diff --git a/Makefile.am b/Makefile.am
index 59f0bfe..c75e80c 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,5 +1,5 @@
 EXTRA_DIST = MIGRATION libmodbus.spec
-SUBDIRS = modbus tests
+SUBDIRS = src tests
 
 pkgconfigdir = $(libdir)/pkgconfig
 pkgconfig_DATA = libmodbus.pc
diff --git a/configure.ac b/configure.ac
index 1dca0ac..267faea 100644
--- a/configure.ac
+++ b/configure.ac
@@ -23,7 +23,7 @@ m4_define([mb_version], [mb_version_major.mb_version_minor.mb_version_micro])
 
 AC_PREREQ(2.63)
 AC_INIT([libmodbus],[mb_version],[stephane.raimbault@gmail.com])
-AC_CONFIG_SRCDIR([modbus/modbus.c])
+AC_CONFIG_SRCDIR([src/modbus.c])
 AC_CONFIG_HEADERS([config.h])
 AM_INIT_AUTOMAKE([foreign])
 # enable nice build output on automake1.11
@@ -74,8 +74,8 @@ AC_CHECK_FUNCS([gettimeofday inet_ntoa memset select socket strerror])
 
 AC_CONFIG_FILES([
         Makefile
-        modbus/Makefile
-        modbus/version.h
+        src/Makefile
+        src/version.h
         tests/Makefile
         libmodbus.pc
 ])
diff --git a/modbus/Makefile.am b/src/Makefile.am
index d905b48..d2b9ab2 100644
--- a/modbus/Makefile.am
+++ b/src/Makefile.am
@@ -3,7 +3,7 @@ libmodbus_la_SOURCES = modbus.c modbus.h version.h
 libmodbus_la_LDFLAGS = $(MB_LT_LDFLAGS)
 
 # Include files to install
-libmodbusincludedir = $(includedir)/modbus
+libmodbusincludedir = $(includedir)
 libmodbusinclude_HEADERS = modbus.h version.h
 
 DISTCLEANFILES = version.h
diff --git a/modbus/modbus.c b/src/modbus.c
index f972044..b590435 100644
--- a/modbus/modbus.c
+++ b/src/modbus.c
@@ -62,8 +62,7 @@
 #endif
 
 #include <config.h>
-
-#include <modbus/modbus.h>
+#include "modbus.h"
 
 /* Exported version */
 const unsigned int mb_version_major = MB_VERSION_MAJOR;
diff --git a/modbus/modbus.h b/src/modbus.h
index cccae79..cccae79 100644
--- a/modbus/modbus.h
+++ b/src/modbus.h
diff --git a/modbus/version.h.in b/src/version.h.in
index aa19138..aa19138 100644
--- a/modbus/version.h.in
+++ b/src/version.h.in
diff --git a/tests/Makefile.am b/tests/Makefile.am
index b6d79b1..98e190e 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -11,7 +11,7 @@ noinst_PROGRAMS = \
 	version
 
 common_ldflags = \
-	$(top_builddir)/modbus/libmodbus.la
+	$(top_builddir)/src/libmodbus.la
 
 random_test_slave_SOURCES = random-test-slave.c
 random_test_slave_LDADD = $(common_ldflags)
@@ -37,5 +37,5 @@ bandwidth_master_LDADD = $(common_ldflags)
 version_SOURCES = version.c
 version_LDADD = $(common_ldflags)
 
-INCLUDES = -I$(top_srcdir)
+INCLUDES = -I$(top_srcdir) -I$(top_srcdir)/src
 CLEANFILES = *~
diff --git a/tests/bandwidth-master.c b/tests/bandwidth-master.c
index baad481..4b3111b 100644
--- a/tests/bandwidth-master.c
+++ b/tests/bandwidth-master.c
@@ -23,7 +23,7 @@
 #include <sys/time.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 /* Tests based on PI-MBUS-300 documentation */
 #define SLAVE     0x11
diff --git a/tests/bandwidth-slave-many-up.c b/tests/bandwidth-slave-many-up.c
index 9bcdf37..40c8f5f 100644
--- a/tests/bandwidth-slave-many-up.c
+++ b/tests/bandwidth-slave-many-up.c
@@ -22,7 +22,7 @@
 #include <errno.h>
 #include <signal.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 #define SLAVE         0x11
 #define NB_CONNECTION    5
diff --git a/tests/bandwidth-slave-one.c b/tests/bandwidth-slave-one.c
index 26f9dcc..a720db6 100644
--- a/tests/bandwidth-slave-one.c
+++ b/tests/bandwidth-slave-one.c
@@ -21,7 +21,7 @@
 #include <stdlib.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 #define SLAVE 0x11
 
diff --git a/tests/random-test-master.c b/tests/random-test-master.c
index feefd50..dd20a9e 100644
--- a/tests/random-test-master.c
+++ b/tests/random-test-master.c
@@ -21,7 +21,7 @@
 #include <stdlib.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 /* The goal of this program is to check all major functions of
    libmodbus:
diff --git a/tests/random-test-slave.c b/tests/random-test-slave.c
index d9c7d28..e6374f6 100644
--- a/tests/random-test-slave.c
+++ b/tests/random-test-slave.c
@@ -20,7 +20,7 @@
 #include <stdlib.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 #define SLAVE 0x11
 
diff --git a/tests/unit-test-master.c b/tests/unit-test-master.c
index 99eebf4..9ae0fce 100644
--- a/tests/unit-test-master.c
+++ b/tests/unit-test-master.c
@@ -21,7 +21,7 @@
 #include <stdlib.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 #include "unit-test.h"
 
 /* Tests based on PI-MBUS-300 documentation */
diff --git a/tests/unit-test-slave.c b/tests/unit-test-slave.c
index 2844da0..43a0827 100644
--- a/tests/unit-test-slave.c
+++ b/tests/unit-test-slave.c
@@ -21,7 +21,7 @@
 #include <stdlib.h>
 #include <errno.h>
 
-#include <modbus/modbus.h>
+#include <modbus.h>
 #include "unit-test.h"
 
 int main(void)
diff --git a/tests/version.c b/tests/version.c
index dc281a1..4256ebd 100644
--- a/tests/version.c
+++ b/tests/version.c
@@ -16,7 +16,7 @@
  */
 
 #include <stdio.h>
-#include <modbus/modbus.h>
+#include <modbus.h>
 
 int main(void)
 {