diff --git a/conf.d/Makefile.am b/conf.d/Makefile.am
index 77597e5..e1fab50 100644
--- a/conf.d/Makefile.am
+++ b/conf.d/Makefile.am
@@ -21,8 +21,9 @@
 #  TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE USE OR
 #  PERFORMANCE OF THIS SOFTWARE.
 
-DOC_FILES= \
-	README
+BUILT_SOURCES = README
+DOC_SOURCES = README.in
+DOC_FILES = $(DOC_SOURCES:.in=)
 
 CONF_LINKS = \
 	10-scale-bitmap-fonts.conf \
@@ -41,7 +42,8 @@ CONF_LINKS = \
 	80-delicious.conf \
 	90-synthetic.conf
 
-EXTRA_DIST = $(template_DATA) $(DOC_FILES)
+EXTRA_DIST = $(template_DATA) $(DOC_SOURCES)
+CLEANFILES = $(DOC_FILES)
 
 configdir=$(CONFIGDIR)
 config_DATA = $(DOC_FILES)
@@ -78,6 +80,9 @@ template_DATA =				\
 	80-delicious.conf		\
 	90-synthetic.conf
 
+README: $(srcdir)/README.in
+	sed "s|\@TEMPLATEDIR\@|$(templatedir)|" $< > $@
+
 install-data-hook:
 	mkdir -p $(DESTDIR)$(configdir)
 	@(echo cd $(DESTDIR)$(configdir);			\
diff --git a/conf.d/README b/conf.d/README.in
similarity index 82%
rename from conf.d/README
rename to conf.d/README.in
index c2fb52c..90c45de 100644
--- a/conf.d/README
+++ b/conf.d/README.in
@@ -2,9 +2,9 @@ conf.d/README
 
 Each file in this directory is a fontconfig configuration file.  Fontconfig
 scans this directory, loading all files of the form [0-9][0-9]*.conf.
-These files are normally installed in ../conf.avail and then symlinked here,
-allowing them to be easily installed and then enabled/disabled by adjusting
-the symlinks.
+These files are normally installed in @TEMPLATEDIR@
+and then symlinked here, allowing them to be easily installed and then
+enabled/disabled by adjusting the symlinks.
 
 The files are loaded in numeric order, the structure of the configuration
 has led to the following conventions in usage: