diff --git a/Makefile b/Makefile
index 18e29b4..63df9f5 100644
--- a/Makefile
+++ b/Makefile
@@ -43,8 +43,8 @@ install: default
 	cp -rp netboot $(DESTDIR)/$(PREFIX)/share/genkernel/
 	cp -rp patches $(DESTDIR)/$(PREFIX)/share/genkernel/
 
-	install -d $(DESTDIR)/var/cache/genkernel/src
-	install -m 644 tarballs/* $(DESTDIR)/var/cache/genkernel/src/
+	install -d $(DESTDIR)/var/lib/genkernel/src
+	install -m 644 tarballs/* $(DESTDIR)/var/lib/genkernel/src/
 
 clean:
 	rm -f $(EXTRA_DIST)
diff --git a/genkernel.conf b/genkernel.conf
index 3fbaedb..898f4f9 100644
--- a/genkernel.conf
+++ b/genkernel.conf
@@ -184,7 +184,7 @@ GK_SHARE="${GK_SHARE:-/usr/share/genkernel}"
 # Location of the default cache
 CACHE_DIR="/var/cache/genkernel"
 # Location of DISTDIR, where our source tarballs are stored
-DISTDIR="${CACHE_DIR}/src"
+DISTDIR="/var/lib/genkernel/src"
 # Log output file
 LOGFILE="/var/log/genkernel.log"
 # Debug Level