diff --git a/src/main/java/org/codehaus/mojo/jaxb2/javageneration/AbstractJavaGeneratorMojo.java b/src/main/java/org/codehaus/mojo/jaxb2/javageneration/AbstractJavaGeneratorMojo.java
index <HASH>..<HASH> 100644
--- a/src/main/java/org/codehaus/mojo/jaxb2/javageneration/AbstractJavaGeneratorMojo.java
+++ b/src/main/java/org/codehaus/mojo/jaxb2/javageneration/AbstractJavaGeneratorMojo.java
@@ -615,7 +615,7 @@ public abstract class AbstractJavaGeneratorMojo extends AbstractJaxbMojo {
                 if ("file".equalsIgnoreCase(current.getProtocol())) {
                     unwrappedSourceXSDs.add(FileSystemUtilities.relativize(
                             current.getPath(),
-                            getProject().getBasedir()));
+                            new File(System.getProperty("user.dir"))));
                 } else {
                     unwrappedSourceXSDs.add(current.toString());
                 }
Fixes #5 XSD files computed relative to current directory