diff --git a/tests/test_phase1.py b/tests/test_phase1.py
index <HASH>..<HASH> 100644
--- a/tests/test_phase1.py
+++ b/tests/test_phase1.py
@@ -58,3 +58,8 @@ class TestPhase1(fake_filesystem_unittest.TestCase):
         self.fs.create_file('/a', contents="include { file myVar }")
         with self.assertRaises(TypeError):
             phase1.load('/a')
+
+    def test_step_path(self):
+        self.fs.create_file('/a/b/c.trask', contents="set {}")
+        result = phase1.load('/a/b/c.trask')
+        self.assertEqual(result[0].path, '/a/b')
diff --git a/trask/phase1.py b/trask/phase1.py
index <HASH>..<HASH> 100644
--- a/trask/phase1.py
+++ b/trask/phase1.py
@@ -61,7 +61,7 @@ def expand_includes(step, path):
         new_path = os.path.abspath(os.path.join(dirname, rel_path))
         return load(new_path)
     else:
-        step.path = path
+        step.path = os.path.dirname(path)
         return [step]
Fix step path again and add a test