diff --git a/manage.py b/manage.py
index 49122bb5..77c365b3 100644
--- a/manage.py
+++ b/manage.py
@@ -201,7 +201,7 @@ def build_module_locally(url):
     _insert_fake_baseruntime()
 
     username = getpass.getuser()
-    submit_module_build(username, url)
+    submit_module_build(username, url, allow_local_url=True)
 
     msgs = []
     msgs.append(RidaModule("local module build", 2, 1))
diff --git a/module_build_service/scm.py b/module_build_service/scm.py
index b7b411af..44570c29 100644
--- a/module_build_service/scm.py
+++ b/module_build_service/scm.py
@@ -47,10 +47,10 @@ class SCM(object):
     # Assuming git for HTTP schemas
     types = {
                 "git": ("git://", "git+http://", "git+https://",
-                    "git+rsync://", "http://", "https://")
+                    "git+rsync://", "http://", "https://", "file://")
             }
 
-    def __init__(self, url, allowed_scm=None):
+    def __init__(self, url, allowed_scm=None, allow_local = False):
         """Initialize the SCM object using the specified scmurl.
 
         If url is not in the list of allowed_scm, an error will be raised.
@@ -61,6 +61,7 @@ class SCM(object):
             git+rsync://
             http://
             https://
+            file://
 
         :param str url: The unmodified scmurl
         :param list allowed_scm: The list of allowed SCMs, optional
@@ -69,7 +70,8 @@ class SCM(object):
 
         if allowed_scm:
             for allowed in allowed_scm:
-                if url.startswith(allowed):
+                if (url.startswith(allowed)
+                        or (allow_local and url.startswith("file://"))):
                     break
                 else:
                     raise Unauthorized(
diff --git a/module_build_service/utils.py b/module_build_service/utils.py
index 0f90a83f..49a108ae 100644
--- a/module_build_service/utils.py
+++ b/module_build_service/utils.py
@@ -208,7 +208,7 @@ def filter_module_builds(flask_request):
     return query.paginate(page, per_page, False)
 
 
-def _fetch_mmd(url):
+def _fetch_mmd(url, allow_local_url = False):
     # Import it here, because SCM uses utils methods
     # and fails to import them because of dep-chain.
     import module_build_service.scm
@@ -219,7 +219,7 @@ def _fetch_mmd(url):
     try:
         log.debug('Verifying modulemd')
         td = tempfile.mkdtemp()
-        scm = module_build_service.scm.SCM(url, conf.scmurls)
+        scm = module_build_service.scm.SCM(url, conf.scmurls, allow_local_url)
         cod = scm.checkout(td)
         cofn = os.path.join(cod, (scm.name + ".yaml"))
 
@@ -343,12 +343,12 @@ def record_component_builds(mmd, module, initial_batch = 1):
 
         return batch
 
-def submit_module_build(username, url):
+def submit_module_build(username, url, allow_local_url = False):
     # Import it here, because SCM uses utils methods
     # and fails to import them because of dep-chain.
     import module_build_service.scm
 
-    mmd, scm, yaml = _fetch_mmd(url)
+    mmd, scm, yaml = _fetch_mmd(url, allow_local_url)
 
     # If undefined, set the name field to VCS repo name.
     if not mmd.name and scm:
diff --git a/module_build_service/views.py b/module_build_service/views.py
index 384aa3b9..1160a380 100644
--- a/module_build_service/views.py
+++ b/module_build_service/views.py
@@ -123,7 +123,7 @@ class ModuleBuildAPI(MethodView):
             log.error("The submitted scmurl %r is not valid" % url)
             raise Unauthorized("The submitted scmurl %s is not valid" % url)
 
-        module = submit_module_build(username, url)
+        module = submit_module_build(username, url, allow_local_url=False)
         return jsonify(module.json()), 201