diff --git a/args.go b/args.go
index 474bec8..577f027 100644
--- a/args.go
+++ b/args.go
@@ -11,7 +11,6 @@ import (
 type args struct {
 	ShowHelp  bool
 	DataDir   string
-	BlobDir   string
 	CtlNet    string
 	CtlAddr   string
 	RegenKeys bool
@@ -19,7 +18,7 @@ type args struct {
 	CleanUp   bool
 }
 
-func defaultGrumbleDir() string {
+func defaultDataDir() string {
 	dirname := ".grumble"
 	if runtime.GOOS == "windows" {
 		dirname = "grumble"
@@ -27,14 +26,6 @@ func defaultGrumbleDir() string {
 	return filepath.Join(os.Getenv("HOME"), dirname)
 }
 
-func defaultDataDir() string {
-	return filepath.Join(defaultGrumbleDir(), "data")
-}
-
-func defaultBlobDir() string {
-	return filepath.Join(defaultGrumbleDir(), "blob")
-}
-
 func defaultCtlNet() string {
 	if runtime.GOOS == "windows" {
 		return "tcp"
@@ -46,7 +37,7 @@ func defaultCtlAddr() string {
 	if runtime.GOOS == "windows" {
 		return "localhost:5454"
 	}
-	return filepath.Join(defaultGrumbleDir(), ".ctl")
+	return filepath.Join(defaultDataDir(), ".ctl")
 }
 
 func Usage() {
@@ -60,7 +51,6 @@ var Args args
 func init() {
 	flag.BoolVar(&Args.ShowHelp, "help", false, "Show this help")
 	flag.StringVar(&Args.DataDir, "datadir", defaultDataDir(), "Directory to use for server storage")
-	flag.StringVar(&Args.BlobDir, "blobdir", defaultBlobDir(), "Directory to use for blob storage")
 	flag.StringVar(&Args.CtlNet, "ctlnet", defaultCtlNet(), "Network to use for ctl socket")
 	flag.StringVar(&Args.CtlAddr, "ctladdr", defaultCtlAddr(), "Address to use for ctl socket")
 	flag.BoolVar(&Args.RegenKeys, "regenkeys", false, "Force Grumble to regenerate its global RSA keypair and certificate")
diff --git a/grumble.go b/grumble.go
index 0a484f4..7177929 100644
--- a/grumble.go
+++ b/grumble.go
@@ -38,8 +38,23 @@ func main() {
 	log.SetFlags(log.LstdFlags | log.Lmicroseconds)
 	log.Printf("Grumble")
 
-	log.Printf("Using blob directory: %s", Args.BlobDir)
-	err = blobstore.Open(Args.BlobDir)
+	log.Printf("Using data directory: %s", Args.DataDir)
+
+	// Open the blobstore
+	blobDir := filepath.Join(Args.DataDir, "blob")
+	err = os.Mkdir(blobDir, 0700)
+	if err != nil {
+		exists := false
+		if e, ok := err.(*os.PathError); ok {
+			if e.Err == os.EEXIST {
+				exists = true	
+			}
+		}
+		if !exists {
+			log.Fatal("Unable to create blob directory: %v", err.Error())
+		}
+	}
+	err = blobstore.Open(blobDir)
 	if err != nil {
 		log.Fatalf("Unable to initialize blobstore: %v", err.Error())
 	}