diff --git a/GF.cabal b/GF.cabal
index d57f7c84c..8b68d1bb3 100644
--- a/GF.cabal
+++ b/GF.cabal
@@ -5,543 +5,6 @@ build-type: Simple
 license: GPL
 license-file: LICENSE
 synopsis: Grammatical Framework
-data-files:
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-    lib/prelude/Formal.gf
-    lib/prelude/HTML.gf
-    lib/prelude/Latex.gf
-    lib/prelude/Precedence.gf
-    lib/prelude/Predef.gf
-    lib/prelude/PredefAbs.gf
-    lib/prelude/PredefCnc.gf
-    lib/prelude/Prelude.gf
-    lib/resource/abstract/Adjective.gf
-    lib/resource/abstract/Adverb.gf
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-    lib/resource/abstract/Cat.gf
-    lib/resource/abstract/Common.gf
-    lib/resource/abstract/Conjunction.gf
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-    lib/resource/abstract/Grammar.gf
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-    lib/resource/abstract/Lang.gf
-    lib/resource/abstract/Lexicon.gf
-    lib/resource/abstract/Noun.gf
-    lib/resource/abstract/Numeral.gf
-    lib/resource/abstract/Phrase.gf
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-    lib/resource/abstract/Relative.gf
-    lib/resource/abstract/Sentence.gf
-    lib/resource/abstract/Structural.gf
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-    lib/resource/abstract/Verb.gf
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-    lib/resource/api/ConstructorsDan.gf
-    lib/resource/api/ConstructorsEng.gf
-    lib/resource/api/ConstructorsFin.gf
-    lib/resource/api/ConstructorsFre.gf
-    lib/resource/api/ConstructorsGer.gf
-    lib/resource/api/ConstructorsIta.gf
-    lib/resource/api/ConstructorsNor.gf
-    lib/resource/api/ConstructorsRus.gf
-    lib/resource/api/ConstructorsSpa.gf
-    lib/resource/api/ConstructorsSwe.gf
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-    lib/resource/api/SyntaxCat.gf
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-    lib/resource/api/SyntaxGer.gf
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-    lib/resource/arabic/NumeralAra.gf
-    lib/resource/arabic/OrthoAra.gf
-    lib/resource/arabic/ParadigmsAra.gf
-    lib/resource/arabic/PatternsAra.gf
-    lib/resource/arabic/PhraseAra.gf
-    lib/resource/arabic/QuestionAra.gf
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-    lib/resource/demo/ClauseGer.gf
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-    lib/resource/english/AdjectiveEng.gf
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-    lib/resource/swedish/ExtraSweAbs.gf
-    lib/resource/swedish/GrammarSwe.gf
-    lib/resource/swedish/IdiomSwe.gf
-    lib/resource/swedish/IrregSwe.gf
-    lib/resource/swedish/IrregSweAbs.gf
-    lib/resource/swedish/LangSwe.gf
-    lib/resource/swedish/LexiconSwe.gf
-    lib/resource/swedish/MorphoSwe.gf
-    lib/resource/swedish/NounSwe.gf
-    lib/resource/swedish/NumeralSwe.gf
-    lib/resource/swedish/ParadigmsSwe.gf
-    lib/resource/swedish/PhraseSwe.gf
-    lib/resource/swedish/QuestionSwe.gf
-    lib/resource/swedish/RelativeSwe.gf
-    lib/resource/swedish/ResSwe.gf
-    lib/resource/swedish/SentenceSwe.gf
-    lib/resource/swedish/StructuralSwe.gf
-    lib/resource/swedish/VerbSwe.gf
-    lib/resource/thai/AdjectiveTha.gf
-    lib/resource/thai/AdverbTha.gf
-    lib/resource/thai/AllTha.gf
-    lib/resource/thai/AllThaAbs.gf
-    lib/resource/thai/CatTha.gf
-    lib/resource/thai/ConjunctionTha.gf
-    lib/resource/thai/ExtraTha.gf
-    lib/resource/thai/GrammarTha.gf
-    lib/resource/thai/IdiomTha.gf
-    lib/resource/thai/IrregTha.gf
-    lib/resource/thai/LangTha.gf
-    lib/resource/thai/LexiconTha.gf
-    lib/resource/thai/MorphoTha.gf
-    lib/resource/thai/NounTha.gf
-    lib/resource/thai/NumeralTha.gf
-    lib/resource/thai/ParadigmsTha.gf
-    lib/resource/thai/PhraseTha.gf
-    lib/resource/thai/QuestionTha.gf
-    lib/resource/thai/RelativeTha.gf
-    lib/resource/thai/ResTha.gf
-    lib/resource/thai/SentenceTha.gf
-    lib/resource/thai/StringsTha.gf
-    lib/resource/thai/StructuralTha.gf
-    lib/resource/thai/VerbTha.gf
-    lib/LICENSE
 
 flag haskeline
   Description: Enable Haskeline in the shell
diff --git a/Makefile b/Makefile
index aa8b511ee..1f3c7516e 100644
--- a/Makefile
+++ b/Makefile
@@ -1,24 +1,23 @@
-.PHONY: all gf install doc clean sdist lib
+.PHONY: all build install doc clean sdist
 
-all: gf lib
+all: build
 
-dist/setup-config:
-	runghc Setup.lhs configure
+dist/setup-config: GF.cabal
+	chmod u+x next-lib/src/mkPresent
+	chmod u+x next-lib/src/mkMinimal
+	runghc Setup.hs configure
 
-gf: dist/setup-config
-	runghc Setup.lhs build
+build: dist/setup-config
+	runghc Setup.hs build
 
 install:
-	runghc Setup.lhs install
+	runghc Setup.hs install
 
 doc:
-	runghc Setup.lhs haddock
+	runghc Setup.hs haddock
 
 clean:
-	runghc Setup.lhs clean
+	runghc Setup.hs clean
 
 sdist:
-	runghc Setup.lhs sdist
-
-lib:
-	$(MAKE) -C lib/resource clean all
+	runghc Setup.hs sdist
diff --git a/Setup.hs b/Setup.hs
new file mode 100644
index 000000000..e08ce7479
--- /dev/null
+++ b/Setup.hs
@@ -0,0 +1,267 @@
+module Main where
+
+import Distribution.Simple
+import Distribution.Simple.LocalBuildInfo
+import Distribution.Simple.BuildPaths
+import Distribution.Simple.Utils
+import Distribution.Simple.Setup
+import Distribution.PackageDescription	
+import Control.Monad
+import Data.Maybe
+import System.Cmd
+import System.FilePath
+import System.Directory
+import System.Environment
+import System.Exit
+
+main :: IO ()
+main = defaultMainWithHooks simpleUserHooks{ preBuild =checkRGLArgs
+                                           , postBuild=buildRGL
+                                           , preInst  =checkRGLArgs
+                                           , postInst =installRGL
+                                           , sDistHook=sdistRGL
+                                           }
+
+--------------------------------------------------------
+-- Commands for building the Resource Grammar Library
+--------------------------------------------------------
+
+data Mode
+  = AllTenses
+  | Present
+  | Minimal
+  deriving Show
+
+data RGLCommand
+  = RGLCommand
+      { cmdName   :: String
+      , cmdIsDef  :: Bool
+      , cmdAction :: Mode -> [String] -> PackageDescription -> LocalBuildInfo -> IO ()
+      }
+
+rglCommands =
+  [ RGLCommand "lang"    True  $ \mode args pkg lbi -> do
+       mapM_ (gfc mode pkg lbi . lang) (optl langsLang args)
+       mapM_ (gfc mode pkg lbi . symbol) (optl langsAPI args)
+  , RGLCommand "compat"  True  $ \mode args pkg lbi -> do
+       mapM_ (gfc mode pkg lbi . compat) (optl langsCompat args)
+  , RGLCommand "api"     True  $ \mode args pkg lbi -> do
+       mapM_ (gfc mode pkg lbi . try) (optl langsAPI args)
+       mapM_ (gfc mode pkg lbi . symbolic) (optl langsAPI args)
+--  , RGLCommand "minimal" True  $ \pres args lbi -> do
+--       mapM_ (gfcmin lbi . syntax) (optl langsMinimal args)
+  , RGLCommand "pgf"     False $ \mode args pkg lbi -> do
+       let dir = getRGLBuildDir lbi mode
+       createDirectoryIfMissing True dir
+       run_gfc pkg lbi $ ["-s","--make","--name=langs","--parser=off",
+                          "--output-dir=" ++ dir]
+                         ++ [dir ++ "/Lang" ++ la ++ ".gfo" | (_,la) <- optl langsPGF args]
+  , RGLCommand "test"    False $ \mode args pkg lbi -> do
+       let dir = getRGLBuildDir lbi mode
+       let ls = optl langsTest args
+       createDirectoryIfMissing True dir
+       gf (treeb "Lang" ls) $ unwords [dir ++ "/Lang" ++ la ++ ".gfo" | (_,la) <- ls]
+       return ()
+  , RGLCommand "demo"    False $ \mode args pkg lbi -> do
+       let ls = optl langsDemo args
+       gf (demos "Demo" ls) $ unwords ["demo/Demo" ++ la ++ ".gf" | (_,la) <- ls]
+       return ()
+  , RGLCommand "parse"   False $ \mode args pkg lbi -> do
+       mapM_ (gfc mode pkg lbi . parse) (optl langsParse args)
+  ]
+  where
+    optl ls args = fromMaybe ls $ getOptLangs args
+
+--------------------------------------------------------
+
+checkRGLArgs args flags = do
+  let args' = filter (\arg -> not (arg == "present" ||
+                                   arg == "minimal" ||
+                                   take (length rgl_prefix) arg == rgl_prefix ||
+                                   take (length langs_prefix) arg == langs_prefix)) args
+  if null args'
+    then return emptyHookedBuildInfo
+    else die $ "Unrecognised flags: " ++ intercalate ", " args'
+
+buildRGL args flags pkg lbi = do
+  let cmds = getRGLCommands args
+  let mode = getOptMode args
+  mapM_ (\cmd -> cmdAction cmd mode args pkg lbi) cmds
+
+installRGL args flags pkg lbi = do
+  let mode = getOptMode args
+  let inst_gf_lib_dir = datadir (absoluteInstallDirs pkg lbi NoCopyDest) </> "lib"
+  copyAll mode (getRGLBuildDir lbi mode) (inst_gf_lib_dir </> getRGLBuildSubDir lbi mode)
+  where
+    copyAll mode from to = do
+      putStrLn $ "Installing [" ++ show mode ++ "] " ++ to
+      createDirectoryIfMissing True to
+      files <- fmap (drop 2) $ getDirectoryContents from
+      mapM_ (\file -> copyFile (from </> file) (to </> file)) files
+
+sdistRGL pkg mb_lbi hooks flags = do
+  paths <- getRGLFiles rgl_dir []
+  let pkg' = pkg{dataFiles=paths}
+  sDistHook simpleUserHooks pkg' mb_lbi hooks flags
+  where
+    getRGLFiles dir paths = do
+      files <- getDirectoryContents dir
+      foldM (processFile dir) paths [file | file <- files, file /= "." && file /= ".."]
+
+    processFile dir paths file = do
+      let path = dir </> file
+      print path
+      isFile <- doesFileExist path
+      if isFile
+        then if takeExtension file == ".gf" || file == "LICENSE"
+               then return (path : paths)
+               else return paths
+        else getRGLFiles path paths
+
+rgl_dir    = "next-lib" </> "src"
+
+-- the languages have long directory names and short ISO codes (3 letters)
+-- we also give the decodings for postprocessing linearizations, as long as grammars
+-- don't support all flags needed; they are used in tests
+ 
+langsCoding = [
+  (("arabic",   "Ara"),""),
+  (("bulgarian","Bul"),""),
+  (("catalan",  "Cat"),""),
+  (("danish",   "Dan"),""),
+  (("english",  "Eng"),""),
+  (("finnish",  "Fin"),""),
+  (("french",   "Fre"),""),
+  (("hindi",    "Hin"),"to_devanagari"),
+  (("german",   "Ger"),""),
+--  (("interlingua","Ina"),""),
+  (("italian",  "Ita"),""),
+  (("latin",    "Lat"),""),
+  (("norwegian","Nor"),""),
+  (("polish",   "Pol"),""),
+  (("romanian", "Ron"),""),
+  (("russian",  "Rus"),""),
+  (("spanish",  "Spa"),""),
+  (("swedish",  "Swe"),""), 
+  (("thai",     "Tha"),"to_thai"),
+  (("turkish",  "Tur"),"")
+  ]
+
+langs = map fst langsCoding
+
+-- languagues for which to compile Lang
+langsLang = langs `except` ["Ara","Lat","Pol","Ron","Tur"]
+
+-- languages for which to compile Try 
+langsAPI  = langsLang `except` ["Bul","Hin","Ina","Rus","Tha"]
+
+-- languages for which to run treebank test
+langsTest = langsLang `except` ["Ara","Bul","Cat","Hin","Rus","Spa","Tha"]
+
+-- languages for which to run demo test
+langsDemo = langsLang `except` ["Ara","Hin","Ina","Tha"]
+
+-- languages for which to compile parsing grammars
+langsParse = langs `only` ["Eng"]
+
+-- languages for which langs.pgf is built
+langsPGF = langsTest `only` ["Eng","Fre","Swe"]
+
+-- languages for which Compatibility exists (to be extended)
+langsCompat = langsLang `only` ["Cat","Eng","Fin","Fre","Ita","Spa","Swe"]
+
+treebankExx = "exx-resource.gft"
+treebankResults = "exx-resource.gftb"
+
+gfc mode pkg lbi file = do
+  let dir = getRGLBuildDir lbi mode
+      preproc = case mode of
+                  AllTenses -> ""
+                  Present   -> "-preproc="++(rgl_dir </> "mkPresent")
+                  Minimal   -> "-preproc="++(rgl_dir </> "mkMinimal")
+  createDirectoryIfMissing True dir
+  putStrLn $ "Compiling [" ++ show mode ++ "] " ++ file
+  run_gfc pkg lbi ["-s", preproc, "--gfo-dir="++dir, file]
+
+gf comm file = do
+  putStrLn $ "Reading " ++ file
+  let cmd = "echo \"" ++ comm ++ "\" | gf -s " ++ file
+  putStrLn cmd
+  system cmd
+
+treeb abstr ls = "rf -lines -tree -file=" ++ treebankExx ++ 
+        " | l -treebank " ++ unlexer abstr ls ++ " | wf -file=" ++ treebankResults
+
+demos abstr ls = "gr -number=100 | l -treebank " ++ unlexer abstr ls ++ 
+           " | ps -to_html | wf -file=resdemo.html"
+
+lang   (lla,la) = rgl_dir </> lla </> ("All"           ++ la ++ ".gf")
+compat (lla,la) = rgl_dir </> lla </> ("Compatibility" ++ la ++ ".gf")
+symbol (lla,la) = rgl_dir </> lla </> ("Symbol"        ++ la ++ ".gf")
+
+try    (lla,la) = rgl_dir </> "api" </> ("Try"    ++ la ++ ".gf")
+syntax (lla,la) = rgl_dir </> "api" </> ("Syntax" ++ la ++ ".gf")
+
+symbolic (lla,la) = rgl_dir </> "api"   </> ("Symbolic" ++ la ++ ".gf")
+parse    (lla,la) = rgl_dir </> "parse" </> ("Parse"    ++ la ++ ".gf")
+
+except ls es = filter (flip notElem es . snd) ls
+only   ls es = filter (flip elem es . snd) ls
+
+getOptMode args
+  | elem "present" args = Present
+  | elem "minimal" args = Minimal
+  | otherwise           = AllTenses
+
+-- list of languages overriding the definitions above
+getOptLangs args = case [ls | arg <- args, let (f,ls) = splitAt (length langs_prefix) arg, f==langs_prefix] of
+  ls:_ -> return $ findLangs $ seps ls
+  _    -> Nothing
+ where
+  seps = words . map (\c -> if c==',' then ' ' else c)
+  findLangs ls = [lang | lang@(_,la) <- langs, elem la ls]
+
+getRGLBuildSubDir lbi mode =
+  case mode of
+    AllTenses -> "alltenses"
+    Present   -> "present"
+    Minimal   -> "minimal"
+
+getRGLBuildDir lbi mode = buildDir lbi </> "rgl" </> getRGLBuildSubDir lbi mode
+
+getRGLCommands args =
+  let cmds0 = [cmd | arg <- args,
+                     let (prefix,name) = splitAt (length rgl_prefix) arg,
+                     prefix == rgl_prefix,
+                     cmd <- rglCommands,
+                     cmdName cmd == name]
+  in if null cmds0
+       then [cmd | cmd <- rglCommands, cmdIsDef cmd]
+       else cmds0
+
+langs_prefix = "langs="
+rgl_prefix = "rgl-"
+
+unlexer abstr ls = 
+  "-unlexer=\\\"" ++ unwords 
+      [abstr ++ la ++ "=" ++ unl | 
+        lla@(_,la) <- ls, let unl = unlex lla, not (null unl)] ++ 
+      "\\\""
+    where
+      unlex lla = maybe "" id $ lookup lla langsCoding
+
+-- | Runs the gf executable in compile mode with the given arguments.
+run_gfc :: PackageDescription -> LocalBuildInfo -> [String] -> IO ()
+run_gfc pkg lbi args = 
+    do let args' = ["-batch","-gf-lib-path="++rgl_dir] ++ filter (not . null) args ++ ["+RTS"] ++ rts_flags ++ ["-RTS"]
+       let exeName' = (exeName . head . executables) pkg
+           exeNameReal = exeName' <.> (if null $ takeExtension exeName' then exeExtension else "")
+           default_gf = buildDir lbi </> exeName' </> exeNameReal
+       putStrLn $ "Running: " ++ default_gf ++ " " ++ unwords (map showArg args')
+       e <- rawSystem default_gf args'
+       case e of
+         ExitSuccess   -> return ()
+         ExitFailure i -> die $ "gf exited with exit code: " ++ show i
+  where rts_flags = ["-K100M"]
+        showArg arg = "'" ++ arg ++ "'"
+
diff --git a/Setup.lhs b/Setup.lhs
deleted file mode 100644
index e2c31e7ca..000000000
--- a/Setup.lhs
+++ /dev/null
@@ -1,8 +0,0 @@
-#!/usr/bin/env runghc
-
-> module Main where
-
-> import Distribution.Simple
-
-> main :: IO ()
-> main = defaultMain