diff --git a/README b/README
index 94154f7b..c4da2fd2 100644
--- a/README
+++ b/README
@@ -10,7 +10,7 @@ For the examples: see the folder demos/
 HOW TO CREATE THE WAF SCRIPT
 ----------------------------
 
-Python 2.6, 2.7, 3.0 or 3.1 is required to generate the waf script. Execute:
+Python 2.6, 2.7, 3.0, 3.1 or 3.2 is required to generate the waf script. Execute:
 $ ./waf-light configure build
 Or, if you have several python versions installed:
 $ python3 ./waf-light configure build
diff --git a/demos/c/wscript b/demos/c/wscript
index 8ac9b8bc..94dd7704 100644
--- a/demos/c/wscript
+++ b/demos/c/wscript
@@ -12,11 +12,10 @@ from waflib import Configure, Logs
 #Configure.autoconfig = True
 
 def options(opt):
-	opt.load('compiler_c')
-	opt.load('gnu_dirs')
+	opt.load('compiler_c gnu_dirs')
 
 def configure(conf):
-	conf.load('compiler_c')
+	conf.load('compiler_c gnu_dirs')
 	conf.check_cc(fragment="int main() { return 0; }\n")
 
 	try:
diff --git a/waflib/Tools/gnu_dirs.py b/waflib/Tools/gnu_dirs.py
index c9fbe5cf..ac9d836d 100644
--- a/waflib/Tools/gnu_dirs.py
+++ b/waflib/Tools/gnu_dirs.py
@@ -76,9 +76,13 @@ def configure(conf):
 		return getattr(Options.options, varname, '') or default
 
 	env = conf.env
-	conf.env.LIBDIR = conf.env.BINDIR = []
-	env['EXEC_PREFIX'] = get_param('EXEC_PREFIX', env['PREFIX'])
-	env['PACKAGE'] = getattr(Context.g_module, 'APPNAME', None) or env['PACKAGE']
+	env.LIBDIR = env.BINDIR = []
+	env.EXEC_PREFIX = get_param('EXEC_PREFIX', env.PREFIX)
+	corner_case = False
+	if str(env.PREFIX) == '/usr': # Issue 722, corner case
+		corner_case = True
+		env.PREFIX = ''
+	env.PACKAGE = getattr(Context.g_module, 'APPNAME', None) or env.PACKAGE
 
 	complete = False
 	iter = 0
@@ -92,6 +96,10 @@ def configure(conf):
 					env[name] = Utils.subst_vars(get_param(name, default).replace('/', os.sep), env)
 				except TypeError:
 					complete = False
+
+	if corner_case:
+		env.PREFIX = '/usr'
+
 	if not complete:
 		lst = [name for name, _, _ in _options if not env[name.upper()]]
 		raise conf.errors.WafError('Variable substitution failure %r' % lst)