diff --git a/pkgs/os-specific/linux/kernel/generic.nix b/pkgs/os-specific/linux/kernel/generic.nix
index af62125eb757..9fe1dedda864 100644
--- a/pkgs/os-specific/linux/kernel/generic.nix
+++ b/pkgs/os-specific/linux/kernel/generic.nix
@@ -38,7 +38,6 @@
 , extraMeta ? {}
 , ubootChooser ? null
 , postInstall ? ""
-, setModuleDir ? true
 
 , # After the builder did a 'make all' (kernel + modules)
   # we force building the target asked: bzImage/zImage/uImage/...
@@ -80,15 +79,6 @@ stdenv.mkDerivation {
 
   inherit preConfigure src module_init_tools localVersion postInstall;
 
-  #Currently, the builder sets $MODULE_DIR during installPhase. This causes
-  #problems with at least linux 3.0, so we need to conditionally avoid
-  #setting $MODULE_DIR. This prepend to postBuild accomplishes this with a
-  #sed/eval trick thanks to MarcWeber
-
-  postBuild = (if setModuleDir then "" else '' 
-    eval "$(type installPhase | sed -e '1d' -e '/export MODULE_DIR/d')";
-  '') + postBuild;
-
   patches = map (p: p.patch) kernelPatches;
 
   kernelConfig = kernelConfigFun config;
diff --git a/pkgs/os-specific/linux/kernel/linux-3.0.nix b/pkgs/os-specific/linux/kernel/linux-3.0.nix
index 1b685cd2d943..6f1a32e5c0f1 100644
--- a/pkgs/os-specific/linux/kernel/linux-3.0.nix
+++ b/pkgs/os-specific/linux/kernel/linux-3.0.nix
@@ -202,6 +202,10 @@ import ./generic.nix (
   rec {
     version = "3.0.4";
   
+    preConfigure = ''
+      substituteInPlace scripts/depmod.sh --replace '-b "$INSTALL_MOD_PATH"' ""
+    '';
+
     src = fetchurl {
       url = "mirror://kernel/linux/kernel/v3.x/linux-${version}.tar.bz2";
       sha256 = "1vypjcdii75h5f4zsw9lm8wzxd5ix0mk5p94c96hxv828mqqkmhk";
@@ -210,8 +214,6 @@ import ./generic.nix (
     config = configWithPlatform stdenv.platform;
     configCross = configWithPlatform stdenv.cross.platform;
 
-    setModuleDir = false;
-
     features.iwlwifi = true;
   }
 
diff --git a/pkgs/os-specific/linux/kernel/linux-3.1.nix b/pkgs/os-specific/linux/kernel/linux-3.1.nix
index ae78de1e4769..4f8d08340e6a 100644
--- a/pkgs/os-specific/linux/kernel/linux-3.1.nix
+++ b/pkgs/os-specific/linux/kernel/linux-3.1.nix
@@ -203,6 +203,10 @@ import ./generic.nix (
     version = "3.1-rc8";
 
     modDirVersion = "3.1.0-rc8";
+
+    preConfigure = ''
+      substituteInPlace scripts/depmod.sh --replace '-b "$INSTALL_MOD_PATH"' ""
+    '';
   
     src = fetchurl {
       url = "https://github.com/torvalds/linux/tarball/v${version}";
@@ -213,8 +217,6 @@ import ./generic.nix (
     config = configWithPlatform stdenv.platform;
     configCross = configWithPlatform stdenv.cross.platform;
 
-    setModuleDir = false;
-
     features.iwlwifi = true;
   }