diff --git a/libexec/pyenv b/libexec/pyenv
index 443bf550..93d8866f 100755
--- a/libexec/pyenv
+++ b/libexec/pyenv
@@ -62,24 +62,6 @@ else
 fi
 export PYENV_ROOT
 
-# Transfer PYENV_FILE_ARG (from shims) into PYENV_DIR.
-if [ -z "${PYENV_DIR}" ]; then
-  if [ -n "${PYENV_FILE_ARG}" ]; then
-    if [ -L "${PYENV_FILE_ARG}" ]; then
-      PYENV_DIR="$(abs_dirname "${PYENV_FILE_ARG}")"
-    else
-      PYENV_DIR="${PYENV_FILE_ARG%/*}"
-    fi
-    export PYENV_DIR
-    unset PYENV_FILE_ARG
-  fi
-else
-  [[ $PYENV_DIR == /* ]] || PYENV_DIR="$PWD/$PYENV_DIR"
-  cd "$PYENV_DIR" 2>/dev/null || abort "cannot change working directory to \`$PYENV_DIR'"
-  PYENV_DIR="$PWD"
-  cd "$OLDPWD"
-fi
-
 if [ -z "${PYENV_DIR}" ]; then
   PYENV_DIR="$PWD"
 fi
diff --git a/libexec/pyenv-rehash b/libexec/pyenv-rehash
index 0ca0f276..6b0922ff 100755
--- a/libexec/pyenv-rehash
+++ b/libexec/pyenv-rehash
@@ -68,19 +68,6 @@ set -e
 [ -n "\$PYENV_DEBUG" ] && set -x
 
 program="\${0##*/}"
-if [[ "\$program" = "python"* ]]; then
-  for arg; do
-    case "\$arg" in
-    -c* | -- ) break ;;
-    */* )
-      if [ -f "\$arg" ]; then
-        export PYENV_FILE_ARG="\$arg"
-        break
-      fi
-      ;;
-    esac
-  done
-fi
 
 export PYENV_ROOT="$PYENV_ROOT"
 exec "$(command -v pyenv)" exec "\$program" "\$@"
diff --git a/test/pyenv_ext.bats b/test/pyenv_ext.bats
index 4a3a4a8f..cc138cbe 100644
--- a/test/pyenv_ext.bats
+++ b/test/pyenv_ext.bats
@@ -12,28 +12,3 @@ load test_helper
   PYENV_VERSION="2.7.10:system" run pyenv-prefix
   assert_success "${PYENV_ROOT}/versions/2.7.10:${PYENV_TEST_DIR}"
 }
-
-@test "should use dirname of file argument as PYENV_DIR" {
-  mkdir -p "${PYENV_TEST_DIR}/dir1"
-  touch "${PYENV_TEST_DIR}/dir1/file.py"
-  PYENV_FILE_ARG="${PYENV_TEST_DIR}/dir1/file.py" run pyenv echo PYENV_DIR
-  assert_output "${PYENV_TEST_DIR}/dir1"
-}
-
-@test "should follow symlink of file argument (#379, #404)" {
-  mkdir -p "${PYENV_TEST_DIR}/dir1"
-  mkdir -p "${PYENV_TEST_DIR}/dir2"
-  touch "${PYENV_TEST_DIR}/dir1/file.py"
-  ln -s "${PYENV_TEST_DIR}/dir1/file.py" "${PYENV_TEST_DIR}/dir2/symlink.py"
-  PYENV_FILE_ARG="${PYENV_TEST_DIR}/dir2/symlink.py" run pyenv echo PYENV_DIR
-  assert_output "${PYENV_TEST_DIR}/dir1"
-}
-
-@test "should handle relative symlinks for file argument (#580)" {
-  mkdir -p "${PYENV_TEST_DIR}"
-  cd "${PYENV_TEST_DIR}"
-  touch file.py
-  ln -s file.py symlink.py
-  PYENV_FILE_ARG="symlink.py" run pyenv echo PYENV_DIR
-  assert_output "${PYENV_TEST_DIR}"
-}