diff --git a/lib/capybara.rb b/lib/capybara.rb
index 3cfd2988..f39de404 100644
--- a/lib/capybara.rb
+++ b/lib/capybara.rb
@@ -212,6 +212,7 @@ Capybara.configure do |config|
   config.default_wait_time = 2
   config.ignore_hidden_elements = false
   config.prefer_visible_elements = true
+  config.default_host = "http://www.example.com"
 end
 
 Capybara.register_driver :rack_test do |app|
diff --git a/lib/capybara/driver/rack_test_driver.rb b/lib/capybara/driver/rack_test_driver.rb
index 09df7e3f..dacfdf17 100644
--- a/lib/capybara/driver/rack_test_driver.rb
+++ b/lib/capybara/driver/rack_test_driver.rb
@@ -56,7 +56,7 @@ class Capybara::Driver::RackTest < Capybara::Driver::Base
     def click
       if tag_name == 'a'
         method = self["data-method"] || :get
-        driver.process(method, self[:href].to_s)
+        driver.follow(method, self[:href].to_s)
       elsif (tag_name == 'input' and %w(submit image).include?(type)) or
           ((tag_name == 'button') and type.nil? or type == "submit")
         Form.new(driver, form).submit(self)
@@ -190,6 +190,7 @@ class Capybara::Driver::RackTest < Capybara::Driver::Base
 
   include ::Rack::Test::Methods
   attr_reader :app
+  attr_accessor :current_host
 
   alias_method :response, :last_response
   alias_method :request, :last_request
@@ -200,16 +201,39 @@ class Capybara::Driver::RackTest < Capybara::Driver::Base
   end
 
   def visit(path, attributes = {})
+    reset_host!
     process(:get, path, attributes)
   end
 
+  def submit(method, path, attributes)
+    path = request_path if not path or path.empty?
+    process(method, path, attributes)
+  end
+
+  def follow(method, path, attributes = {})
+    return if path.gsub(/^#{request_path}/, '').start_with?('#')
+    process(method, path, attributes)
+  end
+
   def process(method, path, attributes = {})
-    return if path.gsub(/^#{request_path}/, '') =~ /^#/
-    path = request_path + path if path =~ /^\?/
+    new_uri = URI.parse(path)
+    current_uri = URI.parse(current_url)
+
+    path = request_path + path if path.start_with?('?')
+    path = current_host + path if path.start_with?('/')
+
+    if new_uri.host
+      @current_host = new_uri.scheme + '://' + new_uri.host
+    end
+
     send(method, to_binary(path), to_binary( attributes ), env)
     follow_redirects!
   end
 
+  def reset_host!
+    @current_host = (Capybara.app_host || Capybara.default_host)
+  end
+
   def current_url
     request.url rescue ""
   end
@@ -236,12 +260,6 @@ class Capybara::Driver::RackTest < Capybara::Driver::Base
     end
   end
 
-  def submit(method, path, attributes)
-    path = request_path if not path or path.empty?
-    send(method, to_binary(path), to_binary(attributes), env)
-    follow_redirects!
-  end
-
   def find(selector)
     html.xpath(selector).map { |node| Node.new(self, node) }
   end
@@ -256,6 +274,7 @@ class Capybara::Driver::RackTest < Capybara::Driver::Base
   alias_method :source, :body
 
   def reset!
+    reset_host!
     clear_rack_mock_session
   end
 
@@ -278,10 +297,6 @@ private
     @html = nil
   end
 
-  def build_rack_mock_session # :nodoc:
-    Rack::MockSession.new(app, Capybara.default_host || "www.example.com")
-  end
-
   # Rack::Test::Methods does not provide methods for manipulating the session
   # list so these must be manipulated directly.
   def clear_rack_mock_session
diff --git a/lib/capybara/session.rb b/lib/capybara/session.rb
index 6098c4ff..e57d2090 100644
--- a/lib/capybara/session.rb
+++ b/lib/capybara/session.rb
@@ -112,7 +112,8 @@ module Capybara
     # @return [String] Host of the current page
     #
     def current_host
-      URI.parse(current_url).host
+      uri = URI.parse(current_url)
+      "#{uri.scheme}://#{uri.host}"
     end
 
     ##
diff --git a/lib/capybara/spec/session/current_host_spec.rb b/lib/capybara/spec/session/current_host_spec.rb
index 3f19a81a..136f6198 100644
--- a/lib/capybara/spec/session/current_host_spec.rb
+++ b/lib/capybara/spec/session/current_host_spec.rb
@@ -1,9 +1,61 @@
 shared_examples_for "current_host" do
+  after do
+    Capybara.app_host = nil
+  end
+
   describe '#current_host' do
     it "is affected by visiting a page directly" do
-      @session.visit('http://capybara-testapp.heroku.com/')
-      @session.body.should include('Hello world')
-      @session.current_host.should == 'capybara-testapp.heroku.com'
+      @session.visit('http://capybara-testapp.heroku.com/host')
+      @session.body.should include('Current host is http://capybara-testapp.heroku.com')
+      @session.current_host.should == 'http://capybara-testapp.heroku.com'
+    end
+
+    it "returns to the default host when visiting a relative url" do
+      @session.visit('http://capybara-testapp.heroku.com/host')
+      @session.body.should include('Current host is capybara-testapp.heroku.com')
+      @session.current_host.should == 'http://capybara-testapp.heroku.com'
+      @session.visit('/host')
+      @session.body.should include('Current host is http://www.example.com')
+      @session.current_host.should == 'http://www.example.com'
+    end
+
+    it "is affected by setting Capybara.app_host" do
+      Capybara.app_host = "http://capybara-testapp.heroku.com"
+      @session.visit('/host')
+      @session.body.should include('Current host is http://capybara-testapp.heroku.com')
+      @session.current_host.should == 'http://capybara-testapp.heroku.com'
+      Capybara.app_host = "http://capybara1.elabs.se"
+      @session.visit('/host')
+      @session.body.should include('Current host is http://capybara1.elabs.se')
+      @session.current_host.should == 'http://capybara1.elabs.se'
+    end
+
+    it "is unaffected by following a relative link" do
+      @session.visit('http://capybara-testapp.heroku.com/host_links')
+      @session.click_link('Relative Host')
+      @session.body.should include('Current host is http://capybara-testapp.heroku.com')
+      @session.current_host.should == 'http://capybara-testapp.heroku.com'
+    end
+
+    it "is affected by following an absolute link" do
+      @session.visit('http://capybara-testapp.heroku.com/host_links')
+      @session.click_link('Absolute Host')
+      @session.body.should include('Current host is http://capybara2.elabs.se')
+      @session.current_host.should == 'http://capybara2.elabs.se'
+    end
+
+    it "is unaffected by posting through a relative form" do
+      @session.visit('http://capybara-testapp.heroku.com/host_links')
+      @session.click_button('Relative Host')
+      @session.body.should include('Current host is http://capybara-testapp.heroku.com')
+      @session.current_host.should == 'http://capybara-testapp.heroku.com'
+    end
+
+    it "is affected by posting through an absolute form" do
+      @session.visit('http://capybara-testapp.heroku.com/host_links')
+      @session.click_button('Absolute Host')
+      @session.body.should include('Current host is http://capybara2.elabs.se')
+      @session.current_host.should == 'http://capybara2.elabs.se'
     end
   end
 end
diff --git a/lib/capybara/spec/test_app.rb b/lib/capybara/spec/test_app.rb
index 394e9ed0..d66f7bb2 100644
--- a/lib/capybara/spec/test_app.rb
+++ b/lib/capybara/spec/test_app.rb
@@ -22,6 +22,10 @@ class TestApp < Sinatra::Base
     redirect '/landed'
   end
 
+  get '/host' do
+    "Current host is #{request.domain}"
+  end
+
   get '/redirect/:times/times' do
     times = params[:times].to_i
     if times.zero?
diff --git a/lib/capybara/spec/views/host_links.erb b/lib/capybara/spec/views/host_links.erb
new file mode 100644
index 00000000..b57a865f
--- /dev/null
+++ b/lib/capybara/spec/views/host_links.erb
@@ -0,0 +1,12 @@
+<p>
+  <a href="/host">Relative Host</a>
+  <a href="http://capybara2.elabs.se/host">Absolute Host</a>
+</p>
+
+<form action="/host">
+  <p><input type="submit" value="Relative Host"/></p>
+</form>
+
+<form action="http://capybara2.elabs.se/host">
+  <p><input type="submit" value="Absolute Host"/></p>
+</form>