diff --git a/.changeset/olive-parrots-retire.md b/.changeset/olive-parrots-retire.md
new file mode 100644
index 0000000000..8e4ae1a7d4
--- /dev/null
+++ b/.changeset/olive-parrots-retire.md
@@ -0,0 +1,6 @@
+---
+'@backstage/catalog-model': minor
+'@backstage/plugin-catalog-backend': patch
+---
+
+Add support for relative targets and implicit types in Location entities.
diff --git a/docs/features/software-catalog/descriptor-format.md b/docs/features/software-catalog/descriptor-format.md
index 438f874990..19c5c74f68 100644
--- a/docs/features/software-catalog/descriptor-format.md
+++ b/docs/features/software-catalog/descriptor-format.md
@@ -31,6 +31,7 @@ we recommend that you name them `catalog-info.yaml`.
 - [Kind: Resource](#kind-resource)
 - [Kind: System](#kind-system)
 - [Kind: Domain](#kind-domain)
+- [Kind: Location](#kind-location)
 
 ## Overall Shape Of An Entity
 
@@ -884,3 +885,58 @@ This kind is not yet defined, but is reserved [for future use](system-model.md).
 ## Kind: Domain
 
 This kind is not yet defined, but is reserved [for future use](system-model.md).
+
+## Kind: Location
+
+Describes the following entity kind:
+
+| Field        | Value                   |
+| ------------ | ----------------------- |
+| `apiVersion` | `backstage.io/v1alpha1` |
+| `kind`       | `Location`              |
+
+A location is a marker that references other places to look for catalog data.
+
+Descriptor files for this kind may look as follows.
+
+```yaml
+apiVersion: backstage.io/v1alpha1
+kind: Location
+metadata:
+  name: org-data
+spec:
+  type: url
+  targets:
+    - http://github.com/myorg/myproject/org-data-dump/catalog-info-staff.yaml
+    - http://github.com/myorg/myproject/org-data-dump/catalog-info-consultants.yaml
+```
+
+In addition to the [common envelope metadata](#common-to-all-kinds-the-metadata)
+shape, this kind has the following structure.
+
+### `apiVersion` and `kind` [required]
+
+Exactly equal to `backstage.io/v1alpha1` and `Location`, respectively.
+
+### `spec.type` [optional]
+
+The single location type, that's common to the targets specified in the spec. If
+it is left out, it is inherited from the location type that originally read the
+entity data. For example, if you have a `url` type location, that when read
+results in a `Location` kind entity with no `spec.type`, then the referenced
+targets in the entity will implicitly also be of `url` type. This is useful
+because you can define a hierarchy of things in a directory structure using
+relative target paths (see below), and it will work out no matter if it's
+consumed locally on disk from a `file` location, or as uploaded on a VCS.
+
+### `spec.target` [optional]
+
+A single target as a string. Can be either an absolute path/URL (depending on
+the type), or a relative path such as `./details/catalog-info.yaml` which is
+resolved relative to the location of this Location entity itself.
+
+### `spec.targets` [optional]
+
+A list of targets as strings. They can all be either absolute paths/URLs
+(depending on the type), or relative paths such as `./details/catalog-info.yaml`
+which are resolved relative to the location of this Location entity itself.
diff --git a/packages/catalog-model/examples/acme-corp.yaml b/packages/catalog-model/examples/acme-corp.yaml
index e8047fc143..6449d548e0 100644
--- a/packages/catalog-model/examples/acme-corp.yaml
+++ b/packages/catalog-model/examples/acme-corp.yaml
@@ -4,6 +4,5 @@ metadata:
   name: acme-corp
   description: A collection of all Backstage example Groups
 spec:
-  type: github
   targets:
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/org.yaml
+    - ./acme/org.yaml
diff --git a/packages/catalog-model/examples/acme/org.yaml b/packages/catalog-model/examples/acme/org.yaml
index 8c562aaf89..fe368962b1 100644
--- a/packages/catalog-model/examples/acme/org.yaml
+++ b/packages/catalog-model/examples/acme/org.yaml
@@ -16,12 +16,11 @@ metadata:
   name: example-groups
   description: A collection of all Backstage example Groups
 spec:
-  type: github
   targets:
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/infrastructure-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/boxoffice-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/backstage-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/team-a-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/team-b-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/team-c-group.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/acme/team-d-group.yaml
+    - ./infrastructure-group.yaml
+    - ./boxoffice-group.yaml
+    - ./backstage-group.yaml
+    - ./team-a-group.yaml
+    - ./team-b-group.yaml
+    - ./team-c-group.yaml
+    - ./team-d-group.yaml
diff --git a/packages/catalog-model/examples/all-apis.yaml b/packages/catalog-model/examples/all-apis.yaml
index 0278fc3078..20752faf97 100644
--- a/packages/catalog-model/examples/all-apis.yaml
+++ b/packages/catalog-model/examples/all-apis.yaml
@@ -4,10 +4,9 @@ metadata:
   name: example-apis
   description: A collection of all Backstage example APIs
 spec:
-  type: github
   targets:
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/apis/hello-world-api.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/apis/petstore-api.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/apis/spotify-api.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/apis/streetlights-api.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/apis/swapi-graphql.yaml
+    - ./apis/hello-world-api.yaml
+    - ./apis/petstore-api.yaml
+    - ./apis/spotify-api.yaml
+    - ./apis/streetlights-api.yaml
+    - ./apis/swapi-graphql.yaml
diff --git a/packages/catalog-model/examples/all-components.yaml b/packages/catalog-model/examples/all-components.yaml
index 06c44b59d7..f29a7378a0 100644
--- a/packages/catalog-model/examples/all-components.yaml
+++ b/packages/catalog-model/examples/all-components.yaml
@@ -4,14 +4,13 @@ metadata:
   name: example-components
   description: A collection of all Backstage example components
 spec:
-  type: github
   targets:
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/artist-lookup-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/petstore-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/playback-order-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/podcast-api-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/queue-proxy-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/searcher-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/playback-lib-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/www-artist-component.yaml
-    - https://github.com/backstage/backstage/blob/master/packages/catalog-model/examples/components/shuffle-api-component.yaml
+    - ./components/artist-lookup-component.yaml
+    - ./components/petstore-component.yaml
+    - ./components/playback-order-component.yaml
+    - ./components/podcast-api-component.yaml
+    - ./components/queue-proxy-component.yaml
+    - ./components/searcher-component.yaml
+    - ./components/playback-lib-component.yaml
+    - ./components/www-artist-component.yaml
+    - ./components/shuffle-api-component.yaml
diff --git a/packages/catalog-model/src/kinds/LocationEntityV1alpha1.test.ts b/packages/catalog-model/src/kinds/LocationEntityV1alpha1.test.ts
index d9c1e9185f..2451df8e64 100644
--- a/packages/catalog-model/src/kinds/LocationEntityV1alpha1.test.ts
+++ b/packages/catalog-model/src/kinds/LocationEntityV1alpha1.test.ts
@@ -54,9 +54,9 @@ describe('LocationV1alpha1Validator', () => {
     await expect(validator.check(entity)).resolves.toBe(false);
   });
 
-  it('rejects missing type', async () => {
+  it('accepts missing type', async () => {
     delete (entity as any).spec.type;
-    await expect(validator.check(entity)).rejects.toThrow(/type/);
+    await expect(validator.check(entity)).resolves.toBe(true);
   });
 
   it('rejects wrong type', async () => {
diff --git a/packages/catalog-model/src/kinds/LocationEntityV1alpha1.ts b/packages/catalog-model/src/kinds/LocationEntityV1alpha1.ts
index e536be7922..9cd767de94 100644
--- a/packages/catalog-model/src/kinds/LocationEntityV1alpha1.ts
+++ b/packages/catalog-model/src/kinds/LocationEntityV1alpha1.ts
@@ -26,7 +26,7 @@ const schema = yup.object<Partial<LocationEntityV1alpha1>>({
   kind: yup.string().required().equals([KIND]),
   spec: yup
     .object({
-      type: yup.string().required().min(1),
+      type: yup.string().notRequired().min(1),
       target: yup.string().notRequired().min(1),
       targets: yup.array(yup.string().required()).notRequired(),
     })
@@ -37,7 +37,7 @@ export interface LocationEntityV1alpha1 extends Entity {
   apiVersion: typeof API_VERSION[number];
   kind: typeof KIND;
   spec: {
-    type: string;
+    type?: string;
     target?: string;
     targets?: string[];
   };
diff --git a/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.test.ts b/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.test.ts
new file mode 100644
index 0000000000..998dfb62a2
--- /dev/null
+++ b/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.test.ts
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { LocationSpec } from '@backstage/catalog-model';
+import { toAbsoluteUrl } from './LocationEntityProcessor';
+import path from 'path';
+
+describe('LocationEntityProcessor', () => {
+  describe('toAbsoluteUrl', () => {
+    it('handles files', () => {
+      const base: LocationSpec = {
+        type: 'file',
+        target: `some${path.sep}path${path.sep}catalog-info.yaml`,
+      };
+      expect(toAbsoluteUrl(base, `.${path.sep}c`)).toBe(
+        `some${path.sep}path${path.sep}c`,
+      );
+      expect(toAbsoluteUrl(base, `${path.sep}c`)).toBe(`${path.sep}c`);
+    });
+
+    it('handles urls', () => {
+      const base: LocationSpec = {
+        type: 'url',
+        target: 'http://a.com/b/catalog-info.yaml',
+      };
+      expect(toAbsoluteUrl(base, './c/d')).toBe('http://a.com/b/c/d');
+      expect(toAbsoluteUrl(base, 'c/d')).toBe('http://a.com/b/c/d');
+      expect(toAbsoluteUrl(base, 'http://b.com/z')).toBe('http://b.com/z');
+    });
+  });
+});
diff --git a/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.ts b/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.ts
index 86e17f07f2..1c7e13f1c4 100644
--- a/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.ts
+++ b/plugins/catalog-backend/src/ingestion/processors/LocationEntityProcessor.ts
@@ -17,27 +17,52 @@
 import { Entity, LocationEntity, LocationSpec } from '@backstage/catalog-model';
 import * as result from './results';
 import { CatalogProcessor, CatalogProcessorEmit } from './types';
+import path from 'path';
+
+export function toAbsoluteUrl(base: LocationSpec, target: string): string {
+  try {
+    if (base.type === 'file') {
+      if (target.startsWith('.')) {
+        return path.join(path.dirname(base.target), target);
+      }
+      return target;
+    }
+    return new URL(target, base.target).toString();
+  } catch (e) {
+    return target;
+  }
+}
 
 export class LocationRefProcessor implements CatalogProcessor {
   async postProcessEntity(
     entity: Entity,
-    _location: LocationSpec,
+    location: LocationSpec,
     emit: CatalogProcessorEmit,
   ): Promise<Entity> {
     if (entity.kind === 'Location') {
-      const location = entity as LocationEntity;
-      if (location.spec.target) {
+      const locationEntity = entity as LocationEntity;
+
+      const type = locationEntity.spec.type || location.type;
+      if (type === 'file' && location.target.endsWith(path.sep)) {
         emit(
-          result.location(
-            { type: location.spec.type, target: location.spec.target },
-            false,
+          result.inputError(
+            location,
+            `LocationRefProcessor cannot handle ${type} type location with target ${location.target} that ends with a path separator`,
           ),
         );
       }
-      if (location.spec.targets) {
-        for (const target of location.spec.targets) {
-          emit(result.location({ type: location.spec.type, target }, false));
-        }
+
+      const targets = new Array<string>();
+      if (locationEntity.spec.target) {
+        targets.push(locationEntity.spec.target);
+      }
+      if (locationEntity.spec.targets) {
+        targets.push(...locationEntity.spec.targets);
+      }
+
+      for (const maybeRelativeTarget of targets) {
+        const target = toAbsoluteUrl(location, maybeRelativeTarget);
+        emit(result.location({ type, target }, false));
       }
     }