diff --git a/dbus-installed.conf.in b/dbus-installed.conf.in
index de7d01e2..7b6d6074 100644
--- a/dbus-installed.conf.in
+++ b/dbus-installed.conf.in
@@ -12,6 +12,7 @@
 
   <servicedir>@prefix@/share/sugar/activities</servicedir>
   <servicedir>@prefix@/share/sugar/services</servicedir>
+  <servicedir>/tmp/sugar-services</servicedir>
 
   <policy context="default">
     <!-- Allow everything to be sent -->
diff --git a/sugar-emulator b/sugar-emulator
index a0426184..d8d1d639 100755
--- a/sugar-emulator
+++ b/sugar-emulator
@@ -76,9 +76,9 @@ for i in range(1, len(sys.argv)):
 emulator = Emulator(fullscreen)
 emulator.start()
 
-# FIXME temporary until dbus support services in home dir
-if not os.path.isdir('/tmp/sugar-services'):
-	os.mkdir('/tmp/sugar-services')
+if env.get_dbus_version() < '0.95':
+	if not os.path.isdir('/tmp/sugar-services'):
+		os.mkdir('/tmp/sugar-services')
 
 os.execlp('dbus-launch', 'dbus-launch', '--exit-with-session',
 		  '--config-file=%s' % env.get_dbus_config(), program)
diff --git a/sugar/activity/bundleregistry.py b/sugar/activity/bundleregistry.py
index 582c340b..c6d05319 100644
--- a/sugar/activity/bundleregistry.py
+++ b/sugar/activity/bundleregistry.py
@@ -10,10 +10,13 @@ class _ServiceParser(ConfigParser):
 
 class _ServiceManager(object):
 	def __init__(self):
-		self._path = '/tmp/sugar-services'
+		if env.get_dbus_version() < '0.95':
+			self._path = '/tmp/sugar-services'
+		else:
+			self._path = os.path.expanduser('~/.local/share/dbus-1/services')
 
 		if not os.path.isdir(self._path):
-			os.mkdir(self._path)
+			os.makedirs(self._path)
 
 	def add(self, bundle):
 		name = bundle.get_service_name()
diff --git a/sugar/env.py b/sugar/env.py
index f776865a..3f958b23 100644
--- a/sugar/env.py
+++ b/sugar/env.py
@@ -56,3 +56,15 @@ def get_dbus_config():
 
 def get_shell_bin_dir():
 	return sugar_shell_bin_dir
+
+_dbus_version = None
+def get_dbus_version():
+	global _dbus_version
+	if _dbus_version == None:
+		f = os.popen('dbus-daemon --version')
+		version_line = f.readline()
+		if version_line:
+			splitted_line = version_line.split()
+			_dbus_version = splitted_line[len(splitted_line) - 1]
+		f.close()
+	return _dbus_version