diff --git a/pkgs/stdenv/common-path.nix b/pkgs/stdenv/common-path.nix
index 63c9f14b15c4..da468d56a2cd 100644
--- a/pkgs/stdenv/common-path.nix
+++ b/pkgs/stdenv/common-path.nix
@@ -7,7 +7,7 @@
   pkgs.gawk
   pkgs.gnutar
   pkgs.gzip
-  pkgs.bzip2
+  pkgs.bzip2.bin
   pkgs.gnumake
   pkgs.bash
   pkgs.patch
diff --git a/pkgs/tools/compression/bzip2/builder.sh b/pkgs/tools/compression/bzip2/builder.sh
deleted file mode 100644
index a598dfcf808c..000000000000
--- a/pkgs/tools/compression/bzip2/builder.sh
+++ /dev/null
@@ -1,24 +0,0 @@
-source $stdenv/setup
-installFlags="PREFIX=$out"
-
-if test -n "$sharedLibrary"; then
-
-    preBuild() {
-        make -f Makefile-libbz2_so
-    }
-
-    preInstall() {
-        mkdir -p $out/lib
-        mv libbz2.so* $out/lib
-        (cd $out/lib && ln -s libbz2.so.1.0.? libbz2.so && ln -s libbz2.so.1.0.? libbz2.so.1);
-    }
-    
-fi
-
-postInstall() {
-    rm $out/bin/bunzip2* $out/bin/bzcat*
-    ln -s bzip2 $out/bin/bunzip2
-    ln -s bzip2 $out/bin/bzcat
-}
-
-genericBuild
diff --git a/pkgs/tools/compression/bzip2/default.nix b/pkgs/tools/compression/bzip2/default.nix
index 74da91431a43..da6695ee1da9 100644
--- a/pkgs/tools/compression/bzip2/default.nix
+++ b/pkgs/tools/compression/bzip2/default.nix
@@ -1,17 +1,25 @@
 { stdenv, fetchurl, linkStatic ? false }:
 
-let version = "1.0.6"; in
+let
+  version = "1.0.6";
+  inherit (stdenv.lib) optionalString;
+  sharedLibrary = with stdenv;
+    !( isDarwin || (stdenv ? isStatic) || system == "i686-cygwin" || linkStatic );
+in
 
-stdenv.mkDerivation {
+stdenv.mkDerivation rec {
   name = "bzip2-${version}";
 
-  builder = ./builder.sh;
-
   src = fetchurl {
     url = "http://www.bzip.org/${version}/bzip2-${version}.tar.gz";
     sha256 = "1kfrc7f0ja9fdn6j1y6yir6li818npy6217hvr3wzmnmzhs8z152";
   };
 
+  patchPhase = optionalString stdenv.isDarwin
+    "substituteInPlace Makefile --replace 'CC=gcc' 'CC=clang'";
+
+  outputs = [ "dev" "bin" "static" ] ++ stdenv.lib.optional sharedLibrary "out";
+
   crossAttrs = {
     patchPhase = ''
       sed -i -e '/<sys\\stat\.h>/s|\\|/|' bzip2.c
@@ -23,16 +31,27 @@ stdenv.mkDerivation {
     '';
   };
 
-  sharedLibrary =
-    !stdenv.isDarwin && !(stdenv ? isStatic) && stdenv.system != "i686-cygwin" && !linkStatic;
-
-  patchPhase = stdenv.lib.optionalString stdenv.isDarwin "substituteInPlace Makefile --replace 'CC=gcc' 'CC=clang'";
-
   preConfigure = "substituteInPlace Makefile --replace '$(PREFIX)/man' '$(PREFIX)/share/man'";
 
-  makeFlags = if linkStatic then "LDFLAGS=-static" else "";
+  preBuild = optionalString sharedLibrary "make -f Makefile-libbz2_so";
+  makeFlags = optionalString linkStatic "LDFLAGS=-static";
 
-  inherit linkStatic;
+  installFlags = "PREFIX=$(bin)";
+
+  postInstall = optionalString sharedLibrary ''
+    mkdir -p $out/lib
+    mv libbz2.so* $out/lib
+    ( cd $out/lib && ln -s libbz2.so.1.*.* libbz2.so && ln -s libbz2.so.1.*.* libbz2.so.1 )
+  '' + ''
+    mkdir -p "$static"
+    mv "$bin/lib" "$static/"
+    (
+      cd "$bin/bin"
+      rm {bunzip2,bzcat}*
+      ln -s bzip2 bunzip2
+      ln -s bzip2 bzcat
+    )
+  '';
 
   meta = {
     homepage = "http://www.bzip.org";