diff --git a/Makefile.am b/Makefile.am
index f50351b05b..ccc5bf273c 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -28,6 +28,7 @@ init-state:
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/nix
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/nix/db
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/log/nix
+	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/log/nix/drvs
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/nix/profiles
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/nix/gcroots
 	$(INSTALL) $(INIT_FLAGS) -d $(DESTDIR)$(localstatedir)/nix/temproots
diff --git a/src/libstore/build.cc b/src/libstore/build.cc
index 1aa3e37bab..33914b78ea 100644
--- a/src/libstore/build.cc
+++ b/src/libstore/build.cc
@@ -1156,7 +1156,7 @@ void DerivationGoal::computeClosure()
 void DerivationGoal::openLogFile()
 {
     /* Create a log file. */
-    Path logFileName = nixLogDir + "/" + baseNameOf(drvPath);
+    Path logFileName = nixLogDir + "/drvs/" + baseNameOf(drvPath);
     fdLogFile = open(logFileName.c_str(),
         O_CREAT | O_WRONLY | O_TRUNC, 0666);
     if (fdLogFile == -1)