diff --git a/src/main/java/com/google/devtools/build/lib/packages/AbstractAttributeMapper.java b/src/main/java/com/google/devtools/build/lib/packages/AbstractAttributeMapper.java
index 906447b..52f78ab 100644
--- a/src/main/java/com/google/devtools/build/lib/packages/AbstractAttributeMapper.java
+++ b/src/main/java/com/google/devtools/build/lib/packages/AbstractAttributeMapper.java
@@ -16,6 +16,7 @@
 import com.google.common.annotations.VisibleForTesting;
 import com.google.common.collect.ImmutableList;
 import com.google.devtools.build.lib.syntax.Label;
+import com.google.devtools.build.lib.vfs.PathFragment;
 
 import javax.annotation.Nullable;
 
@@ -154,7 +155,20 @@
     Object value = get(attribute.getName(), type);
     if (value != null) { // null values are particularly possible for computed defaults.
       for (Label label : type.getLabels(value)) {
-        observer.acceptLabelAttribute(label, attribute);
+        Label absoluteLabel;
+        if (attribute.isImplicit() || attribute.isLateBound()) {
+          // Implicit dependencies are not usually present in remote repositories. They are
+          // generally tools, which go to the main repository.
+          absoluteLabel = label;
+        } else if (label.getPackageIdentifier().getRepository().isDefault()
+            && label.getPackageIdentifier().getPackageFragment().equals(
+                new PathFragment("visibility"))) {
+          // //visibility: labels must also be special-cased :(
+          absoluteLabel = label;
+        } else {
+          absoluteLabel = ruleLabel.resolveRepositoryRelative(label);
+        }
+        observer.acceptLabelAttribute(absoluteLabel, attribute);
       }
     }
   }
diff --git a/src/main/java/com/google/devtools/build/lib/syntax/Label.java b/src/main/java/com/google/devtools/build/lib/syntax/Label.java
index 5a744c0f..61621b9 100644
--- a/src/main/java/com/google/devtools/build/lib/syntax/Label.java
+++ b/src/main/java/com/google/devtools/build/lib/syntax/Label.java
@@ -355,6 +355,30 @@
     }
   }
 
+  /**
+   * Resolves the repository of a label in the context of another label.
+   *
+   * <p>This is necessary so that dependency edges in remote repositories do not need to explicitly
+   * mention their repository name. Otherwise, referring to e.g. <code>//a:b</code> in a remote
+   * repository would point back to the main repository, which is usually not what is intended.
+   */
+  public Label resolveRepositoryRelative(Label relative) {
+    if (packageIdentifier.getRepository().isDefault()
+        || !relative.packageIdentifier.getRepository().isDefault()) {
+      return relative;
+    } else {
+      try {
+        return new Label(
+            new PackageIdentifier(packageIdentifier.getRepository(), relative.getPackageFragment()),
+            relative.getName());
+      } catch (Label.SyntaxException e) {
+        // We are creating the new label from an existing one which is guaranteed to be valid, so
+        // this can't happen
+        throw new IllegalStateException(e);
+      }
+    }
+  }
+
   @Override
   public int hashCode() {
     return name.hashCode() ^ packageIdentifier.hashCode();
diff --git a/src/test/shell/bazel/local_repository_test.sh b/src/test/shell/bazel/local_repository_test.sh
index 5a587e6..682245b 100755
--- a/src/test/shell/bazel/local_repository_test.sh
+++ b/src/test/shell/bazel/local_repository_test.sh
@@ -481,4 +481,39 @@
   assert_contains "Michaelangelo" bazel-genfiles/tmnt
 }
 
+function test_local_deps() {
+  local r=$TEST_TMPDIR/r
+  mkdir -p $r
+  cat > WORKSPACE <<EOF
+local_repository(
+    name = "r",
+    path = "$r",
+)
+
+EOF
+
+  mkdir -p $r/a
+  cat > $r/a/BUILD <<'EOF'
+genrule(
+    name = "a",
+    srcs = ["//b:b"],
+    outs = ["a.out"],
+    cmd = "cp $< $@",
+)
+EOF
+
+  mkdir -p $r/b
+  cat > $r/b/BUILD <<'EOF'
+genrule(
+    name = "b",
+    srcs = [],
+    outs = ["b.out"],
+    cmd = "echo SHOUT > $@",
+    visibility = ["//visibility:public"],
+)
+EOF
+
+  bazel build @r//a || fail "build failed"
+}
+
 run_suite "local repository tests"