diff --git a/Distribution/Client/Install.hs b/Distribution/Client/Install.hs
--- a/Distribution/Client/Install.hs
+++ b/Distribution/Client/Install.hs
@@ -1264,10 +1264,10 @@
 installLocalTarballPackage verbosity jobLimit pkgid
                            tarballPath distPref installPkg = do
   tmp <- getTemporaryDirectory
-  withTempDirectory verbosity tmp (display pkgid) $ \tmpDirPath ->
+  withTempDirectory verbosity tmp "cabal-tmp" $ \tmpDirPath ->
     onFailure UnpackFailed $ do
-      let relUnpackedPath = "."
-          absUnpackedPath = tmpDirPath
+      let relUnpackedPath = display pkgid
+          absUnpackedPath = tmpDirPath </> relUnpackedPath
           descFilePath = absUnpackedPath
                      </> display (packageName pkgid) <.> "cabal"
       withJobLimit jobLimit $ do
diff --git a/cabal-install.cabal b/cabal-install.cabal
--- a/cabal-install.cabal
+++ b/cabal-install.cabal
@@ -1,5 +1,5 @@
 Name:               cabal-install
-Version:            1.22.5.0
+Version:            1.22.6.0
 Synopsis:           The command-line interface for Cabal and Hackage.
 Description:
     The \'cabal\' command-line program simplifies the process of managing
diff --git a/changelog b/changelog
--- a/changelog
+++ b/changelog
@@ -1,4 +1,7 @@
 -*-change-log-*-
+1.22.6.0 Ryan Thomas <ryan@ryant.org> June 2015
+	* A fix for @ezyang's fix for #2502. (Mikhail Glushenkov)
+
 1.22.5.0 Ryan Thomas <ryan@ryant.org> June 2015
 	* Reduce temporary directory name length, fixes #2502. (Edward Z. Yang)