diff --git a/pkgs/development/interpreters/ruby/generated.nix b/pkgs/development/interpreters/ruby/generated.nix
index f806bc8a9333..7f6d51b24183 100644
--- a/pkgs/development/interpreters/ruby/generated.nix
+++ b/pkgs/development/interpreters/ruby/generated.nix
@@ -3,21 +3,21 @@
 g: # Get dependencies from patched gems
 {
   aliases = {
-    nix = g.nix_0_1;
+    nix = g.nix_0_1_1;
     rake = g.rake_0_8_7;
   };
   gem_nix_args = [ ''nix'' ''rake'' ];
   gems = {
-    nix_0_1 = {
+    nix_0_1_1 = {
       basename = ''nix'';
       meta = {
         description = ''Nix package manager interface'';
         homepage = ''http://gitorious.org/ruby-nix'';
         longDescription = ''Adds 'gem nix' command that dumps given set of gems to format suitable for Nix package manager'';
       };
-      name = ''nix-0.1'';
+      name = ''nix-0.1.1'';
       requiredGems = [  ];
-      sha256 = ''16lc3yfjcsm1s5jjfazlwia1vhy6x401f0mam79r2qkcic70xnap'';
+      sha256 = ''0kwrbkkg0gxibhsz9dpd5zabcf2wqsicg28yiazyb3dc9dslk26k'';
     };
     rake_0_8_7 = {
       basename = ''rake'';
diff --git a/pkgs/development/interpreters/ruby/libs.nix b/pkgs/development/interpreters/ruby/libs.nix
index d0b6401abc29..9aa9203f10f6 100644
--- a/pkgs/development/interpreters/ruby/libs.nix
+++ b/pkgs/development/interpreters/ruby/libs.nix
@@ -26,8 +26,20 @@ in
   generated = import ./generated.nix;
   patches = import ./patches.nix;
   overrides = import ./overrides.nix;
-}).merge {
-  generated = getConfig [ "gems" "generated" ] null;
-  patches = getConfig [ "gems" "patches" ] null;
-  overrides = getConfig [ "gems" "overrides" ] null;
-}
+}).merge (
+  let
+    localGemDir = (builtins.getEnv "HOME") + "/.nixpkgs/gems/";
+    getLocalGemFun = name:
+      let
+        file = localGemDir + name + ".nix";
+        fallback =
+          if builtins.pathExists file then import (builtins.toPath file)
+          else null;
+      in
+      getConfig [ "gems" name ] fallback;
+  in
+{
+  generated = getLocalGemFun "generated";
+  patches = getLocalGemFun "patches";
+  overrides = getLocalGemFun "overrides";
+})
diff --git a/pkgs/development/interpreters/ruby/rubygems.nix b/pkgs/development/interpreters/ruby/rubygems.nix
index 6c0cef9b4d14..bfea04d1aba0 100644
--- a/pkgs/development/interpreters/ruby/rubygems.nix
+++ b/pkgs/development/interpreters/ruby/rubygems.nix
@@ -42,8 +42,10 @@ rec {
       To use it do the following:
       1. Install rubygems and rubyLibs.nix.
       2. Add $your_profile/${ruby.gemPath} to GEM_PATH.
-      3. export RUBYLIB=$your_profile/lib RUBYOPT=rubygems
-      4. See `gem nix --help` for the rest.
+      3. export RUBYLIB=$your_profile/lib RUBYOPT=rubygems.
+      4. Run `gem nix --[no-]user-install gem1 gem2 ...` to generate Nix
+      expression from gem repository.
+      5. Install rubyLibs.gem1 etc.
     '';
   };