diff --git a/cmd/helm/init.go b/cmd/helm/init.go
index 21381a0f6..2b1b9ddf6 100644
--- a/cmd/helm/init.go
+++ b/cmd/helm/init.go
@@ -23,6 +23,7 @@ import (
 	"fmt"
 	"io"
 	"os"
+	"path/filepath"
 
 	"github.com/spf13/cobra"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -337,11 +338,11 @@ func ensureDefaultRepos(home helmpath.Home, out io.Writer, skipRefresh bool) err
 	if fi, err := os.Stat(repoFile); err != nil {
 		fmt.Fprintf(out, "Creating %s \n", repoFile)
 		f := repo.NewRepoFile()
-		sr, err := initStableRepo(home.CacheIndex(stableRepository), out, skipRefresh)
+		sr, err := initStableRepo(home.RelativeIndex(stableRepository), out, skipRefresh, home)
 		if err != nil {
 			return err
 		}
-		lr, err := initLocalRepo(home.LocalRepository(localRepositoryIndexFile), home.CacheIndex("local"), out)
+		lr, err := initLocalRepo(home.LocalRepository(localRepositoryIndexFile), home.RelativeIndex("local"), out, home)
 		if err != nil {
 			return err
 		}
@@ -356,7 +357,7 @@ func ensureDefaultRepos(home helmpath.Home, out io.Writer, skipRefresh bool) err
 	return nil
 }
 
-func initStableRepo(cacheFile string, out io.Writer, skipRefresh bool) (*repo.Entry, error) {
+func initStableRepo(cacheFile string, out io.Writer, skipRefresh bool, home helmpath.Home) (*repo.Entry, error) {
 	fmt.Fprintf(out, "Adding %s repo with URL: %s \n", stableRepository, stableRepositoryURL)
 	c := repo.Entry{
 		Name:  stableRepository,
@@ -372,16 +373,14 @@ func initStableRepo(cacheFile string, out io.Writer, skipRefresh bool) (*repo.En
 		return &c, nil
 	}
 
-	// In this case, the cacheFile is always absolute. So passing empty string
-	// is safe.
-	if err := r.DownloadIndexFile(""); err != nil {
+	if err := r.DownloadIndexFile(home.Cache()); err != nil {
 		return nil, fmt.Errorf("Looks like %q is not a valid chart repository or cannot be reached: %s", stableRepositoryURL, err.Error())
 	}
 
 	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()
@@ -390,7 +389,12 @@ func initLocalRepo(indexFile, cacheFile string, out io.Writer) (*repo.Entry, err
 		}
 
 		//TODO: take this out and replace with helm update functionality
-		os.Symlink(indexFile, cacheFile)
+		fp, err := filepath.Rel(filepath.Join(home.Cache(), cacheFile), indexFile)
+		if err != nil {
+			return nil, err
+		}
+		pth := home.Path(fp)
+		os.Symlink(pth, filepath.Join(home.Cache(), cacheFile))
 	} else if fi.IsDir() {
 		return nil, fmt.Errorf("%s must be a file, not a directory", indexFile)
 	}
diff --git a/cmd/helm/repo_add.go b/cmd/helm/repo_add.go
index b172d016c..7fb20d02d 100644
--- a/cmd/helm/repo_add.go
+++ b/cmd/helm/repo_add.go
@@ -86,7 +86,7 @@ func addRepository(name, url string, home helmpath.Home, certFile, keyFile, caFi
 		return fmt.Errorf("repository name (%s) already exists, please specify a different name", name)
 	}
 
-	cif := home.CacheIndex(name)
+	cif := home.RelativeIndex(name)
 	c := repo.Entry{
 		Name:     name,
 		Cache:    cif,
diff --git a/pkg/helm/helmpath/helmhome.go b/pkg/helm/helmpath/helmhome.go
index b5ec4909e..3c35c3b69 100644
--- a/pkg/helm/helmpath/helmhome.go
+++ b/pkg/helm/helmpath/helmhome.go
@@ -61,6 +61,12 @@ func (h Home) CacheIndex(name string) string {
 	return h.Path("repository", "cache", target)
 }
 
+// RelativeIndex returns the relative path to an index for the given named repository.
+func (h Home) RelativeIndex(name string) string {
+	target := fmt.Sprintf("%s-index.yaml", name)
+	return filepath.Join(target)
+}
+
 // Starters returns the path to the Helm starter packs.
 func (h Home) Starters() string {
 	return h.Path("starters")
diff --git a/pkg/helm/helmpath/helmhome_unix_test.go b/pkg/helm/helmpath/helmhome_unix_test.go
index 494d0f6b4..634faeef7 100644
--- a/pkg/helm/helmpath/helmhome_unix_test.go
+++ b/pkg/helm/helmpath/helmhome_unix_test.go
@@ -36,6 +36,7 @@ func TestHelmHome(t *testing.T) {
 	isEq(t, hh.LocalRepository(), "/r/repository/local")
 	isEq(t, hh.Cache(), "/r/repository/cache")
 	isEq(t, hh.CacheIndex("t"), "/r/repository/cache/t-index.yaml")
+	isEq(t, hh.RelativeIndex("t"), "t-index.yaml")
 	isEq(t, hh.Starters(), "/r/starters")
 	isEq(t, hh.Archive(), "/r/cache/archive")
 	isEq(t, hh.TLSCaCert(), "/r/ca.pem")
diff --git a/pkg/helm/helmpath/helmhome_windows_test.go b/pkg/helm/helmpath/helmhome_windows_test.go
index e416bfd58..43db9b8f1 100644
--- a/pkg/helm/helmpath/helmhome_windows_test.go
+++ b/pkg/helm/helmpath/helmhome_windows_test.go
@@ -33,6 +33,7 @@ func TestHelmHome(t *testing.T) {
 	isEq(t, hh.LocalRepository(), "r:\\repository\\local")
 	isEq(t, hh.Cache(), "r:\\repository\\cache")
 	isEq(t, hh.CacheIndex("t"), "r:\\repository\\cache\\t-index.yaml")
+	isEq(t, hh.RelativeIndex("t"), "t-index.yaml")
 	isEq(t, hh.Starters(), "r:\\starters")
 	isEq(t, hh.Archive(), "r:\\cache\\archive")
 	isEq(t, hh.TLSCaCert(), "r:\\ca.pem")