@@ -31,13 +31,21 @@ func (c *ApplyCommand) Run(args []string) int {
 		return 1
 	}
 
+	var configPath string
 	args = cmdFlags.Args()
 	if len(args) > 1 {
 		c.Ui.Error("The apply command expacts at most one argument.")
 		cmdFlags.Usage()
 		return 1
+	} else if len(args) == 1 {
+		configPath = args[0]
+	} else {
+		var err error
+		configPath, err = os.Getwd()
+		if err != nil {
+			c.Ui.Error(fmt.Sprintf("Error getting pwd: %s", err))
+		}
 	}
-	configPath := args[0]
 
 	// If we don't specify an output path, default to out normal state
 	// path.
 
@@ -190,6 +190,52 @@ func TestApply_error(t *testing.T) {
 	}
 }
 
+func TestApply_noArgs(t *testing.T) {
+	cwd, err := os.Getwd()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if err := os.Chdir(testFixturePath("plan")); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer os.Chdir(cwd)
+
+	statePath := testTempFile(t)
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &ApplyCommand{
+		ContextOpts: testCtxConfig(p),
+		Ui:          ui,
+	}
+
+	args := []string{
+		"-init",
+		"-state", statePath,
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	if _, err := os.Stat(statePath); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	f, err := os.Open(statePath)
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer f.Close()
+
+	state, err := terraform.ReadState(f)
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if state == nil {
+		t.Fatal("state should not be nil")
+	}
+}
+
 func TestApply_plan(t *testing.T) {
 	planPath := testPlanFile(t, &terraform.Plan{
 		Config: new(config.Config),