diff --git a/pyls/plugins/yapf_format.py b/pyls/plugins/yapf_format.py
index 4d770a4b..16afe97d 100644
--- a/pyls/plugins/yapf_format.py
+++ b/pyls/plugins/yapf_format.py
@@ -37,7 +37,7 @@ def _format(document, lines=None):
         lines=lines,
         filename=document.filename,
         style_config=file_resources.GetDefaultStyleForDir(
-            os.path.dirname(document.filename)
+            os.path.dirname(document.path)
         )
     )
 
diff --git a/test/plugins/test_yapf_format.py b/test/plugins/test_yapf_format.py
index 98f37b66..4bf6be32 100644
--- a/test/plugins/test_yapf_format.py
+++ b/test/plugins/test_yapf_format.py
@@ -45,3 +45,14 @@ def test_range_format():
 def test_no_change():
     doc = Document(DOC_URI, GOOD_DOC)
     assert not pyls_format_document(doc)
+
+
+def test_config_file(tmpdir):
+    # a config file in the same directory as the source file will be used
+    conf = tmpdir.join('.style.yapf')
+    conf.write('[style]\ncolumn_limit = 14')
+    src = tmpdir.join('test.py')
+    doc = Document(uris.from_fs_path(src.strpath), DOC)
+
+    # A was split on multiple lines because of column_limit from config file
+    assert pyls_format_document(doc)[0]['newText'] == "A = [\n    'h', 'w',\n    'a'\n]\n\nB = ['h', 'w']\n"