diff --git a/cabal-install/Distribution/Client/Install.hs b/cabal-install/Distribution/Client/Install.hs
index 3831482e560d121fe40eb565caa09828d38d58ba..8b4c47a7abebb3b78e1a799ce13aa051e0e7e610 100644
--- a/cabal-install/Distribution/Client/Install.hs
+++ b/cabal-install/Distribution/Client/Install.hs
@@ -1196,6 +1196,7 @@ installLocalTarballPackage verbosity jobLimit pkgid
         debug verbosity $ "Renaming '" ++ distDirPath ++ "' to '"
           ++ distDirPathTmp ++ "'."
         renameDirectory distDirPath distDirPathTmp
+        createDirectoryIfMissingVerbose verbosity False distDirPath
         debug verbosity $ "Renaming '" ++ distDirPathTmp ++ "' to '"
           ++ distDirPathNew ++ "'."
         renameDirectory distDirPathTmp distDirPathNew