diff --git a/cmd/helm/init.go b/cmd/helm/init.go
index 35aa6c4b2..a14d945a2 100644
--- a/cmd/helm/init.go
+++ b/cmd/helm/init.go
@@ -300,7 +300,7 @@ 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)
+		lr, err := initLocalRepo(home.LocalRepository(localRepositoryIndexFile), home.CacheIndex("local"), out, home)
 		if err != nil {
 			return err
 		}
@@ -338,7 +338,7 @@ func initStableRepo(cacheFile string, out io.Writer, skipRefresh bool, home helm
 	return &c, nil
 }
 
-func initLocalRepo(indexFile, cacheFile string, out io.Writer) (*repo.Entry, error) {
+func initLocalRepo(indexFile, cacheFile string, out io.Writer, home helmpath.Home) (*repo.Entry, error) {
 	if fi, err := os.Stat(indexFile); err != nil {
 		fmt.Fprintf(out, "Adding %s repo with URL: %s \n", localRepository, localRepositoryURL)
 		i := repo.NewIndexFile()
@@ -347,11 +347,11 @@ func initLocalRepo(indexFile, cacheFile string, out io.Writer) (*repo.Entry, err
 		}
 
 		//TODO: take this out and replace with helm update functionality
-		fp, err := filepath.Rel(indexFile, cacheFile)
+		fp, err := filepath.Rel(cacheFile, indexFile)
 		if err != nil {
 			return nil, err
 		}
-		pth := filepath.Join(fp)
+		pth := home.Path(fp)
 		os.Symlink(pth, cacheFile)
 	} else if fi.IsDir() {
 		return nil, fmt.Errorf("%s must be a file, not a directory", indexFile)