diff --git a/functions b/functions
index 4343efae7..8aeb965f3 100644
--- a/functions
+++ b/functions
@@ -8,21 +8,22 @@
 #
 # - ``SCRIPT_DIR`` must be set to script path
 # - ``GEM_BIN_DIR`` must be set to Gem bin directory
+# - ``MODULES_DIR`` must be set to Puppet modules directory
 install_external() {
-  PUPPETFILE=${SCRIPT_DIR}/Puppetfile1 r10k -v DEBUG puppetfile install
+  r10k -v DEBUG puppetfile install --puppetfile ${SCRIPT_DIR}/Puppetfile1 --moduledir ${MODULES_DIR}
 }
 
 # Install Puppet OpenStack modules with zuul-cloner
 # Uses the following variables:
 #
-# - ``PUPPETFILE_DIR`` must be set to Puppet modules directory
+# - ``MODULES_DIR`` must be set to Puppet modules directory
 # - ``SCRIPT_DIR`` must be set to script path
 # - ``ZUUL_BRANCH`` must be set to Zuul branch. Fallback to 'master'.
 install_openstack() {
   cat > clonemap.yaml <<EOF
 clonemap:
   - name: '(.*?)/puppet-(.*)'
-    dest: '$PUPPETFILE_DIR/\2'
+    dest: '$MODULES_DIR/\2'
 EOF
 
   # Periodic jobs run without ref on master
@@ -39,25 +40,26 @@ EOF
 
   # Because openstack-integration can't be a class name.
   # https://projects.puppetlabs.com/issues/5268
-  mv $PUPPETFILE_DIR/openstack-integration $PUPPETFILE_DIR/openstack_integration
+  mv $MODULES_DIR/openstack-integration $MODULES_DIR/openstack_integration
 }
 
 # Install all Puppet modules with r10k
 # Uses the following variables:
 #
 # - ``SCRIPT_DIR`` must be set to script path
+# - ``MODULES_DIR`` must be set to Puppet modules directory
 install_all() {
   # When installing from local source, we want to install the current source
   # we're working from.
-  PUPPETFILE=${SCRIPT_DIR}/Puppetfile r10k -v DEBUG puppetfile install
-  cp -a ${SCRIPT_DIR} ${PUPPETFILE_DIR}/openstack_integration
+  r10k -v DEBUG puppetfile install --puppetfile ${SCRIPT_DIR}/Puppetfile --moduledir ${MODULES_DIR}
+  cp -a ${SCRIPT_DIR} ${MODULES_DIR}/openstack_integration
 }
 
 # Install Puppet OpenStack modules and dependencies by using
 # zuul-cloner or r10k.
 # Uses the following variables:
 #
-# - ``PUPPETFILE_DIR`` must be set to Puppet modules directory
+# - ``MODULES_DIR`` must be set to Puppet modules directory
 # - ``SCRIPT_DIR`` must be set to script path
 # - ``ZUUL_BRANCH`` must be set to Zuul branch
 install_modules() {
diff --git a/install_modules.sh b/install_modules.sh
index 02bf15282..8d5e370f0 100755
--- a/install_modules.sh
+++ b/install_modules.sh
@@ -18,7 +18,7 @@ if [ -e /opt/puppetlabs/bin/puppet ]; then
 fi
 
 export SCRIPT_DIR=$(cd `dirname $0` && pwd -P)
-export PUPPETFILE_DIR=${PUPPETFILE_DIR:-${PUPPET_BASE_PATH}/modules}
+export MODULES_DIR=${MODULES_DIR:-${PUPPET_BASE_PATH}/modules}
 source $SCRIPT_DIR/functions
 
 print_header 'Start (install_modules.sh)'
@@ -31,7 +31,7 @@ gem install puppet_forge -v '= 2.2.6' --verbose
 gem install r10k --no-ri --no-rdoc --verbose
 
 # make sure there is no puppet module pre-installed
-rm -rf "${PUPPETFILE_DIR:?}/"*
+rm -rf "${MODULES_DIR:?}/"*
 
 print_header 'Install Modules'
 install_modules
diff --git a/install_modules_unit.sh b/install_modules_unit.sh
index 55994b88c..f63efe70c 100755
--- a/install_modules_unit.sh
+++ b/install_modules_unit.sh
@@ -18,7 +18,7 @@ else
 fi
 
 export SCRIPT_DIR=$(cd `dirname $0` && pwd -P)
-export PUPPETFILE_DIR=${PUPPETFILE_DIR:-${PUPPET_BASE_PATH}/modules}
+export MODULES_DIR=${MODULES_DIR:-${PUPPET_BASE_PATH}/modules}
 source $SCRIPT_DIR/functions
 
 print_header 'Start (install_modules_unit.sh)'