diff --git a/Dockerfile b/Dockerfile
index f93e5a72..2eb7bee4 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -4,7 +4,8 @@ MAINTAINER sameer@damagehead.com
 ENV GITLAB_VERSION=7.11.4 \
     GITLAB_SHELL_VERSION=2.6.3 \
     GITLAB_HOME="/home/git" \
-    GITLAB_LOG_DIR="/var/log/gitlab"
+    GITLAB_LOG_DIR="/var/log/gitlab" \
+    SETUP_DIR="/app/setup"
 
 ENV GITLAB_INSTALL_DIR="${GITLAB_HOME}/gitlab" \
     GITLAB_SHELL_INSTALL_DIR="${GITLAB_HOME}/gitlab-shell" \
@@ -31,10 +32,10 @@ RUN apt-key adv --keyserver keyserver.ubuntu.com --recv E1DD270288B4E6030699E45F
  && gem install --no-document bundler \
  && rm -rf /var/lib/apt/lists/*
 
-COPY assets/setup/ /app/setup/
-RUN bash /app/setup/install
+COPY assets/setup/ ${SETUP_DIR}/
+RUN bash ${SETUP_DIR}/install
 
-COPY assets/config/ /app/setup/config/
+COPY assets/config/ ${SETUP_DIR}/config/
 COPY assets/init /app/init
 RUN chmod 755 /app/init
 
diff --git a/assets/init b/assets/init
index 9d6fd80e..4610abd4 100755
--- a/assets/init
+++ b/assets/init
@@ -3,7 +3,6 @@ set -e
 
 GITLAB_BACKUP_DIR="${GITLAB_BACKUP_DIR:-$GITLAB_DATA_DIR/backups}"
 
-SETUP_DIR="/app/setup"
 SYSCONF_TEMPLATES_DIR="${SETUP_DIR}/config"
 USERCONF_TEMPLATES_DIR="${GITLAB_DATA_DIR}/config"
 
diff --git a/assets/setup/install b/assets/setup/install
index 10c4fbde..da77347a 100755
--- a/assets/setup/install
+++ b/assets/setup/install
@@ -1,7 +1,6 @@
 #!/bin/bash
 set -e
 
-SETUP_DIR="/app/setup"
 GEM_CACHE_DIR="${SETUP_DIR}/cache"
 
 # rebuild apt cache