diff --git a/nova/flags.py b/nova/flags.py
index 3ba3fe6f..f64a62da 100644
--- a/nova/flags.py
+++ b/nova/flags.py
@@ -282,6 +282,8 @@ DEFINE_integer('auth_token_ttl', 3600, 'Seconds for auth tokens to linger')
 
 DEFINE_string('state_path', os.path.join(os.path.dirname(__file__), '../'),
               "Top-level directory for maintaining nova's state")
+DEFINE_string('logdir', None, 'output to a per-service log file in named '
+                              'directory')
 
 DEFINE_string('sql_connection',
               'sqlite:///$state_path/nova.sqlite',
diff --git a/nova/log.py b/nova/log.py
index b541488b..a5b4828d 100644
--- a/nova/log.py
+++ b/nova/log.py
@@ -28,9 +28,11 @@ It also allows setting of formatting information through flags.
 
 
 import cStringIO
+import inspect
 import json
 import logging
 import logging.handlers
+import os
 import sys
 import traceback
 
@@ -123,8 +125,13 @@ def basicConfig():
         syslog = SysLogHandler(address='/dev/log')
         syslog.setFormatter(_formatter)
         logging.root.addHandler(syslog)
-    if FLAGS.logfile:
-        logfile = FileHandler(FLAGS.logfile)
+    if FLAGS.logfile or FLAGS.logdir:
+        if FLAGS.logfile:
+            logfile = FLAGS.logfile
+        else:
+            binary = os.path.basename(inspect.stack()[-1][1])
+            logpath = '%s.log' % (os.path.join(FLAGS.logdir, binary),)
+        logfile = FileHandler(logpath)
         logfile.setFormatter(_formatter)
         logging.root.addHandler(logfile)
 
diff --git a/nova/twistd.py b/nova/twistd.py
index 6390a814..60ff7879 100644
--- a/nova/twistd.py
+++ b/nova/twistd.py
@@ -43,8 +43,6 @@ else:
 
 
 FLAGS = flags.FLAGS
-flags.DEFINE_string('logdir', None, 'directory to keep log files in '
-                                     '(will be prepended to $logfile)')
 
 
 class TwistdServerOptions(ServerOptions):