diff --git a/cmake/Modules/OpmDefaults.cmake b/cmake/Modules/OpmDefaults.cmake
index 2e130363..b34c4206 100644
--- a/cmake/Modules/OpmDefaults.cmake
+++ b/cmake/Modules/OpmDefaults.cmake
@@ -1,8 +1,24 @@
 # - Default settings for the build
 
 include (UseCompVer)
+include(TestCXXAcceptsFlag)
 
 macro (opm_defaults opm)
+  # if we are installing a development version (default when checking out of
+  # VCS), then remember which directories were used when configuring. package
+  # distribution should disable this option.
+  option (USE_RUNPATH "Embed original dependency paths in installed library" ON)
+  if (USE_RUNPATH)
+	if (CMAKE_COMPILER_IS_GNUCXX)
+	  check_cxx_accepts_flag ("-Wl,--enable-new-dtags" HAVE_RUNPATH)
+	  if (HAVE_RUNPATH)
+		list (APPEND ${opm}_LINKER_FLAGS "-Wl,--enable-new-dtags")
+	  endif (HAVE_RUNPATH)
+	endif (CMAKE_COMPILER_IS_GNUCXX)
+	# set this to avoid CMake stripping it off again
+	set (CMAKE_INSTALL_RPATH_USE_LINK_PATH TRUE)
+  endif (USE_RUNPATH)
+
   # build release by default
   if (NOT CMAKE_CONFIGURATION_TYPES AND NOT CMAKE_BUILD_TYPE)
 	set (CMAKE_BUILD_TYPE "Release")
diff --git a/cmake/Scripts/configure b/cmake/Scripts/configure
index c9b13f8a..04a9c804 100755
--- a/cmake/Scripts/configure
+++ b/cmake/Scripts/configure
@@ -19,6 +19,7 @@ Optional Features:
                           of the options shared and static may be built.
   --enable-debug          build a non-optimized version of the library
                           [default=no]
+  --disable-runpath       do not use RUNPATH in installed library [default=yes]
   --enable-lto            use whole program optimization [default=no]
   --disable-tests         do not compile and enable unit tests [default=yes]
   --disable-examples      do not compile example programs [default=yes]
@@ -108,6 +109,8 @@ silent_rules=
 debug_loc=
 #use_lto=" -DWHOLE_PROG_OPTIM=OFF"
 use_lto=
+#use_runpath=" -DUSE_RUNPATH=OFF"
+use_runpath=
 #use_tests=" -DBUILD_TESTING=ON"
 use_tests=
 #use_samples=" -DBUILD_EXAMPLES=ON"
@@ -235,6 +238,10 @@ for OPT in "$@"; do
               pch_use=" -DPRECOMPILE_HEADERS:BOOL=OFF"
               pkgname=""
               ;;
+            runpath)
+              use_runpath=" -DUSE_RUNPATH=OFF"
+              pkgname=""
+              ;;
             silent-rules)
               silent_rules=" -DCMAKE_VERBOSE_MAKEFILE=ON"
               pkgname=""
@@ -313,6 +320,10 @@ for OPT in "$@"; do
               pch_use=" -DPRECOMPILE_HEADERS:BOOL=ON"
               shared=""
               ;;
+            runpath)
+              use_runpath=" -DUSE_RUNPATH=ON"
+              shared=""
+              ;;              
             lto)
               use_lto=" -DWHOLE_PROG_OPTIM=ON"
               shared=""
@@ -373,7 +384,7 @@ for a in "${VARS[@]}"; do
 done
 
 # pass everything on to CMake
-CMDLINE="env ${ENVVARS} ${CMAKE_COMMAND} \"${srcdir}\" \"-DCMAKE_INSTALL_PREFIX=$prefix\"${buildtype}${pch_use}${silent_rules}${debug_loc}${use_openmp}${use_mpi}${use_lto}${use_tests}${use_samples} ${FEATURES}"
+CMDLINE="env ${ENVVARS} ${CMAKE_COMMAND} \"${srcdir}\" \"-DCMAKE_INSTALL_PREFIX=$prefix\"${buildtype}${pch_use}${silent_rules}${debug_loc}${use_openmp}${use_mpi}${use_lto}${use_runpath}${use_tests}${use_samples} ${FEATURES}"
 echo --- calling CMake ---
 echo ${CMDLINE}
 eval exec ${CMDLINE}
diff --git a/debian/rules b/debian/rules
index d6fcf5f4..5e8d7c71 100755
--- a/debian/rules
+++ b/debian/rules
@@ -19,7 +19,7 @@ override_dh_auto_build:
 	dh_auto_build --buildsystem=cmake
 
 override_dh_auto_configure:
-	dh_auto_configure --buildsystem=cmake -- -DCMAKE_BUILD_TYPE=Release -DBUILD_SHARED_LIBS=1 -DCMAKE_INSTALL_DOCDIR=share/doc/libopm-core1 -DWHOLE_PROG_OPTIM=ON
+	dh_auto_configure --buildsystem=cmake -- -DCMAKE_BUILD_TYPE=Release -DBUILD_SHARED_LIBS=1 -DCMAKE_INSTALL_DOCDIR=share/doc/libopm-core1 -DWHOLE_PROG_OPTIM=ON -DUSE_RUNPATH=OFF
 
 override_dh_auto_install:
 	dh_auto_install -- install-html
diff --git a/redhat/opm-core.spec b/redhat/opm-core.spec
index 4a9622ba..0b1f85e4 100644
--- a/redhat/opm-core.spec
+++ b/redhat/opm-core.spec
@@ -59,7 +59,7 @@ This package contains the applications for opm-core
 %setup -q
 
 %build
-cmake28 -DBUILD_SHARED_LIBS=1 -DCMAKE_BUILD_TYPE=Release -DCMAKE_INSTALL_PREFIX=%{_prefix} -DCMAKE_INSTALL_DOCDIR=share/doc/%{name}-%{version} -DWHOLE_PROG_OPTIM=ON
+cmake28 -DBUILD_SHARED_LIBS=1 -DCMAKE_BUILD_TYPE=Release -DCMAKE_INSTALL_PREFIX=%{_prefix} -DCMAKE_INSTALL_DOCDIR=share/doc/%{name}-%{version} -DWHOLE_PROG_OPTIM=ON -DUSE_RUNPATH=OFF
 make
 
 %install