diff --git a/CHANGELOG.md b/CHANGELOG.md
index a4532244d..d247221a8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,8 @@
     TTY (and hence can't confirm). [GH-779]
   - Fix an issue with the `:vagrantfile_name` option to `Vagrant::Environment`
     not working properly. [GH-778]
+  - `VAGRANT_CWD` environmental variable can be used to set the CWD to
+    something other than the current directory.
 
 ## 1.0.0 (March 6, 2012)
 
diff --git a/lib/vagrant/environment.rb b/lib/vagrant/environment.rb
index f11923ee2..efd800546 100644
--- a/lib/vagrant/environment.rb
+++ b/lib/vagrant/environment.rb
@@ -56,6 +56,7 @@ module Vagrant
       }.merge(opts || {})
 
       # Set the default working directory to look for the vagrantfile
+      opts[:cwd] ||= ENV["VAGRANT_CWD"] if ENV.has_key?("VAGRANT_CWD")
       opts[:cwd] ||= Dir.pwd
       opts[:cwd] = Pathname.new(opts[:cwd])
 
diff --git a/test/unit/vagrant/environment_test.rb b/test/unit/vagrant/environment_test.rb
index 4a51047c4..2df46366b 100644
--- a/test/unit/vagrant/environment_test.rb
+++ b/test/unit/vagrant/environment_test.rb
@@ -20,6 +20,10 @@ describe Vagrant::Environment do
       instance = described_class.new(:cwd => "foobarbaz")
       instance.cwd.should == Pathname.new("foobarbaz")
     end
+
+    it "is set to the environmental variable VAGRANT_CWD" do
+      pending "A good temporary ENV thing"
+    end
   end
 
   describe "home path" do