diff --git a/src/lxc/bdev.c b/src/lxc/bdev.c
index 6d8860967..952cfebec 100644
--- a/src/lxc/bdev.c
+++ b/src/lxc/bdev.c
@@ -477,7 +477,10 @@ static int dir_destroy(struct bdev *orig)
 static int dir_create(struct bdev *bdev, const char *dest, const char *n,
 			struct bdev_specs *specs)
 {
-	bdev->src = strdup(dest);
+	if (specs->dir)
+		bdev->src = strdup(specs->dir);
+	else
+		bdev->src = strdup(dest);
 	bdev->dest = strdup(dest);
 	if (!bdev->src || !bdev->dest) {
 		ERROR("Out of memory");
diff --git a/src/lxc/bdev.h b/src/lxc/bdev.h
index 7efc1647f..cc0bf02bf 100644
--- a/src/lxc/bdev.h
+++ b/src/lxc/bdev.h
@@ -48,6 +48,7 @@ struct bdev_specs {
 		char *lv;
 		char *thinpool; // lvm thin pool to use, if any
 	} lvm;
+	char *dir;
 };
 
 struct bdev_ops {
diff --git a/src/lxc/lxc_create.c b/src/lxc/lxc_create.c
index a3684c16f..eee6ffd79 100644
--- a/src/lxc/lxc_create.c
+++ b/src/lxc/lxc_create.c
@@ -256,8 +256,7 @@ int main(int argc, char *argv[])
 			spec.lvm.thinpool = my_args.thinpool;
 	}
 	if (my_args.dir) {
-		ERROR("--dir is not yet supported");
-		exit(1);
+		spec.dir = my_args.dir;
 	}
 
 	if (strcmp(my_args.bdevtype, "_unset") == 0)