diff --git a/README.md b/README.md
index 2fc5a22cc9..f14982c86a 100644
--- a/README.md
+++ b/README.md
@@ -147,6 +147,12 @@ identified by `KO_DOCKER_REPO`.
 `ko` can also publish images to a local Docker daemon, if available, by setting
 `KO_DOCKER_REPO=ko.local`, or by passing the `--local` (`-L`) flag.
 
+Locally-published images can be used as a base image for other `ko` images:
+
+```yaml
+defaultBaseImage: ko.local/example/base/image
+```
+
 `ko` can also publish images to a local [KinD](https://kind.sigs.k8s.io)
 cluster, if available, by setting `KO_DOCKER_REPO=kind.local`.
 
diff --git a/pkg/commands/config.go b/pkg/commands/config.go
index b2f08a4a6e..1448c95c85 100644
--- a/pkg/commands/config.go
+++ b/pkg/commands/config.go
@@ -30,10 +30,12 @@ import (
 	"github.com/google/go-containerregistry/pkg/authn"
 	"github.com/google/go-containerregistry/pkg/name"
 	v1 "github.com/google/go-containerregistry/pkg/v1"
+	"github.com/google/go-containerregistry/pkg/v1/daemon"
 	"github.com/google/go-containerregistry/pkg/v1/remote"
 	"github.com/google/go-containerregistry/pkg/v1/types"
 	"github.com/google/ko/pkg/build"
 	"github.com/google/ko/pkg/commands/options"
+	"github.com/google/ko/pkg/publish"
 	"github.com/spf13/viper"
 )
 
@@ -68,6 +70,12 @@ func getBaseImage(platform string, bo *options.BuildOptions) build.GetBase {
 		if err != nil {
 			return nil, fmt.Errorf("parsing base image (%q): %v", baseImage, err)
 		}
+
+		// For ko.local, look in the daemon.
+		if ref.Context().RegistryStr() == publish.LocalDomain {
+			return daemon.Image(ref)
+		}
+
 		userAgent := ua()
 		if bo.UserAgent != "" {
 			userAgent = bo.UserAgent