diff --git a/packages/react-scripts/config/webpack.config.dev.js b/packages/react-scripts/config/webpack.config.dev.js
index d875c63e8d9..c2b544cca54 100644
--- a/packages/react-scripts/config/webpack.config.dev.js
+++ b/packages/react-scripts/config/webpack.config.dev.js
@@ -12,7 +12,6 @@
 var path = require('path');
 var autoprefixer = require('autoprefixer');
 var webpack = require('webpack');
-var findCacheDir = require('find-cache-dir');
 var HtmlWebpackPlugin = require('html-webpack-plugin');
 var CaseSensitivePathsPlugin = require('case-sensitive-paths-webpack-plugin');
 var InterpolateHtmlPlugin = require('react-dev-utils/InterpolateHtmlPlugin');
@@ -122,12 +121,9 @@ module.exports = {
           presets: [require.resolve('babel-preset-react-app')],
           // @remove-on-eject-end
           // This is a feature of `babel-loader` for webpack (not Babel itself).
-          // It enables caching results in ./node_modules/.cache/react-scripts/
-          // directory for faster rebuilds. We use findCacheDir() because of:
-          // https://github.com/facebookincubator/create-react-app/issues/483
-          cacheDirectory: findCacheDir({
-            name: 'react-scripts'
-          })
+          // It enables caching results in ./node_modules/.cache/babel-loader/
+          // directory for faster rebuilds.
+          cacheDirectory: true
         }
       },
       // "postcss" loader applies autoprefixer to our CSS.
diff --git a/packages/react-scripts/package.json b/packages/react-scripts/package.json
index 58bb4ab1d06..b4cad963979 100644
--- a/packages/react-scripts/package.json
+++ b/packages/react-scripts/package.json
@@ -27,7 +27,7 @@
     "babel-core": "6.17.0",
     "babel-eslint": "7.0.0",
     "babel-jest": "16.0.0",
-    "babel-loader": "6.2.5",
+    "babel-loader": "6.2.7",
     "babel-preset-react-app": "^1.0.0",
     "case-sensitive-paths-webpack-plugin": "1.1.4",
     "chalk": "1.1.3",
@@ -46,7 +46,6 @@
     "extract-text-webpack-plugin": "1.0.1",
     "file-loader": "0.9.0",
     "filesize": "3.3.0",
-    "find-cache-dir": "0.1.1",
     "fs-extra": "0.30.0",
     "gzip-size": "3.0.0",
     "html-webpack-plugin": "2.24.0",