diff --git a/.gitlab-ci.yml b/.gitlab-ci.yml
index 0129a27b144a80e7acb215e306fe72bf7da26ec4..e04655be7bff5cce01c2e404537621b4c83d00fe 100644
--- a/.gitlab-ci.yml
+++ b/.gitlab-ci.yml
@@ -87,6 +87,7 @@ test-dylint:
   <<:                              *docker-env
   script:
     - cd ink_linting/
+    - mv _Cargo.toml Cargo.toml
 
     # Installing these components here is necessary because
     # `ink_linting/` has a fixed `rust-toolchain` file.
@@ -131,6 +132,29 @@ test-new-project-template:
     - cargo fmt --verbose --all -- --check
     - cargo clippy --verbose --manifest-path Cargo.toml -- -D warnings;
 
+# With the introduction of `ink_linting` in `build.rs` the installation process
+# is more elaborate now and as part of it the `ink_linting` crate is built locally.
+# We introduced this CI job to make sure that publishing to a registry and installing
+# from it will work correctly.
+test-registry-publish-install:
+  stage:                           test
+  <<:                              *docker-env
+  before_script:
+    # Set up a local registry.
+    - mkdir -p ./estuary/crates/ ./estuary/indices/
+    - estuary --base-url=http://0.0.0.0:7878 --crate-dir ./estuary/crates/ --index-dir ./estuary/indices &
+    - mkdir .cargo
+    - echo -e '[registries]\nestuary = { index = "http://0.0.0.0:7878/git/index" }' > .cargo/config.toml
+    - echo 0000 | cargo login --registry estuary
+  script:
+    - cargo publish --registry estuary
+    - cargo install cargo-contract --index http://0.0.0.0:7878/git/index
+
+    # Simple smoke testing to check if basic `check` functionality works.
+    - cargo run -- contract new new_project
+    - echo "[workspace]" >> new_project/Cargo.toml
+    - cargo run --all-features -- contract check --manifest-path new_project/Cargo.toml
+
 #### stage:                        build (default features)
 
 build:
diff --git a/Cargo.toml b/Cargo.toml
index 52a82c7000752e36cf36d3b759dd6bd898ed5b10..b200d895b30c2fd482ab0272334b147d756c6c60 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -16,7 +16,12 @@ homepage = "https://www.parity.io/"
 description = "Setup and deployment tool for developing Wasm based smart contracts via ink!"
 keywords = ["wasm", "parity", "webassembly", "blockchain", "edsl"]
 categories = ["command-line-utilities", "development-tools::build-utils", "development-tools::cargo-plugins"]
-include = ["Cargo.toml", "src/**/*.rs", "README.md", "LICENSE", "build.rs", "templates", "src/**/*.scale"]
+include = [
+    "Cargo.toml", "src/**/*.rs", "README.md", "LICENSE", "build.rs", "templates", "src/**/*.scale",
+    # We need to include `ink_linting` in the releases, so that the dylint driver which
+    # is contained in that crate is build locally as part of the installation.
+    "ink_linting", "!ink_linting/target/", "!ink_linting/ui/"
+]
 
 [dependencies]
 env_logger = "0.9.0"
diff --git a/build.rs b/build.rs
index f7085a3bcda5b1a37307283fa93530d81aea8aaa..23b0871112d17fdf8b27a1729b11207a2ea796cf 100644
--- a/build.rs
+++ b/build.rs
@@ -68,9 +68,43 @@ fn zip_template_and_build_dylint_driver(manifest_dir: PathBuf, out_dir: PathBuf)
     // `libink_linting@nightly-2021-11-04-x86_64-unknown-linux-gnu.so`. This file is obtained
     // by building the crate in `ink_linting/`.
     let dylint_driver_dst_file = out_dir.join("ink-dylint-driver.zip");
-    build_and_zip_dylint_driver(manifest_dir, out_dir, dylint_driver_dst_file)?;
 
-    Ok(())
+    let ink_dylint_driver_dir = manifest_dir.join("ink_linting");
+
+    // The `ink_linting/Cargo.toml` file is named `_Cargo.toml` in the repository.
+    // This is because we need to have the `ink_linting` folder part of the release,
+    // so that when somebody installs `cargo-contract` the `ink_linting` crate is
+    // build locally as part of that installation process.
+    // But if the file were named `Cargo.toml` then `cargo publish` would ignore
+    // the whole `ink_linting` folder and we wouldn't be able to specify the folder
+    // in the `cargo-contract/Cargo.toml` section of `[include]`.
+    //
+    // This is intended behavior:
+    //
+    // > Regardless of whether exclude or include is specified, the following files are always excluded:
+    // > * Any sub-packages will be skipped (any subdirectory that contains a Cargo.toml file).
+    //
+    // (from https://doc.rust-lang.org/cargo/reference/manifest.html#the-exclude-and-include-fields)
+    std::fs::rename(
+        ink_dylint_driver_dir.join("_Cargo.toml"),
+        ink_dylint_driver_dir.join("Cargo.toml"),
+    )?;
+
+    let res = build_and_zip_dylint_driver(
+        ink_dylint_driver_dir.clone(),
+        out_dir,
+        dylint_driver_dst_file,
+    );
+
+    // After the build process of `ink_linting` happened we need to name back to the original
+    // `_Cargo.toml` name, otherwise the directory would be "dirty" and  `cargo publish` would
+    // fail with `Source directory was modified by build.rs during cargo publish`.
+    std::fs::rename(
+        ink_dylint_driver_dir.join("Cargo.toml"),
+        ink_dylint_driver_dir.join("_Cargo.toml"),
+    )?;
+
+    res
 }
 
 /// Creates a zip archive `template.zip` of the `new` project template in `out_dir`.
@@ -95,7 +129,7 @@ fn zip_template(manifest_dir: &Path, out_dir: &Path) -> Result<()> {
 /// linting rules.
 #[cfg(feature = "cargo-clippy")]
 fn build_and_zip_dylint_driver(
-    _manifest_dir: PathBuf,
+    _ink_dylint_driver_dir: PathBuf,
     _out_dir: PathBuf,
     dylint_driver_dst_file: PathBuf,
 ) -> Result<()> {
@@ -118,29 +152,10 @@ fn build_and_zip_dylint_driver(
 /// linting rules.
 #[cfg(not(feature = "cargo-clippy"))]
 fn build_and_zip_dylint_driver(
-    manifest_dir: PathBuf,
+    ink_dylint_driver_dir: PathBuf,
     out_dir: PathBuf,
     dylint_driver_dst_file: PathBuf,
 ) -> Result<()> {
-    let mut ink_dylint_driver_dir = manifest_dir.join("ink_linting");
-
-    // The following condition acocunts for the case when `cargo package` or
-    // `cargo publish` is used. In that case the `CARGO_MANIFEST_DIR` is actually
-    // of the form `cargo-contract/target/package/cargo-contract-0.18.0/`.
-    // But since the `ink_linting/` folder is not part of the `cargo-contract`
-    // project it would not be found in this `CARGO_MANIFEST_DIR`.
-    if !ink_dylint_driver_dir.exists() {
-        println!(
-            "Folder `ink_linting` not found at {:?}",
-            ink_dylint_driver_dir
-        );
-        ink_dylint_driver_dir = manifest_dir.join("../../../ink_linting/");
-        println!(
-            "Added a relative path to reference the `ink_linting` folder at: {:?}",
-            ink_dylint_driver_dir
-        );
-    }
-
     let mut cmd = Command::new("cargo");
 
     let manifest_arg = format!(
@@ -178,7 +193,7 @@ fn build_and_zip_dylint_driver(
     println!("Invoking cargo: {:?}", cmd);
 
     let child = cmd
-        // capture the stdout to return from this function as bytes
+        // Capture the stdout to return from this function as bytes
         .stdout(std::process::Stdio::piped())
         .spawn()?;
     let output = child.wait_with_output()?;
diff --git a/ink_linting/Cargo.toml b/ink_linting/_Cargo.toml
similarity index 100%
rename from ink_linting/Cargo.toml
rename to ink_linting/_Cargo.toml