diff --git a/packages/compile-common/src/sources.ts b/packages/compile-common/src/sources.ts
index 09117b81e0a..9056d3573bc 100644
--- a/packages/compile-common/src/sources.ts
+++ b/packages/compile-common/src/sources.ts
@@ -7,19 +7,22 @@ import * as path from "path";
  *
  * @param originalSources - { [originalSourcePath]: contents }
  * @param originalTargets - originalSourcePath[]
+ * @param baseDirectory - a directory to remove as a prefix
+ * @param replacement - what to replace it with
  * @return { sources, targets, originalSourcePaths }
  */
 export function collectSources(
   originalSources: Sources,
   originalTargets: string[] = [],
-  contractsDirectory: string = "" //only used by Vyper atm
+  baseDirectory: string = "",
+  replacement: string = "/"
 ): CollectedSources {
   const mappedResults = Object.entries(originalSources)
     .map(([originalSourcePath, contents]) => ({
       originalSourcePath,
       contents,
       sourcePath: getPortableSourcePath(
-        removeRootDirectory(originalSourcePath, contractsDirectory)
+        replaceRootDirectory(originalSourcePath, baseDirectory, replacement)
       )
     }))
     .map(({ originalSourcePath, sourcePath, contents }) => ({
@@ -73,12 +76,16 @@ function getPortableSourcePath(sourcePath: string): string {
   return replacement;
 }
 
-function removeRootDirectory(sourcePath: string, rootDirectory: string): string {
-  //make sure root directory doesn't end in a separator
-  if (rootDirectory.endsWith(path.sep)) {
-    rootDirectory = rootDirectory.slice(0, -1); //remove last character
+function replaceRootDirectory(
+  sourcePath: string,
+  rootDirectory: string,
+  replacement: string
+): string {
+  //make sure root directory ends in a separator
+  if (!rootDirectory.endsWith(path.sep)) {
+    rootDirectory = rootDirectory + path.sep;
   }
   return sourcePath.startsWith(rootDirectory)
-    ? sourcePath.slice(rootDirectory.length) //remove prefix
+    ? replacement + sourcePath.slice(rootDirectory.length) //remove prefix
     : sourcePath;
 }
diff --git a/packages/compile-solidity/run.js b/packages/compile-solidity/run.js
index 5ab02893f07..b1105835840 100644
--- a/packages/compile-solidity/run.js
+++ b/packages/compile-solidity/run.js
@@ -14,11 +14,18 @@ async function run(rawSources, options, language = "Solidity") {
 
   // Ensure sources have operating system independent paths
   // i.e., convert backslashes to forward slashes; things like C: are left intact.
+  // we also strip the project root (to avoid it appearing in metadata)
+  // and replace it with "project://"
   const {
     sources,
     targets,
     originalSourcePaths
-  } = Common.Sources.collectSources(rawSources, options.compilationTargets);
+  } = Common.Sources.collectSources(
+    rawSources,
+    options.compilationTargets,
+    options.working_directory,
+    "project://"
+  );
 
   // construct solc compiler input
   const compilerInput = prepareCompilerInput({
diff --git a/packages/compile-solidity/test/test_metadata.js b/packages/compile-solidity/test/test_metadata.js
new file mode 100644
index 00000000000..94c9f615ae4
--- /dev/null
+++ b/packages/compile-solidity/test/test_metadata.js
@@ -0,0 +1,72 @@
+const debug = require("debug")("compile:test:test_metadata");
+const fs = require("fs");
+const path = require("path");
+const { Compile } = require("@truffle/compile-solidity");
+const CompilerSupplier = require("../compilerSupplier");
+const assert = require("assert");
+const { findOne } = require("./helpers");
+const workingDirectory = "/home/fakename/truffleproject";
+const compileOptions = {
+  working_directory: workingDirectory,
+  compilers: {
+    solc: {
+      version: "0.4.25",
+      settings: {
+        optimizer: {
+          enabled: false,
+          runs: 200
+        }
+      }
+    }
+  },
+  quiet: true
+};
+const supplierOptions = {
+  solcConfig: compileOptions.compilers.solc,
+  events: {
+    emit: () => {}
+  }
+};
+
+describe("Compile - solidity ^0.4.0", function () {
+  this.timeout(5000); // solc
+  let source = null;
+  let solc = null; // gets loaded via supplier
+
+  before("get solc", async function () {
+    this.timeout(40000);
+
+    const supplier = new CompilerSupplier(supplierOptions);
+    ({ solc } = await supplier.load());
+  });
+
+  describe("Metadata", function () {
+    before("get code", function () {
+      source = fs.readFileSync(
+        path.join(__dirname, "./sources/v0.4.x/SimpleOrdered.sol"),
+        "utf-8"
+      );
+    });
+
+    it("does not include absolute paths in metadata", async function () {
+      const sourcePath = `${workingDirectory}/contracts/SimpleOrdered.sol`;
+      const sources = { [sourcePath]: source };
+
+      const { compilations } = await Compile.sources({
+        sources,
+        options: compileOptions
+      });
+
+      const SimpleOrdered = findOne("SimpleOrdered", compilations[0].contracts);
+      const metadata = JSON.parse(SimpleOrdered.metadata);
+      const metadataSources = Object.keys(metadata.sources);
+      const metadataTargets = Object.keys(metadata.settings.compilationTarget);
+      const metadataPaths = metadataSources.concat(metadataTargets);
+      debug("metadataPaths: %O", metadataPaths);
+      assert(metadataPaths.every(
+        sourcePath => sourcePath.startsWith("project://") &&
+          !sourcePath.includes(workingDirectory)
+      ));
+    });
+  });
+});
diff --git a/packages/compile-vyper/vyper-json.js b/packages/compile-vyper/vyper-json.js
index a9789da83c1..30e11e65603 100644
--- a/packages/compile-vyper/vyper-json.js
+++ b/packages/compile-vyper/vyper-json.js
@@ -12,6 +12,10 @@ const partition = require("lodash.partition");
 function compileJson({ sources: rawSources, options, version, command }) {
   const compiler = { name: "vyper", version };
 
+  //in order to better support absolute Vyper imports, we pretend that
+  //the contracts directory is the root directory.  note this means that
+  //if an imported source from somewhere other than FS uses an absolute
+  //import to refer to its own project root, it won't work.  But, oh well.
   const {
     sources,
     targets,
@@ -33,11 +37,6 @@ function compileJson({ sources: rawSources, options, version, command }) {
       : sourcePath => !sourcePath.endsWith(".json")
   );
 
-  //in order to better support absolute Vyper imports, we pretend that
-  //the contracts directory is the root directory.  note this means that
-  //if an imported source from somewhere other than FS uses an absolute
-  //import to refer to its own project root, it won't work.  But, oh well.
-
   const properSources = Object.assign(
     {},
     ...properSourcePaths.map(sourcePath => ({