diff --git a/doc/cc65.sgml b/doc/cc65.sgml
index a0a01c1c4..443f12798 100644
--- a/doc/cc65.sgml
+++ b/doc/cc65.sgml
@@ -398,10 +398,23 @@ The compiler will accept one C file per invocation and create a file with
 the same base name, but with the extension replaced by ".s". The output
 file contains assembler code suitable for the use with the ca65 macro
 assembler.
+						
+Include files in single quotes are searched in the following places:
+<enum>
+<item>The current directory.
+<item>The value of the environment variable <tt/CC65_INC/ if it is defined.
+<item>Any directory added with the <tt/-I/ option on the command line.
+</enum>
 
-In addition to the paths named in the <tt/-I/ option on the command line, the
-directory named in the environment variable <tt/CC65_INC/ is added to the
-search path for include files on startup.
+Include files in angle brackets are searched in the following places:
+<enum>
+<item>A compiled in directory which is often <tt>/usr/lib/cc65/include</tt> on
+      Linux systems.
+<item>The value of the environment variable <tt/CC65_INC/ if it is defined.
+<item>A subdirectory named <tt/include/ of the directory defined in the 
+      environment variable <tt/CC65_HOME/, if it is defined.
+<item>Any directory added with the <tt/-I/ option on the command line.
+</enum>
 
 
 
diff --git a/doc/ld65.sgml b/doc/ld65.sgml
index 3fbc7c2c2..5e9a777ef 100644
--- a/doc/ld65.sgml
+++ b/doc/ld65.sgml
@@ -324,9 +324,8 @@ The library search path contains in this order:
 <item>A compiled in library path which is often <tt>/usr/lib/cc65/lib</tt> on
       Linux systems.
 <item>The value of the environment variable <tt/LD65_LIB/ if it is defined.
-<item>The value of the environment variable <tt/CC65_LIB/ if it is defined.
-      Please note that use of this environment variable is obsolete and may
-      get removed in future versions.
+<item>A subdirectory named <tt/lib/ of the directory defined in the environment
+      variable <tt/CC65_HOME/, if it is defined.
 <item>Any directory added with the <tt><ref id="option--lib-path"
       name="--lib-path"></tt> option on the command line.
 </enum>
@@ -338,12 +337,11 @@ The object file search path contains in this order:
 
 <enum>
 <item>The current directory.
-<item>A compiled in directory which is often <tt>/usr/lib/cc65/lib</tt> on
+<item>A compiled in directory which is often <tt>/usr/lib/cc65/obj</tt> on
       Linux systems.
 <item>The value of the environment variable <tt/LD65_OBJ/ if it is defined.
-<item>The value of the environment variable <tt/CC65_LIB/ if it is defined.
-      Please note that use of this environment variable is obsolete and may
-      get removed in future versions.
+<item>A subdirectory named <tt/obj/ of the directory defined in the environment
+      variable <tt/CC65_HOME/, if it is defined.
 <item>Any directory added with the <tt><ref id="option--obj-path"
       name="--obj-path"></tt> option on the command line.
 </enum>
@@ -358,9 +356,8 @@ The config file search path contains in this order:
 <item>A compiled in directory which is often <tt>/usr/lib/cc65/cfg</tt> on
       Linux systems.
 <item>The value of the environment variable <tt/LD65_CFG/ if it is defined.
-<item>The value of the environment variable <tt/CC65_LIB/ if it is defined.
-      Please note that use of this environment variable is obsolete and may
-      get removed in future versions.
+<item>A subdirectory named <tt/cfg/ of the directory defined in the environment
+      variable <tt/CC65_HOME/, if it is defined.
 <item>Any directory added with the <tt><ref id="option--cfg-path"
       name="--cfg-path"></tt> option on the command line.
 </enum>
diff --git a/src/cc65/incpath.c b/src/cc65/incpath.c
index 62ca365b4..937a0d9bf 100644
--- a/src/cc65/incpath.c
+++ b/src/cc65/incpath.c
@@ -6,10 +6,10 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 2000-2003 Ullrich von Bassewitz                                       */
-/*               Römerstrasse 52                                             */
-/*               D-70794 Filderstadt                                         */
-/* EMail:        uz@cc65.org                                                 */
+/* (C) 2000-2009, Ullrich von Bassewitz                                      */
+/*                Roemerstrasse 52                                           */
+/*                D-70794 Filderstadt                                        */
+/* EMail:         uz@cc65.org                                                */
 /*                                                                           */
 /*                                                                           */
 /* This software is provided 'as-is', without any expressed or implied       */
@@ -78,13 +78,17 @@ void InitIncludePaths (void)
 {
     /* Add some standard paths to the include search path */
     AddSearchPath ("", INC_USER);		/* Current directory */
-    AddSearchPath ("include", INC_SYS);
+
+    /* Add some compiled in search paths if defined at compile time */
 #ifdef CC65_INC
     AddSearchPath (CC65_INC, INC_SYS);
-#else
-    AddSearchPath ("/usr/lib/cc65/include", INC_SYS);
 #endif
+
+    /* Add specific paths from the environment */
     AddSearchPathFromEnv ("CC65_INC", INC_SYS | INC_USER);
+
+    /* Add paths relative to a main directory defined in an env var */
+    AddSubSearchPathFromEnv ("CC65_HOME", "include", INC_SYS);
 }
 
 
diff --git a/src/cc65/incpath.h b/src/cc65/incpath.h
index df3be913e..26ab52f45 100644
--- a/src/cc65/incpath.h
+++ b/src/cc65/incpath.h
@@ -6,10 +6,10 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 2000-2003 Ullrich von Bassewitz                                       */
-/*               Römerstrasse 52                                             */
-/*               D-70794 Filderstadt                                         */
-/* EMail:        uz@cc65.org                                                 */
+/* (C) 2000-2009, Ullrich von Bassewitz                                      */
+/*                Roemerstrasse 52                                           */
+/*                D-70794 Filderstadt                                        */
+/* EMail:         uz@cc65.org                                                */
 /*                                                                           */
 /*                                                                           */
 /* This software is provided 'as-is', without any expressed or implied       */
diff --git a/src/ld65/filepath.c b/src/ld65/filepath.c
index a11412447..7cbc24ac1 100644
--- a/src/ld65/filepath.c
+++ b/src/ld65/filepath.c
@@ -6,10 +6,10 @@
 /*                                                                           */
 /*                                                                           */
 /*                                                                           */
-/* (C) 2003      Ullrich von Bassewitz                                       */
-/*               Römerstrasse 52                                             */
-/*               D-70794 Filderstadt                                         */
-/* EMail:        uz@cc65.org                                                 */
+/* (C) 2003-2009, Ullrich von Bassewitz                                      */
+/*                Roemerstrasse 52                                           */
+/*                D-70794 Filderstadt                                        */
+/* EMail:         uz@cc65.org                                                */
 /*                                                                           */
 /*                                                                           */
 /* This software is provided 'as-is', without any expressed or implied       */
@@ -42,7 +42,7 @@
 
 
 /*****************************************************************************/
-/*	       	     	     	     Code		     		     */
+/*	       	     	     	     Code      		     		     */
 /*****************************************************************************/
 
 
@@ -53,7 +53,7 @@ void InitSearchPaths (void)
     /* Always search all stuff in the current directory */
     AddSearchPath ("", SEARCH_LIB | SEARCH_OBJ | SEARCH_CFG);
 
-    /* Add some compiled in search paths if defined on the command line */
+    /* Add some compiled in search paths if defined at compile time */
 #if defined(LD65_LIB)
     AddSearchPath (LD65_LIB, SEARCH_LIB);
 #endif
@@ -64,13 +64,15 @@ void InitSearchPaths (void)
     AddSearchPath (LD65_CFG, SEARCH_CFG);
 #endif
 
-    /* Add paths from the environment */
+    /* Add specific paths from the environment */
+    AddSearchPathFromEnv ("LD65_CFG", SEARCH_CFG);
     AddSearchPathFromEnv ("LD65_LIB", SEARCH_LIB);
     AddSearchPathFromEnv ("LD65_OBJ", SEARCH_OBJ);
-    AddSearchPathFromEnv ("LD65_CFG", SEARCH_CFG);
 
-    /* Add compatibility stuff */
-    AddSearchPathFromEnv ("CC65_LIB", SEARCH_LIB | SEARCH_OBJ | SEARCH_CFG);
+    /* Add paths relative to a main directory defined in an env var */
+    AddSubSearchPathFromEnv ("CC65_HOME", "cfg", SEARCH_CFG);
+    AddSubSearchPathFromEnv ("CC65_HOME", "lib", SEARCH_LIB);
+    AddSubSearchPathFromEnv ("CC65_HOME", "obj", SEARCH_OBJ);
 }