diff --git a/src/cfg.rs b/src/cfg.rs
new file mode 100644
index 00000000..0c86f112
--- /dev/null
+++ b/src/cfg.rs
@@ -0,0 +1,27 @@
+use crate::util::Result;
+use std::{
+    fs,
+    io::{Error, ErrorKind},
+    path::PathBuf,
+};
+
+const WASH_DIR: &str = ".wash";
+
+/// Get the path to the `.wash` configuration directory.
+/// Creates the directory if it does not exist.
+pub fn cfg_dir() -> Result<PathBuf> {
+    let home = dirs::home_dir().ok_or_else(|| {
+        Error::new(
+            ErrorKind::NotFound,
+            "No home directory found. Please set $HOME.",
+        )
+    })?;
+
+    let wash = home.join(WASH_DIR);
+
+    if !wash.exists() {
+        fs::create_dir_all(&wash)?;
+    }
+
+    Ok(wash)
+}
diff --git a/src/ctx/mod.rs b/src/ctx/mod.rs
index 64b7b757..3c1b7216 100644
--- a/src/ctx/mod.rs
+++ b/src/ctx/mod.rs
@@ -1,4 +1,5 @@
 use crate::{
+    cfg::cfg_dir,
     generate::{
         interactive::{prompt_for_choice, user_question},
         project_variables::StringEntry,
@@ -21,7 +22,7 @@ use structopt::{clap::AppSettings, StructOpt};
 pub mod context;
 use context::{DefaultContext, WashContext};
 
-const CTX_DIR: &str = ".wash/contexts";
+const CTX_DIR: &str = "contexts";
 const INDEX_JSON: &str = "index.json";
 const HOST_CONFIG_PATH: &str = ".wash/host_config.json";
 const HOST_CONFIG_NAME: &str = "host_config";
@@ -406,11 +407,12 @@ pub(crate) fn context_dir(cmd_dir: Option<PathBuf>) -> Result<PathBuf> {
     let dir = if let Some(dir) = cmd_dir {
         dir
     } else {
-        home_dir()?.join(CTX_DIR)
+        cfg_dir()?.join(CTX_DIR)
     };
+
     // Ensure user supplied context exists
     if std::fs::metadata(&dir).is_err() {
-        let _ = std::fs::create_dir(&dir);
+        let _ = std::fs::create_dir_all(&dir);
     }
     Ok(dir)
 }
diff --git a/src/main.rs b/src/main.rs
index 7b5279c9..ebae8cf1 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -11,6 +11,7 @@ use smithy::{GenerateCli, LintCli, ValidateCli};
 use structopt::{clap::AppSettings, StructOpt};
 
 mod call;
+mod cfg;
 mod claims;
 mod ctl;
 mod ctx;