gistfile1.txt

$ bundle --version
Bundler version 1.2.3

$ ls
bar foo

$ cat bar/Gemfile 
source 'https://rubygems.org'

# Specify your gem's dependencies in bar.gemspec
gemspec

$ cat bar/bar.gemspec 
# -*- encoding: utf-8 -*-
lib = File.expand_path('../lib', __FILE__)
$LOAD_PATH.unshift(lib) unless $LOAD_PATH.include?(lib)
require 'bar/version'

Gem::Specification.new do |gem|
  gem.name          = "bar"
  gem.version       = Bar::VERSION
  gem.authors       = ["M. Scott Ford"]
  gem.email         = ["scott@mscottford.com"]
  gem.description   = %q{TODO: Write a gem description}
  gem.summary       = %q{TODO: Write a gem summary}
  gem.homepage      = ""

  gem.files         = `git ls-files`.split($/)
  gem.executables   = gem.files.grep(%r{^bin/}).map{ |f| File.basename(f) }
  gem.test_files    = gem.files.grep(%r{^(test|spec|features)/})
  gem.require_paths = ["lib"]

  gem.add_dependency 'httparty'
  gem.add_development_dependency 'hoe'
end

$ cat foo/Gemfile
source 'https://rubygems.org'

# Specify your gem's dependencies in foo.gemspec
gemspec

gem 'bar', :path => '../bar'

$ cat foo/foo.gemspec 
# -*- encoding: utf-8 -*-
lib = File.expand_path('../lib', __FILE__)
$LOAD_PATH.unshift(lib) unless $LOAD_PATH.include?(lib)
require 'foo/version'

Gem::Specification.new do |gem|
  gem.name          = "foo"
  gem.version       = Foo::VERSION
  gem.authors       = ["M. Scott Ford"]
  gem.email         = ["scott@mscottford.com"]
  gem.description   = %q{TODO: Write a gem description}
  gem.summary       = %q{TODO: Write a gem summary}
  gem.homepage      = ""

  gem.files         = `git ls-files`.split($/)
  gem.executables   = gem.files.grep(%r{^bin/}).map{ |f| File.basename(f) }
  gem.test_files    = gem.files.grep(%r{^(test|spec|features)/})
  gem.require_paths = ["lib"]

  gem.add_dependency 'bar'
  gem.add_development_dependency 'rspec'
end

$ cd foo && bundle install && cd ..
Using multi_json (1.5.0) 
Using multi_xml (0.5.2) 
Using httparty (0.10.2) 
Using bar (0.0.1) from source at ../bar 
Using diff-lcs (1.1.3) 
Using foo (0.0.1) from source at . 
Using rspec-core (2.12.2) 
Using rspec-expectations (2.12.1) 
Using rspec-mocks (2.12.2) 
Using rspec (2.12.0) 
Using bundler (1.2.3) 
Your bundle is complete! Use `bundle show [gemname]` to see where a bundled gem is installed.

$ cat foo/Gemfile.lock
PATH
  remote: ../bar
  specs:
    bar (0.0.1)
      httparty

PATH
  remote: .
  specs:
    foo (0.0.1)
      bar

GEM
  remote: https://rubygems.org/
  specs:
    diff-lcs (1.1.3)
    httparty (0.10.2)
      multi_json (~> 1.0)
      multi_xml (>= 0.5.2)
    multi_json (1.5.0)
    multi_xml (0.5.2)
    rspec (2.12.0)
      rspec-core (~> 2.12.0)
      rspec-expectations (~> 2.12.0)
      rspec-mocks (~> 2.12.0)
    rspec-core (2.12.2)
    rspec-expectations (2.12.1)
      diff-lcs (~> 1.1.3)
    rspec-mocks (2.12.2)

PLATFORMS
  ruby

DEPENDENCIES
  bar!
  foo!
  rspec