diff --git a/README.md b/README.md
--- a/README.md
+++ b/README.md
@@ -57,7 +57,9 @@
 It doesn't matter what Cabal version you use together with haskell-packages, but
 if you want to invoke a haskell-packages compiler from Cabal (see
 [Usage](#usage)), you need to build our [fork of Cabal][Cabal]. Eventually it
-will be merged into Cabal.
+will be merged into Cabal. If you are using version `v0.1` of haskell-packages
+(and not the `master` branch), then use the tag `haskell-packages-0.1` of the
+forked Cabal repository.
 
 [hse]: https://github.com/haskell-suite/haskell-src-exts
 [Cabal]: https://github.com/feuerbach/Cabal
diff --git a/haskell-packages.cabal b/haskell-packages.cabal
--- a/haskell-packages.cabal
+++ b/haskell-packages.cabal
@@ -2,16 +2,16 @@
 -- documentation, see http://haskell.org/cabal/users-guide/
 
 name:                haskell-packages
-version:             0.1
+version:             0.2
 synopsis:            Haskell suite library for package management and integration with Cabal
-description:         See <http://haskell-suite.github.io/haskell-packages/>
+description:         See <http://documentup.com/haskell-suite/haskell-packages>
 license:             MIT
 license-file:        LICENSE
 author:              Roman Cheplyaka
 maintainer:          Roman Cheplyaka <roma@ro-che.info>
 copyright:           (c) Roman Cheplyaka 2012
 category:            Distribution
-homepage:            http://haskell-suite.github.io/haskell-packages/
+homepage:            http://documentup.com/haskell-suite/haskell-packages
 bug-reports:         https://github.com/haskell-suite/haskell-packages/issues
 build-type:          Simple
 cabal-version:       >=1.10
@@ -25,7 +25,7 @@
 source-repository this
   type:     git
   location: git://github.com/haskell-suite/haskell-packages.git
-  tag:      v0.1
+  tag:      v0.2
 
 library
   default-language:    Haskell2010
diff --git a/src/Distribution/HaskellSuite/Cabal.hs b/src/Distribution/HaskellSuite/Cabal.hs
--- a/src/Distribution/HaskellSuite/Cabal.hs
+++ b/src/Distribution/HaskellSuite/Cabal.hs
@@ -142,16 +142,21 @@
   compilerCommand =
     command "compile" (info compiler idm)
   compiler =
-    (\srcDirs buildDir lang exts cppOpts dbStack pkgids mods ->
-        Compiler.compile t buildDir lang exts cppOpts dbStack pkgids =<< findModules srcDirs mods) <$>
+    (\srcDirs buildDir lang exts cppOpts pkg dbStack deps mods ->
+        Compiler.compile t buildDir lang exts cppOpts pkg dbStack deps =<< findModules srcDirs mods) <$>
       (many $ strOption (short 'i' <> metavar "PATH")) <*>
       (strOption (long "build-dir" <> metavar "PATH") <|> pure ".") <*>
       (optional $ classifyLanguage <$> strOption (short 'G' <> metavar "language")) <*>
       (many $ parseExtension <$> strOption (short 'X' <> metavar "extension")) <*>
       cppOptsParser <*>
+      (nullOption (long "package-name" <> metavar "NAME-VERSION" <> reader pkgNameReader)) <*>
       pkgDbStackParser <*>
       (many $ InstalledPackageId <$> strOption (long "package-id")) <*>
       arguments str (metavar "MODULE")
+    where
+      pkgNameReader =
+        maybe (Left $ ErrorMsg "invalid package name") Right .
+        simpleParse
 
 data ModuleNotFound = ModuleNotFound String
   deriving Typeable
diff --git a/src/Distribution/HaskellSuite/Compiler.hs b/src/Distribution/HaskellSuite/Compiler.hs
--- a/src/Distribution/HaskellSuite/Compiler.hs
+++ b/src/Distribution/HaskellSuite/Compiler.hs
@@ -41,13 +41,14 @@
 
 -- | Compilation function
 type CompileFn
-  =  FilePath
-  -> Maybe Language
-  -> [Extension]
-  -> CpphsOptions
-  -> PackageDBStack
-  -> [InstalledPackageId]
-  -> [FilePath]
+  =  FilePath -- ^ build directory
+  -> Maybe Language -- ^ optional default language
+  -> [Extension] -- ^ default extensions
+  -> CpphsOptions -- ^ CPP options
+  -> PackageId -- ^ name and version of the package being compiled
+  -> PackageDBStack -- ^ package db stack to use
+  -> [InstalledPackageId] -- ^ dependencies
+  -> [FilePath] -- ^ list of files to compile
   -> IO ()
 
 -- | An abstraction over a Haskell compiler.
diff --git a/src/Distribution/HaskellSuite/Packages.hs b/src/Distribution/HaskellSuite/Packages.hs
--- a/src/Distribution/HaskellSuite/Packages.hs
+++ b/src/Distribution/HaskellSuite/Packages.hs
@@ -26,7 +26,23 @@
   , StandardDB(..)
   , IsDBName(..)
 
-  -- * Auxiliary functions
+  -- * Relative paths in package databases
+  -- | Traditionally, the paths in package databases are absolute.
+  --
+  -- haskell-packages allows relative file paths in databases, which is
+  -- useful in some cases (e.g. relocatable global package database).
+  --
+  -- By default, 'readPackageDB' (for 'StandardDB') treats relative paths
+  -- as being relative to the database path.
+  --
+  -- However, Cabal still passes absolute file names, and by default
+  -- 'writePackageDB' stores them verbatim. To change this, use
+  -- 'makePkgInfoRelative' in your implementation of 'writePackageDB'.
+  , makePkgInfoRelative
+  , makePkgInfoAbsolute
+  , mapPaths
+
+  -- * Direct database manipulation
   -- | 'writeDB' and 'readDB' perform (de)serialization of a package
   -- database using a simple JSON encoding. You may use these to implement
   -- 'writePackageDB' and 'readPackageDB' for your own databases.
@@ -62,6 +78,8 @@
 import Distribution.Simple.Compiler (PackageDB(..))
 import Distribution.License (License(..))
 import Distribution.ModuleName(ModuleName)
+import Distribution.Simple.Utils
+import Distribution.Verbosity
 
 --------------
 -- Querying --
@@ -189,11 +207,44 @@
 instance IsDBName name => IsPackageDB (StandardDB name) where
   dbName = retag (getDBName :: Tagged name String)
 
-  readPackageDB init (StandardDB db) = readDB init db
+  readPackageDB init (StandardDB db) =
+    map (makePkgInfoAbsolute (dropFileName db)) <$> readDB init db
   writePackageDB (StandardDB db) = writeDB db
   globalDB = return Nothing
   dbFromPath path = return $ StandardDB path
 
+---------------------------------
+-- Absolute and relative paths --
+---------------------------------
+
+-- | Make all paths in the package info relative to the given base
+-- directory.
+makePkgInfoRelative :: FilePath -> Info.InstalledPackageInfo -> Info.InstalledPackageInfo
+makePkgInfoRelative base info =
+  mapPaths (makeRelative base) info
+
+-- | Make all relative paths in the package info absolute, interpreting
+-- them relative to the given base directory.
+makePkgInfoAbsolute :: FilePath -> Info.InstalledPackageInfo -> Info.InstalledPackageInfo
+makePkgInfoAbsolute base info =
+  flip mapPaths info $ \f ->
+    if isRelative f
+      then base </> f
+      else f
+
+-- | Apply a given function to all file paths contained in the package info
+mapPaths
+  :: (FilePath -> FilePath)
+  -> (Info.InstalledPackageInfo -> Info.InstalledPackageInfo)
+mapPaths f info = info
+  { Info.importDirs = map f (Info.importDirs info)
+  , Info.libraryDirs = map f (Info.libraryDirs info)
+  , Info.includeDirs = map f (Info.includeDirs info)
+  , Info.frameworkDirs = map f (Info.frameworkDirs info)
+  , Info.haddockInterfaces = map f (Info.haddockInterfaces info)
+  , Info.haddockHTMLs = map f (Info.haddockHTMLs info)
+  }
+
 -------------------------
 -- Auxiliary functions --
 -------------------------
@@ -221,6 +272,7 @@
 initDB path = do
   dbExists <- doesFileExist path
   unless dbExists $ do
+    createDirectoryIfMissingVerbose silent True (dropFileName path)
     writeDB path []
 
 haskellPackagesDir :: IO FilePath