diff --git a/README.rst b/README.rst
index 7b305db0..733ad42b 100644
--- a/README.rst
+++ b/README.rst
@@ -88,9 +88,10 @@ you have to follow at least the following steps:
      DISTRO_FEATURES += "rauc"
 
 2. Add a ``rauc_%.bbappend`` in your device-specific (BSP) layer
-   that installs your RAUC system configuration file under
-   ``/etc/rauc/system.conf``. For information on how to write the RAUC
-   update file, please refer to the RAUC user documentation [1]_::
+   that installs your RAUC system configuration, so RAUC can find it
+   (in ``/etc/rauc/`` or ``/usr/lib/rauc/```).
+   For information on how to write the RAUC update file, please refer to
+   the RAUC user documentation [1]_::
 
      FILESEXTRAPATHS:prepend := "${THISDIR}/files:"
      SRC_URI:append := " file://system.conf"
diff --git a/recipes-core/rauc/files/system.conf b/recipes-core/rauc/files/system.conf
index a89a21fc..35c940c5 100644
--- a/recipes-core/rauc/files/system.conf
+++ b/recipes-core/rauc/files/system.conf
@@ -1,6 +1,6 @@
-## This is an example RAUC system configuration. This file will be installed
-## into /etc/rauc/system.conf on your target and describes your system from the
-## perspective of the RAUC update service.
+## This is an example RAUC system configuration. This file will be be looked up
+## in {/etc,/run,/usr/lib}/rauc/system.conf on your target and describes your
+## system from the perspective of the RAUC update service.
 ##
 ## Adapt and extend the below configuration to your needs and place it in the
 ## BSP layer of you project. Create a rauc .bbappend file that adds this file
diff --git a/recipes-core/rauc/rauc-target.inc b/recipes-core/rauc/rauc-target.inc
index 0bde7be5..379f966c 100644
--- a/recipes-core/rauc/rauc-target.inc
+++ b/recipes-core/rauc/rauc-target.inc
@@ -1,5 +1,6 @@
 RAUC_KEYRING_FILE ??= "ca.cert.pem"
 RAUC_KEYRING_URI ??= "file://${RAUC_KEYRING_FILE}"
+RAUC_CONF_DIR ??= "${sysconfdir}/rauc"
 
 RRECOMMENDS:${PN} = "squashfs-tools"
 
@@ -27,15 +28,15 @@ do_install () {
         if ! grep -q "^[^#]" ${WORKDIR}/system.conf; then
                 bbwarn "Please overwrite example system.conf with a project specific one!"
         fi
-        install -d ${D}${sysconfdir}/rauc
-        install -m 0644 ${WORKDIR}/system.conf ${D}${sysconfdir}/rauc/system.conf
+        install -d ${D}${RAUC_CONF_DIR}
+        install -m 0644 ${WORKDIR}/system.conf ${D}${RAUC_CONF_DIR}/system.conf
 
         # Warn if CA file was not overwritten
         if ! grep -q "^[^#]" ${WORKDIR}/${RAUC_KEYRING_FILE}; then
                 bbwarn "Please overwrite example ca.cert.pem with a project specific one, or set the RAUC_KEYRING_FILE variable with your file!"
         fi
-        install -d ${D}${sysconfdir}/rauc/
-        install -m 0644 ${WORKDIR}/${RAUC_KEYRING_FILE} ${D}${sysconfdir}/rauc/
+        install -d ${D}${RAUC_CONF_DIR}/
+        install -m 0644 ${WORKDIR}/${RAUC_KEYRING_FILE} ${D}${RAUC_CONF_DIR}/
 
         install -d ${D}${systemd_unitdir}/system/
         install -m 0644 ${WORKDIR}/rauc-mark-good.service ${D}${systemd_unitdir}/system/
@@ -45,6 +46,8 @@ do_install () {
         install -m 755 "${WORKDIR}/rauc-mark-good.init" "${D}${sysconfdir}/init.d/rauc-mark-good"
 }
 
+FILES:${PN} += "${RAUC_CONF_DIR}"
+
 PACKAGES =+ "${PN}-mark-good"
 
 # some magic to get the tool to interact with bootloader storage