--- a/cipd
+++ b/cipd
@@ -93,7 +93,8 @@
 CIPD_BACKEND="https://chrome-infra-packages.appspot.com"
 VERSION_FILE="${DEPOT_TOOLS_DIR}/cipd_client_version"
 
-CIPD_ROOT="${DEPOT_TOOLS_DIR}"
+CIPD_ROOT="${DEPOT_TOOLS_CIPD_ROOT:-${XDG_CACHE_HOME:-${HOME}/.cache}/depot_tools}"
+mkdir -p "${CIPD_ROOT}"
 # value in .cipd_client_root file overrides the default root.
 CIPD_ROOT_OVERRIDE_FILE="${DEPOT_TOOLS_DIR}/.cipd_client_root"
 if [ -f "${CIPD_ROOT_OVERRIDE_FILE}" ]; then
--- a/cipd_bin_setup.sh
+++ b/cipd_bin_setup.sh
@@ -5,7 +5,8 @@
 function cipd_bin_setup {
     local MYPATH="${DEPOT_TOOLS_DIR:-$(dirname "${BASH_SOURCE[0]}")}"
     local ENSURE="$MYPATH/cipd_manifest.txt"
-    local ROOT="$MYPATH/.cipd_bin"
+    local ROOT="${DEPOT_TOOLS_CIPD_ROOT:-${XDG_CACHE_HOME:-${HOME}/.cache}/depot_tools}"
+    mkdir -p "${ROOT}"
 
     UNAME="${DEPOT_TOOLS_UNAME_S:-$(uname -s | tr '[:upper:]' '[:lower:]')}"
     case $UNAME in