diff --git a/GhcFlags/Plugin.hs b/GhcFlags/Plugin.hs
--- a/GhcFlags/Plugin.hs
+++ b/GhcFlags/Plugin.hs
@@ -45,24 +45,25 @@
   unless written write
   pure core
 
--- TODO support incremental compilation
---
 -- This only supports ghc being called with directories and home modules. That
 -- means we don't support incremental compilation where ghc is called with
 -- explicit filenames and dependencies. There are cases where the .ghc.flags may
--- get out of date, e.g. adding / removing home modules. To handle those cases
--- we need to detect them and write to a different (per-file) .ghc.flags
--- location. Text editors need to be aware of both kinds of ghc flags files and
--- use the most recent.
+-- get out of date, e.g. adding / removing home modules. The simple solution is
+-- that tools using .ghc.flags should recalculate the home modules if they want
+-- to support incremental compilation.
 write :: (MonadIO m, GHC.HasDynFlags m) => m ()
 write = do
   dflags <- GHC.getDynFlags
   args <- liftIO $ getArgs
+  ghcPath <- liftIO $ lookupEnv "PATH"
 
   -- downstream tools shouldn't use this plugin, or all hell will break loose
   let ghcFlags = unwords $ replace ["-fplugin", "GhcFlags.Plugin"] [] args
       paths = GHC.importPaths dflags
       writeGhcFlags path = writeDifferent (path <> "/.ghc.flags") ghcFlags
+      writeGhcPath path = case ghcPath of
+        Just p -> writeDifferent (path <> "/.ghc.path") p
+        Nothing -> pure ()
       enable = case GHC.hscTarget dflags of
         GHC.HscInterpreted -> False
         GHC.HscNothing -> False
@@ -70,6 +71,7 @@
 
   when enable $ liftIO $ do
     traverse_ writeGhcFlags paths
+    traverse_ writeGhcPath paths
 
 -- Only writes out the file when it will result in changes, and silently fails
 -- on exceptions because the plugin should never interrupt normal ghc work. The
diff --git a/ghcflags.cabal b/ghcflags.cabal
--- a/ghcflags.cabal
+++ b/ghcflags.cabal
@@ -1,17 +1,15 @@
 cabal-version: 2.2
 name:          ghcflags
-version:       1.0.2
+version:       1.0.3
 synopsis:      Dump the ghc flags during compilation
 license:       BSD-2-Clause
 license-file:  LICENSE
 author:        Tseen She
 maintainer:    Tseen She
 copyright:     2019 Tseen She
-bug-reports:   https://gitlab.com/tseenshe/hsinspect/merge_requests
-tested-with:   GHC ^>=8.4.4 || ^>=8.6.5 || ^>=8.8.1
+tested-with:   GHC ^>=8.4.4 || ^>=8.6.5 || ^>=8.8.3
 category:      Building
-description:
-  Generate @.ghc.flags@ files during compilation
+description:   Generate @.ghc.flags@ and @.ghc.path@ files during compilation
 
 source-repository head
   type:     git
@@ -33,5 +31,5 @@
   import:          deps
   hs-source-dirs:  .
 
-  -- cabal-fmt: expand plugin
+  -- cabal-fmt: expand . -LICENSE
   exposed-modules: GhcFlags.Plugin