diff --git a/src/Prefix.jl b/src/Prefix.jl
index 1d9e61e4..550ae934 100644
--- a/src/Prefix.jl
+++ b/src/Prefix.jl
@@ -260,14 +260,16 @@ function setup(source::SetupSource{GitSource}, targetdir, verbose)
     # Chop off the `.git` at the end of the source.path
     repo_dir = joinpath(targetdir, basename(source.path)[1:end-4])
     if verbose
-        @info "Cloning $(basename(source.path)) to $(basename(targetdir))..."
+        # Need to strip the trailing separator
+        path = isdirpath(targetdir) ? dirname(targetdir) : targetdir
+        @info "Cloning $(basename(source.path)) to $(basename(repo_dir))..."
     end
     LibGit2.with(LibGit2.clone(source.path, repo_dir)) do repo
         LibGit2.checkout!(repo, source.hash)
     end
 end
 
-function setup(source::SetupSource{ArchiveSource}, targetdir, verbose)
+function setup(source::SetupSource{ArchiveSource}, targetdir, verbose; tar_flags = verbose ? "xvof" : "xof")
     mkpath(targetdir)
     # Extract with host tools because it is _much_ faster on e.g. OSX.
     # If this becomes a compatibility problem, we'll just have to install
@@ -277,7 +279,6 @@ function setup(source::SetupSource{ArchiveSource}, targetdir, verbose)
             if verbose
                 @info "Extracting tarball $(basename(source.path))..."
             end
-            tar_flags = verbose ? "xvof" : "xof"
             run(`tar -$(tar_flags) $(source.path)`)
         elseif endswith(source.path, ".zip")
             if verbose
diff --git a/test/prefix.jl b/test/prefix.jl
index 7cbe9bc0..bfee0e5a 100644
--- a/test/prefix.jl
+++ b/test/prefix.jl
@@ -185,7 +185,7 @@ end
         file = joinpath(dir, "file.txt")
         file_gz = file * ".gz"
         write(file, lorem)
-        compress_dir(dir)
+        @test_logs (:info, r"Compressing files in") compress_dir(dir; verbose=true)
         # Check that there is only the compressed file
         @test readdir(dir) == [basename(file_gz)]
         # Decompress it
diff --git a/test/sources.jl b/test/sources.jl
index a2882475..754aa782 100644
--- a/test/sources.jl
+++ b/test/sources.jl
@@ -1,6 +1,6 @@
 using Test
 using BinaryBuilderBase
-using BinaryBuilderBase: coerce_source, sourcify, SetupSource
+using BinaryBuilderBase: coerce_source, sourcify, SetupSource, setup
 using JSON
 
 @testset "Sources" begin
@@ -16,29 +16,50 @@ using JSON
     @test SetupSource("https://github.com/jedisct1/libsodium.git", "", "", "")       isa SetupSource{GitSource}
     @test SetupSource("https://curl.haxx.se/ca/cacert-2020-01-01.pem", "", "", "")   isa SetupSource{FileSource}
 
-    @testset "Download" begin
+    @testset "Download and setup" begin
         mktempdir() do dir
-            as = ArchiveSource("https://github.com/ralna/ARCHDefs/archive/v2.0.3x.tar.gz", "6583e27f84338447767bbdf4335514c8836ae4ad54f5e66280307e8b57189cff")
-            # Download the source
-            if VERSION >= v"1.4"
-                @test_logs (:info, r"^No hash cache found") (:info, r"Calculated hash") download_source(as; verbose = true, downloads_dir = dir)
-            else
-                @test_logs (:info, r"^Downloading") (:info, r"^No hash cache found") (:info, r"Calculated hash") download_source(as; verbose = true, downloads_dir = dir)
+            cd(dir) do
+                as = ArchiveSource("https://github.com/ralna/ARCHDefs/archive/v2.0.3x.tar.gz", "6583e27f84338447767bbdf4335514c8836ae4ad54f5e66280307e8b57189cff")
+                # Download the source
+                sas = if VERSION >= v"1.4"
+                    @test_logs (:info, r"^No hash cache found") (:info, r"Calculated hash") download_source(as; verbose = true, downloads_dir = dir)
+                else
+                    @test_logs (:info, r"^Downloading") (:info, r"^No hash cache found") (:info, r"Calculated hash") download_source(as; verbose = true, downloads_dir = dir)
+                end
+                # Check that the cache is found
+                @test @test_logs (:info, r"^Destination file .* already exists") (:info, r"Hash cache is consistent, returning true") download_source(as; verbose = true, downloads_dir = dir) == sas
+                fs = FileSource("https://github.com/ralna/ARCHDefs/archive/v2.0.3x.tar.gz", "6583e27f84338447767bbdf4335514c8836ae4ad54f5e66280307e8b57189cff"; filename = "file-source.tar.gz")
+                # Re-fetch the same tarball, as a `FileSource` this time
+                sfs = @test_logs (:info, r"^Destination file .* already exists") (:info, r"Hash cache is consistent, returning true") download_source(fs; verbose = true, downloads_dir = dir)
+                gs = GitSource("https://github.com/ralna/ARCHDefs.git", "fc8c5960c3a6d26970ab245241cfc067fe4ecfdd")
+                # Clone the repo once
+                sgs = @test_logs (:info, r"^Cloning") download_source(gs; verbose = true, downloads_dir = dir)
+                # Fetch again the repo to make sure cache works
+                @test @test_logs (:info, r"^Cached repository found in") download_source(gs; verbose = true, downloads_dir = dir) == sgs
+                # Fetch the temp directory as a `DirectorySource`
+                ds = DirectorySource("./bundled")
+                patchdir = abspath(joinpath(dir, ds.path, "patches"))
+                mkpath(patchdir)
+                write(abspath(joinpath(patchdir, "fix-windows-headers.patch")), "This is a patch file")
+                sds = @test_logs (:info, r"^Directory .* found") download_source(ds; verbose = true)
+                # Try to fetch a non-existing directory
+                @test_throws ErrorException download_source(DirectorySource(joinpath(dir, "does_not_exist")); verbose = true)
+
+                srcdir = joinpath(dir, "srcdir")
+                target = joinpath(srcdir, as.unpack_target)
+                @test_logs (:info, r"^Extracting tarball") setup(sas, target, true; tar_flags = "xof")
+                @test isdir(target)
+                target = joinpath(srcdir, fs.filename)
+                @test_logs (:info, r"^Copying") setup(sfs, target, true)
+                @test isfile(target)
+                target = joinpath(srcdir, gs.unpack_target)
+                @test_logs (:info, "Cloning ARCHDefs.git to ARCHDefs...") setup(sgs, target, true)
+                @test isdir(target)
+                target = abspath(joinpath(srcdir, "patches"))
+                @test_logs (:info, "Copying content of bundled in srcdir...") setup(sds, srcdir, true)
+                @test isdir(target)
+                @test Set(readdir(srcdir)) == Set(["ARCHDefs", "ARCHDefs-2.0.3x", fs.filename, "patches"])
             end
-            # Check that the cache is found
-            @test_logs (:info, r"^Destination file .* already exists") (:info, r"Hash cache is consistent, returning true") download_source(as; verbose = true, downloads_dir = dir)
-            fs = FileSource("https://github.com/ralna/ARCHDefs/archive/v2.0.3x.tar.gz", "6583e27f84338447767bbdf4335514c8836ae4ad54f5e66280307e8b57189cff")
-            # Re-fetch the same tarball, as a `FileSource` this time
-            @test_logs (:info, r"^Destination file .* already exists") (:info, r"Hash cache is consistent, returning true") download_source(fs; verbose = true, downloads_dir = dir)
-            gs = GitSource("https://github.com/ralna/ARCHDefs", "fc8c5960c3a6d26970ab245241cfc067fe4ecfdd")
-            # Clone the repo once
-            @test_logs (:info, r"^Cloning") download_source(gs; verbose = true, downloads_dir = dir)
-            # Fetch again the repo to make sure cache works
-            @test_logs (:info, r"^Cached repository found in") download_source(gs; verbose = true, downloads_dir = dir)
-            # Fetch the temp directory as a `DirectorySource`
-            @test_logs (:info, r"^Directory .* found") download_source(DirectorySource(dir); verbose = true)
-            # Try to fetch a non-existing directory
-            @test_throws ErrorException download_source(DirectorySource(joinpath(dir, "does_not_exist")); verbose = true)
         end
     end