diff --git a/runtime/local/process/os/os.go b/runtime/local/process/os/os.go
index f1825e97a7..a35d0b7972 100644
--- a/runtime/local/process/os/os.go
+++ b/runtime/local/process/os/os.go
@@ -15,13 +15,17 @@ import (
 
 func (p *Process) Exec(exe *process.Executable) error {
 	cmd := exec.Command(exe.Package.Path)
+	cmd.Dir = exe.Dir
 	return cmd.Run()
 }
 
 func (p *Process) Fork(exe *process.Executable) (*process.PID, error) {
 	// create command
 	cmd := exec.Command(exe.Package.Path, exe.Args...)
+
+	cmd.Dir = exe.Dir
 	// set env vars
+	cmd.Env = append(cmd.Env, os.Environ()...)
 	cmd.Env = append(cmd.Env, exe.Env...)
 
 	// create process group
diff --git a/runtime/local/process/process.go b/runtime/local/process/process.go
index 4449d294ea..ffeae63eb4 100644
--- a/runtime/local/process/process.go
+++ b/runtime/local/process/process.go
@@ -26,6 +26,8 @@ type Executable struct {
 	Env []string
 	// Args to pass
 	Args []string
+	// Initial working directory
+	Dir string
 }
 
 // PID is the running process
diff --git a/runtime/service.go b/runtime/service.go
index 9c6bdc1668..eb6c4154ca 100644
--- a/runtime/service.go
+++ b/runtime/service.go
@@ -55,6 +55,7 @@ func newService(s *Service, c CreateOptions) *service {
 			},
 			Env:  c.Env,
 			Args: args,
+			Dir:  s.Source,
 		},
 		closed:     make(chan bool),
 		output:     c.Output,