diff --git a/project.rkt b/project.rkt
index 9b381e0..a6b3374 100644
--- a/project.rkt
+++ b/project.rkt
@@ -1,18 +1,36 @@
 #lang racket/base
 (require "world.rkt" sugar/define sugar/coerce)
 
-(define (paths? x) (and (list? x) (andmap path? x)))
+(define (complete-paths? x) (and (list? x) (andmap complete-path? x)))
 
 (define/contract+provide (get-directory-require-files source-path) ; keep contract local to ensure coercion
-  (coerce/path? . -> . (or/c #f paths?))
-  (define possible-requires (list (simplify-path (build-path source-path 'up world:directory-require))))
-  (and (andmap file-exists? possible-requires) possible-requires))
+  (coerce/path? . -> . (or/c #f complete-paths?))
+  
+  (define (dirname path)
+    (let-values ([(dir name dir?) (split-path path)])
+      dir))
+  
+  (define (find-upward filename-to-find)
+    (parameterize ([current-directory (dirname (->complete-path source-path))])
+      (let loop ([dir (current-directory)][path (string->path filename-to-find)])
+        (and dir ; dir is #f when it hits the top of the filesystem
+             (let ([completed-path (path->complete-path path)]) 
+               (if (file-exists? completed-path)
+                   (simplify-path completed-path)
+                   (loop (dirname dir) (build-path 'up path))))))))
+
+  (define require-filenames (list world:directory-require))
+  (define not-false? (λ(x) x))
+  (define possible-requires (filter not-false? (map find-upward require-filenames)))
+  (and (not (null? possible-requires)) possible-requires))
 
 
 (define+provide/contract (require+provide-directory-require-files here-path #:provide [provide #t])
   (coerce/path? . -> . (or/c list? void?))
+  
   (define (put-file-in-require-form file)
     `(file ,(path->string file)))
+  
   (define directory-require-files (get-directory-require-files here-path))
   
   (if directory-require-files
@@ -21,7 +39,7 @@
            (require ,@files-in-require-form)
            ,@(if provide
                  (list `(provide (all-from-out ,@files-in-require-form)))
-                 '())))
+                 null)))
       '(begin)))
 
 
diff --git a/scribblings/formats.scrbl b/scribblings/formats.scrbl
index ea98b66..70c3daf 100644
--- a/scribblings/formats.scrbl
+++ b/scribblings/formats.scrbl
@@ -61,7 +61,7 @@ Any value or function that is defined within the source file using @racket[defin
 
 @subsection{The @filepath{directory-require.rkt} file}
 
-If a file called @filepath{directory-require.rkt} exists in the same directory with a source file, it's automatically imported when the source file is compiled.
+If a file called @filepath{directory-require.rkt} exists in the same directory with a source file, or in a parent directory of that source file, it's automatically imported when the source file is compiled.
 
 @bold{How is this different from Racket?} In Racket, you must explicitly import files using @racket[require].
 
diff --git a/scribblings/tutorial-third.scrbl b/scribblings/tutorial-third.scrbl
index 726beba..35d5c4f 100644
--- a/scribblings/tutorial-third.scrbl
+++ b/scribblings/tutorial-third.scrbl
@@ -654,9 +654,9 @@ First, using this file is not mandatory. You can always import functions and val
 
 Second, notice from the @filepath{.rkt} suffix that @filepath{directory-require.rkt} is a source file containing Racket code, not Pollen code. This is the default because while Pollen is better for text-driven source files, Racket is better for code-driven source files. Still, the choice is yours: the name of this file can be changed by resetting the @racket[world:directory-require] value.
 
-Third, notice from the @filepath{directory-} prefix that @filepath{directory-require.rkt} is only used by Pollen source files @italic{in the same directory}. So if your project has source files nested inside a subdirectory, you'll need to explicitly create another @filepath{directory-require.rkt} there and share the functions & values as needed.
+Third, the @filepath{directory-} prefix represents the minimum scope for the file, not the maximum. Pollen source files nested in subdirectories will look for a @filepath{directory-require.rkt} in their own directory first. But if they can't find it, they'll look in the parent directory, then the next parent directory, and so on. Thus, by default, a @filepath{directory-require.rkt} in the root folder of a project will apply to all the source files in the project. But when you add a new @filepath{directory-require.rkt} to a subdirectory, it will apply to all files underneath.
 
-@margin-note{``Why not make this file visible throughout a project, rather than just a directory?'' Good idea, but I couldn't figure out how to do it without creating finicky new dependencies. If you have a better idea, I'm open to it.}
+@margin-note{Though a subdirectory-specific @filepath{directory-require.rkt} will supersede the one in the enclosing directory, you can still use @racket[(require "../directory-require.rkt")] to pull in definitions from above, and @racket[provide] to propagate them into the current subdirectory. For instance, @racket[(provide (all-from-out "../directory-require.rkt"))] will re-export everything.}
 
 Let's see how this works in practice. In the same directory as @filepath{article.html.pm}, create a new @filepath{directory-require.rkt} file as follows:
 
diff --git a/scribblings/world.scrbl b/scribblings/world.scrbl
index 4e7e543..47107a5 100644
--- a/scribblings/world.scrbl
+++ b/scribblings/world.scrbl
@@ -68,8 +68,6 @@ Determines the default HTTP port for the project server. Initialized to @racket[
 
 @defoverridable[meta-tag-name symbol?]{Name of the tag used to mark metas within Pollen source.}
 
-@defoverridable[directory-require string?]{File implicitly required into every Pollen source file from its directory. Initialized to @filepath{directory-require.rkt}.}
-
 @defoverridable[server-extras-dir string?]{Name of directory where server support files live. Initialized to @tt{server-extras}.}
 
 @defoverridable[extension-escape-char char?]{Character for escaping output-file extensions within source-file names. Initialized to @racket[#\!].}
diff --git a/test/data/pathup/directory-require.rkt b/test/data/pathup/directory-require.rkt
new file mode 100644
index 0000000..1febe6b
--- /dev/null
+++ b/test/data/pathup/directory-require.rkt
@@ -0,0 +1,8 @@
+#lang racket/base
+(provide (all-defined-out))
+
+(define (root . xs)
+  `(one ,@xs))
+
+(define (puppy)
+  "one")
\ No newline at end of file
diff --git a/test/data/pathup/subdir/subdir/directory-require.rkt b/test/data/pathup/subdir/subdir/directory-require.rkt
new file mode 100644
index 0000000..1ea7a73
--- /dev/null
+++ b/test/data/pathup/subdir/subdir/directory-require.rkt
@@ -0,0 +1,8 @@
+#lang racket/base
+(provide (all-defined-out))
+
+(define (root . xs)
+  `(two ,@xs))
+
+(define (puppy)
+  "two")
\ No newline at end of file
diff --git a/test/data/pathup/subdir/subdir/test-pathup-two.html.pm b/test/data/pathup/subdir/subdir/test-pathup-two.html.pm
new file mode 100644
index 0000000..e217321
--- /dev/null
+++ b/test/data/pathup/subdir/subdir/test-pathup-two.html.pm
@@ -0,0 +1,2 @@
+#lang pollen
+◊(puppy)
\ No newline at end of file
diff --git a/test/data/pathup/subdir/test-pathup-one.html.pm b/test/data/pathup/subdir/test-pathup-one.html.pm
new file mode 100644
index 0000000..e217321
--- /dev/null
+++ b/test/data/pathup/subdir/test-pathup-one.html.pm
@@ -0,0 +1,2 @@
+#lang pollen
+◊(puppy)
\ No newline at end of file
diff --git a/test/test-pathup.rkt b/test/test-pathup.rkt
new file mode 100644
index 0000000..a4a7a66
--- /dev/null
+++ b/test/test-pathup.rkt
@@ -0,0 +1,11 @@
+#lang at-exp racket/base
+(require rackunit racket/runtime-path pollen/project)
+
+(define-runtime-path pathup-one "data/pathup/subdir/test-pathup-one.html.pm")
+(define-runtime-path dr-top "data/pathup/directory-require.rkt")
+(define-runtime-path pathup-two "data/pathup/subdir/subdir/test-pathup-two.html.pm")
+(define-runtime-path dr-sub "data/pathup/subdir/subdir/directory-require.rkt")
+
+(check-false (get-directory-require-files "test-pathup.rkt"))
+(check-equal? (get-directory-require-files pathup-one) (list dr-top))
+(check-equal? (get-directory-require-files pathup-two) (list dr-sub))
\ No newline at end of file