diff --git a/python/setup.py b/python/setup.py
index b420a4c..b1bca6b 100644
--- a/python/setup.py
+++ b/python/setup.py
@@ -10,7 +10,8 @@ import shutil
 
 version = "0.8.0"
 data_files = []
-include_dirs = ["../lib"]
+include_dirs = ["lib"]
+library_dirs = ["lib/.libs"]
 libraries = ["tre"]
 
 if sys.platform == "win32":
@@ -28,9 +29,10 @@ setup(name = "tre",
       url = "http://laurikari.net/tre/",
       data_files = data_files,
       ext_modules = [Extension("tre",
-                               sources = ["tre-python.c"],
+                               sources = ["python/tre-python.c"],
                                define_macros = [("HAVE_CONFIG_H", None)],
                                include_dirs = include_dirs,
+			       library_dirs = library_dirs,
                                libraries = libraries
                                ),
                      ],
diff --git a/python/tre-python.c b/python/tre-python.c
index bbb24ed..2e35e3a 100644
--- a/python/tre-python.c
+++ b/python/tre-python.c
@@ -13,7 +13,7 @@
 #include "Python.h"
 #include "structmember.h"
 
-#include <tre/tre.h>
+#include <tre.h>
 
 #define	TRE_MODULE	"tre"