diff --git a/main/settings/src/main/scala/sbt/std/KeyMacro.scala b/main/settings/src/main/scala/sbt/std/KeyMacro.scala
index d476c1b5f..c31169b07 100644
--- a/main/settings/src/main/scala/sbt/std/KeyMacro.scala
+++ b/main/settings/src/main/scala/sbt/std/KeyMacro.scala
@@ -31,15 +31,20 @@ private[sbt] object KeyMacro
 	def definingValName(c: Context, invalidEnclosingTree: String => String): String =
 	{
 		import c.universe.{Apply=>ApplyTree,_}
-		val methodName = c.macroApplication.symbol.name.decoded
+		val methodName = c.macroApplication.symbol.name
+		def processName(n: Name): String = n.decoded.trim // trim is not strictly correct, but macros don't expose the API necessary
 		def enclosingVal(trees: List[c.Tree]): String =
+		{
 			trees match {
-				case vd @ ValDef(_, name, _, _) :: ts => name.decoded
+				case vd @ ValDef(_, name, _, _) :: ts => processName(name)
 				case (_: ApplyTree | _: Select | _: TypeApply) :: xs => enclosingVal(xs)
+					// lazy val x: X = <methodName> has this form for some reason (only when the explicit type is present, though)
+				case Block(_, _) :: DefDef(mods, name, _, _, _, _) :: xs if mods.hasFlag(Flag.LAZY) => processName(name)
 				case _ =>
-					c.error(c.enclosingPosition, invalidEnclosingTree(methodName))
+					c.error(c.enclosingPosition, invalidEnclosingTree(methodName.decoded))
 					"<error>"
 			}
+		}
 		enclosingVal(enclosingTrees(c).toList)
 	}
 	def enclosingTrees(c: Context): Seq[c.Tree] =
diff --git a/main/src/test/scala/ProjectMacro.scala b/main/src/test/scala/ProjectMacro.scala
new file mode 100644
index 000000000..6cb9d54c9
--- /dev/null
+++ b/main/src/test/scala/ProjectMacro.scala
@@ -0,0 +1,67 @@
+package sbt
+
+	import org.scalacheck._
+	import Prop._
+	import Project.project
+	import java.io.File
+
+class ProjectDefs
+{
+	lazy val p = project
+
+	val x = project
+
+	// should not compile
+	// def y = project
+
+	val z = project in new File("dir")
+
+	val a: Project = project
+
+	lazy val aa: Project = project
+}
+
+
+object ProjectMacro extends Properties("ProjectMacro")
+{
+	lazy val pd = new ProjectDefs
+	import pd._
+	
+	def secure(f: => Prop): Prop = try {
+		Prop.secure(f)
+	} catch { case e: Throwable =>
+		e.printStackTrace
+		throw e
+	}
+
+	property("Explicit type on lazy val supported") = secure {
+		check(aa, "aa", "aa")
+	}
+
+	property("Explicit type on val supported") = secure {
+		check(a, "a", "a")
+	}
+
+	property("lazy vals supported") = secure {
+		check(p, "p", "p")
+	}
+	
+	property("plain vals supported") = secure {
+		check(x, "x", "x")
+	}
+	
+	property("Directory overridable") = secure {
+		check(z, "z", "dir")
+	}
+
+	def check(p: Project, id: String, dir: String): Prop =
+	{
+		s"Expected id: $id" |:
+		s"Expected dir: $dir" |:
+		s"Actual id: ${p.id}" |:
+		s"Actual dir: ${p.base}" |:
+			(p.id == id) &&
+			(p.base.getName == dir)
+	}
+}
+	
\ No newline at end of file