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+# `file:` specifiers
+
+`specifier` refers to the value part of the `package.json`'s `dependencies`
+object.  This is a semver expression for registry dependencies and
+URLs and URL-like strings for other types.
+
+### Dependency Specifiers
+
+* A `file:` specifier is either an absolute path (eg `/path/to/thing`, `d:\path\to\thing`):
+  * An absolute `file:///absolute/path` with any number of leading slashes
+    being treated as a single slash. That is, `file:/foo/bar` and
+    `file:///foo/bar` reference the same package.
+* … or a relative path (eg `../path/to/thing`, `path\to\subdir`).  Leading
+  slashes on a file specifier will be removed, that is 'file://../foo/bar`
+  references the same package as same as `file:../foo/bar`.  The latter is
+  considered canonical.
+* Attempting to install a specifier that has a windows drive letter will
+  produce an error on non-Windows systems.
+* A valid `file:` specifier points is:
+  * a valid package file. That is, a `.tar`, `.tar.gz` or `.tgz` containing
+  `<dir>/package.json`.
+  * OR, a directory that contains a `package.json`
+
+Relative specifiers are relative to the file they were found in, or, if
+provided on the command line, the CWD that the command was run from.
+
+An absolute specifier found in a `package.json` or `npm-shrinkwrap.json` is
+probably an error as it's unlikely to be portable between computers and
+should warn.
+
+A specifier provided as a command line argument that is on a different drive
+is an error.  That is, `npm install file:d:/foo/bar` is an error if the
+current drive is `c`.  The point of this rule is that if we can't produce a
+relative path then it's an error.
+
+### Specifier Disambiguation
+
+On the command line, plain paths are allowed.  These paths can be ambiguous
+as they could be a path, a plain package name or a github shortcut.  This
+ambiguity is resolved by checking to see if either a directory exists that
+contains a `package.json`.  If either is the case then the specifier is a
+file specifier, otherwise it's a registry or github specifier.
+
+### Specifier Matching
+
+A specifier is considered to match a dependency on disk when the `realpath`
+of the fully resolved specifier matches the `realpath` of the package on disk.
+
+### Saving File Specifiers
+
+When saving to both `package.json` and `npm-shrinkwrap.json` they will be
+saved using the `file:../relative/path` form, and the relative path will be
+relative to the project's root folder.  This is particularly important to
+note for the `npm-shrinkwrap.json` as it means the specifier there will
+be different then the original `package.json` (where it was relative to that
+`package.json`).
+
+When shrinkwrapping file specifiers, the contents of the destination
+package's `node_modules` WILL NOT be included in the shrinkwrap. If you want to lock
+down the destination package's `node_modules` you should create a shrinkwrap for it
+separately.
+
+This is necessary to support the mono repo use case where many projects file
+to the same package.  If each project included its own `npm-shrinkwrap.json`
+then they would each have their own distinct set of transitive dependencies
+and they'd step on each other any time you ran an install in one or the other.
+
+NOTE: This should not have an effect on shrinkwrapping of other sorts of
+shrinkwrapped packages.
+
+### Installation
+
+#### File type specifiers pointing at tarballs
+
+File-type specifiers pointing at a `.tgz` or `.tar.gz` or `.tar` file will
+install it as a package file in the same way we would a remote tarball.  The
+checksum of the package file should be recorded so that we can check for updates.
+
+#### File type specifers pointing at directories
+
+File-type specifiers that point at directories will necessarily not do
+anything for `fetch` and `extract` phases.
+
+The symlink should be created during the `finalize` phase.
+
+The `preinstall` for file-type specifiers MUST be run AFTER the
+`finalize` phase as the symlink may be a relative path reaching outside the
+current project root and a symlink that resolves in `.staging` won't resolve
+in the package's final resting place.
+
+If the module is inside the package root that we're running the install for then
+dependencies of the linked package will be hoisted to the top level as usual.
+
+If the module is outside the package root then dependencies will be installed inside
+the linked module's `node_modules` folder.
+
+### Removal
+
+Removal should remove the symlink.
+
+Removal MUST NOT remove the transitive dependencies IF they're installed in
+the linked module's `node_modules` folder.
+
+### Listing
+
+In listings they should not include a version as the version is not
+something `npm` is concerned about.  This also makes them easily
+distinguishable from symlinks of packages that have other dependency
+specifiers.
+
+If you had run:
+
+```
+npm install --save file:../a
+```
+
+And then run:
+```
+npm ls
+```
+
+You would see:
+
+```
+example-package@1.0.0 /path/to/example-package
+└── a → file:../a
+```
+
+```
+example-package@1.0.0 /path/to/example-package
++-- a -> file:../a
+```
+
+Of note here: No version is included as the relevant detail is WHERE the
+package came from, not what version happened to be in that path.
+
+### Outdated
+
+Local specifiers should only show up in `npm outdated` if they're missing
+and when they do, they should be reported as:
+
+```
+Package  Current  Wanted  Latest  Location
+a        MISSING   LOCAL   LOCAL  example-package
+```
+
+### Updating
+
+If a dependency with a local specifier is already installed then `npm
+update` shouldn't do anything.  If one is missing then it should be
+installed as if you ran `npm install`.