diff --git a/lib/cli.js b/lib/cli.js
index 7470be1d6..3bc6efedc 100644
--- a/lib/cli.js
+++ b/lib/cli.js
@@ -44,49 +44,18 @@ if (commander.args.length != 0) {
 var config, config_path, have_question
 try {
   if (commander.config) {
-    config_path = commander.config
-    config = YAML.safeLoad(fs.readFileSync(config_path, 'utf8'))
+    config_path = Path.resolve(commander.config)
   } else {
-    config_path = './config.yaml'
-    try {
-      config = YAML.safeLoad(fs.readFileSync(config_path, 'utf8'))
-    } catch(err) {
-      var readline = require('readline')
-      var rl = readline.createInterface(process.stdin, process.stdout)
-      var timeout = setTimeout(function() {
-        global.console.log('I got tired waiting for an answer. Exitting...')
-        process.exit(1)
-      }, 20000)
-
-      ;(function askUser() {
-        have_question = true
-        rl.question('Config file doesn\'t exist, create a new one? (Y/n) ', function(x) {
-          clearTimeout(timeout)
-          if (x[0] == 'Y' || x[0] == 'y' || x === '') {
-            rl.close()
-
-            var created_config = fs.readFileSync(require.resolve('../conf/default.yaml'), 'utf8')
-            config = YAML.safeLoad(created_config)
-            write_config_banner(created_config, config)
-            fs.writeFileSync(config_path, created_config)
-            afterConfigLoad()
-          } else if (x[0] == 'N' || x[0] == 'n') {
-            rl.close()
-            global.console.log('So, you just accidentally run me in a wrong folder. Exitting...')
-            process.exit(1)
-          } else {
-            askUser()
-          }
-        })
-      })()
-    }
+    config_path = require('./config-path')()
   }
+  config = YAML.safeLoad(fs.readFileSync(config_path, 'utf8'))
+  logger.logger.warn({ file: config_path }, 'Using config file: @{file}')
 } catch (err) {
   logger.logger.fatal({ file: config_path, err: err }, 'cannot open config file @{file}: @{!err.message}')
   process.exit(1)
 }
 
-if (!have_question) afterConfigLoad()
+afterConfigLoad()
 
 function get_hostport() {
   // command line || config file || default
@@ -124,22 +93,6 @@ function afterConfigLoad() {
   }
 }
 
-function write_config_banner(def, config) {
-  var hostport = get_hostport()
-  var log = global.console.log
-
-  log('===========================================================')
-  log(' Creating a new configuration file: "%s"', config_path)
-  log(' ')
-  log(' If you want to setup npm to work with this registry,')
-  log(' run following commands:')
-  log(' ')
-  log(' $ npm set registry http://%s:%s/', hostport[0], hostport[1])
-  log(' $ npm set always-auth true')
-  log(' $ npm adduser')
-  log('===========================================================')
-}
-
 process.on('uncaughtException', function(err) {
   logger.logger.fatal( { err: err }
                      , 'uncaught exception, please report this\n@{err.stack}' )
diff --git a/lib/config-path.js b/lib/config-path.js
new file mode 100644
index 000000000..a73dd1daf
--- /dev/null
+++ b/lib/config-path.js
@@ -0,0 +1,90 @@
+var fs     = require('fs')
+var Path   = require('path')
+var logger = require('./logger')
+
+module.exports = find_config_file
+
+function find_config_file() {
+  var paths = get_paths()
+
+  for (var i=0; i<paths.length; i++) {
+    if (file_exists(paths[i].path)) return paths[i].path
+  }
+
+  create_config_file(paths[0])
+  return paths[0].path
+}
+
+function create_config_file(config_path) {
+  require('mkdirp').sync(Path.dirname(config_path.path))
+  logger.logger.info({ file: config_path.path }, 'Creating default config file in @{file}')
+
+  var created_config = fs.readFileSync(require.resolve('../conf/default.yaml'), 'utf8')
+
+  if (config_path.type === 'xdg') {
+    var data_dir = process.env.XDG_DATA_HOME
+                || Path.join(process.env.HOME, '.local', 'share')
+    if (folder_exists(data_dir)) {
+      data_dir = Path.resolve(Path.join(data_dir, 'sinopia', 'storage'))
+      created_config = created_config.replace(/^storage: .\/storage$/m, 'storage: ' + data_dir)
+    }
+  }
+
+  fs.writeFileSync(config_path.path, created_config)
+}
+
+function get_paths() {
+  var try_paths = []
+
+  var xdg_config = process.env.XDG_CONFIG_HOME
+                || Path.join(process.env.HOME, '.config')
+  if (folder_exists(xdg_config)) {
+    try_paths.push({
+      path: Path.join(xdg_config, 'sinopia', 'config.yaml'),
+      type: 'xdg',
+    })
+  }
+
+  if (process.platform === 'win32'
+   && process.env.APPDATA
+   && folder_exists(process.env.APPDATA)) {
+    try_paths.push({
+      path: Path.resolve(Path.join(process.env.APPDATA, 'sinopia', 'config.yaml')),
+      type: 'win',
+    })
+  }
+
+  try_paths.push({
+    path: Path.resolve(Path.join('.', 'sinopia', 'config.yaml')),
+    type: 'def',
+  })
+
+  // backward compatibility
+  try_paths.push({
+    path: Path.resolve(Path.join('.', 'config.yaml')),
+    type: 'old',
+  })
+
+  return try_paths
+}
+
+function folder_exists(path) {
+  try {
+    var stat = fs.statSync(path)
+  } catch(_) {
+    return false
+  }
+
+  return stat.isDirectory()
+}
+
+function file_exists(path) {
+  try {
+    var stat = fs.statSync(path)
+  } catch(_) {
+    return false
+  }
+
+  return stat.isFile()
+}
+