Fails in reactor mode: XSD paths resolved from reactor top project and not module project

Created a reactor pom.xml:

<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/maven-v4_0_0.xsd">
<modelVersion>4.0.0</modelVersion>
<groupId>org.sonatype.mavenbook.multi</groupId>
<artifactId>simple-parent</artifactId>
<packaging>pom</packaging>
<version>1.0</version>
<name>Multi Chapter Simple Parent Project</name>
<modules>
<module>xsd-xml</module>
</modules>
</project>

mvn clean compile fails:

[INFO] Processing C:\data\dev\java\xsd\src\main\resources\schema.xsd
[INFO] XML Schema file "C:\data\dev\java\xsd\src\main\resources\schema.xsd" not found.
[INFO] ------------------------------------------------------------------------
[ERROR] BUILD ERROR
[INFO] ------------------------------------------------------------------------