diff --git a/etc/Makefile b/etc/Makefile
index d0c2b83a..97bc26d3 100644
--- a/etc/Makefile
+++ b/etc/Makefile
@@ -4,6 +4,8 @@ CONF_FILE = xbps-src.conf
 
 .PHONY: all
 all:
+	sed -e "s|@@XBPS_INSTALL_PREFIX@@|$(PREFIX)|g" \
+		$(CONF_FILE) > $(CONF_FILE).new
 
 .PHONY: clean
 clean:
@@ -13,6 +15,7 @@ install:
 		install -d $(DESTDIR)$(ETCDIR);		\
 	fi
 
-	if [ ! -f $(DESTDIR)$(ETCDIR)/$(CONF_FILE) ]; then		\
-		install -m 644 $(CONF_FILE) $(DESTDIR)$(ETCDIR);	\
+	if [ ! -f $(DESTDIR)$(ETCDIR)/$(CONF_FILE) ]; then	\
+		install -m 644 $(CONF_FILE).new 		\
+			$(DESTDIR)$(ETCDIR)/$(CONF_FILE);	\
 	fi
diff --git a/etc/xbps-src.conf b/etc/xbps-src.conf
index 4180d343..75c2928f 100644
--- a/etc/xbps-src.conf
+++ b/etc/xbps-src.conf
@@ -2,6 +2,11 @@
 # Configuration file for xbps-src.
 #
 
+#
+# Directory where XBPS has been installed. By default /usr/local.
+#
+XBPS_INSTALLDIR=@@XBPS_INSTALL_PREFIX@@
+
 #
 # Global directory where the xbps distribution files are stored.
 # Templates, patches and helper files should all be in that directory.
diff --git a/shutils/chroot.sh b/shutils/chroot.sh
index e40aedde..177eabf4 100644
--- a/shutils/chroot.sh
+++ b/shutils/chroot.sh
@@ -120,9 +120,16 @@ install_xbps_utils()
 		echo "=> Building and installing xbps utils."
 		chroot $XBPS_MASTERDIR sh -c \
 			"echo /usr/local/lib > /etc/ld.so.conf"
-		chroot $XBPS_MASTERDIR make -C /xbps
-		chroot $XBPS_MASTERDIR make -C /xbps install
-		chroot $XBPS_MASTERDIR make -C /xbps clean
+		for f in bin src cmpver digest pkgdb repo; do
+			cp -f $XBPS_INSTALLDIR/sbin/xbps-$f $xbps_prefix/sbin
+		done
+		cp -a $XBPS_INSTALLDIR/lib/libxbps.so* $xbps_prefix/lib
+		if [ -z $XBPS_INSTALLDIR ]; then
+			installdir=/usr/share/xbps
+		else
+			installdir=$XBPS_INSTALLDIR/share/xbps
+		fi
+		cp -a $installdir $xbps_prefix/share
 		rebuild_ldso_cache
 	fi
 }
@@ -265,21 +272,22 @@ for f in ${REQDIRS}; do
 done
 unset f REQDIRS
 
-echo "XBPS_DISTRIBUTIONDIR=/xbps" > $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_MASTERDIR=/" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_DESTDIR=/xbps_destdir" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_PACKAGESDIR=/xbps_packagesdir" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_BUILDDIR=/xbps_builddir" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_SRCDISTDIR=/xbps_srcdistdir" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_CFLAGS=\"$XBPS_CFLAGS\"" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
-echo "XBPS_CXXFLAGS=\"\$XBPS_CFLAGS\"" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
+XBPSSRC_CF=$XBPS_MASTERDIR/usr/local/etc/xbps-src.conf
+
+echo "XBPS_DISTRIBUTIONDIR=/xbps" > $XBPSSRC_CF
+echo "XBPS_MASTERDIR=/" >> $XBPSSRC_CF
+echo "XBPS_DESTDIR=/xbps_destdir" >> $XBPSSRC_CF
+echo "XBPS_PACKAGESDIR=/xbps_packagesdir" >> $XBPSSRC_CF
+echo "XBPS_BUILDDIR=/xbps_builddir" >> $XBPSSRC_CF
+echo "XBPS_SRCDISTDIR=/xbps_srcdistdir" >> $XBPSSRC_CF
+echo "XBPS_CFLAGS=\"$XBPS_CFLAGS\"" >> $XBPSSRC_CF
+echo "XBPS_CXXFLAGS=\"\$XBPS_CFLAGS\"" >> $XBPSSRC_CF
 if [ -n "$XBPS_MAKEJOBS" ]; then
-	echo "XBPS_MAKEJOBS=$XBPS_MAKEJOBS" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
+	echo "XBPS_MAKEJOBS=$XBPS_MAKEJOBS" >> $XBPSSRC_CF
 fi
 if [ -n "$XBPS_CROSS_TARGET" -a -d "$XBPS_CROSS_DIR" ]; then
-	echo "XBPS_CROSS_TARGET=$XBPS_CROSS_TARGET" >> \
-		$XBPS_MASTERDIR/usr/local/etc/xbps.conf
-	echo "XBPS_CROSS_DIR=/xbps_crossdir" >> $XBPS_MASTERDIR/usr/local/etc/xbps.conf
+	echo "XBPS_CROSS_TARGET=$XBPS_CROSS_TARGET" >> $XBPSSRC_CF
+	echo "XBPS_CROSS_DIR=/xbps_crossdir" >> $XBPSSRC_CF
 fi