diff --git a/README.md b/README.md
index d57cbbae..37d23c06 100644
--- a/README.md
+++ b/README.md
@@ -719,6 +719,7 @@ Below is the complete list of available options that can be used to customize yo
 - **GITLAB_WEBHOOK_TIMEOUT**: Sets the timeout for webhooks. Defaults to `10` seconds.
 - **GITLAB_SATELLITES_TIMEOUT**: Sets the timeout for satellites. Defaults to `30` seconds.
 - **GITLAB_TIMEOUT**: Sets the timeout for git commands. Defaults to `10` seconds.
+- **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_BACKUPS**: Setup cron job to automatic backups. Possible values `disable`, `daily`, `weekly` or `monthly`. Disabled by default
 - **GITLAB_BACKUP_EXPIRY**: Configure how long (in seconds) to keep backups before they are deleted. By default when automated backups are disabled backups are kept forever (0 seconds), else the backups expire in 7 days (604800 seconds).
diff --git a/assets/config/gitlab-shell/config.yml b/assets/config/gitlab-shell/config.yml
index df407e9c..4cf6059d 100644
--- a/assets/config/gitlab-shell/config.yml
+++ b/assets/config/gitlab-shell/config.yml
@@ -20,7 +20,7 @@ http_settings:
 # Give the canonicalized absolute pathname,
 # REPOS_PATH MUST NOT CONTAIN ANY SYMLINK!!!
 # Check twice that none of the components is a symlink, including "/home".
-repos_path: "{{GITLAB_DATA_DIR}}/repositories"
+repos_path: "{{GITLAB_REPOS_DIR}}"
 
 # File used as authorized_keys for gitlab user
 auth_file: "{{GITLAB_HOME}}/.ssh/authorized_keys"
diff --git a/assets/config/gitlabhq/gitlab.yml b/assets/config/gitlabhq/gitlab.yml
index 0dd57eb2..8449a8b2 100644
--- a/assets/config/gitlabhq/gitlab.yml
+++ b/assets/config/gitlabhq/gitlab.yml
@@ -265,7 +265,7 @@ production: &base
     path: "{{GITLAB_SHELL_INSTALL_DIR}}/"
 
     # REPOS_PATH MUST NOT BE A SYMLINK!!!
-    repos_path: "{{GITLAB_DATA_DIR}}/repositories/"
+    repos_path: "{{GITLAB_REPOS_DIR}}/"
     hooks_path: "{{GITLAB_SHELL_INSTALL_DIR}}/hooks/"
 
     # File that contains the secret key for verifying access for gitlab-shell.
diff --git a/entrypoint.sh b/entrypoint.sh
index b5e562ed..2e56d7a2 100755
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -7,6 +7,7 @@ SYSCONF_TEMPLATES_DIR="${SETUP_DIR}/config"
 USERCONF_TEMPLATES_DIR="${GITLAB_DATA_DIR}/config"
 
 GITLAB_BACKUP_DIR="${GITLAB_BACKUP_DIR:-$GITLAB_DATA_DIR/backups}"
+GITLAB_REPOS_DIR="${GITLAB_REPOS_DIR:-$GITLAB_DATA_DIR/repositories}"
 GITLAB_HOST=${GITLAB_HOST:-localhost}
 GITLAB_PORT=${GITLAB_PORT:-}
 GITLAB_SSH_HOST=${GITLAB_SSH_HOST:-$GITLAB_HOST}
@@ -346,6 +347,7 @@ fi
 # configure application paths
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_DATA_DIR}},'"${GITLAB_DATA_DIR}"',g' -i config/gitlab.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_BACKUP_DIR}},'"${GITLAB_BACKUP_DIR}"',g' -i config/gitlab.yml
+sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_REPOS_DIR}},'"${GITLAB_REPOS_DIR}"',g' -i config/gitlab.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_INSTALL_DIR}},'"${GITLAB_INSTALL_DIR}"',g' -i config/gitlab.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_SHELL_INSTALL_DIR}},'"${GITLAB_SHELL_INSTALL_DIR}"',g' -i config/gitlab.yml
 
@@ -439,6 +441,7 @@ sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_HOME}},'"${GITLAB_HOME}"',g' -i ${GITLA
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_LOG_DIR}},'"${GITLAB_LOG_DIR}"',g' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_DATA_DIR}},'"${GITLAB_DATA_DIR}"',g' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_BACKUP_DIR}},'"${GITLAB_BACKUP_DIR}"',g' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
+sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_REPOS_DIR}},'"${GITLAB_REPOS_DIR}"',g' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
 sudo -HEu ${GITLAB_USER} sed 's,{{GITLAB_SHELL_INSTALL_DIR}},'"${GITLAB_SHELL_INSTALL_DIR}"',g' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
 sudo -HEu ${GITLAB_USER} sed 's/{{SSL_SELF_SIGNED}}/'"${SSL_SELF_SIGNED}"'/' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
 sudo -HEu ${GITLAB_USER} sed 's/{{REDIS_HOST}}/'"${REDIS_HOST}"'/' -i ${GITLAB_SHELL_INSTALL_DIR}/config.yml
@@ -690,10 +693,10 @@ chown ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_DATA_DIR}
 chmod +x ${GITLAB_DATA_DIR}
 
 # create the repositories directory and make sure it has the right permissions
-sudo -HEu ${GITLAB_USER} mkdir -p ${GITLAB_DATA_DIR}/repositories/
-chown ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_DATA_DIR}/repositories/
-chmod ug+rwX,o-rwx ${GITLAB_DATA_DIR}/repositories/
-sudo -HEu ${GITLAB_USER} chmod g+s ${GITLAB_DATA_DIR}/repositories/
+sudo -HEu ${GITLAB_USER} mkdir -p ${GITLAB_REPOS_DIR}/
+chown ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_REPOS_DIR}/
+chmod ug+rwX,o-rwx ${GITLAB_REPOS_DIR}/
+sudo -HEu ${GITLAB_USER} chmod g+s ${GITLAB_REPOS_DIR}/
 
 # create the satellites directory and make sure it has the right permissions
 sudo -HEu ${GITLAB_USER} mkdir -p ${GITLAB_DATA_DIR}/gitlab-satellites/
@@ -831,10 +834,10 @@ appStart () {
 
 appSanitize () {
   echo "Checking repository directories permissions..."
-  chmod -R ug+rwX,o-rwx ${GITLAB_DATA_DIR}/repositories/
-  chmod -R ug-s ${GITLAB_DATA_DIR}/repositories/
-  find ${GITLAB_DATA_DIR}/repositories/ -type d -print0 | xargs -0 chmod g+s
-  chown -R ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_DATA_DIR}/repositories
+  chmod -R ug+rwX,o-rwx ${GITLAB_REPOS_DIR}/
+  chmod -R ug-s ${GITLAB_REPOS_DIR}/
+  find ${GITLAB_REPOS_DIR}/ -type d -print0 | xargs -0 chmod g+s
+  chown -R ${GITLAB_USER}:${GITLAB_USER} ${GITLAB_REPOS_DIR}
 
   echo "Checking satellites directories permissions..."
   sudo -HEu ${GITLAB_USER} mkdir -p ${GITLAB_DATA_DIR}/gitlab-satellites/