diff --git a/docs/README.md b/docs/README.md
index 1aae2cc..ef8f217 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -10,6 +10,7 @@
   - [FAQ](general/faq.md)
   - [Gotchas](general/gotchas.md)
   - [Remove](general/remove.md)
+  - [Extracting components](general/components.md)
 - [Testing](testing)
   - [Unit Testing](testing/unit-testing.md)
   - [Component Testing](testing/component-testing.md)
diff --git a/docs/general/components.md b/docs/general/components.md
new file mode 100644
index 0000000..0dd0c75
--- /dev/null
+++ b/docs/general/components.md
@@ -0,0 +1,107 @@
+# Extracting components
+
+One of the most compelling arguments for the self-contained components
+architecture is the ability to easily reuse each component in other projects.
+Since all the files kept in the same folder, this should be a breeze.
+
+## When?
+
+Often when working on a project, you find you've created a component that you
+could use is other upcoming projects. You would like to extract that
+component to its own git repository and npm package since keeping the version
+histories separate makes a lot of sense.
+
+You're not finished with the component, but would like to continue working on it
+in parallel alongside your main project.
+
+## How?
+
+Since all the files are kept in the same place, its simply a matter of moving
+the folder to its own directory, setting up the `package.json` for your new
+package, and including it in your main project.
+
+### Npm
+
+Npm has a great feature that allows this kind of parallel development of
+packages - `npm link` (read more [here](https://docs.npmjs.com/cli/link)). After
+setting up your new package, you can link it into your main package like this:
+
+ 1. `cd` into your new package directory
+ 2. Run `npm link`
+ 3. `cd` into your main project directory
+ 4. Run `npm link <new-package>`
+
+### Configuration
+
+#### Specifying dependencies
+
+Linking the packages won't save the package as a dependency in your main project
+`package.json`, so you'll have to do that manually.
+
+```json
+"dependencies": {
+  "<new-package>": "*",
+}
+```
+
+#### Excluding from Dll
+
+This boilerplate uses the webpack DllPlugin which optimizes build times during
+development. This assumes that your dependencies rarely change and precompiles
+them into one big bundle. But since you will be changing your new package quite
+often, this is probably not what you want.
+
+You can specify that you don't want this package to be included in the dll by
+adding the following to your `package.json`.
+
+```json
+"dllPlugin": {
+  "exclude": [
+    "<new-package>",
+  ]
+}
+```
+
+That's it, you should be all set to work on both your packages. Webpack will
+monitor both your new package and your main project for changes and rebuild
+whenever you change something. This makes development a lot simpler when trying
+to keep things separate while still working on them at the same time.
+
+## Gotchas
+
+As well as this approach works for development, there are some things you need
+to watch out for when building and publishing your new package or project.
+
+### Publishing to npm registry
+
+In your new package, you will most likely have a build task to transpile from
+ES6 into ES5. You probably keep your ES6 code in a `src/` directory and your
+transpiled code in a `lib/` directory.
+
+In your `package.json`, you probably have something like this:
+
+```json
+  "main": "lib/index.js"
+```
+
+This is what you want when you publish to the registry, but during development
+you probably want to change this to
+
+```json
+  "main": "src/index.js"
+```
+
+This will make sure that your main project always includes your most recent
+code. You've just got to remember to change it back to `lib/` before publishing
+to the npm registry.
+
+You can, of course, go down the `lib/` path, but that requires you to
+rebuild your package and transpile it to ES5 whenever you introduce a change,
+which can be a pain.
+
+### Building
+
+Building the package can be a little bit tricky due to how webpack handles
+symlinks. We've found it easiest to remove the symlink and replace it with the
+actual files, either by copying the package to `node_modules` or running
+`npm install` if you've published your package to the npm registry.
diff --git a/internals/webpack/webpack.dev.babel.js b/internals/webpack/webpack.dev.babel.js
index 2b28a42..f4f1744 100644
--- a/internals/webpack/webpack.dev.babel.js
+++ b/internals/webpack/webpack.dev.babel.js
@@ -39,7 +39,11 @@ module.exports = require('./webpack.base.babel')({
 
   // Tell babel that we want to hot-reload
   babelQuery: {
-    presets: ['react-hmre'],
+    // require.resolve solves the issue of relative presets when dealing with
+    // locally linked packages. This is an issue with babel and webpack.
+    // See https://github.com/babel/babel-loader/issues/149 and
+    // https://github.com/webpack/webpack/issues/1866
+    presets: ['babel-preset-react-hmre'].map(require.resolve),
   },
 
   // Emit a source map for easier debugging