diff --git a/modules/files.nix b/modules/files.nix
index a9b8740db..1f79d5c15 100644
--- a/modules/files.nix
+++ b/modules/files.nix
@@ -14,6 +14,15 @@ let
     inherit homeDirectory lib pkgs;
   }).fileType;
 
+  sourceStorePath = file:
+    let
+      sourcePath = toString file.source;
+      sourceName = config.lib.strings.storeFileName (baseNameOf sourcePath);
+    in
+      if builtins.hasContext sourcePath
+      then file.source
+      else builtins.path { path = file.source; name = sourceName; };
+
   # A symbolic link whose target path matches this pattern will be
   # considered part of a Home Manager generation.
   homeFilePattern = "${builtins.storeDir}/*-home-manager-files/*";
@@ -36,20 +45,6 @@ in
   };
 
   config = {
-    assertions = [
-      (let
-        badFiles =
-          filter (f: hasPrefix "." (baseNameOf f))
-          (map (v: toString v.source)
-          (attrValues cfg));
-        badFilesStr = toString badFiles;
-      in
-        {
-          assertion = badFiles == [];
-          message = "Source file names must not start with '.': ${badFilesStr}";
-        })
-    ];
-
     # This verifies that the links we are about to create will not
     # overwrite an existing file.
     home.activation.checkLinkTargets = dag.entryBefore ["writeBoundary"] (
@@ -201,7 +196,7 @@ in
       ''
         declare -A changedFiles
       '' + concatMapStrings (v: ''
-        cmp --quiet "${v.source}" "${config.home.homeDirectory}/${v.target}" \
+        cmp --quiet "${sourceStorePath v}" "${homeDirectory}/${v.target}" \
           && changedFiles["${v.target}"]=0 \
           || changedFiles["${v.target}"]=1
       '') (filter (v: v.onChange != "") (attrValues cfg))
@@ -277,7 +272,7 @@ in
         }
       '' + concatStrings (
         mapAttrsToList (n: v: ''
-          insertFile "${v.source}" \
+          insertFile "${sourceStorePath v}" \
                      "${v.target}" \
                      "${if v.executable == null
                         then "inherit"
diff --git a/modules/lib/default.nix b/modules/lib/default.nix
index 9ca0dad6b..754713cab 100644
--- a/modules/lib/default.nix
+++ b/modules/lib/default.nix
@@ -16,6 +16,8 @@
         entryBefore = d.dagEntryBefore;
       };
 
+  strings = import ./strings.nix { inherit lib; };
+
   shell = import ./shell.nix { inherit lib; };
   zsh = import ./zsh.nix { inherit lib; };
 }
diff --git a/modules/lib/file-type.nix b/modules/lib/file-type.nix
index 0c435aaa9..efbb33b23 100644
--- a/modules/lib/file-type.nix
+++ b/modules/lib/file-type.nix
@@ -4,27 +4,7 @@ with lib;
 
 let
 
-  # Figures out a valid Nix store name for the given path.
-  storeFileName = path:
-    let
-      # All characters that are considered safe. Note "-" is not
-      # included to avoid "-" followed by digit being interpreted as a
-      # version.
-      safeChars =
-        [ "+" "." "_" "?" "=" ]
-        ++ lowerChars
-        ++ upperChars
-        ++ stringToCharacters "0123456789";
-
-      empties = l: genList (x: "") (length l);
-
-      unsafeInName = stringToCharacters (
-        replaceStrings safeChars (empties safeChars) path
-      );
-
-      safeName = replaceStrings unsafeInName (empties unsafeInName) path;
-    in
-      "home_file_" + safeName;
+  stringsExtra = import ./strings.nix { inherit lib; };
 
 in
 
@@ -113,7 +93,7 @@ in
         source = mkIf (config.text != null) (
           mkDefault (pkgs.writeTextFile {
             inherit (config) executable text;
-            name = storeFileName name;
+            name = stringsExtra.storeFileName name;
           })
         );
       };
diff --git a/modules/lib/strings.nix b/modules/lib/strings.nix
new file mode 100644
index 000000000..13d6bb03b
--- /dev/null
+++ b/modules/lib/strings.nix
@@ -0,0 +1,27 @@
+{ lib }:
+
+with lib;
+
+{
+  # Figures out a valid Nix store name for the given path.
+  storeFileName = path:
+    let
+      # All characters that are considered safe. Note "-" is not
+      # included to avoid "-" followed by digit being interpreted as a
+      # version.
+      safeChars =
+        [ "+" "." "_" "?" "=" ]
+        ++ lowerChars
+        ++ upperChars
+        ++ stringToCharacters "0123456789";
+
+      empties = l: genList (x: "") (length l);
+
+      unsafeInName = stringToCharacters (
+        replaceStrings safeChars (empties safeChars) path
+      );
+
+      safeName = replaceStrings unsafeInName (empties unsafeInName) path;
+    in
+      "hm_" + safeName;
+}
diff --git a/tests/default.nix b/tests/default.nix
index 4e7858a9b..1da2abf17 100644
--- a/tests/default.nix
+++ b/tests/default.nix
@@ -16,6 +16,10 @@ import nmt {
   modules = import ../modules/modules.nix { inherit pkgs; lib = pkgs.lib; };
   testedAttrPath = [ "home" "activationPackage" ];
   tests = {
+    files-executable = ./modules/files/executable.nix;
+    files-hidden-source = ./modules/files/hidden-source.nix;
+    files-source-with-spaces = ./modules/files/source-with-spaces.nix;
+    files-text = ./modules/files/text.nix;
     git-with-most-options = ./modules/programs/git.nix;
     git-with-str-extra-config = ./modules/programs/git-with-str-extra-config.nix;
     texlive-minimal = ./modules/programs/texlive-minimal.nix;
diff --git a/tests/modules/files/.hidden b/tests/modules/files/.hidden
new file mode 100644
index 000000000..ca05448e7
--- /dev/null
+++ b/tests/modules/files/.hidden
@@ -0,0 +1 @@
+The name of this file has a dot prefix.
diff --git a/tests/modules/files/executable.nix b/tests/modules/files/executable.nix
new file mode 100644
index 000000000..b286c2b49
--- /dev/null
+++ b/tests/modules/files/executable.nix
@@ -0,0 +1,17 @@
+{ config, lib, ... }:
+
+with lib;
+
+{
+  config = {
+    home.file."executable" = {
+      text = "";
+      executable = true;
+    };
+
+    nmt.script = ''
+      assertFileExists home-files/executable
+      assertFileIsExecutable home-files/executable;
+    '';
+  };
+}
diff --git a/tests/modules/files/hidden-source.nix b/tests/modules/files/hidden-source.nix
new file mode 100644
index 000000000..a8635398f
--- /dev/null
+++ b/tests/modules/files/hidden-source.nix
@@ -0,0 +1,16 @@
+{ config, lib, ... }:
+
+with lib;
+
+{
+  config = {
+    home.file.".hidden".source = ./.hidden;
+
+    nmt.script = ''
+      assertFileExists home-files/.hidden;
+      assertFileContent home-files/.hidden ${
+        builtins.path { path = ./.hidden; name = "expected"; }
+      }
+    '';
+  };
+}
diff --git a/tests/modules/files/source with spaces! b/tests/modules/files/source with spaces!
new file mode 100644
index 000000000..e1ace4041
--- /dev/null
+++ b/tests/modules/files/source with spaces!	
@@ -0,0 +1 @@
+Source with spaces!
diff --git a/tests/modules/files/source-with-spaces.nix b/tests/modules/files/source-with-spaces.nix
new file mode 100644
index 000000000..1d593c642
--- /dev/null
+++ b/tests/modules/files/source-with-spaces.nix
@@ -0,0 +1,20 @@
+{ config, lib, ... }:
+
+with lib;
+
+{
+  config = {
+    home.file."source with spaces!".source = ./. + "/source with spaces!";
+
+    nmt.script = ''
+      assertFileExists 'home-files/source with spaces!';
+      assertFileContent 'home-files/source with spaces!' \
+        ${
+          builtins.path {
+            path = ./. + "/source with spaces!";
+            name = "source-with-spaces-expected";
+          }
+        }
+    '';
+  };
+}
diff --git a/tests/modules/files/text-expected.txt b/tests/modules/files/text-expected.txt
new file mode 100644
index 000000000..b3a0ff2db
--- /dev/null
+++ b/tests/modules/files/text-expected.txt
@@ -0,0 +1,2 @@
+This is the
+expected text.
diff --git a/tests/modules/files/text.nix b/tests/modules/files/text.nix
new file mode 100644
index 000000000..6fc9a26fc
--- /dev/null
+++ b/tests/modules/files/text.nix
@@ -0,0 +1,18 @@
+{ config, lib, ... }:
+
+with lib;
+
+{
+  config = {
+    home.file."using-text".text = ''
+      This is the
+      expected text.
+    '';
+
+    nmt.script = ''
+      assertFileExists home-files/using-text
+      assertFileIsNotExecutable home-files/using-text
+      assertFileContent home-files/using-text ${./text-expected.txt}
+    '';
+  };
+}