diff --git a/liquid-platform.cabal b/liquid-platform.cabal
--- a/liquid-platform.cabal
+++ b/liquid-platform.cabal
@@ -1,6 +1,6 @@
 cabal-version:      1.22
 name:               liquid-platform
-version:            0.8.10.2
+version:            0.9.0.2
 synopsis:           A battery-included platform for LiquidHaskell
 description:        A battery-included platform for LiquidHaskell.
 license:            BSD3
@@ -25,31 +25,34 @@
     buildable: False
   else
     buildable: True
-    build-depends:      liquid-base       >= 4.14.1.0 && < 5
-                      , liquid-containers >= 0.6.2.1  && < 0.7
-                      , liquid-prelude    >= 0.8.10.2
-                      , liquid-vector     >= 0.12.1.2 && < 0.13
-                      , liquid-bytestring >= 0.10.0.0 && < 0.11
-                      , liquidhaskell     >= 0.8.10.2
+    build-depends:      liquid-base       >= 4.15.1.0 && < 5
+                      , liquid-containers >= 0.6.4.1  && < 0.7
+                      , liquid-prelude    >= 0.9.0.2
+                      , liquid-vector     >= 0.12.3.1 && < 0.13
+                      , liquid-bytestring >= 0.10.12.1 && < 0.11
+                      , liquidhaskell     >= 0.9.0.2
+                      , filepath
                       , process           >= 1.6.0.0 && < 1.7
                       , cmdargs           >= 0.10    && < 0.11
 
   if flag(devel)
     ghc-options: -Werror
 
+
 executable gradual
   main-is:          src/Gradual.hs
-  build-depends:    base            >= 4.8.1.0 && < 5
+  build-depends:    base            >= 4.15.1.0 && < 5
                   , cmdargs
                   , hscolour
-                  , liquid-fixpoint >= 0.7.0.5
-                  , liquidhaskell   >= 0.8.10.1
+                  , liquid-fixpoint >= 0.9.0.2
+                  , liquidhaskell   >= 0.9.0.2
   default-language: Haskell2010
   buildable:        False
   ghc-options:      -W -threaded
 
   if flag(devel)
     ghc-options: -Werror
+
 
 executable target
   main-is:          src/Target.hs
diff --git a/src/Liquid.hs b/src/Liquid.hs
--- a/src/Liquid.hs
+++ b/src/Liquid.hs
@@ -1,14 +1,22 @@
 {-# LANGUAGE LambdaCase #-}
 
-{-| Calling LiquidHaskell via the source plugin.
-  This executable is a simple wrapper around 'ghc', which gets passed an '-fplugin' option.
--}
+-- Calling LiquidHaskell via the source plugin
+--
+-- This executable is a wrapper around 'ghc', which gets passed an '-fplugin'
+-- option. In addition, it hides all core libraries that might colide with a
+-- package coming from liquid haskell.
+--
+-- The command line options of ghc and liquid haskell are merged together.
+-- This script injects flags -fplugin-opt=LiquidHaskell:--opt for every
+-- argument --opt intended for LiquidHaskell and occurring in the command line.
 
 import Control.Monad
 
-import System.Environment (lookupEnv, getArgs)
+import System.Environment (lookupEnv, getArgs, unsetEnv)
+import System.FilePath ((</>), takeDirectory, takeExtension)
 import System.Process
 import System.Exit
+import Data.Char (toLower)
 import Data.Maybe
 import Data.Either (partitionEithers)
 import Data.Bifunctor
@@ -38,6 +46,18 @@
 helpNeeded :: [String] -> Bool
 helpNeeded = elem "--help"
 
+collectPackageDbsFromGHC_ENVIRONMENT :: IO [FilePath]
+collectPackageDbsFromGHC_ENVIRONMENT = do
+  lookupEnv "GHC_ENVIRONMENT" >>= \case
+    Nothing -> return []
+    Just envFile -> do
+      contents <- readFile envFile
+      return
+        [ takeDirectory envFile </> drop (length pfx) xs
+        | xs <- lines contents
+        , let pfx = "package-db "
+        , isPrefixOf pfx xs
+        ]
 
 main :: IO a
 main = do
@@ -50,18 +70,19 @@
 
   ghcPath <- fromMaybe "ghc" <$> lookupEnv "LIQUID_GHC_PATH"
 
+  packageDbs <- collectPackageDbsFromGHC_ENVIRONMENT
+
   -- Strip targets out of the arguments, so that we can forward them to GHC before they
   -- get intercepted by the LH parser.
-  let (cliArgs, targets)    = partition (isPrefixOf "-") args
+  let (targets, cliArgs)    =
+        partition ((`elem` [".o", ".hs", ".lhs"]) . map toLower . takeExtension) args
   let (ghcArgs, liquidArgs) = partitionArgs cliArgs
 
-  -- NOTE: Typically for the executable we want to recompile everything-everytime so that
-  -- we could always get an "answer" out of LH. However, using `-fforce-recomp` as the default
-  -- is dangerous, because the executable is used also during tests, so runtime is going to be
-  -- badly affected. If users wants to enable recompilation, they would simply pass
-  -- '-fforce-recomp' as a CLI argument.
-
-  let p = proc ghcPath $ [ "-O0"
+  let p = proc ghcPath $
+                         ["-package-env", "-"]
+                         <> concat [ ["-package-db", p] | p <- packageDbs ]
+                         <>
+                         [ "-O0"
                          , "-no-link"
                          , "-fplugin=LiquidHaskell"
                          , "-plugin-package", "liquidhaskell"
@@ -87,4 +108,7 @@
   _ <- getOpts (args \\ ghcArgs)
   unless (helpNeeded args) printLiquidHaskellBanner
 
+  -- Unset GHC_ENVIRONMENT so it doesn't influence ghc. Otherwise it would
+  -- interfere when calling this program with cabal exec.
+  unsetEnv "GHC_ENVIRONMENT"
   withCreateProcess p $ \_mbStdIn _mbStdOut _mbStdErr pHandle -> waitForProcess pHandle >>= exitWith