diff --git a/salt/version.py b/salt/version.py
index 6ecb63e5eb9..4e9c54db88f 100644
--- a/salt/version.py
+++ b/salt/version.py
@@ -358,25 +358,17 @@ def __get_version(version, version_info):
     import warnings
     import subprocess
 
-    try:
-        cwd = os.path.abspath(os.path.dirname(__file__))
-    except NameError:
-        # We're most likely being frozen and __file__ triggered this NameError
-        # Let's work around that
-        import inspect
-        cwd = os.path.abspath(
-            os.path.dirname(inspect.getsourcefile(__get_version))
-        )
-
-    if __file__ == 'setup.py':
+    if 'SETUP_DIRNAME' in globals():
         # This is from the exec() call in Salt's setup.py
+        cwd = SETUP_DIRNAME  # pylint: disable=E0602
         if not os.path.exists(os.path.join(cwd, '.git')):
             # This is not a Salt git checkout!!! Don't even try to parse...
             return version, version_info
-
-    elif not os.path.exists(os.path.join(os.path.dirname(cwd), '.git')):
-        # This is not a Salt git checkout!!! Don't even try to parse...
-        return version, version_info
+    else:
+        cwd = os.path.abspath(os.path.dirname(__file__))
+        if not os.path.exists(os.path.join(os.path.dirname(cwd), '.git')):
+            # This is not a Salt git checkout!!! Don't even try to parse...
+            return version, version_info
 
     try:
         kwargs = dict(
diff --git a/setup.py b/setup.py
index 224043f2093..233680f2b0a 100755
--- a/setup.py
+++ b/setup.py
@@ -33,6 +33,8 @@ except NameError:
 if SETUP_DIRNAME != '':
     os.chdir(SETUP_DIRNAME)
 
+SETUP_DIRNAME = os.path.abspath(SETUP_DIRNAME)
+
 BOOTSTRAP_SCRIPT_DISTRIBUTED_VERSION = os.environ.get(
     # The user can provide a different bootstrap-script version.
     # ATTENTION: A tag for that version MUST exist