diff --git a/libexec/pyenv b/libexec/pyenv
index 65e80d22..05955aa7 100755
--- a/libexec/pyenv
+++ b/libexec/pyenv
@@ -44,13 +44,13 @@ fi
 export PYENV_ROOT
 
 if [ -z "${PYENV_DIR}" ]; then
-  PYENV_DIR="$(abs_dirname "$(pwd)/..")"
+  PYENV_DIR="$(pwd)"
 else
   cd "$PYENV_DIR" 2>/dev/null || {
     echo "pyenv: cannot change working directory to \`$PYENV_DIR'"
     exit 1
   } >&2
-  PYENV_DIR="$(abs_dirname "$(pwd)/..")"
+  PYENV_DIR="$(pwd)"
   cd "$OLDPWD"
 fi
 export PYENV_DIR
diff --git a/libexec/pyenv-version-file b/libexec/pyenv-version-file
index d4c563f9..b6b2fa35 100755
--- a/libexec/pyenv-version-file
+++ b/libexec/pyenv-version-file
@@ -4,8 +4,8 @@ set -e
 [ -n "$PYENV_DEBUG" ] && set -x
 
 find_local_version_file() {
-  local root="$1"
-  while [ -n "$root" ]; do
+  local prev root="$1"
+  while [ -n "$root" ] && [ "$root" != "$prev" ]; do
     if [ -e "${root}/.python-version" ]; then
       echo "${root}/.python-version"
       exit
@@ -13,6 +13,7 @@ find_local_version_file() {
       echo "${root}/.pyenv-version"
       exit
     fi
+    prev="${root}"
     root="${root%/*}"
   done
 }