diff --git a/v2/build-system.jam b/v2/build-system.jam
index 0fe4c0121..e0ad90560 100755
--- a/v2/build-system.jam
+++ b/v2/build-system.jam
@@ -30,7 +30,7 @@ import version ;
 
 # Check if we can load 'test-config.jam'. If we can, load it and
 # ignore user configs.
-local test-config = [ GLOB [ modules.peek : BOOST_BUILD_PATH ] : test-config.jam ] ;
+local test-config = [ GLOB [ os.environ BOOST_BUILD_PATH ] : test-config.jam ] ;
 if $(test-config)
 {
     module test-config 
@@ -46,10 +46,7 @@ if $(test-config) || --ignore-config in [ modules.peek : ARGV ]
     ignore-config = true ;
 }
 
-local HOME = [ modules.peek : HOME ] ;
-# Bjam breaks vars at spaces -- fix this back.
-HOME = $(HOME:J=" ") ;
-local user-path = $(HOME) [ modules.peek : BOOST_BUILD_PATH ] ;        
+local user-path = [ os.home-directories ] [ os.environ BOOST_BUILD_PATH ] ;
     
 # Load site-config.
 module site-config 
diff --git a/v2/doc/src/reference.xml b/v2/doc/src/reference.xml
index 02a62fc6c..06b3ba7c7 100644
--- a/v2/doc/src/reference.xml
+++ b/v2/doc/src/reference.xml
@@ -85,11 +85,13 @@ boost-build build-system ;
 
               <entry>
                 <simpara><code>%SystemRoot%</code></simpara>
+                <simpara><code>%HOMEDRIVE%%HOMEPATH%</code></simpara>
                 <simpara><code>%HOME%</code></simpara>
                 <simpara><code>%BOOST_BUILD_PATH%</code></simpara>
               </entry>
 
               <entry>
+                <simpara><code>%HOMEDRIVE%%HOMEPATH%</code></simpara>
                 <simpara><code>%HOME%</code></simpara>
                 <simpara><code>%BOOST_BUILD_PATH%</code></simpara>
               </entry>
diff --git a/v2/util/os.jam b/v2/util/os.jam
index 59ac36b4e..c486565e7 100644
--- a/v2/util/os.jam
+++ b/v2/util/os.jam
@@ -4,6 +4,14 @@
 #  warranty, and with no claim as to its suitability for any purpose.
 
 import modules ;
+
+# Return the value(s) of the given environment variable(s) at the time
+# bjam was invoked.
+rule environ ( variable-names + )
+{
+    return [ modules.peek .ENVIRON : $(variable-names) ] ;
+}
+
 .name = [ modules.peek : OS ] ;
 .platform = [ modules.peek : OSPLAT ] ;
 .version = [ modules.peek : OSVER ] ;
@@ -50,6 +58,22 @@ EXPORT $(__name__) : $(.constants) ;
 .expand-variable-prefix = $ ;
 .expand-variable-suffix = "" ;
 
+if $(.name) = NT
+{
+    local home = [ environ HOMEDRIVE HOMEPATH HOME ] ;
+    .home-directories = $(home[1])$(home[2]) $(home[3]) ;
+}
+else
+{
+    .home-directories = [ environ HOME ] ;
+}
+
+# Can't use 'constant' mechanism because it only returns 1-element
+# values.
+rule home-directories ( )
+{
+    return $(.home-directories) ;
+}
 # Return the string needed to represent the expansion of the named
 # shell variable.
 rule expand-variable ( variable )