diff --git a/Code/Mantid/Build/CMake/LinuxSetup.cmake b/Code/Mantid/Build/CMake/LinuxSetup.cmake
index a0740622a62442a6f7e7962c85777ea4b9936ef0..dc9d2c381df40d255a416ba225614a7ffbada210 100644
--- a/Code/Mantid/Build/CMake/LinuxSetup.cmake
+++ b/Code/Mantid/Build/CMake/LinuxSetup.cmake
@@ -18,7 +18,7 @@ endif ()
 ###########################################################################
 
 set ( BIN_DIR bin )
-set ( LIB_DIR ${BIN_DIR} )
+set ( LIB_DIR lib )
 set ( PLUGINS_DIR plugins )
 
 set ( CMAKE_INSTALL_PREFIX /opt/${CMAKE_PROJECT_NAME} )
diff --git a/Code/Mantid/Framework/PythonAPI/CMakeLists.txt b/Code/Mantid/Framework/PythonAPI/CMakeLists.txt
index f618a9353cd960c8c808b17b149a972195d3c805..0aa08611b0b5333e6b31ef18536aa9def70cf903 100644
--- a/Code/Mantid/Framework/PythonAPI/CMakeLists.txt
+++ b/Code/Mantid/Framework/PythonAPI/CMakeLists.txt
@@ -171,7 +171,7 @@ endif ()
 # Installation settings
 ###########################################################################
 
-install ( TARGETS PythonAPI DESTINATION ${LIB_DIR} )
+install ( TARGETS PythonAPI DESTINATION ${BIN_DIR} )
 install ( FILES ${PY_FILES} DESTINATION ${BIN_DIR} )
 install ( DIRECTORY PythonAlgorithms/ DESTINATION ${PLUGINS_DIR}/PythonAlgs
                                       PATTERN ".svn" EXCLUDE PATTERN "*.pyc" EXCLUDE )