diff --git a/Makefile.am b/Makefile.am
index d3d5f57a15..35f4771254 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -40,6 +40,7 @@ dist_doc_DATA = \
 # CVS dirs.
 
 EXTRA_DIST = \
+  $(SWIG_DIST_FAIL) \
   make-gnucash-potfiles.in \
   macros/as-scrub-include.m4 \
   macros/binreloc.m4 \
@@ -146,6 +147,14 @@ distuninstallcheck_listfiles = \
 
 #dist-hook: po/POTFILES.in
 
+# Make "make dist" fail if we have the wrong version of swig
+if SWIG_DIST_FAIL
+SWIG_DIST_FAIL = swig-dist-fail
+swig-dist-fail:
+	@echo "You cannot build the dist with your version of swig"
+	@exit 1
+endif
+
 distcheck-hook:
 	@e=''; \
 	for X in `grep -v \# ${distdir}/po/POTFILES.in | sed 's/\[type:.*\]//'` ; do \
diff --git a/configure.ac b/configure.ac
index 198137594f..bc047df62b 100644
--- a/configure.ac
+++ b/configure.ac
@@ -476,21 +476,51 @@ AM_CONDITIONAL(GNC_HAVE_GUILE_WWW, test "${gnc_have_guile_www}" = yes)
 ### --------------------------------------------------------------------------
 ### SWIG version checks (only when building from SCM)
 #
-# We need at least version 2.0.10 of SWIG because that's the first version
-# that supports guile 2
-# For a guile 1.8 build we could have gotten away with an older version
-# but we need to apply a patch to the swig generated files that needs to
-# go into the release tarball. At that point we don't know yet which
-# version of guile will be used together with that tarball so we have
-# to prepare the tarball for guile 2 compatibility.
+# In order to build against guile 2 or build the dist we need at least
+# version 2.0.10 of SWIG, because that's the first version that supports
+# guile 2.
+#
+# For a guile 1.8 build we accept an older version, but wont allow you
+# to build the dist because we need to apply a patch to the swig
+# generated files that needs to go into the release tarball. At that
+# point we don't know yet which version of guile will be used together
+# with that tarball so we have to prepare the tarball for guile 2
+# compatibility.
+#
 if test "${BUILDING_FROM_SCM}" = yes
 then
-    AX_PKG_SWIG(2.0.10, [],
-                [AC_MSG_ERROR([
+    AX_PKG_SWIG(2.0.10, [gnc_have_swig_2_0_10=yes], [gnc_have_swig_2_0_10=no])
+
+    if test "${gnc_have_guile_2}" = yes
+    then
+        if test "${gnc_have_swig_2_0_10}" = no
+        then
+            AC_MSG_ERROR([
     You are building from ${SCM_TYPE} but swig was not found or too old.
     To build gnucash you need at least swig version 2.0.10.
-  ])])
+            ])
+        fi
+    else  # using guile 1.8
+        if test "${gnc_have_swig_2_0_10}" = no
+        then
+            AX_PKG_SWIG(1.3.31, [],
+                [AC_MSG_ERROR([
+    You are building from ${SCM_TYPE} but swig was not found or too old.
+    To build gnucash with guile 1.8 you need at least swig version 1.3.31.
+            ])])
+        fi
+    fi
+
+    # If we get here then we have an okay version to build locally.
+    # Check if we can build dist (which always requires swig 2.0.10)
+    if test "${gnc_have_swig_2_0_10}" = no
+    then
+        AC_MSG_WARN([You don't have SWIG 2.0.10 so you will not be able to "make dist"])
+    fi
 fi
+
+AM_CONDITIONAL([SWIG_DIST_FAIL], test "${gnc_have_swig_2_0_10}" != yes)
+
 ### --------------------------------------------------------------------------
 ### LIBXML -- GNOME_XML_LIB is defined by GNOME_XML_CHECK
 
diff --git a/src/app-utils/Makefile.am b/src/app-utils/Makefile.am
index 5fc3586f90..8627c5dd95 100644
--- a/src/app-utils/Makefile.am
+++ b/src/app-utils/Makefile.am
@@ -110,10 +110,12 @@ swig-app-utils-guile.c: app-utils.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
+endif
 swig-app-utils-python.c: app-utils.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -python -Wall -Werror $(SWIG_ARGS) \
 	-I${top_srcdir}/src -o $@ $<
diff --git a/src/core-utils/Makefile.am b/src/core-utils/Makefile.am
index a26dfea2ef..b067e881dc 100644
--- a/src/core-utils/Makefile.am
+++ b/src/core-utils/Makefile.am
@@ -47,10 +47,12 @@ swig-core-utils-guile.c: core-utils.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
+endif
 swig-core-utils-python.c: core-utils.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -python -Wall -Werror $(SWIG_ARGS) \
 	-I${top_srcdir}/src -o $@ $<
diff --git a/src/engine/Makefile.am b/src/engine/Makefile.am
index 5d6f8a06ac..a550530739 100644
--- a/src/engine/Makefile.am
+++ b/src/engine/Makefile.am
@@ -206,11 +206,13 @@ swig-engine.c: engine.i $(top_srcdir)/src/base-typemaps.i \
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src/libqof/qof -I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 iso-4217-currencies.c: iso-4217-currencies.scm iso-currencies-to-c
 	-chmod u+x ./iso-currencies-to-c
diff --git a/src/gnc-module/Makefile.am b/src/gnc-module/Makefile.am
index b11cee08d4..7ee546b014 100644
--- a/src/gnc-module/Makefile.am
+++ b/src/gnc-module/Makefile.am
@@ -34,11 +34,13 @@ swig-gnc-module.c: gnc-module.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 EXTRA_DIST = \
   ${gncmod_DATA} \
diff --git a/src/gnc-module/test/mod-bar/Makefile.am b/src/gnc-module/test/mod-bar/Makefile.am
index 368b14fc27..d076bae112 100644
--- a/src/gnc-module/test/mod-bar/Makefile.am
+++ b/src/gnc-module/test/mod-bar/Makefile.am
@@ -26,11 +26,13 @@ if BUILDING_FROM_SCM
 swig-bar.c: bar.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 EXTRA_DIST = \
   bar.i \
diff --git a/src/gnc-module/test/mod-baz/Makefile.am b/src/gnc-module/test/mod-baz/Makefile.am
index fad5672e2b..82d8a699f1 100644
--- a/src/gnc-module/test/mod-baz/Makefile.am
+++ b/src/gnc-module/test/mod-baz/Makefile.am
@@ -30,11 +30,13 @@ if BUILDING_FROM_SCM
 swig-baz.c: baz.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 EXTRA_DIST = \
   baz.i \
diff --git a/src/gnc-module/test/mod-foo/Makefile.am b/src/gnc-module/test/mod-foo/Makefile.am
index 6938cda448..cd06ed96ef 100644
--- a/src/gnc-module/test/mod-foo/Makefile.am
+++ b/src/gnc-module/test/mod-foo/Makefile.am
@@ -31,11 +31,13 @@ if BUILDING_FROM_SCM
 swig-foo.c: foo.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 BUILT_SOURCES = swig-foo.c
 MAINTAINERCLEANFILES = swig-foo.c
diff --git a/src/gnome-utils/Makefile.am b/src/gnome-utils/Makefile.am
index 6d723dbf14..b973a6bb8f 100644
--- a/src/gnome-utils/Makefile.am
+++ b/src/gnome-utils/Makefile.am
@@ -229,11 +229,13 @@ swig-gnome-utils.c: gnome-utils.i \
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 gncmoddir = ${GNC_SHAREDIR}/guile-modules/gnucash
 gncmod_DATA = gnome-utils.scm 
diff --git a/src/gnome/Makefile.am b/src/gnome/Makefile.am
index 2fc53b3ddf..41ed1f9e70 100644
--- a/src/gnome/Makefile.am
+++ b/src/gnome/Makefile.am
@@ -116,11 +116,13 @@ swig-gnome.c: gnome.i dialog-progress.h ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 EXTRA_DIST = \
   gnome.i \
diff --git a/src/html/Makefile.am b/src/html/Makefile.am
index 725b704f8f..5013e92ce5 100644
--- a/src/html/Makefile.am
+++ b/src/html/Makefile.am
@@ -60,11 +60,13 @@ swig-gnc-html.c: gnc-html.i gnc-html.h \
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 EXTRA_DIST = \
   gnc-html.i
diff --git a/src/report/report-gnome/Makefile.am b/src/report/report-gnome/Makefile.am
index 9200a7d01e..5f65a0ed5a 100644
--- a/src/report/report-gnome/Makefile.am
+++ b/src/report/report-gnome/Makefile.am
@@ -54,11 +54,13 @@ swig-report-gnome.c: report-gnome.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 gncmoddir = ${GNC_SHAREDIR}/guile-modules/gnucash/report
 gncmod_DATA = report-gnome.scm
diff --git a/src/report/report-system/Makefile.am b/src/report/report-system/Makefile.am
index 425cce3c2a..da487d1cbd 100644
--- a/src/report/report-system/Makefile.am
+++ b/src/report/report-system/Makefile.am
@@ -26,11 +26,13 @@ swig-report-system.c: report-system.i ${top_srcdir}/src/base-typemaps.i
 	$(SWIG) -guile $(SWIG_ARGS) -Linkage module \
 	-I${top_srcdir}/src -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
 endif
+endif
 
 AM_CPPFLAGS = \
   -I${top_srcdir}/src \
diff --git a/src/test-core/Makefile.am b/src/test-core/Makefile.am
index fb31c58445..8ed78a4fdf 100644
--- a/src/test-core/Makefile.am
+++ b/src/test-core/Makefile.am
@@ -29,10 +29,12 @@ swig-unittest-support-guile.c: unittest-support.i $(top_srcdir)/src/base-typemap
 	-I${top_srcdir}/src \
 	${AM_CPPFLAGS} -o $@ $<
 if ! OS_WIN32
+if ! SWIG_DIST_FAIL
 	if ! `grep "define scm_from_utf8_string" $@ > /dev/null 2>&1`; then \
 	  patch $@ $(top_srcdir)/src/swig-utf8.patch; \
 	fi
 endif
+endif
 
 swig-unittest-support-python.c: unittest-support.i $(top_srcdir)/src/base-typemaps.i
 	$(SWIG) -python  -Wall -Werror $(SWIG_ARGS) \