diff --git a/ckan/cli/cli.py b/ckan/cli/cli.py
index 8a01aef82b0..d042ac7d6e4 100644
--- a/ckan/cli/cli.py
+++ b/ckan/cli/cli.py
@@ -1,6 +1,7 @@
 # encoding: utf-8
 
 import logging
+import sys
 
 import click
 from ckan.cli import config_tool
@@ -43,6 +44,10 @@ def __init__(self, conf=None):
 @click_config_option
 @click.pass_context
 def ckan(ctx, config, *args, **kwargs):
+    # This is necessary to allow the user to create
+    # a config file when one isn't already present
+    if all(arg in sys.argv for arg in ['generate', 'config']):
+        return
     ctx.obj = CkanCommand(config)
 
 
diff --git a/ckan/cli/generate.py b/ckan/cli/generate.py
index a8636ce468d..e7973370d7a 100644
--- a/ckan/cli/generate.py
+++ b/ckan/cli/generate.py
@@ -83,13 +83,17 @@ def extension(output_dir):
 
 @generate.command(name=u'config', short_help=u'Create config from template.')
 @click.option(u'-o', u'--output-dir', help=u'Location to put the generated '
-                                           u'template.', default=u'.')
+                                           u'template.')
 def make_config(output_dir):
-    if not any(name in output_dir for name in
-               ['development.ini', 'production.ini']):
+    names = ['development.ini', 'production.ini']
+
+    if not any(name in output_dir for name in names):
         print('\nERROR: File name must be development.ini or production.ini')
         sys.exit(1)
 
+    if output_dir in names:
+        output_dir = os.getcwd() + '/' + output_dir
+
     cur_loc = os.path.dirname(os.path.abspath(__file__))
     os.chdir(cur_loc)
     os.chdir('../config')
@@ -103,7 +107,6 @@ def make_config(output_dir):
 
     with open(template_loc, 'r') as file_in:
         template = string.Template(file_in.read())
-        print(output_dir)
 
         try:
             with open(output_dir, 'w') as file_out: