diff --git a/inc/meta-config b/inc/meta-config
index b9d9649e4b..1215bb8307 100644
--- a/inc/meta-config
+++ b/inc/meta-config
@@ -90,7 +90,6 @@ function merge_config_file {
     local real_configfile
     real_configfile=$(eval echo $configfile)
     if [ ! -f $real_configfile ]; then
-        mkdir -p $(dirname $real_configfile) || die $LINENO "could not create the directory of $real_configfile ($configfile)"
         touch $real_configfile || die $LINENO "could not create config file $real_configfile ($configfile)"
     fi
 
@@ -186,11 +185,15 @@ function merge_config_group {
                 break
             fi
             dir=$(dirname $realconfigfile)
-            if [[ -d $dir ]]; then
-                merge_config_file $localfile $group $configfile
-            else
-                die $LINENO "bogus config file specification $configfile ($configfile=$realconfigfile, $dir is not a directory)"
+
+            test -e $dir && ! test -d $dir && die $LINENO "bogus config file specification $configfile ($configfile=$realconfigfile, $dir exists but it is not a directory)"
+
+            if ! [[ -e $dir ]] ; then
+                sudo mkdir -p $dir || die $LINENO "could not create the directory of $real_configfile ($configfile)"
+                sudo chown ${STACK_USER} $dir
             fi
+
+            merge_config_file $localfile $group $configfile
         done
     done
 }
diff --git a/tests/test_meta_config.sh b/tests/test_meta_config.sh
index 087aaf468b..30479f245a 100755
--- a/tests/test_meta_config.sh
+++ b/tests/test_meta_config.sh
@@ -137,6 +137,9 @@ foo=bar
 [some]
 random=config
 
+[[test12|run_tests.sh/test.conf]]
+foo=bar
+
 [[test-multi-sections|test-multi-sections.conf]]
 [sec-1]
 cfg_item1 = abcd
@@ -389,13 +392,12 @@ EXPECT_VAL=0
 check_result "$VAL" "$EXPECT_VAL"
 set -e
 
-echo -n "merge_config_group test10 not directory: "
+echo -n "merge_config_group test10 create directory: "
 set +e
-# function is expected to fail and exit, running it
-# in a subprocess to let this script proceed
-(merge_config_group test.conf test10)
+STACK_USER=$(id -u -n)
+merge_config_group test.conf test10
 VAL=$?
-EXPECT_VAL=255
+EXPECT_VAL=0
 check_result "$VAL" "$EXPECT_VAL"
 set -e
 
@@ -414,9 +416,21 @@ random = config
 non = sense'
 check_result "$VAL" "$EXPECT_VAL"
 
+echo -n "merge_config_group test12 directory as file: "
+set +e
+# function is expected to fail and exit, running it
+# in a subprocess to let this script proceed
+(merge_config_group test.conf test12)
+VAL=$?
+EXPECT_VAL=255
+check_result "$VAL" "$EXPECT_VAL"
+set -e
+
 
 rm -f test.conf test1c.conf test2a.conf \
     test-space.conf test-equals.conf test-strip.conf \
     test-colon.conf test-env.conf test-multiline.conf \
     test-multi-sections.conf test-same.conf
 rm -rf test-etc
+rm -rf does-not-exist-dir
+