diff --git a/repo/config/config.go b/repo/config/config.go
index 4c1086e8bcca..16b6a789644e 100644
--- a/repo/config/config.go
+++ b/repo/config/config.go
@@ -32,7 +32,7 @@ const (
 	// DefaultConfigFile is the filename of the configuration file
 	DefaultConfigFile = "config"
 	// EnvDir is the environment variable used to change the path root.
-	EnvDir = "IPFS_DIR"
+	EnvDir = "IPFS_PATH"
 )
 
 // PathRoot returns the default configuration root directory
diff --git a/test/sharness/lib/test-lib.sh b/test/sharness/lib/test-lib.sh
index 43bd1397d398..f19f4fddeabc 100644
--- a/test/sharness/lib/test-lib.sh
+++ b/test/sharness/lib/test-lib.sh
@@ -67,7 +67,7 @@ test_wait_output_n_lines_60_sec() {
 test_init_ipfs() {
 
 	test_expect_success "ipfs init succeeds" '
-		export IPFS_DIR="$(pwd)/.go-ipfs" &&
+		export IPFS_PATH="$(pwd)/.go-ipfs" &&
 		ipfs init -b=1024 > /dev/null
 	'
 
diff --git a/test/sharness/t0020-init.sh b/test/sharness/t0020-init.sh
index 9b97c6905c00..5e6995b8336d 100755
--- a/test/sharness/t0020-init.sh
+++ b/test/sharness/t0020-init.sh
@@ -9,7 +9,7 @@ test_description="Test init command"
 . lib/test-lib.sh
 
 test_expect_success "ipfs init succeeds" '
-	export IPFS_DIR="$(pwd)/.go-ipfs" &&
+	export IPFS_PATH="$(pwd)/.go-ipfs" &&
 	ipfs init >actual_init
 '
 
@@ -35,7 +35,7 @@ test_expect_success "ipfs peer id looks good" '
 
 test_expect_success "ipfs init output looks good" '
 	STARTHASH="QmYpv2VEsxzTTXRYX3PjDg961cnJE3kY1YDXLycHGQ3zZB" &&
-	echo "initializing ipfs node at $IPFS_DIR" >expected &&
+	echo "initializing ipfs node at $IPFS_PATH" >expected &&
 	echo "generating key pair...done" >>expected &&
 	echo "peer identity: $PEERID" >>expected &&
 	printf "\\n%s\\n" "to get started, enter: ipfs cat $STARTHASH" >>expected &&
diff --git a/test/sharness/t0060-daemon.sh b/test/sharness/t0060-daemon.sh
index e2a5b6173a65..32a6b2aad9c5 100755
--- a/test/sharness/t0060-daemon.sh
+++ b/test/sharness/t0060-daemon.sh
@@ -13,7 +13,7 @@ test_description="Test daemon command"
 
 # NOTE: this should remove bootstrap peers (needs a flag)
 test_expect_success "ipfs daemon --init launches" '
-  export IPFS_DIR="$(pwd)/.go-ipfs" &&
+  export IPFS_PATH="$(pwd)/.go-ipfs" &&
   ipfs daemon --init 2>&1 >actual_init &
 '
 
@@ -35,7 +35,7 @@ test_expect_success "ipfs peer id looks good" '
 # note this is almost the same as t0020-init.sh "ipfs init output looks good"
 test_expect_success "ipfs daemon output looks good" '
   STARTHASH="QmYpv2VEsxzTTXRYX3PjDg961cnJE3kY1YDXLycHGQ3zZB" &&
-  echo "initializing ipfs node at $IPFS_DIR" >expected &&
+  echo "initializing ipfs node at $IPFS_PATH" >expected &&
   echo "generating key pair...done" >>expected &&
   echo "peer identity: $PEERID" >>expected &&
   echo "\nto get started, enter: ipfs cat $STARTHASH" >>expected &&