A compressor housing and method of manufacture and assembly are disclosed. The compressor housing includes a cylinder block (1) and a front housing (2). An annular projection (1a) is formed on the front end of the cylinder block (1). An annular groove (2a) is formed on the rear end of the front housing (2). The cylinder block (1) and the front housing (2) are secured to each other to prevent the front housing (2) from being displaced in relation to the cylinder block (1) by engaging the annular projection (1a) with the annular groove (2a). A gasket (4) is located between the front end of the cylinder block (1) and the rear end of the front housing (2) secured to each other to seal between the cylinder block (1) and the front housing (2). This compressor and its method of manufacture reduce the amount of misalignment between a shaft bore (1b) in the cylinder block (1) and a shaft bore (2b) in the front housing (2), which improves the performance of the compressor.