Circular dependency found defining a name like another name

I'm getting compile error "Circular dependency found defining a name
like another name" when try to compile below.  I can't make any sense
out of this error.  *** Note: This error went away if I remove the
inz(dir) on D spec of myNewDir .  
 
D dir             s          10240    varying           
D processRequest  pr                                    
                                                        
C                   eval      *inlr = *on               
                                                        
 *******************************************************
 * process request                                      
P processRequest  B                                     
D                 pi                                    
                                                        
D myNewDir        s                   like(dir) inz(dir)
D myNeedRefresh   s               n                     
                                                        
C                   return                              
                                                        
P processRequest  E