diff --git a/packages/win32_inno/Makefile b/packages/win32_inno/Makefile
index 515dc161af572c85380fa54b24797f274b747a41..f8711f27a1a3554531c4d8f7236e237dfe0bab8b 100755
--- a/packages/win32_inno/Makefile
+++ b/packages/win32_inno/Makefile
@@ -153,6 +153,9 @@ $(PD_INNO_SETUP): $(PD_INNO_SETUP).in
 		sed 's/PD_VERSION/$(PD_VERSION)/g' | \
 		sed 's/PD_BUILD_VERSION/$(PD_BUILD_VERSION)/g' > \
 		$(PD_INNO_SETUP)
+# in incremental builds the lib directory may not exist, in that case we need
+# to edit the setup file to prevent an inno-setup error
+	test -d $(DESTDIR)$(libdir) || sed -i -e 's/^Source: build\\lib/;Source: build\\lib/' $(PD_INNO_SETUP)
 #	start $(PD_INNO_SETUP)