diff --git a/ChangeLog b/ChangeLog
index 0b08478692..7ebb57787d 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,7 @@
+Wed Jun 11 12:25:57 BST 2008 Daniel P. Berrange <berrange@redhat.com>
+
+	* src/Makefile.am: Tweak install rule to fix RPM build
+
 Wed Jun 11 09:42:57 CEST 2008 Daniel Veillard <veillard@redhat.com>
 
 	* python/libvir.py python/libvirt-python-api.xml: more python
diff --git a/src/Makefile.am b/src/Makefile.am
index 51821b041f..a5e4d3b620 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -151,6 +151,6 @@ endif
 
 # Create the /var/cache/libvirt directory when installing.
 install-exec-local:
-	$(MKDIR_P) $(DESTDIR)@localstatedir@/cache/libvirt
+	$(MKDIR_P) $(DESTDIR)$(localstatedir)/cache/libvirt
 
 CLEANFILES = *.gcov .libs/*.gcda .libs/*.gcno *.gcno *.gcda