This works properly

Makefile

@@ -0,0 +1,31 @@
+# watchman makefile
+VERSION=1.6.9
+
+# Please modify config.mk and not this
+sinclude config.mk
+
+.PHONY: clean install uninstall all
+
+build: rc
+
+all: build
+
+rc: rc.in
+	sed -r \
+		-e 's%@ETC@%$(ETC)%' \
+		rc.in > rc
+
+	chmod 750 $@
+
+clean:
+	rm rc
+
+install: build
+	install -dm755 $(BINDIR)
+	install -dm755 $(ETCDIR)
+
+	install -m750 rc $(BINDIR)/rc
+	install -m644 rc.conf $(ETCDIR)/rc.conf
+
+uninstall:
+	rm $(BINDIR)/rc

config.mk

@@ -0,0 +1,8 @@
+# Make config
+
+USR ?= /usr/local
+ETC ?= /etc
+BIN ?= $(USR)/bin
+
+BINDIR = $(DESTDIR)$(PREFIX)$(BIN)
+ETCDIR = $(DESTDIR)$(PREFIX)$(ETC)

rc.in

@@ -144,7 +144,7 @@ rc.modules() {
 }
 
 rc.main() {
-	source "/etc/rc.conf"
+	source "@ETC@/rc.conf"
 
 	action="${1:-boot}"
 
@@ -156,7 +156,6 @@ rc.main() {
 
 		poweroff|reboot|shutdown)
 			rc.shutdown
-			rc.halt
 		;;
 	esac
 }