diff --git a/doc/user_guide.md b/doc/user_guide.md
index 3a1e31c..8e98b1f 100644
--- a/doc/user_guide.md
+++ b/doc/user_guide.md
@@ -78,9 +78,12 @@ cache file in order to avoid rebuilding a target when it is already up to date.
 ### Build Directory
 
 Rscons was designed to store temporary build artifacts (for example, object
-files, dependency files, etc...) in a `build` directory.
+files, dependency files, etc...) and build system metadata in a
+"build directory".
 This keeps files generated by the build cleanly separated from user-controlled
 source files.
+By default a build directory named "build" is used, but this can be overridden
+by the user by using the `-b`/`--build` command-line option.
 
 ## Getting Started
 
@@ -94,7 +97,7 @@ To use Rscons on your project, you must:
 
 Rscons is designed to be distributed as a stand-alone single file script that
 can be copied into and versioned in a project's source tree.
-The only dependency required to run Rscons is to have a Ruby interpreter
+The only requirement to run Rscons is that the system has a Ruby interpreter
 installed.
 The latest release can be downloaded from [https://github.com/holtrop/rscons/releases](https://github.com/holtrop/rscons/releases).
 Simply copy the `rscons` executable script into the desired location within
diff --git a/lib/rscons/application.rb b/lib/rscons/application.rb
index 1d18c98..9ddf3e0 100644
--- a/lib/rscons/application.rb
+++ b/lib/rscons/application.rb
@@ -5,6 +5,10 @@ module Rscons
   # Functionality for an instance of the rscons application invocation.
   class Application
 
+    # @return [String]
+    #   Top-level build directory.
+    attr_accessor :build_dir
+
     # @return [Boolean]
     #   Whether to output ANSI color escape sequences.
     attr_accessor :do_ansi_color
@@ -23,6 +27,7 @@ module Rscons
 
     # Create Application instance.
     def initialize
+      @build_dir = "build"
       @n_threads = Util.determine_n_threads
       @vars = VarSet.new
       @operations = Set.new
@@ -171,11 +176,8 @@ module Rscons
     #   Exit code.
     def distclean
       cache = Cache.instance
-      build_dir = cache["configuration_data"]["build_dir"]
       clean
-      if build_dir
-        FileUtils.rm_rf(build_dir)
-      end
+      FileUtils.rm_rf(@build_dir)
       cache.clear
       0
     end
diff --git a/lib/rscons/cache.rb b/lib/rscons/cache.rb
index 343e292..3cc8e04 100644
--- a/lib/rscons/cache.rb
+++ b/lib/rscons/cache.rb
@@ -51,9 +51,6 @@ module Rscons
   #   }
   class Cache
 
-    # Name of the file to store cache information in
-    CACHE_FILE = ".rsconscache"
-
     # Prefix for phony cache entries.
     PHONY_PREFIX = ":PHONY:"
 
@@ -70,6 +67,11 @@ module Rscons
       initialize!
     end
 
+    # Get the path to the cache file.
+    def cache_file
+      File.join(Rscons.application.build_dir, ".rsconscache")
+    end
+
     # Access cache value.
     def [](key)
       @cache[key]
@@ -84,7 +86,7 @@ module Rscons
     #
     # @return [void]
     def clear
-      FileUtils.rm_f(CACHE_FILE)
+      FileUtils.rm_f(cache_file)
       initialize!
     end
 
@@ -100,7 +102,7 @@ module Rscons
     # @return [void]
     def write
       @cache["version"] = VERSION
-      File.open(CACHE_FILE, "w") do |fh|
+      File.open(cache_file, "w") do |fh|
         fh.puts(JSON.dump(@cache))
       end
     end
@@ -360,9 +362,9 @@ module Rscons
     # Create a Cache object and load in the previous contents from the cache
     # file.
     def initialize!
-      @cache = JSON.load(File.read(CACHE_FILE)) rescue {}
+      @cache = JSON.load(File.read(cache_file)) rescue {}
       unless @cache.is_a?(Hash)
-        $stderr.puts "Warning: #{CACHE_FILE} was corrupt. Contents:\n#{@cache.inspect}"
+        $stderr.puts "Warning: #{cache_file} was corrupt. Contents:\n#{@cache.inspect}"
         @cache = {}
       end
       @cache["targets"] ||= {}
diff --git a/lib/rscons/cli.rb b/lib/rscons/cli.rb
index 8c60c09..e651bcc 100644
--- a/lib/rscons/cli.rb
+++ b/lib/rscons/cli.rb
@@ -6,6 +6,7 @@ USAGE = <<EOF
 Usage: #{$0} [global options] [operation] [operation options]
 
 Global options:
+  -b BUILD, --build=BUILD     Set build directory (default: build)
   -f FILE                     Use FILE as Rsconscript
   -F, --show-failure          Show failed command log from previous build and exit
   -h, --help                  Show rscons help and exit
@@ -23,7 +24,6 @@ Operations:
   uninstall                   Uninstall project from installation destination
 
 Configure options:
-  -b BUILD, --build=BUILD     Set build directory (default: build)
   --prefix=PREFIX             Set installation prefix (default: /usr/local)
 EOF
 
@@ -56,6 +56,10 @@ module Rscons
       private
 
       def add_global_options(opts)
+        opts.on("-b", "--build DIR") do |build_dir|
+          Rscons.application.build_dir = build_dir
+        end
+
         opts.on("-j NTHREADS") do |n_threads|
           Rscons.application.n_threads = n_threads.to_i
         end
@@ -156,10 +160,6 @@ module Rscons
       end
 
       def parse_configure_args(opts, argv, options)
-        opts.on("-b", "--build DIR") do |build_dir|
-          options[:build_dir] = build_dir
-        end
-
         opts.on("--prefix PREFIX") do |prefix|
           options[:prefix] = prefix
         end
diff --git a/lib/rscons/configure_op.rb b/lib/rscons/configure_op.rb
index fe8d9a9..a664e80 100644
--- a/lib/rscons/configure_op.rb
+++ b/lib/rscons/configure_op.rb
@@ -9,30 +9,25 @@ module Rscons
     #
     # @param options [Hash]
     #   Optional parameters.
-    # @option options [String] :build_dir
-    #   Build directory.
     # @option options [String] :prefix
     #   Install prefix.
     # @option options [String] :project_name
     #   Project name.
     def initialize(options)
       # Default options.
-      options[:build_dir] ||= "build"
       options[:prefix] ||= "/usr/local"
-      @work_dir = "#{options[:build_dir]}/configure"
+      @work_dir = "#{Rscons.application.build_dir}/configure"
       FileUtils.mkdir_p(@work_dir)
       @log_fh = File.open("#{@work_dir}/config.log", "wb")
       cache = Cache.instance
       cache["failed_commands"] = []
       cache["configuration_data"] = {}
-      cache["configuration_data"]["build_dir"] = options[:build_dir]
       cache["configuration_data"]["prefix"] = options[:prefix]
       if project_name = options[:project_name]
         Ansi.write($stdout, "Configuring ", :cyan, project_name, :reset, "...\n")
       else
         $stdout.puts "Configuring project..."
       end
-      Ansi.write($stdout, "Setting build directory... ", :green, options[:build_dir], :reset, "\n")
       Ansi.write($stdout, "Setting prefix... ", :green, options[:prefix], :reset, "\n")
       store_merge("prefix" => options[:prefix])
     end
diff --git a/lib/rscons/environment.rb b/lib/rscons/environment.rb
index 4c53240..ab728c8 100644
--- a/lib/rscons/environment.rb
+++ b/lib/rscons/environment.rb
@@ -97,7 +97,7 @@ module Rscons
         else
           :short
         end
-      @build_root = "#{Cache.instance["configuration_data"]["build_dir"]}/e.#{@id}"
+      @build_root = "#{Rscons.application.build_dir}/e.#{@id}"
       @n_threads = Rscons.application.n_threads
 
       if block_given?
diff --git a/spec/build_tests_spec.rb b/spec/build_tests_spec.rb
index 092e2e7..49c40e2 100644
--- a/spec/build_tests_spec.rb
+++ b/spec/build_tests_spec.rb
@@ -208,6 +208,15 @@ EOF
     expect(nr(`./simple.exe`)).to eq "This is a simple C program\n"
   end
 
+  it "builds a C program with one source file in an alternate build directory" do
+    test_dir("simple")
+    result = run_rscons(rscons_args: %w[-b b])
+    expect(result.stderr).to eq ""
+    expect(Dir.exist?("build")).to be_falsey
+    expect(File.exists?("b/e.1/simple.c.o")).to be_truthy
+    expect(nr(`./simple.exe`)).to eq "This is a simple C program\n"
+  end
+
   it "allows specifying a Builder object as the source to another build target" do
     test_dir("simple")
     result = run_rscons(rsconscript: "builder_as_source.rb")
@@ -1296,7 +1305,8 @@ EOF
   context "Cache management" do
     it "prints a warning when the cache is corrupt" do
       test_dir("simple")
-      File.open(Rscons::Cache::CACHE_FILE, "w") do |fh|
+      FileUtils.mkdir("build")
+      File.open("build/.rsconscache", "w") do |fh|
         fh.puts("[1]")
       end
       result = run_rscons
@@ -1748,6 +1758,22 @@ EOF
       expect(result.status).to_not eq 0
     end
 
+    it "automatically runs the configure operation if the project is not yet configured in the given build directory" do
+      test_dir "configure"
+
+      result = run_rscons(rsconscript: "check_c_compiler.rb")
+      expect(result.stderr).to eq ""
+      expect(result.status).to eq 0
+      expect(result.stdout).to match /Checking for C compiler\.\.\./
+      expect(Dir.exist?("build/configure")).to be_truthy
+
+      result = run_rscons(rsconscript: "check_c_compiler.rb", rscons_args: %w[--build=bb])
+      expect(result.stderr).to eq ""
+      expect(result.status).to eq 0
+      expect(result.stdout).to match /Checking for C compiler\.\.\./
+      expect(Dir.exist?("bb/configure")).to be_truthy
+    end
+
     context "check_c_compiler" do
       {"check_c_compiler.rb" => "when no arguments are given",
        "check_c_compiler_find_first.rb" => "when arguments are given"}.each_pair do |rsconscript, desc|
@@ -2284,7 +2310,6 @@ EOF
       expect(result.stderr).to eq ""
       expect(result.status).to eq 0
       expect(result.stdout).to match /Configuring configure test\.\.\./
-      expect(result.stdout).to match /Setting build directory\.\.\. bb/
       expect(result.stdout).to match %r{Setting prefix\.\.\. /my/prefix}
       expect(result.stdout).to match /Checking for C compiler\.\.\. gcc/
       expect(result.stdout).to match /Checking for C\+\+ compiler\.\.\. g\+\+/
@@ -2295,6 +2320,8 @@ EOF
       expect(result.stdout).to match /Checking for D import 'std.stdio'\.\.\. found/
       expect(result.stdout).to match /Checking for library 'm'\.\.\. found/
       expect(result.stdout).to match /Checking for program 'ls'\.\.\. .*ls/
+      expect(Dir.exist?("build")).to be_falsey
+      expect(Dir.exist?("bb/configure")).to be_truthy
     end
 
     it "aggregates multiple set_define's" do
@@ -2357,7 +2384,6 @@ EOF
       expect(result.status).to eq 0
       expect(File.exists?("simple.o")).to be_falsey
       expect(File.exists?("build")).to be_falsey
-      expect(File.exists?(Rscons::Cache::CACHE_FILE)).to be_falsey
     end
   end