diff --git a/scripts/vagrant-provisioning.sh b/scripts/vagrant-provisioning.sh
index 6a00035dcc..fc87b5b7f0 100755
--- a/scripts/vagrant-provisioning.sh
+++ b/scripts/vagrant-provisioning.sh
@@ -65,7 +65,7 @@ chown vagrant.vagrant /opt/edx
 [[ -f ~vagrant/.bash_profile ]] && {
     mv ~vagrant/.bash_profile ~vagrant/.bash_profile.bak
 }
-sudo -u vagrant -i bash -c "cd /opt/edx/edx-platform && ./scripts/create-dev-env.sh -ynq"
+sudo -u vagrant -i bash -c "cd /opt/edx/edx-platform && PROJECT_HOME=/opt/edx ./scripts/create-dev-env.sh -ynq"
 
 
 # Virtualenv - Always load ####################################################