diff --git a/.gitignore b/.gitignore
index 0cb6eeb..794dead 100644
--- a/.gitignore
+++ b/.gitignore
@@ -7,3 +7,13 @@
 /pkg/
 /spec/reports/
 /tmp/
+
+# RubyMine
+/.idea/
+
+# OSX
+.DS_Store
+
+.ruby-version
+.ruby-gemset
+
diff --git a/.ruby-gemset b/.ruby-gemset
deleted file mode 100644
index 3262880..0000000
--- a/.ruby-gemset
+++ /dev/null
@@ -1 +0,0 @@
-expando
diff --git a/.ruby-version b/.ruby-version
deleted file mode 100644
index 76521af..0000000
--- a/.ruby-version
+++ /dev/null
@@ -1 +0,0 @@
-ruby-2.2.0
diff --git a/bin/expando b/bin/expando
index fc98a7a..8276eed 100755
--- a/bin/expando
+++ b/bin/expando
@@ -9,9 +9,19 @@ include GLI::App
 
 version Expando::VERSION
 
-program_desc 'A tool for managing files written in the Expando markup language.'
-
-config_file File.join(ENV['HOME'],'.expando.rc.yaml')
+program_desc 'A tool for managing files written in the Expando language.'
+
+# Prefer using config file frow current working directory. Otherwise, use config
+# file in home directory.
+config_filename = '.expando.rc.yaml'
+current_directory_config_filename = File.join(Dir.pwd, config_filename)
+home_directory_config_filename = File.join(ENV['HOME'], config_filename)
+
+if File.exist?(current_directory_config_filename)
+  config_file current_directory_config_filename
+else
+  config_file home_directory_config_filename
+end
 
 flag :client_access_token,    desc: 'Api.ai Client Access Token'
 flag :developer_access_token, desc: 'Api.ai Developer Access Token'
@@ -47,11 +57,13 @@ command [ :update, :u ] do | c |
     entities.flag :entities_path, desc: 'The path to the directory containing entity files'
 
     entities.action do | global_options, options, args |
-      # Expand ~ in path configurations
-      entities_path = File.expand_path( options[ :entities_path ] || global_options[ :intents_path ] )
+      # Determine path to entity files
+      entities_path_from_options = options[ :entities_path ] || global_options[ :entities_path ]
+      entities_path = entities_path_from_options ?
+          File.expand_path( entities_path_from_options ) : File.join( Dir.pwd, 'entities' )
 
       if args.empty?
-        entity_names = Dir.entries( entities_path )[2..-1].collect { | f | f.gsub( '.txt', '' ) }
+        entity_names = Dir.entries( entities_path )[ 2..-1 ].collect { | f | f.gsub( '.txt', '' ) }
       else
         entity_names = args
       end
@@ -77,11 +89,13 @@ command [ :update, :u ] do | c |
     intents.flag :intents_path, desc: 'The path to the directory containing intent files'
 
     intents.action do | global_options, options, args |
-      # Expand ~ in path configurations
-      intents_path = File.expand_path( options[ :intents_path ] || global_options[ :intents_path ] )
+      # Determine path to intent files
+      intents_path_from_options = options[ :intents_path ] || global_options[ :intents_path ]
+      intents_path = intents_path_from_options ?
+          File.expand_path( intents_path_from_options ) : File.join( Dir.pwd, 'intents' )
 
       if args.empty?
-        intent_names = Dir.entries( intents_path )[2..-1].collect { | f | f.gsub( '.txt', '' ) }
+        intent_names = Dir.entries( intents_path )[ 2..-1 ].collect { | f | f.gsub( '.txt', '' ) }
       else
         intent_names = args
       end
@@ -99,4 +113,15 @@ command [ :update, :u ] do | c |
   #c.default_command :entities
 end
 
-exit run(ARGV)
\ No newline at end of file
+desc 'Initialize a new Expando project'
+long_desc <<-DESC
+  Create the necessary files and directories for a new Expando project in the
+  current working directory.
+DESC
+command [ :init, :i ] do | c |
+  c.action do
+    Expando::ProjectTemplate.init!
+  end
+end
+
+exit run(ARGV)
diff --git a/circle.yml b/circle.yml
deleted file mode 100644
index d4bce54..0000000
--- a/circle.yml
+++ /dev/null
@@ -1,8 +0,0 @@
-test:
-  override:
-    - RAILS_ENV=test bundle exec rspec -r rspec_junit_formatter --format RspecJunitFormatter -o $CIRCLE_TEST_REPORTS/rspec/junit.xml
-deployment:
-  staging:
-    branch: /.*/
-    commands:
-      - bundle exec ./bin/expando update entities app
diff --git a/lib/expando.rb b/lib/expando.rb
index f5bf99d..4f9b5c6 100644
--- a/lib/expando.rb
+++ b/lib/expando.rb
@@ -3,6 +3,7 @@
 require 'expando/entity_updater'
 require 'expando/intent_updater'
 require 'expando/expander'
+require 'expando/project_template'
 require 'api-ai-ruby'
 require 'colorize'
 require 'awesome_print'
diff --git a/lib/expando/project_template.rb b/lib/expando/project_template.rb
new file mode 100644
index 0000000..b42d901
--- /dev/null
+++ b/lib/expando/project_template.rb
@@ -0,0 +1,63 @@
+module Expando
+  class ProjectTemplate
+    class << self
+      # Initialize a new Expando project in the current working directory.
+      def init!
+        mkdir 'intents'
+        mkdir 'entities'
+
+        config_file_contents = <<-CONFIG_FILE
+# API.AI credentials - add the credentials for your agent below
+:client_access_token: REPLACE_WITH_TOKEN
+:developer_access_token: REPLACE_WITH_TOKEN
+        CONFIG_FILE
+
+        mkfile '.expando.rc.yaml', config_file_contents
+
+        circleci_config_file_contents = <<-CIRCLECI_CONFIG_FILE
+deployment:
+  staging:
+    branch: /.*/
+    commands:
+      - bundle exec ./bin/expando update intents
+      - bundle exec ./bin/expando update entities
+        CIRCLECI_CONFIG_FILE
+
+        mkfile 'circle.yaml', circleci_config_file_contents
+      end
+
+      private
+
+      # Attempt to create the specified directory. Output progress to user.
+      #
+      # @param directory [String] The directory to create.
+      def mkdir(directory)
+        full_path = File.join(Dir.pwd, directory)
+
+        if Dir.exist?(full_path)
+          puts '•'.colorize(:blue) + " #{directory} directory exists (skipping)"
+        else
+          Dir.mkdir(full_path)
+          puts '✓'.colorize(:green) + " #{directory} directory created"
+        end
+      end
+
+      # Attempt to create the specified file. Output progress to user.
+      #
+      # @param name [String] The name of the file.
+      # @param contents [String] The contents of the file.
+      def mkfile(name, contents)
+        full_path = File.join(Dir.pwd, name)
+
+        if File.exist?(name)
+          puts '•'.colorize(:blue) + " #{name} file exists (skipping)"
+        else
+          File.open(full_path, 'w') do |file|
+            file << contents
+          end
+          puts '✓'.colorize(:green) + " #{name} file created"
+        end
+      end
+    end
+  end
+end