diff --git a/Makefile b/Makefile
index b89257fe3804d37dc0fbb8b21259a616cc5406fa..73443f6cd42253fe57cbf613ef434ecefa514502 100644
--- a/Makefile
+++ b/Makefile
@@ -98,6 +98,7 @@ endif
 endif
 
 stage1 : $(GCC_LIB_DEP) check-packages
+	$(MAKE) -C utils mostlyclean
 	$(MAKE) -C utils/mkdependC boot
 	@case '${MFLAGS}' in *-[ik]*) x_on_err=0;; *-r*[ik]*) x_on_err=0;; *) x_on_err=1;; esac; \
 	for i in $(SUBDIRS_BUILD); do \
@@ -119,9 +120,23 @@ stage1 : $(GCC_LIB_DEP) check-packages
 	$(MAKE) -C libraries boot
 	$(MAKE) -C libraries all
 
+# When making distributions (i.e., whether with binary-dist or using the 
+# vanilla install target to create an installer package), we can have problems
+# if some things (e.g. ghc-pkg) are compiled with the bootstrapping compiler 
+# and some (e.g. the stage 2 compiler) with the stage1 compiler. See #1860 for
+# an example.  Thus, we explicitly build a second version with the stage 1 
+# compiler of all utils that get installed and of all extra support binaries
+# includes in binary dists.
 stage2 : check-packages
+	$(MAKE) -C utils mostlyclean
+	$(MAKE) -C utils stage=2
 	$(MAKE) -C compiler boot stage=2
 	$(MAKE) -C compiler stage=2
+	$(RM) -f libraries/ifBuildable/ifBuildable
+	$(MAKE) -C libraries stage=2 ifBuildable/ifBuildable
+	$(RM) -f libraries/installPackage/installPackage
+	$(MAKE) -C libraries stage=2 installPackage/installPackage
+
 
 stage3 : check-packages
 	$(MAKE) -C compiler boot stage=3
@@ -259,21 +274,6 @@ binary-dist::
 	-rm -rf $(BIN_DIST_DIR)
 	-$(RM) $(BIN_DIST_TARBALL)
 
-# When making bindists, we can have problems if some things (e.g. ghc-pkg)
-# are compiled with the bootstrapping compiler and some (e.g. the stage 2
-# compiler) with the stage1 compiler. See #1860 for an example.
-# Thus we rebuild the utils with stage 1 here. This is a bit unpleasant,
-# as binary-dist really shouldn't actually build anything, but it works.
-# We need to do the same for utilities used during library package installation.
-binary-dist::
-	$(MAKE) -C utils clean
-	$(MAKE) -C utils UseStage1=YES boot
-	$(MAKE) -C utils UseStage1=YES
-	$(RM) -f libraries/ifBuildable/ifBuildable
-	$(MAKE) -C libraries UseStage1=YES ifBuildable/ifBuildable
-	$(RM) -f libraries/installPackage/installPackage
-	$(MAKE) -C libraries UseStage1=YES installPackage/installPackage
-
 ifeq "$(TARGETPLATFORM)" "i386-unknown-mingw32"
 
 binary-dist::
diff --git a/libraries/Makefile b/libraries/Makefile
index 60418f147361746930bfd5b6febf3fb664585886..9a8cd407491aaddfe5b4c9fc0f44650e518a6e10 100644
--- a/libraries/Makefile
+++ b/libraries/Makefile
@@ -173,7 +173,7 @@ installPackage/installPackage: installPackage.hs $(BOOTSTRAP_STAMPS)
 	-$(RM) -rf installPackage
 	mkdir installPackage
 	$(CP) installPackage.hs installPackage/
-ifeq "$(UseStage1)" "YES"
+ifeq "$(stage)" "2"
 	cd installPackage && ../$(HC) -Wall -cpp \
 	                            --make installPackage -o installPackage \
 	                            $(BOOTSTRAP_INC_1_UP)
@@ -190,7 +190,7 @@ ifBuildable/ifBuildable: ifBuildable.hs
 	-$(RM) -rf ifBuildable
 	mkdir ifBuildable
 	$(CP) ifBuildable.hs ifBuildable/
-ifeq "$(UseStage1)" "YES"
+ifeq "$(stage)" "2"
 	cd ifBuildable && ../$(HC) -Wall --make ifBuildable -o ifBuildable
 else
 	cd ifBuildable && $(GHC) -Wall --make ifBuildable -o ifBuildable
diff --git a/mk/config.mk.in b/mk/config.mk.in
index fc26319e81ea93730788b1cf38d1b807beaeb040..65d3aaa91c7567226a069f879f10714a9bb744da 100644
--- a/mk/config.mk.in
+++ b/mk/config.mk.in
@@ -864,6 +864,9 @@ GHC_STAGE3 	= $(GHC_COMPILER_DIR)/stage3/ghc-inplace -no-user-package-conf
 # installed for this GHC version.  They are bound to be incompatible
 # with the packages we built in the tree.
 
+ifeq "$(stage)" "2"
+  UseStage1 = YES
+endif
 ifneq "$(findstring YES, $(UseStage1) $(BootingFromHc))" ""
 
 # We are using the stage1 compiler to compile Haskell code, set up
diff --git a/utils/ghc-pkg/Makefile b/utils/ghc-pkg/Makefile
index 9cb2a598e6072453cd9c37536d83e4da471d33a0..383524a6fdcc4b5a04264beff9b8385f43019606 100644
--- a/utils/ghc-pkg/Makefile
+++ b/utils/ghc-pkg/Makefile
@@ -35,9 +35,17 @@ INSTALL_PROGS    += $(HS_PROG)
 EXCLUDE_SRCS     += CRT_noglob.c
 NOGLOB_O          = CRT_noglob.o
 else
+
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
 HS_PROG           = ghc-pkg.bin
+else
+HS_PROG           = ghc-pkg-inplace.bin
+endif
 INSTALL_LIBEXECS += $(HS_PROG)
 NOGLOB_O	  =
+
 endif
 
 # -----------------------------------------------------------------------------
diff --git a/utils/hasktags/Makefile b/utils/hasktags/Makefile
index 471b339daa70c417e2e904844f42cfdc726cf9c7..aa81c130938cf0910648e1abd6263bda1c0b6ffa 100644
--- a/utils/hasktags/Makefile
+++ b/utils/hasktags/Makefile
@@ -1,7 +1,13 @@
 TOP=../..
 include $(TOP)/mk/boilerplate.mk
 
-HS_PROG = hasktags
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
+HS_PROG           = hasktags
+else
+HS_PROG           = hasktags-inplace
+endif
 
 CLEAN_FILES += Main.hi
 
diff --git a/utils/hpc/Makefile b/utils/hpc/Makefile
index 17065fa08156ec2ddfefd785e3bf0c471226d599..a59aa091fb1e7156091730a1f754ec26f3311e73 100644
--- a/utils/hpc/Makefile
+++ b/utils/hpc/Makefile
@@ -1,7 +1,13 @@
 TOP=../..
 include $(TOP)/mk/boilerplate.mk
 
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
 HS_PROG		= hpc$(exeext)
+else
+HS_PROG		= hpc-inplace$(exeext)
+endif
 INSTALL_PROGS  += $(HS_PROG)
 HPC_LIB         = $(TOP)/libraries/hpc
 
diff --git a/utils/hsc2hs/Makefile b/utils/hsc2hs/Makefile
index de8d64f06b85cbc5fc0986d5085210fe902f14e4..ca3fcd0220f5f0272fa20721ab7ef4c1b8ea6c26 100644
--- a/utils/hsc2hs/Makefile
+++ b/utils/hsc2hs/Makefile
@@ -13,7 +13,14 @@ include $(GHC_COMPAT_DIR)/compat.mk
 # we must also build with $(GhcHcOpts) here:
 SRC_HC_OPTS += $(GhcHcOpts) $(GhcStage1HcOpts)
 
-HS_PROG           = hsc2hs-bin
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
+HS_PROG           = hsc2hs.bin
+else
+HS_PROG           = hsc2hs-inplace.bin
+endif
+
 ifeq "$(HOSTPLATFORM)" "i386-unknown-mingw32"
 HS_PROG           = hsc2hs$(exeext)
 endif
diff --git a/utils/pwd/Makefile b/utils/pwd/Makefile
index f8fea4542a2b74b55b9c6dc30164f946c95966d4..c753ae889f1d806a4677695fa4a59c593465b324 100644
--- a/utils/pwd/Makefile
+++ b/utils/pwd/Makefile
@@ -1,7 +1,13 @@
 TOP=../..
 include $(TOP)/mk/boilerplate.mk
 
-HS_PROG=pwd
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
+HS_PROG           = pwd
+else
+HS_PROG           = pwd-inplace
+endif
 
 binary-dist:
 	$(INSTALL_DIR)                      $(BIN_DIST_DIR)/utils/pwd
diff --git a/utils/runghc/Makefile b/utils/runghc/Makefile
index a7303f97d74d81aacac1dbd20a6e384c487ada31..654ffad6dccb8abeb39b9cf707e9a0d445a6197b 100644
--- a/utils/runghc/Makefile
+++ b/utils/runghc/Makefile
@@ -1,7 +1,13 @@
 TOP=../..
 include $(TOP)/mk/boilerplate.mk
 
-HS_PROG		= runghc$(exeext)
+# We have two version: the inplace version compiled by the bootstrap compiler
+#   and the install version compiled by the stage 1 compiler
+ifeq "$(stage)" "2"
+HS_PROG           = runghc$(exeext)
+else
+HS_PROG           = runghc-inplace$(exeext)
+endif
 INSTALL_PROGS   += $(HS_PROG)
 
 UseGhcForCc = YES