diff --git a/Keter/App.hs b/Keter/App.hs
--- a/Keter/App.hs
+++ b/Keter/App.hs
@@ -23,6 +23,7 @@
 import qualified Codec.Archive.Tar.Entry as Tar
 import Codec.Compression.GZip (decompress)
 import qualified Filesystem.Path.CurrentOS as F
+import qualified Filesystem as F
 import Data.Yaml
 import Control.Applicative ((<$>), (<*>))
 import qualified Network
@@ -40,6 +41,7 @@
 import Data.Text.Encoding (encodeUtf8)
 import System.Posix.Types (UserID, GroupID)
 import System.Posix.Files.ByteString (setOwnerAndGroup, setFdOwnerAndGroup)
+import Control.Monad (unless)
 
 data Config = Config
     { configExec :: F.FilePath
@@ -101,7 +103,7 @@
     case elbs of
         Left e -> return $ Left e
         Right lbs -> do
-            edir <- getFolder tf appname
+            edir <- getFolder muid tf appname
             case edir of
                 Left e -> return $ Left e
                 Right dir -> do
@@ -133,6 +135,19 @@
     fp0 = shRoot sh
     fp = F.collapse $ dir F.</> "config" F.</> fp0
 
+-- | Create a directory tree, setting the uid and gid of all newly created
+-- folders.
+createTreeUID :: UserID -> GroupID -> FilePath -> IO ()
+createTreeUID uid gid =
+    go
+  where
+    go fp = do
+        exists <- F.isDirectory fp
+        unless exists $ do
+            go $ F.parent fp
+            F.createDirectory False fp
+            setOwnerAndGroup (F.encode fp) uid gid
+
 unpackTar :: Maybe (UserID, GroupID)
           -> FilePath -> Tar.Entries Tar.FormatError -> IO ()
 unpackTar muid dir =
@@ -146,10 +161,9 @@
         let fp = dir </> decodeString (Tar.entryPath e)
         case Tar.entryContent e of
             Tar.NormalFile lbs _ -> do
-                createTree $ F.directory fp
                 case muid of
-                    Nothing -> return ()
-                    Just (uid, gid) -> setOwnerAndGroup (F.encode $ F.directory fp) uid gid
+                    Nothing -> createTree $ F.directory fp
+                    Just (uid, gid) -> createTreeUID uid gid $ F.directory fp
                 let write fd bs = unsafeUseAsCStringLen bs $ \(ptr, len) -> do
                         _ <- fdWriteBuf fd (castPtr ptr) (fromIntegral len)
                         return ()
diff --git a/Keter/TempFolder.hs b/Keter/TempFolder.hs
--- a/Keter/TempFolder.hs
+++ b/Keter/TempFolder.hs
@@ -12,6 +12,9 @@
 import Data.Word (Word)
 import Keter.Postgres (Appname)
 import qualified Data.IORef as I
+import System.Posix.Files.ByteString (setOwnerAndGroup)
+import System.Posix.Types (UserID, GroupID)
+import qualified Filesystem.Path.CurrentOS as F
 
 data TempFolder = TempFolder
     { tfRoot :: FilePath
@@ -26,8 +29,13 @@
     c <- I.newIORef minBound
     return $ TempFolder fp c
 
-getFolder :: TempFolder -> Appname -> KIO (Either SomeException FilePath)
-getFolder TempFolder {..} appname = do
+getFolder :: Maybe (UserID, GroupID) -> TempFolder -> Appname -> KIO (Either SomeException FilePath)
+getFolder muid TempFolder {..} appname = do
     !i <- atomicModifyIORef tfCounter $ \i -> (succ i, i)
     let fp = tfRoot </> fromText (appname ++ "-" ++ show i)
-    liftIO (createTree fp >> return fp)
+    liftIO $ do
+        createTree fp
+        case muid of
+            Nothing -> return ()
+            Just (uid, gid) -> setOwnerAndGroup (F.encode fp) uid gid
+        return fp
diff --git a/keter.cabal b/keter.cabal
--- a/keter.cabal
+++ b/keter.cabal
@@ -1,5 +1,5 @@
 Name:                keter
-Version:             0.3.4
+Version:             0.3.4.1
 Synopsis:            Web application deployment manager, focusing on Haskell web frameworks
 Description:         Handles deployment of web apps, providing a reverse proxy to achieve zero downtime deployments. For more information, please see the README on Github: <https://github.com/snoyberg/keter#readme>
 Homepage:            http://www.yesodweb.com/