[reactjs] Invalid configuration object. Webpack has been initialised using a configuration object that does not match the API schema

For the people like myself, who started recently: The loaders keyword is replaced with rules; even though it still represents the concept of loaders. So my webpack.config.js, for a React app, is as follows:

var webpack = require('webpack');
var path = require('path');

var BUILD_DIR = path.resolve(__dirname, 'src/client/public');
var APP_DIR = path.resolve(__dirname, 'src/client/app');

var config = {
  entry: APP_DIR + '/index.jsx',
  output: {
    path: BUILD_DIR,
    filename: 'bundle.js'
  },
  module : {
    rules : [
      {
        test : /\.jsx?/,
        include : APP_DIR,
        loader : 'babel-loader'
      }
    ]
  }
};

module.exports = config;

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