diff --git a/bin/spack b/bin/spack
index 60a2ef4c3a..b922fc5479 100755
--- a/bin/spack
+++ b/bin/spack
@@ -39,6 +39,12 @@ SPACK_PREFIX = os.path.dirname(os.path.dirname(SPACK_FILE))
 SPACK_LIB_PATH = os.path.join(SPACK_PREFIX, "lib", "spack")
 sys.path.insert(0, SPACK_LIB_PATH)
 
+# If there is no working directory, use the spack prefix.
+try:
+    os.getcwd()
+except OSError:
+    os.chdir(SPACK_PREFIX)
+
 # clean up the scope and start using spack package instead.
 del SPACK_FILE, SPACK_PREFIX, SPACK_LIB_PATH
 import llnl.util.tty as tty
@@ -74,10 +80,8 @@ args = parser.parse_args()
 spack.verbose = args.verbose
 spack.debug = args.debug
 if args.mock:
-    from llnl.util.filesystem import join_path
     from spack.packages import PackageDB
-    mock_path = join_path(spack.module_path, 'test', 'mock_packages')
-    spack.db = PackageDB(mock_path)
+    spack.db = PackageDB(spack.mock_packages_path)
 
 # If the user asked for it, don't check ssl certs.
 if args.insecure:
diff --git a/lib/spack/spack/globals.py b/lib/spack/spack/globals.py
index 20801447fa..4ff50a3e7e 100644
--- a/lib/spack/spack/globals.py
+++ b/lib/spack/spack/globals.py
@@ -53,8 +53,13 @@
 #
 # Set up the packages database.
 #
-db = PackageDB(join_path(module_path, "packages"))
+packages_path = join_path(var_path, "packages")
+db = PackageDB(packages_path)
 
+#
+# This is the path to mock packages used by spack for testing.
+#
+mock_packages_path = join_path(var_path, "mock_packages")
 
 #
 # This controls how spack lays out install prefixes and
diff --git a/lib/spack/spack/packages/__init__.py b/lib/spack/spack/packages.py
similarity index 97%
rename from lib/spack/spack/packages/__init__.py
rename to lib/spack/spack/packages.py
index beb8ecf6ab..732ced9bf2 100644
--- a/lib/spack/spack/packages/__init__.py
+++ b/lib/spack/spack/packages.py
@@ -200,10 +200,6 @@ def get_class_for_package_name(self, pkg_name):
         else:
             raise UnknownPackageError(pkg_name)
 
-        # Figure out pacakges module based on self.root
-        if not re.match(r'%s' % spack.module_path, self.root):
-            raise RuntimeError("Packages path is not a submodule of spack.")
-
         class_name = class_name_for_package_name(pkg_name)
         try:
             module_name = _imported_packages_module + '.' + pkg_name
diff --git a/lib/spack/spack/test/mock_packages_test.py b/lib/spack/spack/test/mock_packages_test.py
index f300995d7e..e9a8113c09 100644
--- a/lib/spack/spack/test/mock_packages_test.py
+++ b/lib/spack/spack/test/mock_packages_test.py
@@ -24,15 +24,10 @@
 ##############################################################################
 import unittest
 
-from llnl.util.lang import list_modules
-from llnl.util.filesystem import join_path
-
 import spack
 from spack.packages import PackageDB
 from spack.spec import Spec
 
-mock_packages_path = join_path(spack.module_path, 'test', 'mock_packages')
-
 def set_pkg_dep(pkg, spec):
     """Alters dependence information for a pacakge.
        Use this to mock up constraints.
@@ -48,7 +43,7 @@ def setUp(self):
         # us to set up contrived packages that don't interfere with
         # real ones.
         self.real_db = spack.db
-        spack.db = PackageDB(mock_packages_path)
+        spack.db = PackageDB(spack.mock_packages_path)
 
 
     @classmethod
diff --git a/lib/spack/spack/test/packages.py b/lib/spack/spack/test/packages.py
index 146700948f..1b2e0ab07a 100644
--- a/lib/spack/spack/test/packages.py
+++ b/lib/spack/spack/test/packages.py
@@ -24,9 +24,10 @@
 ##############################################################################
 import unittest
 
+from llnl.util.filesystem import join_path
+
 import spack
 import spack.packages as packages
-
 from spack.test.mock_packages_test import *
 
 
@@ -43,7 +44,7 @@ def test_package_name(self):
 
     def test_package_filename(self):
         filename = spack.db.filename_for_package_name('mpich')
-        self.assertEqual(filename, join_path(mock_packages_path, 'mpich', 'package.py'))
+        self.assertEqual(filename, join_path(spack.mock_packages_path, 'mpich', 'package.py'))
 
 
     def test_package_name(self):
@@ -53,7 +54,7 @@ def test_package_name(self):
 
     def test_nonexisting_package_filename(self):
         filename = spack.db.filename_for_package_name('some-nonexisting-package')
-        self.assertEqual(filename, join_path(mock_packages_path, 'some-nonexisting-package', 'package.py'))
+        self.assertEqual(filename, join_path(spack.mock_packages_path, 'some-nonexisting-package', 'package.py'))
 
 
     def test_package_class_names(self):
diff --git a/lib/spack/spack/test/mock_packages/callpath/package.py b/var/spack/mock_packages/callpath/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/callpath/package.py
rename to var/spack/mock_packages/callpath/package.py
diff --git a/lib/spack/spack/test/mock_packages/direct_mpich/package.py b/var/spack/mock_packages/direct_mpich/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/direct_mpich/package.py
rename to var/spack/mock_packages/direct_mpich/package.py
diff --git a/lib/spack/spack/test/mock_packages/dyninst/package.py b/var/spack/mock_packages/dyninst/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/dyninst/package.py
rename to var/spack/mock_packages/dyninst/package.py
diff --git a/lib/spack/spack/test/mock_packages/fake/package.py b/var/spack/mock_packages/fake/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/fake/package.py
rename to var/spack/mock_packages/fake/package.py
diff --git a/lib/spack/spack/test/mock_packages/indirect_mpich/package.py b/var/spack/mock_packages/indirect_mpich/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/indirect_mpich/package.py
rename to var/spack/mock_packages/indirect_mpich/package.py
diff --git a/lib/spack/spack/test/mock_packages/libdwarf/package.py b/var/spack/mock_packages/libdwarf/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/libdwarf/package.py
rename to var/spack/mock_packages/libdwarf/package.py
diff --git a/lib/spack/spack/test/mock_packages/libelf/package.py b/var/spack/mock_packages/libelf/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/libelf/package.py
rename to var/spack/mock_packages/libelf/package.py
diff --git a/lib/spack/spack/test/mock_packages/mpich/package.py b/var/spack/mock_packages/mpich/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/mpich/package.py
rename to var/spack/mock_packages/mpich/package.py
diff --git a/lib/spack/spack/test/mock_packages/mpich2/package.py b/var/spack/mock_packages/mpich2/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/mpich2/package.py
rename to var/spack/mock_packages/mpich2/package.py
diff --git a/lib/spack/spack/test/mock_packages/mpileaks/package.py b/var/spack/mock_packages/mpileaks/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/mpileaks/package.py
rename to var/spack/mock_packages/mpileaks/package.py
diff --git a/lib/spack/spack/test/mock_packages/multimethod/package.py b/var/spack/mock_packages/multimethod/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/multimethod/package.py
rename to var/spack/mock_packages/multimethod/package.py
diff --git a/lib/spack/spack/test/mock_packages/trivial_install_test_package/package.py b/var/spack/mock_packages/trivial_install_test_package/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/trivial_install_test_package/package.py
rename to var/spack/mock_packages/trivial_install_test_package/package.py
diff --git a/lib/spack/spack/test/mock_packages/zmpi/package.py b/var/spack/mock_packages/zmpi/package.py
similarity index 100%
rename from lib/spack/spack/test/mock_packages/zmpi/package.py
rename to var/spack/mock_packages/zmpi/package.py
diff --git a/lib/spack/spack/packages/callpath/package.py b/var/spack/packages/callpath/package.py
similarity index 100%
rename from lib/spack/spack/packages/callpath/package.py
rename to var/spack/packages/callpath/package.py
diff --git a/lib/spack/spack/packages/cmake/package.py b/var/spack/packages/cmake/package.py
similarity index 100%
rename from lib/spack/spack/packages/cmake/package.py
rename to var/spack/packages/cmake/package.py
diff --git a/lib/spack/spack/packages/dyninst/package.py b/var/spack/packages/dyninst/package.py
similarity index 100%
rename from lib/spack/spack/packages/dyninst/package.py
rename to var/spack/packages/dyninst/package.py
diff --git a/lib/spack/spack/packages/graphlib/package.py b/var/spack/packages/graphlib/package.py
similarity index 100%
rename from lib/spack/spack/packages/graphlib/package.py
rename to var/spack/packages/graphlib/package.py
diff --git a/lib/spack/spack/packages/launchmon/package.py b/var/spack/packages/launchmon/package.py
similarity index 100%
rename from lib/spack/spack/packages/launchmon/package.py
rename to var/spack/packages/launchmon/package.py
diff --git a/lib/spack/spack/packages/launchmon/patch.lmon_install_dir b/var/spack/packages/launchmon/patch.lmon_install_dir
similarity index 100%
rename from lib/spack/spack/packages/launchmon/patch.lmon_install_dir
rename to var/spack/packages/launchmon/patch.lmon_install_dir
diff --git a/lib/spack/spack/packages/libdwarf/package.py b/var/spack/packages/libdwarf/package.py
similarity index 100%
rename from lib/spack/spack/packages/libdwarf/package.py
rename to var/spack/packages/libdwarf/package.py
diff --git a/lib/spack/spack/packages/libelf/package.py b/var/spack/packages/libelf/package.py
similarity index 100%
rename from lib/spack/spack/packages/libelf/package.py
rename to var/spack/packages/libelf/package.py
diff --git a/lib/spack/spack/packages/libunwind/package.py b/var/spack/packages/libunwind/package.py
similarity index 100%
rename from lib/spack/spack/packages/libunwind/package.py
rename to var/spack/packages/libunwind/package.py
diff --git a/lib/spack/spack/packages/mpich/package.py b/var/spack/packages/mpich/package.py
similarity index 100%
rename from lib/spack/spack/packages/mpich/package.py
rename to var/spack/packages/mpich/package.py
diff --git a/lib/spack/spack/packages/mpileaks/package.py b/var/spack/packages/mpileaks/package.py
similarity index 100%
rename from lib/spack/spack/packages/mpileaks/package.py
rename to var/spack/packages/mpileaks/package.py
diff --git a/lib/spack/spack/packages/mrnet/package.py b/var/spack/packages/mrnet/package.py
similarity index 100%
rename from lib/spack/spack/packages/mrnet/package.py
rename to var/spack/packages/mrnet/package.py
diff --git a/lib/spack/spack/packages/mvapich2/ad_lustre_rwcontig_open_source.patch b/var/spack/packages/mvapich2/ad_lustre_rwcontig_open_source.patch
similarity index 100%
rename from lib/spack/spack/packages/mvapich2/ad_lustre_rwcontig_open_source.patch
rename to var/spack/packages/mvapich2/ad_lustre_rwcontig_open_source.patch
diff --git a/lib/spack/spack/packages/mvapich2/package.py b/var/spack/packages/mvapich2/package.py
similarity index 100%
rename from lib/spack/spack/packages/mvapich2/package.py
rename to var/spack/packages/mvapich2/package.py
diff --git a/lib/spack/spack/packages/openmpi/ad_lustre_rwcontig_open_source.patch b/var/spack/packages/openmpi/ad_lustre_rwcontig_open_source.patch
similarity index 100%
rename from lib/spack/spack/packages/openmpi/ad_lustre_rwcontig_open_source.patch
rename to var/spack/packages/openmpi/ad_lustre_rwcontig_open_source.patch
diff --git a/lib/spack/spack/packages/openmpi/llnl-platforms.patch b/var/spack/packages/openmpi/llnl-platforms.patch
similarity index 100%
rename from lib/spack/spack/packages/openmpi/llnl-platforms.patch
rename to var/spack/packages/openmpi/llnl-platforms.patch
diff --git a/lib/spack/spack/packages/openmpi/package.py b/var/spack/packages/openmpi/package.py
similarity index 100%
rename from lib/spack/spack/packages/openmpi/package.py
rename to var/spack/packages/openmpi/package.py
diff --git a/lib/spack/spack/packages/pmgr_collective/package.py b/var/spack/packages/pmgr_collective/package.py
similarity index 100%
rename from lib/spack/spack/packages/pmgr_collective/package.py
rename to var/spack/packages/pmgr_collective/package.py
diff --git a/lib/spack/spack/packages/scr/package.py b/var/spack/packages/scr/package.py
similarity index 100%
rename from lib/spack/spack/packages/scr/package.py
rename to var/spack/packages/scr/package.py
diff --git a/lib/spack/spack/packages/spindle/package.py b/var/spack/packages/spindle/package.py
similarity index 100%
rename from lib/spack/spack/packages/spindle/package.py
rename to var/spack/packages/spindle/package.py
diff --git a/lib/spack/spack/packages/stat/package.py b/var/spack/packages/stat/package.py
similarity index 100%
rename from lib/spack/spack/packages/stat/package.py
rename to var/spack/packages/stat/package.py