diff --git a/.gitignore b/.gitignore
index ed62891a..9d826720 100644
--- a/.gitignore
+++ b/.gitignore
@@ -137,6 +137,7 @@ pyston/
 pyprover/
 bbopt/
 coconut-prelude/
+coconut-issue/
 index.rst
 /coconut/icoconut/coconut/
 __coconut_cache__/
diff --git a/Makefile b/Makefile
index a1959766..5b680636 100644
--- a/Makefile
+++ b/Makefile
@@ -331,7 +331,7 @@ docs: clean
 
 .PHONY: clean-no-tests
 clean-no-tests:
-	rm -rf ./docs ./dist ./build ./bbopt ./pyprover ./pyston ./coconut-prelude index.rst ./.mypy_cache
+	rm -rf ./docs ./dist ./build ./bbopt ./pyprover ./pyston ./coconut-prelude ./coconut-issue index.rst ./.mypy_cache
 
 .PHONY: clean
 clean: clean-no-tests
diff --git a/coconut/api.py b/coconut/api.py
index 82f2f0bc..7f168a08 100644
--- a/coconut/api.py
+++ b/coconut/api.py
@@ -202,12 +202,12 @@ class CoconutImporter(object):
     command = None
 
     def __init__(self, *args):
-        self.use_cache_dir(default_use_cache_dir)
         self.set_args(args)
+        self.use_cache_dir(default_use_cache_dir)
 
     def use_cache_dir(self, use_cache_dir):
         """Set the cache directory if any to use for compiled Coconut files."""
-        if use_cache_dir:
+        if use_cache_dir and "--no-cache" not in self.args:
             if not PY34:
                 raise CoconutException("coconut.api.auto_compilation only supports the usage of a cache directory on Python 3.4+")
             self.cache_dir = coconut_cache_dir
@@ -238,7 +238,10 @@ def compile(self, path, package):
 
         if package:
             self.cmd(path, *extra_args)
-            return cache_dir or path
+            if cache_dir:
+                return os.path.join(cache_dir, "__init__.py")
+            else:
+                return path
         else:
             destpath, = self.cmd(path, *extra_args)
             return destpath
diff --git a/coconut/root.py b/coconut/root.py
index 32166bbf..e6794c6c 100644
--- a/coconut/root.py
+++ b/coconut/root.py
@@ -26,7 +26,7 @@
 VERSION = "3.1.2"
 VERSION_NAME = None
 # False for release, int >= 1 for develop
-DEVELOP = 5
+DEVELOP = 6
 ALPHA = False  # for pre releases rather than post releases
 
 assert DEVELOP is False or DEVELOP >= 1, "DEVELOP must be False or an int >= 1"
diff --git a/coconut/tests/main_test.py b/coconut/tests/main_test.py
index 5c347317..8a329238 100644
--- a/coconut/tests/main_test.py
+++ b/coconut/tests/main_test.py
@@ -136,11 +136,13 @@ def pexpect(p, out):
 pyprover = os.path.join(os.curdir, "pyprover")
 prelude = os.path.join(os.curdir, "coconut-prelude")
 bbopt = os.path.join(os.curdir, "bbopt")
+imp_issue_dir = os.path.join(os.curdir, "coconut-issue")
 
 pyston_git = "https://github.com/evhub/pyston.git"
 pyprover_git = "https://github.com/evhub/pyprover.git"
 prelude_git = "https://github.com/evhub/coconut-prelude"
 bbopt_git = "https://github.com/evhub/bbopt.git"
+imp_issue_git = "https://github.com/evhub/coconut-issue.git"
 
 coconut_snip = "msg = '<success>'; pmsg = print$(msg); `pmsg`"
 target_3_snip = "assert super is py_super; print('<success>')"
@@ -1117,6 +1119,13 @@ def test_pyston(self):
                     if PYPY and PY2:
                         run_pyston()
 
+        def test_imp_issue(self):
+            with using_paths(imp_issue_dir):
+                if not os.path.exists(imp_issue_dir):
+                    call(["git", "clone", imp_issue_git])
+                with using_env_vars({"PYTHONPATH": os.pathsep.join([imp_issue_dir, os.environ.get("PYTHONPATH", "")])}):
+                    call_coconut(["-r", os.path.join(imp_issue_dir, "main.coco")])
+
 
 # -----------------------------------------------------------------------------------------------------------------------
 # MAIN: