diff --git a/Makefile.am b/Makefile.am
index 7abb6ee39b..1d219cd85a 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,9 +1,10 @@
 AUTOMAKE_OPTIONS = foreign dist-zip
 
-SUBDIRS = src include scripts
+SUBDIRS = lib cmd modules include scripts
 CONFIG_CLEAN_FILES =  aclocal.m4 config.guess config.sub
 CONFIG_CLEAN_FILES += depcomp install-sh missing mkinstalldirs
 EXTRA_DIST = autogen.sh
 
 rpms: dist Makefile
 	rpmbuild -ta $(distdir).tar.gz
+
diff --git a/cmd/Makefile.am b/cmd/Makefile.am
index ae3961a977..f211db18f2 100644
--- a/cmd/Makefile.am
+++ b/cmd/Makefile.am
@@ -2,4 +2,4 @@ AM_CFLAGS = -g -O2 -W -Wall -Wstrict-prototypes -Wshadow
 INCLUDES = -I$(top_srcdir)/include
 sbin_PROGRAMS = splat
 splat_SOURCES = splat.c
-splat_LDFLAGS = $(top_builddir)/src/lib/libcommon.la
+splat_LDFLAGS = $(top_builddir)/lib/libcommon.la
diff --git a/configure.ac b/configure.ac
index 215b5091c1..3992520ac8 100644
--- a/configure.ac
+++ b/configure.ac
@@ -109,11 +109,11 @@ AC_SUBST(KERNELCPPFLAGS)
 AC_SUBST(KERNELCFLAGS)
 
 AC_CONFIG_FILES([ Makefile
-                  src/Makefile
-                  src/lib/Makefile
-                  src/cmd/Makefile
-                  src/spl/Makefile
-                  src/splat/Makefile
+                  lib/Makefile
+                  cmd/Makefile
+                  modules/Makefile
+                  modules/spl/Makefile
+                  modules/splat/Makefile
                   include/Makefile
                   scripts/Makefile
                   scripts/spl.spec
diff --git a/modules/Makefile.in b/modules/Makefile.in
new file mode 100644
index 0000000000..f1cb0ca46a
--- /dev/null
+++ b/modules/Makefile.in
@@ -0,0 +1,12 @@
+subdir-m += spl
+subdir-m += splat
+
+all:
+	$(MAKE) -C @kernelsrc@ SUBDIRS=`pwd` @KERNELMAKE_PARAMS@ modules
+
+install uninstall clean distclean maintainer-clean distdir:
+	$(MAKE) -C @kernelsrc@ SUBDIRS=`pwd` @KERNELMAKE_PARAMS@ $@
+
+
+
+
diff --git a/spl/Makefile.in b/modules/spl/Makefile.in
similarity index 88%
rename from spl/Makefile.in
rename to modules/spl/Makefile.in
index 82b45a287a..134d88227f 100644
--- a/spl/Makefile.in
+++ b/modules/spl/Makefile.in
@@ -13,13 +13,12 @@ spl-objs += linux-kmem.o
 spl-objs += linux-thread.o
 spl-objs += linux-taskq.o
 spl-objs += linux-rwlock.o
+spl-objs += linux-generic.o
 
 splmodule := spl.ko
 splmoduledir := @kmoduledir@/kernel/lib/
 
-all: all-spec
-
-install: all
+install:
 	mkdir -p $(DESTDIR)$(splmoduledir)
 	$(INSTALL) -m 644 $(splmodule) $(DESTDIR)$(splmoduledir)/$(splmodule)
 	-/sbin/depmod -a
@@ -39,6 +38,3 @@ maintainer-clean: distclean
 
 distdir: $(DISTFILES)
 	cp -p $(DISTFILES) $(distdir)
-
-all-spec:
-	$(MAKE) -C @kernelsrc@ SUBDIRS=`pwd` @KERNELMAKE_PARAMS@ modules
diff --git a/spl/linux-generic.c b/modules/spl/linux-generic.c
similarity index 100%
rename from spl/linux-generic.c
rename to modules/spl/linux-generic.c
diff --git a/spl/linux-kmem.c b/modules/spl/linux-kmem.c
similarity index 100%
rename from spl/linux-kmem.c
rename to modules/spl/linux-kmem.c
diff --git a/spl/linux-rwlock.c b/modules/spl/linux-rwlock.c
similarity index 100%
rename from spl/linux-rwlock.c
rename to modules/spl/linux-rwlock.c
diff --git a/spl/linux-taskq.c b/modules/spl/linux-taskq.c
similarity index 100%
rename from spl/linux-taskq.c
rename to modules/spl/linux-taskq.c
diff --git a/spl/linux-thread.c b/modules/spl/linux-thread.c
similarity index 100%
rename from spl/linux-thread.c
rename to modules/spl/linux-thread.c
diff --git a/splat/Makefile.in b/modules/splat/Makefile.in
similarity index 91%
rename from splat/Makefile.in
rename to modules/splat/Makefile.in
index ebc0fb6cf5..54155c8de2 100644
--- a/splat/Makefile.in
+++ b/modules/splat/Makefile.in
@@ -23,9 +23,7 @@ splat-objs += splat-time.o
 splatmodule := splat.ko
 splatmoduledir := @kmoduledir@/kernel/lib/
 
-all: all-spec
-
-install: all
+install:
 	mkdir -p $(DESTDIR)$(splatmoduledir)
 	$(INSTALL) -m 644 $(splatmodule) $(DESTDIR)$(splatmoduledir)/$(splatmodule)
 	-/sbin/depmod -a
@@ -45,6 +43,3 @@ maintainer-clean: distclean
 
 distdir: $(DISTFILES)
 	cp -p $(DISTFILES) $(distdir)
-
-all-spec:
-	$(MAKE) -C @kernelsrc@ SUBDIRS=`pwd` @KERNELMAKE_PARAMS@ modules
diff --git a/splat/splat-condvar.c b/modules/splat/splat-condvar.c
similarity index 100%
rename from splat/splat-condvar.c
rename to modules/splat/splat-condvar.c
diff --git a/splat/splat-ctl.c b/modules/splat/splat-ctl.c
similarity index 100%
rename from splat/splat-ctl.c
rename to modules/splat/splat-ctl.c
diff --git a/splat/splat-kmem.c b/modules/splat/splat-kmem.c
similarity index 100%
rename from splat/splat-kmem.c
rename to modules/splat/splat-kmem.c
diff --git a/splat/splat-mutex.c b/modules/splat/splat-mutex.c
similarity index 100%
rename from splat/splat-mutex.c
rename to modules/splat/splat-mutex.c
diff --git a/splat/splat-random.c b/modules/splat/splat-random.c
similarity index 100%
rename from splat/splat-random.c
rename to modules/splat/splat-random.c
diff --git a/splat/splat-rwlock.c b/modules/splat/splat-rwlock.c
similarity index 100%
rename from splat/splat-rwlock.c
rename to modules/splat/splat-rwlock.c
diff --git a/splat/splat-taskq.c b/modules/splat/splat-taskq.c
similarity index 100%
rename from splat/splat-taskq.c
rename to modules/splat/splat-taskq.c
diff --git a/splat/splat-thread.c b/modules/splat/splat-thread.c
similarity index 100%
rename from splat/splat-thread.c
rename to modules/splat/splat-thread.c
diff --git a/splat/splat-time.c b/modules/splat/splat-time.c
similarity index 100%
rename from splat/splat-time.c
rename to modules/splat/splat-time.c
diff --git a/src/Makefile.am b/src/Makefile.am
deleted file mode 100644
index 51013b8d12..0000000000
--- a/src/Makefile.am
+++ /dev/null
@@ -1 +0,0 @@
-SUBDIRS = lib cmd spl splat