[oe] ERROR: Please set the 'PERSISTENT_DIR

[Soumya R]

Hi All ,

   I am getting the error while configuring the bitbake
[root at fedora12 bitbake-1.8.18]# bitbake nano
ERROR: Please set the 'PERSISTENT_DIR' or 'CACHE' variable.
I got the sources of the bitbake and gave following commands
python setup.py build
python setup.py install
  
  Please help me out to resolve this error..

Thanks in advance..

Regards,
Soumya