diff --git a/crates/uv-cache/src/lib.rs b/crates/uv-cache/src/lib.rs
index 3c3f8e01e..a91b9cdef 100644
--- a/crates/uv-cache/src/lib.rs
+++ b/crates/uv-cache/src/lib.rs
@@ -631,7 +631,7 @@ pub enum CacheBucket {
     /// can put next to the wheels as in the `Wheels` bucket.
     ///
     /// The unzipped source distribution is stored in a directory matching the source distribution
-    /// acrhive name.
+    /// archive name.
     ///
     /// Source distributions are built into zipped wheel files (as PEP 517 specifies) and unzipped
     /// lazily before installing. So when resolving, we only build the wheel and store the archive
diff --git a/crates/uv/src/commands/build_frontend.rs b/crates/uv/src/commands/build_frontend.rs
index 7e15bfb3e..b24dfdd9f 100644
--- a/crates/uv/src/commands/build_frontend.rs
+++ b/crates/uv/src/commands/build_frontend.rs
@@ -11,7 +11,7 @@ use uv_distribution_types::{DependencyMetadata, IndexLocations};
 use uv_install_wheel::linker::LinkMode;
 
 use uv_auth::store_credentials_from_url;
-use uv_cache::Cache;
+use uv_cache::{Cache, CacheBucket};
 use uv_client::{BaseClientBuilder, Connectivity, FlatIndexClient, RegistryClientBuilder};
 use uv_configuration::{
     BuildKind, BuildOptions, BuildOutput, Concurrency, ConfigSettings, Constraints,
@@ -572,7 +572,7 @@ async fn build_package(
             let ext = SourceDistExtension::from_path(path.as_path()).map_err(|err| {
                 anyhow::anyhow!("`{}` is not a valid source distribution, as it ends with an unsupported extension. Expected one of: {err}.", path.user_display())
             })?;
-            let temp_dir = tempfile::tempdir_in(&output_dir)?;
+            let temp_dir = tempfile::tempdir_in(cache.bucket(CacheBucket::SourceDistributions))?;
             uv_extract::stream::archive(reader, ext, temp_dir.path()).await?;
 
             // Extract the top-level directory from the archive.
diff --git a/crates/uv/tests/it/build.rs b/crates/uv/tests/it/build.rs
index d6fa68292..bb8fe310f 100644
--- a/crates/uv/tests/it/build.rs
+++ b/crates/uv/tests/it/build.rs
@@ -1,7 +1,10 @@
 use crate::common::{uv_snapshot, TestContext};
 use anyhow::Result;
 use assert_fs::prelude::*;
+use fs_err::File;
+use insta::assert_snapshot;
 use predicates::prelude::predicate;
+use zip::ZipArchive;
 
 #[test]
 fn build() -> Result<()> {
@@ -1762,3 +1765,56 @@ fn build_no_build_logs() -> Result<()> {
 
     Ok(())
 }
+
+/// Check that we have a working git boundary for builds from source dist to wheel in `dist/`.
+#[test]
+fn git_boundary_in_dist_build() -> Result<()> {
+    let context = TestContext::new("3.12");
+
+    let project = context.temp_dir.child("demo");
+    project.child("pyproject.toml").write_str(
+        r#"
+        [build-system]
+        requires = ["hatchling"]
+        build-backend = "hatchling.build"
+
+        [project]
+        name = "demo"
+        version = "0.1.0"
+        requires-python = ">=3.11"
+        "#,
+    )?;
+    project.child("src/demo/__init__.py").write_str(
+        r#"
+        def run():
+            print("Running like the wind!")
+        "#,
+    )?;
+
+    uv_snapshot!(&context.filters(), context.build().current_dir(project.path()), @r###"
+    success: true
+    exit_code: 0
+    ----- stdout -----
+
+    ----- stderr -----
+    Building source distribution...
+    Building wheel from source distribution...
+    Successfully built dist/demo-0.1.0.tar.gz and dist/demo-0.1.0-py3-none-any.whl
+    "###);
+
+    // Check that the source file is included
+    let reader = File::open(project.join("dist/demo-0.1.0-py3-none-any.whl"))?;
+    let mut files: Vec<_> = ZipArchive::new(reader)?
+        .file_names()
+        .map(ToString::to_string)
+        .collect();
+    files.sort();
+    assert_snapshot!(files.join("\n"), @r###"
+    demo-0.1.0.dist-info/METADATA
+    demo-0.1.0.dist-info/RECORD
+    demo-0.1.0.dist-info/WHEEL
+    demo/__init__.py
+    "###);
+
+    Ok(())
+}