diff --git a/m4macros/gsettings.m4 b/m4macros/gsettings.m4
index 329700d02..b68698980 100644
--- a/m4macros/gsettings.m4
+++ b/m4macros/gsettings.m4
@@ -28,7 +28,7 @@ AC_DEFUN([GLIB_GSETTINGS],
 mostlyclean-am: clean-gsettings-schemas
 
 %.gschema.valid: %.gschema.xml
-	$(AM_V_GEN) $(GLIB_COMPILE_SCHEMAS) --dry-run --schema-file=$^ && touch [$]@
+	$(AM_V_GEN) if test -f "$^"; then d=; else d="$(srcdir)/"; fi; $(GLIB_COMPILE_SCHEMAS) --dry-run --schema-file=$${d}$^ && touch [$]@
 
 all-am: $(gsettings_SCHEMAS:.xml=.valid)
 uninstall-am: uninstall-gsettings-schemas