diff --git a/src/bin/cargo/commands/run.rs b/src/bin/cargo/commands/run.rs
index e95ba196e15..b30ef4b8a58 100644
--- a/src/bin/cargo/commands/run.rs
+++ b/src/bin/cargo/commands/run.rs
@@ -178,8 +178,12 @@ pub fn exec_manifest_command(gctx: &mut GlobalContext, cmd: &str, args: &[OsStri
 
     let manifest_path = root_manifest(Some(manifest_path), gctx)?;
 
-    // Reload to cargo home.
-    gctx.reload_rooted_at(gctx.home().clone().into_path_unlocked())?;
+    // Treat `cargo foo.rs` like `cargo install --path foo` and re-evaluate the config based on the
+    // location where the script resides, rather than the environment from where it's being run.
+    let parent_path = manifest_path
+        .parent()
+        .expect("a file should always have a parent");
+    gctx.reload_rooted_at(parent_path)?;
 
     let mut ws = Workspace::new(&manifest_path, gctx)?;
     if gctx.cli_unstable().avoid_dev_deps {
diff --git a/tests/testsuite/script/cargo.rs b/tests/testsuite/script/cargo.rs
index 6da111c60f3..39a907a7f83 100644
--- a/tests/testsuite/script/cargo.rs
+++ b/tests/testsuite/script/cargo.rs
@@ -1,8 +1,5 @@
-use std::fs;
-
 use crate::prelude::*;
 use cargo_test_support::basic_manifest;
-use cargo_test_support::paths::cargo_home;
 use cargo_test_support::registry::Package;
 use cargo_test_support::str;
 
@@ -394,7 +391,7 @@ msg = hello
 }
 
 #[cargo_test(nightly, reason = "-Zscript is unstable")]
-fn use_cargo_home_config() {
+fn use_script_config() {
     let script = ECHO_SCRIPT;
     let _ = cargo_test_support::project()
         .at("script")
@@ -412,18 +409,20 @@ rustc = "non-existent-rustc"
         .file("script.rs", script)
         .build();
 
-    // Verify that the config from the current directory is used
+    // Verify the config is bad
     p.cargo("-Zscript script.rs -NotAnArg")
         .masquerade_as_nightly_cargo(&["script"])
-        .with_stdout_data(str![[r#"
-current_exe: [ROOT]/home/.cargo/build/[HASH]/target/debug/script[EXE]
-arg0: [..]
-args: ["-NotAnArg"]
+        .with_status(101)
+        .with_stderr_data(str![[r#"
+[ERROR] could not execute process `non-existent-rustc -vV` (never executed)
+
+Caused by:
+  [NOT_FOUND]
 
 "#]])
         .run();
 
-    // Verify that the config from the parent directory is not used
+    // Verify that the config isn't used
     p.cargo("-Zscript ../script/script.rs -NotAnArg")
         .masquerade_as_nightly_cargo(&["script"])
         .with_stdout_data(str![[r#"
@@ -431,30 +430,6 @@ current_exe: [ROOT]/home/.cargo/build/[HASH]/target/debug/script[EXE]
 arg0: [..]
 args: ["-NotAnArg"]
 
-"#]])
-        .run();
-
-    // Write a global config.toml in the cargo home directory
-    let cargo_home = cargo_home();
-    fs::write(
-        &cargo_home.join("config.toml"),
-        r#"
-[build]
-rustc = "non-existent-rustc"
-"#,
-    )
-    .unwrap();
-
-    // Verify the global config is used
-    p.cargo("-Zscript script.rs -NotAnArg")
-        .masquerade_as_nightly_cargo(&["script"])
-        .with_status(101)
-        .with_stderr_data(str![[r#"
-[ERROR] could not execute process `non-existent-rustc -vV` (never executed)
-
-Caused by:
-  [NOT_FOUND]
-
 "#]])
         .run();
 }