diff --git a/uppsrc/ide/BaseDlg.cpp b/uppsrc/ide/BaseDlg.cpp
index 720fb4297..198502ccf 100644
--- a/uppsrc/ide/BaseDlg.cpp
+++ b/uppsrc/ide/BaseDlg.cpp
@@ -203,12 +203,13 @@ BaseSetupDlg::BaseSetupDlg()
 	DirSelect(output, output_sel);
 	DirSelect(upv, upv_sel);
 	upv.NullText(GetHubDir());
+	output.NullText(GetUppOut());
 }
 
 bool BaseSetupDlg::Run(String& vars)
 {
 	upp     <<= GetVar("UPP");
-	output  <<= GetVar("OUTPUT");
+	output  <<= GetUppOut();
 	upv     <<= GetVar("UPPHUB");
 	base    <<= vars;
 	new_base = IsNull(vars);
diff --git a/uppsrc/ide/Build.cpp b/uppsrc/ide/Build.cpp
index b111d961f..505e69ad9 100644
--- a/uppsrc/ide/Build.cpp
+++ b/uppsrc/ide/Build.cpp
@@ -119,7 +119,7 @@ void Ide::PackageClean()
 
 void Ide::CleanUppOut()
 {
-	String out = GetVar("OUTPUT");
+	String out = GetOutputDir();
 	if(!PromptYesNo(Format("Erase the whole output directory [* \1%s\1]?", out)))
 		return;
 	console.Clear();
diff --git a/uppsrc/ide/Builders/Build.cpp b/uppsrc/ide/Builders/Build.cpp
index 5663fcf81..eedaa5d76 100644
--- a/uppsrc/ide/Builders/Build.cpp
+++ b/uppsrc/ide/Builders/Build.cpp
@@ -261,7 +261,7 @@ String MakeBuild::OutDir(const Index<String>& cfg, const String& package, const
 	Sort(x);
 	for(int i = 0; i < x.GetCount(); i++)
 		x[i] = InitCaps(x[i]);
-	String outdir = GetVar("OUTPUT");
+	String outdir = GetUppOut();
 	if(output_per_assembly)
 		outdir = AppendFileName(outdir, GetAssemblyId());
 	if(!use_target)
diff --git a/uppsrc/ide/Builders/CCJ.cpp b/uppsrc/ide/Builders/CCJ.cpp
index 56b1963d7..e75fc0cda 100644
--- a/uppsrc/ide/Builders/CCJ.cpp
+++ b/uppsrc/ide/Builders/CCJ.cpp
@@ -174,7 +174,7 @@ void MakeBuild::SaveCCJ(const String& fn, bool exporting)
 	String makefile;
 
 	Vector<String> uppdirs = GetUppDirs();
-	String uppout = exporting ? GetVar("OUTPUT") : ".cache/upp.out";
+	String uppout = exporting ? GetUppOut() : ".cache/upp.out";
 
 	Index<String> allconfig = PackageConfig(GetIdeWorkspace(), 0, bm, mainconfigparam, host, *b);
 	bool win32 = allconfig.Find("WIN32") >= 0;
diff --git a/uppsrc/ide/Builders/Install.cpp b/uppsrc/ide/Builders/Install.cpp
index b543b0f16..4c75904f9 100644
--- a/uppsrc/ide/Builders/Install.cpp
+++ b/uppsrc/ide/Builders/Install.cpp
@@ -194,30 +194,4 @@ void CreateBuildMethods()
 #endif
 }
 
-String GetDefaultUppOut()
-{
-	String out;
-	String p = GetExeFolder();
-	while(p.GetCount() > 1 && DirectoryExists(p)) {
-		String h = AppendFileName(p, ".cache");
-		if(DirectoryExists(h)) {
-			out = h;
-			break;
-		}
-		p = GetFileFolder(p);
-	}
-	
-	out = Nvl(out, GetHomeDirFile(".cache")) + "/upp.out";
-	
-	RealizeDirectory(out);
-	return out;
-}
-
-#else
-
-String GetDefaultUppOut()
-{
-	return ConfigFile("_out");
-}
-
 #endif
diff --git a/uppsrc/ide/Builders/MakeFile.cpp b/uppsrc/ide/Builders/MakeFile.cpp
index c28d35838..679dc4349 100644
--- a/uppsrc/ide/Builders/MakeFile.cpp
+++ b/uppsrc/ide/Builders/MakeFile.cpp
@@ -283,7 +283,7 @@ void MakeBuild::SaveMakeFile(const String& fn, bool exporting)
 	String makefile;
 
 	Vector<String> uppdirs = GetUppDirs();
-	String uppout = exporting ? GetVar("OUTPUT") : ".cache/upp.out";
+	String uppout = exporting ? GetUppOut() : ".cache/upp.out";
 	String inclist;
 
 	Index<String> allconfig = PackageConfig(GetIdeWorkspace(), 0, bm, mainconfigparam, host, *b);
diff --git a/uppsrc/ide/Core/Assembly.cpp b/uppsrc/ide/Core/Assembly.cpp
index 3435d0126..d40c0d2ea 100644
--- a/uppsrc/ide/Core/Assembly.cpp
+++ b/uppsrc/ide/Core/Assembly.cpp
@@ -151,6 +151,41 @@ bool SaveVars(const char *name)
 	return true;
 }
 
+#ifdef PLATFORM_POSIX
+
+String GetDefaultUppOut()
+{
+	String out;
+	String p = GetExeFolder();
+	while(p.GetCount() > 1 && DirectoryExists(p)) {
+		String h = AppendFileName(p, ".cache");
+		if(DirectoryExists(h)) {
+			out = h;
+			break;
+		}
+		p = GetFileFolder(p);
+	}
+	
+	out = Nvl(out, GetHomeDirFile(".cache")) + "/upp.out";
+	
+	RealizeDirectory(out);
+	return out;
+}
+
+#else
+
+String GetDefaultUppOut()
+{
+	return ConfigFile("out");
+}
+
+#endif
+
+String GetUppOut()
+{
+	return Nvl(GetVar("OUTPUT"), GetDefaultUppOut());
+}
+
 String DefaultHubFilePath()
 {
 	return ConfigFile("UppHub.path");
diff --git a/uppsrc/ide/Core/Core.h b/uppsrc/ide/Core/Core.h
index e1384b1f7..805f8a34e 100644
--- a/uppsrc/ide/Core/Core.h
+++ b/uppsrc/ide/Core/Core.h
@@ -293,6 +293,8 @@ public:
 
 Nest& MainNest();
 
+String GetUppOut();
+
 String DefaultHubFilePath();
 
 void   SetHubDir(const String& path);
diff --git a/uppsrc/ide/Errors.cpp b/uppsrc/ide/Errors.cpp
index 297b4eb2c..590a75969 100644
--- a/uppsrc/ide/Errors.cpp
+++ b/uppsrc/ide/Errors.cpp
@@ -99,7 +99,7 @@ bool Ide::FindLineError(const String& ln, FindLineErrorCache& cache, ListLineInf
 					if(IsNull(f.message))
 						f.message = ln;
 					Vector<String> conf = SplitFlags(mainconfigparam, true);
-					String uppout = GetVar("OUTPUT");
+					String uppout = GetOutputDir();
 					int upplen = uppout.GetLength();
 					if(cache.is_java && f.file.GetLength() > upplen
 					&& !MemICmp(f.file, uppout, upplen) && f.file[upplen] == DIR_SEP) { // check for preprocessed file
diff --git a/uppsrc/ide/InstantSetup.cpp b/uppsrc/ide/InstantSetup.cpp
index b6e7effc6..6a1df70a8 100644
--- a/uppsrc/ide/InstantSetup.cpp
+++ b/uppsrc/ide/InstantSetup.cpp
@@ -486,8 +486,7 @@ void InstantSetup()
 
 	String exe = GetExeFilePath();
 	String dir = GetFileFolder(exe);
-	String out = GetExeDirFile("out");
-	RealizeDirectory(out);
+	RealizeDirectory(GetUppOut());
 
 	for(int i = 0; i < __countof(ass); i++) {
 		String vf = GetExeDirFile(String(ass[i].a) + ".var");
@@ -510,7 +509,6 @@ void InstantSetup()
 			b.Replace("#", dir);
 			SaveFile(vf,
 				"UPP = " + AsCString(b) + ";\r\n"
-				"OUTPUT = " + AsCString(out) + ";\r\n"
 			);
 			dirty = true;
 		}
diff --git a/uppsrc/ide/SetupGIT.cpp b/uppsrc/ide/SetupGIT.cpp
index 75fe9c1a4..0561f76a0 100644
--- a/uppsrc/ide/SetupGIT.cpp
+++ b/uppsrc/ide/SetupGIT.cpp
@@ -38,15 +38,13 @@ bool SetupGITMaster()
 	}
 
 #ifdef PLATFORM_WIN32
-	String out = GetExeDirFile("out");
 	String ass = GetExeFolder();
 	String myapps = GetExeDirFile("MyApps");
 #else
-	String out = GetHomeDirFile("out");
 	String ass = GetConfigFolder();
 	String myapps = GetHomeDirFile("MyApps");
 #endif
-	RealizeDirectory(out);
+	RealizeDirectory(GetUppOut());
 	
 	String uppsrc = AppendFileName(dir, "uppsrc");
 
@@ -58,7 +56,6 @@ bool SetupGITMaster()
 		console.Log("Creating assembly " + a);
 		SaveFile(a,
 			"UPP = " + AsCString(b) + ";\r\n"
-			"OUTPUT = " + AsCString(out) + ";\r\n"
 		);
 	};
 
diff --git a/uppsrc/umk/umake.cpp b/uppsrc/umk/umake.cpp
index 3bada1f3b..73d960434 100644
--- a/uppsrc/umk/umake.cpp
+++ b/uppsrc/umk/umake.cpp
@@ -223,7 +223,7 @@ CONSOLE_APP_MAIN
 			PutVerbose("Assembly file: " + v);
 			PutVerbose("Assembly: " + GetVar("UPP"));
 		}
-		PutVerbose("Output directory: " + GetVar("OUTPUT"));
+		PutVerbose("Output directory: " + GetUppOut());
 		ide.main = param[1];
 		v = SourcePath(ide.main, GetFileTitle(ide.main) + ".upp");
 		PutVerbose("Main package: " + v);