diff --git a/packages/cli/src/commands/init/initHandler.js b/packages/cli/src/commands/init/initHandler.js
index 3fe4134447..eadc74f815 100644
--- a/packages/cli/src/commands/init/initHandler.js
+++ b/packages/cli/src/commands/init/initHandler.js
@@ -1,88 +1,7 @@
-const inquirer = require("inquirer")
-const { exists, readFile, writeFile, ensureDir } = require("fs-extra")
-const chalk = require("chalk")
-const { serverFileName, xPlatHomeDir } = require("../../common")
-const { join } = require("path")
-const Sqrl = require("squirrelly")
-const uuid = require("uuid")
+const { xPlatHomeDir } = require("../../common")
+const initialiseBudibase = require("@budibase/server/src/utilities/initialiseBudibase")
 
 module.exports = opts => {
-  return run(opts)
-}
-
-const run = async opts => {
-  try {
-    await ensureAppDir(opts)
-    await setEnvironmentVariables(opts)
-    await createClientDatabase(opts)
-    await createDevEnvFile(opts)
-    console.log(chalk.green("Budibase successfully initialised."))
-  } catch (error) {
-    console.error(`Error initialising Budibase: ${error.message}`)
-  }
-}
-
-const setEnvironmentVariables = async opts => {
-  if (opts.couchDbUrl) {
-    process.env.COUCH_DB_URL = opts.couchDbUrl
-  } else {
-    const dataDir = join(opts.dir, ".data")
-    await ensureDir(dataDir)
-    process.env.COUCH_DB_URL =
-      dataDir + (dataDir.endsWith("/") || dataDir.endsWith("\\") ? "" : "/")
-  }
-}
-
-const ensureAppDir = async opts => {
   opts.dir = xPlatHomeDir(opts.dir)
-  await ensureDir(opts.dir)
-}
-
-const createClientDatabase = async opts => {
-  // cannot be a top level require as it
-  // will cause environment module to be loaded prematurely
-  const clientDb = require("@budibase/server/src/db/clientDb")
-
-  if (opts.clientId === "new") {
-    // cannot be a top level require as it
-    // will cause environment module to be loaded prematurely
-    const CouchDB = require("@budibase/server/src/db/client")
-    const existing = await CouchDB.allDbs()
-
-    let i = 0
-    let isExisting = true
-    while (isExisting) {
-      i += 1
-      opts.clientId = i.toString()
-      isExisting = existing.includes(clientDb.name(opts.clientId))
-    }
-  }
-
-  await clientDb.create(opts.clientId)
-}
-
-const createDevEnvFile = async opts => {
-  const destConfigFile = join(opts.dir, "./.env")
-  let createConfig = !(await exists(destConfigFile)) || opts.quiet
-  if (!createConfig) {
-    const answers = await inquirer.prompt([
-      {
-        type: "input",
-        name: "overwrite",
-        message: ".env already exists - overwrite? (N/y)",
-      },
-    ])
-    createConfig = ["Y", "y", "yes"].includes(answers.overwrite)
-  }
-
-  if (createConfig) {
-    const template = await readFile(serverFileName(".env.template"), {
-      encoding: "utf8",
-    })
-    opts.adminSecret = uuid.v4()
-    opts.cookieKey1 = uuid.v4()
-    opts.cookieKey2 = uuid.v4()
-    const config = Sqrl.Render(template, opts)
-    await writeFile(destConfigFile, config, { flag: "w+" })
-  }
+  return initialiseBudibase(opts)
 }
diff --git a/packages/server/package.json b/packages/server/package.json
index f725f65abf..e57691209e 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -26,7 +26,7 @@
     "test": "jest routes --runInBand",
     "test:integration": "jest workflow --runInBand",
     "test:watch": "jest --watch",
-    "initialise": "node ../cli/bin/budi init -b local -q",
+    "initialise": "node ../cli/bin/budi init -q",
     "run:docker": "node src/index",
     "budi": "node ../cli/bin/budi",
     "dev:builder": "nodemon ../cli/bin/budi run",
diff --git a/packages/server/src/electron.js b/packages/server/src/electron.js
index d496c276cc..1d6687a145 100644
--- a/packages/server/src/electron.js
+++ b/packages/server/src/electron.js
@@ -1,55 +1,73 @@
 const { app, BrowserWindow, shell } = require("electron")
 const { join } = require("path")
-const { homedir } = require("os")
 const isDev = require("electron-is-dev")
 const { autoUpdater } = require("electron-updater")
 const unhandled = require("electron-unhandled")
+const { existsSync } = require("fs-extra")
+const initialiseBudibase = require("./utilities/initialiseBudibase")
+const { budibaseAppsDir } = require("./utilities/budibaseDir")
 
-require("dotenv").config({ path: join(homedir(), ".budibase", ".env") })
+const budibaseDir = budibaseAppsDir()
+const envFile = join(budibaseDir, ".env")
 
-if (isDev) {
-  unhandled({
-    showDialog: true,
+if (!existsSync(envFile)) {
+  // assume not initialised
+  initialiseBudibase({ dir: budibaseDir }).then(() => {
+    startApp()
   })
+} else {
+  startApp()
 }
 
-const APP_URL = "http://localhost:4001/_builder"
-const APP_TITLE = "Budibase Builder"
+function startApp() {
+  // evict environment from cache, so it reloads when next asked
+  delete require.cache[require.resolve("./environment")]
+  require("dotenv").config({ path: envFile })
 
-let win
-
-function handleRedirect(e, url) {
-  e.preventDefault()
-  shell.openExternal(url)
-}
-
-async function createWindow() {
-  app.server = await require("./app")()
-  win = new BrowserWindow({ width: 1920, height: 1080 })
-  win.setTitle(APP_TITLE)
-  win.loadURL(APP_URL)
   if (isDev) {
-    win.webContents.openDevTools()
-  } else {
-    autoUpdater.checkForUpdatesAndNotify()
+    unhandled({
+      showDialog: true,
+    })
   }
 
-  // open _blank in default browser
-  win.webContents.on("new-window", handleRedirect)
-  win.webContents.on("will-navigate", handleRedirect)
+  const APP_URL = "http://localhost:4001/_builder"
+  const APP_TITLE = "Budibase Builder"
+
+  let win
+
+  function handleRedirect(e, url) {
+    e.preventDefault()
+    shell.openExternal(url)
+  }
+
+  async function createWindow() {
+    app.server = await require("./app")()
+    win = new BrowserWindow({ width: 1920, height: 1080 })
+    win.setTitle(APP_TITLE)
+    win.loadURL(APP_URL)
+    if (isDev) {
+      win.webContents.openDevTools()
+    } else {
+      autoUpdater.checkForUpdatesAndNotify()
+    }
+
+    // open _blank in default browser
+    win.webContents.on("new-window", handleRedirect)
+    win.webContents.on("will-navigate", handleRedirect)
+  }
+
+  app.whenReady().then(createWindow)
+
+  // Quit when all windows are closed.
+  app.on("window-all-closed", () => {
+    // On macOS it is common for applications and their menu bar
+    // to stay active until the user quits explicitly with Cmd + Q
+    if (process.platform !== "darwin") app.quit()
+  })
+
+  app.on("activate", () => {
+    // On macOS it's common to re-create a window in the app when the
+    // dock icon is clicked and there are no other windows open.
+    if (win === null) createWindow()
+  })
 }
-
-app.whenReady().then(createWindow)
-
-// Quit when all windows are closed.
-app.on("window-all-closed", () => {
-  // On macOS it is common for applications and their menu bar
-  // to stay active until the user quits explicitly with Cmd + Q
-  if (process.platform !== "darwin") app.quit()
-})
-
-app.on("activate", () => {
-  // On macOS it's common to re-create a window in the app when the
-  // dock icon is clicked and there are no other windows open.
-  if (win === null) createWindow()
-})
diff --git a/packages/server/src/utilities/initialiseBudibase.js b/packages/server/src/utilities/initialiseBudibase.js
new file mode 100644
index 0000000000..87fedb434f
--- /dev/null
+++ b/packages/server/src/utilities/initialiseBudibase.js
@@ -0,0 +1,66 @@
+const { exists, readFile, writeFile, ensureDir } = require("fs-extra")
+const { join, resolve } = require("path")
+const Sqrl = require("squirrelly")
+const uuid = require("uuid")
+
+module.exports = async opts => {
+  await ensureDir(opts.dir)
+  await setCouchDbUrl(opts)
+
+  // need an env file to create the client database
+  await createDevEnvFile(opts)
+  await createClientDatabase(opts)
+
+  // need to recreate the env file, as we only now have a client id
+  // quiet flag will force overwrite of config
+  opts.quiet = true
+  await createDevEnvFile(opts)
+}
+
+const setCouchDbUrl = async opts => {
+  if (!opts.couchDbUrl) {
+    const dataDir = join(opts.dir, ".data")
+    await ensureDir(dataDir)
+    opts.couchDbUrl =
+      dataDir + (dataDir.endsWith("/") || dataDir.endsWith("\\") ? "" : "/")
+  }
+}
+
+const createDevEnvFile = async opts => {
+  const destConfigFile = join(opts.dir, "./.env")
+  let createConfig = !(await exists(destConfigFile)) || opts.quiet
+  if (createConfig) {
+    const template = await readFile(
+      resolve(__dirname, "..", "..", ".env.template"),
+      {
+        encoding: "utf8",
+      }
+    )
+    opts.cookieKey1 = opts.cookieKey1 || uuid.v4()
+    const config = Sqrl.Render(template, opts)
+    await writeFile(destConfigFile, config, { flag: "w+" })
+  }
+}
+
+const createClientDatabase = async opts => {
+  // cannot be a top level require as it
+  // will cause environment module to be loaded prematurely
+  const clientDb = require("../db/clientDb")
+
+  if (!opts.clientId || opts.clientId === "new") {
+    // cannot be a top level require as it
+    // will cause environment module to be loaded prematurely
+    const CouchDB = require("../db/client")
+    const existing = await CouchDB.allDbs()
+
+    let i = 0
+    let isExisting = true
+    while (isExisting) {
+      i += 1
+      opts.clientId = i.toString()
+      isExisting = existing.includes(clientDb.name(opts.clientId))
+    }
+  }
+
+  await clientDb.create(opts.clientId)
+}