diff --git a/src/Darcs/Local/Repository.hs b/src/Darcs/Local/Repository.hs
index 2d2b20d..a56cca8 100644
--- a/src/Darcs/Local/Repository.hs
+++ b/src/Darcs/Local/Repository.hs
@@ -62,7 +62,7 @@ createRepo
 createRepo parent name = do
     let path = parent </> name
     createDirectory path
-    let settings = proc "darcs" ["init", "--no-working-dir", path]
+    let settings = proc "darcs" ["init", "--no-working-dir", "--repodir", path]
     (_, _, _, ph) <- createProcess settings
     ec <- waitForProcess ph
     case ec of