diff --git a/CHANGES.md b/CHANGES.md
index e06e66b..9d4689c 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -29,6 +29,10 @@
     In the cases of 1. and 3., the build script or executable is
     expected to be in the config dir.
 
+    Additionally, the xmonad config binary and intermediate object files were
+    moved to the cache directory (only relevant if using XDG or
+    `XMONAD_CACHE_DIR`).
+
   * Change `ScreenDetail` to a newtype and make `RationalRect` strict in
     its contents.
 
diff --git a/INSTALL.md b/INSTALL.md
index 83e8c6b..a8dac86 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -356,13 +356,13 @@ exec xmonad
 in your `~/.xinitrc`, you would write
 
 ``` shell
-exec $HOME/.local/share/xmonad/xmonad-x86_64-linux
+exec $HOME/.cache/xmonad/xmonad-x86_64-linux
 ```
 
-The `~/.local/share` prefix is the `$XDG_DATA_DIR` directory.  Note that
+The `~/.cache` prefix is the `$XDG_CACHE_HOME` directory.  Note that
 if your xmonad configuration resides within `~/.xmonad`, then the
 executable will also be within that directory and not in
-`$XDG_DATA_DIR`.
+`$XDG_CACHE_HOME`.
 
 [XDG]: https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html
 [git]: https://git-scm.com/
diff --git a/src/XMonad/Core.hs b/src/XMonad/Core.hs
index 08b3dce..86f0a1a 100644
--- a/src/XMonad/Core.hs
+++ b/src/XMonad/Core.hs
@@ -480,8 +480,7 @@ runOnWorkspaces job = do
 -- the following purposes:
 --
 -- * @dataDir@: This directory is used by XMonad to store data files
--- such as the run-time state file and the configuration binary
--- generated by GHC.
+-- such as the run-time state file.
 --
 -- * @cfgDir@: This directory is where user configuration files are
 -- stored (e.g, the xmonad.hs file).  You may also create a @lib@
@@ -489,7 +488,9 @@ runOnWorkspaces job = do
 -- command will add it to the GHC include path.
 --
 -- * @cacheDir@: This directory is used to store temporary files that
--- can easily be recreated.  For example, the XPrompt history file.
+-- can easily be recreated such as the configuration binary and any
+-- intermediate object files generated by GHC.
+-- Also, the XPrompt history file goes here.
 --
 -- For how these directories are chosen, see 'getDirectories'.
 --
@@ -565,12 +566,17 @@ getXMonadDataDir :: X String
 getXMonadDataDir = asks (dataDir . directories)
 {-# DEPRECATED getXMonadDataDir "Use `asks (dataDir . directories)' instead." #-}
 
-binFileName, errFileName, stateFileName, srcFileName, libFileName :: Directories -> FilePath
-binFileName   Directories{ dataDir } = dataDir </> "xmonad-" <> arch <> "-" <> os
+binFileName, buildDirName :: Directories -> FilePath
+binFileName  Directories{ cacheDir } = cacheDir </> "xmonad-" <> arch <> "-" <> os
+buildDirName Directories{ cacheDir } = cacheDir </> "build-" <> arch <> "-" <> os
+
+errFileName, stateFileName :: Directories -> FilePath
 errFileName   Directories{ dataDir } = dataDir </> "xmonad.errors"
 stateFileName Directories{ dataDir } = dataDir </> "xmonad.state"
-srcFileName   Directories{  cfgDir } =  cfgDir </> "xmonad.hs"
-libFileName   Directories{  cfgDir } =  cfgDir </> "lib"
+
+srcFileName, libFileName :: Directories -> FilePath
+srcFileName Directories{ cfgDir } = cfgDir </> "xmonad.hs"
+libFileName Directories{ cfgDir } = cfgDir </> "lib"
 
 buildScriptFileName, stackYamlFileName :: Directories -> FilePath
 buildScriptFileName Directories{ cfgDir } = cfgDir </> "build"
@@ -664,6 +670,7 @@ compile dirs method =
               , "-fforce-recomp"
               , "-main-is", "main"
               , "-v0"
+              , "-outputdir", buildDirName dirs
               , "-o", binFileName dirs
               ]