diff --git a/cmake/templates/_setup_util.py.in b/cmake/templates/_setup_util.py.in
index e7e57ee35..0d3c86a18 100755
--- a/cmake/templates/_setup_util.py.in
+++ b/cmake/templates/_setup_util.py.in
@@ -41,13 +41,6 @@ import os
 import platform
 import sys
 
-# environment at generation time
-CMAKE_PREFIX_PATH = '@CMAKE_PREFIX_PATH_AS_IS@'.split(';')
-setup_dir = '@SETUP_DIR@'
-if setup_dir and setup_dir not in CMAKE_PREFIX_PATH:
-    CMAKE_PREFIX_PATH.insert(0, setup_dir)
-CMAKE_PREFIX_PATH = os.pathsep.join(CMAKE_PREFIX_PATH)
-
 CATKIN_MARKER_FILE = '.catkin'
 
 system = platform.system()
@@ -256,6 +249,14 @@ if __name__ == '__main__':
         print(e, file=sys.stderr)
         exit(1)
 
+    # environment at generation time
+    CMAKE_PREFIX_PATH = '@CMAKE_PREFIX_PATH_AS_IS@'.split(';')
+    # prepend current workspace if not already part of CPP
+    base_path = os.path.dirname(__file__)
+    if base_path not in CMAKE_PREFIX_PATH:
+        CMAKE_PREFIX_PATH.insert(0, base_path)
+    CMAKE_PREFIX_PATH = os.pathsep.join(CMAKE_PREFIX_PATH)
+
     environ = dict(os.environ)
     lines = []
     if not args.extend:
diff --git a/cmake/templates/env.sh.in b/cmake/templates/env.sh.in
index 5d04650d8..ad259eaa2 100755
--- a/cmake/templates/env.sh.in
+++ b/cmake/templates/env.sh.in
@@ -5,7 +5,9 @@ if [ $# -eq 0 ] ; then
   /bin/echo "Usage: env.sh COMMANDS"
   /bin/echo "Calling env.sh without arguments is not supported anymore. Instead spawn a subshell and source a setup file manually."
   exit 1
-else
-  . "@SETUP_DIR@/@SETUP_FILENAME@.sh"
-  exec "$@"
 fi
+
+# source @SETUP_FILENAME@.sh from same directory as this file
+CATKIN_SETUP_DIR=$(cd `dirname $0`;pwd)
+. "$CATKIN_SETUP_DIR/@SETUP_FILENAME@.sh"
+exec "$@"
diff --git a/cmake/templates/setup.bash.in b/cmake/templates/setup.bash.in
index 078fd13f0..97e9e706b 100644
--- a/cmake/templates/setup.bash.in
+++ b/cmake/templates/setup.bash.in
@@ -2,4 +2,7 @@
 # generated from catkin/cmake/templates/setup.bash.in
 
 CATKIN_SHELL=bash
-. "@SETUP_DIR@/setup.sh"
+
+# source setup.sh from same directory as this file
+CATKIN_SETUP_DIR=$(cd `dirname ${BASH_SOURCE[0]}`;pwd)
+. "$CATKIN_SETUP_DIR/setup.sh"
diff --git a/cmake/templates/setup.sh.in b/cmake/templates/setup.sh.in
index fa28dfbba..66b91cab9 100644
--- a/cmake/templates/setup.sh.in
+++ b/cmake/templates/setup.sh.in
@@ -6,7 +6,10 @@
 # Supported command line options:
 # --extend: skips the undoing of changes from a previously sourced setup file
 
-_SETUP_UTIL="@SETUP_DIR@/_setup_util.py"
+# since this file is sourced either use the provided CATKIN_SETUP_DIR
+# or fall back to the destination set at configure time
+: ${CATKIN_SETUP_DIR:=@SETUP_DIR@}
+_SETUP_UTIL="$CATKIN_SETUP_DIR/_setup_util.py"
 
 if [ ! -f "$_SETUP_UTIL" ]; then
   echo "Missing Python script: $_SETUP_UTIL"
diff --git a/cmake/templates/setup.zsh.in b/cmake/templates/setup.zsh.in
index 220d1fbde..5e681e404 100644
--- a/cmake/templates/setup.zsh.in
+++ b/cmake/templates/setup.zsh.in
@@ -2,6 +2,7 @@
 # generated from catkin/cmake/templates/setup.zsh.in
 
 CATKIN_SHELL=zsh
+CATKIN_SETUP_DIR=$(cd `dirname $0`;pwd)
 emulate sh # emulate POSIX
-. "@SETUP_DIR@/setup.sh"
+. "$CATKIN_SETUP_DIR/setup.sh"
 emulate zsh # back to zsh mode