diff --git a/pkgs/build-support/rust/cargo-vendor/default.nix b/pkgs/build-support/rust/cargo-vendor/default.nix
index faeb6e03743..5d5e2b1d88b 100644
--- a/pkgs/build-support/rust/cargo-vendor/default.nix
+++ b/pkgs/build-support/rust/cargo-vendor/default.nix
@@ -1,10 +1,32 @@
-{ callPackage, fetchFromGitHub }:
+{ stdenv, callPackage, fetchFromGitHub, pkgconfig, openssl, curl, libssh2, cmake }:
+
+let
+  cargo-vendor-bootstrap = (callPackage ./cargo-vendor-bootstrap.nix {}).cargo_vendor_0_1_13.overrideAttrs (attrs: {
+    src = fetchFromGitHub {
+      owner = "alexcrichton";
+      repo = "cargo-vendor";
+      rev = "0.1.13";
+      sha256 = "0ljh2d65zpxp26a95b3czy5ai2z2dm87x7ndfdc1s0v1fsy69kn4";
+    };
+  });
+  buildRustPackage = callPackage ../. { cargo-vendor = cargo-vendor-bootstrap; };
+in
+buildRustPackage rec {
+  name = "cargo-vendor-${version}";
+  version = "0.1.16";

-(callPackage ./cargo-vendor.nix {}).cargo_vendor_0_1_13.overrideAttrs (attrs: {
   src = fetchFromGitHub {
     owner = "alexcrichton";
     repo = "cargo-vendor";
-    rev = "0.1.13";
-    sha256 = "0ljh2d65zpxp26a95b3czy5ai2z2dm87x7ndfdc1s0v1fsy69kn4";
+    rev = "${version}";
+    sha256 = "03pllm7y9k1sk8ch5rz6wlmj19k5niv32rn89fwsw0mfv0hcfs35";
   };
-})
+
+  cargoSha256 = "0g4p12hikmw4whdqkjamj5kbbwih0l3i67h728hjdb4q8phn6vvg";
+
+  buildInputs = [ openssl curl libssh2 ];
+
+  nativeBuildInputs = [ pkgconfig cmake ];
+
+  doCheck = false;
+}
diff --git a/pkgs/build-support/rust/default.nix b/pkgs/build-support/rust/default.nix
index 820989a7620..68654538d75 100644
--- a/pkgs/build-support/rust/default.nix
+++ b/pkgs/build-support/rust/default.nix
@@ -30,14 +30,19 @@ let
       }
     else null;

-  setupVendorDir = if cargoVendorDir == null
+  setupCargoConfig = if cargoVendorDir == null
     then ''
-      unpackFile "$cargoDeps"
-      cargoDepsCopy=$(stripHash $(basename $cargoDeps))
-      chmod -R +w "$cargoDepsCopy"
+      cp ${cargoDeps}/config .cargo/config
     ''
     else ''
-      cargoDepsCopy="$sourceRoot/${cargoVendorDir}"
+      cat >.cargo/config <<-EOF
+        [source.crates-io]
+        registry = 'https://github.com/rust-lang/crates.io-index'
+        replace-with = 'vendored-sources'
+
+        [source.vendored-sources]
+        directory = '$(pwd)/$sourceRoot/${cargoVendorDir}'
+      EOF
     '';

 in stdenv.mkDerivation (args // {
@@ -58,19 +63,8 @@ in stdenv.mkDerivation (args // {
   postUnpack = ''
     eval "$cargoDepsHook"

-    ${setupVendorDir}
-
     mkdir .cargo
-    cat >.cargo/config <<-EOF
-      [source.crates-io]
-      registry = 'https://github.com/rust-lang/crates.io-index'
-      replace-with = 'vendored-sources'
-
-      [source.vendored-sources]
-      directory = '$(pwd)/$cargoDepsCopy'
-    EOF
-
-    unset cargoDepsCopy
+    ${setupCargoConfig}

     export RUST_LOG=${logLevel}
   '' + (args.postUnpack or "");
diff --git a/pkgs/build-support/rust/fetchcargo.nix b/pkgs/build-support/rust/fetchcargo.nix
index 2670ed52864..91520009740 100644
--- a/pkgs/build-support/rust/fetchcargo.nix
+++ b/pkgs/build-support/rust/fetchcargo.nix
@@ -9,23 +9,32 @@ stdenv.mkDerivation {

   installPhase = ''
     if [[ ! -f Cargo.lock ]]; then
-        echo
-        echo "ERROR: The Cargo.lock file doesn't exist"
-        echo
-        echo "Cargo.lock is needed to make sure that cargoSha256 doesn't change"
-        echo "when the registry is updated."
-        echo
-
-        exit 1
+      echo
+      echo "ERROR: The Cargo.lock file doesn't exist"
+      echo
+      echo "Cargo.lock is needed to make sure that cargoSha256 doesn't change"
+      echo "when the registry is updated."
+      echo
+
+      exit 1
     fi

     export CARGO_HOME=$(mktemp -d cargo-home.XXX)

     ${cargoUpdateHook}

-    cargo vendor
+    cargo vendor > config
+
+    LINENUMBER=$(grep -rne "\[source.vendored-sources\]" config | cut -d ':' -f 1)
+    sed -i -e "$LINENUMBER,+1d;" config
+
+    cat <<EOF >> config
+    [source.vendored-sources]
+    directory = "$out"
+    EOF

     cp -ar vendor $out
+    cp config $out/config
   '';

   outputHashAlgo = "sha256";