diff --git a/packages/cli/src/commands/new/newHandler.js b/packages/cli/src/commands/new/newHandler.js
index 3434000cb5..19b4dfb2a7 100644
--- a/packages/cli/src/commands/new/newHandler.js
+++ b/packages/cli/src/commands/new/newHandler.js
@@ -2,17 +2,18 @@ const { getAppContext } = require("../../common");
 const { 
     getMasterApisWithFullAccess 
 } = require("@budibase/server/utilities/budibaseApi");
-const { copy, readJSON, writeJSON, remove } = require("fs-extra");
+const { copy, readJSON, writeJSON, remove, exists } = require("fs-extra");
 const { resolve, join } = require("path");
 const thisPackageJson = require("../../../package.json");
 const {exec} = require('child_process');
 
-module.exports = ({name}) => {
-    run({name});
+module.exports = (opts) => {
+    run(opts);
 }
 
 const run = async (opts) => {
     const context = await getAppContext({configName:opts.config, masterIsCreated:true}); 
+    opts.config = context.config;
     const bb = await getMasterApisWithFullAccess(context);
 
     const app = bb.recordApi.getNew("/applications", "application");
@@ -28,11 +29,14 @@ const createEmtpyAppPackage = async (opts) => {
     const templateFolder = resolve(
         __dirname, "appPackageTemplate");
 
-    const destinationFolder = resolve(".", opts.name);
+    const appsFolder = opts.config.latestPackagesFolder || ".";
+    const destinationFolder = resolve(appsFolder, opts.name);
+
+    if(await exists(destinationFolder)) return;
 
     await copy(templateFolder, destinationFolder);
 
-    const packageJsonPath = join(opts.name, "package.json");
+    const packageJsonPath = join(appsFolder, opts.name, "package.json");
     const packageJson = await readJSON(packageJsonPath);
 
     packageJson.name = opts.name;
diff --git a/packages/cli/src/common.js b/packages/cli/src/common.js
index 1bd4e852c9..6b3b24bc09 100644
--- a/packages/cli/src/common.js
+++ b/packages/cli/src/common.js
@@ -20,6 +20,6 @@ module.exports.getAppContext = async ({configName, masterIsCreated}) => {
         configName = "config.js";
     }
 
-    const config = require(join(cwd(), configName))();
+    const config = require(resolve(cwd(), configName))();
     return await buildAppContext(config, masterIsCreated);
 }
\ No newline at end of file
diff --git a/packages/server/package.json b/packages/server/package.json
index 3986ab3fb5..4ea1f3c060 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -6,7 +6,7 @@
   "scripts": {
     "test": "jest",
     "build": "cd appPackages/_master && yarn && cd ../testApp && yarn && cd ../testApp2 && yarn",
-    "initialise": "node initialise/initialiseBudibase --datastore local --username admin --password admin --rootPath .data --cleanDev",
+    "initialise": "node initialise/initialiseBudibase --datastore local --username admin --password admin --rootPath .data --cleanDev && node ../cli/bin/budi new testApp2",
     "dev:builder": "node index"
   },
   "keywords": [