diff --git a/WHATS_NEW b/WHATS_NEW
index eab40b193..d348cbc0d 100644
--- a/WHATS_NEW
+++ b/WHATS_NEW
@@ -1,5 +1,6 @@
 Version 2.02.146 - 
 =================================
+  Fix makefile vpath in /udev when generating udev rules files.
   Another attempt to improve VG name parsing for lvconvert (2.02.144).
   Use new cache status info and skip flushing for failed cache.
   Support --uncache with missing PVs.
diff --git a/udev/Makefile.in b/udev/Makefile.in
index d23eb7d17..cb968dfe1 100644
--- a/udev/Makefile.in
+++ b/udev/Makefile.in
@@ -16,7 +16,6 @@ top_srcdir = @top_srcdir@
 top_builddir = @top_builddir@
 
 include $(top_builddir)/make.tmpl
-vpath %.rules $(srcdir)
 
 DM_RULES=10-dm.rules 13-dm-disk.rules 95-dm-notify.rules
 LVM_RULES=11-dm-lvm.rules
@@ -52,7 +51,7 @@ else
 PVSCAN_RULE=RUN\+\=\"$(LVM_EXEC)/lvm pvscan --background --cache --activate ay --major \$$major --minor \$$minor\", ENV{LVM_SCANNED}=\"1\"
 endif
 
-%.rules: %.rules.in
+%.rules: $(srcdir)/%.rules.in
 	$(SED) -e "s+(DM_DIR)+$(DM_DIR)+;s+(BLKID_RULE)+$(BLKID_RULE)+;s+(PVSCAN_RULE)+$(PVSCAN_RULE)+;s+(DM_EXEC_RULE)+$(DM_EXEC_RULE)+;s+(DM_EXEC)+$(DM_EXEC)+;s+(LVM_EXEC_RULE)+$(LVM_EXEC_RULE)+;s+(LVM_EXEC)+$(LVM_EXEC)+;" $< >$@
 
 %_install: %.rules