diff --git a/default.nix b/default.nix
index 33ed76d..afb6fd2 100644
--- a/default.nix
+++ b/default.nix
@@ -109,13 +109,31 @@ in
     users.users.sv22900.extraGroups = [ "docker" ];
     users.users.hdh20267.extraGroups = [ "docker" ];
 
+    # Create persistent directories and .env file location
+    systemd.tmpfiles.rules = [
+      "d /var/lib/usda-vision 0755 root root -"
+      "f /var/lib/usda-vision/.env 0644 root root -"
+      "L+ ${usda-vision-app}/opt/usda-vision/management-dashboard-web-app/.env - - - - /var/lib/usda-vision/.env"
+    ];
+
     # Systemd service to manage usda-vision docker compose
     systemd.services.usda-vision = {
       description = "USDA Vision Docker Compose Stack";
-      after = [ "docker.service" "network-online.target" ];
+      after = [ "docker.service" "network-online.target" "systemd-tmpfiles-setup.service" ];
       wants = [ "network-online.target" ];
       wantedBy = [ "multi-user.target" ];
       
+      preStart = ''
+        # Ensure .env file exists with defaults if empty
+        if [ ! -s /var/lib/usda-vision/.env ]; then
+          if [ -f ${usda-vision-app}/opt/usda-vision/.env.example ]; then
+            echo "Copying .env.example to /var/lib/usda-vision/.env"
+            cp ${usda-vision-app}/opt/usda-vision/.env.example /var/lib/usda-vision/.env
+            echo "Please edit /var/lib/usda-vision/.env with your configuration"
+          fi
+        fi
+      '';
+      
       serviceConfig = {
         Type = "oneshot";
         RemainAfterExit = true;