diff --git a/doc/configuration.rst b/doc/configuration.rst
index 7aae3689..a0a00f21 100644
--- a/doc/configuration.rst
+++ b/doc/configuration.rst
@@ -1227,6 +1227,14 @@ Image Build Settings
     based on current variant. You can use ``install_tree_from`` key to use
     install tree from another variant.
 
+    Both the install tree and repos can use one of following formats:
+
+     * URL to the location
+     * name of variant in the current compose
+     * absolute path on local filesystem (which will be translated using
+       configured mappings or used unchanged, in which case you have to ensure
+       the koji builders can access it)
+
     You can set either a single format, or a list of formats. For available
     values see help output for ``koji image-build`` command.
 
diff --git a/pungi/phases/image_build.py b/pungi/phases/image_build.py
index 8e4b8c2c..3fce8871 100644
--- a/pungi/phases/image_build.py
+++ b/pungi/phases/image_build.py
@@ -60,7 +60,12 @@ class ImageBuildPhase(base.PhaseLoggerMixin, base.ImageConfigMixin, base.ConfigG
 
         install_tree_from = image_conf.pop('install_tree_from', variant.uid)
         if '://' in install_tree_from:
+            # It's a URL, return it unchanged
             return install_tree_from
+        if install_tree_from.startswith("/"):
+            # It's a path on local filesystem.
+            return translate_path(self.compose, install_tree_from)
+
         install_tree_source = self.compose.all_variants.get(install_tree_from)
         if not install_tree_source:
             raise RuntimeError(
diff --git a/pungi/util.py b/pungi/util.py
index f878a83c..83c07192 100644
--- a/pungi/util.py
+++ b/pungi/util.py
@@ -731,6 +731,9 @@ def get_repo_url(compose, repo, arch='$basearch'):
             repo = repo['baseurl']
         except KeyError:
             raise RuntimeError('Baseurl is required in repo dict %s' % str(repo))
+    if repo.startswith("/"):
+        # It's an absolute path, translate it and return it
+        return translate_path(compose, repo)
     if '://' not in repo:
         # this is a variant name
         if compose is not None:
diff --git a/tests/test_imagebuildphase.py b/tests/test_imagebuildphase.py
index fad8a820..d163929c 100644
--- a/tests/test_imagebuildphase.py
+++ b/tests/test_imagebuildphase.py
@@ -313,6 +313,67 @@ class TestImageBuildPhase(PungiTestCase):
             "scratch": False,
         })
 
+    @mock.patch("pungi.phases.image_build.ThreadPool")
+    def test_image_build_set_install_tree_from_path(self, ThreadPool):
+        compose = DummyCompose(self.topdir, {
+            "image_build": {
+                "^Server$": [
+                    {
+                        "image-build": {
+                            "format": ["docker"],
+                            "name": "Fedora-Docker-Base",
+                            "target": "f24",
+                            "version": "Rawhide",
+                            "ksurl": "git://git.fedorahosted.org/git/spin-kickstarts.git",
+                            "kickstart": "fedora-docker-base.ks",
+                            "distro": "Fedora-20",
+                            "disk_size": 3,
+                            "arches": ["x86_64"],
+                            "install_tree_from": "/my/tree",
+                        }
+                    }
+                ]
+            },
+            "koji_profile": "koji",
+            "translate_paths": [("/my", "http://example.com")],
+        })
+
+        self.assertValidConfig(compose.conf)
+
+        phase = ImageBuildPhase(compose)
+
+        phase.run()
+
+        # assert at least one thread was started
+        self.assertTrue(phase.pool.add.called)
+
+        self.assertTrue(phase.pool.queue_put.called_once)
+        args, kwargs = phase.pool.queue_put.call_args
+        self.assertEqual(args[0][0], compose)
+        self.assertDictEqual(args[0][1], {
+            "image_conf": {
+                "image-build": {
+                    "install_tree": "http://example.com/tree",
+                    "kickstart": "fedora-docker-base.ks",
+                    "format": ["docker"],
+                    "repo": self.topdir + "/compose/Server/$arch/os",
+                    "variant": compose.variants["Server"],
+                    "target": "f24",
+                    "disk_size": 3,
+                    "name": "Fedora-Docker-Base",
+                    "arches": ["x86_64"],
+                    "version": "Rawhide",
+                    "ksurl": "git://git.fedorahosted.org/git/spin-kickstarts.git",
+                    "distro": "Fedora-20",
+                }
+            },
+            "conf_file": self.topdir + "/work/image-build/Server/docker_Fedora-Docker-Base_x86_64.cfg",
+            "image_dir": self.topdir + "/compose/Server/%(arch)s/images",
+            "relative_image_dir": "Server/%(arch)s/images",
+            "link_type": "hardlink-or-copy",
+            "scratch": False,
+        })
+
     @mock.patch('pungi.phases.image_build.ThreadPool')
     def test_image_build_set_extra_repos(self, ThreadPool):
         compose = DummyCompose(self.topdir, {
diff --git a/tests/test_util.py b/tests/test_util.py
index 04e3c883..34023a47 100644
--- a/tests/test_util.py
+++ b/tests/test_util.py
@@ -626,6 +626,10 @@ class GetRepoFuncsTestCase(unittest.TestCase):
         url = util.get_repo_url(self.compose, 'http://example.com/repo')
         self.assertEqual(url, 'http://example.com/repo')
 
+    def test_get_repo_url_from_path(self):
+        url = util.get_repo_url(self.compose, os.path.join(self.tmp_dir, "repo"))
+        self.assertEqual(url, "http://example.com/repo")
+
     def test_get_repo_url_from_variant_uid(self):
         url = util.get_repo_url(self.compose, 'Server')
         self.assertEqual(url, 'http://example.com/RHEL-8.0-20180101.n.0/compose/Server/$basearch/os')