diff --git a/doc/README b/doc/README
index a13dcdb6182..b658f68f3e1 100644
--- a/doc/README
+++ b/doc/README
@@ -56,7 +56,8 @@ By default it uses the xbps directory in your $HOME.
 
 If configuration file is not specified from the command line with the
 -c flag, it will first try to use the default location at
-/etc/xbps.conf, and as last resort in current directory.
+/etc/xbps.conf, and as last resort in the etc directory of the current
+directory.
 
 To avoid problems with libtool and configure scripts finding stuff that is
 available in the host system, almost all packages must be built inside of a
diff --git a/xbps.conf b/etc/xbps.conf
similarity index 100%
rename from xbps.conf
rename to etc/xbps.conf
diff --git a/xbps-src.sh b/xbps-src.sh
index 117b2255574..ee88322bf7d 100755
--- a/xbps-src.sh
+++ b/xbps-src.sh
@@ -127,7 +127,7 @@ check_config_vars()
 	local f=
 
 	if [ -z "$config_file_specified" ]; then
-		config_file_paths="$XBPS_CONFIG_FILE ./xbps.conf"
+		config_file_paths="$XBPS_CONFIG_FILE ./etc/xbps.conf"
 		for f in $config_file_paths; do
 			[ -f $f ] && XBPS_CONFIG_FILE=$f && \
 				cffound=yes && break