diff --git a/rustic-cargo.el b/rustic-cargo.el
index 010bcd5a..a2acf206 100644
--- a/rustic-cargo.el
+++ b/rustic-cargo.el
@@ -619,7 +619,7 @@ in your project like `pwd'"
   (let ((c (if (listp command)
                command
              (split-string command))))
-    (rustic-compilation-start c args)))
+    (rustic-compilation-start c (append (list :no-default-dir t) args))))
 
 ;;;###autoload
 (defun rustic-cargo-build ()
diff --git a/rustic-compile.el b/rustic-compile.el
index 49f337e0..1b10a070 100644
--- a/rustic-compile.el
+++ b/rustic-compile.el
@@ -288,7 +288,7 @@ ARGS is a plist that affects how the process is run.
          (process (or (plist-get args :process) rustic-compilation-process-name))
          (mode (or (plist-get args :mode) 'rustic-compilation-mode))
          (directory (or (plist-get args :directory) (funcall rustic-compile-directory-method)))
-         (workspace (rustic-buffer-workspace))
+         (workspace (rustic-buffer-workspace (plist-get args :no-default-dir)))
          (sentinel (or (plist-get args :sentinel) #'rustic-compilation-sentinel))
          (file-buffer (current-buffer)))
     (rustic-compilation-setup-buffer buf directory mode)
diff --git a/rustic.el b/rustic.el
index cdf45ea2..f34a2747 100644
--- a/rustic.el
+++ b/rustic.el
@@ -64,16 +64,20 @@
 
 (defun rustic-buffer-workspace (&optional nodefault)
   "Get workspace for the current buffer."
+  ;; this variable is buffer local so we can use the cached value
   (if rustic--buffer-workspace
       rustic--buffer-workspace
     (with-temp-buffer
       (let ((ret (call-process (rustic-cargo-bin) nil (list (current-buffer) nil) nil "locate-project" "--workspace")))
-        (when (and (/= ret 0) (not nodefault))
-          (error "`cargo locate-project' returned %s status: %s" ret (buffer-string)))
-        (goto-char 0)
-        (let* ((output (json-read))
-               (dir (file-name-directory (cdr (assoc-string "root" output)))))
-          (setq rustic--buffer-workspace dir))))))
+        (cond ((and (/= ret 0) nodefault)
+               (error "`cargo locate-project' returned %s status: %s" ret (buffer-string)))
+              ((and (/= ret 0) (not nodefault))
+               (setq rustic--buffer-workspace default-directory))
+              (t
+               (goto-char 0)
+               (let* ((output (json-read))
+                      (dir (file-name-directory (cdr (assoc-string "root" output)))))
+                 (setq rustic--buffer-workspace dir))))))))
 
 (defun rustic-buffer-crate (&optional nodefault)
   "Return the crate for the current buffer.