diff --git a/gitosis/init.py b/gitosis/init.py
index 0da6ed3..61504c8 100644
--- a/gitosis/init.py
+++ b/gitosis/init.py
@@ -6,7 +6,6 @@ import errno
 import logging
 import os
 import re
-import subprocess
 import sys
 
 from pkg_resources import resource_filename
@@ -14,6 +13,7 @@ from cStringIO import StringIO
 from ConfigParser import RawConfigParser
 
 from gitosis import repository
+from gitosis import run_hook
 from gitosis import util
 from gitosis import app
 
@@ -51,23 +51,6 @@ def initial_commit(git_dir, cfg, pubkey, user):
             ],
         )
 
-class PostUpdateFailedError(Exception):
-    """post-update hook failed"""
-
-    def __str__(self):
-        return '%s: %s' % (self.__doc__, ': '.join(self.args))
-
-def run_post_update(git_dir):
-    args = [os.path.join(git_dir, 'hooks', 'post-update')]
-    returncode = subprocess.call(
-        args=args,
-        cwd=git_dir,
-        close_fds=True,
-        env=dict(GIT_DIR='.'),
-        )
-    if returncode != 0:
-        raise PostUpdateFailedError('exit status %d' % returncode)
-
 def symlink_config(git_dir):
     dst = os.path.expanduser('~/.gitosis.conf')
     tmp = '%s.%d.tmp' % (dst, os.getpid())
@@ -133,7 +116,6 @@ class Main(app.App):
     def handle_args(self, parser, cfg, options, args):
         super(Main, self).handle_args(parser, cfg, options, args)
 
-        logging.basicConfig(level=logging.INFO)
         os.umask(0022)
 
         log.info('Reading SSH public key...')
@@ -153,11 +135,7 @@ class Main(app.App):
             user=user,
             )
         log.info('Running post-update hook...')
-        try:
-            run_post_update(git_dir=admin_repository)
-        except PostUpdateFailedError, e:
-            log.error('%s', e)
-            sys.exit(1)
+        run_hook.post_update(cfg=cfg, git_dir=admin_repository)
         log.info('Symlinking ~/.gitosis.conf to repository...')
         symlink_config(git_dir=admin_repository)
         log.info('Done.')
diff --git a/gitosis/run_hook.py b/gitosis/run_hook.py
index de5076e..d249db1 100644
--- a/gitosis/run_hook.py
+++ b/gitosis/run_hook.py
@@ -13,20 +13,27 @@ from gitosis import ssh
 from gitosis import gitweb
 from gitosis import app
 
-def post_update(cfg):
+def post_update(cfg, git_dir):
+    export = os.path.join(git_dir, 'gitosis-export')
     try:
-        shutil.rmtree('gitosis-export')
+        shutil.rmtree(export)
     except OSError, e:
         if e.errno == errno.ENOENT:
             pass
         else:
             raise
-    repository.export(git_dir='.', path='gitosis-export')
-    os.rename('gitosis-export/gitosis.conf', 'gitosis.conf')
-    gitweb.generate(config=cfg, path='projects.list')
+    repository.export(git_dir=git_dir, path=export)
+    os.rename(
+        os.path.join(export, 'gitosis.conf'),
+        os.path.join(export, '..', 'gitosis.conf'),
+        )
+    gitweb.generate(
+        config=cfg,
+        path=os.path.join(git_dir, 'projects.list'),
+        )
     ssh.writeAuthorizedKeys(
         path=os.path.expanduser('~/.ssh/authorized_keys'),
-        keydir='gitosis-export/keydir',
+        keydir=os.path.join(export, 'keydir'),
         )
 
 class Main(app.App):
@@ -50,12 +57,10 @@ class Main(app.App):
         if git_dir is None:
             log.error('Must have GIT_DIR set in enviroment')
             sys.exit(1)
-        os.chdir(git_dir)
-        os.environ['GIT_DIR'] = '.'
 
         if hook == 'post-update':
             log.info('Running hook %s', hook)
-            post_update(cfg)
+            post_update(cfg, git_dir)
             log.info('Done.')
         else:
             log.warning('Ignoring unknown hook: %r', hook)