diff --git a/Makefile.am b/Makefile.am
index 3fc80edd61..571ad8eb15 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -87,7 +87,7 @@ GOBJECTS = $(MODULES:%.scm=%.go) guix/config.go
 
 nobase_dist_guilemodule_DATA = $(MODULES)
 
-patchdir = $(pkgdatadir)/patches
+patchdir = $(guilemoduledir)/distro/packages/patches
 dist_patch_DATA =						\
   distro/packages/patches/binutils-ld-new-dtags.patch		\
   distro/packages/patches/diffutils-gets-undeclared.patch	\
@@ -108,7 +108,7 @@ dist_patch_DATA =						\
   distro/packages/patches/shishi-gets-undeclared.patch		\
   distro/packages/patches/tar-gets-undeclared.patch
 
-bootstrapdir = $(pkgdatadir)/bootstrap
+bootstrapdir = $(guilemoduledir)/distro/packages/bootstrap
 bootstrap_x86_64_linuxdir = $(bootstrapdir)/x86_64-linux
 bootstrap_i686_linuxdir = $(bootstrapdir)/i686-linux
 
@@ -196,8 +196,6 @@ CLEANFILES = $(GOBJECTS) *.log
 
 .scm.go:
 	$(MKDIR_P) `dirname "$@"`
-	DISTRO_INSTALLED_PATCH_DIRECTORY="$(patchdir)"			\
-	DISTRO_INSTALLED_BOOTSTRAP_DIRECTORY="$(bootstrapdir)"		\
 	$(top_builddir)/pre-inst-env					\
 	$(GUILD) compile -L "$(top_builddir)" -L "$(top_srcdir)"	\
 	  -Wformat -Wunbound-variable -Warity-mismatch			\
diff --git a/distro.scm b/distro.scm
index 2d441f450b..f91b0ee96b 100644
--- a/distro.scm
+++ b/distro.scm
@@ -26,6 +26,7 @@
   #:export (search-patch
             search-bootstrap-binary
             %patch-directory
+            %bootstrap-binaries-path
             fold-packages
             find-packages-by-name))
 
@@ -38,23 +39,21 @@
 
 (define _ (cut gettext <> "guix"))
 
-(define not-colon
-  ;; The char set that contains all the characters but `:'.
-  (char-set-complement (char-set #\:)))
+;; By default, we store patches and bootstrap binaries alongside Guile
+;; modules.  This is so that these extra files can be found without
+;; requiring a special setup, such as a specific installation directory
+;; and an extra environment variable.  One advantage of this setup is
+;; that everything just works in an auto-compilation setting.
 
 (define %patch-path
   (make-parameter
-   (or (and=> (getenv "DISTRO_PATCH_PATH")
-              (cut string-tokenize <> not-colon))
-       (compile-time-value
-        (list (getenv "DISTRO_INSTALLED_PATCH_DIRECTORY"))))))
+   (map (cut string-append <>  "/distro/packages/patches")
+        %load-path)))
 
 (define %bootstrap-binaries-path
   (make-parameter
-   (or (and=> (getenv "DISTRO_BOOTSTRAP_PATH")
-              (cut string-tokenize <> not-colon))
-       (compile-time-value
-        (list (getenv "DISTRO_INSTALLED_BOOTSTRAP_DIRECTORY"))))))
+   (map (cut string-append <> "/distro/packages/bootstrap")
+        %load-path)))
 
 (define (search-patch file-name)
   "Search the patch FILE-NAME."
diff --git a/pre-inst-env.in b/pre-inst-env.in
index d90934c184..e85291f948 100644
--- a/pre-inst-env.in
+++ b/pre-inst-env.in
@@ -23,12 +23,8 @@
 # Run COMMAND in a pre-installation environment.  Typical use is
 # "./pre-inst-env guix-build hello".
 
-DISTRO_PATCH_PATH="@abs_top_srcdir@/distro/packages/patches"
-DISTRO_BOOTSTRAP_PATH="@abs_top_srcdir@/distro/packages/bootstrap:@abs_top_builddir@/distro/packages/bootstrap"
 GUILE_LOAD_COMPILED_PATH="@abs_top_builddir@${GUILE_LOAD_COMPILED_PATH:+:}$GUILE_LOAD_COMPILED_PATH"
-GUILE_LOAD_PATH="@abs_top_srcdir@${GUILE_LOAD_PATH:+:}:$GUILE_LOAD_PATH"
-
-export DISTRO_PATCH_PATH DISTRO_BOOTSTRAP_PATH
+GUILE_LOAD_PATH="@abs_top_builddir@:@abs_top_srcdir@${GUILE_LOAD_PATH:+:}:$GUILE_LOAD_PATH"
 export GUILE_LOAD_COMPILED_PATH GUILE_LOAD_PATH
 
 # Define $PATH so that `guix-build' and friends are easily found.