diff --git a/NEWS b/NEWS
index 4d09f4090..efce67dea 100644
--- a/NEWS
+++ b/NEWS
@@ -9,6 +9,9 @@ Noteworthy changes in version 2.0.10 (unreleased)
 
  * [W32] Initialized the socket subsystem for all keyserver helpers.
 
+ * [W32] The sysconf directory has been moved from a subdirectory of
+   the installation directory to %CSIDL_COMMON_APPDATA%/GNU/etc/gnupg.
+
  * New gpg2 command --locate-keys.
 
  * New gpg2 options --with-sig-list and --with-sig-check.
diff --git a/common/ChangeLog b/common/ChangeLog
index dbdcbcf50..5bb986f30 100644
--- a/common/ChangeLog
+++ b/common/ChangeLog
@@ -1,3 +1,8 @@
+2008-06-16  Werner Koch  <wk@g10code.com>
+
+	* homedir.c (w32_commondir): New.
+	(gnupg_sysconfdir): Use it.
+
 2008-06-09  Werner Koch  <wk@g10code.com>
 
 	* b64dec.c: New.
diff --git a/common/homedir.c b/common/homedir.c
index eb1e5025a..616565ef0 100644
--- a/common/homedir.c
+++ b/common/homedir.c
@@ -197,6 +197,35 @@ w32_rootdir (void)
   /* Fallback to the hardwired value. */
   return GNUPG_LIBEXECDIR;
 }
+
+static const char *
+w32_commondir (void)
+{
+  static char *dir;
+
+  if (!dir)
+    {
+      char path[MAX_PATH];
+
+      if (w32_shgetfolderpath (NULL, CSIDL_COMMON_APPDATA, 
+                               NULL, 0, path) >= 0) 
+        {
+          char *tmp = xmalloc (strlen (path) + 4 +1);
+          strcpy (stpcpy (tmp, path), "\\GNU");
+          dir = tmp;
+          /* No auto create of the directory.  Either the installer or
+             the admin has to create these directories.  */
+        }
+      else
+        {
+          /* Ooops: Not defined - probably an old Windows version.
+             Use the installation directory instead.  */
+          dir = xstrdup (w32_rootdir ());
+        }
+    }
+  
+  return dir;
+}
 #endif /*HAVE_W32_SYSTEM*/
 
 
@@ -214,7 +243,7 @@ gnupg_sysconfdir (void)
   if (!name)
     {
       const char *s1, *s2;
-      s1 = w32_rootdir ();
+      s1 = w32_commondir ();
       s2 = DIRSEP_S "etc" DIRSEP_S "gnupg";
       name = xmalloc (strlen (s1) + strlen (s2) + 1);
       strcpy (stpcpy (name, s1), s2);