diff --git a/CHANGELOG.md b/CHANGELOG.md
index 08751a8e..22e2750e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,8 @@
 master
 ===
 
+* Remove the `partials_dir` setting. Partials should live next to content, or be addressed with absolute paths.
+* Partials must be named with a leading underscore. `_my_snippet.html.erb`, not `my_snippet.html.erb`.
 * Removed the `proxy` and `ignore` options for the `page` command in `config.rb`. Use the `proxy` and `ignore` commands instead of passing these options to `page`.
 * The `page` command in `config.rb` can now be used to add data to the page via the `data` argument. It is accessed the same way as frontmatter data, via `current_resource.data`.
 * Add support for `environments` with the `-e` CLI flag. Loads additional config from `environments/envname.rb`. Removed `development?` helper in favor of `environment?(:development)`. Added `server?` helper to differentiate between build and server mode.
diff --git a/middleman-core/features/partials_dir.feature b/middleman-core/features/partials_dir.feature
deleted file mode 100644
index 8648c8e2..00000000
--- a/middleman-core/features/partials_dir.feature
+++ /dev/null
@@ -1,30 +0,0 @@
-Feature: Partials dir
-  Scenario: Find partials in a custom partials dir
-    Given a fixture app "partials-dir-app"
-    And a file named "config.rb" with:
-    """
-    set :partials_dir, 'partials'
-    """
-    And the Server is running
-    When I go to "/index.html"
-    Then I should see "contents of the partial"
-
-  Scenario: Find partials in a nested custom partials dir
-    Given a fixture app "partials-dir-app"
-    And a file named "config.rb" with:
-    """
-    set :partials_dir, 'nested/partials'
-    """
-    And the Server is running
-    When I go to "/index.html"
-    Then I should see "contents of the nested partial"
-
-  Scenario: Find partials in the default partials dir
-    Given a fixture app "default-partials-dir-app"
-    And a file named "config.rb" with:
-    """
-    """
-    And the Server is running
-    When I go to "/index.html"
-    Then I should see "contents of the partial"
-
diff --git a/middleman-core/fixtures/default-partials-dir-app/source/_partial.html.erb b/middleman-core/fixtures/default-partials-dir-app/source/_partial.html.erb
deleted file mode 100644
index 5b50edf3..00000000
--- a/middleman-core/fixtures/default-partials-dir-app/source/_partial.html.erb
+++ /dev/null
@@ -1 +0,0 @@
-contents of the partial
diff --git a/middleman-core/fixtures/default-partials-dir-app/source/index.html.erb b/middleman-core/fixtures/default-partials-dir-app/source/index.html.erb
deleted file mode 100644
index 871728d4..00000000
--- a/middleman-core/fixtures/default-partials-dir-app/source/index.html.erb
+++ /dev/null
@@ -1,2 +0,0 @@
-<%= partial 'partial' %>
-
diff --git a/middleman-core/fixtures/partials-app/source/shared/snippet.erb b/middleman-core/fixtures/partials-app/source/shared/_snippet.html.erb
similarity index 100%
rename from middleman-core/fixtures/partials-app/source/shared/snippet.erb
rename to middleman-core/fixtures/partials-app/source/shared/_snippet.html.erb
diff --git a/middleman-core/fixtures/partials-app/source/sub/index.html.erb b/middleman-core/fixtures/partials-app/source/sub/index.html.erb
index 5ce2eb35..e09e527b 100644
--- a/middleman-core/fixtures/partials-app/source/sub/index.html.erb
+++ b/middleman-core/fixtures/partials-app/source/sub/index.html.erb
@@ -1,3 +1,3 @@
 <%= partial "shared/header" %>
 <%= partial "local" %>
-<%= partial "shared/footer" %>
\ No newline at end of file
+<%= partial "../shared/footer" %>
diff --git a/middleman-core/fixtures/partials-dir-app/source/index.html.erb b/middleman-core/fixtures/partials-dir-app/source/index.html.erb
deleted file mode 100644
index 871728d4..00000000
--- a/middleman-core/fixtures/partials-dir-app/source/index.html.erb
+++ /dev/null
@@ -1,2 +0,0 @@
-<%= partial 'partial' %>
-
diff --git a/middleman-core/fixtures/partials-dir-app/source/nested/partials/_partial.html.erb b/middleman-core/fixtures/partials-dir-app/source/nested/partials/_partial.html.erb
deleted file mode 100644
index b27433e1..00000000
--- a/middleman-core/fixtures/partials-dir-app/source/nested/partials/_partial.html.erb
+++ /dev/null
@@ -1 +0,0 @@
-contents of the nested partial
diff --git a/middleman-core/fixtures/partials-dir-app/source/partials/_partial.html.erb b/middleman-core/fixtures/partials-dir-app/source/partials/_partial.html.erb
deleted file mode 100644
index 5b50edf3..00000000
--- a/middleman-core/fixtures/partials-dir-app/source/partials/_partial.html.erb
+++ /dev/null
@@ -1 +0,0 @@
-contents of the partial
diff --git a/middleman-core/lib/middleman-core/application.rb b/middleman-core/lib/middleman-core/application.rb
index a40158e9..63db4237 100644
--- a/middleman-core/lib/middleman-core/application.rb
+++ b/middleman-core/lib/middleman-core/application.rb
@@ -109,10 +109,6 @@ module Middleman
     # @return [String]
     config.define_setting :fonts_dir,   'fonts', 'Location of fonts within source'
 
-    # Location of partials within source. Used by renderers.
-    # @return [String]
-    config.define_setting :partials_dir,   '', 'Location of partials within source'
-
     # Location of layouts within source. Used by renderers.
     # @return [String]
     config.define_setting :layouts_dir, 'layouts', 'Location of layouts within source'
diff --git a/middleman-core/lib/middleman-core/template_context.rb b/middleman-core/lib/middleman-core/template_context.rb
index 17b970fb..d80b46d3 100644
--- a/middleman-core/lib/middleman-core/template_context.rb
+++ b/middleman-core/lib/middleman-core/template_context.rb
@@ -91,14 +91,13 @@ module Middleman
     # Sinatra/Padrino compatible render method signature referenced by some view
     # helpers. Especially partials.
     #
-    # @param [] _ Unused parameter.
     # @param [String, Symbol] name The partial to render.
     # @param [Hash] options
     # @return [String]
     def render(_, name, options={}, &block)
       name = name.to_s
 
-      partial_path = locate_partial_relative(name) || locate_partial_in_partials_dir(name)
+      partial_path = locate_partial(name)
 
       raise ::Middleman::TemplateRenderer::TemplateNotFound, "Could not locate partial: #{name}" unless partial_path
 
@@ -110,38 +109,28 @@ module Middleman
 
     protected
 
-    # Locate a partial reltive to the current path, given a name.
+    # Locate a partial relative to the current path or the source dir, given a partial's path.
     #
     # @api private
-    # @param [String] name
+    # @param [String] partial_path
     # @return [String]
-    def locate_partial_relative(name)
+    def locate_partial(partial_path)
       return unless resource = sitemap.find_resource_by_path(current_path)
 
       # Look for partials relative to the current path
       current_dir = File.dirname(resource.source_file)
-      relative_dir = File.join(current_dir.sub(%r{^#{Regexp.escape(source_dir)}/?}, ''), name)
+      relative_dir = File.join(current_dir.sub(%r{^#{Regexp.escape(source_dir)}/?}, ''), partial_path)
 
-      ::Middleman::TemplateRenderer.resolve_template(
+      partial = ::Middleman::TemplateRenderer.resolve_template(
         @app,
         relative_dir,
-        try_without_underscore: true,
         preferred_engine: File.extname(resource.source_file)[1..-1].to_sym
       )
-    end
 
-    # Locate a partial reltive to the partials dir, given a name.
-    #
-    # @api private
-    # @param [String] name
-    # @return [String]
-    def locate_partial_in_partials_dir(name)
-      partials_path = File.join(@app.config[:partials_dir], name)
-      ::Middleman::TemplateRenderer.resolve_template(
-        @app,
-        partials_path,
-        try_without_underscore: true
-      )
+      return partial if partial
+
+      # Try to find one relative to the source dir
+      ::Middleman::TemplateRenderer.resolve_template(@app, File.join('', partial_path))
     end
 
     # Render a path with locs, opts and contents block.
diff --git a/middleman-core/lib/middleman-core/template_renderer.rb b/middleman-core/lib/middleman-core/template_renderer.rb
index a8d1d527..27384ccf 100644
--- a/middleman-core/lib/middleman-core/template_renderer.rb
+++ b/middleman-core/lib/middleman-core/template_renderer.rb
@@ -150,7 +150,6 @@ module Middleman
     # Find a template on disk given a output path
     # @param [String] request_path
     # @option options [Boolean] :preferred_engine If set, try this engine first, then fall back to any engine.
-    # @option options [Boolean] :try_without_underscore
     # @return [String, Boolean] Either the path to the template, or false
     def self.resolve_template(app, request_path, options={})
       # Find the path by searching or using the cache
@@ -177,13 +176,8 @@ module Middleman
           end
         end
 
-        search_paths = preferred_engines.flat_map do |preferred_engine|
-          path_with_ext = on_disk_path + '.' + preferred_engine
-          paths = [path_with_ext]
-          if options[:try_without_underscore]
-            paths << path_with_ext.sub(relative_path, relative_path.sub(/^_/, '').sub(/\/_/, '/'))
-          end
-          paths
+        search_paths = preferred_engines.map do |preferred_engine|
+          on_disk_path + '.' + preferred_engine
         end
 
         found_path = nil