diff --git a/compiler/cli/src/org/jetbrains/jet/cli/KotlinCompiler.java b/compiler/cli/src/org/jetbrains/jet/cli/KotlinCompiler.java
index 09b5e719567..dec77e75f06 100644
--- a/compiler/cli/src/org/jetbrains/jet/cli/KotlinCompiler.java
+++ b/compiler/cli/src/org/jetbrains/jet/cli/KotlinCompiler.java
@@ -154,8 +154,9 @@ public class KotlinCompiler {
                 boolean noErrors;
                 if (arguments.module != null) {
                     List<Module> modules = CompileEnvironmentUtil.loadModuleScript(arguments.module, configuration.getMessageCollector());
+                    File directory = new File(arguments.module).getParentFile();
                     noErrors = KotlinToJVMBytecodeCompiler.compileModules(configuration, modules,
-                                                                          arguments.module, arguments.jar, arguments.outputDir,
+                                                                          directory, arguments.jar, arguments.outputDir,
                                                                           arguments.includeRuntime);
                 }
                 else {
diff --git a/compiler/cli/src/org/jetbrains/jet/compiler/KotlinToJVMBytecodeCompiler.java b/compiler/cli/src/org/jetbrains/jet/compiler/KotlinToJVMBytecodeCompiler.java
index 8244b165dd1..da6fbd71787 100644
--- a/compiler/cli/src/org/jetbrains/jet/compiler/KotlinToJVMBytecodeCompiler.java
+++ b/compiler/cli/src/org/jetbrains/jet/compiler/KotlinToJVMBytecodeCompiler.java
@@ -67,7 +67,7 @@ public class KotlinToJVMBytecodeCompiler {
     public static ClassFileFactory compileModule(
             CompileEnvironmentConfiguration configuration,
             Module moduleBuilder,
-            String directory
+            File directory
     ) {
         if (moduleBuilder.getSourceFiles().isEmpty()) {
             throw new CompileEnvironmentException("No source files where defined");
@@ -103,12 +103,11 @@ public class KotlinToJVMBytecodeCompiler {
 
             @NotNull List<Module> modules,
 
-            @NotNull String moduleScriptFile,
+            @NotNull File directory,
             @Nullable String jarPath,
             @Nullable String outputDir,
             boolean jarRuntime) {
 
-        final String directory = new File(moduleScriptFile).getParent();
         for (Module moduleBuilder : modules) {
             // TODO: this should be done only once for the environment
             if (configuration.getCompilerDependencies().getRuntimeJar() != null) {