diff --git a/lib/sugar/activity/activity.py b/lib/sugar/activity/activity.py
index 7c095c5a..71e53452 100644
--- a/lib/sugar/activity/activity.py
+++ b/lib/sugar/activity/activity.py
@@ -689,7 +689,7 @@ class Activity(Window, gtk.Container):
             if self._jobject.file_path:
                 self.write_file(self._jobject.file_path)
             else:
-                file_path = os.path.join(self.get_activity_root(), 'data',
+                file_path = os.path.join(self.get_activity_root(), 'instance',
                                          '%i' % time.time())
                 self.write_file(file_path)
                 self._owns_file = True
diff --git a/lib/sugar/activity/activityfactory.py b/lib/sugar/activity/activityfactory.py
index 46b86891..8e49e948 100644
--- a/lib/sugar/activity/activityfactory.py
+++ b/lib/sugar/activity/activityfactory.py
@@ -82,6 +82,10 @@ def get_environment(activity):
     if not os.path.exists(activity_root):
         os.mkdir(activity_root)
 
+    data_dir = os.path.join(activity_root, 'instance')
+    if not os.path.exists(data_dir):
+        os.mkdir(data_dir)
+
     data_dir = os.path.join(activity_root, 'data')
     if not os.path.exists(data_dir):
         os.mkdir(data_dir)