diff --git a/cmd/helm/helm.go b/cmd/helm/helm.go
index def0dd1da..43a032c00 100644
--- a/cmd/helm/helm.go
+++ b/cmd/helm/helm.go
@@ -7,12 +7,38 @@ import (
 )
 
 var stdout = os.Stdout
+var helmHome string
+
+var globalUsage = `The Kubernetes package manager
+
+To begin working with Helm, run the 'helm init' command:
+
+$ helm init
+
+This will install Tiller to your running Kubernetes cluster.
+It will also set up any necessary local configuration.
+
+Commond actions from this point on include:
+
+- helm search: search for charts
+- helm fetch: download a chart to your local directory to view
+- helm install: upload the chart to Kubernetes
+- helm list: list releases of charts
+
+ENVIRONMENT:
+$HELM_HOME: Set an alternative location for Helm files.
+            By default, these are stored in ~/.helm
+`
 
 // RootCommand is the top-level command for Helm.
 var RootCommand = &cobra.Command{
 	Use:   "helm",
 	Short: "The Helm package manager for Kubernetes.",
-	Long:  `Do long help here.`,
+	Long:  globalUsage,
+}
+
+func init() {
+	RootCommand.PersistentFlags().StringVar(&helmHome, "home", "$HOME/.helm", "location of you Helm files [$HELM_HOME]")
 }
 
 func main() {
diff --git a/cmd/helm/home.go b/cmd/helm/home.go
new file mode 100644
index 000000000..3b091931b
--- /dev/null
+++ b/cmd/helm/home.go
@@ -0,0 +1,27 @@
+package main
+
+import (
+	"fmt"
+
+	"github.com/spf13/cobra"
+)
+
+var longHomeHelp = `
+This command displays the location of HELM_HOME. This is where
+any helm configuration files live.
+`
+
+var homeCommand = &cobra.Command{
+	Use:   "home",
+	Short: "Displays the location of HELM_HOME",
+	Long:  longHomeHelp,
+	Run:   Home,
+}
+
+func init() {
+	RootCommand.AddCommand(homeCommand)
+}
+
+func Home(cmd *cobra.Command, args []string) {
+	fmt.Println("helm home was called")
+}
diff --git a/cmd/helm/init.go b/cmd/helm/init.go
index 7a7f53b31..5155c6724 100644
--- a/cmd/helm/init.go
+++ b/cmd/helm/init.go
@@ -3,6 +3,9 @@ package main
 import (
 	"errors"
 	"fmt"
+	"io/ioutil"
+	"os"
+	"path/filepath"
 
 	"github.com/deis/tiller/pkg/client"
 	"github.com/deis/tiller/pkg/kubectl"
@@ -14,6 +17,10 @@ This command installs Tiller (the helm server side component) onto your
 Kubernetes Cluster and sets up local configuration in $HELM_HOME (default: ~/.helm/)
 `
 
+const repositoriesPath = ".repositories"
+const cachePath = "cache"
+
+var defaultRepo = map[string]string{"default-name": "default-url"}
 var tillerImg string
 
 func init() {
@@ -34,18 +41,30 @@ func RunInit(cmd *cobra.Command, args []string) error {
 		return errors.New("This command does not accept arguments. \n")
 	}
 
+	if err := EnsureHome(os.ExpandEnv(helmHome)); err != nil {
+		return err
+	}
+
+	if err := installTiller(); err != nil {
+		return err
+	}
+
+	fmt.Printf("Tiller (the helm server side component) has been installed into your Kubernetes Cluster.\n$HELM_HOME has also been configured at %s.\nHappy Helming!\n", helmHome)
+	return nil
+}
+
+func installTiller() error {
 	// TODO: take value of global flag kubectl and pass that in
 	runner := buildKubectlRunner("")
 
 	i := client.NewInstaller()
 	i.Tiller["Image"] = tillerImg
-
 	out, err := i.Install(runner)
+
 	if err != nil {
 		return fmt.Errorf("error installing %s %s", string(out), err)
 	}
 
-	fmt.Printf("Tiller (the helm server side component) has been installed into your Kubernetes Cluster.\n")
 	return nil
 }
 
@@ -55,3 +74,40 @@ func buildKubectlRunner(kubectlPath string) kubectl.Runner {
 	}
 	return &kubectl.RealRunner{}
 }
+
+// EnsureHome checks to see if $HELM_HOME exists
+//
+// If $HELM_HOME does not exist, this function will create it.
+func EnsureHome(home string) error {
+	configDirectories := []string{home, CacheDirectory(home)}
+
+	for _, p := range configDirectories {
+		if fi, err := os.Stat(p); err != nil {
+			fmt.Printf("Creating %s \n", p)
+			if err := os.MkdirAll(p, 0755); err != nil {
+				return fmt.Errorf("Could not create %s: %s", p, err)
+			}
+		} else if !fi.IsDir() {
+			return fmt.Errorf("%s must be a directory.", p)
+		}
+	}
+
+	repoPath := RepositoriesFile(home)
+	if fi, err := os.Stat(repoPath); err != nil {
+		fmt.Printf("Creating %s \n", repoPath)
+		if err := ioutil.WriteFile(repoPath, []byte("test-charts: https://www.googleapis.com/storage/v1/b/test-charts/o\n"), 0644); err != nil {
+			return err
+		}
+	} else if fi.IsDir() {
+		return fmt.Errorf("%s must be a file, not a directory.", repoPath)
+	}
+	return nil
+}
+
+func CacheDirectory(home string) string {
+	return filepath.Join(home, cachePath)
+}
+
+func RepositoriesFile(home string) string {
+	return filepath.Join(home, repositoriesPath)
+}
diff --git a/cmd/helm/init_test.go b/cmd/helm/init_test.go
index 59a45c6ab..31d75bc8e 100644
--- a/cmd/helm/init_test.go
+++ b/cmd/helm/init_test.go
@@ -1,10 +1,36 @@
 package main
 
 import (
+	"io/ioutil"
+	"os"
 	"testing"
 )
 
-func TestInit(t *testing.T) {
-	//TODO: call command and make sure no error is returned
-	//TODO: check local config
+func TestEnsureHome(t *testing.T) {
+	home := CreateTmpHome()
+	if err := EnsureHome(home); err != nil {
+		t.Errorf("%s", err)
+	}
+
+	dirs := []string{home, CacheDirectory(home)}
+	for _, dir := range dirs {
+		if fi, err := os.Stat(dir); err != nil {
+			t.Errorf("%s", err)
+		} else if !fi.IsDir() {
+			t.Errorf("%s is not a directory", fi)
+		}
+	}
+
+	if fi, err := os.Stat(RepositoriesFile(home)); err != nil {
+		t.Errorf("%s", err)
+	} else if fi.IsDir() {
+		t.Errorf("%s should not be a directory", fi)
+	}
+
+}
+
+func CreateTmpHome() string {
+	tmpHome, _ := ioutil.TempDir("", "helm_home")
+	defer os.Remove(tmpHome)
+	return tmpHome
 }