diff --git a/xos/synchronizers/base/ansible.py b/xos/synchronizers/base/ansible.py
index fda2300..17a0c45 100644
--- a/xos/synchronizers/base/ansible.py
+++ b/xos/synchronizers/base/ansible.py
@@ -16,7 +16,7 @@
     step_dir = Config().observer_steps_dir
     sys_dir = Config().observer_sys_dir
 except:
-    step_dir = XOS_DIR + '/observer/steps'
+    step_dir = XOS_DIR + '/synchronizers/openstack/steps'
     sys_dir = '/opt/opencloud'
 
 os_template_loader = jinja2.FileSystemLoader( searchpath=step_dir)
diff --git a/xos/synchronizers/base/event_loop.py b/xos/synchronizers/base/event_loop.py
index 1e8942c..6cfc9f6 100644
--- a/xos/synchronizers/base/event_loop.py
+++ b/xos/synchronizers/base/event_loop.py
@@ -121,7 +121,7 @@
 			if hasattr(Config(), "observer_steps_dir"):
 				step_dir = Config().observer_steps_dir
 			else:
-				step_dir = XOS_DIR + "/observer/steps"
+				step_dir = XOS_DIR + "/synchronizers/openstack/steps"
 
 		for fn in os.listdir(step_dir):
 			pathname = os.path.join(step_dir,fn)