diff --git a/CMakeLists.txt b/CMakeLists.txt
index 354c5428ab..524e75276b 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -51,6 +51,9 @@ file(MAKE_DIRECTORY "${PDAL_OUTPUT_BIN_DIR}")
 # per http://www.cmake.org/Wiki/CMake_RPATH_handling
 SET(CMAKE_SKIP_BUILD_RPATH FALSE )
 SET(CMAKE_BUILD_WITH_INSTALL_RPATH FALSE)
+if (APPLE)
+    SET(CMAKE_BUILD_WITH_INSTALL_RPATH TRUE)
+endif()
 SET(CMAKE_INSTALL_RPATH_USE_LINK_PATH TRUE)
 IF (APPLE)
     SET(MACOSX_RPATH ON)
diff --git a/cmake/macros.cmake b/cmake/macros.cmake
index 396d0fbe6a..6f5402708d 100644
--- a/cmake/macros.cmake
+++ b/cmake/macros.cmake
@@ -64,6 +64,9 @@ macro(PDAL_ADD_LIBRARY _name)
         RUNTIME DESTINATION ${PDAL_BIN_INSTALL_DIR}
         LIBRARY DESTINATION ${PDAL_LIB_INSTALL_DIR}
         ARCHIVE DESTINATION ${PDAL_LIB_INSTALL_DIR})
+    if (APPLE)
+        set_target_properties(${_name} PROPERTIES INSTALL_NAME_DIR "@executable_path/../lib")
+    endif()
 endmacro(PDAL_ADD_LIBRARY)
 
 ###############################################################################
@@ -114,6 +117,9 @@ macro(PDAL_ADD_PLUGIN _name _type _shortname)
         RUNTIME DESTINATION ${PDAL_BIN_INSTALL_DIR}
         LIBRARY DESTINATION ${PDAL_LIB_INSTALL_DIR}
         ARCHIVE DESTINATION ${PDAL_LIB_INSTALL_DIR})
+    if (APPLE)
+        set_target_properties(${${_name}} PROPERTIES INSTALL_NAME_DIR "@loader_path/")
+    endif()
 endmacro(PDAL_ADD_PLUGIN)
 
 ###############################################################################
diff --git a/cmake/policies.cmake b/cmake/policies.cmake
index cdb43762c3..e968597728 100644
--- a/cmake/policies.cmake
+++ b/cmake/policies.cmake
@@ -3,5 +3,5 @@
 #
 if (CMAKE_MAJOR_VERSION GREATER 2)
     cmake_policy(SET CMP0022 OLD) # interface link libraries
-    cmake_policy(SET CMP0042 OLD) # osx rpath
+    cmake_policy(SET CMP0042 NEW) # osx rpath
 endif()