diff --git a/default.nix b/default.nix
index d9024779c..b9eedd470 100644
--- a/default.nix
+++ b/default.nix
@@ -1,2 +1,14 @@
-# Simply defer to the home-manager script derivation.
-import ./home-manager
+{ pkgs ? import <nixpkgs> {} }:
+
+rec {
+  home-manager = import ./home-manager {
+    inherit pkgs;
+    path = ./.;
+  };
+
+  install =
+    pkgs.runCommand
+      "home-manager-install"
+      { propagatedBuildInputs = [ home-manager ]; }
+      "";
+}
diff --git a/home-manager/default.nix b/home-manager/default.nix
index 5fed40554..943d61e81 100644
--- a/home-manager/default.nix
+++ b/home-manager/default.nix
@@ -1,14 +1,14 @@
 { pkgs
 
-  # Extra path to the Home Manager modules. If set then this path will
-  # be tried before `$HOME/.config/nixpkgs/home-manager/modules` and
-  # `$HOME/.nixpkgs/home-manager/modules`.
-, modulesPath ? null
+  # Extra path to Home Manager. If set then this path will be tried
+  # before `$HOME/.config/nixpkgs/home-manager` and
+  # `$HOME/.nixpkgs/home-manager`.
+, path ? null
 }:
 
 let
 
-  modulesPathStr = if modulesPath == null then "" else modulesPath;
+  pathStr = if path == null then "" else path;
 
 in
 
@@ -24,8 +24,7 @@ pkgs.stdenv.mkDerivation {
       --subst-var-by bash "${pkgs.bash}" \
       --subst-var-by coreutils "${pkgs.coreutils}" \
       --subst-var-by less "${pkgs.less}" \
-      --subst-var-by MODULES_PATH '${modulesPathStr}' \
-      --subst-var-by HOME_MANAGER_EXPR_PATH "${./home-manager.nix}"
+      --subst-var-by HOME_MANAGER_PATH '${pathStr}'
   '';
 
   meta = with pkgs.stdenv.lib; {
diff --git a/home-manager/home-manager b/home-manager/home-manager
index 55c717eea..6bfc46e66 100644
--- a/home-manager/home-manager
+++ b/home-manager/home-manager
@@ -40,13 +40,13 @@ function setConfigFile() {
     exit 1
 }
 
-function setHomeManagerModulesPath() {
-    local modulesPath
-    for modulesPath in "@MODULES_PATH@" \
-                       "$HOME/.config/nixpkgs/home-manager/modules" \
-                       "$HOME/.nixpkgs/home-manager/modules" ; do
-        if [[ -e "$modulesPath" ]] ; then
-            export NIX_PATH="$NIX_PATH${NIX_PATH:+:}home-manager=$modulesPath"
+function setHomeManagerNixPath() {
+    local path
+    for path in "@HOME_MANAGER_PATH@" \
+                "$HOME/.config/nixpkgs/home-manager" \
+                "$HOME/.nixpkgs/home-manager" ; do
+        if [[ -e "$path" || "$path" =~ ^https?:// ]] ; then
+            export NIX_PATH="$NIX_PATH${NIX_PATH:+:}home-manager=$path"
             return
         fi
     done
@@ -54,7 +54,7 @@ function setHomeManagerModulesPath() {
 
 function doBuildAttr() {
     setConfigFile
-    setHomeManagerModulesPath
+    setHomeManagerNixPath
 
     local extraArgs="$*"
 
@@ -67,7 +67,7 @@ function doBuildAttr() {
     fi
 
     nix-build \
-        "@HOME_MANAGER_EXPR_PATH@" \
+        "<home-manager/home-manager/home-manager.nix>" \
         $extraArgs \
         --argstr confPath "$HOME_MANAGER_CONFIG" \
         --argstr confAttr "$HOME_MANAGER_CONFIG_ATTRIBUTE"
diff --git a/home-manager/home-manager.nix b/home-manager/home-manager.nix
index a6c9259f8..206a1bcef 100644
--- a/home-manager/home-manager.nix
+++ b/home-manager/home-manager.nix
@@ -9,7 +9,7 @@ with pkgs.lib;
 
 let
 
-  env = import <home-manager> {
+  env = import <home-manager/modules> {
     configuration =
       let
         conf = import confPath;
diff --git a/modules/misc/news.nix b/modules/misc/news.nix
index f14248ecb..b17b04542 100644
--- a/modules/misc/news.nix
+++ b/modules/misc/news.nix
@@ -370,6 +370,46 @@ in
           chosen version.
         '';
       }
+
+      {
+        time = "2017-10-23T22:54:33+00:00";
+        condition = config.programs.home-manager.modulesPath != null;
+        message = ''
+          The 'programs.home-manager.modulesPath' option is now
+          deprecated and will be removed on November 24, 2017. Please
+          use the option 'programs.home-manager.path' instead.
+        '';
+      }
+
+      {
+        time = "2017-10-23T23:10:29+00:00";
+        condition = !config.programs.home-manager.enable;
+        message = ''
+          Unfortunately, due to some internal restructuring it is no
+          longer possible to install the home-manager command when
+          having
+
+              home-manager = import ./home-manager { inherit pkgs; };
+
+          in the '~/.config/nixpkgs/config.nix' package override
+          section. Attempting to use the above override will now
+          result in the error "cannot coerce a set to a string".
+
+          To resolve this please delete the override from the
+          'config.nix' file and either link the Home Manager overlay
+
+              $ ln -s ~/.config/nixpkgs/home-manager/overlay.nix \
+                      ~/.config/nixpkgs/overlays/home-manager.nix
+
+          or add
+
+              programs.home-manager.enable = true;
+
+          to your Home Manager configuration. The latter is
+          recommended as the home-manager tool then is updated
+          automatically whenever you do a switch.
+        '';
+      }
     ];
   };
 }
diff --git a/modules/programs/home-manager.nix b/modules/programs/home-manager.nix
index ad7278a12..2fac0bce3 100644
--- a/modules/programs/home-manager.nix
+++ b/modules/programs/home-manager.nix
@@ -16,6 +16,19 @@ in
     programs.home-manager = {
       enable = mkEnableOption "Home Manager";
 
+      path = mkOption {
+        type = types.nullOr types.str;
+        default = null;
+        example = "$HOME/devel/home-manager";
+        description = ''
+          The default path to use for Home Manager. If this path does
+          not exist then
+          <filename>$HOME/.config/nixpkgs/home-manager</filename> and
+          <filename>$HOME/.nixpkgs/home-manager</filename> will be
+          attempted.
+        '';
+      };
+
       modulesPath = mkOption {
         type = types.nullOr types.str;
         default = null;
@@ -25,17 +38,28 @@ in
           path does not exist then
           <filename>$HOME/.config/nixpkgs/home-manager/modules</filename>
           and <filename>$HOME/.nixpkgs/home-manager/modules</filename>
-          will be attempted.
+          will be attempted. DEPRECATED: Use
+          <varname>programs.home-manager.path</varname> instead.
         '';
       };
     };
   };
 
   config = mkIf cfg.enable {
+    assertions = [{
+      assertion = cfg.path == null || cfg.modulesPath == null;
+      message = "Cannot simultaneously use "
+        + "'programs.home-manager.path' and "
+        + "'programs.home-manager.modulesPath'.";
+    }];
+
     home.packages = [
       (import ../../home-manager {
         inherit pkgs;
-        inherit (cfg) modulesPath;
+        path =
+          if cfg.modulesPath != null
+          then "$(dirname ${cfg.modulesPath})"
+          else cfg.path;
       })
     ];