diff --git a/packages/flutter_tools/lib/src/commands/flutter_command_runner.dart b/packages/flutter_tools/lib/src/commands/flutter_command_runner.dart
index 74c55d966c..65dc778a29 100644
--- a/packages/flutter_tools/lib/src/commands/flutter_command_runner.dart
+++ b/packages/flutter_tools/lib/src/commands/flutter_command_runner.dart
@@ -8,6 +8,7 @@ import 'dart:io';
 import 'package:args/args.dart';
 import 'package:args/command_runner.dart';
 import 'package:logging/logging.dart';
+import 'package:path/path.dart' as path;
 
 import '../artifacts.dart';
 import '../build_configuration.dart';
@@ -30,49 +31,55 @@ class FlutterCommandRunner extends CommandRunner {
     argParser.addFlag('debug',
         negatable: false,
         help:
-            'Set this if you are building Sky locally and want to use the debug build products. '
-            'When set, attempts to automaticaly determine sky-src-path if sky-src-path is '
+            'Set this if you are building Flutter locally and want to use the debug build products. '
+            'When set, attempts to automaticaly determine engine-src-path if engine-src-path is '
             'not set. Not normally required.');
     argParser.addFlag('release',
         negatable: false,
         help:
-            'Set this if you are building Sky locally and want to use the release build products. '
-            'When set, attempts to automaticaly determine sky-src-path if sky-src-path is '
+            'Set this if you are building Flutter locally and want to use the release build products. '
+            'When set, attempts to automaticaly determine engine-src-path if engine-src-path is '
             'not set. Note that release is not compatible with the listen command '
             'on iOS devices and simulators. Not normally required.');
-    argParser.addOption('sky-src-path',
+    argParser.addFlag('local-build',
+        negatable: false,
         help:
-            'Path to your Sky src directory, if you are building Sky locally. '
+            'Automatically detect your engine src directory from an overridden Flutter package.'
+            'Useful if you are building Flutter locally and are using a dependency_override for'
+            'the Flutter package that points to your engine src directory.');
+    argParser.addOption('engine-src-path',
+        help:
+            'Path to your engine src directory, if you are building Flutter locally. '
             'Ignored if neither debug nor release is set. Not normally required.');
     argParser.addOption('android-debug-build-path',
         help:
-            'Path to your Android Debug out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'Path to your Android Debug out directory, if you are building Flutter locally. '
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/android_Debug/');
     argParser.addOption('android-release-build-path',
         help:
-            'Path to your Android Release out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'Path to your Android Release out directory, if you are building Flutter locally. '
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/android_Release/');
     argParser.addOption('ios-debug-build-path',
         help:
-            'Path to your iOS Debug out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'Path to your iOS Debug out directory, if you are building Flutter locally. '
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/ios_Debug/');
     argParser.addOption('ios-release-build-path',
         help:
-            'Path to your iOS Release out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'Path to your iOS Release out directory, if you are building Flutter locally. '
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/ios_Release/');
     argParser.addOption('ios-sim-debug-build-path',
         help:
             'Path to your iOS Simulator Debug out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/ios_sim_Debug/');
     argParser.addOption('ios-sim-release-build-path',
         help:
             'Path to your iOS Simulator Release out directory, if you are building Sky locally. '
-            'This path is relative to sky-src-path. Not normally required.',
+            'This path is relative to engine-src-path. Not normally required.',
         defaultsTo: 'out/ios_sim_Release/');
     argParser.addOption('package-root',
         help: 'Path to your packages directory.', defaultsTo: 'packages');
@@ -106,8 +113,18 @@ class FlutterCommandRunner extends CommandRunner {
   }
 
   List<BuildConfiguration> _createBuildConfigurations(ArgResults globalResults) {
-    // TODO(iansf): Figure out how to get the default src path
-    String enginePath = globalResults['sky-src-path'];
+    String enginePath = globalResults['engine-src-path'];
+    bool isDebug = globalResults['debug'];
+    bool isRelease = globalResults['release'];
+
+    if (enginePath == null && globalResults['local-build']) {
+      Directory flutterDir = new Directory(path.join(globalResults['package-root'], 'flutter'));
+      String realFlutterPath = flutterDir.resolveSymbolicLinksSync();
+
+      enginePath = path.dirname(path.dirname(path.dirname(path.dirname(realFlutterPath))));
+      if (enginePath == '/' || enginePath.isEmpty)
+        enginePath = null;
+    }
 
     List<BuildConfiguration> configs = <BuildConfiguration>[];
 
@@ -117,7 +134,10 @@ class FlutterCommandRunner extends CommandRunner {
       if (!FileSystemEntity.isDirectorySync(enginePath))
         _logging.warning('$enginePath is not a valid directory');
 
-      if (globalResults['debug']) {
+      if (!isDebug && !isRelease)
+        isDebug = true;
+
+      if (isDebug) {
         configs.add(new BuildConfiguration.local(
           type: BuildType.debug,
           platform: BuildPlatform.android,
@@ -142,7 +162,7 @@ class FlutterCommandRunner extends CommandRunner {
         }
       }
 
-      if (globalResults['release']) {
+      if (isRelease) {
         configs.add(new BuildConfiguration.local(
           type: BuildType.release,
           platform: BuildPlatform.android,