diff --git a/local-cli/cli.js b/local-cli/cli.js
index 9db680309b1..f76b7986d43 100644
--- a/local-cli/cli.js
+++ b/local-cli/cli.js
@@ -7,7 +7,7 @@
 var spawn = require('child_process').spawn;
 var path = require('path');
 
-var init = require('../init.js');
+var init = require('./init.js');
 var install = require('./install.js');
 var bundle = require('./bundle.js');
 
diff --git a/init.js b/local-cli/init.js
similarity index 96%
rename from init.js
rename to local-cli/init.js
index 1226dd1d30b..2b3813ba917 100755
--- a/init.js
+++ b/local-cli/init.js
@@ -5,7 +5,7 @@ var fs = require('fs');
 
 function init(projectDir, appName) {
   console.log('Setting up new React Native app in ' + projectDir);
-  var source = path.resolve(__dirname, 'Examples/SampleApp');
+  var source = path.resolve(__dirname, '..', 'Examples/SampleApp');
 
   walk(source).forEach(function(f) {
     f = f.replace(source + '/', ''); // Strip off absolute path