diff --git a/CMakeLists.txt b/CMakeLists.txt
index f1c81eb6f..4483be338 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -15,7 +15,7 @@ PROJECT(libgit2 C)
 CMAKE_MINIMUM_REQUIRED(VERSION 2.6)
 
 # Add find modules to the path
-SET(CMAKE_MODULE_PATH ${CMAKE_MODULE_PATH} "${CMAKE_SOURCE_DIR}/cmake/Modules/")
+SET(CMAKE_MODULE_PATH ${CMAKE_MODULE_PATH} "${CMAKE_CURRENT_LIST_DIR}/cmake/Modules/")
 
 # Build options
 #
@@ -202,8 +202,9 @@ IF (USE_ICONV)
 ENDIF()
 IF (ICONV_FOUND)
 	ADD_DEFINITIONS(-DGIT_USE_ICONV)
+	INCLUDE_DIRECTORIES(${ICONV_INCLUDE_DIR})
 	IF(ICONV_LIBRARIES MATCHES "libiconv")
-		SET(LIBGIT2_PC_LIBS "${LIBGIT2_PC_LIBS} -liconv")
+		SET(LIBGIT2_PC_LIBS "${LIBGIT2_PC_LIBS} ${ICONV_LIBRARIES}")
 	ELSE()
 		SET(LIBGIT2_PC_REQUIRES "${LIBGIT2_PC_REQUIRES} iconv")
 	ENDIF()
diff --git a/cmake/Modules/FindIconv.cmake b/cmake/Modules/FindIconv.cmake
index fb6d1e210..f1406c557 100644
--- a/cmake/Modules/FindIconv.cmake
+++ b/cmake/Modules/FindIconv.cmake
@@ -4,39 +4,40 @@
 # ICONV_FOUND - system has Iconv
 # ICONV_INCLUDE_DIR - the Iconv include directory
 # ICONV_LIBRARIES - Link these to use Iconv
-# ICONV_SECOND_ARGUMENT_IS_CONST - the second argument for iconv() is const
 #
 
-IF (ICONV_INCLUDE_DIR AND ICONV_LIBRARIES)
+IF(ICONV_INCLUDE_DIR AND ICONV_LIBRARIES)
 	# Already in cache, be silent
 	SET(ICONV_FIND_QUIETLY TRUE)
-ENDIF (ICONV_INCLUDE_DIR AND ICONV_LIBRARIES)
+ENDIF()
 
+FIND_PATH(ICONV_INCLUDE_DIR iconv.h PATHS /opt/local/include NO_DEFAULT_PATH)
 FIND_PATH(ICONV_INCLUDE_DIR iconv.h)
 
-FIND_LIBRARY(ICONV_LIBRARIES NAMES iconv libiconv libiconv-2 c PATH)
+FIND_LIBRARY(iconv_lib NAMES iconv libiconv libiconv-2 c NO_DEFAULT_PATH PATHS /opt/local/lib)
+FIND_LIBRARY(iconv_lib NAMES iconv libiconv libiconv-2 c)
 
-IF(ICONV_INCLUDE_DIR AND ICONV_LIBRARIES)
+IF(ICONV_INCLUDE_DIR AND iconv_lib)
 	 SET(ICONV_FOUND TRUE)
-ENDIF(ICONV_INCLUDE_DIR AND ICONV_LIBRARIES)
-
-set(CMAKE_REQUIRED_INCLUDES ${ICONV_INCLUDE_DIR})
-set(CMAKE_REQUIRED_LIBRARIES ${ICONV_LIBRARIES})
-set(CMAKE_REQUIRED_INCLUDES)
-set(CMAKE_REQUIRED_LIBRARIES)
+ENDIF()
 
 IF(ICONV_FOUND)
+	# split iconv into -L and -l linker options, so we can set them for pkg-config
+	GET_FILENAME_COMPONENT(iconv_path ${iconv_lib} PATH)
+	GET_FILENAME_COMPONENT(iconv_name ${iconv_lib} NAME_WE)
+	STRING(REGEX REPLACE "^lib" "" iconv_name ${iconv_name})
+	SET(ICONV_LIBRARIES -L${iconv_path} -l${iconv_name})
+
 	IF(NOT ICONV_FIND_QUIETLY)
 		MESSAGE(STATUS "Found Iconv: ${ICONV_LIBRARIES}")
 	ENDIF(NOT ICONV_FIND_QUIETLY)
-ELSE(ICONV_FOUND)
+ELSE()
 	IF(Iconv_FIND_REQUIRED)
 		MESSAGE(FATAL_ERROR "Could not find Iconv")
 	ENDIF(Iconv_FIND_REQUIRED)
-ENDIF(ICONV_FOUND)
+ENDIF()
 
 MARK_AS_ADVANCED(
 	ICONV_INCLUDE_DIR
 	ICONV_LIBRARIES
-	ICONV_SECOND_ARGUMENT_IS_CONST
 )