diff --git a/configure.ac b/configure.ac
index ce30bd72..ac02df8f 100644
--- a/configure.ac
+++ b/configure.ac
@@ -138,7 +138,6 @@ services/console/interface/memphis/Makefile
 services/console/interface/logviewer/Makefile
 services/console/interface/terminal/Makefile
 sugar/Makefile
-sugar/__installed__.py
 sugar/activity/Makefile
 sugar/chat/Makefile
 sugar/chat/sketchpad/Makefile
diff --git a/sugar/Makefile.am b/sugar/Makefile.am
index 93c07692..0642fbd8 100644
--- a/sugar/Makefile.am
+++ b/sugar/Makefile.am
@@ -3,7 +3,6 @@ SUBDIRS = activity chat clipboard graphics p2p presence datastore
 sugardir = $(pythondir)/sugar
 sugar_PYTHON =				\
 	__init__.py			\
-	__installed__.py		\
 	date.py				\
 	emulator.py			\
 	env.py				\
@@ -12,5 +11,3 @@ sugar_PYTHON =				\
 	simulator.py			\
 	TracebackUtils.py		\
 	util.py
-
-EXTRA_DIST = __uninstalled__.py
diff --git a/sugar/__installed__.py.in b/sugar/__installed__.py.in
deleted file mode 100644
index 415e0e1b..00000000
--- a/sugar/__installed__.py.in
+++ /dev/null
@@ -1,2 +0,0 @@
-sugar_data_dir = '@prefix@/share/sugar'
-sugar_shell_bin_dir = '@prefix@/bin'
diff --git a/sugar/__uninstalled__.py b/sugar/__uninstalled__.py
deleted file mode 100644
index 7dc2f384..00000000
--- a/sugar/__uninstalled__.py
+++ /dev/null
@@ -1,7 +0,0 @@
-import os
-
-_sourcedir = os.path.dirname(os.path.dirname(__file__))
-
-sugar_data_dir = os.path.join(_sourcedir, 'shell/data')
-sugar_services_dir = os.path.join(_sourcedir, 'services')
-sugar_shell_bin_dir = os.path.join(_sourcedir, 'shell')
diff --git a/sugar/env.py b/sugar/env.py
index d32c1cbe..65fd1fe5 100644
--- a/sugar/env.py
+++ b/sugar/env.py
@@ -16,13 +16,6 @@
 # Boston, MA 02111-1307, USA.
 
 import os
-import sys
-import pwd
-
-try:
-    from sugar.__uninstalled__ import *
-except ImportError:
-    from sugar.__installed__ import *
 
 def _get_prefix_path(base, path=None):
     if os.environ.has_key('SUGAR_PREFIX'):