diff --git a/crates/uv-resolver/src/exclusions.rs b/crates/uv-resolver/src/exclusions.rs
index 658517db3f97..7b691d27e2b3 100644
--- a/crates/uv-resolver/src/exclusions.rs
+++ b/crates/uv-resolver/src/exclusions.rs
@@ -3,7 +3,7 @@ use rustc_hash::FxHashSet;
 use uv_types::{Reinstall, Upgrade};
 
 /// Tracks locally installed packages that should not be selected during resolution.
-#[derive(Debug, Default)]
+#[derive(Debug, Default, Clone)]
 pub enum Exclusions {
     #[default]
     None,
diff --git a/crates/uv-resolver/src/preferences.rs b/crates/uv-resolver/src/preferences.rs
index 6b507d748f9a..d456d5daf0b7 100644
--- a/crates/uv-resolver/src/preferences.rs
+++ b/crates/uv-resolver/src/preferences.rs
@@ -8,11 +8,9 @@ use pep508_rs::{
 };
 use pypi_types::{HashError, Hashes};
 use requirements_txt::RequirementEntry;
-use tracing::{trace};
+use tracing::trace;
 use uv_normalize::PackageName;
 
-
-
 #[derive(thiserror::Error, Debug)]
 pub enum PreferenceError {
     #[error("direct URL requirements without package names are not supported: {0}")]
diff --git a/crates/uv/tests/pip_compile.rs b/crates/uv/tests/pip_compile.rs
index 8cc33861055e..70d2088ca294 100644
--- a/crates/uv/tests/pip_compile.rs
+++ b/crates/uv/tests/pip_compile.rs
@@ -6294,3 +6294,103 @@ fn emit_marker_expression_pypy() -> Result<()> {
 
     Ok(())
 }
+
+/// A local version of a package shadowing a remote package is installed.
+#[test]
+fn local_version_of_remote_package() -> Result<()> {
+    let context = TestContext::new("3.12");
+    let root_path = context.workspace_root.join("scripts/packages");
+
+    let requirements_in = context.temp_dir.child("requirements.in");
+    requirements_in.write_str("anyio")?;
+
+    uv_snapshot!(context.filters(), context.compile()
+        .arg(requirements_in.path()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+    # This file was autogenerated by uv via the following command:
+    #    uv pip compile --cache-dir [CACHE_DIR] --exclude-newer 2024-03-25T00:00:00Z [TEMP_DIR]/requirements.in
+    anyio==4.3.0
+    idna==3.6
+        # via anyio
+    sniffio==1.3.1
+        # via anyio
+
+    ----- stderr -----
+    Resolved 3 packages in [TIME]
+    "###);
+
+    // Actually install the local dependency
+    uv_snapshot!(
+        context.filters(),
+        Command::new(get_bin())
+            .arg("pip")
+            .arg("install")
+            .arg(root_path.join("anyio_local"))
+            .arg("--cache-dir")
+            .arg(context.cache_dir.path())
+            .arg("--exclude-newer")
+            .arg(EXCLUDE_NEWER)
+            .env("VIRTUAL_ENV", context.venv.as_os_str())
+            .current_dir(context.temp_dir.path()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Resolved 1 package in [TIME]
+    Downloaded 1 package in [TIME]
+    Installed 1 package in [TIME]
+     + anyio==4.3.0+foo (from file://[WORKSPACE]/scripts/packages/anyio_local)
+    "###
+    );
+
+    // The local version should _not_ be included in the resolution
+    uv_snapshot!(context.filters(), context.compile()
+        .arg(requirements_in.path()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+    # This file was autogenerated by uv via the following command:
+    #    uv pip compile --cache-dir [CACHE_DIR] --exclude-newer 2024-03-25T00:00:00Z [TEMP_DIR]/requirements.in
+    anyio==4.3.0
+    idna==3.6
+        # via anyio
+    sniffio==1.3.1
+        # via anyio
+
+    ----- stderr -----
+    Resolved 3 packages in [TIME]
+    "###);
+
+    // Write a lock file with the local version
+    let requirements_txt = context.temp_dir.child("requirements.txt");
+    requirements_txt.write_str(&indoc::formatdoc! {r"
+            anyio @ {workspace_root}/scripts/packages/anyio_local
+        ",
+        workspace_root = context.workspace_root.simplified_display(),
+    })?;
+
+    // The local version is _still_ excluded from the resolution
+    uv_snapshot!(context.filters(), context.compile()
+        .arg(requirements_in.path())
+        .arg("--output-file")
+        .arg(requirements_txt.path()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+    # This file was autogenerated by uv via the following command:
+    #    uv pip compile --cache-dir [CACHE_DIR] --exclude-newer 2024-03-25T00:00:00Z [TEMP_DIR]/requirements.in --output-file [TEMP_DIR]/requirements.txt
+    anyio==4.3.0
+    idna==3.6
+        # via anyio
+    sniffio==1.3.1
+        # via anyio
+
+    ----- stderr -----
+    Resolved 3 packages in [TIME]
+    "###);
+
+    Ok(())
+}