diff --git a/Storage/Hashed/Index.hs b/Storage/Hashed/Index.hs
--- a/Storage/Hashed/Index.hs
+++ b/Storage/Hashed/Index.hs
@@ -50,13 +50,14 @@
                       getFileStatus, fileSize, fileExists )
 import System.IO.MMap( mmapFileForeignPtr, mmapFileByteString, Mode(..) )
 import System.IO( )
-import System.Directory( doesFileExist )
+import System.Directory( doesFileExist, getCurrentDirectory )
 #if mingw32_HOST_OS
 import System.Directory( renameFile )
 import System.FilePath( (<.>) )
 #else
 import System.Directory( removeFile )
 #endif
+import System.FilePath( (</>) )
 
 import Control.Monad( when )
 import Control.Exception.Extensible
@@ -220,6 +221,7 @@
             return (x, size)
 
 data IndexM m = Index { mmap :: (ForeignPtr ())
+                      , basedir :: FilePath
                       , hashtree :: Tree m -> Hash
                       , predicate :: AnchoredPath -> TreeItem m -> Bool }
               | EmptyIndex
@@ -291,7 +293,7 @@
        size <- xlatePeek64 $ iSize item
        let mtime' = modificationTime st
            size' = fromIntegral $ fileSize st
-           readblob = readSegment (BSC.unpack $ iPath item, Nothing)
+           readblob = readSegment (basedir index </> BSC.unpack (iPath item), Nothing)
            exists = fileExists st
            we_changed = mtime /= mtime' || size /= size'
            hash = iHash' item
@@ -329,8 +331,10 @@
 readIndex :: FilePath -> (Tree IO -> Hash) -> IO Index
 readIndex indexpath ht = do
   (mmap_ptr, mmap_size) <- mmapIndex indexpath 0
+  base <- getCurrentDirectory
   return $ if mmap_size == 0 then EmptyIndex
                              else Index { mmap = mmap_ptr
+                                        , basedir = base
                                         , hashtree = ht
                                         , predicate = \_ _ -> True }
 
diff --git a/hashed-storage.cabal b/hashed-storage.cabal
--- a/hashed-storage.cabal
+++ b/hashed-storage.cabal
@@ -1,5 +1,5 @@
 name:          hashed-storage
-version:       0.5
+version:       0.5.1
 synopsis:      Hashed file storage support code.
 
 description:   Support code for reading and manipulating hashed file storage