diff --git a/Network/Wai/Application/Static.hs b/Network/Wai/Application/Static.hs
--- a/Network/Wai/Application/Static.hs
+++ b/Network/Wai/Application/Static.hs
@@ -248,7 +248,7 @@
     cp <- checkPieces folder indices pieces
     case cp of
         Redirect pieces' -> do
-            let loc = S8.pack $ '/' : encodePathInfo pieces' []
+            let loc = S8.pack $ (concatMap (const "../") $ drop 1 pieces) ++ encodePathInfo pieces' []
             return $ W.responseLBS W.status301
                 [ ("Content-Type", "text/plain")
                 , ("Location", loc)
diff --git a/Setup.hs b/Setup.hs
deleted file mode 100644
--- a/Setup.hs
+++ /dev/null
@@ -1,2 +0,0 @@
-import Distribution.Simple
-main = defaultMain
diff --git a/Setup.lhs b/Setup.lhs
new file mode 100644
--- /dev/null
+++ b/Setup.lhs
@@ -0,0 +1,7 @@
+#!/usr/bin/env runhaskell
+
+> module Main where
+> import Distribution.Simple
+
+> main :: IO ()
+> main = defaultMain
diff --git a/wai-app-static.cabal b/wai-app-static.cabal
--- a/wai-app-static.cabal
+++ b/wai-app-static.cabal
@@ -1,5 +1,5 @@
 name:            wai-app-static
-version:         0.0.1
+version:         0.0.1.1
 license:         BSD3
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>