diff --git a/config/gitlab.yml.example b/config/gitlab.yml.example
index 76dc621..daaa2ff 100644
--- a/config/gitlab.yml.example
+++ b/config/gitlab.yml.example
@@ -84,6 +84,10 @@ omniauth:
 # 3. Advanced settings
 # ==========================
 
+# GitLab Satellites
+satellites: 
+  path: /home/gitlab/gitlab-satellites/ 
+
 ## Backup settings
 backup:
   path: "tmp/backups"   # Relative paths are relative to Rails.root (default: tmp/backups/)
diff --git a/config/initializers/1_settings.rb b/config/initializers/1_settings.rb
index 6b47a9c..7a4b6d8 100644
--- a/config/initializers/1_settings.rb
+++ b/config/initializers/1_settings.rb
@@ -77,3 +77,5 @@ Settings['git'] ||= Settingslogic.new({})
 Settings.git['max_size']  ||= 5242880 # 5.megabytes
 Settings.git['bin_path']  ||= '/usr/bin/git'
 Settings.git['timeout']   ||= 10
+
+Settings.satellites['path']   ||= '/home/gitlab/gitlab/tmp/repo_satellites/'
diff --git a/doc/install/installation.md b/doc/install/installation.md
index 6a7605c..054858b 100644
--- a/doc/install/installation.md
+++ b/doc/install/installation.md
@@ -223,6 +223,9 @@ do so with caution!
     sudo chmod -R u+rwX  log/
     sudo chmod -R u+rwX  tmp/
 
+    # Make directory for satellites
+    sudo -u gitlab -H mkdir /home/gitlab/gitlab-satellites
+
     # Copy the example Unicorn config
     sudo -u gitlab -H cp config/unicorn.rb.example config/unicorn.rb
 
diff --git a/lib/gitlab/satellite/satellite.rb b/lib/gitlab/satellite/satellite.rb
index a0abf19..164af55 100644
--- a/lib/gitlab/satellite/satellite.rb
+++ b/lib/gitlab/satellite/satellite.rb
@@ -57,7 +57,7 @@ module Gitlab
       end
 
       def path
-        Rails.root.join("tmp", "repo_satellites", project.path_with_namespace)
+        File.join(Gitlab.config.satellites.path, project.path_with_namespace)
       end
 
       def repo
--
libgit2 0.21.2