diff --git a/main.go b/main.go
index 7f035294..9863850b 100644
--- a/main.go
+++ b/main.go
@@ -613,7 +613,7 @@ type twoPassRenderer struct {
 
 func (r *twoPassRenderer) renderEnvironment(content []byte) environment.Environment {
 	firstPassEnv := environment.Environment{Name: r.env, Values: map[string]interface{}(nil)}
-	firstPassRenderer := tmpl.NewFirstPassRenderer(firstPassEnv)
+	firstPassRenderer := tmpl.NewFirstPassRenderer(filepath.Dir(r.filename), firstPassEnv)
 
 	// parse as much as we can, tolerate errors, this is a preparse
 	yamlBuf, err := firstPassRenderer.RenderTemplateContentToBuffer(content)
@@ -641,7 +641,7 @@ func (r *twoPassRenderer) renderTemplate(content []byte) (*bytes.Buffer, error)
 	// try a first pass render. This will always succeed, but can produce a limited env
 	firstPassEnv := r.renderEnvironment(content)
 
-	secondPassRenderer := tmpl.NewFileRenderer(r.reader, "", firstPassEnv)
+	secondPassRenderer := tmpl.NewFileRenderer(r.reader, filepath.Dir(r.filename), firstPassEnv)
 	yamlBuf, err := secondPassRenderer.RenderTemplateContentToBuffer(content)
 	if err != nil {
 		if r.logger != nil {
diff --git a/state/create.go b/state/create.go
index 6b525f78..9a5b7fbb 100644
--- a/state/create.go
+++ b/state/create.go
@@ -100,9 +100,10 @@ func (state *HelmState) loadEnv(name string, readFile func(string) ([]byte, erro
 	envVals := map[string]interface{}{}
 	envSpec, ok := state.Environments[name]
 	if ok {
-		r := valuesfile.NewRenderer(readFile, state.basePath, environment.EmptyEnvironment)
 		for _, envvalFile := range envSpec.Values {
-			bytes, err := r.RenderToBytes(filepath.Join(state.basePath, envvalFile))
+			envvalFullPath := filepath.Join(state.basePath, envvalFile)
+			r := valuesfile.NewRenderer(readFile, filepath.Dir(envvalFullPath), environment.EmptyEnvironment)
+			bytes, err := r.RenderToBytes(envvalFullPath)
 			if err != nil {
 				return nil, fmt.Errorf("failed to load environment values file \"%s\": %v", envvalFile, err)
 			}
diff --git a/state/state.go b/state/state.go
index 4995cab0..6329ae01 100644
--- a/state/state.go
+++ b/state/state.go
@@ -886,7 +886,7 @@ func (state *HelmState) flagsForLint(helm helmexec.Interface, release *ReleaseSp
 }
 
 func (state *HelmState) RenderValuesFileToBytes(path string) ([]byte, error) {
-	r := valuesfile.NewRenderer(state.readFile, state.basePath, state.Env)
+	r := valuesfile.NewRenderer(state.readFile, filepath.Dir(path), state.Env)
 	return r.RenderToBytes(path)
 }
 
diff --git a/tmpl/file.go b/tmpl/file.go
index ebef172e..5b3e6b9b 100644
--- a/tmpl/file.go
+++ b/tmpl/file.go
@@ -35,12 +35,12 @@ func NewFileRenderer(readFile func(filename string) ([]byte, error), basePath st
 	}
 }
 
-func NewFirstPassRenderer(env environment.Environment) *templateFileRenderer {
+func NewFirstPassRenderer(basePath string, env environment.Environment) *templateFileRenderer {
 	return &templateFileRenderer{
 		ReadFile: ioutil.ReadFile,
 		Context: &Context{
 			preRender: true,
-			basePath:  "",
+			basePath:  basePath,
 			readFile:  ioutil.ReadFile,
 		},
 		Data: TemplateData{
diff --git a/tmpl/funcs.go b/tmpl/funcs.go
index 5cfb48cd..4be25f4b 100644
--- a/tmpl/funcs.go
+++ b/tmpl/funcs.go
@@ -53,6 +53,7 @@ func (c *Context) Exec(command string, args []interface{}, inputs ...string) (st
 	}
 
 	cmd := exec.Command(command, strArgs...)
+	cmd.Dir = c.basePath
 
 	writeErrs := make(chan error)
 	cmdErrs := make(chan error)