diff --git a/pkgs/misc/nix/builder.sh b/pkgs/misc/nix/builder.sh
index 28e22f3bbf7..432034fac37 100644
--- a/pkgs/misc/nix/builder.sh
+++ b/pkgs/misc/nix/builder.sh
@@ -1,7 +1,7 @@
 . $stdenv/setup
 
 configureFlags="\
-  --with-store-dir=/nix/store --localstatedir=/nix/var \
+  --with-store-dir=$storeDir --localstatedir=$stateDir \
   --with-aterm=$aterm --with-bdb=$bdb"
 
 genericBuild
diff --git a/pkgs/misc/nix/default.nix b/pkgs/misc/nix/default.nix
index 15ea7b6bfca..1bf71fcf507 100644
--- a/pkgs/misc/nix/default.nix
+++ b/pkgs/misc/nix/default.nix
@@ -8,11 +8,11 @@ assert aterm != null && bdb != null && perl != null;
 # assert aterm.version >= 2.0
 
 stdenv.mkDerivation {
-  name = "nix-0.5pre881";
+  name = "nix-0.5pre927";
   builder = ./builder.sh;
   src = fetchurl {
-    url = http://catamaran.labs.cs.uu.nl/dist/nix/nix-0.5pre881/nix-0.5pre881.tar.bz2;
-    md5 = "427a4add7b374ea392ec81a3494cfb23";
+    url = http://catamaran.labs.cs.uu.nl/dist/nix/nix-0.5pre927/nix-0.5pre927.tar.bz2;
+    md5 = "57d71f86718ba8e75a5ed16a302fcf39";
   };
   buildInputs = [aterm bdb perl];
   inherit storeDir stateDir aterm bdb;