diff --git a/cli/config/config.go b/cli/config/config.go
index 5ea2d92693..952f6e71f4 100644
--- a/cli/config/config.go
+++ b/cli/config/config.go
@@ -35,6 +35,13 @@ var (
 	configDir     string
 )
 
+// resetConfigDir is used in testing to reset the "configDir" package variable
+// and its sync.Once to force re-lookup between tests.
+func resetConfigDir() {
+	configDir = ""
+	initConfigDir = new(sync.Once)
+}
+
 // Dir returns the directory the configuration file is stored in
 func Dir() string {
 	initConfigDir.Do(func() {
@@ -53,6 +60,8 @@ func ContextStoreDir() string {
 
 // SetDir sets the directory the configuration file is stored in
 func SetDir(dir string) {
+	// trigger the sync.Once to synchronise with Dir()
+	initConfigDir.Do(func() {})
 	configDir = filepath.Clean(dir)
 }
 
diff --git a/cli/config/config_test.go b/cli/config/config_test.go
index 33c9b83177..0efd675b38 100644
--- a/cli/config/config_test.go
+++ b/cli/config/config_test.go
@@ -382,3 +382,12 @@ func TestConfigPath(t *testing.T) {
 
 	SetDir(oldDir)
 }
+
+// TestSetDir verifies that Dir() does not overwrite the value set through
+// SetDir() if it has not been run before.
+func TestSetDir(t *testing.T) {
+	const expected = "my_config_dir"
+	resetConfigDir()
+	SetDir(expected)
+	assert.Check(t, is.Equal(Dir(), expected))
+}