diff --git a/src/support/ChangeLog b/src/support/ChangeLog
index 0c04be43ff..93d4620a4e 100644
--- a/src/support/ChangeLog
+++ b/src/support/ChangeLog
@@ -1,3 +1,11 @@
+2003-08-01  Jean-Marc Lasgouttes  <lasgouttes@lyx.org>
+
+	* path_defines.C.in (setLyxPaths): re-introduce the code to check
+	whether lyx is run in place
+	(build_dir): renamed from build_lyxdir
+	(build_lyxdir): give this better semantics compatible with what
+	LibFileSearch expects.
+
 2003-07-29  Angus Leeming  <leeming@lyx.org>
 
 	* filename.[Ch] (relFilename, outputFilename): the 'path' arg
diff --git a/src/support/path_defines.C.in b/src/support/path_defines.C.in
index 58301f685c..e32103e3ae 100644
--- a/src/support/path_defines.C.in
+++ b/src/support/path_defines.C.in
@@ -32,6 +32,9 @@ namespace {
 // Store for the path to the lyx support files we're actually going to use.
 string system_lyxdir_;
 
+// Store for the path to the autogenerated files when running in place
+string build_lyxdir_;
+
 // Store for the path to the user-level support files.
 string user_lyxdir_;
 
@@ -72,13 +75,25 @@ string const & lyx_localedir()
 }
 
 
-string const & build_lyxdir()
+string const & build_dir()
 {
 	static string const bl = "%BUILDDIR%";
 	return bl;
 }
 
 
+string const & build_lyxdir()
+{
+	return build_lyxdir_;
+}
+
+
+void build_lyxdir(string const & sld)
+{
+	build_lyxdir_ = sld;
+}
+
+
 string const & system_lyxdir()
 {
 	return system_lyxdir_;
@@ -122,6 +137,26 @@ bool setLyxPaths()
 	lyxerr[Debug::INIT] << "Name of binary: " << binname << endl;
 	lyxerr[Debug::INIT] << "Path of binary: " << binpath << endl;
 
+
+	string searchpath;
+
+	//
+	// Determine whether we are running in place and set
+	// build_lyxdir accordingly
+	//
+
+	string const buildlyxdir = MakeAbsPath("../lib", binpath);
+	if (!FileSearch(buildlyxdir, "lyxrc.defaults").empty()) {
+		searchpath += AddPath(lyx_top_srcdir(), "lib") + ';';
+		build_lyxdir(buildlyxdir);
+		lyxerr[Debug::INIT] << "Checking whether LyX is run in "
+			"place... yes" << endl;
+	} else {
+		lyxerr[Debug::INIT]
+			<< "Checking whether LyX is run in place... no"
+			<< endl;
+	}
+
 	//
 	// Determine system directory.
 	//
@@ -141,7 +176,6 @@ bool setLyxPaths()
 	// and the hardcoded lyx_dir is used.
 
 	// If we had a command line switch, system_lyxdir_ is already set
-	string searchpath;
 	if (!system_lyxdir_.empty())
 		searchpath = MakeAbsPath(system_lyxdir_) + ';';
 
diff --git a/src/support/path_defines.h b/src/support/path_defines.h
index 4846c2af35..c16645cd40 100644
--- a/src/support/path_defines.h
+++ b/src/support/path_defines.h
@@ -19,17 +19,15 @@ namespace support {
 
 string const & lyx_localedir();
 
-/* The absolute path to the lyx build directory.
- * (Make-time value.)
- */
-string const & build_lyxdir();
-
 /// The absolute path to the lyx support files we're actually going to use.
 string const & system_lyxdir();
 
 /// Set the absolute path to the lyx support files (from the command line).
 void system_lyxdir(string const &);
 
+/// The absolute path to the lyx support files in the build directory
+string const & build_lyxdir();
+
 /// The absolute path to the user-level lyx support files.
 string const & user_lyxdir();