diff --git a/Makefile b/Makefile
index 1e5abb4c3b5..3c287b77323 100644
--- a/Makefile
+++ b/Makefile
@@ -28,11 +28,14 @@ gx_upgrade:
 gxgo_upgrade:
 	go get -u github.com/whyrusleeping/gx-go
 
+path_check:
+	@bin/check_go_path $(realpath $(shell pwd))
+
 gx_check:
 	@bin/check_gx_program "gx" "0.3" 'Upgrade or install gx using your package manager or run `make gx_upgrade`'
 	@bin/check_gx_program "gx-go" "0.2" 'Upgrade or install gx-go using your package manager or run `make gxgo_upgrade`'
 
-deps: go_check gx_check
+deps: go_check gx_check path_check
 	gx --verbose install --global
 
 # saves/vendors third-party dependencies to Godeps/_workspace
diff --git a/bin/check_go_path b/bin/check_go_path
new file mode 100755
index 00000000000..cc78615a5d9
--- /dev/null
+++ b/bin/check_go_path
@@ -0,0 +1,21 @@
+#!/bin/sh
+
+PWD=$1
+
+if [ -z "$PWD" ]; then
+	echo "must pass in your current working directory"
+	exit 1
+fi
+
+if [ -z "$GOPATH" ]; then
+	echo "GOPATH not set, you must have go configured properly to install ipfs"
+	exit 1
+fi
+
+EXPECTED="$GOPATH/src/github.com/ipfs/go-ipfs"
+
+if [ "$PWD" != "$EXPECTED" ]; then
+	echo "go-ipfs must be built from within your \$GOPATH directory."
+	echo "expected '$EXPECTED' but got '$PWD'"
+	exit 1
+fi