diff --git a/configure.ac b/configure.ac
index 7c454cd..185ebb6 100644
--- a/configure.ac
+++ b/configure.ac
@@ -64,7 +64,7 @@ if test "$enable_tools" != "no" || test "$enable_doc" != "no"; then
 ***
 *** autogen not found. Will not link against libopts.
 *** ]])
-    enable_local_libopts=yes
+    included_libopts=yes
   fi
 fi
 
@@ -523,7 +523,7 @@ fi
 
 AM_CONDITIONAL(ENABLE_TROUSERS, test "$with_tpm" != "no")
 
-enable_local_libopts=no
+included_libopts=no
 if test "$enable_tools" != "no" || test "$enable_doc" != "no"; then
 	LIBOPTS_CHECK([src/libopts])
 	if test "$NEED_LIBOPTS_DIR" = "true";then
@@ -540,15 +540,17 @@ if test "$enable_tools" != "no" || test "$enable_doc" != "no"; then
 		if test -z "$missing_baks"; then
 			AC_SUBST([AUTOGEN], [/bin/true])
 		fi
-		enable_local_libopts=yes
+		included_libopts=yes
 	fi
 else
 	# Need to ensure the relevant conditionals get set
 	gl_STDNORETURN_H
 	AM_CONDITIONAL([INSTALL_LIBOPTS],[false])
 	AM_CONDITIONAL([NEED_LIBOPTS], [false])
+	included_libopts=yes
 fi
-AM_CONDITIONAL(NEED_LIBOPTS, test "$enable_local_libopts" = "yes")
+
+AM_CONDITIONAL(NEED_LIBOPTS, test "$included_libopts" = "yes")
 
 AC_CHECK_TYPE(ssize_t,
   [
@@ -896,7 +898,7 @@ AC_MSG_NOTICE([summary of build options:
   Compiler:             ${CC}
   CFlags:               ${CFLAGS}
   Library types:        Shared=${enable_shared}, Static=${enable_static}
-  Local libopts:        ${enable_local_libopts}
+  Local libopts:        ${included_libopts}
   Local libtasn1:       ${included_libtasn1}
   Use nettle-mini:      ${mini_nettle}
 ])
diff --git a/src/Makefile.am b/src/Makefile.am
index 4105ab6..b907249 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -30,13 +30,6 @@ if ENABLE_CRYWRAP
 SUBDIRS += crywrap
 endif
 
-if NEED_LIBOPTS
-LIBOPTS = libopts/libopts.la
-SUBDIRS += libopts
-else
-LIBOPTS = $(LIBOPTS_LDADD)
-endif
-
 EXTRA_DIST = args-std.def
 
 AM_CFLAGS = $(WARN_CFLAGS) $(WERROR_CFLAGS)
@@ -49,6 +42,14 @@ AM_CPPFLAGS = \
 	-I$(srcdir)/../extra/includes	\
 	$(LIBOPTS_CFLAGS)
 
+if NEED_LIBOPTS
+LIBOPTS = libopts/libopts.la
+SUBDIRS += libopts
+AM_CPPFLAGS += -I$(srcdir)/libopts
+else
+LIBOPTS = $(LIBOPTS_LDADD)
+endif
+
 bin_PROGRAMS = psktool gnutls-cli-debug certtool
 if ENABLE_SRP
 bin_PROGRAMS += srptool