diff --git a/Config.in b/Config.in
index c5c8aa822..55f5fd81a 100644
--- a/Config.in
+++ b/Config.in
@@ -475,7 +475,7 @@ config BR2_PREFER_STATIC_LIB
 
 config BR2_PACKAGE_OVERRIDE_FILE
 	string "location of a package override file"
-	default "$(TOPDIR)/local.mk"
+	default "$(CONFIG_DIR)/local.mk"
 	help
 	  A package override file is a short makefile that contains
 	  variable definitions of the form <pkg>_OVERRIDE_SRCDIR,