diff --git a/Makefile b/Makefile
index 5cae2cb..f4abbaa 100644
--- a/Makefile
+++ b/Makefile
@@ -8,6 +8,12 @@ install:
 	$(MAKE) -C $(PYP_DIR) install
 	$(MAKE) -C $(EXT_DIR) install
 
-testinstalled:
-	$(MAKE) -C $(PYP_DIR) testinstalled
-	$(MAKE) -C $(EXT_DIR) installcheck
+test:
+	$(MAKE) -C $(PYP_DIR) test
+	$(MAKE) -C $(EXT_DIR) test
+
+release: install
+	$(MAKE) -C $(EXT_DIR) release
+
+deploy:
+	 echo 'not yet implemented'
diff --git a/README.md b/README.md
index c9dd529..83d71bb 100644
--- a/README.md
+++ b/README.md
@@ -40,7 +40,14 @@ Update local installation with `sudo make install`
 
 Run the tests with `PGUSER=postgres make test`
 
-Update extension in working database with
+The commands mentioned, executed from the top directory,
+install and test both the Pyhton package and the PostgreSQL extension.
+
+When developing the Pyhon package, it can be
+installed and tested in its own from the `src/pg` directory with the same commands.
+
+When a new development extension has beeen installed it is available
+in PostgreSQL; update extension in any specific database with
 
 * `ALTER EXTENSION crankshaft VERSION TO 'current';`
   `ALTER EXTENSION crankshaft VERSION TO 'dev';`
diff --git a/release/.gitignore b/release/.gitignore
new file mode 100644
index 0000000..e69de29
diff --git a/src/pg/Makefile b/src/pg/Makefile
index ed65eba..28279ee 100644
--- a/src/pg/Makefile
+++ b/src/pg/Makefile
@@ -16,7 +16,7 @@ DATA         = $(EXTENSION)--dev.sql \
 SOURCES_DATA_DIR = sql
 SOURCES_DATA = $(wildcard $(SOURCES_DATA_DIR)/*.sql)
 
-VIRTUALENV_PATH = $(realpath ../py/)
+VIRTUALENV_PATH = $(realpath ../py/environment)
 ESC_VIRVIRTUALENV_PATH = $(subst /,\/,$(VIRTUALENV_PATH))
 
 REPLACEMENTS = -e 's/@@VERSION@@/$(EXTVERSION)/g' \
@@ -41,8 +41,26 @@ all: $(DATA)
 
 EXTVERSION   = $(shell grep default_version $(EXTENSION).control | sed -e "s/default_version[[:space:]]*=[[:space:]]*'\([^']*\)'/\1/")
 
-../release/$(EXTENSION).control: $(EXTENSION).control
+RELEASED_PACKAGE = crankshaft_$(subst .,_,$(EXTVERSION))
+
+RELEASE_REPLACEMENTS = -e 's/import\scrankshaft/import $(RELEASED_PACKAGE)/g' \
+                       -e 's/from\scrankshaft/from $(RELEASED_PACKAGE)/g'
+
+../../release/$(EXTENSION).control: $(EXTENSION).control
 	cp $< $@
 
-release: ../release/$(EXTENSION).control
-	cp $(EXTENSION)--dev.sql $(EXTENSION)--$(EXTVERSION).sql
+release: ../../release/$(EXTENSION).control
+	# ALTERNATIVE: use release virtualenv; copy here files from src replacing VIRTUALENV_PATH
+	$(SED) $(RELEASE_REPLACEMENTS) $(EXTENSION)--dev.sql > ../../release/$(EXTENSION)--$(EXTVERSION).sql
+	cp -r ../py/crankshaft ../../release/$(RELEASED_PACKAGE)
+	$(SED) -i -e 's/name='"'"'crankshaft'"'"'/name='"'"'$(RELEASED_PACKAGE)'"'"'/g'  ../../release/$(RELEASED_PACKAGE)/setup.py
+
+install_release:
+	$(INSTALL_DATA) ../../release/$(EXTENSION).control '$(DESTDIR)$(datadir)/extension/'
+	$(INSTALL_DATA) ../../release/*.sql '$(DESTDIR)$(datadir)/extension/'
+	# virtualenv --system-site-packages ../py/dev
+	../py/environment/bin/pip install -I -U ../../release/$(RELEASED_PACKAGE)
+	../py/environment/bin/pip install -I nose
+
+test: export PGUSER=postgres
+test: installcheck
diff --git a/src/pg/sql/02_py.sql b/src/pg/sql/02_py.sql
index a233a0a..b940fe5 100644
--- a/src/pg/sql/02_py.sql
+++ b/src/pg/sql/02_py.sql
@@ -1,4 +1,4 @@
-CREATE OR REPLACE FUNCTION _cdb_crankshaft_virtualenvs_path()
+CREATE OR REPLACE FUNCTION _cdb_crankshaft_virtualenv_path()
 RETURNS text
 AS $$
   BEGIN
@@ -14,9 +14,7 @@ AS $$
     import os
     # plpy.notice('%',str(os.environ))
     # activate virtualenv
-    crankshaft_version = plpy.execute('SELECT cdb_crankshaft.cdb_crankshaft_internal_version()')[0]['cdb_crankshaft_internal_version']
-    base_path = plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_virtualenvs_path()')[0]['_cdb_crankshaft_virtualenvs_path']
-    default_venv_path = os.path.join(base_path, crankshaft_version)
+    default_venv_path = plpy.execute('SELECT cdb_crankshaft._cdb_crankshaft_virtualenv_path()')[0]['_cdb_crankshaft_virtualenv_path']
     venv_path =  os.environ.get('CRANKSHAFT_VENV', default_venv_path)
     activate_path = venv_path + '/bin/activate_this.py'
     exec(open(activate_path).read(), dict(__file__=activate_path))
diff --git a/src/py/.gitignore b/src/py/.gitignore
index fb50fe5..98a71cf 100644
--- a/src/py/.gitignore
+++ b/src/py/.gitignore
@@ -1,2 +1,2 @@
 *.pyc
-dev/
+environment/
diff --git a/src/py/Makefile b/src/py/Makefile
index 16be269..51c568f 100644
--- a/src/py/Makefile
+++ b/src/py/Makefile
@@ -1,9 +1,9 @@
 # Install the package locally for development
 install:
-	virtualenv --system-site-packages dev
-	./dev/bin/pip install -I ./crankshaft
-	./dev/bin/pip install -I nose
+	virtualenv --system-site-packages environment
+	./environment/bin/pip install -I -U ./crankshaft
+	./environment/bin/pip install -I nose
 
 # Test develpment install
-testinstalled:
-	./dev/bin/nosetests crankshaft/test/
+test:
+	./environment/bin/nosetests crankshaft/test/