diff --git a/crates/uv-settings/src/combine.rs b/crates/uv-settings/src/combine.rs
index 00c597655..b50de3962 100644
--- a/crates/uv-settings/src/combine.rs
+++ b/crates/uv-settings/src/combine.rs
@@ -20,7 +20,7 @@ use uv_resolver::{
     PrereleaseMode, ResolutionMode,
 };
 use uv_torch::TorchMode;
-use uv_workspace::pyproject::ExtraBuildDependencies;
+use uv_workspace::pyproject::{ExtraBuildDependencies, ToolUvSources};
 use uv_workspace::pyproject_mut::AddBoundsKind;
 
 use crate::{FilesystemOptions, Options, PipOptions};
@@ -294,3 +294,23 @@ impl Combine for Option<ExtraBuildVariables> {
         }
     }
 }
+
+impl Combine for ToolUvSources {
+    fn combine(self, other: Self) -> Self {
+        // Merge sources from other into self, with self taking precedence
+        let mut combined = self.into_inner();
+        for (package, sources) in other.into_inner() {
+            combined.entry(package).or_insert(sources);
+        }
+        combined.into_iter().collect()
+    }
+}
+
+impl Combine for Option<ToolUvSources> {
+    fn combine(self, other: Self) -> Self {
+        match (self, other) {
+            (Some(a), Some(b)) => Some(a.combine(b)),
+            (a, b) => a.or(b),
+        }
+    }
+}
diff --git a/crates/uv-settings/src/lib.rs b/crates/uv-settings/src/lib.rs
index 6b9b8e98f..17326cd5d 100644
--- a/crates/uv-settings/src/lib.rs
+++ b/crates/uv-settings/src/lib.rs
@@ -219,7 +219,7 @@ fn validate_uv_toml(path: &Path, options: &Options) -> Result<(), Error> {
         required_environments,
         conflicts,
         workspace,
-        sources,
+        sources: _,
         dev_dependencies,
         default_groups,
         dependency_groups,
@@ -236,9 +236,6 @@ fn validate_uv_toml(path: &Path, options: &Options) -> Result<(), Error> {
     if workspace.is_some() {
         return Err(Error::PyprojectOnlyField(path.to_path_buf(), "workspace"));
     }
-    if sources.is_some() {
-        return Err(Error::PyprojectOnlyField(path.to_path_buf(), "sources"));
-    }
     if dev_dependencies.is_some() {
         return Err(Error::PyprojectOnlyField(
             path.to_path_buf(),
diff --git a/crates/uv-settings/src/settings.rs b/crates/uv-settings/src/settings.rs
index c25d5f0ed..f14ad54a4 100644
--- a/crates/uv-settings/src/settings.rs
+++ b/crates/uv-settings/src/settings.rs
@@ -139,8 +139,11 @@ pub struct Options {
     #[cfg_attr(feature = "schemars", schemars(skip))]
     pub workspace: Option<serde::de::IgnoredAny>,
 
+    // NOTE: Unlike other fields above, `sources` is allowed in both `pyproject.toml`
+    // and `uv.toml` files to support local development overrides without modifying
+    // the committed configuration.
     #[cfg_attr(feature = "schemars", schemars(skip))]
-    pub sources: Option<serde::de::IgnoredAny>,
+    pub sources: Option<uv_workspace::pyproject::ToolUvSources>,
 
     #[cfg_attr(feature = "schemars", schemars(skip))]
     pub dev_dependencies: Option<serde::de::IgnoredAny>,
@@ -2117,12 +2120,15 @@ pub struct OptionsWire {
     environments: Option<SupportedEnvironments>,
     required_environments: Option<SupportedEnvironments>,
 
-    // NOTE(charlie): These fields should be kept in-sync with `ToolUv` in
+    // NOTE: These fields should be kept in-sync with `ToolUv` in
     // `crates/uv-workspace/src/pyproject.rs`. The documentation lives on that struct.
     // They're only respected in `pyproject.toml` files, and should be rejected in `uv.toml` files.
     conflicts: Option<serde::de::IgnoredAny>,
     workspace: Option<serde::de::IgnoredAny>,
-    sources: Option<serde::de::IgnoredAny>,
+    // NOTE: Unlike other fields above, `sources` is allowed in both `pyproject.toml`
+    // and `uv.toml` files to support local development overrides without modifying
+    // the committed configuration.
+    sources: Option<uv_workspace::pyproject::ToolUvSources>,
     managed: Option<serde::de::IgnoredAny>,
     r#package: Option<serde::de::IgnoredAny>,
     default_groups: Option<serde::de::IgnoredAny>,
diff --git a/crates/uv-workspace/src/pyproject.rs b/crates/uv-workspace/src/pyproject.rs
index 74525c6e0..2acd1d290 100644
--- a/crates/uv-workspace/src/pyproject.rs
+++ b/crates/uv-workspace/src/pyproject.rs
@@ -731,6 +731,12 @@ impl<'de> serde::de::Deserialize<'de> for ToolUvSources {
     }
 }
 
+impl FromIterator<(PackageName, Sources)> for ToolUvSources {
+    fn from_iter<T: IntoIterator<Item = (PackageName, Sources)>>(iter: T) -> Self {
+        Self(iter.into_iter().collect())
+    }
+}
+
 #[derive(Default, Debug, Clone, PartialEq, Eq)]
 #[cfg_attr(test, derive(Serialize))]
 #[cfg_attr(feature = "schemars", derive(schemars::JsonSchema))]
diff --git a/docs/concepts/configuration-files.md b/docs/concepts/configuration-files.md
index e034bd198..9fbb15e12 100644
--- a/docs/concepts/configuration-files.md
+++ b/docs/concepts/configuration-files.md
@@ -62,6 +62,14 @@ configuration tables, the project-level value will be used, and the user-level v
 ignored. If an array is present in both tables, the arrays will be concatenated, with the
 project-level settings appearing earlier in the merged array.
 
+!!! tip "Local development overrides"
+
+    The `[sources]` table can be defined in both `uv.toml` and `pyproject.toml`. When both are
+    present, sources from `uv.toml` override those from `pyproject.toml` on a per-package basis.
+    This enables local development workflows where different team members have dependencies at
+    different filesystem locations. See [Dependency sources](projects/dependencies.md#local-development-overrides-with-uvtoml)
+    for more details.
+
 Settings provided via environment variables take precedence over persistent configuration, and
 settings provided via the command line take precedence over both.
 
diff --git a/docs/concepts/projects/dependencies.md b/docs/concepts/projects/dependencies.md
index a38bcc325..36c3cc4bd 100644
--- a/docs/concepts/projects/dependencies.md
+++ b/docs/concepts/projects/dependencies.md
@@ -216,6 +216,34 @@ dependencies = ["foo"]
 foo = { path = "./packages/foo" }
 ```
 
+### Local development overrides with `uv.toml`
+
+Sources can also be defined in a `uv.toml` file to enable local development overrides without
+modifying the committed `pyproject.toml`. This is useful when:
+
+- Different developers have dependencies at different local paths
+- You want to temporarily override a dependency without committing the change
+- You want to use version control ignore patterns (e.g., `.gitignore`) to exclude local configuration
+
+```toml title="uv.toml"
+[sources]
+httpx = { path = "../httpx", editable = true }
+my-package = { git = "https://github.com/me/my-package", branch = "dev" }
+```
+
+!!! note
+
+    When both `uv.toml` and `pyproject.toml` define sources for the same package, the `uv.toml`
+    definition takes precedence. This allows local overrides without modifying the project
+    configuration.
+
+!!! tip
+
+    Add `uv.toml` to your `.gitignore` to maintain local-only development configurations without
+    affecting other team members.
+
+### Supported source types
+
 The following dependency sources are supported by uv:
 
 - [Index](#index): A package resolved from a specific package index.