diff --git a/cmd/helm/init.go b/cmd/helm/init.go
index d368945ec..7a94cfc0e 100644
--- a/cmd/helm/init.go
+++ b/cmd/helm/init.go
@@ -386,7 +386,7 @@ func ensureDefaultRepos(home helmpath.Home, out io.Writer, skipRefresh bool) err
 		if err != nil {
 			return err
 		}
-		lr, err := initLocalRepo(home.LocalRepository(localRepositoryIndexFile), home.CacheIndex("local"), out, home)
+		lr, err := initLocalRepo(home.LocalRepository(localRepositoryIndexFile), home.CacheRelativeIndex("local"), out, home)
 		if err != nil {
 			return err
 		}
diff --git a/cmd/helm/init_unix.go b/cmd/helm/init_unix.go
index 1117dd487..20458a182 100644
--- a/cmd/helm/init_unix.go
+++ b/cmd/helm/init_unix.go
@@ -20,10 +20,15 @@ package main
 
 import (
 	"os"
+	"path/filepath"
 
 	"k8s.io/helm/pkg/helm/helmpath"
 )
 
 func createLink(indexFile, cacheFile string, home helmpath.Home) error {
-	return os.Symlink(indexFile, cacheFile)
+	fp, err := filepath.Rel(home.Cache(), indexFile)
+	if err != nil {
+		return err
+	}
+	return os.Symlink(fp, filepath.Join(home.Cache(), cacheFile))
 }
diff --git a/cmd/helm/init_windows.go b/cmd/helm/init_windows.go
index be17bccda..597820410 100644
--- a/cmd/helm/init_windows.go
+++ b/cmd/helm/init_windows.go
@@ -20,10 +20,11 @@ package main
 
 import (
 	"os"
+	"path/filepath"
 
 	"k8s.io/helm/pkg/helm/helmpath"
 )
 
 func createLink(indexFile, cacheFile string, home helmpath.Home) error {
-	return os.Link(indexFile, cacheFile)
+	return os.Link(indexFile, filepath.Join(home.Cache(), cacheFile))
 }