diff --git a/heat/cloudinit/loguserdata.py b/heat/cloudinit/loguserdata.py
index 521f50985d..2adcccd78f 100644
--- a/heat/cloudinit/loguserdata.py
+++ b/heat/cloudinit/loguserdata.py
@@ -6,6 +6,7 @@ import stat
 import subprocess
 import datetime
 import pkg_resources
+import errno
 
 path = '/var/lib/cloud/data'
 
@@ -17,16 +18,24 @@ if ci_version[0] <= 0 and ci_version[1] < 6:
                   ' cloud-init\n')
         sys.exit(0)
 
-os.chmod(path + '/cfn-userdata', stat.S_IXUSR | stat.S_IXGRP | stat.S_IXOTH)
+os.chmod(os.path.join(path, 'cfn-userdata'),
+         stat.S_IXUSR | stat.S_IXGRP | stat.S_IXOTH)
 
 with open('/var/log/heat-provision.log', 'w') as log:
     log.write('Provision began: %s\n' % datetime.datetime.now())
     log.flush()
-    p = subprocess.Popen(path + '/cfn-userdata', stdout=log, stderr=log)
+    p = subprocess.Popen(os.path.join(path, 'cfn-userdata'),
+                         stdout=log, stderr=log)
     p.wait()
     log.write('Provision done: %s\n' % datetime.datetime.now())
     if p.returncode:
         sys.exit(p.returncode)
 
-with open(cloudinit.get_ipath_cur() + '/provision-finished', 'w') as log:
+try:
+    os.makedirs('/var/lib/heat')
+except OSError as e:
+    if e.errno != errno.EEXIST:
+        raise
+
+with open('/var/lib/heat/provision-finished', 'w') as log:
     log.write('%s\n' % datetime.datetime.now())
diff --git a/heat/tests/functional/util.py b/heat/tests/functional/util.py
index f986f1ef73..43059ebae7 100644
--- a/heat/tests/functional/util.py
+++ b/heat/tests/functional/util.py
@@ -219,7 +219,7 @@ class Instance(object):
         tries = 0
         while True:
             try:
-                self.sftp.stat('/var/lib/cloud/instance/provision-finished')
+                self.sftp.stat('/var/lib/heat/provision-finished')
             except paramiko.SSHException as e:
                 print e
             except IOError as e:
@@ -268,9 +268,6 @@ class Instance(object):
         t_data = t_data['UserData']['Fn::Base64']['Fn::Join'].pop()
         joined_t_data = ''.join(t_data)
         t_data_list = joined_t_data.split('\n')
-        # must match user data injection
-        t_data_list.insert(len(t_data_list) - 1,
-                           u'touch /var/lib/cloud/instance/provision-finished')
 
         self.testcase.assertEqual(t_data_list, remote_file_list_u)