diff --git a/src/bin/sage-env b/src/bin/sage-env
index ead308f861..ed8db9f9b7 100644
--- a/src/bin/sage-env
+++ b/src/bin/sage-env
@@ -111,6 +111,8 @@ resolvelinks() {
 }
 
 
+SAGE_ROOT="@out@/sage-root"
+
 # New value for SAGE_ROOT: either SAGE_ROOT (if given)
 # or a guessed value based on pwd.
 if [ -n "$SAGE_ROOT" ]; then
@@ -185,6 +187,8 @@ fi
 export SAGE_ENV_SOURCED=$SAGE_ENV_VERSION
 
 export SAGE_ROOT="$NEW_SAGE_ROOT"
+export SAGE_LOCAL='@out@/'
+export PYTHONPATH="@out@/lib/python2.7/site-packages:$PYTHONPATH"
 
 
 # sage-env must know where the Sage's script files are.