diff --git a/dagger/state/store_test.go b/dagger/state/store_test.go
deleted file mode 100644
index d5ec0afd..00000000
--- a/dagger/state/store_test.go
+++ /dev/null
@@ -1,39 +0,0 @@
-package state
-
-import (
-	"context"
-	"os"
-	"testing"
-
-	"github.com/stretchr/testify/require"
-)
-
-func TestStore(t *testing.T) {
-	ctx := context.TODO()
-
-	// Init
-	root, err := os.MkdirTemp(os.TempDir(), "dagger-*")
-	require.NoError(t, err)
-	st, err := Init(ctx, root, "test")
-	require.Equal(t, "test", st.Name)
-	require.Equal(t, root, st.Path)
-	require.NoError(t, err)
-
-	// Open
-	_, err = Open(ctx, "/tmp/not/exist")
-	require.Error(t, err)
-	require.ErrorIs(t, ErrNotInit, err)
-
-	st, err = Open(ctx, root)
-	require.NoError(t, err)
-	require.Equal(t, "test", st.Name)
-	require.Equal(t, root, st.Path)
-
-	// Save
-	computed := `{"hello": "world"}`
-	st.Computed = computed
-	require.NoError(t, Save(ctx, st))
-	st, err = Open(ctx, root)
-	require.NoError(t, err)
-	require.Equal(t, computed, st.Computed)
-}
diff --git a/dagger/state/store.go b/dagger/state/workspace.go
similarity index 94%
rename from dagger/state/store.go
rename to dagger/state/workspace.go
index 86563483..79c05dbd 100644
--- a/dagger/state/store.go
+++ b/dagger/state/workspace.go
@@ -35,14 +35,19 @@ type Workspace struct {
 }
 
 func Init(ctx context.Context, dir string) (*Workspace, error) {
-	root := path.Join(dir, daggerDir)
-	if err := os.Mkdir(root, 0755); err != nil {
+	root, err := filepath.Abs(dir)
+	if err != nil {
+		return nil, err
+	}
+
+	daggerRoot := path.Join(root, daggerDir)
+	if err := os.Mkdir(daggerRoot, 0755); err != nil {
 		if errors.Is(err, os.ErrExist) {
 			return nil, ErrAlreadyInit
 		}
 		return nil, err
 	}
-	if err := os.Mkdir(path.Join(root, envDir), 0755); err != nil {
+	if err := os.Mkdir(path.Join(daggerRoot, envDir), 0755); err != nil {
 		return nil, err
 	}
 	return &Workspace{
@@ -178,7 +183,7 @@ func (w *Workspace) Save(ctx context.Context, st *State) error {
 	}
 
 	// Only update the encrypted file if there were changes
-	if bytes.Compare(data, currentPlain) != 0 {
+	if !bytes.Equal(data, currentPlain) {
 		encrypted, err := keychain.Reencrypt(ctx, manifestPath, data)
 		if err != nil {
 			return err
diff --git a/dagger/state/workspace_test.go b/dagger/state/workspace_test.go
new file mode 100644
index 00000000..a474f36a
--- /dev/null
+++ b/dagger/state/workspace_test.go
@@ -0,0 +1,55 @@
+package state
+
+import (
+	"context"
+	"os"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestWorkspace(t *testing.T) {
+	ctx := context.TODO()
+
+	root, err := os.MkdirTemp(os.TempDir(), "dagger-*")
+	require.NoError(t, err)
+
+	// Open should fail since the directory is not initialized
+	_, err = Open(ctx, root)
+	require.ErrorIs(t, ErrNotInit, err)
+
+	// Init
+	workspace, err := Init(ctx, root)
+	require.NoError(t, err)
+	require.Equal(t, root, workspace.Path)
+
+	// Create
+	st, err := workspace.Create(ctx, "test")
+	require.NoError(t, err)
+	require.Equal(t, "test", st.Name)
+
+	// Open
+	workspace, err = Open(ctx, root)
+	require.NoError(t, err)
+	require.Equal(t, root, workspace.Path)
+
+	// List
+	envs, err := workspace.List(ctx)
+	require.NoError(t, err)
+	require.Len(t, envs, 1)
+	require.Equal(t, "test", envs[0].Name)
+
+	// Get
+	env, err := workspace.Get(ctx, "test")
+	require.NoError(t, err)
+	require.Equal(t, "test", env.Name)
+
+	// Save
+	require.NoError(t, env.SetInput("foo", TextInput("bar")))
+	require.NoError(t, workspace.Save(ctx, env))
+	workspace, err = Open(ctx, root)
+	require.NoError(t, err)
+	env, err = workspace.Get(ctx, "test")
+	require.NoError(t, err)
+	require.Contains(t, env.Inputs, "foo")
+}