diff --git a/cdist/context.py b/cdist/context.py
index 767b17a8..e0391be8 100644
--- a/cdist/context.py
+++ b/cdist/context.py
@@ -38,7 +38,7 @@ class Context(object):
         remote_copy,
         remote_exec,
         initial_manifest=False,
-        add_conf_dirs=[],
+        add_conf_dirs=None,
         exec_path=sys.argv[0],
         debug=False):
 
diff --git a/cdist/exec/local.py b/cdist/exec/local.py
index 7ef11458..7f640411 100644
--- a/cdist/exec/local.py
+++ b/cdist/exec/local.py
@@ -23,6 +23,7 @@
 import io
 import os
 import sys
+import re
 import subprocess
 import shutil
 import logging
@@ -37,7 +38,7 @@ class Local(object):
     Directly accessing the local side from python code is a bug.
 
     """
-    def __init__(self, target_host, out_path, exec_path, add_conf_dirs=[], cache_dir=None):
+    def __init__(self, target_host, out_path, exec_path, add_conf_dirs=None, cache_dir=None):
 
         self.target_host = target_host
         self.out_path = out_path
@@ -92,6 +93,12 @@ class Local(object):
         if self.home_dir:
             self.conf_dirs.append(self.home_dir)
 
+        # Add directories defined in the CDIST_PATH environment variable
+        if 'CDIST_PATH' in os.environ:
+            cdist_path_dirs = re.split(r'(?<!\\):', os.environ['CDIST_PATH'])
+            cdist_path_dirs.reverse()
+            self.conf_dirs.extend(cdist_path_dirs)
+
         # Add user supplied directories
         if self._add_conf_dirs:
             self.conf_dirs.extend(self._add_conf_dirs)
diff --git a/cdist/test/exec/local.py b/cdist/test/exec/local.py
index 687c13a5..6cb0c605 100644
--- a/cdist/test/exec/local.py
+++ b/cdist/test/exec/local.py
@@ -122,6 +122,25 @@ class LocalTestCase(test.CdistTestCase):
 
         self.assertTrue(os.path.isdir(our_type_dir))
 
+    def test_conf_dir_from_path_linking(self):
+        """Ensure that links are correctly created for types in conf directories which are defined in CDIST_PATH"""
+
+        test_type="__cdist_test_type"
+
+        os.environ['CDIST_PATH'] = conf_dir
+
+        link_test_local = local.Local(
+            target_host='localhost',
+            out_path=self.out_path,
+            exec_path=test.cdist_exec_path,
+        )
+
+        link_test_local._create_conf_path_and_link_conf_dirs()
+
+        our_type_dir = os.path.join(link_test_local.type_path, test_type)
+
+        self.assertTrue(os.path.isdir(our_type_dir))
+
     ### other tests
 
     def test_run_success(self):
diff --git a/docs/man/man1/cdist.text b/docs/man/man1/cdist.text
index b92fba18..c52e3696 100644
--- a/docs/man/man1/cdist.text
+++ b/docs/man/man1/cdist.text
@@ -14,7 +14,7 @@ cdist [-h] [-V]
 
 cdist banner
 
-cdist config [-h] [-d] [-V] [-c CDIST_HOME] [-i MANIFEST] [-p] [-s] host [host ...]
+cdist config [-h] [-d] [-V] [-c CONF_DIR] [-i MANIFEST] [-p] [-s] host [host ...]
 
 
 
@@ -43,9 +43,14 @@ Configure a system
 -h, --help::
     Show the help screen
 
--c CDIST_HOME, --cdist-home CDIST_HOME::
-    Instead of using the parent of the bin directory as cdist home,
-    use the specified directory
+-c CONF_DIR, --conf-dir CONF_DIR::
+    Add a configuration directory. Can be specified multiple times.
+    If configuration directories contain conflicting types, explorers or
+    manifests, then the last one found is used. Additionally this can also
+    be configured by setting the CDIST_PATH environment variable to a colon
+    delimited list of config directories. Directories given with the
+    --conf-dir argument have higher precedence over those set through the
+    environment variable.
 
 -d, --debug::
     Enable debug output