diff --git a/xlc/org.eclipse.cdt.managedbuilder.xlc.ui/src/org/eclipse/cdt/managedbuilder/xlc/ui/preferences/PreferenceInitializer.java b/xlc/org.eclipse.cdt.managedbuilder.xlc.ui/src/org/eclipse/cdt/managedbuilder/xlc/ui/preferences/PreferenceInitializer.java
index 2f6a8679b24..ec82d79444e 100644
--- a/xlc/org.eclipse.cdt.managedbuilder.xlc.ui/src/org/eclipse/cdt/managedbuilder/xlc/ui/preferences/PreferenceInitializer.java
+++ b/xlc/org.eclipse.cdt.managedbuilder.xlc.ui/src/org/eclipse/cdt/managedbuilder/xlc/ui/preferences/PreferenceInitializer.java
@@ -28,7 +28,7 @@ public class PreferenceInitializer extends AbstractPreferenceInitializer {
 	 */
 	public void initializeDefaultPreferences() {
 		IPreferenceStore store = XLCUIPlugin.getDefault().getPreferenceStore();
-		store.setDefault(PreferenceConstants.P_XL_COMPILER_ROOT, "/opt/ibmcmp");  //$NON-NLS-1$
+		store.setDefault(PreferenceConstants.P_XL_COMPILER_ROOT, "/usr/vacpp/bin");  //$NON-NLS-1$
 		store.setDefault(PreferenceConstants.P_XLC_COMPILER_VERSION, PreferenceConstants.P_XL_COMPILER_VERSION_8);
 	}