diff --git a/build/conf/local.conf b/build/conf/local.conf.sample
similarity index 95%
rename from build/conf/local.conf
rename to build/conf/local.conf.sample
index 49d6fc7e1e..f933fb183f 100755
--- a/build/conf/local.conf
+++ b/build/conf/local.conf.sample
@@ -1,6 +1,6 @@
 # Where to cache the files OE downloads
-DL_DIR = "/usr/oe/sources"
-BBFILES := "/usr/ohoe/openembedded/packages/*/*.bb"
+DL_DIR = "POKYROOT/sources"
+BBFILES := "POKYROOT/openembedded/packages/*/*.bb"
 
 BBMASK = ""
 PREFERRED_PROVIDERS = "virtual/qte:qte-for-opie virtual/libqpe:libqpe-opie"
diff --git a/openembedded/conf/local.conf.sample b/openembedded/conf/local.conf.sample
index 489b0deb19..52a0d5f120 100644
--- a/openembedded/conf/local.conf.sample
+++ b/openembedded/conf/local.conf.sample
@@ -1,3 +1,8 @@
+# XXXX NOTE XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
+#
+# This file is not used, see build/conf/local.conf instead
+#
+# XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
 #
 # OpenEmbedded local configuration file (sample)
 #
diff --git a/setdevenv b/setdevenv
index 0c3c572fe0..decbf6a30f 100755
--- a/setdevenv
+++ b/setdevenv
@@ -24,9 +24,9 @@ if ! (test -d $BBDIR && test -d $PKGDIR && test -d $BUILDDIR); then
     exit 1
 fi
 
-if !(test -r $PKGDIR/conf/local.conf); then
+if !(test -r $BUILDDIR/conf/local.conf); then
    echo "Setting up initial '$PKGDIR/conf/local.conf'."
-   cat $PKGDIR/conf/local.conf.sample | sed -e"s|POKYROOT|${OEROOT}|" > $PKGDIR/conf/local.conf
+   cat $BUILDDIR/conf/local.conf.sample | sed -e"s|POKYROOT|${OEROOT}|" > $BUILDDIR/conf/local.conf
 fi	
 
 BBPATH=$BBDIR