diff --git a/karaf/main/src/main/java/org/apache/felix/karaf/main/Main.java b/karaf/main/src/main/java/org/apache/felix/karaf/main/Main.java
index 5a1d524..736be97 100644
--- a/karaf/main/src/main/java/org/apache/felix/karaf/main/Main.java
+++ b/karaf/main/src/main/java/org/apache/felix/karaf/main/Main.java
@@ -132,6 +132,8 @@
 
     public static final String PROPERTY_LOCK_LEVEL = "karaf.lock.level";
 
+    public static final String DEFAULT_REPO = "karaf.default.repository";
+
     public static final String PROPERTY_LOCK_CLASS_DEFAULT = SimpleFileLock.class.getName();
 
     Logger LOG = Logger.getLogger(this.getClass().getName());
@@ -714,17 +716,10 @@
 
         try {
             File file = new File(new File(karafBase, "etc"), CONFIG_PROPERTIES_FILE_NAME);
-            configPropURL = file.toURL();
+            configPropURL = file.toURI().toURL();
 
             file = new File(new File(karafBase, "etc"), STARTUP_PROPERTIES_FILE_NAME);
-            startupPropURL = file.toURL();
-
-            if (karafBase.equals(karafHome)) {
-                bundleDirs.add(new File(karafHome, "system"));
-            } else {
-                bundleDirs.add(new File(karafBase, "system"));
-                bundleDirs.add(new File(karafHome, "system"));
-            }
+            startupPropURL = file.toURI().toURL();
 
         }
         catch (MalformedURLException ex) {
@@ -736,6 +731,15 @@
         Properties configProps = loadPropertiesFile(configPropURL);
         Properties startupProps = loadPropertiesFile(startupPropURL);
 
+        String defaultRepo = configProps.getProperty(DEFAULT_REPO, "system");
+
+        if (karafBase.equals(karafHome)) {
+            bundleDirs.add(new File(karafHome, defaultRepo));
+        } else {
+            bundleDirs.add(new File(karafBase, defaultRepo));
+            bundleDirs.add(new File(karafHome, defaultRepo));
+        }
+
         String locations = configProps.getProperty(BUNDLE_LOCATIONS);
 
         if (locations != null) {
diff --git a/karaf/main/src/main/resources/config.properties b/karaf/main/src/main/resources/config.properties
index 100d484..6fe20f9 100644
--- a/karaf/main/src/main/resources/config.properties
+++ b/karaf/main/src/main/resources/config.properties
@@ -43,6 +43,7 @@
 osgi.shell.telnet=on
 #obr.repository.url=http://bundles.osgi.org/obr/browse?_xml=1&cmd=repository
 
+karaf.default.repository=system
 #list of directories containing bundles to be loaded by SMX
 #bundle.locations=