diff --git a/pisi/api.py b/pisi/api.py
index 994c214e..8b484b88 100644
--- a/pisi/api.py
+++ b/pisi/api.py
@@ -197,7 +197,7 @@ def configure_pending():
                                         False,
                                         False)
                 pkg_path = util.join_path(ctx.config.lib_dir(),
-                                           pkgname)
+                                          'package/' + pkgname)
                 m = MetaData()
                 metadata_path = util.join_path(pkg_path, ctx.const.metadata_xml)
                 m.read(metadata_path)
diff --git a/pisi/atomicoperations.py b/pisi/atomicoperations.py
index 31713b8c..5702fe9b 100644
--- a/pisi/atomicoperations.py
+++ b/pisi/atomicoperations.py
@@ -471,7 +471,7 @@ def resurrect_package(package_fn):
 
     from os.path import exists
 
-    metadata_xml = util.join_path(ctx.config.lib_dir(), package_fn, ctx.const.metadata_xml)
+    metadata_xml = util.join_path(ctx.config.lib_dir(), 'package/' + package_fn, ctx.const.metadata_xml)
     if not exists(metadata_xml):
        raise Error, _("Metadata XML '%s' cannot be found") % metadata_xml
 
@@ -495,7 +495,7 @@ def resurrect_package(package_fn):
     if not passed:
         ctx.ui.info(_('* Adding \'%s\' to db... ') % (metadata.package.name), noln=True)
     
-    files_xml = util.join_path(ctx.config.lib_dir(), package_fn, ctx.const.files_xml)
+    files_xml = util.join_path(ctx.config.lib_dir(), 'package/' + package_fn, ctx.const.files_xml)
     if not exists(files_xml):
        raise Error, _("Files XML '%s' cannot be found") % files_xml
 
diff --git a/pisi/cli/commands.py b/pisi/cli/commands.py
index 0cf65d09..a22bbfda 100644
--- a/pisi/cli/commands.py
+++ b/pisi/cli/commands.py
@@ -720,7 +720,8 @@ If package specs are given, they should be the names of package dirs under /var/
 
     def rebuild_db(self):
         import os
-        for package_fn in os.listdir(ctx.config.lib_dir()):
+        for package_fn in os.listdir( pisi.util.join_path( ctx.config.lib_dir(),
+                                                           'package' ) ):
             if not package_fn == "scripts":
                 ctx.ui.debug('Resurrecting %s' % package_fn)
                 pisi.api.resurrect_package(package_fn)
diff --git a/pisi/installdb.py b/pisi/installdb.py
index f82eeae4..27296a4f 100644
--- a/pisi/installdb.py
+++ b/pisi/installdb.py
@@ -93,7 +93,7 @@ class InstallDB:
         return files
 
     def pkg_dir(self, pkg, version, release):
-        return join(ctx.config.lib_dir(), pkg + '-' + version + '-' + release)
+        return join(ctx.config.lib_dir(), 'package/' + pkg + '-' + version + '-' + release)
 
     def is_recorded(self, pkg, txn = None):
         pkg = str(pkg)
diff --git a/pisi/specfile.py b/pisi/specfile.py
index 0b8eca3d..d2412423 100644
--- a/pisi/specfile.py
+++ b/pisi/specfile.py
@@ -188,7 +188,7 @@ class Package:
                      + self.version + '-' \
                      + self.release
 
-        return util.join_path( ctx.config.lib_dir(), packageDir)
+        return util.join_path( ctx.config.lib_dir(), 'package', packageDir)
 
     def installable(self):
         """calculate if pkg is installable currently"""