diff --git a/config/default.rb b/config/default.rb
index 661d6fb77..ab0bfe93e 100644
--- a/config/default.rb
+++ b/config/default.rb
@@ -11,7 +11,7 @@ Vagrant::Config.run do |config|
   config.ssh.forwarded_port_key = "ssh"
   config.ssh.max_tries = 10
   config.ssh.timeout = 30
-  config.ssh.private_key_path = File.join(PROJECT_ROOT, 'keys', 'vagrant')
+  config.ssh.private_key_path = File.expand_path("keys/vagrant", Vagrant.source_root)
   config.ssh.forward_agent = false
 
   config.vm.auto_port_range = (2200..2250)
diff --git a/lib/vagrant.rb b/lib/vagrant.rb
index c2b036c94..be0d4e465 100644
--- a/lib/vagrant.rb
+++ b/lib/vagrant.rb
@@ -1,16 +1,24 @@
-libdir = File.join(File.dirname(__FILE__), "vagrant")
-PROJECT_ROOT = File.join(libdir, '..', "..") unless defined?(PROJECT_ROOT)
-
 # First, load the various libs which Vagrant requires
 %w{tempfile json pathname logger virtualbox net/ssh archive/tar/minitar
   net/scp fileutils mario}.each do |lib|
   require lib
 end
 
+module Vagrant
+  class << self
+    # The source root is the path to the root directory of
+    # the Vagrant gem.
+    def source_root
+      File.expand_path('../../', __FILE__)
+    end
+  end
+end
+
 # Then load the glob loader, which will handle loading everything else
-require File.expand_path("util/glob_loader", libdir)
+require "vagrant/util/glob_loader"
 
 # Load them up
+libdir = File.expand_path("lib/vagrant", Vagrant.source_root)
 Vagrant::GlobLoader.glob_require(libdir, %w{util util/stacked_proc_runner
   downloaders/base config provisioners/base provisioners/chef systems/base
   commands/base commands/box action/exception_catcher hosts/base})
diff --git a/lib/vagrant/environment.rb b/lib/vagrant/environment.rb
index 32a04fb6a..61f8fc043 100644
--- a/lib/vagrant/environment.rb
+++ b/lib/vagrant/environment.rb
@@ -174,7 +174,7 @@ module Vagrant
     # to load the Vagrantfile into that context.
     def load_config!
       # Prepare load paths for config files and append to config queue
-      config_queue = [File.join(PROJECT_ROOT, "config", "default.rb")]
+      config_queue = [File.expand_path("config/default.rb", Vagrant.source_root)]
       config_queue << File.join(box.directory, ROOTFILE_NAME) if box
       config_queue << File.join(home_path, ROOTFILE_NAME) if home_path
       config_queue << File.join(root_path, ROOTFILE_NAME) if root_path
diff --git a/lib/vagrant/util/template_renderer.rb b/lib/vagrant/util/template_renderer.rb
index abbbe3f59..ce6c19811 100644
--- a/lib/vagrant/util/template_renderer.rb
+++ b/lib/vagrant/util/template_renderer.rb
@@ -76,7 +76,7 @@ module Vagrant
       #
       # @return [String]
       def full_template_path
-        File.join(PROJECT_ROOT, 'templates', "#{template}.erb").squeeze("/")
+        File.join(Vagrant.source_root, 'templates', "#{template}.erb").squeeze("/")
       end
     end
   end
diff --git a/lib/vagrant/util/translator.rb b/lib/vagrant/util/translator.rb
index 696440d23..ef5072a5f 100644
--- a/lib/vagrant/util/translator.rb
+++ b/lib/vagrant/util/translator.rb
@@ -18,7 +18,7 @@ module Vagrant
         #
         # @return [Hash]
         def strings
-          @@strings ||= YAML.load_file(File.join(PROJECT_ROOT, "templates", "strings.yml"))
+          @@strings ||= YAML.load_file(File.join(Vagrant.source_root, "templates", "strings.yml"))
         end
 
         # Renders the string with the given key and data parameters and returns
diff --git a/test/vagrant/environment_test.rb b/test/vagrant/environment_test.rb
index a5154500a..fc8d12652 100644
--- a/test/vagrant/environment_test.rb
+++ b/test/vagrant/environment_test.rb
@@ -314,7 +314,7 @@ class EnvironmentTest < Test::Unit::TestCase
       end
 
       should "load from the project root" do
-        File.expects(:exist?).with(File.join(PROJECT_ROOT, "config", "default.rb")).once
+        File.expects(:exist?).with(File.join(Vagrant.source_root, "config", "default.rb")).once
         @env.load_config!
       end
 
diff --git a/test/vagrant/util/template_renderer_test.rb b/test/vagrant/util/template_renderer_test.rb
index ff5ad46df..20922d5eb 100644
--- a/test/vagrant/util/template_renderer_test.rb
+++ b/test/vagrant/util/template_renderer_test.rb
@@ -73,13 +73,13 @@ class TemplateRendererUtilTest < Test::Unit::TestCase
     end
 
     should "be the ERB file in the templates directory" do
-      result = File.join(PROJECT_ROOT, "templates", "#{@template}.erb")
+      result = File.join(Vagrant.source_root, "templates", "#{@template}.erb")
       assert_equal result, @r.full_template_path
     end
 
     should "remove duplicate path separators" do
       @r.template = "foo///bar"
-      result = File.join(PROJECT_ROOT, "templates", "foo", "bar.erb")
+      result = File.join(Vagrant.source_root, "templates", "foo", "bar.erb")
       assert_equal result, @r.full_template_path
     end
   end
diff --git a/test/vagrant/util/translator_test.rb b/test/vagrant/util/translator_test.rb
index 94bfd6056..5c7fbcdd8 100644
--- a/test/vagrant/util/translator_test.rb
+++ b/test/vagrant/util/translator_test.rb
@@ -14,7 +14,7 @@ class TranslatorUtilTest < Test::Unit::TestCase
     end
 
     should "load the file initially, then never again unless reset" do
-      YAML.expects(:load_file).with(File.join(PROJECT_ROOT, "templates", "strings.yml")).once
+      YAML.expects(:load_file).with(File.join(Vagrant.source_root, "templates", "strings.yml")).once
       @klass.strings
       @klass.strings
       @klass.strings
@@ -22,7 +22,7 @@ class TranslatorUtilTest < Test::Unit::TestCase
     end
 
     should "reload if reset! is called" do
-      YAML.expects(:load_file).with(File.join(PROJECT_ROOT, "templates", "strings.yml")).twice
+      YAML.expects(:load_file).with(File.join(Vagrant.source_root, "templates", "strings.yml")).twice
       @klass.strings
       @klass.reset!
       @klass.strings