diff --git a/notebook/lab/handlers.py b/notebook/lab/handlers.py
index d776e38ce..610e27b62 100644
--- a/notebook/lab/handlers.py
+++ b/notebook/lab/handlers.py
@@ -3,8 +3,9 @@
 # Copyright (c) Jupyter Development Team.
 # Distributed under the terms of the Modified BSD License.
 
+import os
 from tornado import web
-from ..base.handlers import IPythonHandler
+from ..base.handlers import IPythonHandler, AuthenticatedFileHandler
 
 
 class LabHandler(IPythonHandler):
@@ -18,12 +19,12 @@ class LabHandler(IPythonHandler):
             terminals_available=self.settings['terminals_available'],
             mathjax_url=self.mathjax_url))
 
-
 #-----------------------------------------------------------------------------
 # URL to handler mappings
 #-----------------------------------------------------------------------------
 
-
 default_handlers = [
     (r"/lab", LabHandler),
+    (r"/lab/build/(.*)", AuthenticatedFileHandler,
+        {'path': os.path.join(os.path.dirname(__file__), 'build')}),
     ]
diff --git a/notebook/static/lab/index.js b/notebook/lab/index.js
similarity index 100%
rename from notebook/static/lab/index.js
rename to notebook/lab/index.js
diff --git a/notebook/static/lab/package.json b/notebook/lab/package.json
similarity index 100%
rename from notebook/static/lab/package.json
rename to notebook/lab/package.json
diff --git a/notebook/static/lab/webpack.conf.js b/notebook/lab/webpack.conf.js
similarity index 93%
rename from notebook/static/lab/webpack.conf.js
rename to notebook/lab/webpack.conf.js
index 9538df3d5..a1d34cad0 100644
--- a/notebook/static/lab/webpack.conf.js
+++ b/notebook/lab/webpack.conf.js
@@ -7,8 +7,9 @@ var ContextReplacementPlugin = require("webpack/lib/ContextReplacementPlugin");
 module.exports = {
   entry: './index.js',
   output: {
-    path: './build',
-    filename: 'bundle.js'
+    path: __dirname + "/build",
+    filename: "bundle.js",
+    publicPath: "lab/build/"
   },
   node: {
     fs: "empty"
diff --git a/notebook/templates/lab.html b/notebook/templates/lab.html
index a94b96137..d7028a3c3 100644
--- a/notebook/templates/lab.html
+++ b/notebook/templates/lab.html
@@ -95,7 +95,7 @@
   "wsUrl": "{{ws_url| urlencode}}",
   "notebookPath": "{{notebook_path | urlencode}}"
 }</script>
-<script src="{{ static_url("lab/build/bundle.js") }}" type="text/javascript" charset="utf-8"></script>
+<script src="lab/build/bundle.js" type="text/javascript" charset="utf-8"></script>
 {% endblock %}
 
 </body>
diff --git a/setupbase.py b/setupbase.py
index bfe3c0f2a..97249d3bb 100644
--- a/setupbase.py
+++ b/setupbase.py
@@ -131,7 +131,7 @@ def find_package_data():
     ])
     
     # Add the Lab page contents
-    static_data.append(pjoin('static', 'lab', 'build', '*'))
+    static_data.append(pjoin('lab', 'build', '*'))
 
     components = pjoin("static", "components")
     # select the components we actually need to install
@@ -341,7 +341,7 @@ class JavascriptDependencies(Command):
     
     bower_dir = pjoin(static, 'components')
     node_modules = pjoin(repo_root, 'node_modules')
-    lab_dir = pjoin(repo_root, 'notebook', 'static', 'lab')
+    lab_dir = pjoin(repo_root, 'notebook', 'lab')
     
     def run(self):
         try: