diff --git a/nixos/modules/services/cluster/panamax.nix b/nixos/modules/services/cluster/panamax.nix
index 011a1e3666b..a7233f23c91 100644
--- a/nixos/modules/services/cluster/panamax.nix
+++ b/nixos/modules/services/cluster/panamax.nix
@@ -5,8 +5,8 @@ with lib;
 let
   cfg = config.services.panamax;
 
-  panamax_api = pkgs.panamax_api.override { dataDir = cfg.dataDir+"/api"; };
-  panamax_ui = pkgs.panamax_ui.override { dataDir = cfg.dataDir+"/ui"; };
+  panamax_api = pkgs.panamax_api.override { dataDir = cfg.dataDir + "/api"; };
+  panamax_ui = pkgs.panamax_ui.override { dataDir = cfg.dataDir + "/ui"; };
 
 in {
 
@@ -48,7 +48,7 @@ in {
       type = types.str;
       default = "http://127.0.0.1:4001";
       description = ''
-        Fleetctl endpoint.
+        Panamax fleetctl endpoint.
       '';
     };
 
@@ -56,7 +56,7 @@ in {
       type = types.str;
       default = "http://127.0.0.1:19531";
       description = ''
-        Journal endpoint.
+        Panamax journal endpoint.
       '';
     };
 
@@ -64,7 +64,7 @@ in {
       type = types.str;
       default = "SomethingVeryLong.";
       description = ''
-        Secret key (do change this).
+        Panamax secret key (do change this).
       '';
     };
 
@@ -72,33 +72,64 @@ in {
 
   ##### Implementation
   config = mkIf cfg.enable {
-    systemd.services.panamax_api = {
+    systemd.services.panamax-api = {
       description = "Panamax API";
+
       wantedBy = [ "multi-user.target" ];
       after = [ "network.target" "fleet.service" "etcd.service" "docker.service" ];
+
+      path = [ panamax_api ];
       environment = {
+        RAILS_ENV = "production";
         JOURNAL_ENDPOINT = cfg.journalEndpoint;
         FLEETCTL_ENDPOINT = cfg.fleetctlEndpoint;
+        PANAMAX_DATABASE_PATH = "${cfg.dataDir}/api/db/mnt/db.sqlite3";
       };
-      preStart = "${panamax_api}/bin/panamax-api-init";
+
+      preStart = ''
+        rm -rf ${cfg.dataDir}/state/tmp
+        mkdir -p ${cfg.dataDir}/api/{db/mnt,state/log,state/tmp}
+        ln -sf ${panamax_api}/share/panamax-api/_db/{schema.rb,seeds.rb,migrate} ${cfg.dataDir}/api/db/
+
+        if [ ! -f ${cfg.dataDir}/.created ]; then
+          bundle exec rake db:setup
+          bundle exec rake db:seed
+          bundle exec rake panamax:templates:load || true
+          touch ${cfg.dataDir}/.created
+        else
+          bundle exec rake db:migrate
+        fi
+      '';
+
       serviceConfig = {
-        ExecStart = "${panamax_api}/bin/panamax-api-run --port ${toString cfg.APIPort}";
+        ExecStart = "${panamax_api}/bin/bundle exec rails server --binding 127.0.0.1 --port ${toString cfg.APIPort}";
         User = "panamax";
         Group = "panamax";
       };
     };
 
-    systemd.services.panamax_ui = {
+    systemd.services.panamax-ui = {
       description = "Panamax UI";
+
       wantedBy = [ "multi-user.target" ];
       after = [ "network.target" "panamax_api.service" ];
+
+      path = [ panamax_ui ];
       environment = {
+        RAILS_ENV = "production";
         JOURNAL_ENDPOINT = cfg.journalEndpoint;
+        PMX_API_PORT_3000_TCP_ADDR = "localhost";
         PMX_API_PORT_3000_TCP_PORT = toString cfg.APIPort;
         SECRET_KEY_BASE = cfg.secretKey;
       };
+
+      preStart = ''
+        rm -rf ${cfg.dataDir}/state/tmp
+        mkdir -p ${cfg.dataDir}/ui/state/{log,tmp}
+      '';
+
       serviceConfig = {
-        ExecStart = "${panamax_ui}/bin/panamax-ui-run --port ${toString cfg.UIPort}";
+        ExecStart = "${panamax_ui}/bin/bundle exec rails server --binding 127.0.0.1 --port ${toString cfg.UIPort}";
         User = "panamax";
         Group = "panamax";
       };
diff --git a/nixos/release.nix b/nixos/release.nix
index ca12a03f835..1bd3ec57731 100644
--- a/nixos/release.nix
+++ b/nixos/release.nix
@@ -300,6 +300,7 @@ in rec {
   tests.nfs3 = callTest tests/nfs.nix { version = 3; };
   tests.nsd = callTest tests/nsd.nix {};
   tests.openssh = callTest tests/openssh.nix {};
+  tests.panamax = scrubDrv (import tests/panamax.nix { system = "x86_64-linux"; });
   tests.peerflix = callTest tests/peerflix.nix {};
   tests.printing = callTest tests/printing.nix {};
   tests.proxy = callTest tests/proxy.nix {};
diff --git a/nixos/tests/panamax.nix b/nixos/tests/panamax.nix
new file mode 100644
index 00000000000..80af8a19be1
--- /dev/null
+++ b/nixos/tests/panamax.nix
@@ -0,0 +1,18 @@
+import ./make-test.nix {
+  name = "panamax";
+
+  machine = { config, pkgs, ... }: {
+    services.panamax.enable = true;
+  };
+
+  testScript =
+    ''
+      startAll;
+      $machine->waitForUnit("panamax-api.service");
+      $machine->waitForUnit("panamax-ui.service");
+      $machine->waitForOpenPort(3000);
+      $machine->waitForOpenPort(8888);
+      $machine->succeed("curl --fail http://localhost:8888/ > /dev/null");
+      $machine->shutdown;
+    '';
+}
diff --git a/pkgs/applications/networking/cluster/panamax/api.nix b/pkgs/applications/networking/cluster/panamax/api.nix
index 80e515873d3..6345e7fd10b 100644
--- a/pkgs/applications/networking/cluster/panamax/api.nix
+++ b/pkgs/applications/networking/cluster/panamax/api.nix
@@ -1,139 +1,86 @@
-{ stdenv, buildEnv, fetchgit, fetchurl, ruby_2_1, rubygemsFun, libxslt, libxml2
-, sqlite, openssl, cacert, writeScriptBin, docker
+{ stdenv, buildEnv, fetchgit, fetchurl, makeWrapper
+, ruby, rubygemsFun, libxslt, libxml2, sqlite, openssl, cacert, docker
 , dataDir ? "/var/lib/panamax-api" }:
+
+with stdenv.lib;
+
 let
-  ruby = ruby_2_1;
-  rubygems = rubygemsFun ruby_2_1;
+  database_yml = builtins.toFile "database.yml" ''
+    production:
+      adapter: sqlite3
+      database: <%= ENV["PANAMAX_DATABASE_PATH"] || "${dataDir}/db/mnt/db.sqlite3" %>
+      timeout: 5000
+  '';
+
+in stdenv.mkDerivation rec {
+  name = "panamax-api-${version}";
+  version = "0.2.11";
+
+  bundler = fetchurl {
+    url = "http://rubygems.org/downloads/bundler-1.7.9.gem";
+    sha256 = "1gd201rh17xykab9pbqp0dkxfm7b9jri02llyvmrc0c5bz2vhycm";
+  };
+
+  src = fetchgit {
+    rev = "refs/tags/v${version}";
+    url = "git://github.com/CenturyLinkLabs/panamax-api";
+    sha256 = "01sz7jibn1rqfga85pr4p8wk6jfldzfaxj1726vs6znmcwhfkcgj";
+  };
 
   gemspec = map (gem: fetchurl { url=gem.url; sha256=gem.hash; }) (import ./Gemfile-api.nix);
 
-  srcs = {
-    bundler = fetchurl {
-      url = "http://rubygems.org/downloads/bundler-1.7.9.gem";
-      sha256 = "1gd201rh17xykab9pbqp0dkxfm7b9jri02llyvmrc0c5bz2vhycm";
-    };
-  };
+  buildInputs = [ makeWrapper sqlite openssl ruby (rubygemsFun ruby) ];
 
-  panamax_api = stdenv.mkDerivation rec {
-    name = "panamax-api-${version}";
-    version = "0.2.11";
+  setSourceRoot = ''
+    mkdir -p $out/share
+    cp -R git-export $out/share/panamax-api
+    export sourceRoot="$out/share/panamax-api"
+  '';
 
-    src = fetchgit {
-      rev = "refs/tags/v${version}";
-      url = "git://github.com/CenturyLinkLabs/panamax-api";
-      sha256 = "01sz7jibn1rqfga85pr4p8wk6jfldzfaxj1726vs6znmcwhfkcgj";
-    };
-
-    buildInputs = [ sqlite openssl ruby ];
-
-    installPhase = ''
-      mkdir -p $out/share/panamax-api
-      cp -R . $out/share/panamax-api
-      cd $out/share/panamax-api
-
-      export HOME=$PWD
-      export GEM_HOME=$PWD
-      export PATH="${rubygems}/bin:$PATH"
-      export RAILS_ENV=production
-
-      find . -type f -exec sed -e 's|/usr/bin/docker|${docker}/bin/docker|g' -i "{}" \;
-
-      mkdir -p vendor/cache
-      ${stdenv.lib.concatStrings (map (gem: "ln -s ${gem} vendor/cache/${gem.name};") gemspec)}
-
-      ${"ln -s ${srcs.bundler} vendor/cache/${srcs.bundler.name};"}
-      gem install --local vendor/cache/${srcs.bundler.name}
-
-      ln -sf ${database_yml} config/database.yml
-
-
-      bin/bundle install -j4 --verbose --local --deployment
-
-      rm -f ./bin/*
-
-      ./gems/bundler-*/bin/bundle exec rake rails:update:bin
-
-      rm -rf log
-      ln -sf ${dataDir}/state/log .
-      ln -sf ${dataDir}/state/tmp .
-      mv ./db ./_db
-      ln -sf ${dataDir}/db .
-    '';
-  };
-
-  panamax_api_init = writeScriptBin "panamax-api-init" ''
-    #!${stdenv.shell}
-
-    test -d ${dataDir}/db && exit 0
-
-    cd ${panamax_api}/share/panamax-api
+  postPatch = ''
+    find . -type f -exec sed -e 's|/usr/bin/docker|${docker}/bin/docker|g' -i "{}" \;
+  '';
 
+  configurePhase = ''
     export HOME=$PWD
     export GEM_HOME=$PWD
-    export PATH="${panamax_api}/share/panamax-api/bin:${ruby}/bin:$PATH"
-    export OPENSSL_X509_CERT_FILE="${cacert}/etc/ca-bundle.crt"
     export RAILS_ENV=production
 
-    mkdir -p ${dataDir}/state/log
-    mkdir -p ${dataDir}/db/mnt
-    ln -sf ${panamax_api}/share/panamax-api/_db/schema.rb ${dataDir}/db/
-    ln -sf ${panamax_api}/share/panamax-api/_db/seeds.rb ${dataDir}/db/
-    ln -sf ${panamax_api}/share/panamax-api/_db/migrate ${dataDir}/db/
-
-    bundle exec rake db:setup
-    bundle exec rake db:seed
-    bundle exec rake panamax:templates:load
+    mkdir -p vendor/cache
+    ${concatStrings (map (gem: "ln -s ${gem} vendor/cache/${gem.name};") gemspec)}
+    ln -s ${bundler} vendor/cache/${bundler.name}
+    ln -sf ${database_yml} config/database.yml
   '';
 
-  panamax_api_run = writeScriptBin "panamax-api-run" ''
-    #!${stdenv.shell}
-    cd ${panamax_api}/share/panamax-api
-    mkdir -p ${dataDir}/state/tmp
-    export HOME=$PWD
-    export GEM_HOME=$PWD
-    export PATH="${panamax_api}/share/panamax-api/bin:${ruby}/bin:${docker}/bin:$PATH"
-    export RAILS_ENV=production
-    export SSL_CERT_FILE="${cacert}/etc/ca-bundle.crt"
-    bin/bundle exec rails s $@
+  buildPhase = ''
+    gem install --local vendor/cache/${bundler.name}
+    bin/bundle install -j4 --verbose --local --deployment --without development test
   '';
 
-  database_yml = builtins.toFile "database.yml" ''
-    development:
-      adapter: sqlite3
-      database: ${dataDir}/db/mnt/development.sqlite3
-      pool: 5
-      timeout: 5000
+  installPhase = ''
+    rm -rf log tmp
+    mv ./db ./_db
+    ln -sf ${dataDir}/{db,state/log,state/tmp} .
 
-    # See corresponding schema load in spec/support/in_memory_database
-    test:
-      adapter: sqlite3
-      database: ":memory:"
-      verbosity: quiet
-
-    production:
-      adapter: sqlite3
-      database: ${dataDir}/db/mnt/production.sqlite3
-      pool: 5
-      timeout: 5000
+    mkdir -p $out/bin
+    makeWrapper bin/bundle "$out/bin/bundle" \
+      --run "cd $out/share/panamax-api" \
+      --prefix "PATH" : "$out/share/panamax-api/bin:${ruby}/bin:$PATH" \
+      --prefix "HOME" : "$out/share/panamax-api" \
+      --prefix "GEM_HOME" : "$out/share/panamax-api" \
+      --prefix "OPENSSL_X509_CERT_FILE" : "${cacert}/etc/ca-bundle.crt" \
+      --prefix "SSL_CERT_FILE" : "${cacert}/etc/ca-bundle.crt"
   '';
 
-in
-  stdenv.mkDerivation rec {
-    name = panamax_api.name;
+  postFixup = ''
+    rm -r vendor/cache/*
+  '';
 
-    unpackPhase = "true";
-
-    installPhase = ''
-      mkdir -p $out/bin
-      ln -s ${panamax_api_init}/bin/* $out/bin
-      ln -s ${panamax_api_run}/bin/* $out/bin
-    '';
-
-    meta = with stdenv.lib; {
-      homepage = https://github.com/CenturyLinkLabs/panamax-api;
-      description = "The API behind The Panamax UI";
-      license = licenses.asl20;
-      maintainers = with maintainers; [ matejc ];
-      platforms = platforms.linux;
-    };
-  }
+  meta = with stdenv.lib; {
+    homepage = https://github.com/CenturyLinkLabs/panamax-api;
+    description = "The API behind The Panamax UI";
+    license = licenses.asl20;
+    maintainers = with maintainers; [ matejc offline ];
+    platforms = platforms.linux;
+  };
+}
diff --git a/pkgs/applications/networking/cluster/panamax/ui.nix b/pkgs/applications/networking/cluster/panamax/ui.nix
index bc520f60d6d..3181fb976e0 100644
--- a/pkgs/applications/networking/cluster/panamax/ui.nix
+++ b/pkgs/applications/networking/cluster/panamax/ui.nix
@@ -1,101 +1,74 @@
-{ stdenv, buildEnv, fetchgit, fetchurl, ruby_2_1, rubygemsFun
-, libxml2, libxslt, openssl, writeScriptBin, sqlite
-, dataDir ? "/var/lib/panamax-ui" }:
-let
-  ruby = ruby_2_1;
-  rubygems = rubygemsFun ruby_2_1;
+{ stdenv, fetchgit, fetchurl, makeWrapper
+, ruby, rubygemsFun, openssl, sqlite, dataDir ? "/var/lib/panamax-ui"}:
+
+with stdenv.lib;
+
+stdenv.mkDerivation rec {
+  name = "panamax-ui-${version}";
+  version = "0.2.11";
+
+  bundler = fetchurl {
+    url = "http://rubygems.org/downloads/bundler-1.7.9.gem";
+    sha256 = "1gd201rh17xykab9pbqp0dkxfm7b9jri02llyvmrc0c5bz2vhycm";
+  };
+
+  src = fetchgit {
+    rev = "refs/tags/v${version}";
+    url = "git://github.com/CenturyLinkLabs/panamax-ui";
+    sha256 = "17j5ac8fzp377bzg7f239jdcc9j0c63bkx0ill5nl10i3h05z7jh";
+  };
 
   gemspec = map (gem: fetchurl { url=gem.url; sha256=gem.hash; }) (import ./Gemfile-ui.nix);
 
-  srcs = {
-    bundler = fetchurl {
-      url = "http://rubygems.org/downloads/bundler-1.7.9.gem";
-      sha256 = "1gd201rh17xykab9pbqp0dkxfm7b9jri02llyvmrc0c5bz2vhycm";
-    };
-  };
+  buildInputs = [ makeWrapper ruby openssl sqlite (rubygemsFun ruby) ];
 
-  panamax_ui = stdenv.mkDerivation rec {
-    name = "panamax-ui-${version}";
-    version = "0.2.11";
-
-    src = fetchgit {
-      rev = "refs/tags/v${version}";
-      url = "git://github.com/CenturyLinkLabs/panamax-ui";
-      sha256 = "17j5ac8fzp377bzg7f239jdcc9j0c63bkx0ill5nl10i3h05z7jh";
-    };
-
-    buildInputs = [ ruby openssl sqlite ];
-    installPhase = ''
-      mkdir -p $out/share/panamax-ui
-      cp -R . $out/share/panamax-ui
-      cd $out/share/panamax-ui
-
-      find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Journal|NixOS Journal|g' -i "{}" \;
-      find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Local|NixOS Local|g' -i "{}" \;
-      find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Host|NixOS Host|g' -i "{}" \;
-      sed -e 's|CoreOS Local|NixOS Local|g' -i "spec/features/manage_application_spec.rb"
-
-      export HOME=$PWD
-      export GEM_HOME=$PWD
-      export PATH="${rubygems}/bin:$PATH"
-
-      mkdir -p vendor/cache
-      ${stdenv.lib.concatStrings (map (gem: "ln -s ${gem} vendor/cache/${gem.name};") gemspec)}
-
-      ${"ln -s ${srcs.bundler} vendor/cache/${srcs.bundler.name};"}
-      gem install --local vendor/cache/${srcs.bundler.name}
-
-      bin/bundle install --verbose --local --without development test
-
-      rm -f ./bin/*
-
-      ./gems/bundler-*/bin/bundle exec rake rails:update:bin
-
-      rm -rf log
-      ln -sf ${dataDir}/state/log .
-      rm -rf tmp
-      ln -sf ${dataDir}/state/tmp .
-      rm -rf db
-      ln -sf ${dataDir}/db .
-    '';
-  };
-
-  panamax_ui_run = writeScriptBin "panamax-ui-run" ''
-    #!${stdenv.shell}
-
-    cd ${panamax_ui}/share/panamax-ui
-    export PATH="${panamax_ui}/share/panamax-ui/bin:${ruby}/bin:$PATH"
-    export RAILS_ENV="production"
-    export HOME="${panamax_ui}/share/panamax-ui"
-    export GEM_HOME="${panamax_ui}/share/panamax-ui"
-    export GEM_PATH="${panamax_ui}/share/panamax-ui"
-
-    echo ${panamax_ui}/share/panamax-ui
-
-    mkdir -p ${dataDir}/state/log
-    mkdir -p ${dataDir}/state/tmp
-    mkdir -p ${dataDir}/db
-
-    export PMX_API_PORT_3000_TCP_ADDR=localhost
-    bin/rails server $@
+  setSourceRoot = ''
+    mkdir -p $out/share
+    cp -R git-export $out/share/panamax-ui
+    export sourceRoot="$out/share/panamax-ui"
   '';
 
-in
-  stdenv.mkDerivation rec {
-    name = panamax_ui.name;
+  postPatch = ''
+    find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Journal|NixOS Journal|g' -i "{}" \;
+    find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Local|NixOS Local|g' -i "{}" \;
+    find . -type f -iname "*.haml" -exec sed -e 's|CoreOS Host|NixOS Host|g' -i "{}" \;
+    sed -e 's|CoreOS Local|NixOS Local|g' -i "spec/features/manage_application_spec.rb"
+  '';
 
-    unpackPhase = "true";
+  configurePhase = ''
+    export HOME=$PWD
+    export GEM_HOME=$PWD
 
-    installPhase = ''
-      mkdir -p $out/bin
-      ln -s ${panamax_ui_run}/bin/* $out/bin
-    '';
+    mkdir -p vendor/cache
+    ${concatStrings (map (gem: "ln -s ${gem} vendor/cache/${gem.name};") gemspec)}
+    ln -s ${bundler} vendor/cache/${bundler.name}
+  '';
 
-    meta = with stdenv.lib; {
-      homepage = https://github.com/CenturyLinkLabs/panamax-ui;
-      description = "The Web GUI for Panamax";
-      license = licenses.asl20;
-      maintainers = with maintainers; [ matejc ];
-      platforms = platforms.linux;
-    };
-  }
+  buildPhase = ''
+    gem install --local vendor/cache/${bundler.name}
+    bin/bundle install --verbose --local --without development test
+    rm -f ./bin/*
+    ruby ./gems/bundler-*/bin/bundle exec rake rails:update:bin
+  '';
+
+  installPhase = ''
+    rm -rf log tmp db
+    ln -sf ${dataDir}/{db,state/log,state/tmp} .
+
+    mkdir -p $out/bin
+    makeWrapper bin/bundle "$out/bin/bundle" \
+      --run "cd $out/share/panamax-ui" \
+      --prefix "PATH" : "$out/share/panamax-ui/bin:${ruby}/bin:$PATH" \
+      --prefix "HOME" : "$out/share/panamax-ui" \
+      --prefix "GEM_HOME" : "$out/share/panamax-ui" \
+      --prefix "GEM_PATH" : "$out/share/panamax-ui"
+  '';
+
+  meta = with stdenv.lib; {
+    homepage = https://github.com/CenturyLinkLabs/panamax-ui;
+    description = "The Web GUI for Panamax";
+    license = licenses.asl20;
+    maintainers = with maintainers; [ matejc offline ];
+    platforms = platforms.linux;
+  };
+}
diff --git a/pkgs/top-level/all-packages.nix b/pkgs/top-level/all-packages.nix
index 08232c37b3e..4ddbf8b155d 100644
--- a/pkgs/top-level/all-packages.nix
+++ b/pkgs/top-level/all-packages.nix
@@ -10789,8 +10789,12 @@ let
   namecoin = callPackage ../applications/misc/namecoin { };
   namecoinqt = callPackage ../applications/misc/namecoin/qt.nix { };
 
-  panamax_api = callPackage ../applications/networking/cluster/panamax/api.nix {};
-  panamax_ui = callPackage ../applications/networking/cluster/panamax/ui.nix {};
+  panamax_api = callPackage ../applications/networking/cluster/panamax/api.nix {
+    ruby = ruby_2_1;
+  };
+  panamax_ui = callPackage ../applications/networking/cluster/panamax/ui.nix {
+    ruby = ruby_2_1;
+  };
 
   pcmanfm = callPackage ../applications/misc/pcmanfm { };