diff --git a/init/python.in b/init/python.in
index c65e2e41..79f9ddaa 100644
--- a/init/python.in
+++ b/init/python.in
@@ -6,6 +6,8 @@ if not os.environ.has_key('MODULE_VERSION'):
 else:
         os.environ['MODULE_VERSION_STACK'] = os.environ['MODULE_VERSION']
 
+os.environ['MODULESHOME'] = '@prefix@'
+
 if not os.environ.has_key('MODULEPATH'):
         os.environ['MODULEPATH'] = os.popen("""sed 's/#.*$//' ${MODULESHOME}/init/.modulespath | awk 'NF==1{printf("%s:",$1)}'""").readline()