diff --git a/src/nimble.nim b/src/nimble.nim
index 883468a..0af471e 100644
--- a/src/nimble.nim
+++ b/src/nimble.nim
@@ -615,16 +615,28 @@ proc listPaths(options: Options) =
       if kind != pcDir or not path.startsWith(options.getPkgsDir / name):
         continue
 
-      let
-        nimbleFile = path / name.addFileExt("nimble")
-        hasSpec = nimbleFile.existsFile
+      var nimbleFile = path / name.addFileExt("nimble")
+      var nimbleLinkTargetPath: string
+      if not nimbleFile.existsFile:
+        let nimbleLinkFile = path / name.addFileExt("nimble-link")
+        if fileExists(nimbleLinkFile):
+          let lnk = readNimbleLink(nimbleLinkFile)
+          nimbleFile = lnk.nimbleFilePath
+          nimbleLinkTargetPath = lnk.packageDir
 
-      if hasSpec:
+      if nimbleFile.existsFile:
         var pkgInfo = getPkgInfo(path, options)
         var v: VersionAndPath
         v.version = newVersion(pkgInfo.specialVersion)
-        v.path = options.getPkgsDir / (pkgInfo.name & '-' & pkgInfo.specialVersion)
-        installed.add(v)
+        if nimbleLinkTargetPath.len == 0:
+          v.path = options.getPkgsDir / (pkgInfo.name & '-' & pkgInfo.specialVersion)
+          installed.add(v)
+        else:
+          # If we have a nimble-developed package, this is really the path we're
+          # looking for.
+          v.path = nimbleLinkTargetPath
+          installed = @[v]
+          break
       else:
         display("Warning:", "No .nimble file found for " & path, Warning,
                 MediumPriority)
@@ -865,9 +877,9 @@ proc developFromDir(dir: string, options: Options) =
   # need to be read. This will mean that users will need to re-run
   # `nimble develop` if they change their `srcDir` but I think it's a worthy
   # compromise.
-  let contents = pkgInfo.myPath & "\n" & pkgInfo.getRealDir()
   let nimbleLinkPath = pkgDestDir / pkgInfo.name.addFileExt("nimble-link")
-  writeFile(nimbleLinkPath, contents)
+  writeNimbleLink(nimbleLinkPath,
+    NimbleLink(nimbleFilePath: pkgInfo.myPath, packageDir: pkgInfo.getRealDir()))
 
   # Save a nimblemeta.json file.
   saveNimbleMeta(pkgDestDir, "file://" & dir, vcsRevisionInDir(dir),
diff --git a/src/nimblepkg/packageinfo.nim b/src/nimblepkg/packageinfo.nim
index 85821d5..fecdae0 100644
--- a/src/nimblepkg/packageinfo.nim
+++ b/src/nimblepkg/packageinfo.nim
@@ -27,6 +27,10 @@ type
   MetaData* = object
     url*: string
 
+  NimbleLink* = object
+    nimbleFilePath*: string
+    packageDir*: string
+
 proc initPackageInfo*(path: string): PackageInfo =
   result.myPath = path
   result.specialVersion = ""
@@ -141,6 +145,15 @@ proc readMetaData*(path: string): MetaData =
   let jsonmeta = parseJson(cont)
   result.url = jsonmeta["url"].str
 
+proc readNimbleLink*(nimbleLinkPath: string): NimbleLink =
+  let s = readFile(nimbleLinkPath).splitLines()
+  result.nimbleFilePath = s[0]
+  result.packageDir = s[1]
+
+proc writeNimbleLink*(nimbleLinkPath: string, contents: NimbleLink) =
+  let c = contents.nimbleFilePath & "\n" & contents.packageDir
+  writeFile(nimbleLinkPath, c)
+
 proc needsRefresh*(options: Options): bool =
   ## Determines whether a ``nimble refresh`` is needed.
   ##
@@ -298,8 +311,7 @@ proc findNimbleFile*(dir: string; error: bool): string =
 
   if result.splitFile.ext == ".nimble-link":
     # Return the path of the real .nimble file.
-    let lines = readFile(result).splitLines()
-    result = lines[0]
+    result = readNimbleLink(result).nimbleFilePath
     if not fileExists(result):
       raiseNimbleError("The .nimble-link file is pointing to a missing" &
                        " file: " & result)
diff --git a/tests/tester.nim b/tests/tester.nim
index 582e5ac..51328ea 100644
--- a/tests/tester.nim
+++ b/tests/tester.nim
@@ -560,6 +560,17 @@ suite "develop feature":
       let (_, exitCode) = execNimble("develop", "-y", url)
       check exitCode == QuitSuccess
 
+  test "nimble path points to develop":
+    cd "develop/srcdirtest":
+      var (output, exitCode) = execNimble("develop")
+      checkpoint output
+      check exitCode == QuitSuccess
+
+      (output, exitCode) = execNimble("path", "srcdirtest")
+      checkpoint output
+      check exitCode == QuitSuccess
+      check output.strip() == getCurrentDir() / "src"
+
 suite "test command":
   test "Runs passing unit tests":
     cd "testCommand/testsPass":