diff --git a/Changelog.md b/Changelog.md
index bb8a0482..61181329 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -2,6 +2,9 @@
 
 This file only reflects the changes that are made in this image. Please refer to the upstream GitLab [CHANGELOG](https://gitlab.com/gitlab-org/gitlab-ce/blob/master/CHANGELOG) for the list of changes in GitLab.
 
+**latest**
+- added `GITLAB_DOWNLOADS_DIR` configuration parameter
+
 **8.2.1-1**
 - fixed typo while setting the value of `GITLAB_ARTIFACTS_DIR`
 
diff --git a/README.md b/README.md
index 637a7ceb..fef7fffb 100644
--- a/README.md
+++ b/README.md
@@ -776,6 +776,7 @@ Below is the complete list of available options that can be used to customize yo
 - **GITLAB_REPOS_DIR**: The git repositories folder in the container. Defaults to `/home/git/data/repositories`
 - **GITLAB_BACKUP_DIR**: The backup folder in the container. Defaults to `/home/git/data/backups`
 - **GITLAB_BUILDS_DIR**: The build traces directory. Defaults to `/home/git/data/builds`
+- **GITLAB_DOWNLOADS_DIR**: The repository downloads directory. A temporary zip is created in this directory when users click **Download Zip** on a project. Defaults to `/home/git/data/tmp/downloads`.
 - **GITLAB_SHARED_DIR**: The directory to store the build artifacts. Defaults to `/home/git/data/shared`
 - **GITLAB_ARTIFACTS_ENABLED**: Enable/Disable GitLab artifacts support. Defaults to `true`.
 - **GITLAB_ARTIFACTS_DIR**: Directory to store the artifacts. Defaults to `$GITLAB_SHARED_DIR/artifacts`
diff --git a/assets/runtime/config/gitlabhq/gitlab.yml b/assets/runtime/config/gitlabhq/gitlab.yml
index a8acc442..c40e8b05 100644
--- a/assets/runtime/config/gitlabhq/gitlab.yml
+++ b/assets/runtime/config/gitlabhq/gitlab.yml
@@ -93,7 +93,7 @@ production: &base
     ## Repository downloads directory
     # When a user clicks e.g. 'Download zip' on a project, a temporary zip file is created in the following directory.
     # The default is 'tmp/repositories' relative to the root of the Rails app.
-    # repository_downloads_path: tmp/repositories
+    repository_downloads_path: {{GITLAB_DOWNLOADS_DIR}}
 
   ## Reply by email
   # Allow users to comment on issues and merge requests by replying to notification emails.
diff --git a/assets/runtime/env-defaults b/assets/runtime/env-defaults
index 47dbacf3..df606040 100644
--- a/assets/runtime/env-defaults
+++ b/assets/runtime/env-defaults
@@ -6,6 +6,7 @@ DEBUG=${DEBUG:-$DEBUG_ENTRYPOINT}
 GITLAB_BACKUP_DIR="${GITLAB_BACKUP_DIR:-$GITLAB_DATA_DIR/backups}"
 GITLAB_REPOS_DIR="${GITLAB_REPOS_DIR:-$GITLAB_DATA_DIR/repositories}"
 GITLAB_BUILDS_DIR="${GITLAB_BUILDS_DIR:-$GITLAB_DATA_DIR/builds}"
+GITLAB_DOWNLOADS_DIR="${GITLAB_DOWNLOADS_DIR:-$GITLAB_DATA_DIR/tmp/downloads}"
 GITLAB_SHARED_DIR="${GITLAB_SHARED_DIR:-$GITLAB_DATA_DIR/shared}"
 
 GITLAB_HTTPS=${GITLAB_HTTPS:-false}
diff --git a/assets/runtime/functions b/assets/runtime/functions
index a46b81d2..538ee08d 100644
--- a/assets/runtime/functions
+++ b/assets/runtime/functions
@@ -767,6 +767,11 @@ initialize_datadir() {
   rm -rf ${GITLAB_INSTALL_DIR}/builds
   ln -sf ${GITLAB_BUILDS_DIR} ${GITLAB_INSTALL_DIR}/builds
 
+  # create downloads directory
+  mkdir -p ${GITLAB_DOWNLOADS_DIR}
+  chmod u+rwX ${GITLAB_DOWNLOADS_DIR}
+  chown ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_DOWNLOADS_DIR}
+
   # create shared directory
   mkdir -p ${GITLAB_SHARED_DIR}
   chmod u+rwX ${GITLAB_SHARED_DIR}
@@ -824,6 +829,9 @@ sanitize_datadir() {
   chmod -R u+rwX ${GITLAB_BUILDS_DIR}
   chown -R ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_BUILDS_DIR}
 
+  chmod -R u+rwX ${GITLAB_DOWNLOADS_DIR}
+  chown -R ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_DOWNLOADS_DIR}
+
   chmod -R u+rwX ${GITLAB_SHARED_DIR}
   chown -R ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_SHARED_DIR}
 
@@ -916,6 +924,7 @@ configure_gitlab() {
   exec_as_git sed -i 's|{{GITLAB_SHELL_INSTALL_DIR}}|'"${GITLAB_SHELL_INSTALL_DIR}"'|g' ${GITLAB_INSTALL_DIR}/config/gitlab.yml
   exec_as_git sed -i 's|{{GITLAB_DATA_DIR}}|'"${GITLAB_DATA_DIR}"'|g' ${GITLAB_INSTALL_DIR}/config/gitlab.yml
   exec_as_git sed -i 's|{{GITLAB_REPOS_DIR}}|'"${GITLAB_REPOS_DIR}"'|g' ${GITLAB_INSTALL_DIR}/config/gitlab.yml
+  exec_as_git sed -i 's|{{GITLAB_DOWNLOADS_DIR}}|'"${GITLAB_DOWNLOADS_DIR}"'|g' ${GITLAB_INSTALL_DIR}/config/gitlab.yml
   exec_as_git sed -i 's|{{GITLAB_SHARED_DIR}}|'"${GITLAB_SHARED_DIR}"'|g' ${GITLAB_INSTALL_DIR}/config/gitlab.yml
 
   exec_as_git sed -i 's|{{GITLAB_HOST}}|'"${GITLAB_HOST}"'|' ${GITLAB_INSTALL_DIR}/config/gitlab.yml