diff --git a/app/Spago.hs b/app/Spago.hs
index e23aff753..ad48fac4a 100644
--- a/app/Spago.hs
+++ b/app/Spago.hs
@@ -163,7 +163,8 @@ parser = do
     packageName     = CLI.arg (Just . PackageName) "package" "Specify a package name. You can list them with `list-packages`"
     packageNames    = many $ CLI.arg (Just . PackageName) "package" "Package name to add as dependency"
     pursArgs        = many $ CLI.opt (Just . ExtraArg) "purs-args" 'u' "Argument to pass to purs"
-    useSharedOutput = bool ShareOutput NoShareOutput <$> CLI.switch "no-share-output" 'S' "Disabled using a shared output folder in location of root packages.dhall"
+    -- See https://github.com/spacchetti/spago/pull/526 for why this flag is disabled
+    useSharedOutput = bool NoShareOutput NoShareOutput <$> CLI.switch "no-share-output" 'S' "DEPRECATED: Disabled using a shared output folder in location of root packages.dhall"
     buildOptions  = BuildOptions <$> cacheFlag <*> watch <*> clearScreen <*> sourcePaths <*> noInstall <*> pursArgs <*> depsOnly <*> useSharedOutput
 
     -- Note: by default we limit concurrency to 20
diff --git a/src/Spago/Build.hs b/src/Spago/Build.hs
index 93dfc2d1f..de5b8786f 100644
--- a/src/Spago/Build.hs
+++ b/src/Spago/Build.hs
@@ -95,7 +95,7 @@ build buildOpts@BuildOptions{..} maybePostBuild = do
     NoInstall -> pure ()
   sharedOutputArgs <- case shareOutput of
     ShareOutput   -> getBuildArgsForSharedFolder buildOpts
-    NoShareOutput -> pure []
+    NoShareOutput -> pure pursArgs
   let allPsGlobs = Packages.getGlobs   deps depsOnly configSourcePaths <> sourcePaths
       allJsGlobs = Packages.getJsGlobs deps depsOnly configSourcePaths <> sourcePaths
 
diff --git a/test/SpagoSpec.hs b/test/SpagoSpec.hs
index 050349b5a..4cc46e542 100644
--- a/test/SpagoSpec.hs
+++ b/test/SpagoSpec.hs
@@ -340,7 +340,7 @@ spec = around_ setup $ do
       rm "packages.dhall"
       writeTextFile "packages.dhall" $ "../../packages.dhall"
       spago ["build"] >>= shouldBeSuccess
-      testdir "output" `shouldReturn` False
+      testdir "output" `shouldReturn` True
 
       cd ".."
       testdir "output" `shouldReturn` True
@@ -380,11 +380,11 @@ spec = around_ setup $ do
       spago ["build"] >>= shouldBeSuccess
 
       -- don't use nested folder
-      testdir "output" `shouldReturn` False
+      testdir "output" `shouldReturn` True
 
       -- use middle one
       cd ".."
-      testdir "output" `shouldReturn` True
+      testdir "output" `shouldReturn` False
 
       -- not the trick root folder
       cd ".."
@@ -407,10 +407,10 @@ spec = around_ setup $ do
       rm "spago.dhall"
       writeTextFile "spago.dhall" $ "{ name = \"lib-1\", license = \"MIT\", repository = \"https://github.com/fake/lib-1.git\", dependencies = [\"console\", \"effect\", \"prelude\"], sources = [\"src/**/*.purs\"], packages = ./packages.dhall }"
       spago ["build"] >>= shouldBeSuccess
-      testdir "output" `shouldReturn` False
+      testdir "output" `shouldReturn` True
 
       cd ".."
-      testdir "output" `shouldReturn` True
+      testdir "output" `shouldReturn` False
 
     describe "alternate backend" $ do
 
@@ -474,10 +474,10 @@ spec = around_ setup $ do
       rm "packages.dhall"
       writeTextFile "packages.dhall" $ "../packages.dhall"
       spago ["test"] >>= shouldBeSuccess
-      testdir "output" `shouldReturn` False
+      testdir "output" `shouldReturn` True
 
       cd ".."
-      testdir "output" `shouldReturn` True
+      testdir "output" `shouldReturn` False
 
     it "Spago should test successfully with --no-share-output" $ do
 
@@ -609,7 +609,7 @@ spec = around_ setup $ do
       spago ["init"] >>= shouldBeSuccess
       rm "packages.dhall"
       writeTextFile "packages.dhall" $ "../packages.dhall"
-      spago ["path", "output"] >>= outputShouldEqual "./../output\n"
+      spago ["path", "output"] >>= outputShouldEqual "output\n"
       pure ()
 
     it "Spago should output the local path when no overrides" $ do
diff --git a/test/fixtures/run-no-psa-stderr.txt b/test/fixtures/run-no-psa-stderr.txt
index 50443ddcc..adf397f95 100644
--- a/test/fixtures/run-no-psa-stderr.txt
+++ b/test/fixtures/run-no-psa-stderr.txt
@@ -9,9 +9,8 @@ Running `getGlobalCacheDir`
 [debug] Running `fetchPackages`
 [debug] Checking if `purs` is up to date
 [info] Installation complete.
-[debug] Locating root path of packages.dhall
 [debug] Compiling with "purs"
-[debug] Running command: `purs compile --output ./output ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
+[debug] Running command: `purs compile  ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
 [info] Build succeeded.
 [debug] Locating root path of packages.dhall
 [debug] Writing .spago/run.js
diff --git a/test/fixtures/run-psa-not-installed-stderr.txt b/test/fixtures/run-psa-not-installed-stderr.txt
index b53233d04..761678dbe 100644
--- a/test/fixtures/run-psa-not-installed-stderr.txt
+++ b/test/fixtures/run-psa-not-installed-stderr.txt
@@ -9,10 +9,9 @@ Running `getGlobalCacheDir`
 [debug] Running `fetchPackages`
 [debug] Checking if `purs` is up to date
 [info] Installation complete.
-[debug] Locating root path of packages.dhall
 [debug] Failed to run 'psa --version'
 [debug] Compiling with "purs"
-[debug] Running command: `purs compile --output ./output ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
+[debug] Running command: `purs compile  ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
 [info] Build succeeded.
 [debug] Locating root path of packages.dhall
 [debug] Writing .spago/run.js
diff --git a/test/fixtures/run-stderr.txt b/test/fixtures/run-stderr.txt
index 8674f6cd6..21cb035f0 100644
--- a/test/fixtures/run-stderr.txt
+++ b/test/fixtures/run-stderr.txt
@@ -9,9 +9,8 @@ Running `getGlobalCacheDir`
 [debug] Running `fetchPackages`
 [debug] Checking if `purs` is up to date
 [info] Installation complete.
-[debug] Locating root path of packages.dhall
 [debug] Compiling with "psa"
-[debug] Running command: `psa compile --output ./output ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
+[debug] Running command: `psa compile  ".spago/console/v4.2.0/src/**/*.purs" ".spago/effect/v2.0.1/src/**/*.purs" ".spago/prelude/v4.1.1/src/**/*.purs" ".spago/psci-support/v4.0.0/src/**/*.purs" "src/**/*.purs" "test/**/*.purs"`
            Src   Lib   All
 Warnings   0     0     0  
 Errors     0     0     0