diff --git a/CHANGELOG.md b/CHANGELOG.md
index b7de9b981..4b83a5cfd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -141,7 +141,6 @@
 ### Other changes
 
 * Adds docstrings for the lambda-lifted IR.
-* Package files are now installed along-side build artifacts for installed packages. This means all transitive dependencies of packages you specify with the `depends` field are added automatically.
 
 ## v0.5.0/0.5.1
 
diff --git a/src/Core/Options/Log.idr b/src/Core/Options/Log.idr
index 44c4a31fd..40a0f1518 100644
--- a/src/Core/Options/Log.idr
+++ b/src/Core/Options/Log.idr
@@ -129,7 +129,6 @@ knownTopics = [
     ("metadata.names", Nothing),
     ("module", Nothing),
     ("module.hash", Nothing),
-    ("package.depends", Just "Log which packages are being added"),
     ("quantity", Nothing),
     ("quantity.hole", Nothing),
     ("quantity.hole.update", Nothing),
diff --git a/src/Idris/Package.idr b/src/Idris/Package.idr
index 97417289f..8bbb3265a 100644
--- a/src/Idris/Package.idr
+++ b/src/Idris/Package.idr
@@ -27,7 +27,6 @@ import Libraries.Data.StringMap
 import Libraries.Data.StringTrie
 import Libraries.Text.Parser
 import Libraries.Utils.Path
-import Libraries.Text.PrettyPrint.Prettyprinter.Render.String
 
 import Idris.CommandLine
 import Idris.Doc.HTML
@@ -246,19 +245,16 @@ addField (PPostclean fc e)   pkg = pure $ { postclean := Just (fc, e) } pkg
 addFields : {auto c : Ref Ctxt Defs} ->
             {auto s : Ref Syn SyntaxInfo} ->
             {auto o : Ref ROpts REPLOpts} ->
-            (setSrc : Bool) ->
             List DescField -> PkgDesc -> Core PkgDesc
-addFields setSrc xs desc = do
-  p <- newRef ParsedMods []
-  m <- newRef MainMod Nothing
-  added <- go {p} {m} xs desc
-  when setSrc $ setSourceDir (sourcedir added)
-  ms <- get ParsedMods
-  mmod <- get MainMod
-  pure $
-    { modules := !(traverse toSource ms)
-    , mainmod := !(traverseOpt toSource mmod)
-    } added
+addFields xs desc = do p <- newRef ParsedMods []
+                       m <- newRef MainMod Nothing
+                       added <- go {p} {m} xs desc
+                       setSourceDir (sourcedir added)
+                       ms <- get ParsedMods
+                       mmod <- get MainMod
+                       pure $ { modules := !(traverse toSource ms)
+                              , mainmod := !(traverseOpt toSource mmod)
+                              } added
   where
     toSource : (FC, ModuleIdent) -> Core (ModuleIdent, String)
     toSource (loc, ns) = pure (ns, !(nsToSource loc ns))
@@ -275,55 +271,8 @@ runScript (Just (fc, s))
          when (res /= 0) $
             throw (GenericMsg fc "Script failed")
 
-export
-parsePkgFile : {auto c : Ref Ctxt Defs} ->
-               {auto s : Ref Syn SyntaxInfo} ->
-               {auto o : Ref ROpts REPLOpts} ->
-               (setSrc : Bool) -> -- parse package file as a dependency
-               String -> Core PkgDesc
-parsePkgFile setSrc file = do
-    Right (pname, fs) <- coreLift $ parseFile file $ parsePkgDesc file <* eoi
-        | Left err => throw err
-    addFields setSrc fs (initPkgDesc pname)
-
-addDeps :
-    {auto c : Ref Ctxt Defs} ->
-    {auto s : Ref Syn SyntaxInfo} ->
-    {auto o : Ref ROpts REPLOpts} ->
-    PkgDesc ->
-    Core ()
-addDeps pkg = do
-    allPkgs <- getTransitiveDeps pkg.depends empty
-    log "package.depends" 10 $ "all depends: \{show allPkgs}"
-    traverse_ addExtraDir allPkgs
-  where
-    -- Note: findPkgDir throws an error if a package is not found
-    -- *unless* --ignore-missing-ipkg is enabled
-    -- therefore, findPkgDir returns Nothing, skip the package
-    getTransitiveDeps :
-        List Depends ->
-        (done : StringMap (Maybe PkgVersion)) ->
-        Core (List String) -- package directories to add
-    getTransitiveDeps [] done =
-        map catMaybes $ traverse
-            (\(pkg, mv) => findPkgDir pkg (exactBounds mv))
-            $ StringMap.toList done
-    getTransitiveDeps (dep :: deps) done =
-        case lookup dep.pkgname done of
-            Just mv => if inBounds mv dep.pkgbounds
-                then getTransitiveDeps deps done
-                else throw $ GenericMsg EmptyFC "2 versions of the same package are required, this is unsupported"
-            Nothing => do
-                log "package.depends" 50 "adding new dependency: \{dep.pkgname} (\{show dep.pkgbounds})"
-                Just pkgDir <- findPkgDir dep.pkgname dep.pkgbounds
-                    | Nothing => getTransitiveDeps deps done
-                let pkgFile = pkgDir </> dep.pkgname <.> "ipkg"
-                True <- coreLift $ exists pkgFile
-                    | False => getTransitiveDeps deps (insert dep.pkgname Nothing done)
-                pkg <- parsePkgFile False pkgFile
-                getTransitiveDeps
-                    (pkg.depends ++ deps)
-                    (insert pkg.name pkg.version done)
+addDeps : {auto c : Ref Ctxt Defs} -> PkgDesc -> Core ()
+addDeps pkg = traverse_ (\p => addPkgDir p.pkgname p.pkgbounds) (depends pkg)
 
 processOptions : {auto c : Ref Ctxt Defs} ->
                  {auto o : Ref ROpts REPLOpts} ->
@@ -509,23 +458,9 @@ install pkg opts installSrc -- not used but might be in the future
          traverse_ (installFrom (wdir </> build) targetDir . fst) toInstall
          when installSrc $ do
            traverse_ (installSrcFrom wdir targetDir) toInstall
-
-         -- install package file
-         let pkgFile = targetDir </> pkg.name <.> "ipkg"
-         coreLift $ putStrLn $ "Installing package file for \{pkg.name} to \{targetDir}"
-         let pkgStr = String.renderString $ layoutUnbounded $ pretty $ savePkgMetadata pkg
-         log "package.depends" 25 $ "  package file:\n\{pkgStr}"
-         coreLift_ $ writeFile pkgFile pkgStr
-
          coreLift_ $ changeDir wdir
 
          runScript (postinstall pkg)
-  where
-    savePkgMetadata : PkgDesc -> PkgDesc
-    savePkgMetadata pkg =
-      the (PkgDesc -> PkgDesc)
-      { depends := pkg.depends }
-      $ initPkgDesc pkg.name
 
 -- Check package without compiling anything.
 check : {auto c : Ref Ctxt Defs} ->
@@ -749,6 +684,19 @@ runRepl fname = do
         displayErrors errs
   repl {u} {s}
 
+export
+parsePkgFile : {auto c : Ref Ctxt Defs} ->
+               {auto s : Ref Syn SyntaxInfo} ->
+               {auto o : Ref ROpts REPLOpts} ->
+               String -> Core PkgDesc
+parsePkgFile file = do
+  Right (pname, fs) <- coreLift $ parseFile file
+                                          (do desc <- parsePkgDesc file
+                                              eoi
+                                              pure desc)
+      | Left err => throw err
+  addFields fs (initPkgDesc pname)
+
 ||| If the user did not provide a package file we can look in the working
 ||| directory. If there is exactly one `.ipkg` file then use that!
 localPackageFile : Maybe String -> Core String
@@ -786,7 +734,9 @@ processPackage opts (cmd, mfile)
                  | _ => do coreLift $ putStrLn ("Packages must have an '.ipkg' extension: " ++ show file ++ ".")
                            coreLift (exitWith (ExitFailure 1))
              setWorkingDir dir
-             pkg <- parsePkgFile True filename
+             Right (pname, fs) <- coreLift $ parseFile filename (parsePkgDesc filename <* eoi)
+                | Left err => throw err
+             pkg <- addFields fs (initPkgDesc pname)
              whenJust (builddir pkg) setBuildDir
              setOutputDir (outputdir pkg)
              case cmd of
@@ -903,11 +853,16 @@ findIpkg fname
              | Nothing => pure fname
         coreLift_ $ changeDir dir
         setWorkingDir dir
-        pkg <- parsePkgFile True ipkgn
+        Right (pname, fs) <- coreLift $ parseFile ipkgn
+                                 (do desc <- parsePkgDesc ipkgn
+                                     eoi
+                                     pure desc)
+            | Left err => throw err
+        pkg <- addFields fs (initPkgDesc pname)
         maybe (pure ()) setBuildDir (builddir pkg)
         setOutputDir (outputdir pkg)
         processOptions (options pkg)
-        addDeps pkg
+        loadDependencies (depends pkg)
         case fname of
              Nothing => pure Nothing
              Just srcpath  =>
@@ -920,3 +875,6 @@ findIpkg fname
     dropHead str [] = []
     dropHead str (x :: xs)
         = if x == str then xs else x :: xs
+
+    loadDependencies : List Depends -> Core ()
+    loadDependencies = traverse_ (\p => addPkgDir p.pkgname p.pkgbounds)
diff --git a/src/Idris/Package/Types.idr b/src/Idris/Package/Types.idr
index e090c3af6..704bcadb4 100644
--- a/src/Idris/Package/Types.idr
+++ b/src/Idris/Package/Types.idr
@@ -83,10 +83,6 @@ export
 anyBounds : PkgVersionBounds
 anyBounds = MkPkgVersionBounds Nothing True Nothing True
 
-export
-exactBounds : Maybe PkgVersion -> PkgVersionBounds
-exactBounds mv = MkPkgVersionBounds mv True mv True
-
 export
 current : PkgVersionBounds
 current = let (maj,min,patch) = semVer version
@@ -152,7 +148,7 @@ Show Depends where
 
 export
 Pretty Void Depends where
-  pretty dep = pretty dep.pkgname <+> pretty dep.pkgbounds
+  pretty = pretty . show
 
 ------------------------------------------------------------------------------
 -- Package description
diff --git a/src/Idris/SetOptions.idr b/src/Idris/SetOptions.idr
index 2f47218f2..3874a5234 100644
--- a/src/Idris/SetOptions.idr
+++ b/src/Idris/SetOptions.idr
@@ -91,12 +91,9 @@ localPackageDir
          pure $ srcdir </> depends
 
 export
-findPkgDir :
-    Ref Ctxt Defs =>
-    String ->
-    PkgVersionBounds ->
-    Core (Maybe String)
-findPkgDir p bounds
+addPkgDir : {auto c : Ref Ctxt Defs} ->
+            String -> PkgVersionBounds -> Core ()
+addPkgDir p bounds
     = do defs <- get Ctxt
          globaldir <- globalPackageDir
          localdir <- localPackageDir
@@ -121,17 +118,9 @@ findPkgDir p bounds
          -- (TODO: Can't do this quite yet due to idris2 build system...)
          case sorted of
               [] => if defs.options.session.ignoreMissingPkg
-                       then pure Nothing
+                       then pure ()
                        else throw (CantFindPackage (p ++ " (" ++ show bounds ++ ")"))
-              ((p, _) :: ps) => pure $ Just p
-
-export
-addPkgDir : {auto c : Ref Ctxt Defs} ->
-            String -> PkgVersionBounds -> Core ()
-addPkgDir p bounds = do
-    Just p <- findPkgDir p bounds
-        | Nothing => pure ()
-    addExtraDir p
+              ((p, _) :: ps) => addExtraDir p
 
 visiblePackages : String -> IO (List PkgDir)
 visiblePackages dir = filter viable <$> getPackageDirs dir
diff --git a/tests/Main.idr b/tests/Main.idr
index b2670c874..a7bafae4e 100644
--- a/tests/Main.idr
+++ b/tests/Main.idr
@@ -245,7 +245,7 @@ idrisTests = MkTestPool "Misc" [] Nothing
        "params001", "params002", "params003",
        -- Packages and ipkg files
        "pkg001", "pkg002", "pkg003", "pkg004", "pkg005", "pkg006", "pkg007",
-       "pkg008", "pkg009", "pkg010", "pkg011", "pkg012", "pkg013",
+       "pkg008", "pkg009", "pkg010", "pkg011", "pkg012",
        -- Larger programs arising from real usage. Typically things with
        -- interesting interactions between features
        "real001", "real002",
diff --git a/tests/idris2/pkg006/depends/bar-baz/bar-baz.ipkg b/tests/idris2/pkg006/depends/bar-baz/bar-baz.ipkg
index e2eff4dee..b7f21e4eb 100644
--- a/tests/idris2/pkg006/depends/bar-baz/bar-baz.ipkg
+++ b/tests/idris2/pkg006/depends/bar-baz/bar-baz.ipkg
@@ -1,2 +1,2 @@
 package bar-baz
--- version = 1.0.1
+version = 1.0.1
diff --git a/tests/idris2/pkg006/depends/quux/quux.ipkg b/tests/idris2/pkg006/depends/quux/quux.ipkg
index 0bdeb7da2..9f1c8cc37 100644
--- a/tests/idris2/pkg006/depends/quux/quux.ipkg
+++ b/tests/idris2/pkg006/depends/quux/quux.ipkg
@@ -1,2 +1,2 @@
 package quux
--- version = 0.0.0
+version = 0.0.0
diff --git a/tests/idris2/pkg010/expected.in b/tests/idris2/pkg010/expected.in
index 3b64c95e7..44bf34a08 100644
--- a/tests/idris2/pkg010/expected.in
+++ b/tests/idris2/pkg010/expected.in
@@ -1,4 +1,3 @@
 1/1: Building Main (Main.idr)
 Installing __PWD__build/ttc/Main.ttc to __PWD__currently/nonexistent/dir/idris2-0.5.1/testpkg-0
 Installing __PWD__build/ttc/Main.ttc to __PWD__currently/nonexistent/dir/idris2-0.5.1/testpkg-0
-Installing package file for testpkg to __PWD__currently/nonexistent/dir/idris2-0.5.1/testpkg-0
diff --git a/tests/idris2/pkg010/run b/tests/idris2/pkg010/run
index 2ca608185..da4711354 100755
--- a/tests/idris2/pkg010/run
+++ b/tests/idris2/pkg010/run
@@ -9,8 +9,6 @@ MY_PWD="${MY_PWD}" ./gen_expected.sh
 export IDRIS2_PACKAGE_PATH=$IDRIS2_PREFIX/$NAME_VERSION
 export IDRIS2_PREFIX=${MY_PWD}currently/nonexistent/dir/
 
-export IDRIS2_INC_CGS=
-
 $1 --install ./testpkg.ipkg
 
 # ../ is there for some extra safety for using rm -rf
diff --git a/tests/idris2/pkg013/.gitignore b/tests/idris2/pkg013/.gitignore
deleted file mode 100644
index 062cbdb0b..000000000
--- a/tests/idris2/pkg013/.gitignore
+++ /dev/null
@@ -1,2 +0,0 @@
-/expected
-
diff --git a/tests/idris2/pkg013/depends/bar-0.7.2/bar.ipkg b/tests/idris2/pkg013/depends/bar-0.7.2/bar.ipkg
deleted file mode 100644
index 12eedb20e..000000000
--- a/tests/idris2/pkg013/depends/bar-0.7.2/bar.ipkg
+++ /dev/null
@@ -1,4 +0,0 @@
-package bar
-version = 0.7.2
-
-depends = foo >= 0.1.0
diff --git a/tests/idris2/pkg013/depends/foo-0.1.0/foo.ipkg b/tests/idris2/pkg013/depends/foo-0.1.0/foo.ipkg
deleted file mode 100644
index a5e0cf050..000000000
--- a/tests/idris2/pkg013/depends/foo-0.1.0/foo.ipkg
+++ /dev/null
@@ -1,2 +0,0 @@
-package foo
-version = 0.1.0
diff --git a/tests/idris2/pkg013/expected.in b/tests/idris2/pkg013/expected.in
deleted file mode 100644
index c8780af90..000000000
--- a/tests/idris2/pkg013/expected.in
+++ /dev/null
@@ -1 +0,0 @@
-LOG package.depends:10: all depends: ["__PWD__depends/bar-0.7.2", "__PWD__depends/foo-0.1.0"]
diff --git a/tests/idris2/pkg013/gen_expected.sh b/tests/idris2/pkg013/gen_expected.sh
deleted file mode 100755
index 193a8ad31..000000000
--- a/tests/idris2/pkg013/gen_expected.sh
+++ /dev/null
@@ -1,3 +0,0 @@
-#!/usr/bin/env sh
-
-sed -e "s|__PWD__|${MY_PWD}|g" expected.in >expected
diff --git a/tests/idris2/pkg013/run b/tests/idris2/pkg013/run
deleted file mode 100644
index e2ec795e7..000000000
--- a/tests/idris2/pkg013/run
+++ /dev/null
@@ -1,9 +0,0 @@
-if [ "$OS" = "windows" ]; then
-    MY_PWD="$(cygpath -m "$(pwd)")\\\\"
-else
-    MY_PWD="$(pwd)/"
-fi
-
-MY_PWD="${MY_PWD}" ./gen_expected.sh
-
-$1 --build test.ipkg --log package.depends:10
diff --git a/tests/idris2/pkg013/test.ipkg b/tests/idris2/pkg013/test.ipkg
deleted file mode 100644
index bf34041b4..000000000
--- a/tests/idris2/pkg013/test.ipkg
+++ /dev/null
@@ -1,2 +0,0 @@
-package test
-depends = bar