diff --git a/ChangeLog b/ChangeLog
index 5c48cf3367..190993b9ac 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,10 @@
+Wed Dec  5 14:09:00 EST 2007 Daniel P. Berrange <berrange@redhat.com>
+
+	* configure.in: automatically disable Xen setuid proxy if
+	PolicyKit is enabled
+	* libvirt.spec.in: force disable of Xen setuid proxy for
+	distros where PolicyKIt is enabled
+
 Wed Dec  5 14:08:00 EST 2007 Daniel P. Berrange <berrange@redhat.com>
 
 	* python/libvir.c, python/libvir.py: Add binding for the
diff --git a/configure.in b/configure.in
index 04dd873b65..b11458b187 100644
--- a/configure.in
+++ b/configure.in
@@ -571,7 +571,24 @@ if test "${enableval}" = yes; then
 fi
 
 dnl Enable building the proxy?
-AM_CONDITIONAL(WITH_PROXY,[test "x$with_xen" = "xyes"])
+
+AC_ARG_WITH(xen-proxy,
+[  --with-xen-proxy              add XEN setuid proxy support (on)],[],[with_xen_proxy=auto])
+
+AC_MSG_CHECKING([if Xen setuid proxy is needed])
+if test "$with_xen_proxy" = "auto"; then
+  if test "$with_polkit" = "yes"; then
+    with_xen_proxy="no"
+  else
+    with_xen_proxy="yes"
+  fi
+fi
+if test "$with_xen" != "yes"; then
+  with_xen_proxy="no"
+fi
+AC_MSG_RESULT([$with_xen_proxy])
+
+AM_CONDITIONAL(WITH_PROXY,[test "$with_xen_proxy" = "yes"])
 
 dnl Check for gettext
 AM_GNU_GETTEXT_VERSION([0.14.1])
@@ -628,6 +645,7 @@ AC_MSG_NOTICE([])
 AC_MSG_NOTICE([Drivers])
 AC_MSG_NOTICE([])
 AC_MSG_NOTICE([     Xen: $with_xen])
+AC_MSG_NOTICE([   Proxy: $with_xen_proxy])
 AC_MSG_NOTICE([    QEMU: $with_qemu])
 AC_MSG_NOTICE([  OpenVZ: $with_openvz])
 AC_MSG_NOTICE([    Test: $with_test])
diff --git a/libvirt.spec.in b/libvirt.spec.in
index 7598cdb4d7..2a1f5687d6 100644
--- a/libvirt.spec.in
+++ b/libvirt.spec.in
@@ -2,8 +2,10 @@
 
 %if %{fedora} >= 8
 %define with_polkit 1
+%define with_proxy no
 %else
 %define with_polkit 0
+%define with_proxy yes
 %endif
 
 Summary: Library providing a simple API virtualization
@@ -77,7 +79,10 @@ of recent versions of Linux (and other OSes).
 %setup -q
 
 %build
-%configure --with-init-script=redhat --with-qemud-pid-file=%{_localstatedir}/run/libvirt_qemud.pid --with-remote-file=%{_localstatedir}/run/libvirtd.pid
+%configure --with-init-script=redhat \
+           --with-qemud-pid-file=%{_localstatedir}/run/libvirt_qemud.pid \
+           --with-remote-file=%{_localstatedir}/run/libvirtd.pid \
+           --with-xen-proxy=%{with_proxy}
 make
 
 %install
@@ -157,7 +162,9 @@ fi
 %dir %{_localstatedir}/lib/libvirt/
 %{_datadir}/PolicyKit/policy/libvirtd.policy
 %dir %attr(0700, root, root) %{_localstatedir}/log/libvirt/qemu/
+%if %{with_proxy} == "yes"
 %attr(4755, root, root) %{_libexecdir}/libvirt_proxy
+%endif
 %attr(0755, root, root) %{_sbindir}/libvirtd
 %doc docs/*.rng
 %doc docs/*.xml