diff --git a/doc/FAQ.md b/doc/FAQ.md
index ec0acf93..cc619730 100644
--- a/doc/FAQ.md
+++ b/doc/FAQ.md
@@ -168,10 +168,8 @@ code-server crashes can be helpful.
 ### Where is the data directory?
 
 If the `XDG_DATA_HOME` environment variable is set the data directory will be
-`$XDG_DATA_HOME/code-server`. Otherwise the default is:
-
-1. Linux: `~/.local/share/code-server`.
-2. Mac: `~/Library/Application\ Support/code-server`.
+`$XDG_DATA_HOME/code-server`. Otherwise the default is `~/.local/share/code-server`.
+On Windows, it will be `%APPDATA%\Local\code-server\Data`.
 
 ## Enterprise
 
diff --git a/package.json b/package.json
index f1813e89..c86e0174 100644
--- a/package.json
+++ b/package.json
@@ -67,6 +67,7 @@
   "dependencies": {
     "@coder/logger": "1.1.11",
     "adm-zip": "^0.4.14",
+    "env-paths": "^2.2.0",
     "fs-extra": "^8.1.0",
     "http-proxy": "^1.18.0",
     "httpolyglot": "^0.1.2",
diff --git a/src/node/cli.ts b/src/node/cli.ts
index f135d32a..53561d25 100644
--- a/src/node/cli.ts
+++ b/src/node/cli.ts
@@ -4,8 +4,7 @@ import * as path from "path"
 import { field, logger, Level } from "@coder/logger"
 import { Args as VsArgs } from "../../lib/vscode/src/vs/server/ipc"
 import { AuthType } from "./http"
-import { xdgLocalDir } from "./util"
-import xdgBasedir from "xdg-basedir"
+import { paths, uxPath } from "./util"
 
 export class Optional<T> {
   public constructor(public readonly value?: T) {}
@@ -272,7 +271,7 @@ export const parse = (argv: string[]): Args => {
   }
 
   if (!args["user-data-dir"]) {
-    args["user-data-dir"] = xdgLocalDir
+    args["user-data-dir"] = paths.data
   }
 
   if (!args["extensions-dir"]) {
@@ -282,6 +281,11 @@ export const parse = (argv: string[]): Args => {
   return args
 }
 
+const defaultConfigFile = `
+auth: password
+bind-addr: 127.0.0.1:8080
+`.trimLeft()
+
 // readConfigFile reads the config file specified in the config flag
 // and loads it's configuration.
 //
@@ -291,14 +295,14 @@ export const parse = (argv: string[]): Args => {
 // to ~/.config/code-server/config.yaml.
 export async function readConfigFile(args: Args): Promise<Args> {
   const configPath = getConfigPath(args)
-  if (configPath === undefined) {
-    return args
-  }
 
   if (!(await fs.pathExists(configPath))) {
-    await fs.outputFile(configPath, `default: hello`)
+    await fs.outputFile(configPath, defaultConfigFile)
+    logger.info(`Wrote default config file to ${uxPath(configPath)}`)
   }
 
+  logger.info(`Using config file from ${uxPath(configPath)}`)
+
   const configFile = await fs.readFile(configPath)
   const config = yaml.safeLoad(configFile.toString(), {
     filename: args.config,
@@ -306,22 +310,24 @@ export async function readConfigFile(args: Args): Promise<Args> {
 
   // We convert the config file into a set of flags.
   // This is a temporary measure until we add a proper CLI library.
-  const configFileArgv = Object.entries(config).map(([optName, opt]) => `--${optName}=${opt}`)
+  const configFileArgv = Object.entries(config).map(([optName, opt]) => {
+    if (opt === null) {
+      return `--${optName}`
+    }
+    return `--${optName}=${opt}`
+  })
   const configFileArgs = parse(configFileArgv)
 
   // This prioritizes the flags set in args over the ones in the config file.
   return Object.assign(configFileArgs, args)
 }
 
-function getConfigPath(args: Args): string | undefined {
+function getConfigPath(args: Args): string {
   if (args.config !== undefined) {
     return args.config
   }
   if (process.env.CODE_SERVER_CONFIG !== undefined) {
     return process.env.CODE_SERVER_CONFIG
   }
-  if (xdgBasedir.config !== undefined) {
-    return `${xdgBasedir.config}/code-server/config.yaml`
-  }
-  return undefined
+  return path.join(paths.config, "config.yaml")
 }
diff --git a/src/node/entry.ts b/src/node/entry.ts
index 493d2689..f048ec9a 100644
--- a/src/node/entry.ts
+++ b/src/node/entry.ts
@@ -11,7 +11,7 @@ import { UpdateHttpProvider } from "./app/update"
 import { VscodeHttpProvider } from "./app/vscode"
 import { Args, optionDescriptions, parse, readConfigFile } from "./cli"
 import { AuthType, HttpServer, HttpServerOptions } from "./http"
-import { generateCertificate, generatePassword, hash, open } from "./util"
+import { generateCertificate, generatePassword, hash, open, uxPath } from "./util"
 import { ipcMain, wrap } from "./wrapper"
 
 process.on("uncaughtException", (error) => {
@@ -34,6 +34,11 @@ const commit = pkg.commit || "development"
 const main = async (args: Args): Promise<void> => {
   args = await readConfigFile(args)
 
+  if (args.verbose === true) {
+    logger.info(`Using extensions-dir at ${uxPath(args["extensions-dir"]!)}`)
+    logger.info(`Using user-data-dir at ${uxPath(args["user-data-dir"]!)}`)
+  }
+
   const auth = args.auth || AuthType.Password
   const originalPassword = auth === AuthType.Password && (process.env.PASSWORD || (await generatePassword()))
 
diff --git a/src/node/http.ts b/src/node/http.ts
index 5c065374..96f074a6 100644
--- a/src/node/http.ts
+++ b/src/node/http.ts
@@ -14,7 +14,7 @@ import * as url from "url"
 import { HttpCode, HttpError } from "../common/http"
 import { normalize, Options, plural, split } from "../common/util"
 import { SocketProxyProvider } from "./socket"
-import { getMediaMime, xdgLocalDir } from "./util"
+import { getMediaMime, paths } from "./util"
 
 export type Cookies = { [key: string]: string[] | undefined }
 export type PostData = { [key: string]: string | string[] | undefined }
@@ -473,7 +473,7 @@ export class HttpServer {
 
   public constructor(private readonly options: HttpServerOptions) {
     this.proxyDomains = new Set((options.proxyDomains || []).map((d) => d.replace(/^\*\./, "")))
-    this.heart = new Heart(path.join(xdgLocalDir, "heartbeat"), async () => {
+    this.heart = new Heart(path.join(paths.data, "heartbeat"), async () => {
       const connections = await this.getConnections()
       logger.trace(`${connections} active connection${plural(connections)}`)
       return connections !== 0
diff --git a/src/node/settings.ts b/src/node/settings.ts
index 0d6152b1..32166ddb 100644
--- a/src/node/settings.ts
+++ b/src/node/settings.ts
@@ -1,6 +1,6 @@
 import * as fs from "fs-extra"
 import * as path from "path"
-import { extend, xdgLocalDir } from "./util"
+import { extend, paths } from "./util"
 import { logger } from "@coder/logger"
 
 export type Settings = { [key: string]: Settings | string | boolean | number }
@@ -60,4 +60,4 @@ export interface CoderSettings extends UpdateSettings {
 /**
  * Global code-server settings file.
  */
-export const settings = new SettingsProvider<CoderSettings>(path.join(xdgLocalDir, "coder.json"))
+export const settings = new SettingsProvider<CoderSettings>(path.join(paths.data, "coder.json"))
diff --git a/src/node/util.ts b/src/node/util.ts
index 44e27be0..72d3332f 100644
--- a/src/node/util.ts
+++ b/src/node/util.ts
@@ -4,24 +4,48 @@ import * as fs from "fs-extra"
 import * as os from "os"
 import * as path from "path"
 import * as util from "util"
+import envPaths from "env-paths"
+import xdgBasedir from "xdg-basedir"
 
 export const tmpdir = path.join(os.tmpdir(), "code-server")
 
-const getXdgDataDir = (): string => {
-  switch (process.platform) {
-    case "win32":
-      return path.join(process.env.XDG_DATA_HOME || path.join(os.homedir(), "AppData/Local"), "code-server/Data")
-    case "darwin":
-      return path.join(
-        process.env.XDG_DATA_HOME || path.join(os.homedir(), "Library/Application Support"),
-        "code-server",
-      )
-    default:
-      return path.join(process.env.XDG_DATA_HOME || path.join(os.homedir(), ".local/share"), "code-server")
-  }
+interface Paths {
+  data: string
+  config: string
 }
 
-export const xdgLocalDir = getXdgDataDir()
+export const paths = getEnvPaths()
+
+// getEnvPaths gets the config and data paths for the current platform/configuration.
+//
+// On MacOS this function gets the standard XDG directories instead of using the native macOS
+// ones. Most CLIs do this as in practice only GUI apps use the standard macOS directories.
+function getEnvPaths(): Paths {
+  let paths: Paths
+  if (process.platform === "win32") {
+    paths = envPaths("code-server", {
+      suffix: "",
+    })
+  } else {
+    if (xdgBasedir.data === undefined) {
+      throw new Error("Missing data directory?")
+    }
+    if (xdgBasedir.config === undefined) {
+      throw new Error("Missing config directory?")
+    }
+    paths = {
+      data: path.join(xdgBasedir.data, "code-server"),
+      config: path.join(xdgBasedir.config, "code-server"),
+    }
+  }
+
+  return paths
+}
+
+// uxPath replaces the home directory in p with ~.
+export function uxPath(p: string): string {
+  return p.replace(os.homedir(), "~")
+}
 
 export const generateCertificate = async (): Promise<{ cert: string; certKey: string }> => {
   const paths = {
diff --git a/test/cli.test.ts b/test/cli.test.ts
index 4f1c2bfb..52c9fb61 100644
--- a/test/cli.test.ts
+++ b/test/cli.test.ts
@@ -2,7 +2,7 @@ import { logger, Level } from "@coder/logger"
 import * as assert from "assert"
 import * as path from "path"
 import { parse } from "../src/node/cli"
-import { xdgLocalDir } from "../src/node/util"
+import { paths } from "../src/node/util"
 
 describe("cli", () => {
   beforeEach(() => {
@@ -12,8 +12,8 @@ describe("cli", () => {
   // The parser will always fill these out.
   const defaults = {
     _: [],
-    "extensions-dir": path.join(xdgLocalDir, "extensions"),
-    "user-data-dir": xdgLocalDir,
+    "extensions-dir": path.join(paths.data, "extensions"),
+    "user-data-dir": paths.data,
   }
 
   it("should set defaults", () => {
diff --git a/yarn.lock b/yarn.lock
index 470f299f..782882fb 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2562,6 +2562,11 @@ entities@^2.0.0:
   resolved "https://registry.yarnpkg.com/entities/-/entities-2.0.0.tgz#68d6084cab1b079767540d80e56a39b423e4abf4"
   integrity sha512-D9f7V0JSRwIxlRI2mjMqufDrRDnx8p+eEOz7aUM9SuvF8gsBzra0/6tbjl1m8eQHrZlYj6PxqE00hZ1SAIKPLw==
 
+env-paths@^2.2.0:
+  version "2.2.0"
+  resolved "https://registry.yarnpkg.com/env-paths/-/env-paths-2.2.0.tgz#cdca557dc009152917d6166e2febe1f039685e43"
+  integrity sha512-6u0VYSCo/OW6IoD5WCLLy9JUGARbamfSavcNXry/eu8aHVFei6CD3Sw+VGX5alea1i9pgPHW0mbu6Xj0uBh7gA==
+
 envinfo@^7.3.1:
   version "7.5.1"
   resolved "https://registry.yarnpkg.com/envinfo/-/envinfo-7.5.1.tgz#93c26897225a00457c75e734d354ea9106a72236"