diff --git a/configure/CONFIG_COMMON b/configure/CONFIG_COMMON
index 5878c2cbe..653c52bee 100644
--- a/configure/CONFIG_COMMON
+++ b/configure/CONFIG_COMMON
@@ -76,9 +76,12 @@ INSTALL_DB                  = $(INSTALL_LOCATION)/db
 INSTALL_CONFIG              = $(INSTALL_LOCATION)/configure
 INSTALL_JAVA                = $(INSTALL_LOCATION)/javalib
 
-#Directory for OS independant build created files
+# Directory for OS independant build created files
 COMMON_DIR = ../O.Common
 
+# The IOC's path to $(TOP), may be overridden inside the application
+IOCS_APPL_TOP               = $(INSTALL_LOCATION)
+
 #-------------------------------------------------------
 # Make echo output - suppress echoing if make's '-s' flag is set
 NOP = :
diff --git a/configure/RULES.Db b/configure/RULES.Db
index c66aef272..c697f675c 100644
--- a/configure/RULES.Db
+++ b/configure/RULES.Db
@@ -368,8 +368,7 @@ $(foreach file, $(DB_INSTALLS), $(eval $(call DB_INSTALLS_template, $(file))))
 
 ##################################################### register record,device,driver support
 
-IOC_INST_TOP := $(firstword $(IOCS_APPL_TOP) \
-        $(shell $(PERL) $(TOOLS)/fullPathName.pl $(INSTALL_LOCATION) ) )
+IOC_INST_TOP := $(shell $(PERL) $(TOOLS)/fullPathName.pl $(IOCS_APPL_TOP) )
 
 %_registerRecordDeviceDriver.cpp: $(COMMON_DIR)/%.dbd 
 	@$(RM) $@ $*.tmp
diff --git a/configure/RULES.ioc b/configure/RULES.ioc
index c661d54d5..cf74343b2 100644
--- a/configure/RULES.ioc
+++ b/configure/RULES.ioc
@@ -1,13 +1,13 @@
 #*************************************************************************
-# Copyright (c) 2002 The University of Chicago, as Operator of Argonne
+# Copyright (c) 2013 UChicago Argonne LLC, as Operator of Argonne
 #     National Laboratory.
 # Copyright (c) 2002 The Regents of the University of California, as
 #     Operator of Los Alamos National Laboratory.
-# EPICS BASE Versions 3.13.7
-# and higher are distributed subject to a Software License Agreement found
-# in file LICENSE that is included with this distribution. 
+# EPICS BASE is distributed subject to a Software License Agreement found
+# in file LICENSE that is included with this distribution.
 #*************************************************************************
 #RULES.ioc
+
 include $(CONFIG)/RULES_DIRS
 
 build$(DIVIDER)$(ARCH) build: buildInstall
@@ -15,23 +15,18 @@ install$(DIVIDER)$(ARCH) install: buildInstall
 $(ARCH): buildInstall
 
 ifeq ($(filter $(ARCH),$(BUILD_ARCHS)),$(ARCH))
-buildInstall$(DIVIDER)$(ARCH) buildInstall: $(TARGETS)
+    buildInstall$(DIVIDER)$(ARCH) buildInstall: $(TARGETS)
 
-clean$(DIVIDER)$(ARCH) clean:
+    clean$(DIVIDER)$(ARCH) clean:
 	$(RM) cdCommands envPaths dllPath.bat
-
-else 
-buildInstall$(DIVIDER)$(ARCH) buildInstall:
-clean$(DIVIDER)$(ARCH) clean:
+else
+    buildInstall$(DIVIDER)$(ARCH) buildInstall:
+    clean$(DIVIDER)$(ARCH) clean:
 endif
 
 cdCommands envPaths dllPath.bat: $(wildcard $(TOP)/configure/RELEASE*) \
-	$(TOP)/configure/CONFIG $(INSTALL_BIN)
-ifeq ($(IOCS_APPL_TOP),)
-	$(PERL) $(TOOLS)/convertRelease.pl -a $(ARCH) $@
-else
+    $(wildcard $(TOP)/configure/CONFIG_SITE*) $(INSTALL_BIN)
 	$(PERL) $(TOOLS)/convertRelease.pl -a $(ARCH) -t $(IOCS_APPL_TOP) $@
-endif
 
 realclean:
 	$(RM) cdCommands envPaths dllPath.bat
diff --git a/documentation/RELEASE_NOTES.html b/documentation/RELEASE_NOTES.html
index 7632b4c81..366ef973a 100644
--- a/documentation/RELEASE_NOTES.html
+++ b/documentation/RELEASE_NOTES.html
@@ -13,6 +13,16 @@
 
 <!-- Insert new items immediately below here ... -->
 
+<h4>IOCS_APPL_TOP and INSTALL_LOCATION</h4>
+
+<p>An IOC application that sets INSTALL_LOCATION in its configure/CONFIG_SITE
+file no longer has to set IOCS_APPL_TOP there as well, unless the IOC uses a
+different path than the build host to reach the application's top directory in
+its filesystem. The IOCS_APPL_TOP variable now defaults to the value of
+INSTALL_LOCATION, so setting the latter automatically sets the former. This
+change fixes <a href="https://bugs.launchpad.net/bugs/1165257">Launchpad bug
+1165257</a>.</p>
+
 <h4>devLibVME.h</h4>
 
 <p>Moved the declaration of bcopyLongs() from this header into RTEMS/osdVME.h.