diff --git a/doc/03-cli.md b/doc/03-cli.md
index 043ce1801..2d5ad54a3 100644
--- a/doc/03-cli.md
+++ b/doc/03-cli.md
@@ -76,6 +76,8 @@ resolution.
 * **--dev:** By default composer will only install required packages. By
   passing this option you can also make it install packages referenced by
   `require-dev`.
+* **--no-dev:** Skip installing packages listed in `require-dev` (this is
+  the default for `install`).
 * **--no-scripts:** Skips execution of scripts defined in `composer.json`.
 * **--no-custom-installers:** Disables custom installers.
 * **--no-progress:** Removes the progress display that can mess with some
@@ -107,7 +109,8 @@ You can also use wildcards to update a bunch of packages at once:
 * **--prefer-source:** Install packages from `source` when available.
 * **--prefer-dist:** Install packages from `dist` when available.
 * **--dry-run:** Simulate the command without actually doing anything.
-* **--dev:** Install packages listed in `require-dev`.
+* **--dev:** Install packages listed in `require-dev` (this is the default for `update`).
+* **--no-dev:** Skip installing packages listed in `require-dev`.
 * **--no-scripts:** Skips execution of scripts defined in `composer.json`.
 * **--no-custom-installers:** Disables custom installers.
 * **--no-progress:** Removes the progress display that can mess with some
@@ -190,7 +193,6 @@ specific version.
 * **--installed (-i):** List the packages that are installed.
 * **--platform (-p):** List only platform packages (php & extensions).
 * **--self (-s):** List the root package info.
-* **--dev:** Include dev-required packages when combined with **--installed** or **--platform**.
 
 ## depends
 
diff --git a/doc/04-schema.md b/doc/04-schema.md
index ed585b76d..74c7510de 100644
--- a/doc/04-schema.md
+++ b/doc/04-schema.md
@@ -296,17 +296,7 @@ unless those requirements can be met.
 
 Lists packages required for developing this package, or running
 tests, etc. The dev requirements of the root package only will be installed
-if `install` or `update` is ran with `--dev`.
-
-Packages listed here and their dependencies can not overrule the resolution
-found with the packages listed in require. This is even true if a different
-version of a package would be installable and solve the conflict. The reason
-is that `install --dev` produces the exact same state as just `install`, apart
-from the additional dev packages.
-
-If you run into such a conflict, you can specify the conflicting package in
-the require section and require the right version number to resolve the
-conflict.
+if `install` is run with `--dev` or if `update` is run without `--no-dev`.
 
 #### conflict
 
diff --git a/tests/Composer/Test/Installer/InstallerInstallerTest.php b/tests/Composer/Test/Installer/InstallerInstallerTest.php
index a53ad467c..c61182389 100644
--- a/tests/Composer/Test/Installer/InstallerInstallerTest.php
+++ b/tests/Composer/Test/Installer/InstallerInstallerTest.php
@@ -51,8 +51,8 @@ class InstallerInstallerTest extends \PHPUnit_Framework_TestCase
             ->disableOriginalConstructor()
             ->getMock();
         $rm->expects($this->any())
-            ->method('getLocalRepositories')
-            ->will($this->returnValue(array($this->repository)));
+            ->method('getLocalRepository')
+            ->will($this->returnValue($this->repository));
 
         $this->io = $this->getMock('Composer\IO\IOInterface');
 
diff --git a/tests/Composer/Test/InstallerTest.php b/tests/Composer/Test/InstallerTest.php
index 1e01ae345..69b292b7a 100644
--- a/tests/Composer/Test/InstallerTest.php
+++ b/tests/Composer/Test/InstallerTest.php
@@ -29,6 +29,19 @@ use Symfony\Component\Console\Output\StreamOutput;
 
 class InstallerTest extends TestCase
 {
+    protected $prevCwd;
+
+    public function setUp()
+    {
+        $this->prevCwd = getcwd();
+        chdir(__DIR__);
+    }
+
+    public function tearDown()
+    {
+        chdir($this->prevCwd);
+    }
+
     /**
      * @dataProvider provideInstaller
      */
diff --git a/tests/Composer/Test/Mock/InstallationManagerMock.php b/tests/Composer/Test/Mock/InstallationManagerMock.php
index b643df728..0ecca1e2a 100644
--- a/tests/Composer/Test/Mock/InstallationManagerMock.php
+++ b/tests/Composer/Test/Mock/InstallationManagerMock.php
@@ -13,6 +13,7 @@ namespace Composer\Test\Mock;
 
 use Composer\Installer\InstallationManager;
 use Composer\Repository\RepositoryInterface;
+use Composer\Repository\InstalledRepositoryInterface;
 use Composer\Package\PackageInterface;
 use Composer\DependencyResolver\Operation\InstallOperation;
 use Composer\DependencyResolver\Operation\UpdateOperation;