+    }
+    fix_direct_url(build_context, python, pip_path)?;
+    Ok(())
+}
+
+/// Each editable-installed python package has a direct_url.json file that includes a file:// URL
+/// indicating the location of the source code of that project. The maturin import hook uses this
+/// URL to locate and rebuild editable-installed projects.
+///
+/// When a maturin package is installed using `pip install -e`, pip takes care of writing the
+/// correct URL, however when a maturin package is installed with `maturin develop`, the URL is
+/// set to the path to the temporary wheel file created during installation.
+fn fix_direct_url(
+    build_context: &BuildContext,
+    python: &Path,
+    pip_path: Option<&Path>,
+) -> Result<()> {
+    println!("✏️  Setting installed package as editable");
+    let mut pip_cmd = make_pip_command(python, pip_path);
+    let output = pip_cmd
+        .args(["show", "--files"])
+        .arg(&build_context.metadata21.name)
+        .output()
+        .context(format!(
+            "pip show failed (ran {:?} with {:?})",
+            pip_cmd.get_program(),
+            &pip_cmd.get_args().collect::<Vec<_>>(),
+        ))?;
+    if let Some(direct_url_path) = parse_direct_url_path(&String::from_utf8_lossy(&output.stdout))?
+    {
+        let project_dir = build_context
+            .pyproject_toml_path
+            .parent()
+            .ok_or_else(|| anyhow!("failed to get project directory"))?;
+        let uri = Url::from_file_path(project_dir)
+            .map_err(|_| anyhow!("failed to convert project directory to file URL"))?;
+        let content = format!("{{\"dir_info\": {{\"editable\": true}}, \"url\": \"{uri}\"}}");
+        fs::write(direct_url_path, content)?;
+    }
+    Ok(())
+}
+
+fn parse_direct_url_path(pip_show_output: &str) -> Result<Option<PathBuf>> {
+    if let Some(Some(location)) = Regex::new(r"Location: ([^\r\n]*)")?
+        .captures(pip_show_output)
+        .map(|c| c.get(1))
+    {
+        if let Some(Some(direct_url_path)) = Regex::new(r"  (.*direct_url.json)")?
+            .captures(pip_show_output)
+            .map(|c| c.get(1))
+        {
+            return Ok(Some(
+                PathBuf::from(location.as_str()).join(direct_url_path.as_str()),
+            ));
+        }
+    }
+    Ok(None)
+}
+
 /// Installs a crate by compiling it and copying the shared library to site-packages.
 /// Also adds the dist-info directory to make sure pip and other tools detect the library
 ///
@@ -137,74 +278,18 @@ pub fn develop(develop_options: DevelopOptions, venv_dir: &Path) -> Result<()> {
             || anyhow!("Expected `python` to be a python interpreter inside a virtualenv ಠ_ಠ"),
         )?;
 
-    // Install dependencies
-    if !build_context.metadata21.requires_dist.is_empty() {
-        let mut args = vec!["install".to_string()];
-        args.extend(build_context.metadata21.requires_dist.iter().map(|x| {
-            let mut pkg = x.clone();
-            // Remove extra marker to make it installable with pip
-            // Keep in sync with `Metadata21::merge_pyproject_toml()`!
-            for extra in &extras {
-                pkg.marker = pkg.marker.and_then(|marker| -> Option<MarkerTree> {
-                    match marker.clone() {
-                        MarkerTree::Expression(MarkerExpression {
-                            l_value: MarkerValue::Extra,
-                            operator: MarkerOperator::Equal,
-                            r_value: MarkerValue::QuotedString(extra_value),
-                        }) if &extra_value == extra => None,
-                        MarkerTree::And(and) => match &*and {
-                            [existing, MarkerTree::Expression(MarkerExpression {
-                                l_value: MarkerValue::Extra,
-                                operator: MarkerOperator::Equal,
-                                r_value: MarkerValue::QuotedString(extra_value),
-                            })] if extra_value == extra => Some(existing.clone()),
-                            _ => Some(marker),
-                        },
-                        _ => Some(marker),
-                    }
-                });
-            }
-            pkg.to_string()
-        }));
-        let status = make_pip_command(&interpreter.executable, pip_path.as_deref())
-            .args(&args)
-            .status()
-            .context("Failed to run pip install")?;
-        if !status.success() {
-            bail!(r#"pip install finished with "{}""#, status)
-        }
-    }
+    install_dependencies(&build_context, &extras, &interpreter, pip_path.as_deref())?;
 
     let wheels = build_context.build_wheels()?;
     if !skip_install {
         for (filename, _supported_version) in wheels.iter() {
-            let mut pip_cmd = make_pip_command(&python, pip_path.as_deref());
-            let output = pip_cmd
-                .args(["install", "--no-deps", "--force-reinstall"])
-                .arg(dunce::simplified(filename))
-                .output()
-                .context(format!(
-                    "pip install failed (ran {:?} with {:?})",
-                    pip_cmd.get_program(),
-                    &pip_cmd.get_args().collect::<Vec<_>>(),
-                ))?;
-            if !output.status.success() {
-                bail!(
-                "pip install in {} failed running {:?}: {}\n--- Stdout:\n{}\n--- Stderr:\n{}\n---\n",
-                venv_dir.display(),
-                &pip_cmd.get_args().collect::<Vec<_>>(),
-                output.status,
-                String::from_utf8_lossy(&output.stdout).trim(),
-                String::from_utf8_lossy(&output.stderr).trim(),
-            );
-            }
-            if !output.stderr.is_empty() {
-                eprintln!(
-                    "⚠️ Warning: pip raised a warning running {:?}:\n{}",
-                    &pip_cmd.get_args().collect::<Vec<_>>(),
-                    String::from_utf8_lossy(&output.stderr).trim(),
-                );
-            }
+            pip_install_wheel(
+                &build_context,
+                &python,
+                venv_dir,
+                pip_path.as_deref(),
+                filename,
+            )?;
             eprintln!(
                 "🛠 Installed {}-{}",
                 build_context.metadata21.name, build_context.metadata21.version
@@ -214,3 +299,79 @@ pub fn develop(develop_options: DevelopOptions, venv_dir: &Path) -> Result<()> {
 
     Ok(())
 }
+
+#[cfg(test)]
+mod test {
+    use std::path::PathBuf;
+
+    use super::parse_direct_url_path;
+
+    #[test]
+    #[cfg(not(target_os = "windows"))]
+    fn test_parse_direct_url() {
+        let example_with_direct_url = "\
+Name: my-project
+Version: 0.1.0
+Location: /foo bar/venv/lib/pythonABC/site-packages
+Editable project location: /tmp/temporary.whl
+Files:
+  my_project-0.1.0+abc123de.dist-info/INSTALLER
+  my_project-0.1.0+abc123de.dist-info/METADATA
+  my_project-0.1.0+abc123de.dist-info/RECORD
+  my_project-0.1.0+abc123de.dist-info/REQUESTED
+  my_project-0.1.0+abc123de.dist-info/WHEEL
+  my_project-0.1.0+abc123de.dist-info/direct_url.json
+  my_project-0.1.0+abc123de.dist-info/entry_points.txt
+  my_project.pth
+";
+        let expected_path = PathBuf::from("/foo bar/venv/lib/pythonABC/site-packages/my_project-0.1.0+abc123de.dist-info/direct_url.json");
+        assert_eq!(
+            parse_direct_url_path(example_with_direct_url).unwrap(),
+            Some(expected_path)
+        );
+
+        let example_without_direct_url = "\
+Name: my-project
+Version: 0.1.0
+Location: /foo bar/venv/lib/pythonABC/site-packages
+Files:
+  my_project-0.1.0+abc123de.dist-info/INSTALLER
+  my_project-0.1.0+abc123de.dist-info/METADATA
+  my_project-0.1.0+abc123de.dist-info/RECORD
+  my_project-0.1.0+abc123de.dist-info/REQUESTED
+  my_project-0.1.0+abc123de.dist-info/WHEEL
+  my_project-0.1.0+abc123de.dist-info/entry_points.txt
+  my_project.pth
+";
+
+        assert_eq!(
+            parse_direct_url_path(example_without_direct_url).unwrap(),
+            None
+        );
+    }
+
+    #[test]
+    #[cfg(target_os = "windows")]
+    fn test_parse_direct_url_windows() {
+        let example_with_direct_url_windows = "\
+Name: my-project\r
+Version: 0.1.0\r
+Location: C:\\foo bar\\venv\\Lib\\site-packages\r
+Files:\r
+  my_project-0.1.0+abc123de.dist-info\\INSTALLER\r
+  my_project-0.1.0+abc123de.dist-info\\METADATA\r
+  my_project-0.1.0+abc123de.dist-info\\RECORD\r
+  my_project-0.1.0+abc123de.dist-info\\REQUESTED\r
+  my_project-0.1.0+abc123de.dist-info\\WHEEL\r
+  my_project-0.1.0+abc123de.dist-info\\direct_url.json\r
+  my_project-0.1.0+abc123de.dist-info\\entry_points.txt\r
+  my_project.pth\r
+";
+
+        let expected_path = PathBuf::from("C:\\foo bar\\venv\\Lib\\site-packages\\my_project-0.1.0+abc123de.dist-info\\direct_url.json");
+        assert_eq!(
+            parse_direct_url_path(example_with_direct_url_windows).unwrap(),
+            Some(expected_path)
+        );
+    }
+}
diff --git a/test-crates/lib_with_disallowed_lib/Cargo.lock b/test-crates/lib_with_disallowed_lib/Cargo.lock
index 1f66fdb7f..ff33cdf2b 100644
--- a/test-crates/lib_with_disallowed_lib/Cargo.lock
+++ b/test-crates/lib_with_disallowed_lib/Cargo.lock
@@ -29,11 +29,17 @@ version = "1.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "baf1de4339761588bc0619e3cbc0120ee582ebb74b53b4efbf79117bd2da40fd"
 
+[[package]]
+name = "heck"
+version = "0.4.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "95505c38b4572b2d910cecb0281560f54b440a19336cbbcb27bf6ce6adc6f5a8"
+
 [[package]]
 name = "indoc"
-version = "1.0.9"
+version = "2.0.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "bfa799dd5ed20a7e349f3b4639aa80d74549c81716d9ec4f994c9b5815598306"
+checksum = "1e186cfbae8084e513daff4240b4797e342f988cecda4fb6c939150f96315fd8"
 
 [[package]]
 name = "lib_with_disallowed_lib"
@@ -125,9 +131,9 @@ dependencies = [
 
 [[package]]
 name = "pyo3"
-version = "0.19.2"
+version = "0.20.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e681a6cfdc4adcc93b4d3cf993749a4552018ee0a9b65fc0ccfad74352c72a38"
+checksum = "9a89dc7a5850d0e983be1ec2a463a171d20990487c3cfcd68b5363f1ee3d6fe0"
 dependencies = [
  "cfg-if",
  "indoc",
@@ -142,9 +148,9 @@ dependencies = [
 
 [[package]]
 name = "pyo3-build-config"
-version = "0.19.2"
+version = "0.20.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "076c73d0bc438f7a4ef6fdd0c3bb4732149136abd952b110ac93e4edb13a6ba5"
+checksum = "07426f0d8fe5a601f26293f300afd1a7b1ed5e78b2a705870c5f30893c5163be"
 dependencies = [
  "once_cell",
  "target-lexicon",
@@ -152,9 +158,9 @@ dependencies = [
 
 [[package]]
 name = "pyo3-ffi"
-version = "0.19.2"
+version = "0.20.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e53cee42e77ebe256066ba8aa77eff722b3bb91f3419177cf4cd0f304d3284d9"
+checksum = "dbb7dec17e17766b46bca4f1a4215a85006b4c2ecde122076c562dd058da6cf1"
 dependencies = [
  "libc",
  "pyo3-build-config",
@@ -162,9 +168,9 @@ dependencies = [
 
 [[package]]
 name = "pyo3-macros"
-version = "0.19.2"
+version = "0.20.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "dfeb4c99597e136528c6dd7d5e3de5434d1ceaf487436a3f03b2d56b6fc9efd1"
+checksum = "05f738b4e40d50b5711957f142878cfa0f28e054aa0ebdfc3fd137a843f74ed3"
 dependencies = [
  "proc-macro2",
  "pyo3-macros-backend",
@@ -174,10 +180,11 @@ dependencies = [
 
 [[package]]
 name = "pyo3-macros-backend"
-version = "0.19.2"
+version = "0.20.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "947dc12175c254889edc0c02e399476c2f652b4b9ebd123aa655c224de259536"
+checksum = "0fc910d4851847827daf9d6cdd4a823fbdaab5b8818325c5e97a86da79e8881f"
 dependencies = [
+ "heck",
  "proc-macro2",
  "quote",
  "syn",
@@ -215,9 +222,9 @@ checksum = "62bb4feee49fdd9f707ef802e22365a35de4b7b299de4763d44bfea899442ff9"
 
 [[package]]
 name = "syn"
-version = "1.0.109"
+version = "2.0.32"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "72b64191b275b66ffe2469e8af2c1cfe3bafa67b529ead792a6d0160888b4237"
+checksum = "239814284fd6f1a4ffe4ca893952cdd93c224b6a1571c9a9eadd670295c0c9e2"
 dependencies = [
  "proc-macro2",
  "quote",
@@ -238,9 +245,9 @@ checksum = "301abaae475aa91687eb82514b328ab47a211a533026cb25fc3e519b86adfc3c"
 
 [[package]]
 name = "unindent"
-version = "0.1.11"
+version = "0.2.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "e1766d682d402817b5ac4490b3c3002d91dfa0d22812f341609f97b08757359c"
+checksum = "c7de7d73e1754487cb58364ee906a499937a0dfabd86bcb980fa99ec8c8fa2ce"
 
 [[package]]
 name = "vcpkg"
diff --git a/test-crates/license-test/check_installed/check_installed.py b/test-crates/license-test/check_installed/check_installed.py
index 286755e90..a49bb636a 100644
--- a/test-crates/license-test/check_installed/check_installed.py
+++ b/test-crates/license-test/check_installed/check_installed.py
@@ -2,7 +2,7 @@
 
 
 def main():
-    output = check_output(["hello-world"]).decode("utf-8").strip()
+    output = check_output(["license-test"]).decode("utf-8").strip()
     if not output == "Hello, world!":
         raise Exception(output)
     print("SUCCESS")
diff --git a/test-crates/pyo3-mixed-py-subdir/README.md b/test-crates/pyo3-mixed-py-subdir/README.md
index 038375070..a148582ec 100644
--- a/test-crates/pyo3-mixed-py-subdir/README.md
+++ b/test-crates/pyo3-mixed-py-subdir/README.md
@@ -1,6 +1,6 @@
 # pyo3-mixed
 
-A package for testing maturin with a mixed pyo3/python project.
+A package for testing maturin with a mixed pyo3/python project and a non-default package name.
 
 ## Usage
 
@@ -9,8 +9,8 @@ pip install .
 ```
 
 ```python
-import pyo3_mixed
-assert pyo3_mixed.get_42() == 42
+import pyo3_mixed_py_subdir
+assert pyo3_mixed_py_subdir.get_42() == 42
 ```
 
 ## Testing
diff --git a/test-crates/pyo3-mixed-with-path-dep/Cargo.lock b/test-crates/pyo3-mixed-with-path-dep/Cargo.lock
new file mode 100644
index 000000000..278ea1cd0
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/Cargo.lock
@@ -0,0 +1,311 @@
+# This file is automatically @generated by Cargo.
+# It is not intended for manual editing.
+version = 3
+
+[[package]]
+name = "autocfg"
+version = "1.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
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+ "windows_i686_gnu",
+ "windows_i686_msvc",
+ "windows_x86_64_gnu",
+ "windows_x86_64_gnullvm",
+ "windows_x86_64_msvc",
+]
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+
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+
+[[package]]
+name = "windows_x86_64_msvc"
+version = "0.48.0"
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diff --git a/test-crates/pyo3-mixed-with-path-dep/Cargo.toml b/test-crates/pyo3-mixed-with-path-dep/Cargo.toml
new file mode 100644
index 000000000..14a4ecbfc
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/Cargo.toml
@@ -0,0 +1,13 @@
+[package]
+authors = []
+name = "pyo3-mixed-with-path-dep"
+version = "2.1.3"
+edition = "2021"
+
+[dependencies]
+pyo3 = { version = "0.20.0", features = ["extension-module", "generate-import-lib"] }
+some_path_dep = { path = "../some_path_dep" }
+
+[lib]
+name = "pyo3_mixed_with_path_dep"
+crate-type = ["cdylib"]
diff --git a/test-crates/pyo3-mixed-with-path-dep/README.md b/test-crates/pyo3-mixed-with-path-dep/README.md
new file mode 100644
index 000000000..29e76130f
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/README.md
@@ -0,0 +1,30 @@
+# pyo3-mixed
+
+A package for testing maturin with a mixed pyo3/python project.
+
+## Usage
+
+```bash
+pip install .
+```
+
+```python
+import pyo3_mixed_with_path_dep
+assert pyo3_mixed_with_path_dep.get_42() == 42
+```
+
+## Testing
+
+Install tox:
+
+```bash
+pip install tox
+```
+
+Run it:
+
+```bash
+tox
+```
+
+The tests are in `tests/test_pyo3_mixed_with_path_dep.py`, while the configuration is in tox.ini
diff --git a/test-crates/pyo3-mixed-with-path-dep/check_installed/check_installed.py b/test-crates/pyo3-mixed-with-path-dep/check_installed/check_installed.py
new file mode 100755
index 000000000..21d947dfc
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/check_installed/check_installed.py
@@ -0,0 +1,9 @@
+#!/usr/bin/env python3
+import pyo3_mixed_with_path_dep
+
+assert pyo3_mixed_with_path_dep.get_42() == 42, "get_42 did not return 42"
+
+assert pyo3_mixed_with_path_dep.is_half(21, 42), "21 is not half of 42"
+assert not pyo3_mixed_with_path_dep.is_half(21, 73), "21 is half of 63"
+
+print("SUCCESS")
diff --git a/test-crates/pyo3-mixed-with-path-dep/pyo3_mixed_with_path_dep/__init__.py b/test-crates/pyo3-mixed-with-path-dep/pyo3_mixed_with_path_dep/__init__.py
new file mode 100644
index 000000000..54a76f703
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/pyo3_mixed_with_path_dep/__init__.py
@@ -0,0 +1,7 @@
+from .pyo3_mixed_with_path_dep import get_21, add_21, is_half
+
+__all__ = ["get_21", "add_21", "is_half", "get_42"]
+
+
+def get_42() -> int:
+    return add_21(get_21())
diff --git a/test-crates/pyo3-mixed-with-path-dep/pyproject.toml b/test-crates/pyo3-mixed-with-path-dep/pyproject.toml
new file mode 100644
index 000000000..cc54d0ae3
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/pyproject.toml
@@ -0,0 +1,11 @@
+[build-system]
+requires = ["maturin>=1.0,<2.0"]
+build-backend = "maturin"
+
+[project]
+name = "pyo3-mixed-with-path-dep"
+classifiers = [
+    "Programming Language :: Python",
+    "Programming Language :: Rust"
+]
+requires-python = ">=3.7"
diff --git a/test-crates/pyo3-mixed-with-path-dep/src/lib.rs b/test-crates/pyo3-mixed-with-path-dep/src/lib.rs
new file mode 100644
index 000000000..1b7194289
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/src/lib.rs
@@ -0,0 +1,27 @@
+use pyo3::prelude::*;
+use some_path_dep::{add, is_sum};
+
+#[pyfunction]
+fn get_21() -> usize {
+    21
+}
+
+#[pyfunction]
+fn add_21(num: usize) -> usize {
+    add(num, get_21())
+}
+
+#[pyfunction]
+fn is_half(a: usize, b: usize) -> bool {
+    is_sum(a, a, b)
+}
+
+
+#[pymodule]
+fn pyo3_mixed_with_path_dep(_py: Python, m: &PyModule) -> PyResult<()> {
+    m.add_wrapped(wrap_pyfunction!(get_21))?;
+    m.add_wrapped(wrap_pyfunction!(add_21))?;
+    m.add_wrapped(wrap_pyfunction!(is_half))?;
+
+    Ok(())
+}
diff --git a/test-crates/pyo3-mixed-with-path-dep/tests/test_pyo3_mixed_with_path_dep.py b/test-crates/pyo3-mixed-with-path-dep/tests/test_pyo3_mixed_with_path_dep.py
new file mode 100644
index 000000000..d77884fe8
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/tests/test_pyo3_mixed_with_path_dep.py
@@ -0,0 +1,7 @@
+#!/usr/bin/env python3
+
+import pyo3_mixed_with_path_dep
+
+
+def test_get_42():
+    assert pyo3_mixed_with_path_dep.get_42() == 42
diff --git a/test-crates/pyo3-mixed-with-path-dep/tox.ini b/test-crates/pyo3-mixed-with-path-dep/tox.ini
new file mode 100644
index 000000000..421774193
--- /dev/null
+++ b/test-crates/pyo3-mixed-with-path-dep/tox.ini
@@ -0,0 +1,7 @@
+[tox]
+envlist = py36,py37,py38
+isolated_build = True
+
+[testenv]
+deps = pytest
+commands = pytest tests/
diff --git a/tests/run.rs b/tests/run.rs
index f85c00198..dad1c68dd 100644
--- a/tests/run.rs
+++ b/tests/run.rs
@@ -64,6 +64,16 @@ fn develop_pyo3_mixed_submodule() {
     ));
 }
 
+#[test]
+fn develop_pyo3_mixed_with_path_dep() {
+    handle_result(develop::test_develop(
+        "test-crates/pyo3-mixed-with-path-dep",
+        None,
+        "develop-pyo3-mixed-with-path-dep",
+        false,
+    ));
+}
+
 #[test]
 fn develop_pyo3_mixed_implicit() {
     handle_result(develop::test_develop(
@@ -239,6 +249,17 @@ fn integration_pyo3_mixed_submodule() {
     ));
 }
 
+#[test]
+fn integration_pyo3_mixed_with_path_dep() {
+    handle_result(integration::test_integration(
+        "test-crates/pyo3-mixed-with-path-dep",
+        None,
+        "integration-pyo3-mixed-with-path-dep",
+        false,
+        None,
+    ));
+}
+
 #[test]
 fn integration_pyo3_mixed_implicit() {
     handle_result(integration::test_integration(