diff --git a/lib/heat b/lib/heat
index 5d6c6aa29b..8b6fd7fc4b 100644
--- a/lib/heat
+++ b/lib/heat
@@ -33,6 +33,7 @@ HEAT_AUTH_CACHE_DIR=${HEAT_AUTH_CACHE_DIR:-/var/cache/heat}
 HEAT_STANDALONE=`trueorfalse False $HEAT_STANDALONE`
 HEAT_CONF_DIR=/etc/heat
 HEAT_ENV_DIR=$HEAT_CONF_DIR/environment.d
+HEAT_TEMPLATES_DIR=$HEAT_CONF_DIR/templates
 
 # Functions
 # ---------
@@ -42,6 +43,7 @@ HEAT_ENV_DIR=$HEAT_CONF_DIR/environment.d
 function cleanup_heat() {
     sudo rm -rf $HEAT_AUTH_CACHE_DIR
     sudo rm -rf $HEAT_ENV_DIR
+    sudo rm -rf $HEAT_TEMPLATES_DIR
 }
 
 # configure_heat() - Set config files, create data dirs, etc
@@ -163,6 +165,12 @@ function configure_heat() {
     # copy the default environment
     cp $HEAT_DIR/etc/heat/environment.d/* $HEAT_ENV_DIR/
 
+    # heat template resources.
+    sudo mkdir -p $HEAT_TEMPLATES_DIR
+    sudo chown $STACK_USER $HEAT_TEMPLATES_DIR
+    # copy the default templates
+    cp $HEAT_DIR/etc/heat/templates/* $HEAT_TEMPLATES_DIR/
+
 }
 
 # init_heat() - Initialize database