Index: test/test_all.py
===================================================================
--- test/test_all.py	(revision 47828)
+++ test/test_all.py	(working copy)
@@ -169,7 +169,8 @@
           "free_features_request",
           "file_name_handling",
           "sort_rule",
-          "ordered_include"
+          "ordered_include",
+          "inherited_dependency"
           ]
 
 if os.name == 'posix':
Index: test/inherited_dependency.py
===================================================================
--- test/inherited_dependency.py	(revision 0)
+++ test/inherited_dependency.py	(revision 0)
@@ -0,0 +1,239 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2008 Steven Watanabe
+#
+# Distributed under the Boost Software License, Version 1.0. (See
+# accompanying file LICENSE_1_0.txt) or copy at
+# http://www.boost.org/LICENSE_1_0.txt)
+
+from BoostBuild import Tester
+
+tester = Tester()
+
+
+###############################################################################
+#
+# Test without giving the project an explicit id.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    lib test : test.cpp ;
+    project : requirements <library>test ;
+    build-project a ;
+""")
+
+tester.write("test.cpp", """
+    #ifdef _WIN32
+        __declspec(dllexport)
+    #endif
+    void foo() {}
+""")
+
+tester.write("a/test1.cpp", """
+    int main() {}
+""")
+
+tester.write("a/Jamfile", """
+    exe test1 : test1.cpp ;
+""")
+
+tester.run_build_system()
+
+tester.expect_addition("bin/$toolset/debug/test.obj")
+tester.expect_addition("a/bin/$toolset/debug/test1.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Run the same test from the "a" directory.
+#
+###############################################################################
+
+tester.run_build_system(subdir="a")
+
+tester.expect_addition("bin/$toolset/debug/test.obj")
+tester.expect_addition("a/bin/$toolset/debug/test1.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# This time, do give the project an id.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    lib test : test.cpp ;
+    project test_project : requirements <library>test ;
+    build-project a ;
+""")
+
+tester.run_build_system()
+
+tester.expect_addition("bin/$toolset/debug/test.obj")
+tester.expect_addition("a/bin/$toolset/debug/test1.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Now, give the project an id in its attributes.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    lib test : test.cpp ;
+    project : id test_project : requirements <library>test ;
+    build-project a ;
+""")
+
+tester.run_build_system()
+
+tester.expect_addition("bin/$toolset/debug/test.obj")
+tester.expect_addition("a/bin/$toolset/debug/test1.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Give the project an id in both ways at once.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    lib test : test.cpp ;
+    project test_project1 : id test_project : requirements <library>test ;
+    build-project a ;
+""")
+
+tester.run_build_system()
+
+tester.expect_addition("bin/$toolset/debug/test.obj")
+tester.expect_addition("a/bin/$toolset/debug/test1.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Test an absolute path in native format.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    import path ;
+    path-constant here : . ;
+    current-location =
+        [ path.native [ path.root [ path.make $(here) ] [ path.pwd ] ] ] ;
+    project test : requirements <source>$(current-location)/a/test1.cpp ;
+    exe test : test.cpp ;
+""")
+
+tester.run_build_system()
+tester.expect_addition("bin/$toolset/debug/test.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Test an absolute path in canonical format.
+#
+###############################################################################
+
+tester.write("Jamroot", """
+    import path ;
+    path-constant here : . ;
+    current-location = [ path.root [ path.make $(here) ] [ path.pwd ] ] ;
+    project test : requirements <source>$(current-location)/a/test1.cpp ;
+    exe test : test.cpp ;
+""")
+
+tester.run_build_system()
+tester.expect_addition("bin/$toolset/debug/test.exe")
+
+tester.rm("bin")
+tester.rm("a/bin")
+
+
+###############################################################################
+#
+# Test dependency properties (e.g.
+# <source>) whose targets are specified using a relative path.
+#
+###############################################################################
+
+
+# Use Jamroot rather than Jamfile to avoid inheriting
+# the <source> from the parent as that would would make
+# test3 a source of itself.
+tester.write("b/Jamroot", """
+    obj test3 : test3.cpp ;
+""")
+
+tester.write("b/test3.cpp", """
+    void bar() {}
+""")
+
+tester.write("Jamroot", """
+    project test : requirements <source>b//test3 ;
+    build-project a ;
+""")
+
+tester.write("a/Jamfile", """
+    exe test : test1.cpp ;
+""")
+
+tester.write("a/test1.cpp", """
+    void bar();
+    int main() { bar(); }
+""")
+
+tester.run_build_system()
+tester.expect_addition("b/bin/$toolset/debug/test3.obj")
+tester.expect_addition("a/bin/$toolset/debug/test.exe")
+
+tester.rm("bin")
+tester.rm("a")
+tester.rm("Jamroot")
+tester.rm("test.cpp")
+
+
+###############################################################################
+#
+# Test that source-location is respected
+#
+###############################################################################
+
+tester.write("build/Jamroot", """
+    project : requirements <source>test.cpp : source-location ../src ;
+""")
+
+tester.write("src/test.cpp", """
+    int main() {}
+""")
+
+tester.write("build/a/Jamfile", """
+    project : source-location ../../a_src ;
+    exe test : test1.cpp ;
+""")
+
+tester.write("a_src/test1.cpp", """
+""")
+
+tester.run_build_system(subdir="build/a")
+tester.expect_addition("build/a/bin/$toolset/debug/test.exe")
+
+tester.cleanup()

Property changes on: test\inherited_dependency.py
___________________________________________________________________
Name: svn:executable
   + *
Name: svn:mime-type
   + text/x-python
Name: svn:eol-style
   + native

Index: build/property-set.jam
===================================================================
--- build/property-set.jam	(revision 47828)
+++ build/property-set.jam	(working copy)
@@ -384,6 +384,10 @@
         : $(location) ] ;
     specification = [ property.translate-indirect $(specification)
         : $(jamfile-module) ] ;
+    local project-id = [ project.attribute $(jamfile-module) id ] ;
+    project-id ?= [ path.root $(location) [ path.pwd ] ] ;
+    specification = [ property.translate-dependencies
+                      $(specification) : $(project-id) : $(location) ] ;
     specification =
         [ property.expand-subfeatures-in-conditions $(specification) ] ;
     specification = [ property.make $(specification) ] ;
Index: build/property.jam
===================================================================
--- build/property.jam	(revision 47828)
+++ build/property.jam	(working copy)
@@ -512,6 +512,49 @@
     return $(result) ;
 }
 
+# Binds all dependency properties in a list relative to
+# the given project.  Targets with absolute paths will
+# be left unchanged and targets which have a project specified
+# will have the path to the project interpreted relative
+# to location.
+#
+rule translate-dependencies ( specification * : project-id : location )
+{
+    local result ;
+    for local p in $(specification)
+    {
+        local split = [ split-conditional $(p) ] ;
+        local condition = "" ;
+        if $(split)
+        {
+            condition = $(split[1]): ;
+            p = $(split[2]) ;
+        }
+        if dependency in [ feature.attributes $(p:G) ]
+        {
+            local split-target = [ regex.match (.*)//(.*) : $(p:G=) ] ;
+            if $(split-target)
+            {
+                local rooted = [ path.root [ path.make $(split-target[1]) ]
+                     [ path.root $(location) [ path.pwd ] ] ] ;
+                result += $(condition)$(p:G)$(rooted)//$(split-target[2]) ;
+            }
+            else if [ path.is-rooted $(p:G=) ]
+            {
+                result += $(condition)$(p) ;
+            }
+            else
+            {
+                result += $(condition)$(p:G)$(project-id)//$(p:G=) ;
+            }
+        }
+        else
+        {
+            result += $(condition)$(p) ;
+        }
+    }
+    return $(result) ;
+}
 
 # Class maintaining a property set -> string mapping.
 #
Index: build/project.jam
===================================================================
--- build/project.jam	(revision 47828)
+++ build/project.jam	(working copy)
@@ -633,9 +633,15 @@
             self.build-dir = [ path.root
                 [ path.make $(specification) ] $(self.location) ] ;
         }
-        else if ! $(attribute) in "id" "default-build" "location"
-            "source-location" "parent" "projects-to-build" "project-root"
+        else if $(attribute) = "id"
         {
+           id = [ path.root $(specification) / ] ;
+           project.register-id $(id) : $(self.project-module) ;
+           self.id = $(id) ;
+        }
+        else if ! $(attribute) in "default-build" "location" "parent"
+            "projects-to-build" "project-root" "source-location"
+        {
             errors.error "Invalid project attribute '$(attribute)' specified"
                 "for project at '$(self.location)'" ;
         }
@@ -873,8 +879,6 @@
         local attributes = [ project.attributes $(__name__) ] ;
         if $(id)
         {
-           id = [ path.root $(id) / ] ;
-           project.register-id $(id) : $(__name__) ;
            $(attributes).set id : $(id) ;
         }
 
@@ -906,6 +910,9 @@
             # or wrong consequences.
             if $(location) && $(location) = [ $(attributes).get project-root ]
             {
+                # Re-read the project id, since it might have been changed in
+                # the project's attributes.
+                id = [ $(attributes).get id ] ;
                 # This is Jamroot.
                 if $(id)
                 {