diff --git a/xbps-src/etc/Makefile b/xbps-src/etc/Makefile
index dffa0f4bfd0..60d5be0fb16 100644
--- a/xbps-src/etc/Makefile
+++ b/xbps-src/etc/Makefile
@@ -4,12 +4,9 @@ CONF_FILE = xbps-src.conf
 
 .PHONY: all
 all:
-	sed -e "s|@@XBPS_INSTALL_PREFIX@@|$(PREFIX)|g" \
-		$(CONF_FILE).in > $(CONF_FILE)
 
 .PHONY: clean
 clean:
-	-rm -f $(CONF_FILE)
 
 .PHONY: install
 install:
diff --git a/xbps-src/etc/xbps-src.conf.in b/xbps-src/etc/xbps-src.conf.in
index b4404b024ff..b73bad0bf62 100644
--- a/xbps-src/etc/xbps-src.conf.in
+++ b/xbps-src/etc/xbps-src.conf.in
@@ -2,12 +2,6 @@
 # Configuration file for xbps-src.
 #
 
-#
-# Directory where xbps-src has been installed. By default /usr/local.
-# Usually you don't have to change this one, it's set by "make install".
-#
-XBPS_INSTALLDIR=@@XBPS_INSTALL_PREFIX@@
-
 #
 # Directory where the xbps-src GIT repository is stored. This is
 # required to be mounted in the chroot.
@@ -19,23 +13,6 @@ XBPS_DISTRIBUTIONDIR=$HOME/xbps-templates
 #
 XBPS_MASTERDIR=$XBPS_DISTRIBUTIONDIR/masterdir
 
-#
-# Directory where a local binary package repository is available
-# (or will be created from). Packages will be stored here.
-#
-XBPS_PACKAGESDIR=$XBPS_DISTRIBUTIONDIR/packages
-
-#
-# Directory where source files will be extracted to and build object
-# files will live on.
-#
-XBPS_BUILDDIR=$XBPS_DISTRIBUTIONDIR/builddir
-
-#
-# Directory where source distribution files are stored.
-#
-XBPS_SRCDISTDIR=$XBPS_DISTRIBUTIONDIR/srcdistdir
-
 #
 # Compilation flags for cc and c++.
 #
diff --git a/xbps-src/libexec/xbps-src-chroot-helper.sh.in b/xbps-src/libexec/xbps-src-chroot-helper.sh.in
index d08118b020f..ed301dae44b 100644
--- a/xbps-src/libexec/xbps-src-chroot-helper.sh.in
+++ b/xbps-src/libexec/xbps-src-chroot-helper.sh.in
@@ -31,8 +31,7 @@ HANDLER="$1"
 
 . @@XBPS_INSTALL_ETCDIR@@/xbps-src.conf
 
-EXTDIRS="xbps xbps_builddir xbps_packagesdir xbps_srcdistdir"
-REQFS="sys proc dev ${EXTDIRS}"
+REQFS="sys proc dev xbps"
 
 mount_chroot_fs()
 {
@@ -46,9 +45,6 @@ mount_chroot_fs()
 			fi
 			case ${f} in
 				xbps) blah=${XBPS_DISTRIBUTIONDIR};;
-				xbps_builddir) blah=${XBPS_BUILDDIR};;
-				xbps_srcdistdir) blah=${XBPS_SRCDISTDIR};;
-				xbps_packagesdir) blah=${XBPS_PACKAGESDIR};;
 				*) blah=/${f};;
 			esac
 			[ ! -d ${blah} ] && echo "failed." && continue
@@ -91,10 +87,8 @@ umount_chroot_fs()
 	done
 
 	# Remove created dirs
-	for dir in ${EXTDIRS}; do
-		[ -f ${XBPS_MASTERDIR}/.${dir}_mount_bind_done ] && continue
-		[ -d ${XBPS_MASTERDIR}/${dir} ] && rmdir ${XBPS_MASTERDIR}/${dir}
-	done
+	[ -f ${XBPS_MASTERDIR}/.xbps_mount_bind_done ] && continue
+	[ -d ${XBPS_MASTERDIR}/xbps ] && rmdir ${XBPS_MASTERDIR}/xbps
 }
 
 if [ $# -ne 1 ]; then
diff --git a/xbps-src/shutils/chroot.sh.in b/xbps-src/shutils/chroot.sh.in
index c777048b63e..0d36023fccb 100644
--- a/xbps-src/shutils/chroot.sh.in
+++ b/xbps-src/shutils/chroot.sh.in
@@ -60,9 +60,6 @@ XBPSSRC_CF=$XBPS_MASTERDIR/usr/local/etc/xbps-src.conf
 
 echo "XBPS_DISTRIBUTIONDIR=/xbps" > $XBPSSRC_CF
 echo "XBPS_MASTERDIR=/" >> $XBPSSRC_CF
-echo "XBPS_PACKAGESDIR=/xbps_packagesdir" >> $XBPSSRC_CF
-echo "XBPS_BUILDDIR=/xbps_builddir" >> $XBPSSRC_CF
-echo "XBPS_SRCDISTDIR=/xbps_srcdistdir" >> $XBPSSRC_CF
 echo "XBPS_CFLAGS=\"$XBPS_CFLAGS\"" >> $XBPSSRC_CF
 echo "XBPS_CXXFLAGS=\"\$XBPS_CFLAGS\"" >> $XBPSSRC_CF
 echo "XBPS_FETCH_CMD='xbps-uhelper.static fetch'" >> $XBPSSRC_CF
@@ -141,12 +138,18 @@ ff02::2 ip6-allrouters
 ff02::3 ip6-allhosts
 _EOF
 
-	# Create /bin/sh symlink to bash
-	cd $XBPS_MASTERDIR/bin && ln -sf bash sh
+	create_binsh_symlink
 
 	touch $XBPS_MASTERDIR/.xbps_perms_done
 }
 
+create_binsh_symlink()
+{
+	if [ ! -h $XBPS_MASTERDIR/bin/sh ]; then
+		cd $XBPS_MASTERDIR/bin && ln -sf bash sh
+	fi
+}
+
 prepare_binpkg_repos()
 {
 	if [ ! -f "$XBPS_MASTERDIR/.xbps_added_local_repo" ]; then
@@ -206,7 +209,7 @@ xbps_chroot_handler()
 	local pkg="$2"
 	local only_destdir="$3"
 	local norm_builddir="$4"
-	local path="/usr/local/sbin:/bin::/sbin:/usr/bin:/usr/sbin:/usr/local/bin"
+	local path="/tools/bin:/usr/local/sbin:/usr/local/bin:/bin:/sbin:/usr/bin:/usr/sbin"
 	[ -z "$action" -o -z "$pkg" ] && return 1
 
 	[ "$action" != "configure" -a "$action" != "build" -a \
@@ -218,11 +221,14 @@ xbps_chroot_handler()
 		echo "done."
 	fi
 
+	create_binsh_symlink
 	create_busybox_links
 	install_xbps_utils
 	${sudo_cmd} @@XBPS_INSTALL_LIBEXECDIR@@/xbps-src-chroot-helper mount
 	[ $? -ne 0 ] && return $?
-	prepare_binpkg_repos
+	if [ -n "$XBPS_PREFER_BINPKG_DEPS" ]; then
+		prepare_binpkg_repos
+	fi
 
 	# Reinstall xbps-src in the chroot
 	if [ ! -f $XBPS_MASTERDIR/usr/local/sbin/xbps-src ]; then
diff --git a/xbps-src/shutils/init_funcs.sh.in b/xbps-src/shutils/init_funcs.sh.in
index e6015558dbc..e6bca739f85 100644
--- a/xbps-src/shutils/init_funcs.sh.in
+++ b/xbps-src/shutils/init_funcs.sh.in
@@ -37,11 +37,15 @@ set_defvars()
 	: ${XBPS_META_PATH:=$XBPS_DBDIR/}
 	: ${XBPS_PKGMETADIR:=$XBPS_DBDIR/metadata}
 	: ${XBPS_SRCPKGDIR:=$XBPS_DISTRIBUTIONDIR/srcpkgs}
-	if [ -n "$in_chroot" ]; then
-		: ${XBPS_DESTDIR:=/pkg-destdir}
-	else
-		: ${XBPS_DESTDIR:=$XBPS_MASTERDIR/pkg-destdir}
-	fi
+	: ${XBPS_DESTDIR:=$XBPS_MASTERDIR/pkg-destdir}
+	: ${XBPS_PACKAGESDIR:=$XBPS_MASTERDIR/pkg-binpkgs}
+	: ${XBPS_BUILDDIR:=$XBPS_MASTERDIR/pkg-builddir}
+	: ${XBPS_SRCDISTDIR:=$XBPS_MASTERDIR/pkg-srcdistdir}
+
+	for i in DESTDIR PACKAGESDIR BUILDDIR SRCDISTDIR; do
+		eval val="\$XBPS_$i"
+		[ ! -d "$val" ] && mkdir -p $val
+	done
 
 	DDIRS="XBPS_TRIGGERSDIR XBPS_HELPERSDIR"
 	DDIRS="$DDIRS XBPS_COMMONVARSDIR XBPS_SHUTILSDIR"
diff --git a/xbps-src/xbps-src.sh.in b/xbps-src/xbps-src.sh.in
index 5dace06d52b..cb76542540d 100644
--- a/xbps-src/xbps-src.sh.in
+++ b/xbps-src/xbps-src.sh.in
@@ -99,7 +99,7 @@ run_file()
 
 check_config_vars()
 {
-	local cffound f
+	local val cffound f
 
 	if [ -z "$config_file_specified" ]; then
 		config_file_paths="$XBPS_CONFIG_FILE ./etc/xbps-src.conf"
@@ -117,17 +117,12 @@ check_config_vars()
 		msg_error "cannot find configuration file: $XBPS_CONFIG_FILE"
 	fi
 
-	local XBPS_VARS="XBPS_MASTERDIR XBPS_BUILDDIR XBPS_SRCDISTDIR \
-			 XBPS_PACKAGESDIR"
-	for f in ${XBPS_VARS}; do
-		eval val="\$$f"
-		[ -z "$val" ] && msg_error "'$f' not set in configuration file"
-
-		if [ ! -d "$val" ]; then
-			mkdir "$val"
-			[ $? -ne 0 ] && msg_error "couldn't create '$f' directory"
-		fi
-	done
+	eval val="\$XBPS_MASTERDIR"
+	[ -z "$val" ] && msg_error "'XBPS_MASTERDIR' not set in configuration file"
+	if [ ! -d "$val" ]; then
+		mkdir "$val"
+		[ $? -ne 0 ] && msg_error "couldn't create 'XBPS_MASTERDIR' directory"
+	fi
 
 	export PATH="@@XBPS_INSTALL_PREFIX@@/sbin:$PATH"
 }