diff --git a/docs/history.txt b/docs/history.txt
index ecffb60..43d2e6c 100644
--- a/docs/history.txt
+++ b/docs/history.txt
@@ -21,6 +21,11 @@ Changelog items can list SVN revision rNUMBER and bugzilla bug NUMBER.
 	  sector is given (sys X: bootfile.bin)
 
 + Changes Bart
+	* r1569 kernel/{config.c,kernel.asm,init-mod.h,globals.h}:
+	  Allocate bigger chunk of memory for INSTALL for __WATCOMC__
+	  because the memory layout is different from other compilers.
+	  Fixes issues mentioned by Bret Johnson and Christian Masloch
+	  in freedos-user/freedos-kernel.
 	* r1568 kernel/asmsupt.asm, mkfiles/owlinux.mak: Make sure the
 	  DOS native and Linux cross-builds produce identical binaries.
 	* r1567	drivers/rdpcclk.asm,kernel/{asmsupt,entry,irqstack,kernel,
diff --git a/kernel/config.c b/kernel/config.c
index 50ff84c..55fc403 100644
--- a/kernel/config.c
+++ b/kernel/config.c
@@ -2386,7 +2386,11 @@ VOID DoInstall(void)
   */
 
   set_strategy(LAST_FIT);
-  installMemory = allocmem(((unsigned)_init_end + ebda_size + 15) / 16);
+  installMemory = ((unsigned)_init_end + ebda_size + 15) / 16;
+#ifdef __WATCOMC__
+  installMemory += (_InitTextEnd - _InitTextStart + 15) / 16;
+#endif
+  installMemory = allocmem(installMemory);
 
   InstallPrintf(("allocated memory at %x\n",installMemory));
 
diff --git a/kernel/globals.h b/kernel/globals.h
index 55c0ef7..e5720ba 100644
--- a/kernel/globals.h
+++ b/kernel/globals.h
@@ -165,7 +165,6 @@ FAR ASM clk_dev,                    /* Clock device driver                  */
 extern COUNT *error_tos,        /* error stack                          */
   disk_api_tos,                 /* API handler stack - disk fns         */
   char_api_tos;                 /* API handler stack - char fns         */
-extern BYTE FAR _InitTextStart; /* first available byte of ram          */
 extern BYTE FAR _HMATextAvailable,      /* first byte of available CODE area    */
   FAR _HMATextStart[],          /* first byte of HMAable CODE area      */
   FAR _HMATextEnd[];            /* and the last byte of it              */
diff --git a/kernel/init-mod.h b/kernel/init-mod.h
index 3007569..9563e13 100644
--- a/kernel/init-mod.h
+++ b/kernel/init-mod.h
@@ -259,7 +259,8 @@ extern struct lol ASM FAR DATASTART;
 extern BYTE DOSFAR ASM _HMATextAvailable,    /* first byte of available CODE area    */
   FAR ASM _HMATextStart[],          /* first byte of HMAable CODE area      */
   FAR ASM _HMATextEnd[], DOSFAR ASM break_ena;  /* break enabled flag                   */
-extern BYTE DOSFAR _InitTextStart,       /* first available byte of ram          */
+extern BYTE DOSFAR ASM _InitTextStart[],     /* first available byte of ram          */
+  DOSFAR ASM _InitTextEnd[],
   DOSFAR ReturnAnyDosVersionExpected,
   DOSFAR ASM HaltCpuWhileIdle;
 
diff --git a/kernel/kernel.asm b/kernel/kernel.asm
index 210a679..9277f88 100644
--- a/kernel/kernel.asm
+++ b/kernel/kernel.asm
@@ -771,6 +771,9 @@ segment INIT_TEXT_START
                 global  __InitTextStart
 __InitTextStart:                    ; and c version
 
+segment INIT_TEXT_END
+                global  __InitTextEnd
+__InitTextEnd:                      ; and c version
 
 ;
 ; start end end of HMA area