diff --git a/Makefile.am b/Makefile.am
index 9f1cbd1..d8da3fa 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -8,7 +8,7 @@ dist_doc_DATA = \
 	doc/manual.pdf doc/manual-single.html doc/version.texi \
 	ChangeLog doc/ChangeLog.OLD
 
-pmdir = $(libdir)/perl5
+pmdir = $(PMDIR)
 dist_pm_DATA = lib/Stow.pm
 pmstowdir = $(pmdir)/Stow
 dist_pmstow_DATA = lib/Stow/Util.pm
diff --git a/NEWS b/NEWS
index 1c98110..9a77e29 100644
--- a/NEWS
+++ b/NEWS
@@ -1,5 +1,7 @@
 News file for Stow.
 
+* Changes in version 2.1.1
+** Fixed bug where ./configure --with-pmdir=X was ineffectual.
 * 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 e95b801..b7006fd 100644
--- a/configure.ac
+++ b/configure.ac
@@ -24,6 +24,7 @@ AC_ARG_WITH(
     [  --with-pmdir=DIR        perl modules are in DIR [[LIBDIR/perl5]]],
     [PMDIR=${withval}], [PMDIR=${libdir}/perl5]
 )
+AC_SUBST([PMDIR])
 
 AC_CONFIG_FILES([Makefile])
 AC_OUTPUT