diff --git a/modules/user/direnv.nix b/modules/user/direnv.nix
index 05e8909..3f54b94 100644
--- a/modules/user/direnv.nix
+++ b/modules/user/direnv.nix
@@ -1,4 +1,4 @@
-{ config, ...}: {
+{ config, lib, ... }: {
   programs.direnv = {
     enable = true;
     nix-direnv = {
@@ -8,4 +8,9 @@
   programs.git.extraConfig.core.excludesFile = ".envrc";
   # We can't use .source since hm manages this file too
   xdg.configFile."direnv/direnvrc".text = builtins.readFile ../../res/direnvrc;
+  home.activation = {
+    direnvClearCache = lib.hm.dag.entryAfter ["writeBoundary"] ''
+      $DRY_RUN_CMD rm -rf $VERBOSE_ARG $HOME/.cache/direnv/layouts
+    '';
+  };
 }
diff --git a/res/direnvrc b/res/direnvrc
index 59902be..6de68b0 100644
--- a/res/direnvrc
+++ b/res/direnvrc
@@ -4,5 +4,7 @@ direnv_layout_dir() {
     echo "${direnv_layout_dirs[$PWD]:=$(
         echo -n "$XDG_CACHE_HOME"/direnv/layouts/
         echo -n "$PWD" | shasum | cut -d ' ' -f 1
+        echo -n "-"
+        basename $PWD
     )}"
 }