diff --git a/Scaffolding/Scaffolder.hs b/Scaffolding/Scaffolder.hs
--- a/Scaffolding/Scaffolder.hs
+++ b/Scaffolding/Scaffolder.hs
@@ -67,8 +67,9 @@
 validPN '-' = True
 validPN _ = False
 
-scaffold :: IO ()
-scaffold = do
+scaffold :: Bool -- ^ bare directory instead of a new subdirectory?
+         -> IO ()
+scaffold isBare = do
     puts $ renderTextUrl undefined $(textFile "input/welcome.cg")
     project <- prompt $ \s ->
         if all validPN s && not (null s) && s /= "test"
@@ -90,7 +91,7 @@
     putStrLn "That's it! I'm creating your files now..."
 
     let sink = unpackTemplate
-                (receiveFS $ fromString project)
+                (receiveFS $ if isBare then "." else fromString project)
                 (T.replace "PROJECTNAME" (T.pack project))
     case ebackend of
         Left req -> withManager $ \m -> do
diff --git a/main.hs b/main.hs
--- a/main.hs
+++ b/main.hs
@@ -42,7 +42,7 @@
                }
   deriving (Show, Eq)
 
-data Command = Init
+data Command = Init { _initBare :: Bool }
              | Configure
              | Build { buildExtraArgs   :: [String] }
              | Touch
@@ -89,7 +89,7 @@
                                              ] optParser'
   let cabal xs = rawSystem' (cabalCommand o) xs
   case optCommand o of
-    Init                    -> scaffold
+    Init bare               -> scaffold bare
     Configure               -> cabal ["configure"]
     Build es                -> touch' >> cabal ("build":es)
     Touch                   -> touch'
@@ -109,7 +109,8 @@
 optParser = Options
         <$> flag Cabal CabalDev ( long "dev"     <> short 'd' <> help "use cabal-dev" )
         <*> switch              ( long "verbose" <> short 'v' <> help "More verbose output" )
-        <*> subparser ( command "init"      (info (pure Init)
+        <*> subparser ( command "init"
+                            (info (Init <$> (switch (long "bare" <> help "Create files in current folder")))
                             (progDesc "Scaffold a new site"))
                       <> command "configure" (info (pure Configure)
                             (progDesc "Configure a project for building"))
diff --git a/yesod-bin.cabal b/yesod-bin.cabal
--- a/yesod-bin.cabal
+++ b/yesod-bin.cabal
@@ -1,5 +1,5 @@
 name:            yesod-bin
-version:         1.2.3.2
+version:         1.2.3.3
 license:         MIT
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>