diff --git a/CHANGELOG.md b/CHANGELOG.md
index 27ae6e023..66f8dadc9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@
 Changes to Calva.
 
 ## [Unreleased]
+- [Fix step into local dep with debugger](https://github.com/BetterThanTomorrow/calva/issues/893)
 
 ## [2.0.137 - 2020-12-24]
 - [Bring in clojure-lsp](https://github.com/BetterThanTomorrow/calva/pull/572)
diff --git a/src/debugger/calva-debug.ts b/src/debugger/calva-debug.ts
index b3c18f627..d883e9ae0 100644
--- a/src/debugger/calva-debug.ts
+++ b/src/debugger/calva-debug.ts
@@ -14,7 +14,6 @@ import annotations from '../providers/annotations';
 import { NReplSession } from '../nrepl';
 import debugDecorations from './decorations';
 import * as namespace from '../namespace';
-import { removeFileSchemeFromUri } from '../util/string';
 
 const CALVA_DEBUG_CONFIGURATION: DebugConfiguration = {
     type: 'clojure',
@@ -177,8 +176,7 @@ class CalvaDebugSession extends LoggingDebugSession {
     protected async stackTraceRequest(response: DebugProtocol.StackTraceResponse, args: DebugProtocol.StackTraceArguments, request?: DebugProtocol.Request): Promise<void> {
 
         const debugResponse = state.deref().get(DEBUG_RESPONSE_KEY);
-        const filePath = removeFileSchemeFromUri(debugResponse.file);
-        const document = await vscode.workspace.openTextDocument(filePath);
+        const document = await vscode.workspace.openTextDocument(vscode.Uri.parse(debugResponse.file));
         const positionLine = convertOneBasedToZeroBased(debugResponse.line);
         const positionColumn = convertOneBasedToZeroBased(debugResponse.column);
         const offset = document.offsetAt(new Position(positionLine, positionColumn));
@@ -196,7 +194,8 @@ class CalvaDebugSession extends LoggingDebugSession {
 
         const [line, column] = tokenCursor.rowCol;
 
-        const source = new Source(basename(filePath), filePath);
+        // Pass scheme in path argument to Source contructor so that if it's a jar file it's handled correctly
+        const source = new Source(basename(debugResponse.file), debugResponse.file);
         const name = tokenCursor.getFunction();
         const stackFrames = [new StackFrame(0, name, source, line + 1, column + 1)];
 
diff --git a/src/extension-test/unit/util/string-test.ts b/src/extension-test/unit/util/string-test.ts
index d35a806b4..539380681 100644
--- a/src/extension-test/unit/util/string-test.ts
+++ b/src/extension-test/unit/util/string-test.ts
@@ -1,6 +1,5 @@
 import * as expect from 'expect';
-import { keywordize, unKeywordize, getIndexAfterLastNonWhitespace, getTextAfterLastOccurrenceOfSubstring,
-  removeFileSchemeFromUri } from '../../../util/string';
+import { keywordize, unKeywordize, getIndexAfterLastNonWhitespace, getTextAfterLastOccurrenceOfSubstring } from '../../../util/string';
 
 
 describe('string', () => {
@@ -48,13 +47,4 @@ describe('string', () => {
       expect('\n\t foo \n\t').toBe(getTextAfterLastOccurrenceOfSubstring('hello > world >\n\t foo \n\t', '>'));
     });
   });
-
-  describe('removeFileSchemeFromUri', () => {
-    it('removes "file:" from the beginning of a uri', () => {
-      expect(removeFileSchemeFromUri('file:/some/path')).toBe('/some/path');
-    });
-    it ('returns same uri if it does not start with "file:"', () => {
-      expect(removeFileSchemeFromUri('/some/path')).toBe('/some/path');
-    });
-  });
 });
\ No newline at end of file
diff --git a/src/testRunner.ts b/src/testRunner.ts
index f1bc0b22a..189e146e2 100644
--- a/src/testRunner.ts
+++ b/src/testRunner.ts
@@ -6,7 +6,6 @@ import { disabledPrettyPrinter } from './printer';
 import * as outputWindow from './results-output/results-doc';
 import { NReplSession } from './nrepl';
 import * as namespace from './namespace';
-import { removeFileSchemeFromUri } from './util/string';
 
 let diagnosticCollection = vscode.languages.createDiagnosticCollection('calva');
 
@@ -121,9 +120,10 @@ function runAllTestsCommand() {
 async function considerTestNS(ns: string, session: NReplSession, nss: string[]): Promise<string[]> {
     if (!ns.endsWith('-test')) {
         const testNS = ns + '-test';
-        const testFilePath = (await session.nsPath(testNS)).path;
+        const nsPath = await session.nsPath(testNS);
+        const testFilePath = nsPath.path;
         if (testFilePath && testFilePath !== "") {
-            const filePath = removeFileSchemeFromUri(testFilePath);
+            const filePath = vscode.Uri.parse(testFilePath).path;
             let loadForms = `(load-file "${filePath}")`;
             await session.eval(loadForms, testNS).value;
         }
diff --git a/src/util/string.ts b/src/util/string.ts
index 394acdf3f..83f8c54dc 100644
--- a/src/util/string.ts
+++ b/src/util/string.ts
@@ -33,14 +33,9 @@ function getTextAfterLastOccurrenceOfSubstring(text: string, substring: string):
     return text.substring(indexOfEndOfPrompt);
 }
 
-function removeFileSchemeFromUri(uri: string): string {
-    return uri.replace(/^(file:)/, '');
-}
-
 export {
     keywordize,
     unKeywordize,
     getIndexAfterLastNonWhitespace,
-    getTextAfterLastOccurrenceOfSubstring,
-    removeFileSchemeFromUri
+    getTextAfterLastOccurrenceOfSubstring
 }
\ No newline at end of file