diff --git a/.gitignore b/.gitignore
index b3fb2a11..111c56c9 100644
--- a/.gitignore
+++ b/.gitignore
@@ -28,6 +28,7 @@ cscope.out
 /missing
 /stamp-h1
 /test-driver
+/weston.ini
 Makefile
 Makefile.in
 TAGS
diff --git a/Makefile.am b/Makefile.am
index e9ecc380..3a7d3373 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -6,4 +6,13 @@ SUBDIRS = shared src clients data protocol tests $(wcap_subdir) man
 
 DISTCHECK_CONFIGURE_FLAGS = --disable-setuid-install
 
-EXTRA_DIST = weston.ini wayland-scanner.mk
+EXTRA_DIST = weston.ini.in wayland-scanner.mk
+
+weston.ini : $(srcdir)/weston.ini.in
+	$(AM_V_GEN)$(SED) \
+		-e 's|@bindir[@]|$(bindir)|g' \
+		-e 's|@abs_top_builddir[@]|$(abs_top_builddir)|g' \
+		-e 's|@libexecdir[@]|$(libexecdir)|g' \
+		$< > $@
+
+all-local : weston.ini
diff --git a/weston.ini b/weston.ini.in
similarity index 90%
rename from weston.ini
rename to weston.ini.in
index 4761bed1..5181a9e5 100644
--- a/weston.ini
+++ b/weston.ini.in
@@ -27,7 +27,7 @@ path=/usr/bin/gnome-terminal
 
 [launcher]
 icon=/usr/share/icons/gnome/24x24/apps/utilities-terminal.png
-path=/usr/bin/weston-terminal
+path=@bindir@/weston-terminal
 
 [launcher]
 icon=/usr/share/icons/hicolor/24x24/apps/google-chrome.png
@@ -35,15 +35,15 @@ path=/usr/bin/google-chrome
 
 [launcher]
 icon=/usr/share/icons/gnome/24x24/apps/arts.png
-path=./clients/weston-flower
+path=@abs_top_builddir@/clients/weston-flower
 
 [screensaver]
 # Uncomment path to disable screensaver
-path=/usr/libexec/weston-screensaver
+path=@libexecdir@/weston-screensaver
 duration=600
 
 [input-method]
-path=/usr/libexec/weston-keyboard
+path=@libexecdir@/weston-keyboard
 
 #[output]
 #name=LVDS1