diff --git a/README.md b/README.md
index f3257ef5..9d64f0b5 100644
--- a/README.md
+++ b/README.md
@@ -95,6 +95,8 @@ To build and install everything under a private directory, run:
 
     make DESTDIR=~/obj install install-rubywrap install-pywrap
 
+On Debian `PYTHON_SETUP_ARGS=--install-layout=deb` needs to be set when installing the python wrappers in order to create the correct python directory structure.
+
 To run tests with the built libraries and programs, several paths (relative to `$DESTDIR`) need to be added to variables `$LD_LIBRARY_PATH`, `$PATH` and `$PYTHONPATH`.
 This can be done using [./scripts/env_use_destdir](./scripts/env_use_destdir):
 
diff --git a/libselinux/src/Makefile b/libselinux/src/Makefile
index 73303c36..190016e2 100644
--- a/libselinux/src/Makefile
+++ b/libselinux/src/Makefile
@@ -174,7 +174,7 @@ install: all
 	ln -sf --relative $(DESTDIR)$(SHLIBDIR)/$(LIBSO) $(DESTDIR)$(LIBDIR)/$(TARGET)
 
 install-pywrap: pywrap
-	$(PYTHON) setup.py install --prefix=$(PREFIX) `test -n "$(DESTDIR)" && echo --root $(DESTDIR)`
+	$(PYTHON) setup.py install --prefix=$(PREFIX) `test -n "$(DESTDIR)" && echo --root $(DESTDIR)` $(PYTHON_SETUP_ARGS)
 	install -m 644 $(SWIGPYOUT) $(DESTDIR)$(PYTHONLIBDIR)/selinux/__init__.py
 	ln -sf --relative $(DESTDIR)$(PYTHONLIBDIR)/selinux/_selinux$(PYCEXT) $(DESTDIR)$(PYTHONLIBDIR)/_selinux$(PYCEXT)
 
diff --git a/python/sepolicy/Makefile b/python/sepolicy/Makefile
index 69f29fa9..3361be4e 100644
--- a/python/sepolicy/Makefile
+++ b/python/sepolicy/Makefile
@@ -27,7 +27,7 @@ test:
 	@$(PYTHON) test_sepolicy.py -v
 
 install:
-	$(PYTHON) setup.py install --prefix=$(PREFIX) `test -n "$(DESTDIR)" && echo --root $(DESTDIR)`
+	$(PYTHON) setup.py install --prefix=$(PREFIX) `test -n "$(DESTDIR)" && echo --root $(DESTDIR)` $(PYTHON_SETUP_ARGS)
 	[ -d $(DESTDIR)$(BINDIR) ] || mkdir -p $(DESTDIR)$(BINDIR)
 	install -m 755 sepolicy.py $(DESTDIR)$(BINDIR)/sepolicy
 	(cd $(DESTDIR)$(BINDIR); ln -sf sepolicy sepolgen)