diff --git a/CHANGES.md b/CHANGES.md
index f673554de7c0..62d3a6f8486c 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -38,6 +38,8 @@ unreleased
   `findlib.dynload` with Dune would have to add `(special_builtin_support
   findlib_dynload)` to trigger the special behavior. (#2115, @diml)
 
+- Fix `.install` files not being generated (#2124, fixes #2123, @rgrinberg)
+
 1.9.2 (02/05/2019)
 ------------------
 
diff --git a/src/file_binding.ml b/src/file_binding.ml
index bb50c21d9d9b..4267a3eb03a0 100644
--- a/src/file_binding.ml
+++ b/src/file_binding.ml
@@ -6,7 +6,7 @@ type ('src, 'dst) t =
   }
 
 module Expanded = struct
-  type nonrec t = (Loc.t * Path.t, Loc.t * Path.Local.t) t
+  type nonrec t = (Loc.t * Path.t, Loc.t * string) t
 
   let src t = snd t.src
   let dst t = Option.map ~f:snd t.dst
@@ -21,10 +21,9 @@ module Expanded = struct
       let basename = Path.basename src in
       String.drop_suffix basename ~suffix:".exe"
       |> Option.value ~default:basename
-      |> Path.Local.of_string
 
   let dst_path t ~dir =
-    Path.append_local dir (dst_basename t)
+    Path.relative dir (dst_basename t)
 end
 
 module Unexpanded = struct
@@ -54,7 +53,7 @@ module Unexpanded = struct
     ; dst =
         let f sw =
           let (loc, p) = f sw in
-          (loc, Path.Local.of_string p)
+          (loc, p)
         in
         Option.map ~f t.dst
     }
diff --git a/src/file_binding.mli b/src/file_binding.mli
index da6e4895bb23..48d70a6dedc1 100644
--- a/src/file_binding.mli
+++ b/src/file_binding.mli
@@ -4,7 +4,7 @@ module Expanded : sig
   type t
 
   val src : t -> Path.t
-  val dst : t -> Path.Local.t option
+  val dst : t -> string option
 
   val src_loc : t -> Loc.t
 
diff --git a/src/install_rules.ml b/src/install_rules.ml
index 4bc549543e63..a53b5b866b08 100644
--- a/src/install_rules.ml
+++ b/src/install_rules.ml
@@ -352,8 +352,7 @@ let get_install_entries package =
     List.map files ~f:(fun fb ->
       let loc = File_binding.Expanded.src_loc fb in
       let src = File_binding.Expanded.src fb in
-      let dst = Option.map ~f:Path.Local.to_string
-                  (File_binding.Expanded.dst fb) in
+      let dst = File_binding.Expanded.dst fb in
       ( Some loc
       , Install.Entry.make section src ?dst
       )))
diff --git a/test/blackbox-tests/dune.inc b/test/blackbox-tests/dune.inc
index 23fa444d5bda..94bd4ed432b1 100644
--- a/test/blackbox-tests/dune.inc
+++ b/test/blackbox-tests/dune.inc
@@ -620,19 +620,19 @@
    (progn (run %{exe:cram.exe} -test run.t) (diff? run.t run.t.corrected)))))
 
 (alias
- (name github2123)
- (deps (package dune) (source_tree test-cases/github2123))
+ (name github2061)
+ (deps (package dune) (source_tree test-cases/github2061))
  (action
   (chdir
-   test-cases/github2123
+   test-cases/github2061
    (progn (run %{exe:cram.exe} -test run.t) (diff? run.t run.t.corrected)))))
 
 (alias
- (name github2061)
- (deps (package dune) (source_tree test-cases/github2061))
+ (name github2123)
+ (deps (package dune) (source_tree test-cases/github2123))
  (action
   (chdir
-   test-cases/github2061
+   test-cases/github2123
    (progn (run %{exe:cram.exe} -test run.t) (diff? run.t run.t.corrected)))))
 
 (alias
@@ -1512,8 +1512,8 @@
   (alias github1946)
   (alias github20)
   (alias github2033)
-  (alias github2123)
   (alias github2061)
+  (alias github2123)
   (alias github24)
   (alias github25)
   (alias github534)
@@ -1683,8 +1683,8 @@
   (alias github1946)
   (alias github20)
   (alias github2033)
-  (alias github2123)
   (alias github2061)
+  (alias github2123)
   (alias github24)
   (alias github25)
   (alias github534)
@@ -1766,4 +1766,4 @@
 
 (alias (name runtest-js) (deps (alias js_of_ocaml)))
 
-(alias (name runtest-coq) (deps (alias coq)))
+(alias (name runtest-coq) (deps (alias coq)))
\ No newline at end of file
diff --git a/test/blackbox-tests/test-cases/github2123/run.t b/test/blackbox-tests/test-cases/github2123/run.t
index 7fc8b4324b92..1c4dc1500c96 100644
--- a/test/blackbox-tests/test-cases/github2123/run.t
+++ b/test/blackbox-tests/test-cases/github2123/run.t
@@ -1,3 +1,3 @@
   $ dune build @install
-  Path outside the workspace: ../pkgconfig/mirage-xen.pc from .
-  [1]
+  $ cat foo.install | grep mirage-xen
+    "_build/install/default/lib/pkgconfig/mirage-xen.pc" {"../pkgconfig/mirage-xen.pc"}