diff --git a/includes/install.core.inc b/includes/install.core.inc
index 2bd39a60dbb0b678176232ad081fbf4ce38f6f36..06d84bf8ae8567c3cc9385575c30ce12065c323e 100644
--- a/includes/install.core.inc
+++ b/includes/install.core.inc
@@ -970,11 +970,18 @@ function install_settings_form_submit($form, &$form_state) {
   );
   // This duplicates drupal_get_token() because that function relies on a 
   // global hash salt which hasn't been set yet.
-  $settings['drupal_config_directory'] = array(
+  $settings['drupal_config_directory_name'] = array(
     'value'     => 'config_' . drupal_hmac_base64($value, session_id() . drupal_get_private_key() . $settings['drupal_hash_salt']['value']),
     'required'  => TRUE,
   );
   drupal_rewrite_settings($settings);
+  // Actually create the config directory named above.
+  if (!file_prepare_directory(conf_path() . '/files/' . $settings['drupal_config_directory_name'], FILE_CREATE_DIRECTORY)) {
+    // How best to handle errors here?
+    
+    // Will also want to create a default .htaccess for this dir to block
+    // reading of json, xml, yaml, ini, others?
+  };
   // Indicate that the settings file has been verified, and check the database
   // for the last completed task, now that we have a valid connection. This
   // last step is important since we want to trigger an error if the new
diff --git a/sites/default/default.settings.php b/sites/default/default.settings.php
index 3ab5e7d65bb918444af2142db843c37be3feeed4..d5f8843b103bc61afdebba186682fd992200c321 100644
--- a/sites/default/default.settings.php
+++ b/sites/default/default.settings.php
@@ -215,16 +215,17 @@
  * Location of the site configuration files.
  *
  * By default, Drupal configuration files are stored in a randomly named
- * directory under the default public files path etc.
+ * directory under the default public files path. On install the
+ * named directory is created in the default files directory. For enhanced 
+ * security, you may set this variable to a location outside your docroot.
  *
- * For enhanced security, you may set this variable to a location
- * outside your docroot.
+ * @todo flesh this out, provide more details, etc.
  *
  * Example:
- *   $drupal_config_directory = '/some/directory/outside/webroot';
+ *   $drupal_config_directory_name = '/some/directory/outside/webroot';
  *
  */
-$drupal_config_directory = '';
+$drupal_config_directory_name = '';
 
 /**
  * Base URL (optional).