diff -r 6289e26f32ab alembic/script.py
--- a/alembic/script.py	Fri Feb 03 09:51:53 2012 -0500
+++ b/alembic/script.py	Wed Feb 08 07:15:47 2012 +0800
@@ -1,6 +1,7 @@
 from __future__ import with_statement
 
 import os
+import pkg_resources
 from alembic import util
 import shutil
 import re
@@ -29,8 +30,11 @@
 
     @classmethod
     def from_config(cls, config):
+        dir = config.get_main_option('script_location')
+        if ':' in dir and not os.path.isabs(dir):
+            dir = pkg_resources.resource_filename(*dir.split(':'))
         return ScriptDirectory(
-                    config.get_main_option('script_location'),
+                    dir,
                     file_template = config.get_main_option(
                                         'file_template', 
                                         _default_file_template)