diff --git a/configure b/configure
index fad3fdb..75d3e16 100755
--- a/configure
+++ b/configure
@@ -51,6 +51,121 @@
   write_to_bazelrc "build --action_env $1=\"$2\""
 }
 
+function python_path {
+  "$PYTHON_BIN_PATH" - <<END
+from __future__ import print_function
+import site
+import os
+
+try:
+  input = raw_input
+except NameError:
+  pass
+
+python_paths = []
+if os.getenv('PYTHONPATH') is not None:
+  python_paths = os.getenv('PYTHONPATH').split(':')
+try:
+  library_paths = site.getsitepackages()
+except AttributeError:
+ from distutils.sysconfig import get_python_lib
+ library_paths = [get_python_lib()]
+all_paths = set(python_paths + library_paths)
+
+paths = []
+for path in all_paths:
+  if os.path.isdir(path):
+    paths.append(path)
+
+print(",".join(paths))
+END
+}
+
+function setup_python {
+  ## Set up python-related environment settings:
+  while true; do
+    fromuser=""
+    if [ -z "$PYTHON_BIN_PATH" ]; then
+      default_python_bin_path=$(which python || which python3 || true)
+      read -p "Please specify the location of python. [Default is $default_python_bin_path]: " PYTHON_BIN_PATH
+      fromuser="1"
+      if [ -z "$PYTHON_BIN_PATH" ]; then
+        PYTHON_BIN_PATH=$default_python_bin_path
+      fi
+    fi
+    if [ -e "$PYTHON_BIN_PATH" ]; then
+      break
+    fi
+    echo "Invalid python path. ${PYTHON_BIN_PATH} cannot be found" 1>&2
+    if [ -z "$fromuser" ]; then
+      exit 1
+    fi
+    PYTHON_BIN_PATH=""
+    # Retry
+  done
+
+  if [ -z "$PYTHON_LIB_PATH" ]; then
+    # Split python_path into an array of paths, this allows path containing spaces
+    IFS=','
+    python_lib_path=($(python_path))
+    unset IFS
+
+    if [ 1 = "$USE_DEFAULT_PYTHON_LIB_PATH" ]; then
+      PYTHON_LIB_PATH=${python_lib_path[0]}
+      echo "Using python library path: $PYTHON_LIB_PATH"
+
+    else
+      echo "Found possible Python library paths:"
+      for x in "${python_lib_path[@]}"; do
+        echo "  $x"
+      done
+      set -- "${python_lib_path[@]}"
+      echo "Please input the desired Python library path to use.  Default is ["$1"]"
+      read b || true
+      if [ "$b" == "" ]; then
+        PYTHON_LIB_PATH=${python_lib_path[0]}
+        echo "Using python library path: $PYTHON_LIB_PATH"
+      else
+        PYTHON_LIB_PATH="$b"
+      fi
+    fi
+  fi
+
+  if [ ! -x "$PYTHON_BIN_PATH" ]  || [ -d "$PYTHON_BIN_PATH" ]; then
+    echo "PYTHON_BIN_PATH is not executable.  Is it the python binary?"
+    exit 1
+  fi
+
+  local python_major_version=$("${PYTHON_BIN_PATH}" -c 'from __future__ import print_function; import sys; print(sys.version_info[0]);')
+  if [ "$python_major_version" == "" ]; then
+    echo -e "\n\nERROR: Problem getting python version.  Is $PYTHON_BIN_PATH the correct python binary?"
+    exit 1
+  fi
+
+  # Convert python path to Windows style before writing into bazel.rc
+  if is_windows; then
+    PYTHON_BIN_PATH="$(cygpath -m "$PYTHON_BIN_PATH")"
+  fi
+
+  # Set-up env variables used by python_configure.bzl
+  write_action_env_to_bazelrc "PYTHON_BIN_PATH" "$PYTHON_BIN_PATH"
+  write_action_env_to_bazelrc "PYTHON_LIB_PATH" "$PYTHON_LIB_PATH"
+  write_to_bazelrc "build --define PYTHON_BIN_PATH=$PYTHON_BIN_PATH"
+  write_to_bazelrc "build --define PYTHON_LIB_PATH=$PYTHON_LIB_PATH"
+  write_to_bazelrc "build --force_python=py$python_major_version"
+  write_to_bazelrc "build --host_force_python=py$python_major_version"
+  write_to_bazelrc "build --python${python_major_version}_path=$PYTHON_BIN_PATH"
+  write_to_bazelrc "test --force_python=py$python_major_version"
+  write_to_bazelrc "test --host_force_python=py$python_major_version"
+  write_to_bazelrc "test --define PYTHON_BIN_PATH=$PYTHON_BIN_PATH"
+  write_to_bazelrc "test --define PYTHON_LIB_PATH=$PYTHON_LIB_PATH"
+  write_to_bazelrc "run --define PYTHON_BIN_PATH=$PYTHON_BIN_PATH"
+  write_to_bazelrc "run --define PYTHON_LIB_PATH=$PYTHON_LIB_PATH"
+
+  # Write tools/python_bin_path.sh
+  echo "export PYTHON_BIN_PATH=\"$PYTHON_BIN_PATH\"" > tools/python_bin_path.sh
+}
+
 # This file contains customized config settings.
 rm -f .tf_configure.bazelrc
 touch .tf_configure.bazelrc
@@ -65,30 +180,7 @@
   find ${MAKEFILE_DOWNLOAD_DIR} -type f -name '*BUILD' -delete
 fi
 
-## Set up python-related environment settings
-while true; do
-  fromuser=""
-  if [ -z "$PYTHON_BIN_PATH" ]; then
-    default_python_bin_path=$(which python || which python3  || true)
-    read -p "Please specify the location of python. [Default is $default_python_bin_path]: " PYTHON_BIN_PATH
-    fromuser="1"
-    if [ -z "$PYTHON_BIN_PATH" ]; then
-      PYTHON_BIN_PATH=$default_python_bin_path
-    fi
-  fi
-  if [ -e "$PYTHON_BIN_PATH" ]; then
-    break
-  fi
-  echo "Invalid python path. ${PYTHON_BIN_PATH} cannot be found" 1>&2
-  if [ -z "$fromuser" ]; then
-    exit 1
-  fi
-  PYTHON_BIN_PATH=""
-  # Retry
-done
-export PYTHON_BIN_PATH
-write_action_env_to_bazelrc "PYTHON_BIN_PATH" "$PYTHON_BIN_PATH"
-# TODO(ngiraldo): allow the user to optionally set PYTHON_INCLUDE_PATH and NUMPY_INCLUDE_PATH
+setup_python
 
 ## Set up MKL related environment settings
 if false; then # Disable building with MKL for now
@@ -263,9 +355,6 @@
   write_to_bazelrc 'build --define with_verbs_support=true'
 fi
 
-# Invoke python_config and set up symlinks to python includes
-./util/python/python_config.sh "$PYTHON_BIN_PATH"
-
 # Append CC optimization flags to bazel.rc
 echo >> tools/bazel.rc
 for opt in $CC_OPT_FLAGS; do
diff --git a/third_party/py/python_configure.bzl b/third_party/py/python_configure.bzl
index d49d4c1..460a9b5 100644
--- a/third_party/py/python_configure.bzl
+++ b/third_party/py/python_configure.bzl
@@ -6,11 +6,13 @@
   * `NUMPY_INCLUDE_PATH`: Location of Numpy libraries.
   * `PYTHON_BIN_PATH`: location of python binary.
   * `PYTHON_INCLUDE_PATH`: Location of python binaries.
+  * `PYTHON_LIB_PATH`: Location of python libraries.
 """
 
 _NUMPY_INCLUDE_PATH = "NUMPY_INCLUDE_PATH"
 _PYTHON_BIN_PATH = "PYTHON_BIN_PATH"
 _PYTHON_INCLUDE_PATH = "PYTHON_INCLUDE_PATH"
+_PYTHON_LIB_PATH = "PYTHON_LIB_PATH"
 
 
 def _tpl(repository_ctx, tpl, substitutions={}, out=None):
@@ -114,6 +116,14 @@
   )
 
 
+def _check_python_lib(repository_ctx, python_lib):
+  """Checks the python lib path."""
+  cmd = 'test -d "%s" -a -x "%s"' % (python_lib, python_lib)
+  result = repository_ctx.execute(["bash", "-c", cmd])
+  if result.return_code == 1:
+    _python_configure_fail("Invalid python library path:  %s" % python_lib)
+
+
 def _check_python_bin(repository_ctx, python_bin):
   """Checks the python bin path."""
   cmd =  '[[ -x "%s" ]] && [[ ! -d "%s" ]]' % (python_bin, python_bin)
@@ -151,28 +161,51 @@
   """Creates the repository containing files set up to build with Python."""
   python_include = None
   numpy_include = None
+  empty_config = False
   # If local checks were requested, the python and numpy include will be auto
   # detected on the host config (using _PYTHON_BIN_PATH).
   if repository_ctx.attr.local_checks:
     python_bin = _get_env_var(repository_ctx, _PYTHON_BIN_PATH)
     _check_python_bin(repository_ctx, python_bin)
-    python_include = _get_python_include(repository_ctx, python_bin)
-    numpy_include = _get_numpy_include(repository_ctx, python_bin) + '/numpy'
+    python_lib = _get_env_var(repository_ctx, _PYTHON_LIB_PATH, '')
+    if python_lib == '':
+      # If we could not find the python lib we will create an empty config that
+      # will allow non-compilation targets to build correctly (e.g., smoke
+      # tests).
+      empty_config = True
+      _python_configure_warning('PYTHON_LIB_PATH was not set;' +
+                                ' python setup cannot complete successfully.' +
+                                ' Please run ./configure.')
+    else:
+      _check_python_lib(repository_ctx, python_lib)
+      python_include = _get_python_include(repository_ctx, python_bin)
+      numpy_include = _get_numpy_include(repository_ctx, python_bin) + '/numpy'
   else:
     # Otherwise, we assume user provides all paths (via ENV or attrs)
     python_include = _get_env_var(repository_ctx, _PYTHON_INCLUDE_PATH,
                                   repository_ctx.attr.python_include)
     numpy_include = _get_env_var(repository_ctx, _NUMPY_INCLUDE_PATH,
                                  repository_ctx.attr.numpy_include) + '/numpy'
-
-  python_include_rule = _symlink_genrule_for_dir(
-      repository_ctx, python_include, 'python_include', 'python_include')
-  numpy_include_rule = _symlink_genrule_for_dir(
-      repository_ctx, numpy_include, 'numpy_include/numpy', 'numpy_include')
-  _tpl(repository_ctx, "BUILD", {
-      "%{PYTHON_INCLUDE_GENRULE}": python_include_rule,
-      "%{NUMPY_INCLUDE_GENRULE}": numpy_include_rule,
-  })
+  if empty_config:
+    _tpl(repository_ctx, "BUILD", {
+        "%{PYTHON_INCLUDE_GENRULE}": ('filegroup(\n' +
+                                      '    name = "python_include",\n' +
+                                      '    srcs = [],\n' +
+                                      ')\n'),
+        "%{NUMPY_INCLUDE_GENRULE}": ('filegroup(\n' +
+                                      '    name = "numpy_include",\n' +
+                                      '    srcs = [],\n' +
+                                      ')\n'),
+    })
+  else:
+    python_include_rule = _symlink_genrule_for_dir(
+        repository_ctx, python_include, 'python_include', 'python_include')
+    numpy_include_rule = _symlink_genrule_for_dir(
+        repository_ctx, numpy_include, 'numpy_include/numpy', 'numpy_include')
+    _tpl(repository_ctx, "BUILD", {
+        "%{PYTHON_INCLUDE_GENRULE}": python_include_rule,
+        "%{NUMPY_INCLUDE_GENRULE}": numpy_include_rule,
+    })
 
 
 def _python_autoconf_impl(repository_ctx):
@@ -190,6 +223,7 @@
     environ = [
         _PYTHON_BIN_PATH,
         _PYTHON_INCLUDE_PATH,
+        _PYTHON_LIB_PATH,
         _NUMPY_INCLUDE_PATH,
     ],
 )