diff --git a/NEWS b/NEWS
index 9a77e29..9e2bc34 100644
--- a/NEWS
+++ b/NEWS
@@ -2,6 +2,7 @@ News file for Stow.
 
 * Changes in version 2.1.1
 ** Fixed bug where ./configure --with-pmdir=X was ineffectual.
+** Calculated the correct default value for pmdir based on the local Perl installation.
 * Changes in version 2.1.0
 ** Major refactoring of code into separate Stow and Stow::Util Perl modules.
 ** Added support for ignore list files.
diff --git a/configure.ac b/configure.ac
index b7006fd..6d63176 100644
--- a/configure.ac
+++ b/configure.ac
@@ -21,9 +21,11 @@ fi
 
 AC_ARG_WITH(
     pmdir,
-    [  --with-pmdir=DIR        perl modules are in DIR [[LIBDIR/perl5]]],
-    [PMDIR=${withval}], [PMDIR=${libdir}/perl5]
-)
+    [  --with-pmdir=DIR        Perl modules are in DIR [[LIBDIR/perl5]]],
+    [PMDIR=${withval}],
+    [eval `$PERL -V:installsitelib -V:siteprefix`
+  PMDIR='${prefix}'/"${installsitelib#$siteprefix/}"])
+AC_CONFIG_COMMANDS_POST([eval echo "Perl modules will be installed to $PMDIR"])
 AC_SUBST([PMDIR])
 
 AC_CONFIG_FILES([Makefile])