diff --git a/bin/sputnik b/bin/sputnik
index 025452f..22cc37c 100755
--- a/bin/sputnik
+++ b/bin/sputnik
@@ -33,43 +33,63 @@ if (\Phar::running() !== '') {
 use Sputnik\Kernel;
 use Symfony\Component\Console\Output\ConsoleOutput;
 
-// Determine working directory
-$workingDir = getcwd();
+// Determine working directory. Null until --working-dir says otherwise, because
+// the default is the project directory, which is not known yet.
+$workingDirOption = null;
 
 // Check for --working-dir option
 $args = $_SERVER['argv'];
 foreach ($args as $i => $arg) {
     if (str_starts_with($arg, '--working-dir=')) {
-        $workingDir = substr($arg, 14);
+        $workingDirOption = substr($arg, 14);
         unset($args[$i]);
         $_SERVER['argv'] = array_values($args);
         break;
     }
     if ($arg === '--working-dir' && isset($args[$i + 1])) {
-        $workingDir = $args[$i + 1];
+        $workingDirOption = $args[$i + 1];
         unset($args[$i], $args[$i + 1]);
         $_SERVER['argv'] = array_values($args);
         break;
     }
 }
 
-// Make the project root the working directory of the process, so a task doing
-// its own file I/O sees the same place its commands run in. Until now exec() ran
-// in the project root while file_exists() in the task resolved against the
-// caller's cwd, which is why a wrapper had to cd before calling the binary.
+// Two directories, one question each.
 //
-// Resolving to an absolute path first is not cosmetic: a relative
-// --working-dir would otherwise be looked up inside itself after the chdir.
-// It also keeps the container cache key stable, which includes this path.
-if ($workingDir === false || !is_dir($workingDir)) {
-    fwrite(\STDERR, \sprintf(
-        "Working directory does not exist: %s\n",
-        $workingDir === false ? '(could not be determined)' : $workingDir,
-    ));
+// The project directory is where the config lives, and with it the container
+// cache and the persisted context. It is searched for upwards, the way git and
+// composer find their root, so a call from a subdirectory works and nothing is
+// written beside the caller. No config anywhere above means no project - then
+// only the built-in init has anything to do.
+//
+// The working directory is where tasks run: the cwd of exec() and shell(), and
+// what relative file access in a task resolves against. It defaults to the
+// project directory and only --working-dir moves it.
+//
+// Resolving to an absolute path before the chdir is not cosmetic: a relative
+// --working-dir would otherwise be looked up inside itself, and the container
+// cache key contains this path.
+$cwd = getcwd();
+
+if ($cwd === false) {
+    fwrite(\STDERR, "Could not determine the current directory\n");
+
+    exit(1);
+}
+
+if ($workingDirOption !== null && !is_dir($workingDirOption)) {
+    fwrite(\STDERR, 'Working directory does not exist: ' . $workingDirOption . "\n");
 
     exit(1);
 }
 
+// If --working-dir points somewhere with no project of its own, the project you
+// are standing in is kept: running a task in an unrelated directory must not take
+// the tasks away. Where both have one, the explicit argument wins.
+$projectDir = $workingDirOption === null
+    ? Sputnik\Support\ProjectLocator::locate($cwd)
+    : Sputnik\Support\ProjectLocator::locate($workingDirOption) ?? Sputnik\Support\ProjectLocator::locate($cwd);
+$workingDir = $workingDirOption ?? $projectDir ?? $cwd;
 $resolvedWorkingDir = realpath($workingDir);
 
 if ($resolvedWorkingDir === false || !@chdir($resolvedWorkingDir)) {
@@ -103,7 +123,7 @@ $output = new ConsoleOutput();
 
 // Bootstrap and run
 try {
-    $kernel = new Kernel(workingDir: $workingDir, contextName: $contextOverride);
+    $kernel = new Kernel(workingDir: $workingDir, contextName: $contextOverride, projectDir: $projectDir);
     $output = new Sputnik\Secret\RedactingConsoleOutput($output, $kernel->getSecretRedactor());
 
     // Everything that writes shares this destination: tasks, the commands, and
diff --git a/docs/cli.md b/docs/cli.md
index 5c07d44..fce88da 100644
--- a/docs/cli.md
+++ b/docs/cli.md
@@ -24,10 +24,29 @@ sputnik --working-dir /var/www/myproject deploy
 sputnik --working-dir=/var/www/myproject deploy
 ```
 
-Sputnik enters that directory, so it is the working directory of the process:
-config files, task directories and templates resolve against it, commands run in
-it, and a task's own file access -- `file_exists('.ddev/config.yaml')`,
-`file_get_contents('dev-ops/config.yaml')` -- sees the same place.
+Change where tasks run -- the cwd of `exec()` and `shell()`, and what relative
+file access in a task resolves against. Sputnik enters that directory, so
+`file_exists('.env')` in a task and the commands it runs see the same place.
+
+It does **not** move the project by itself. The config, the persisted context and
+the container cache stay in the
+[project directory](project-structure.md#the-project-directory), which is found
+by searching upwards. Without this option, tasks run in the project directory.
+
+```bash
+sputnik --working-dir=frontend npm:ci    # runs in frontend/, state stays at the root
+```
+
+Which project applies is decided by what sits at or above the directory you name:
+
+| `--working-dir` points at | Project used |
+|---|---|
+| a subdirectory of your project | yours -- the search walks up into it |
+| a directory with no config above it | yours -- running somewhere unrelated does not take your tasks away |
+| a different project | **that** one, with its own tasks and its own state |
+
+The last row is the rule in short: naming a directory behaves as if you had `cd`'d
+there, and only a directory with no project of its own leaves you with yours.
 
 A relative path is resolved against the directory you called from. If the
 directory does not exist, Sputnik says so and stops.
diff --git a/docs/configuration.md b/docs/configuration.md
index 46d5d28..9b8ebbc 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -14,6 +14,11 @@ Sputnik is configured using [NEON](https://ne-on.org/) files located in the proj
 
 Both files are automatically loaded and deep-merged. Nested keys are merged recursively, scalar values are replaced. Either file can exist on its own.
 
+Whichever of them exists marks the **project directory**, which Sputnik looks for
+upwards from the current directory. Paths declared in the config -- task
+directories, template sources and targets -- resolve against it, not against
+wherever you happened to run the command from.
+
 See [Project Structure](project-structure.md) for details on file locations and `.gitignore` recommendations.
 
 ---
diff --git a/docs/project-structure.md b/docs/project-structure.md
index 30417a7..06c63f1 100644
--- a/docs/project-structure.md
+++ b/docs/project-structure.md
@@ -31,11 +31,39 @@ Local overrides. Gitignored. Values are deep-merged on top of `.sputnik.dist.neo
 
 Either file can exist on its own. If both exist, they are merged. If neither exists, Sputnik starts with an empty configuration (only built-in commands available).
 
+## The Project Directory
+
+The project is the directory holding `.sputnik.dist.neon` (or `.sputnik.neon`).
+Sputnik searches for it **upwards** from where you are, the way `git` and
+`composer` find their root, so a command works from anywhere inside the project:
+
+```bash
+cd htdocs/web/sites/default
+sputnik deploy            # same project, same state, same place the commands run
+```
+
+Everything project-local lives there and only there: the config, the compiled
+container and the persisted context. Outside a project -- no config in any parent
+directory -- there is nothing to persist, and Sputnik writes nothing beside you:
+
+```bash
+cd /tmp/somewhere
+sputnik --version         # leaves the directory exactly as it was
+sputnik init              # this is what you came for
+```
+
+Tasks run in the project directory by default. `--working-dir` moves **that** and
+nothing else: the project keeps its state where it is.
+
+```bash
+sputnik --working-dir=frontend npm:ci    # runs in frontend/, state stays at the root
+```
+
 ## Runtime Directory
 
 ### `.sputnik/`
 
-Auto-created on first run. Contains:
+Created in the project directory on first run. Contains:
 
 - **`state.json`** -- stores the currently active context name. Updated by `context:switch`.
 - **`cache/`** -- compiled Nette DI container classes. Automatically invalidated when task files change, configuration changes, or the Sputnik version changes.
diff --git a/src/Context/ContextManager.php b/src/Context/ContextManager.php
index 7f1a2b6..075bb45 100644
--- a/src/Context/ContextManager.php
+++ b/src/Context/ContextManager.php
@@ -17,7 +17,12 @@ final class ContextManager
 
     public function __construct(
         private readonly Configuration $config,
-        private readonly string $workingDir,
+        /**
+         * The project directory, or null when there is no project - a context
+         * cannot be remembered for something that does not exist, and writing
+         * it next to the caller is how stray .sputnik directories appeared.
+         */
+        private readonly ?string $projectDir,
     ) {
     }
 
@@ -120,24 +125,26 @@ public function getContextDescription(string $contextName): ?string
     /**
      * Get the state directory path.
      */
-    public function getStateDir(): string
+    public function getStateDir(): ?string
     {
-        return $this->workingDir . '/' . self::STATE_DIR;
+        return $this->projectDir === null ? null : $this->projectDir . '/' . self::STATE_DIR;
     }
 
     /**
      * Get the state file path.
      */
-    public function getStateFilePath(): string
+    public function getStateFilePath(): ?string
     {
-        return $this->getStateDir() . '/' . self::STATE_FILE;
+        $dir = $this->getStateDir();
+
+        return $dir === null ? null : $dir . '/' . self::STATE_FILE;
     }
 
     private function loadPersistedContext(): ?string
     {
         $path = $this->getStateFilePath();
 
-        if (file_exists($path)) {
+        if ($path !== null && file_exists($path)) {
             $content = file_get_contents($path);
             if ($content === false) {
                 return null;
@@ -156,7 +163,13 @@ private function loadPersistedContext(): ?string
 
     private function migrateOldStateFile(): ?string
     {
-        $oldPath = $this->getStateDir() . '/context';
+        $dir = $this->getStateDir();
+
+        if ($dir === null) {
+            return null;
+        }
+
+        $oldPath = $dir . '/context';
 
         if (!file_exists($oldPath)) {
             return null;
@@ -182,6 +195,10 @@ private function persistContext(string $contextName): void
     {
         $dir = $this->getStateDir();
 
+        if ($dir === null) {
+            return;
+        }
+
         if (!is_dir($dir) && !mkdir($dir, 0755, true) && !is_dir($dir)) {
             throw new SputnikRuntimeException('Could not create state directory: ' . $dir);
         }
@@ -192,13 +209,14 @@ private function persistContext(string $contextName): void
             'version' => 1,
         ];
 
+        $path = $dir . '/' . self::STATE_FILE;
         $result = file_put_contents(
-            $this->getStateFilePath(),
+            $path,
             json_encode($state, \JSON_PRETTY_PRINT | \JSON_UNESCAPED_SLASHES) . "\n",
         );
 
         if ($result === false) {
-            throw new SputnikRuntimeException('Could not write state file: ' . $this->getStateFilePath());
+            throw new SputnikRuntimeException('Could not write state file: ' . $path);
         }
     }
 }
diff --git a/src/DependencyInjection/ContainerFactory.php b/src/DependencyInjection/ContainerFactory.php
index 737be6f..f481382 100644
--- a/src/DependencyInjection/ContainerFactory.php
+++ b/src/DependencyInjection/ContainerFactory.php
@@ -18,6 +18,7 @@ final class ContainerFactory
 
     public function __construct(
         private readonly Configuration $config,
+        private readonly ?string $projectDir,
         private readonly string $workingDir,
         private readonly string $contextName,
         private readonly bool $debugMode = false,
@@ -26,7 +27,7 @@ public function __construct(
 
     public function create(): Container
     {
-        $cacheDir = $this->workingDir . '/' . self::CACHE_DIR;
+        $cacheDir = $this->cacheDir();
 
         if (!is_dir($cacheDir) && !mkdir($cacheDir, 0755, true) && !is_dir($cacheDir)) {
             throw new SputnikRuntimeException('Could not create cache directory: ' . $cacheDir);
@@ -43,6 +44,7 @@ function (Compiler $compiler): ?string {
             [
                 $this->config->all(),
                 $this->contextName,
+                $this->projectDir,
                 $this->workingDir,
                 $this->getTaskFilesHash(),
                 Application::VERSION,
@@ -53,6 +55,22 @@ function (Compiler $compiler): ?string {
         return new $containerClass();
     }
 
+    /**
+     * The compiled container belongs to the project. Without one there is
+     * nothing to keep between runs, and writing beside the caller is how a
+     * .sputnik directory appeared in every directory the binary was invoked
+     * from - so it goes to the system temp directory instead, keyed like any
+     * other build of this container.
+     */
+    private function cacheDir(): string
+    {
+        if ($this->projectDir !== null) {
+            return $this->projectDir . '/' . self::CACHE_DIR;
+        }
+
+        return sys_get_temp_dir() . '/sputnik-cache-' . md5(Application::VERSION);
+    }
+
     /**
      * Fingerprint Sputnik's own sources, so any change to the service graph or
      * to a wired class invalidates the cache even when Application::VERSION is
@@ -71,7 +89,7 @@ private function getServiceDefinitionsFingerprint(): string
     private function getTaskFilesHash(): string
     {
         $files = [];
-        $directories = $this->config->getTaskDirectories($this->workingDir);
+        $directories = $this->config->getTaskDirectories($this->projectDir ?? $this->workingDir);
 
         foreach ($directories as $directory) {
             if (!is_dir($directory)) {
@@ -99,6 +117,7 @@ private function configureCompiler(Compiler $compiler): void
         // Add parameters
         $compiler->addConfig([
             'parameters' => [
+                'projectDir' => $this->projectDir,
                 'workingDir' => $this->workingDir,
                 'contextName' => $this->contextName,
                 'debug' => $this->debugMode,
@@ -106,6 +125,6 @@ private function configureCompiler(Compiler $compiler): void
         ]);
 
         // Add extensions
-        $compiler->addExtension('sputnik', new SputnikExtension($this->config, $this->workingDir));
+        $compiler->addExtension('sputnik', new SputnikExtension($this->config, $this->projectDir ?? $this->workingDir, $this->workingDir));
     }
 }
diff --git a/src/DependencyInjection/SputnikExtension.php b/src/DependencyInjection/SputnikExtension.php
index 2c6429e..2308541 100644
--- a/src/DependencyInjection/SputnikExtension.php
+++ b/src/DependencyInjection/SputnikExtension.php
@@ -41,6 +41,13 @@ final class SputnikExtension extends CompilerExtension
 
     public function __construct(
         private readonly Configuration $sputnikConfig,
+        /**
+         * Where config-declared paths resolve: task directories, templates.
+         */
+        private readonly string $projectDir,
+        /**
+         * Where tasks run.
+         */
         private readonly string $workingDir,
     ) {
     }
@@ -82,7 +89,9 @@ public function loadConfiguration(): void
         $builder->addDefinition($this->prefix('contextManager'))
             ->setFactory(ContextManager::class, [
                 'config' => $this->prefix('@config'),
-                'workingDir' => $params['workingDir'],
+                // The persisted context belongs to the project, not to wherever
+                // the binary was invoked.
+                'projectDir' => $params['projectDir'],
             ])
             ->setAutowired(true);
 
@@ -213,7 +222,7 @@ public function beforeCompile(): void
     private function getTaskDiscovery(): TaskDiscovery
     {
         if (!$this->taskDiscovery instanceof TaskDiscovery) {
-            $taskDirs = $this->sputnikConfig->getTaskDirectories($this->workingDir);
+            $taskDirs = $this->sputnikConfig->getTaskDirectories($this->projectDir);
             $taskClasses = $this->sputnikConfig->getTaskClasses();
             $this->taskDiscovery = new TaskDiscovery($taskDirs, $taskClasses);
         }
diff --git a/src/Kernel.php b/src/Kernel.php
index 0b822f5..a1cf96f 100644
--- a/src/Kernel.php
+++ b/src/Kernel.php
@@ -22,6 +22,7 @@
 use Sputnik\Exception\RuntimeException as SputnikRuntimeException;
 use Sputnik\Secret\SecretRedactor;
 use Sputnik\Secret\SecretRegistry;
+use Sputnik\Support\ProjectLocator;
 use Sputnik\Task\TaskDiscovery;
 use Sputnik\Task\TaskRunner;
 use Sputnik\Template\TemplateEngine;
@@ -36,17 +37,37 @@ final class Kernel
 
     private string $workingDir;
 
+    private ?string $projectDir;
+
     private string $contextName;
 
     private bool $debugMode;
 
+    /**
+     * @param string|null $workingDir Where tasks run. Defaults to the project
+     *                                directory, or to the current directory when
+     *                                there is no project.
+     * @param string|null $projectDir The project directory. Located by searching
+     *                                upwards from $workingDir when not given;
+     *                                null means there is no project, and nothing
+     *                                may be persisted next to the caller.
+     */
     public function __construct(
         ?string $workingDir = null,
         ?string $contextName = null,
         bool $debugMode = false,
+        ?string $projectDir = null,
     ) {
         $cwdResult = getcwd();
-        $this->workingDir = $workingDir ?? ($cwdResult !== false ? $cwdResult : throw new SputnikRuntimeException('Could not determine working directory'));
+        $cwd = $cwdResult !== false ? $cwdResult : throw new SputnikRuntimeException('Could not determine working directory');
+
+        // A working directory without a project of its own keeps the project of
+        // the current directory, so a task can run somewhere unrelated without
+        // losing the tasks.
+        $this->projectDir = $projectDir
+            ?? ProjectLocator::locate($workingDir ?? $cwd)
+            ?? ($workingDir === null ? null : ProjectLocator::locate($cwd));
+        $this->workingDir = $workingDir ?? $this->projectDir ?? $cwd;
         $this->debugMode = $debugMode;
 
         $this->loadConfig();
@@ -156,8 +177,12 @@ private function getConfigFileDisplay(): string
         $base = '.sputnik.dist.neon';
         $local = '.sputnik.neon';
 
-        $hasBase = file_exists($this->workingDir . '/' . $base);
-        $hasLocal = file_exists($this->workingDir . '/' . $local);
+        if ($this->projectDir === null) {
+            return 'no config';
+        }
+
+        $hasBase = file_exists($this->projectDir . '/' . $base);
+        $hasLocal = file_exists($this->projectDir . '/' . $local);
 
         if (!$hasBase && !$hasLocal) {
             return 'no config';
@@ -174,7 +199,7 @@ private function getConfigFileDisplay(): string
 
     private function registerTaskAutoloader(): void
     {
-        $directories = $this->config->getTaskDirectories($this->workingDir);
+        $directories = $this->config->getTaskDirectories($this->projectDir ?? $this->workingDir);
 
         if ($directories === []) {
             return;
@@ -187,7 +212,7 @@ private function registerTaskAutoloader(): void
 
     private function loadConfig(): void
     {
-        $loader = new ConfigLoader($this->workingDir);
+        $loader = new ConfigLoader($this->projectDir ?? $this->workingDir);
 
         if (!$loader->hasConfig()) {
             $this->config = new Configuration([]);
@@ -207,7 +232,7 @@ private function initializeContextName(?string $contextName): void
         }
 
         // Create temporary context manager to read persisted context
-        $tempContextManager = new ContextManager($this->config, $this->workingDir);
+        $tempContextManager = new ContextManager($this->config, $this->projectDir);
         $this->contextName = $tempContextManager->getCurrentContext();
     }
 
@@ -215,6 +240,7 @@ private function buildContainer(): void
     {
         $factory = new ContainerFactory(
             config: $this->config,
+            projectDir: $this->projectDir,
             workingDir: $this->workingDir,
             contextName: $this->contextName,
             debugMode: $this->debugMode,
diff --git a/src/Support/ProjectLocator.php b/src/Support/ProjectLocator.php
new file mode 100644
index 0000000..09f5db8
--- /dev/null
+++ b/src/Support/ProjectLocator.php
@@ -0,0 +1,47 @@
+<?php
+
+declare(strict_types=1);
+
+namespace Sputnik\Support;
+
+/**
+ * Finds the directory a Sputnik project lives in.
+ *
+ * The config file is the project's identity, the way composer.json or .git marks
+ * a root, so it is searched for upwards from where you are. That is what makes a
+ * call from a subdirectory work, and what keeps the container cache and the
+ * persisted context in one place instead of appearing next to every caller.
+ */
+final class ProjectLocator
+{
+    private const array CONFIG_FILES = ['.sputnik.dist.neon', '.sputnik.neon'];
+
+    /**
+     * The nearest directory at or above $start holding a config file, or null
+     * when there is no project - in which case nothing may be persisted.
+     */
+    public static function locate(string $start): ?string
+    {
+        $directory = realpath($start);
+
+        if ($directory === false) {
+            return null;
+        }
+
+        while (true) {
+            foreach (self::CONFIG_FILES as $file) {
+                if (is_file($directory . '/' . $file)) {
+                    return $directory;
+                }
+            }
+
+            $parent = \dirname($directory);
+
+            if ($parent === $directory) {
+                return null;
+            }
+
+            $directory = $parent;
+        }
+    }
+}
diff --git a/tests/E2E/SputnikBinaryTest.php b/tests/E2E/SputnikBinaryTest.php
index 19139a3..a4fe062 100644
--- a/tests/E2E/SputnikBinaryTest.php
+++ b/tests/E2E/SputnikBinaryTest.php
@@ -942,6 +942,124 @@ public function __invoke(TaskContext $ctx): TaskResult
         $this->assertStringContainsString('deploy', $output);
     }
 
+    public function testADirectoryWithoutAProjectStaysEmpty(): void
+    {
+        // .sputnik used to appear wherever the binary ran, because both the
+        // container cache and the persisted context hung off the working
+        // directory rather than off the project.
+        $empty = $this->tempDir . '/empty';
+        mkdir($empty, 0755, true);
+
+        foreach ([['--version'], ['--help'], ['list']] as $args) {
+            $this->sputnik($args, $empty);
+        }
+
+        $this->assertSame(['.', '..'], scandir($empty), 'Nothing may be written next to a caller without a project');
+    }
+
+    public function testTheProjectIsFoundFromASubdirectory(): void
+    {
+        $this->scaffoldProject([
+            'where' => <<<'PHP'
+                #[Task(name: 'where', description: 'Reports its directories')]
+                final class WhereTask implements TaskInterface
+                {
+                    public function __invoke(TaskContext $ctx): TaskResult
+                    {
+                        $ctx->writeln('cwd=' . getcwd());
+
+                        return TaskResult::success();
+                    }
+                }
+                PHP,
+        ]);
+
+        $deep = $this->tempDir . '/htdocs/web';
+        mkdir($deep, 0755, true);
+
+        $result = $this->sputnik(['where'], $deep);
+
+        $this->assertSame(0, $result->getExitCode(), 'Called from a subdirectory it used to report "no config"');
+        $this->assertStringContainsString('cwd=' . $this->tempDir, $result->getOutput());
+        $this->assertSame(['.', '..'], scandir($deep), 'No state beside the caller');
+        $this->assertDirectoryExists($this->tempDir . '/.sputnik', 'State belongs to the project root');
+    }
+
+    public function testWorkingDirMovesExecutionButNotTheProject(): void
+    {
+        $this->scaffoldProject([
+            'where' => <<<'PHP'
+                #[Task(name: 'where', description: 'Reports its directories')]
+                final class WhereTask implements TaskInterface
+                {
+                    public function __invoke(TaskContext $ctx): TaskResult
+                    {
+                        $ctx->writeln('cwd=' . getcwd());
+
+                        return TaskResult::success();
+                    }
+                }
+                PHP,
+        ]);
+
+        $sub = $this->tempDir . '/frontend';
+        mkdir($sub, 0755, true);
+
+        $result = $this->sputnik(['--working-dir=' . $sub, 'where'], $this->tempDir);
+
+        $this->assertSame(0, $result->getExitCode());
+        $this->assertStringContainsString('cwd=' . $sub, $result->getOutput(), 'Tasks run where asked');
+        $this->assertSame(['.', '..'], scandir($sub), 'But the project keeps its state');
+        $this->assertDirectoryExists($this->tempDir . '/.sputnik');
+    }
+
+    public function testATaskCanRunInADirectoryOutsideItsProject(): void
+    {
+        // Standing in a project and pointing --working-dir somewhere unrelated
+        // has to keep the project: otherwise the tasks are gone, which is what
+        // both this and the previous behaviour did.
+        $this->scaffoldProject([
+            'where' => <<<'PHP'
+                #[Task(name: 'where', description: 'Reports its directories')]
+                final class WhereTask implements TaskInterface
+                {
+                    public function __invoke(TaskContext $ctx): TaskResult
+                    {
+                        $ctx->writeln('cwd=' . getcwd());
+
+                        return TaskResult::success();
+                    }
+                }
+                PHP,
+        ]);
+
+        $unrelated = \dirname($this->tempDir) . '/sputnik-unrelated-' . getmypid();
+        mkdir($unrelated, 0755, true);
+
+        try {
+            $result = $this->sputnik(['--working-dir=' . $unrelated, 'where'], $this->tempDir);
+
+            $this->assertSame(0, $result->getExitCode(), 'The project has to survive an unrelated working directory');
+            $this->assertStringContainsString('cwd=' . $unrelated, $result->getOutput());
+            $this->assertSame(['.', '..'], scandir($unrelated), 'And nothing may be written there');
+            $this->assertDirectoryExists($this->tempDir . '/.sputnik');
+        } finally {
+            @rmdir($unrelated);
+        }
+    }
+
+    public function testInitStillScaffoldsWhereThereIsNoProject(): void
+    {
+        $empty = $this->tempDir . '/fresh';
+        mkdir($empty, 0755, true);
+
+        $result = $this->sputnik(['init'], $empty);
+
+        $this->assertSame(0, $result->getExitCode());
+        $this->assertFileExists($empty . '/.sputnik.dist.neon');
+        $this->assertFileExists($empty . '/sputnik/ExampleTask.php');
+    }
+
     private function sputnik(array $args, ?string $cwd = null): Process
     {
         $process = new Process(
diff --git a/tests/Integration/DependencyInjection/ContainerFactoryTest.php b/tests/Integration/DependencyInjection/ContainerFactoryTest.php
index 0af4744..57bcb9b 100644
--- a/tests/Integration/DependencyInjection/ContainerFactoryTest.php
+++ b/tests/Integration/DependencyInjection/ContainerFactoryTest.php
@@ -37,7 +37,7 @@ protected function tearDown(): void
     public function testCreateReturnsContainer(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
 
@@ -47,7 +47,7 @@ public function testCreateReturnsContainer(): void
     public function testContainerProvidesConfiguration(): void
     {
         $config = new Configuration(['foo' => 'bar']);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $resolvedConfig = $container->getByType(Configuration::class);
@@ -59,7 +59,7 @@ public function testContainerProvidesConfiguration(): void
     public function testContainerProvidesLogger(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $logger = $container->getByType(LoggerInterface::class);
@@ -70,7 +70,7 @@ public function testContainerProvidesLogger(): void
     public function testContainerProvidesShellExecutor(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $executor = $container->getByType(ShellExecutor::class);
@@ -83,7 +83,7 @@ public function testContainerProvidesContextManager(): void
         $config = new Configuration([
             'contexts' => ['local' => []],
         ]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'local');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'local');
 
         $container = $factory->create();
         $contextManager = $container->getByType(ContextManager::class);
@@ -96,7 +96,7 @@ public function testContainerProvidesVariableResolver(): void
         $config = new Configuration([
             'variables' => ['name' => 'value'],
         ]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $resolver = $container->getByType(VariableResolver::class);
@@ -107,7 +107,7 @@ public function testContainerProvidesVariableResolver(): void
     public function testContainerProvidesTaskDiscovery(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $discovery = $container->getByType(TaskDiscovery::class);
@@ -118,7 +118,7 @@ public function testContainerProvidesTaskDiscovery(): void
     public function testContainerProvidesListenerDiscovery(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $discovery = $container->getByType(ListenerDiscovery::class);
@@ -129,7 +129,7 @@ public function testContainerProvidesListenerDiscovery(): void
     public function testContainerProvidesEventDispatcher(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $dispatcher = $container->getByType(EventDispatcherInterface::class);
@@ -140,7 +140,7 @@ public function testContainerProvidesEventDispatcher(): void
     public function testContainerProvidesTemplateEngine(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $engine = $container->getByType(TemplateEngine::class);
@@ -151,7 +151,7 @@ public function testContainerProvidesTemplateEngine(): void
     public function testContainerProvidesTaskRunner(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $runner = $container->getByType(TaskRunner::class);
@@ -162,7 +162,7 @@ public function testContainerProvidesTaskRunner(): void
     public function testContainerCachesCompilation(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         // Create container twice
         $container1 = $factory->create();
@@ -175,7 +175,7 @@ public function testContainerCachesCompilation(): void
     public function testContainerCreatesCacheDirectory(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $factory->create();
 
@@ -185,11 +185,11 @@ public function testContainerCreatesCacheDirectory(): void
     public function testCacheInvalidatesWhenConfigChanges(): void
     {
         $config1 = new Configuration(['variables' => ['constants' => ['foo' => 'bar']]]);
-        $factory1 = new ContainerFactory($config1, $this->tempDir, 'default');
+        $factory1 = new ContainerFactory($config1, $this->tempDir, $this->tempDir, 'default');
         $container1 = $factory1->create();
 
         $config2 = new Configuration(['variables' => ['constants' => ['foo' => 'baz']]]);
-        $factory2 = new ContainerFactory($config2, $this->tempDir, 'default');
+        $factory2 = new ContainerFactory($config2, $this->tempDir, $this->tempDir, 'default');
         $container2 = $factory2->create();
 
         $this->assertNotSame($container1::class, $container2::class);
@@ -198,10 +198,10 @@ public function testCacheInvalidatesWhenConfigChanges(): void
     public function testCacheInvalidatesWhenContextChanges(): void
     {
         $config = new Configuration([]);
-        $factory1 = new ContainerFactory($config, $this->tempDir, 'dev');
+        $factory1 = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'dev');
         $container1 = $factory1->create();
 
-        $factory2 = new ContainerFactory($config, $this->tempDir, 'prod');
+        $factory2 = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'prod');
         $container2 = $factory2->create();
 
         $this->assertNotSame($container1::class, $container2::class);
@@ -227,14 +227,14 @@ public function __invoke(TaskContext $ctx): TaskResult {
             PHP);
 
         $config = new Configuration(['tasks' => ['directories' => ['sputnik']]]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container1 = $factory->create();
 
         // Touch the task file to change its mtime
         sleep(1);
         touch($taskDir . '/FooTask.php');
 
-        $factory2 = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory2 = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container2 = $factory2->create();
 
         $this->assertNotSame($container1::class, $container2::class);
@@ -244,7 +244,7 @@ public function testDebugModeAffectsContainer(): void
     {
         $config = new Configuration([]);
 
-        $factoryDebug = new ContainerFactory($config, $this->tempDir, 'default', debugMode: true);
+        $factoryDebug = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default', debugMode: true);
         $containerDebug = $factoryDebug->create();
 
         // In debug mode, container class name should differ on each recompile
@@ -255,7 +255,7 @@ public function testDebugModeAffectsContainer(): void
     public function testContainerParametersAreSet(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'mycontext');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'mycontext');
 
         $container = $factory->create();
 
diff --git a/tests/Integration/DependencyInjection/SecretServicesWiringTest.php b/tests/Integration/DependencyInjection/SecretServicesWiringTest.php
index 42b83d7..ae9aee6 100644
--- a/tests/Integration/DependencyInjection/SecretServicesWiringTest.php
+++ b/tests/Integration/DependencyInjection/SecretServicesWiringTest.php
@@ -30,7 +30,7 @@ protected function tearDown(): void
     public function testContainerProvidesSecretRedactor(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $redactor = $container->getByType(SecretRedactor::class);
@@ -41,7 +41,7 @@ public function testContainerProvidesSecretRedactor(): void
     public function testContainerProvidesSecretRegistry(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $registry = $container->getByType(SecretRegistry::class);
@@ -66,7 +66,7 @@ public function testRegistrySharedBetweenResolverAndRedactorIsTheSameInstance():
                 ],
             ],
         ]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
 
         $container = $factory->create();
         $resolver = $container->getByType(VariableResolver::class);
diff --git a/tests/Integration/DependencyInjection/SputnikExtensionTest.php b/tests/Integration/DependencyInjection/SputnikExtensionTest.php
index fa49384..82fa0a3 100644
--- a/tests/Integration/DependencyInjection/SputnikExtensionTest.php
+++ b/tests/Integration/DependencyInjection/SputnikExtensionTest.php
@@ -42,7 +42,7 @@ public function testTasksAreRegisteredInContainer(): void
             'tasks' => ['directories' => [$this->fixturesTasksDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Task should be registered with tag
@@ -58,7 +58,7 @@ public function testListenersAreRegisteredInContainer(): void
             'tasks' => ['directories' => [$this->fixturesListenersDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Listener should be registered with tag
@@ -77,7 +77,7 @@ public function testListenersAreWiredToEventDispatcher(): void
             'tasks' => ['directories' => [$this->fixturesListenersDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Get dispatcher and dispatch event
@@ -94,7 +94,7 @@ public function testListenersAreWiredToEventDispatcher(): void
     public function testBuiltinListenersAreRegistered(): void
     {
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Core listeners are hardwired (not tagged) — verify by service name
@@ -114,7 +114,7 @@ public function testMultipleTaskDirectoriesAreScanned(): void
             'tasks' => ['directories' => [$this->fixturesTasksDir, $this->fixturesListenersDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Tasks from fixtures dir
@@ -135,7 +135,7 @@ public function testServicesAreAutowired(): void
             'tasks' => ['directories' => [$this->fixturesTasksDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         // Task should be resolvable (autowiring should work)
@@ -162,7 +162,7 @@ public function testListenerPriorityIsRegistered(): void
             'tasks' => ['directories' => [$this->fixturesListenersDir]],
         ]);
 
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $container = $factory->create();
 
         $taggedServices = $container->findByTag('sputnik.listener');
diff --git a/tests/Unit/DependencyInjection/PsrContainerAdapterTest.php b/tests/Unit/DependencyInjection/PsrContainerAdapterTest.php
index 6426626..3e2f8cb 100644
--- a/tests/Unit/DependencyInjection/PsrContainerAdapterTest.php
+++ b/tests/Unit/DependencyInjection/PsrContainerAdapterTest.php
@@ -23,7 +23,7 @@ protected function setUp(): void
         $this->tempDir = $this->createTempDir();
 
         $config = new Configuration([]);
-        $factory = new ContainerFactory($config, $this->tempDir, 'default');
+        $factory = new ContainerFactory($config, $this->tempDir, $this->tempDir, 'default');
         $netteContainer = $factory->create();
         $this->adapter = new PsrContainerAdapter($netteContainer);
     }
diff --git a/tests/Unit/Support/ProjectLocatorTest.php b/tests/Unit/Support/ProjectLocatorTest.php
new file mode 100644
index 0000000..972e89c
--- /dev/null
+++ b/tests/Unit/Support/ProjectLocatorTest.php
@@ -0,0 +1,72 @@
+<?php
+
+declare(strict_types=1);
+
+namespace Sputnik\Tests\Unit\Support;
+
+use Sputnik\Support\ProjectLocator;
+use Sputnik\Tests\Support\TestCase;
+
+final class ProjectLocatorTest extends TestCase
+{
+    private string $tempDir;
+
+    protected function setUp(): void
+    {
+        parent::setUp();
+        $this->tempDir = $this->createTempDir();
+    }
+
+    protected function tearDown(): void
+    {
+        $this->removeTempDir($this->tempDir);
+        parent::tearDown();
+    }
+
+    public function testFindsTheDirectoryHoldingTheConfig(): void
+    {
+        touch($this->tempDir . '/.sputnik.dist.neon');
+
+        $this->assertSame(realpath($this->tempDir), ProjectLocator::locate($this->tempDir));
+    }
+
+    public function testWalksUpFromASubdirectory(): void
+    {
+        touch($this->tempDir . '/.sputnik.dist.neon');
+        $deep = $this->tempDir . '/htdocs/web/sites';
+        mkdir($deep, 0755, true);
+
+        $this->assertSame(realpath($this->tempDir), ProjectLocator::locate($deep));
+    }
+
+    public function testTheLocalOverrideAloneAlsoMarksAProject(): void
+    {
+        // .sputnik.neon without a committed dist file is a valid project.
+        touch($this->tempDir . '/.sputnik.neon');
+
+        $this->assertSame(realpath($this->tempDir), ProjectLocator::locate($this->tempDir));
+    }
+
+    public function testTheNearestConfigWins(): void
+    {
+        touch($this->tempDir . '/.sputnik.dist.neon');
+        $inner = $this->tempDir . '/inner';
+        mkdir($inner, 0755, true);
+        touch($inner . '/.sputnik.dist.neon');
+        mkdir($inner . '/deeper', 0755, true);
+
+        $this->assertSame(realpath($inner), ProjectLocator::locate($inner . '/deeper'));
+    }
+
+    public function testNoConfigAnywhereMeansNoProject(): void
+    {
+        // Nothing may be persisted in this case, so null has to be an answer
+        // rather than a fallback to the starting directory.
+        $this->assertNull(ProjectLocator::locate($this->tempDir));
+    }
+
+    public function testAMissingDirectoryIsNotAProject(): void
+    {
+        $this->assertNull(ProjectLocator::locate($this->tempDir . '/does-not-exist'));
+    }
+}