diff --git a/lib/src/repo.rs b/lib/src/repo.rs
index 8570b3dd3..6bd633f8c 100644
--- a/lib/src/repo.rs
+++ b/lib/src/repo.rs
@@ -153,7 +153,6 @@ impl ReadonlyRepo {
 
     fn init_repo_dir(repo_path: &Path) {
         fs::create_dir(repo_path.join("store")).unwrap();
-        fs::create_dir(repo_path.join("working_copy")).unwrap();
         fs::create_dir(repo_path.join("view")).unwrap();
         fs::create_dir(repo_path.join("op_store")).unwrap();
         fs::create_dir(repo_path.join("op_heads")).unwrap();
diff --git a/lib/src/workspace.rs b/lib/src/workspace.rs
index 455b82c6f..447770714 100644
--- a/lib/src/workspace.rs
+++ b/lib/src/workspace.rs
@@ -58,10 +58,12 @@ fn init_working_copy(
     workspace_root: &Path,
     jj_dir: &Path,
 ) -> WorkingCopy {
+    let working_copy_state_path = jj_dir.join("working_copy");
+    std::fs::create_dir(&working_copy_state_path).unwrap();
     WorkingCopy::init(
         repo.store().clone(),
         workspace_root.to_path_buf(),
-        jj_dir.join("working_copy"),
+        working_copy_state_path,
         repo.op_id().clone(),
         repo.view().checkout().clone(),
     )