diff --git a/newt/builder/build.go b/newt/builder/build.go
index 7a25e76b00..3f3a8a4233 100644
--- a/newt/builder/build.go
+++ b/newt/builder/build.go
@@ -56,6 +56,7 @@ type Builder struct {
 	linkerScripts    []string
 	buildName        string
 	linkElf          string
+	workDir          string
 	injectedSettings map[string]string
 }
 
@@ -64,7 +65,8 @@ func NewBuilder(
 	buildName string,
 	rpkgs []*resolve.ResolvePackage,
 	apiMap map[string]*resolve.ResolvePackage,
-	cfg syscfg.Cfg) (*Builder, error) {
+	cfg syscfg.Cfg,
+	workDir string) (*Builder, error) {
 
 	b := &Builder{
 		PkgMap: make(map[*resolve.ResolvePackage]*BuildPackage, len(rpkgs)),
@@ -74,6 +76,7 @@ func NewBuilder(
 		apiMap:           make(map[string]*BuildPackage, len(apiMap)),
 		linkElf:          "",
 		targetBuilder:    t,
+		workDir:          workDir,
 		injectedSettings: map[string]string{},
 	}
 
diff --git a/newt/builder/buildpackage.go b/newt/builder/buildpackage.go
index a679664753..0b112872f7 100644
--- a/newt/builder/buildpackage.go
+++ b/newt/builder/buildpackage.go
@@ -109,9 +109,13 @@ func (bpkg *BuildPackage) recursiveIncludePaths(
 }
 
 // Replaces instances of "@<repo-name>" with repo paths.
-func expandFlags(flags []string) {
+func expandFlags(b *Builder, flags []string) {
+	m := map[string]string{}
+	m["bin"] = b.AppPath()
+	m["user"] = b.WorkPath()
+
 	for i, f := range flags {
-		newFlag, changed := newtutil.ReplaceRepoDesignators(f)
+		newFlag, changed := newtutil.ReplaceRepoDesignators(f, m)
 		if changed {
 			flags[i] = newFlag
 		}
@@ -148,19 +152,19 @@ func (bpkg *BuildPackage) CompilerInfo(
 	// paths.
 	ci.Cflags, err = bpkg.rpkg.Lpkg.PkgY.GetValStringSlice("pkg.cflags", settings)
 	util.OneTimeWarningError(err)
-	expandFlags(ci.Cflags)
+	expandFlags(b, ci.Cflags)
 
 	ci.CXXflags, err = bpkg.rpkg.Lpkg.PkgY.GetValStringSlice("pkg.cxxflags", settings)
 	util.OneTimeWarningError(err)
-	expandFlags(ci.CXXflags)
+	expandFlags(b, ci.CXXflags)
 
 	ci.Lflags, err = bpkg.rpkg.Lpkg.PkgY.GetValStringSlice("pkg.lflags", settings)
 	util.OneTimeWarningError(err)
-	expandFlags(ci.Lflags)
+	expandFlags(b, ci.Lflags)
 
 	ci.Aflags, err = bpkg.rpkg.Lpkg.PkgY.GetValStringSlice("pkg.aflags", settings)
 	util.OneTimeWarningError(err)
-	expandFlags(ci.Aflags)
+	expandFlags(b, ci.Aflags)
 
 	// Package-specific injected settings get specified as C flags on the
 	// command line.
diff --git a/newt/builder/paths.go b/newt/builder/paths.go
index 46b61c6620..2445ee8259 100644
--- a/newt/builder/paths.go
+++ b/newt/builder/paths.go
@@ -215,6 +215,10 @@ func (b *Builder) AppPath() string {
 	return b.PkgBinDir(b.appPkg) + "/"
 }
 
+func (b *Builder) WorkPath() string {
+	return b.workDir
+}
+
 func (b *Builder) TestExePath() string {
 	return TestExePath(b.targetPkg.rpkg.Lpkg.FullName(), b.buildName,
 		b.testPkg.rpkg.Lpkg.FullName(), b.testPkg.rpkg.Lpkg.Type())
diff --git a/newt/builder/targetbuild.go b/newt/builder/targetbuild.go
index 532db09792..d729479697 100644
--- a/newt/builder/targetbuild.go
+++ b/newt/builder/targetbuild.go
@@ -59,6 +59,7 @@ type TargetBuilder struct {
 	LoaderList    interfaces.PackageList
 
 	keyFile          string
+	workDir          string
 	injectedSettings map[string]string
 
 	res *resolve.Resolution
@@ -389,7 +390,7 @@ func (t *TargetBuilder) PrepBuild() error {
 
 	if t.res.LoaderSet != nil {
 		t.LoaderBuilder, err = NewBuilder(t, BUILD_NAME_LOADER,
-			t.res.LoaderSet.Rpkgs, t.res.ApiMap, t.res.Cfg)
+			t.res.LoaderSet.Rpkgs, t.res.ApiMap, t.res.Cfg, t.workDir)
 		if err != nil {
 			return err
 		}
@@ -405,7 +406,7 @@ func (t *TargetBuilder) PrepBuild() error {
 	}
 
 	t.AppBuilder, err = NewBuilder(t, BUILD_NAME_APP, t.res.AppSet.Rpkgs,
-		t.res.ApiMap, t.res.Cfg)
+		t.res.ApiMap, t.res.Cfg, t.workDir)
 	if err != nil {
 		return err
 	}
@@ -541,6 +542,17 @@ func (t *TargetBuilder) autogenKeys() error {
 }
 
 func (t *TargetBuilder) Build() error {
+	workDir, err := makeUserWorkDir()
+	if err != nil {
+		return err
+	}
+	defer func() {
+		log.Debugf("removing user work dir: %s", workDir)
+		os.RemoveAll(workDir)
+	}()
+
+	t.workDir = workDir
+
 	if err := t.PrepBuild(); err != nil {
 		return err
 	}
@@ -558,15 +570,6 @@ func (t *TargetBuilder) Build() error {
 		}
 	}
 
-	workDir, err := makeUserWorkDir()
-	if err != nil {
-		return err
-	}
-	defer func() {
-		log.Debugf("removing user work dir: %s", workDir)
-		os.RemoveAll(workDir)
-	}()
-
 	// Execute the set of pre-build user scripts.
 	if err := t.execPreBuildCmds(workDir); err != nil {
 		return err
diff --git a/newt/newtutil/newtutil.go b/newt/newtutil/newtutil.go
index 751152dab4..ec7977a991 100644
--- a/newt/newtutil/newtutil.go
+++ b/newt/newtutil/newtutil.go
@@ -135,23 +135,34 @@ func FindRepoDesignator(s string) (int, int) {
 	return start, len
 }
 
-func ReplaceRepoDesignators(s string) (string, bool) {
+func ReplaceRepoDesignators(s string, m map[string]string) (string, bool) {
 	start, len := FindRepoDesignator(s)
 	if start == -1 {
 		return s, false
 	}
-	repoName := s[start+1 : start+len]
 
 	proj := interfaces.GetProject()
-	repoPath := proj.FindRepoPath(repoName)
-	if repoPath == "" {
-		return s, false
+	name := s[start+1 : start+len]
+	var path string
+
+	if name[0:1] == "@" {
+		var ok bool
+
+		path, ok = m[name[1:]]
+		if !ok {
+			return s, false
+		}
+	} else {
+		path = proj.FindRepoPath(name)
+		if path == "" {
+			return s, false
+		}
 	}
 
 	// Trim common project base from repo path.
-	relRepoPath := strings.TrimPrefix(repoPath, proj.Path()+"/")
+	relPath := strings.TrimPrefix(path, proj.Path()+"/")
 
-	return s[:start] + relRepoPath + s[start+len:], true
+	return s[:start] + relPath + s[start+len:], true
 }
 
 func BuildPackageString(repoName string, pkgName string) string {