diff --git a/Library/Homebrew/global.rb b/Library/Homebrew/global.rb
index 95e4c9ded8..26975934e1 100644
--- a/Library/Homebrew/global.rb
+++ b/Library/Homebrew/global.rb
@@ -36,6 +36,7 @@ end
 
 HOMEBREW_PREFIX = (Pathname.getwd+__FILE__).dirname.parent.parent.cleanpath
 HOMEBREW_CELLAR = HOMEBREW_PREFIX+'Cellar'
+HOMEBREW_REPOSITORY = HOMEBREW_CELLAR.realpath.parent
 HOMEBREW_VERSION = 0.4
 HOMEBREW_WWW = 'http://bit.ly/Homebrew'
 
diff --git a/Library/Homebrew/update.rb b/Library/Homebrew/update.rb
index 0e1bcb91f0..09399fbde3 100644
--- a/Library/Homebrew/update.rb
+++ b/Library/Homebrew/update.rb
@@ -68,7 +68,7 @@ class RefreshBrew
   private
   
   def in_prefix
-    Dir.chdir(HOMEBREW_PREFIX) { yield }
+    Dir.chdir(HOMEBREW_REPOSITORY) { yield }
   end
   
   def execute(cmd)