[Pharo-dev] VM and .sources in separate dirs question

While editing an Updated Pharo by Example chapter, I came across this: "The '.sources' file and the VM can be read-only, and can be shared between different users. All of these files can be placed in the same directory, but it is also possible to put the Virtual Machine and sources file in separate directory where everyone has access to them." Is this true, that you can keep the VM and .sources in different directories? How do you tell the VM where to locate the sources? I assume it's some sort of commandline parameter?