diff --git a/solar/solar/core/handlers/ansible_template.py b/solar/solar/core/handlers/ansible_template.py
index 68ebcb4b..9a4507cf 100644
--- a/solar/solar/core/handlers/ansible_template.py
+++ b/solar/solar/core/handlers/ansible_template.py
@@ -17,7 +17,7 @@ from fabric.state import env
 import os
 
 from solar.core.log import log
-from solar.core.handlers.base import TempFileHandler
+from solar.core.handlers.base import TempFileHandler, SOLAR_TEMP_LOCAL_LOCATION
 from solar import errors
 
 # otherwise fabric will sys.exit(1) in case of errors
@@ -41,7 +41,11 @@ class AnsibleTemplate(TempFileHandler):
         self.transport_sync.copy(resource, '/vagrant/library', '/tmp')
         self.transport_sync.sync_all()
 
-        call_args = ['ansible-playbook', '--module-path', '/tmp/library', '-i', inventory_file, playbook_file]
+        # remote paths are not nested inside solar_local
+        remote_playbook_file = playbook_file.replace(SOLAR_TEMP_LOCAL_LOCATION, '/tmp/')
+        remote_inventory_file = inventory_file.replace(SOLAR_TEMP_LOCAL_LOCATION, '/tmp/')
+
+        call_args = ['ansible-playbook', '--module-path', '/tmp/library', '-i', remote_inventory_file, remote_playbook_file]
         log.debug('EXECUTING: %s', ' '.join(call_args))
 
         out = self.transport_run.run(resource, *call_args)
diff --git a/solar/solar/core/handlers/base.py b/solar/solar/core/handlers/base.py
index df25e6f0..aa44ae0a 100644
--- a/solar/solar/core/handlers/base.py
+++ b/solar/solar/core/handlers/base.py
@@ -16,6 +16,7 @@
 import os
 import shutil
 import tempfile
+import errno
 
 from jinja2 import Template
 
@@ -23,6 +24,11 @@ from solar.core.log import log
 from solar.core.transports.ssh import SSHSyncTransport, SSHRunTransport
 
 
+tempfile.gettempdir()
+
+SOLAR_TEMP_LOCAL_LOCATION = os.path.join(tempfile.tempdir, 'solar_local')
+
+
 class BaseHandler(object):
 
     def __init__(self, resources, handlers=None):
@@ -46,9 +52,17 @@ class BaseHandler(object):
 class TempFileHandler(BaseHandler):
     def __init__(self, resources, handlers=None):
         super(TempFileHandler, self).__init__(resources, handlers)
-        self.dst = tempfile.mkdtemp()
+        self.dst = None
 
     def __enter__(self):
+        try:
+            self.dst = tempfile.mkdtemp(dir=SOLAR_TEMP_LOCAL_LOCATION)
+        except OSError as ex:
+            if ex.errno == errno.ENOENT:
+                os.makedirs(SOLAR_TEMP_LOCAL_LOCATION)
+                self.dst = tempfile.mkdtemp(dir=SOLAR_TEMP_LOCAL_LOCATION)
+            else:
+                raise
         self.dirs = {}
         for resource in self.resources:
             resource_dir = tempfile.mkdtemp(suffix=resource.name, dir=self.dst)