diff --git a/README.md b/README.md
index c0f49f4..d426f5d 100644
--- a/README.md
+++ b/README.md
@@ -131,8 +131,8 @@ docker run -it --rm \
   -e LIBVIRT_DEFAULT_URI \
   -v /var/run/libvirt/:/var/run/libvirt/ \
   -v ~/.vagrant.d:/.vagrant.d \
-  -v $(pwd):$(pwd) \
-  -w $(pwd) \
+  -v $(realpath "${PWD}"):${PWD} \
+  -w $(realpath "${PWD}") \
   --network host \
   vagrantlibvirt/vagrant-libvirt:latest \
     vagrant status
@@ -141,13 +141,12 @@ docker run -it --rm \
 It's possible to define an alias in `~/.bashrc`, for example:
 ```bash
 alias vagrant='
-  mkdir -p ~/.vagrant.d/{boxes,data,tmp}; \
   docker run -it --rm \
     -e LIBVIRT_DEFAULT_URI \
     -v /var/run/libvirt/:/var/run/libvirt/ \
     -v ~/.vagrant.d:/.vagrant.d \
-    -v $(pwd):$(pwd) \
-    -w $(pwd) \
+    -v $(realpath "${PWD}"):${PWD} \
+    -w $(realpath "${PWD}") \
     --network host \
     vagrantlibvirt/vagrant-libvirt:latest \
     vagrant'
diff --git a/entrypoint.sh b/entrypoint.sh
index db37a7f..c57bbda 100755
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -13,43 +13,63 @@ then
     exit 2
 fi
 
-for dir in boxes data tmp
-do
-    # if the directory hasn't been explicitly mounted over, remove it.
-    if [[ -e "/vagrant/${dir}/.remove" ]]
-    then
-        rm -rf /vagrant/${dir}
-        ln -s ${vdir}/${dir} /vagrant/${dir}
-    fi
-done
-
 vdir_mnt=$(stat -c %m ${vdir})
 case "${vdir_mnt%%/}" in
     /*)
         # user mounted vagrant home is not mounted on /, so
         # presumably it is a mount bind or mounted volume and should
-        # be able to determine suitable uid/gid
+        # be able to persist boxes and machine index.
+        #
         ;;
     *)
-        echo "${vdir} is not set to a bind mounted volume, will not be able"
-        echo "to automatically determine suitable uid/gid to execute under."
-        if [[ -z "${USER_UID:-}" ]] || [[ -z "${USER_GID:-}" ]]
-        then
-            echo "USER_UID and USER_GID must be explicitly provided when"
-            echo "auto-detection is unable to be used"
-
-            exit 2
-        fi
+        echo -n "${vdir} is not set to a bind mounted volume, may not be able "
+        echo -n "to persist the machine index which may result in some unexpected "
+        echo "behaviour."
         ;;
 esac
 
-USER_UID=${USER_UID:-$(stat -c %u ${vdir})} || exit 3
-USER_GID=${USER_GID:-$(stat -c %g ${vdir})} || exit 3
-if [[ ${USER_UID} -eq 0 ]] && [[ -z "${IGNORE_RUN_AS_ROOT:-}" ]]
+# To determine default user to use search for the Vagrantfile starting with
+# the current working directory. If it can't be found, use the owner/group
+# from the current working directory anyway
+vagrantfile="${VAGRANT_VAGRANTFILE:-Vagrantfile}"
+path="$(pwd)"
+while [[ "$path" != "" && ! -e "$path/$1" ]]
+do
+    path=${path%/*}
+done
+
+if [[ "$path" == "" ]]
 then
-    echo "WARNING! Running as root, if this breaks, you get to keep both pieces"
+    path="$(pwd)"
 fi
 
+USER_UID=${USER_UID:-$(stat -c %u ${path})} || exit 3
+USER_GID=${USER_GID:-$(stat -c %g ${path})} || exit 3
+if [[ ${USER_UID} -eq 0 ]]
+then
+    if [[ -z "${IGNORE_RUN_AS_ROOT:-}" ]]
+    then
+        echo "WARNING! Running as root, if this breaks, you get to keep both pieces"
+    fi
+else
+    vdir_uid=$(stat -c %u ${vdir})
+    if [[ "${vdir_uid}" != "${USER_UID}" ]]
+    then
+        if [[ -z "$(ls -A ${vdir})" ]]
+        then
+            # vdir has just been created and is owned by the wrong user
+            # modify the ownership to allow the required directories to
+            # be created
+            chown ${USER_UID}:${USER_GID} ${vdir}
+        else
+            echo -n "ERROR: Attempting to use a directory on ${vdir} that is not "
+            echo -n "owned by the user that owns ${path}/${vagrantfile} is not "
+            echo "supported!"
+
+            exit 2
+        fi
+    fi
+fi
 
 export USER=vagrant
 export GROUP=users
@@ -78,6 +98,19 @@ then
     ${USERCMD} --shell /bin/bash -u ${USER_UID} -g ${USER_GID} -o -c "" -m ${USER} >/dev/null 2>&1 || exit 3
 fi
 
+# Perform switching in of boxes, data directory containing machine index
+# and temporary directory from the user mounted environment
+for dir in boxes data tmp
+do
+    # if the directory hasn't been explicitly mounted over, remove it.
+    if [[ -e "/vagrant/${dir}/.remove" ]]
+    then
+        rm -rf /vagrant/${dir}
+        [[ ! -e ${vdir}/${dir} ]] && gosu ${USER} mkdir ${vdir}/${dir}
+        ln -s ${vdir}/${dir} /vagrant/${dir}
+    fi
+done
+
 # make sure the directories can be written to by vagrant otherwise will
 # get a start up error
 find ${VAGRANT_HOME} -maxdepth 1 ! -exec chown -h ${USER}:${GROUP} {} \+