diff --git a/docs/projects.rst b/docs/projects.rst
index e364cb2e6..1ff43b02c 100644
--- a/docs/projects.rst
+++ b/docs/projects.rst
@@ -18,12 +18,12 @@ Git versioning can be enabled by creating a `local_settings.py` file in the `sly
 .. code-block:: python
 
     import os
-    
+
     SPEC_FACTORY = {
         'PROJECT_SPEC': 'slyd.gitstorage.projectspec.ProjectSpec',
         'PROJECT_MANAGER': 'slyd.gitstorage.projects.ProjectsManager',
         'PARAMS': {
-            'storage_backend': 'dulwich.repo.Repo',
+            'storage_backend': 'fs_repo.repo.FsRepo',
             'location': os.environ.get('PORTIA_DATA_DIR', SPEC_DATA_DIR)
         },
         'CAPABILITIES': {
diff --git a/portia_server/fs_repo/__init__.py b/portia_server/fs_repo/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/portia_server/fs_repo/repo.py b/portia_server/fs_repo/repo.py
new file mode 100644
index 000000000..45edda353
--- /dev/null
+++ b/portia_server/fs_repo/repo.py
@@ -0,0 +1,73 @@
+import errno
+import os
+import six
+import sys
+from django.conf import settings
+from dulwich.object_store import PACKDIR
+from dulwich.repo import (
+    Repo, BASE_DIRECTORIES, CONTROLDIR, DEFAULT_REF, OBJECTDIR
+)
+
+
+def root_path(name):
+    return os.path.join(settings.MEDIA_ROOT, name)
+
+
+def maybe_mkdirs(path):
+    try:
+        os.makedirs(path)
+    except OSError as e:
+        if e.errno != errno.EEXIST:
+            six.reraise(*sys.exc_info())
+
+
+class FsRepo(Repo):
+    def __init__(self, name):
+        self._name = name
+        super(FsRepo, self).__init__(root_path(name or ''))
+        self.bare = True
+
+    def head(self):
+        """Return the SHA1 pointed at by HEAD."""
+        return self.refs['refs/heads/master']
+
+    @classmethod
+    def init_bare(cls, path):
+        return super(FsRepo, cls).init_bare(
+            os.path.join(root_path(path), CONTROLDIR))
+
+    @classmethod
+    def _init_maybe_bare(cls, path, bare):
+        for d in BASE_DIRECTORIES:
+            maybe_mkdirs(os.path.join(path, *d))
+        objectdir_path = os.path.join(path, OBJECTDIR)
+        for d in ('info', PACKDIR):
+            maybe_mkdirs(os.path.join(objectdir_path, d))
+        ret = cls(path)
+        ret.refs.set_symbolic_ref(b'HEAD', DEFAULT_REF)
+        ret._init_files(bare)
+        return ret
+
+    @classmethod
+    def open(cls, name):
+        """Open an existing repository."""
+        return cls(name)
+
+    @classmethod
+    def repo_exists(cls, name):
+        """Check if a repository exists."""
+        return (
+            os.path.isdir(root_path(name)) and
+            os.path.isdir(os.path.join(root_path(name), CONTROLDIR))
+        )
+
+    @classmethod
+    def list_repos(cls):
+        """List all repository names."""
+        return [d for d in os.listdir(settings.MEDIA_ROOT)
+                if cls.repo_exists(d)]
+
+    @classmethod
+    def delete_repo(cls, name):
+        """Delete a repository."""
+        os.remove(root_path(name))
diff --git a/portia_server/storage/backends.py b/portia_server/storage/backends.py
index cf9c95332..3eaca50b8 100644
--- a/portia_server/storage/backends.py
+++ b/portia_server/storage/backends.py
@@ -17,7 +17,7 @@
 try:
     from dulwich.diff_tree import tree_changes
     from dulwich.objects import Blob, Tree
-    from dulwich.errors import ObjectMissing
+    from dulwich.errors import NotGitRepository, ObjectMissing
 except ImportError:
     pass  # Dulwich not required when using FS backend
 from six import iteritems, text_type, string_types
@@ -69,8 +69,8 @@ def init_project(self):
     def get_projects(cls, user):
         # return an OrderedDict of id => name pairs
         try:
-            dirs, _ = cls('').listdir('')
-            return OrderedDict((project, project) for project in dirs)
+            projects = Repoman.list_repos()
+            return OrderedDict((project, project) for project in projects)
         except OSError as ex:
             if ex.errno != errno.ENOENT:
                 six.reraise(*sys.exc_info())
@@ -194,7 +194,10 @@ def __init__(self, name, author=None):
             return
         self._tree, self._working_tree = None, None
         self.author = author
-        repo = Repoman.open_repo(name, author)
+        try:
+            repo = Repoman.open_repo(name, author)
+        except NotGitRepository:
+            repo = Repoman.create_repo(name, author)
         self.repo = repo
         self.branch = branch = (author and author.username) or DEFAULT_USER
         self.checkout(branch=branch)
@@ -244,7 +247,7 @@ def checkout(self, commit=None, branch=None, retry=True):
     @classmethod
     def setup(cls):
         Repoman.setup(getattr(settings, 'GITSTORAGE_REPO_BACKEND',
-                              'dulwich.repo.Repo'))
+                              'fs_repo.repo.FsRepo'))
 
     def _open(self, name, mode='rb'):
         name = self.path(name)
diff --git a/portia_server/storage/repoman.py b/portia_server/storage/repoman.py
index be083c43e..62e8845af 100644
--- a/portia_server/storage/repoman.py
+++ b/portia_server/storage/repoman.py
@@ -64,7 +64,7 @@ def setup(cls, storage_backend):
     def create_repo(cls, repo_name, author=None):
         """Create a new repository named repo_name."""
         if cls.storage.repo_exists(repo_name):
-            raise NameError()
+            raise NameError('Project already exists with that name')
         repoman = cls(author)
         repoman._repo = cls.storage.init_bare(repo_name)
         tree = Tree()