diff --git a/cmd/dagger/cmd/compute.go b/cmd/dagger/cmd/compute.go
index c49e235e..2fb4b8b4 100644
--- a/cmd/dagger/cmd/compute.go
+++ b/cmd/dagger/cmd/compute.go
@@ -38,6 +38,7 @@ var computeCmd = &cobra.Command{
 		st := &state.State{
 			Name: "FIXME",
 			Path: args[0],
+			Plan: args[0],
 		}
 
 		for _, input := range viper.GetStringSlice("input-string") {
diff --git a/dagger/environment_test.go b/dagger/environment_test.go
index 06fccdd1..3da6ba6c 100644
--- a/dagger/environment_test.go
+++ b/dagger/environment_test.go
@@ -10,6 +10,7 @@ import (
 func TestLocalDirs(t *testing.T) {
 	st := &state.State{
 		Path: "/tmp/source",
+		Plan: "/tmp/source/plan",
 	}
 	require.NoError(t, st.SetInput("www.source", state.DirInput("/", []string{})))
 
diff --git a/dagger/state/state.go b/dagger/state/state.go
index becf5d1a..84bed925 100644
--- a/dagger/state/state.go
+++ b/dagger/state/state.go
@@ -1,7 +1,5 @@
 package state
 
-import "path"
-
 // Contents of an environment serialized to a file
 type State struct {
 	// State path
@@ -10,6 +8,9 @@ type State struct {
 	// Workspace path
 	Workspace string `yaml:"-"`
 
+	// Plan path
+	Plan string `yaml:"-"`
+
 	// Human-friendly environment name.
 	// A environment may have more than one name.
 	// FIXME: store multiple names?
@@ -25,7 +26,7 @@ type State struct {
 // Cue module containing the environment plan
 // The input's top-level artifact is used as a module directory.
 func (s *State) PlanSource() Input {
-	return DirInput(path.Join(s.Path, planDir), []string{"*.cue", "cue.mod"})
+	return DirInput(s.Plan, []string{"*.cue", "cue.mod"})
 }
 
 func (s *State) SetInput(key string, value Input) error {
diff --git a/dagger/state/workspace.go b/dagger/state/workspace.go
index 79c05dbd..4a516401 100644
--- a/dagger/state/workspace.go
+++ b/dagger/state/workspace.go
@@ -155,6 +155,7 @@ func (w *Workspace) Get(ctx context.Context, name string) (*State, error) {
 		return nil, err
 	}
 	st.Path = envPath
+	st.Plan = path.Join(envPath, planDir)
 	st.Workspace = w.Path
 
 	computed, err := os.ReadFile(path.Join(envPath, stateDir, computedFile))
@@ -237,6 +238,7 @@ func (w *Workspace) Create(ctx context.Context, name string) (*State, error) {
 	st := &State{
 		Path:      envPath,
 		Workspace: w.Path,
+		Plan:      path.Join(envPath, planDir),
 		Name:      name,
 	}
 	data, err := yaml.Marshal(st)
diff --git a/tests/cli.bats b/tests/cli.bats
index ca9513ba..df4d8de8 100644
--- a/tests/cli.bats
+++ b/tests/cli.bats
@@ -4,55 +4,45 @@ setup() {
     common_setup
 }
 
-@test "dagger list" {
-    run "$DAGGER" list
+@test "dagger init" {
+    run "$DAGGER" init
     assert_success
-    assert_output ""
-
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/simple simple
 
     run "$DAGGER" list
     assert_success
-    assert_output --partial "simple"
+    refute_output
+
+    run "$DAGGER" init
+    assert_failure
 }
 
-@test "dagger new --plan-dir" {
-    run "$DAGGER" list
-    assert_success
-    assert_output ""
-
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/simple simple
-
-    # duplicate name
-    run "$DAGGER" new --plan-dir "$TESTDIR"/cli/simple simple
+@test "dagger new" {
+    run "$DAGGER" new "test"
     assert_failure
 
-    # verify the plan works
-    "$DAGGER" up -e "simple"
-
-    # verify we have the right plan
-    run "$DAGGER" query -f cue -e "simple" -c -f json
+    run "$DAGGER" init
     assert_success
-    assert_output --partial '{
-  "bar": "another value",
-  "computed": "test",
-  "foo": "value"
-}'
-}
 
-@test "dagger new --plan-git" {
-    "$DAGGER" new --plan-git https://github.com/samalba/dagger-test.git simple
-    "$DAGGER" up -e "simple"
-    run "$DAGGER" query -f cue -e "simple" -c
+    run "$DAGGER" list
     assert_success
-    assert_output --partial '{
-    foo: "value"
-    bar: "another value"
-}'
+    refute_output
+
+    run "$DAGGER" new "test"
+    assert_success
+
+    run "$DAGGER" list
+    assert_success
+    assert_output --partial "test"
+
+    run "$DAGGER" new "test"
+    assert_failure
 }
 
 @test "dagger query" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/simple simple
+    "$DAGGER" init
+
+    dagger_new_with_plan simple "$TESTDIR"/cli/simple
+
     run "$DAGGER" query -l error -e "simple"
     assert_success
     assert_output '{
@@ -93,24 +83,10 @@ setup() {
 }'
 }
 
-@test "dagger plan" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/simple simple
-
-    # plan dir
-    "$DAGGER" -e "simple" plan dir "$TESTDIR"/cli/simple
-    run "$DAGGER" -e "simple" query
-    assert_success
-    assert_output --partial '"foo": "value"'
-
-    # plan git
-    "$DAGGER" -e "simple" plan git https://github.com/samalba/dagger-test.git
-    run "$DAGGER" -e "simple" query
-    assert_success
-    assert_output --partial '"foo": "value"'
-}
-
 @test "dagger input text" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/simple "input"
+    "$DAGGER" init
+
+    dagger_new_with_plan input "$TESTDIR"/cli/input/simple
 
     # simple input
     "$DAGGER" input -e "input" text "input" "my input"
@@ -176,7 +152,9 @@ setup() {
 }
 
 @test "dagger input json" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/simple "input"
+    "$DAGGER" init
+
+    dagger_new_with_plan input "$TESTDIR"/cli/input/simple
 
     # simple json
     "$DAGGER" input -e "input" json "structured" '{"a": "foo", "b": 42}'
@@ -214,7 +192,9 @@ setup() {
 }
 
 @test "dagger input yaml" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/simple "input"
+    "$DAGGER" init
+
+    dagger_new_with_plan input "$TESTDIR"/cli/input/simple
 
     # simple yaml
     "$DAGGER" input -e "input" yaml "structured" '{"a": "foo", "b": 42}'
@@ -252,10 +232,17 @@ setup() {
 }
 
 @test "dagger input dir" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/artifact "input"
+    "$DAGGER" init
 
-    # input dir
-    "$DAGGER" input -e "input" dir "source" "$TESTDIR"/cli/input/artifact/testdata
+    dagger_new_with_plan input "$TESTDIR"/cli/input/artifact
+
+    # input dir outside the workspace
+    run "$DAGGER" input -e "input" dir "source" /tmp
+    assert_failure
+
+    # input dir inside the workspace
+    cp -R "$TESTDIR"/cli/input/artifact/testdata/ "$DAGGER_WORKSPACE"/testdata
+    "$DAGGER" input -e "input" dir "source" "$DAGGER_WORKSPACE"/testdata
     "$DAGGER" up -e "input"
     run "$DAGGER" -l error query -e "input"
     assert_success
@@ -276,7 +263,9 @@ setup() {
 }
 
 @test "dagger input git" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/artifact "input"
+    "$DAGGER" init
+
+    dagger_new_with_plan input "$TESTDIR"/cli/input/artifact
 
     # input git
     "$DAGGER" input -e "input" git "source" https://github.com/samalba/dagger-test-simple.git
@@ -296,11 +285,3 @@ setup() {
   "foo": "bar"
 }'
 }
-
-@test "dagger input scan" {
-    "$DAGGER" new --plan-dir "$TESTDIR"/cli/input/scan "scan"
-
-    # TODO "scan" option isn't implemented
-    run "$DAGGER" input scan -e "input"
-    assert_success
-}
diff --git a/tests/examples.bats b/tests/examples.bats
index 665354e7..a35323ab 100644
--- a/tests/examples.bats
+++ b/tests/examples.bats
@@ -7,13 +7,13 @@ setup() {
 @test "example: react" {
     skip_unless_secrets_available "$TESTDIR"/examples/react/inputs.yaml
 
-    "$DAGGER" new --plan-dir "$TESTDIR"/../examples/react react
+    "$DAGGER" init
+    dagger_new_with_plan react "$TESTDIR"/../examples/react
     sops -d "$TESTDIR"/examples/react/inputs.yaml | "$DAGGER" -e "react" input yaml "" -f -
     "$DAGGER" up -e "react"
 
     # curl the URL we just deployed to check if it worked
     deployUrl=$("$DAGGER" query -l error -f text -e "react" www.deployUrl)
-    echo "=>$deployUrl<="
     run curl -sS "$deployUrl"
     assert_success
     assert_output --partial "Todo App"
diff --git a/tests/helpers.bash b/tests/helpers.bash
index 00f94b44..7a796768 100644
--- a/tests/helpers.bash
+++ b/tests/helpers.bash
@@ -10,8 +10,18 @@ common_setup() {
     DAGGER_LOG_FORMAT="pretty"
     export DAGGER_LOG_FORMAT
 
-    DAGGER_STORE="$(mktemp -d -t dagger-store-XXXXXX)"
-    export DAGGER_STORE
+    DAGGER_WORKSPACE="$(mktemp -d -t dagger-workspace-XXXXXX)"
+    export DAGGER_WORKSPACE
+}
+
+dagger_new_with_plan() {
+    local name="$1"
+    local sourcePlan="$2"
+    local targetPlan="$DAGGER_WORKSPACE"/.dagger/env/"$name"/plan
+
+    "$DAGGER" new "$name"
+    rmdir "$targetPlan"
+    ln -s "$sourcePlan" "$targetPlan"
 }
 
 skip_unless_secrets_available() {
diff --git a/tests/stdlib.bats b/tests/stdlib.bats
index baf6a169..409169f1 100644
--- a/tests/stdlib.bats
+++ b/tests/stdlib.bats
@@ -91,8 +91,11 @@ setup() {
 @test "stdlib: terraform" {
     skip_unless_secrets_available "$TESTDIR"/stdlib/aws/inputs.yaml
 
-    "$DAGGER" new --plan-dir "$TESTDIR"/stdlib/terraform/s3 terraform
-    "$DAGGER" -e terraform input dir TestData "$TESTDIR"/stdlib/terraform/s3/testdata
+    "$DAGGER" init
+    dagger_new_with_plan terraform "$TESTDIR"/stdlib/terraform/s3
+
+    cp -R "$TESTDIR"/stdlib/terraform/s3/testdata "$DAGGER_WORKSPACE"/testdata
+    "$DAGGER" -e terraform input dir TestData "$DAGGER_WORKSPACE"/testdata
     sops -d "$TESTDIR"/stdlib/aws/inputs.yaml | "$DAGGER" -e "terraform" input yaml "" -f -
 
     # it must fail because of a missing var