diff --git a/proposal/myrmidon/src/java/org/apache/myrmidon/components/builder/DefaultProjectBuilder.java b/proposal/myrmidon/src/java/org/apache/myrmidon/components/builder/DefaultProjectBuilder.java
index e49f0ab2e..f956a9bae 100644
--- a/proposal/myrmidon/src/java/org/apache/myrmidon/components/builder/DefaultProjectBuilder.java
+++ b/proposal/myrmidon/src/java/org/apache/myrmidon/components/builder/DefaultProjectBuilder.java
@@ -122,13 +122,18 @@ public class DefaultProjectBuilder
         }
 
         //get project-level attributes
-        final String baseDirectoryName = configuration.getAttribute( "basedir" );
+        final String baseDirectoryName = configuration.getAttribute( "basedir", null );
         final String defaultTarget = configuration.getAttribute( "default" );
         //final String name = configuration.getAttribute( "name" );
 
-        //determine base directory for project
-        final File baseDirectory =
-            ( new File( file.getParentFile(), baseDirectoryName ) ).getAbsoluteFile();
+        //determine base directory for project.  Use the directory containing
+        //the build file as the default.
+        File baseDirectory = file.getParentFile();
+        if( baseDirectoryName != null )
+        {
+            baseDirectory = new File( baseDirectory, baseDirectoryName );
+        }
+        baseDirectory = baseDirectory.getAbsoluteFile();
 
         if( getLogger().isDebugEnabled() )
         {