diff --git a/src/utils.js b/src/utils.js
index dace41f9..9067a0d7 100644
--- a/src/utils.js
+++ b/src/utils.js
@@ -22,6 +22,9 @@ const repoExists = async (repoPath) => {
 }
 
 const defaultRepo = (type) => {
+  if (process.env.IPFS_PATH !== undefined) {
+    return process.env.IPFS_PATH
+  }
   return path.join(
     os.homedir(),
     type === 'js' || type === 'proc' ? '.jsipfs' : '.ipfs'
diff --git a/test/controller.spec.js b/test/controller.spec.js
index cb48b505..d13392da 100644
--- a/test/controller.spec.js
+++ b/test/controller.spec.js
@@ -71,6 +71,21 @@ describe('Controller API', function () {
   after(() => factory.clean())
 
   describe('init', () => {
+    it('should use process.IPFS_PATH', async () => {
+      const repoPath = await factory.tmpDir()
+      process.env.IPFS_PATH = repoPath
+      const ctl = await factory.spawn({
+        type: 'go',
+        disposable: false,
+        ipfsOptions: {
+          init: false,
+          start: false
+        }
+      })
+
+      expect(ctl.path).to.equal(repoPath)
+      process.env.IPFS_PATH = undefined
+    })
     describe('should work with defaults', () => {
       for (const opts of types) {
         it(`type: ${opts.type} remote: ${Boolean(opts.remote)}`, async () => {