readline library not found

I am attempting to build postgresql from source because there is a clear
need on our system to place the directories in the default
location, /usr/local/pgsql, while my distro places them in /var/lib.
Strictly a matter of disc array management.

The config is straightforward:

./configure \
--without-docdir \
--with-libs=/usr/local/lib
--with-includes=/usr/local/include/readline \
--with-pgport=5432 \
--with-openssl

This results in one error: 'readline library not found', even 'though I
specified the directories for readlines libraries and includes.

In /usr/local/lib are:

libreadline.a
libreadline.so -> libreadline.so.5
libreadline.so.5 -> libreadline.so.5.2
libreadline.so.5.2

In 'Beginning PHP and PostgreSQL 8' there is mention of a possible
problem with this, which was why I specified the directories.

If I configure --without-readline, things are quite 'happy'.

Guess this is so obvious i can't see the forest for the trees.

Anyone able to point me in a better direction?

GJW