diff --git a/mkosi.conf b/mkosi.conf
index 9ec4faf122..2605e062ad 100644
--- a/mkosi.conf
+++ b/mkosi.conf
@@ -2,11 +2,12 @@
 
 [Config]
 Images=system
+MinimumVersion=20.2
 
 [Output]
 @OutputDirectory=mkosi.output
-BuildDirectory=mkosi.builddir
-CacheDirectory=mkosi.cache
+@BuildDirectory=mkosi.builddir
+@CacheDirectory=mkosi.cache
 
 [Content]
 # Prevent ASAN warnings when building the image and ship the real ASAN options prefixed with MKOSI_.
diff --git a/mkosi.images/initrd/mkosi.conf b/mkosi.images/initrd/mkosi.conf
index 8e38dc1b78..36684c7f16 100644
--- a/mkosi.images/initrd/mkosi.conf
+++ b/mkosi.images/initrd/mkosi.conf
@@ -7,8 +7,8 @@ Dependencies=base
 Format=cpio
 
 [Content]
-BaseTrees=../../mkosi.output/base
-ExtraTrees=../../mkosi.output/base-systemd
+BaseTrees=%O/base
+ExtraTrees=%O/base-systemd
 MakeInitrd=yes
 Bootable=no
 BuildPackages=
diff --git a/mkosi.images/system/mkosi.conf b/mkosi.images/system/mkosi.conf
index 9646bbefde..5bcf6967c7 100644
--- a/mkosi.images/system/mkosi.conf
+++ b/mkosi.images/system/mkosi.conf
@@ -8,8 +8,8 @@ Dependencies=base
 
 [Content]
 Autologin=yes
-BaseTrees=../../mkosi.output/base
-ExtraTrees=../../mkosi.output/base-systemd
+BaseTrees=%O/base
+ExtraTrees=%O/base-systemd
 Packages=
         acl
         bash-completion
diff --git a/mkosi.images/system/mkosi.conf.d/05-initrd.conf b/mkosi.images/system/mkosi.conf.d/05-initrd.conf
index 9f21754058..23685871c6 100644
--- a/mkosi.images/system/mkosi.conf.d/05-initrd.conf
+++ b/mkosi.images/system/mkosi.conf.d/05-initrd.conf
@@ -9,4 +9,4 @@ Format=|directory
 Dependencies=initrd
 
 [Content]
-Initrds=../../mkosi.output/initrd
+Initrds=%O/initrd