diff --git a/node_modules/vfs-local/localfs.js b/node_modules/vfs-local/localfs.js
index c53c1ad4..b440fedd 100644
--- a/node_modules/vfs-local/localfs.js
+++ b/node_modules/vfs-local/localfs.js
@@ -1039,7 +1039,7 @@ module.exports = function setup(fsOptions) {
                     
                     if (!exists || options.overwrite || isSamePath) {
                         // Rename the file
-                        fs.rename(frompath, topath, function (err) {
+                        renameWatchedFile(frompath, topath, function (err) {
                             if (err) {
                                 if (err.code == 'ENOENT' && options.mkdirP != false) {
                                     options.mkdirP = false;
@@ -1364,7 +1364,9 @@ module.exports = function setup(fsOptions) {
             close();
         };
         
-        this.resume = function(callback) {
+        this.resume = function(callback, newPath) {
+            if (newPath)
+                path = newPath;
             if (!listeners.length)
                 return callback();
             watch(callback);
@@ -1433,6 +1435,33 @@ module.exports = function setup(fsOptions) {
             });
         }
     }
+    
+    function renameWatchedFile(frompath, topath, callback) {
+        var removed = [];
+        Object.keys(fileWatchers).forEach(function(path) {
+            if (path.slice(0, frompath.length) == frompath && (path[frompath.length] == "/" || !path[frompath.length])) {
+                var watchers = fileWatchers[path].slice();
+                watchers.forEach(function(w) {
+                    w.pause();
+                });
+                removed.push({
+                    relpath: path.slice(frompath.length),
+                    watchers: watchers
+                });
+            }
+        });
+        fs.rename(frompath, topath, function(err) {
+            var root = err ? frompath : topath;
+            removed.forEach(function(x) {
+                var path = root + x.relpath;
+                x.watchers.forEach(function(w) {
+                    w.resume(function() {
+                    }, path);
+                });
+            });
+            callback(err);
+        });
+    }
 
     function connect(port, options, callback) {
         var retries = options.hasOwnProperty('retries') ? options.retries : 5;
diff --git a/plugins/c9.ide.watcher/watcher.js b/plugins/c9.ide.watcher/watcher.js
index c4c24b92..471cc838 100644
--- a/plugins/c9.ide.watcher/watcher.js
+++ b/plugins/c9.ide.watcher/watcher.js
@@ -48,23 +48,8 @@ define(function(require, exports, module) {
             
             fs.on("beforeWriteFile", ignoreHandler, plugin);
             fs.on("afterWriteFile", doneHandler, plugin);
-            fs.on("beforeRename", function(e) {
-                e.watchers = [];
-                Object.keys(handlers).forEach(function(path) {
-                    if (path == e.path || path.startsWith(e.path + "/")) {
-                        if (unwatch(path))
-                            e.watchers.push(path.slice(e.path.length));
-                    }
-                });
-                ignoreHandler(e);
-            }, plugin);
-            fs.on("afterRename",  function(e) {
-                doneHandler(e);
-                var toPath = e.result[0] ? e.path : e.args[1];
-                e.watchers.forEach(function(path) {
-                    watch(toPath + path);
-                });
-            }, plugin);
+            fs.on("beforeRename", ignoreHandler, plugin);
+            fs.on("afterRename", doneHandler, plugin);
             fs.on("beforeMkdir", ignoreHandler, plugin);
             fs.on("afterMkdir", doneHandler, plugin);
             fs.on("beforeMkdirP", ignoreHandler, plugin);
@@ -239,7 +224,6 @@ define(function(require, exports, module) {
                     fs.unwatch(path, handlers[path]);
                     emit("unwatch", { path: path });
                     delete handlers[path];
-                    return true;
                 } else {
                     handlers[path].unwatchScheduled = true;
                 }