4 files changed, 56 insertions, 19 deletions
diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index 61924745c8..51bd4abd70 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,3 +1,8 @@
+*Rails 3.0.0 [Release Candidate] (unreleased)*
+
+* Made the rails command work even when you're in a subdirectory [Chad Fowler]
+
+
 *Rails 3.0.0 [beta 4] (June 8th, 2010)*
 
 * Version bump
diff --git a/railties/lib/rails/cli.rb b/railties/lib/rails/cli.rb
index 173f122445..d49431919d 100644
--- a/railties/lib/rails/cli.rb
+++ b/railties/lib/rails/cli.rb
@@ -1,23 +1,5 @@
 require 'rbconfig'
-
-module Rails
-  module ScriptRailsLoader
-    RUBY = File.join(*RbConfig::CONFIG.values_at("bindir", "ruby_install_name")) + RbConfig::CONFIG["EXEEXT"]
-    SCRIPT_RAILS = File.join('script', 'rails')
-
-    def self.exec_script_rails!
-      cwd = Dir.pwd
-      exec RUBY, SCRIPT_RAILS, *ARGV if File.exists?(SCRIPT_RAILS)
-      Dir.chdir("..") do
-        # Recurse in a chdir block: if the search fails we want to be sure
-        # the application is generated in the original working directory.
-        exec_script_rails! unless cwd == Dir.pwd
-      end
-    rescue SystemCallError
-      # could not chdir, no problem just return
-    end
-  end
-end
+require 'rails/script_rails_loader'
 
 Rails::ScriptRailsLoader.exec_script_rails!
 
diff --git a/railties/lib/rails/script_rails_loader.rb b/railties/lib/rails/script_rails_loader.rb
new file mode 100644
index 0000000000..8fbd3bf492
--- /dev/null
+++ b/railties/lib/rails/script_rails_loader.rb
@@ -0,0 +1,28 @@
+require 'pathname'
+
+module Rails
+  module ScriptRailsLoader
+    RUBY = File.join(*RbConfig::CONFIG.values_at("bindir", "ruby_install_name")) + RbConfig::CONFIG["EXEEXT"]
+    SCRIPT_RAILS = File.join('script', 'rails')
+
+    def self.exec_script_rails!
+      cwd = Dir.pwd
+      exec RUBY, SCRIPT_RAILS, *ARGV if in_rails_application?
+      Dir.chdir("..") do
+        # Recurse in a chdir block: if the search fails we want to be sure
+        # the application is generated in the original working directory.
+        exec_script_rails! unless cwd == Dir.pwd
+      end
+    rescue SystemCallError
+      # could not chdir, no problem just return
+    end
+    
+    def self.in_rails_application?
+      File.exists?(SCRIPT_RAILS) || in_rails_application_subdirectory?
+    end
+    
+    def self.in_rails_application_subdirectory?(path = Pathname.new(Dir.pwd))
+      File.exists?(File.join(path, SCRIPT_RAILS)) || !path.root? && in_rails_application_subdirectory?(path.parent)
+    end
+  end
+end
+\ No newline at end of file
diff --git a/railties/test/script_rails_loader_test.rb b/railties/test/script_rails_loader_test.rb
new file mode 100644
index 0000000000..2a87e5cb58
--- /dev/null
+++ b/railties/test/script_rails_loader_test.rb
@@ -0,0 +1,22 @@
+require 'abstract_unit'
+require 'rails/script_rails_loader'
+
+class ScriptRailsLoaderTest < ActiveSupport::TestCase
+  
+  test "is in a rails application if script/rails exists" do
+    File.stubs(:exists?).returns(true)
+    assert Rails::ScriptRailsLoader.in_rails_application?
+  end
+  
+  test "is in a rails application if parent directory has script/rails" do
+    File.stubs(:exists?).with("/foo/bar/script/rails").returns(false)
+    File.stubs(:exists?).with("/foo/script/rails").returns(true)
+    assert Rails::ScriptRailsLoader.in_rails_application_subdirectory?(Pathname.new("/foo/bar"))
+  end
+  
+  test "is not in a rails application if at the root directory and doesn't have script/rails" do
+    Pathname.any_instance.stubs(:root?).returns true
+    assert !Rails::ScriptRailsLoader.in_rails_application?
+  end
+  
+end
+\ No newline at end of file