diff --git a/startup.cmd b/startup.cmd
index 386f70f3..4aba054c 100755
--- a/startup.cmd
+++ b/startup.cmd
@@ -49,7 +49,7 @@ ECHO Parsing parameters...
 SET PYTHONPATH=%TABPY_ROOT%\tabpy-server;%TABPY_ROOT%\tabpy-tools;%PYTHONPATH%
 SET STARTUP_CMD=python tabpy-server\tabpy_server\tabpy.py
 IF [%1] NEQ [] (
-    ECHO     Using config file at %TABPY_ROOT%\tabpy-server\tabpy_server\%1
+    ECHO     Using config file at %1
     SET STARTUP_CMD=%STARTUP_CMD% --config=%1
 )
 
diff --git a/tabpy-server/server_tests/test_config.py b/tabpy-server/server_tests/test_config.py
index 9e8194e4..7c4d8533 100644
--- a/tabpy-server/server_tests/test_config.py
+++ b/tabpy-server/server_tests/test_config.py
@@ -35,7 +35,7 @@ def test_no_config_file(self, mock_os, mock_file_exists,
 
         getenv_calls = [call('TABPY_PORT', 9004),
                         call('TABPY_QUERY_OBJECT_PATH', '/tmp/query_objects'),
-                        call('TABPY_STATE_PATH', './')]
+                        call('TABPY_STATE_PATH', './tabpy-server/tabpy_server')]
         mock_os.getenv.assert_has_calls(getenv_calls, any_order=True)
         self.assertEqual(len(mock_file_exists.mock_calls), 2)
         self.assertEqual(len(mock_psws.mock_calls), 1)
@@ -113,15 +113,11 @@ def raise_attribute_error():
     def __init__(self, *args, **kwargs):
         super(TestTransferProtocolValidation, self).__init__(*args, **kwargs)
         self.fp = None
-        self.cwd = os.getcwd()
-        self.tabpy_cwd = os.path.join(self.cwd, 'tabpy-server', 'tabpy_server')
 
     def setUp(self):
-        os.chdir(self.tabpy_cwd)
         self.fp = NamedTemporaryFile(mode='w+t', delete=False)
 
     def tearDown(self):
-        os.chdir(self.cwd)
         os.remove(self.fp.name)
         self.fp = None
 
diff --git a/tabpy-server/server_tests/test_pwd_file.py b/tabpy-server/server_tests/test_pwd_file.py
index 57c59307..c431cae8 100755
--- a/tabpy-server/server_tests/test_pwd_file.py
+++ b/tabpy-server/server_tests/test_pwd_file.py
@@ -13,17 +13,12 @@
 
 class TestPasswordFile(unittest.TestCase):
     def setUp(self):
-        self.cwd = pathlib.Path.cwd()
-        self.tabpy_cwd = self.cwd / 'tabpy-server' / 'tabpy_server'
-        os.chdir(self.tabpy_cwd)
-
         self.config_file = NamedTemporaryFile(mode='w', delete=False)
         self.config_file.close()
         self.pwd_file = NamedTemporaryFile(mode='w', delete=False)
         self.pwd_file.close()
 
     def tearDown(self):
-        os.chdir(self.cwd)
         os.remove(self.config_file.name)
         self.config_file = None
         os.remove(self.pwd_file.name)
diff --git a/tabpy-server/tabpy_server/app/app.py b/tabpy-server/tabpy_server/app/app.py
index ef97ce43..ab09297e 100644
--- a/tabpy-server/tabpy_server/app/app.py
+++ b/tabpy-server/tabpy_server/app/app.py
@@ -208,7 +208,8 @@ def set_parameter(settings_key,
         # if state.ini does not exist try and create it - remove
         # last dependence on batch/shell script
         set_parameter('state_file_path', ConfigParameters.TABPY_STATE_PATH,
-                      default_val='./', check_env_var=True)
+                      default_val='./tabpy-server/tabpy_server',
+                      check_env_var=True)
         self.settings['state_file_path'] = os.path.realpath(
             os.path.normpath(
                 os.path.expanduser(self.settings['state_file_path'])))