diff --git a/ATxService/AutoTx.cs b/ATxService/AutoTx.cs
index 58cbcc9833e25effec1415d5ecc1cf27ff4018dd..2f95e7fc14cd6ba098bd2f8f2cb2283375e6649d 100644
--- a/ATxService/AutoTx.cs
+++ b/ATxService/AutoTx.cs
@@ -299,7 +299,7 @@ namespace ATxService
         /// </summary>
         private void LoadStatus() {
 	        var statusPath = Path.Combine(AppDomain.CurrentDomain.BaseDirectory,
-		        "status.xml");
+		        "var", "status.xml");
 			try {
                 Log.Debug("Trying to load status from [{0}]", statusPath);
                 _status = ServiceStatus.Deserialize(statusPath, _config);
diff --git a/ATxTray/AutoTxTray.cs b/ATxTray/AutoTxTray.cs
index eecbc91b0b9f3e678574723f9b795dcf4cb412b9..cf24f6ad53703319177da735c2504f18271b6aa9 100644
--- a/ATxTray/AutoTxTray.cs
+++ b/ATxTray/AutoTxTray.cs
@@ -73,7 +73,7 @@ namespace ATxTray
 
             SetupLogging();
 
-            _statusFile = Path.Combine(baseDir, "status.xml");
+            _statusFile = Path.Combine(baseDir, "var", "status.xml");
 
             Log.Info("-----------------------");
             Log.Info("{0} initializing...", AppTitle);
@@ -114,7 +114,7 @@ namespace ATxTray
             Log.Trace("Enabled timer.");
 
             var fsw = new FileSystemWatcher {
-                Path = baseDir,
+                Path = Path.Combine(baseDir, "var"),
                 NotifyFilter = NotifyFilters.LastWrite,
                 Filter = "status.xml",
             };
diff --git a/Scripts/Make-Package.ps1 b/Scripts/Make-Package.ps1
index b16fdbe44e96ac23b47a67482113f261c478f98d..cf5e36136bd09f734a2004ecb78201a43bbafb85 100644
--- a/Scripts/Make-Package.ps1
+++ b/Scripts/Make-Package.ps1
@@ -66,6 +66,7 @@ if (Test-Path $PkgDir) {
 $dir = New-Item -ItemType Container -Force -Path "$($PkgDir)\AutoTx"
 $tgt = $dir.FullName
 New-Item -ItemType Container -Force -Path "$($PkgDir)\AutoTx\conf" | Out-Null
+New-Item -ItemType Container -Force -Path "$($PkgDir)\AutoTx\var" | Out-Null
 
 Copy-Item -Exclude *.pdb -Recurse "$($BinariesDirService)\*" $tgt
 Copy-Item -Exclude *.pdb -Recurse "$($BinariesDirTrayApp)\*" $tgt -EA Ignore
diff --git a/Updater/Update-Service.ps1 b/Updater/Update-Service.ps1
index d5e47082b1daa3c698dd11c333190a0410c561f9..31182147950801519e0d645c3daa7de878600714 100644
--- a/Updater/Update-Service.ps1
+++ b/Updater/Update-Service.ps1
@@ -591,7 +591,7 @@ $ServiceRunningBefore = ServiceIsRunning $ServiceName
 $ConfigPath = "$($InstallationPath)\conf"
 $LogPath = "$($InstallationPath)"
 $LogFile = "$($LogPath)\AutoTx.log"
-$StatusXml = "$($InstallationPath)\status.xml"
+$StatusXml = "$($InstallationPath)\var\status.xml"
 
 
 $UpdPathConfig = "$($UpdateSourcePath)\Configs"