diff --git a/pkgs/clan-cli/clan_cli/dirs.py b/pkgs/clan-cli/clan_cli/dirs.py
index 172d29c78..553f0f720 100644
--- a/pkgs/clan-cli/clan_cli/dirs.py
+++ b/pkgs/clan-cli/clan_cli/dirs.py
@@ -68,7 +68,7 @@ def clan_config_dir() -> Path:
 
 
 def clan_flakes_dir() -> Path:
-    path = clan_data_dir() / "flake"
+    path = clan_config_dir() / "flakes"
     if not path.exists():
         log.debug(f"Creating path with parents {path}")
         path.mkdir(parents=True)
diff --git a/pkgs/clan-cli/tests/fixtures_flakes.py b/pkgs/clan-cli/tests/fixtures_flakes.py
index cc0ce0738..c50b382b7 100644
--- a/pkgs/clan-cli/tests/fixtures_flakes.py
+++ b/pkgs/clan-cli/tests/fixtures_flakes.py
@@ -55,7 +55,7 @@ def create_flake(
     template = Path(__file__).parent / flake_name
 
     # copy the template to a new temporary location
-    flake = temporary_home / ".local/share/clan/flake" / flake_name
+    flake = temporary_home / ".config/clan/flakes" / flake_name
     shutil.copytree(template, flake)
 
     # lookup the requested machines in ./test_machines and include them
diff --git a/pkgs/clan-cli/tests/temporary_dir.py b/pkgs/clan-cli/tests/temporary_dir.py
index 026998206..7bd2e656c 100644
--- a/pkgs/clan-cli/tests/temporary_dir.py
+++ b/pkgs/clan-cli/tests/temporary_dir.py
@@ -21,6 +21,7 @@ def temporary_home(monkeypatch: pytest.MonkeyPatch) -> Iterator[Path]:
     else:
         with tempfile.TemporaryDirectory(prefix="pytest-") as dirpath:
             monkeypatch.setenv("HOME", str(dirpath))
+            monkeypatch.setenv("XDG_CONFIG_HOME", str(Path(dirpath) / ".config"))
             monkeypatch.setenv("XDG_DATA_HOME", str(Path(dirpath) / ".local/share"))
             monkeypatch.chdir(str(dirpath))
             log.debug("Temp HOME directory: %s", str(dirpath))