diff --git a/builtin-init-db.c b/builtin-init-db.c
index 6c46af9228..79eaf8d6ed 100644
--- a/builtin-init-db.c
+++ b/builtin-init-db.c
@@ -367,7 +367,9 @@ int cmd_init_db(int argc, const char **argv, const char *prefix)
 	/*
 	 * Set up the default .git directory contents
 	 */
-	git_dir = get_git_dir();
+	git_dir = getenv(GIT_DIR_ENVIRONMENT);
+	if (!git_dir)
+		git_dir = DEFAULT_GIT_DIR_ENVIRONMENT;
 	safe_create_dir(git_dir, 0);
 
 	/* Check to see if the repository version is right.