diff --git a/packages/server/.env.template b/packages/server/.env.template
index 3593f96ee8..170d391520 100644
--- a/packages/server/.env.template
+++ b/packages/server/.env.template
@@ -15,7 +15,4 @@ JWT_SECRET={{cookieKey1}}
 PORT=4001 
 
 # error level for koa-pino
-LOG_LEVEL=error
-
-# Budibase app directory
-BUDIBASE_DIR=~/.budibase
\ No newline at end of file
+LOG_LEVEL=error
\ No newline at end of file
diff --git a/packages/server/src/api/controllers/application.js b/packages/server/src/api/controllers/application.js
index 8953d5af21..9bd015c86a 100644
--- a/packages/server/src/api/controllers/application.js
+++ b/packages/server/src/api/controllers/application.js
@@ -6,6 +6,7 @@ const env = require("../../environment")
 const instanceController = require("./instance")
 const { resolve, join } = require("path")
 const { copy, exists, readFile, writeFile } = require("fs-extra")
+const { budibaseAppsDir } = require("../../utilities/budibaseDir")
 const { exec } = require("child_process")
 const sqrl = require("squirrelly")
 
@@ -73,7 +74,7 @@ const createEmptyAppPackage = async (ctx, app) => {
     "appDirectoryTemplate"
   )
 
-  const appsFolder = env.BUDIBASE_DIR
+  const appsFolder = budibaseAppsDir()
   const newAppFolder = resolve(appsFolder, app._id)
 
   if (await exists(newAppFolder)) {