diff --git a/setup.py b/setup.py
index f3d07f4c..842107e5 100755
--- a/setup.py
+++ b/setup.py
@@ -84,7 +84,7 @@ setup(name='Terminator',
                   ('share/icons/hicolor/24x24/apps', glob.glob('data/icons/24x24/apps/*.png')),
                   ('share/icons/hicolor/48x48/apps', glob.glob('data/icons/48x48/apps/*.png')),
                  ],
-      py_modules=['terminatorconfig', 'terminatorencoding'],
+      packages=['terminatorlib'],
       cmdclass={'build': BuildData, 'install_data': InstallData}
      )
 
diff --git a/terminator b/terminator
index aa1c8074..89815c45 100755
--- a/terminator
+++ b/terminator
@@ -36,11 +36,11 @@ except:
 import pwd
 
 # import our configuration loader
-import terminatorconfig
-from terminatorconfig import dbg
+from terminatorlib import config
+from terminatorlib.config import dbg
 
 #import encoding list
-from terminatorencoding import TerminatorEncoding
+from terminatorlib.encoding import TerminatorEncoding
 
 # import gtk libs
 # check just in case anyone runs it on a non-gnome system.
@@ -632,17 +632,17 @@ class Terminator:
     self._fullscreen = False
     self.term_list = []
     stores = []
-    stores.append (terminatorconfig.TerminatorConfValuestoreRC ())
+    stores.append (config.TerminatorConfValuestoreRC ())
 
     try:
       import gconf
-      store = terminatorconfig.TerminatorConfValuestoreGConf ()
+      store = config.TerminatorConfValuestoreGConf ()
       store.set_reconfigure_callback (self.reconfigure_vtes)
       stores.append (store)
     except:
       pass
 
-    self.conf = terminatorconfig.TerminatorConfig (stores)
+    self.conf = config.TerminatorConfig (stores)
 
     self.window = gtk.Window ()
     self.window.set_title (APP_NAME.capitalize())
diff --git a/terminatorlib/__init__.py b/terminatorlib/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/terminatorconfig.py b/terminatorlib/config.py
similarity index 100%
rename from terminatorconfig.py
rename to terminatorlib/config.py
diff --git a/terminatorencoding.py b/terminatorlib/encoding.py
similarity index 100%
rename from terminatorencoding.py
rename to terminatorlib/encoding.py