[FEATURE] Allow CLAUDE.md in ~/.claude to apply only to that directory

Preflight Checklist

• [x] I have searched existing requests and this feature hasn't been requested yet
• [x] This is a single feature request (not multiple features)

Problem Statement

I keep my ~/.claude directory in version control and frequently ask Claude to make changes to it. The current behavior loads ~/.claude/CLAUDE.md as global instructions for all projects on my machine.

This creates a conflict: I want project-specific instructions for working on my ~/.claude configuration repository, but those instructions shouldn't apply when I'm working on other projects.

The problem is that ~/.claude/CLAUDE.md serves as both:

1. Global user instructions (applies everywhere)
2. Project instructions when working in ~/.claude

I need a way to separate these concerns.

Proposed Solution

Introduce a mechanism to define directory-specific CLAUDE.md files that only apply when Claude is opened in that specific directory, without propagating to other projects.

Possible approaches:

1. New filename convention: Support a different filename (e.g., CLAUDE.local.md or PROJECT.md) in ~/.claude that only applies to that directory
2. Setting for custom filepath: Ability to set a custom filepath for CLAUDE.md in settings.local.json

Example desired behavior:

• ~/.claude/CLAUDE.md → Global instructions (current behavior, unchanged for other directories)
• ~/.claude/PROJECT.md → Set via settings.local.json`

Priority

Medium - Would be very helpful

Feature Category

Configuration and settings