diff --git a/HsFile.hs b/HsFile.hs
--- a/HsFile.hs
+++ b/HsFile.hs
@@ -2,17 +2,31 @@
 module HsFile (mkHsFile) where
 import Text.ProjectTemplate (createTemplate)
 import Data.Conduit 
-    ( ($$), (=$), runResourceT, ResourceT, ConduitM, awaitForever, yield )
+    ( ($$), (=$), runResourceT, ResourceT, ConduitM, awaitForever, yield, Source )
 import qualified Data.Conduit.List as CL
-import Data.Conduit.Filesystem (traverse, sourceFile)
 import Prelude hiding (FilePath)
 import Filesystem.Path ( FilePath )
 import Filesystem.Path.CurrentOS ( encodeString )
+import qualified Filesystem as F
 import qualified Data.ByteString as BS
 import Control.Monad.IO.Class (liftIO)
 
+traverse :: FilePath -> Source (ResourceT IO) FilePath
+traverse dir = do
+    liftIO (F.listDirectory dir) >>= mapM_ go
+  where
+    go fp = do
+        isFile' <- liftIO $ F.isFile fp
+        if isFile'
+            then yield fp
+            else do
+                isDir <- liftIO $ F.isDirectory fp
+                if isDir
+                    then traverse fp
+                    else return ()
+
 mkHsFile :: IO ()
-mkHsFile = runResourceT $ traverse False "."
+mkHsFile = runResourceT $ traverse "."
         $$ readIt
         =$ createTemplate 
         =$ awaitForever (liftIO . BS.putStr)
diff --git a/yesod-bin.cabal b/yesod-bin.cabal
--- a/yesod-bin.cabal
+++ b/yesod-bin.cabal
@@ -1,5 +1,5 @@
 name:            yesod-bin
-version:         1.2.7.2
+version:         1.2.7.3
 license:         MIT
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>
@@ -90,7 +90,6 @@
                      , warp               >= 1.3.7.5
                      , wai                >= 1.4
                      , data-default-class
-                     , filesystem-conduit >= 1.0          && < 2.0
 
     ghc-options:       -Wall -threaded
     main-is:           main.hs