diff --git a/assets/init b/assets/init
index 0ed76c17..f7e4edb7 100755
--- a/assets/init
+++ b/assets/init
@@ -161,6 +161,7 @@ sudo -u git -H sed 's/{{REDIS_HOST}}/'${REDIS_HOST}'/' -i /home/git/gitlab/confi
 sudo -u git -H sed 's/{{REDIS_PORT}}/'${REDIS_PORT}'/' -i /home/git/gitlab/config/resque.yml
 
 # configure gitlab-shell
+sudo -u git -H sed 's/{{GITLAB_HOST}}/'${GITLAB_HOST}'/' -i /home/git/gitlab-shell/config.yml
 sudo -u git -H sed 's/{{REDIS_HOST}}/'${REDIS_HOST}'/' -i /home/git/gitlab-shell/config.yml
 sudo -u git -H sed 's/{{REDIS_PORT}}/'${REDIS_PORT}'/' -i /home/git/gitlab-shell/config.yml
 
diff --git a/assets/setup/config.tar.bz2 b/assets/setup/config.tar.bz2
index d23a3809..f4bf40e4 100644
Binary files a/assets/setup/config.tar.bz2 and b/assets/setup/config.tar.bz2 differ
diff --git a/assets/setup/config/gitlab-shell/config.yml b/assets/setup/config/gitlab-shell/config.yml
index 43c17eaa..f3619b19 100644
--- a/assets/setup/config/gitlab-shell/config.yml
+++ b/assets/setup/config/gitlab-shell/config.yml
@@ -2,7 +2,7 @@
 user: git
 
 # Url to gitlab instance. Used for api calls. Should end with a slash.
-gitlab_url: "http://localhost/"
+gitlab_url: "http://{{GITLAB_HOST}}/"
 
 http_settings:
 #  user: someone