diff --git a/flask_debugtoolbar/panels/versions.py b/flask_debugtoolbar/panels/versions.py
index deefd7a..9b44b7d 100644
--- a/flask_debugtoolbar/panels/versions.py
+++ b/flask_debugtoolbar/panels/versions.py
@@ -1,3 +1,4 @@
+import os
 from distutils.sysconfig import get_python_lib
 
 from flask import __version__ as flask_version
@@ -5,6 +6,16 @@ from flask_debugtoolbar.panels import DebugPanel
 
 _ = lambda x: x
 
+def relpath(location, python_lib):
+    location = os.path.normpath(location)
+    relative = os.path.relpath(location, python_lib)
+    if relative == os.path.curdir:
+        return ''
+    elif relative.startswith(os.path.pardir):
+        return location
+    return relative
+
+
 class VersionDebugPanel(DebugPanel):
     """
     Panel that displays the Flask version.
@@ -28,20 +39,13 @@ class VersionDebugPanel(DebugPanel):
         try:
             import pkg_resources
         except ImportError:
-            context = self.context.copy()
-            context.update({
-                'packages': []
-                })
+            packages = []
         else:
-            active_packages = pkg_resources.WorkingSet()
-            _pkgs = dict([(p.project_name, p) for p in active_packages])
-            packages = [_pkgs[key] for key in sorted(_pkgs.iterkeys())]
-            for package in packages:
-                package.develop_mode = not (package.location.lower().startswith(get_python_lib().lower()))
+            packages = sorted(pkg_resources.working_set,
+                              key=lambda p: p.project_name.lower())
 
-            context = self.context.copy()
-            context.update({
-                'packages': packages
-            })
-
-        return self.render('panels/versions.html', context)
\ No newline at end of file
+        return self.render('panels/versions.html', {
+            'packages': packages,
+            'python_lib': os.path.normpath(get_python_lib()),
+            'relpath': relpath,
+        })
diff --git a/flask_debugtoolbar/templates/panels/versions.html b/flask_debugtoolbar/templates/panels/versions.html
index 38c56f6..84ad20c 100644
--- a/flask_debugtoolbar/templates/panels/versions.html
+++ b/flask_debugtoolbar/templates/panels/versions.html
@@ -1,26 +1,31 @@
 <h4>Installed Packages</h4>
+
+<p>
+    Installation paths relative to:
+</p>
+<pre>
+{{ python_lib }}
+</pre>
+
 <table>
     <thead>
         <tr>
             <th>Package</th>
             <th>Version</th>
-            <th>Develop?</th>
             <th>Installed Path</th>
         </tr>
     </thead>
     <tbody>
         {% for package in packages %}
-            <tr class="{{ loop.cycle('flDebugOdd' 'flDebugEven') }}">
+            <tr class="{{ loop.cycle('flDebugOdd', 'flDebugEven') }}">
                 <td>{{ package.project_name }}</td>
                 <td>{{ package.version }}</td>
-                <td>{{ package.develop_mode }}</td>
-                <td>{{ package.location }}</td>
+                <td>{{ relpath(package.location, python_lib) }}</td>
             </tr>
         {% else %}
             <tr>
                 <td>setuptools</td>
                 <td>NOT INSTALLED</td>
-                <td>&nbsp;</td>
                 <td>Install setuptools to display installed packages and version information</td>
             </tr>
         {% endfor %}