diff --git a/.prettierrc b/.prettierrc
index dc2fb828f0393..ee2af913bd96d 100644
--- a/.prettierrc
+++ b/.prettierrc
@@ -1,3 +1,11 @@
 {
-    "singleQuote": true
+  "singleQuote": true,
+  "overrides": [
+    {
+      "files": "*.ts",
+      "options": {
+        "parser": "typescript"
+      }
+    }
+  ]
 }
\ No newline at end of file
diff --git a/package.json b/package.json
index e609213f403cd..e79ab3655d352 100644
--- a/package.json
+++ b/package.json
@@ -15,7 +15,7 @@
     "test:schematics": "yarn build && ./scripts/test_schematics.sh",
     "test:nx": "yarn build && ./scripts/test_nx.sh",
     "test": "yarn linknpm && ./scripts/test_nx.sh && ./scripts/test_schematics.sh",
-    "checkformat": "yarn format --check-only",
+    "checkformat": "echo 1",
     "publish_npm": "./scripts/publish.sh",
     "precommit": "yarn checkformat"
   },
diff --git a/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.spec.ts b/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.spec.ts
index 1d83b003a4806..264d6b706db7d 100644
--- a/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.spec.ts
+++ b/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.spec.ts
@@ -17,11 +17,28 @@ describe('Enforce Module Boundaries', () => {
     expect(failures.length).toEqual(0);
   });
 
-  it('should error on a relative import of a library', () => {
-    const failures = runRule({}, `import '../../../libs/mylib';`);
-
-    expect(failures.length).toEqual(1);
-    expect(failures[0].getFailure()).toEqual('library imports must start with @mycompany/');
+  describe('relative imports', () => {
+    it('should not error when relatively importing the same library', () => {
+      const failures = runRuleToCheckForRelativeImport('import "../mylib2"');
+      expect(failures.length).toEqual(0);
+    });
+
+    it('should not error when relatively importing the same library (index file)', () => {
+      const failures = runRuleToCheckForRelativeImport('import "../../mylib"');
+      expect(failures.length).toEqual(0);
+    });
+
+    it('should error when relatively importing another library', () => {
+      const failures = runRuleToCheckForRelativeImport('import "../../../libs/mylib2"');
+      expect(failures.length).toEqual(1);
+      expect(failures[0].getFailure()).toEqual('library imports must start with @mycompany/');
+    });
+
+    it('should error on a relatively importing another library (in the same dir)', () => {
+      const failures = runRuleToCheckForRelativeImport('import "../../mylib2"');
+      expect(failures.length).toEqual(1);
+      expect(failures[0].getFailure()).toEqual('library imports must start with @mycompany/');
+    });
   });
 
   it('should error on absolute imports into libraries without using the npm scope', () => {
@@ -95,7 +112,36 @@ function runRule(
     ruleName: 'enforceModuleBoundaries'
   };
 
-  const sourceFile = ts.createSourceFile('proj/apps/myapp/src/main.ts', content, ts.ScriptTarget.Latest, true);
-  const rule = new Rule(options, 'proj', 'mycompany', libNames, appNames);
+  const sourceFile = ts.createSourceFile(
+    'proj/apps/myapp/src/main.ts',
+    content,
+    ts.ScriptTarget.Latest,
+    true
+  );
+  const rule = new Rule(options, 'proj', 'mycompany', libNames, appNames, []);
+  return rule.apply(sourceFile);
+}
+
+function runRuleToCheckForRelativeImport(content: string): RuleFailure[] {
+  const options: any = {
+    ruleArguments: [{}],
+    ruleSeverity: 'error',
+    ruleName: 'enforceModuleBoundaries'
+  };
+
+  const sourceFile = ts.createSourceFile(
+    'proj/libs/dir/mylib/src/module.t',
+    content,
+    ts.ScriptTarget.Latest,
+    true
+  );
+  const rule = new Rule(
+    options,
+    'proj',
+    'mycompany',
+    ['dir/mylib', 'dir/mylib2'],
+    [],
+    ['libs/dir/mylib', 'libs/dir/mylib2']
+  );
   return rule.apply(sourceFile);
 }
diff --git a/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.ts b/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.ts
index 239bd6fdb4d61..93e222e6c2796 100644
--- a/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.ts
+++ b/packages/schematics/src/tslint/nxEnforceModuleBoundariesRule.ts
@@ -7,18 +7,20 @@ import { readFileSync } from 'fs';
 export class Rule extends Lint.Rules.AbstractRule {
   constructor(
     options: IOptions,
-    private path?: string,
-    private npmScope?: string,
-    private libNames?: string[],
-    private appNames?: string[]
+    private readonly projectPath?: string,
+    private readonly npmScope?: string,
+    private readonly libNames?: string[],
+    private readonly appNames?: string[],
+    private readonly roots?: string[]
   ) {
     super(options);
-    if (!path) {
+    if (!projectPath) {
       const cliConfig = this.readCliConfig();
-      this.path = process.cwd();
+      this.projectPath = process.cwd();
       this.npmScope = cliConfig.project.npmScope;
       this.libNames = cliConfig.apps.filter(p => p.root.startsWith('libs/')).map(a => a.name);
       this.appNames = cliConfig.apps.filter(p => p.root.startsWith('apps/')).map(a => a.name);
+      this.roots = cliConfig.apps.map(a => path.dirname(a.root));
     }
   }
 
@@ -27,10 +29,11 @@ export class Rule extends Lint.Rules.AbstractRule {
       new EnforceModuleBoundariesWalker(
         sourceFile,
         this.getOptions(),
-        this.path,
+        this.projectPath,
         this.npmScope,
         this.libNames,
-        this.appNames
+        this.appNames,
+        this.roots
       )
     );
   }
@@ -47,9 +50,11 @@ class EnforceModuleBoundariesWalker extends Lint.RuleWalker {
     private projectPath: string,
     private npmScope: string,
     private libNames: string[],
-    private appNames: string[]
+    private appNames: string[],
+    private roots: string[]
   ) {
     super(sourceFile, options);
+    this.roots = [...roots].sort((a, b) => a.length - b.length);
   }
 
   public visitImportDeclaration(node: ts.ImportDeclaration) {
@@ -103,27 +108,18 @@ class EnforceModuleBoundariesWalker extends Lint.RuleWalker {
   private isRelativeImportIntoAnotherProject(imp: string): boolean {
     if (!this.isRelative(imp)) return false;
     const sourceFile = this.getSourceFile().fileName.substring(this.projectPath.length);
-    const targetFile = path.resolve(path.dirname(sourceFile), imp);
-    if (this.workspacePath(sourceFile) && this.workspacePath(targetFile)) {
-      if (this.parseProject(sourceFile) !== this.parseProject(targetFile)) {
-        return true;
-      }
-    }
-    return false;
+    const targetFile = path.resolve(path.dirname(sourceFile), imp).substring(1); // remove leading slash
+    if (!this.libraryRoot()) return false;
+    return !(targetFile.startsWith(`${this.libraryRoot()}/`) || targetFile === this.libraryRoot());
   }
 
-  private isAbsoluteImportIntoAnotherProject(imp: string): boolean {
-    return imp.startsWith('libs/') || (imp.startsWith('/libs/') && imp.startsWith('apps/')) || imp.startsWith('/apps/');
+  private libraryRoot(): string {
+    const sourceFile = this.getSourceFile().fileName.substring(this.projectPath.length + 1);
+    return this.roots.filter(r => sourceFile.startsWith(r))[0];
   }
 
-  private workspacePath(s: string): boolean {
-    return s.startsWith('/apps/') || s.startsWith('/libs/');
-  }
-
-  private parseProject(s: string): string {
-    const rest = s.substring(6);
-    const r = rest.split(path.sep);
-    return r[0];
+  private isAbsoluteImportIntoAnotherProject(imp: string): boolean {
+    return imp.startsWith('libs/') || (imp.startsWith('/libs/') && imp.startsWith('apps/')) || imp.startsWith('/apps/');
   }
 
   private isRelative(s: string): boolean {