diff --git a/core/src/main/groovy/com/muwire/core/Core.groovy b/core/src/main/groovy/com/muwire/core/Core.groovy
index 7e65e3b7..9bc7acf6 100644
--- a/core/src/main/groovy/com/muwire/core/Core.groovy
+++ b/core/src/main/groovy/com/muwire/core/Core.groovy
@@ -390,11 +390,6 @@ public class Core {
             i2pAcceptor, hostCache, trustService, searchManager, uploadManager, fileManager, connectionEstablisher,
             certificateManager, chatServer)
 
-        log.info("initializing directory watcher")
-        directoryWatcher = new DirectoryWatcher(eventBus, fileManager, home, props)
-        eventBus.register(DirectoryWatchedEvent.class, directoryWatcher)
-        eventBus.register(WatchedDirectoryConvertedEvent.class, directoryWatcher)
-        eventBus.register(DirectoryUnsharedEvent.class, directoryWatcher)
 
         log.info("initializing hasher service")
         hasherService = new HasherService(new FileHasher(), eventBus, fileManager, props)
@@ -427,6 +422,13 @@ public class Core {
             register(WatchedDirectoryConvertedEvent.class, watchedDirectoryManager)
         }
         
+        log.info("initializing directory watcher")
+        directoryWatcher = new DirectoryWatcher(eventBus, fileManager, home, watchedDirectoryManager)
+        eventBus.with {
+            register(DirectoryWatchedEvent.class, directoryWatcher)
+            register(WatchedDirectoryConvertedEvent.class, directoryWatcher)
+            register(DirectoryUnsharedEvent.class, directoryWatcher)
+        }
     }
 
     public void startServices() {
diff --git a/core/src/main/groovy/com/muwire/core/files/DirectoryWatcher.groovy b/core/src/main/groovy/com/muwire/core/files/DirectoryWatcher.groovy
index 17e1b339..83d8e291 100644
--- a/core/src/main/groovy/com/muwire/core/files/DirectoryWatcher.groovy
+++ b/core/src/main/groovy/com/muwire/core/files/DirectoryWatcher.groovy
@@ -16,6 +16,7 @@ import com.muwire.core.EventBus
 import com.muwire.core.MuWireSettings
 import com.muwire.core.SharedFile
 import com.muwire.core.files.directories.WatchedDirectoryConvertedEvent
+import com.muwire.core.files.directories.WatchedDirectoryManager
 
 import groovy.util.logging.Log
 import net.i2p.util.SystemVersion
@@ -34,20 +35,20 @@ class DirectoryWatcher {
     }
 
     private final File home
-    private final MuWireSettings muOptions
     private final EventBus eventBus
     private final FileManager fileManager
+    private final WatchedDirectoryManager watchedDirectoryManager
     private final Thread watcherThread, publisherThread
     private final Map<File, Long> waitingFiles = new ConcurrentHashMap<>()
     private final Map<File, WatchKey> watchedDirectories = new ConcurrentHashMap<>()
     private WatchService watchService
     private volatile boolean shutdown
 
-    DirectoryWatcher(EventBus eventBus, FileManager fileManager, File home, MuWireSettings muOptions) {
+    DirectoryWatcher(EventBus eventBus, FileManager fileManager, File home, WatchedDirectoryManager watchedDirectoryManager) {
         this.home = home
-        this.muOptions = muOptions
         this.eventBus = eventBus
         this.fileManager = fileManager
+        this.watchedDirectoryManager = watchedDirectoryManager
         this.watcherThread = new Thread({watch() } as Runnable, "directory-watcher")
         watcherThread.setDaemon(true)
         this.publisherThread = new Thread({publish()} as Runnable, "watched-files-publisher")
@@ -72,26 +73,13 @@ class DirectoryWatcher {
         Path path = canonical.toPath()
         WatchKey wk = path.register(watchService, kinds)
         watchedDirectories.put(canonical, wk)
-        
-        if (muOptions.watchedDirectories.add(canonical.toString()))
-            saveMuSettings()
     }
 
     void onDirectoryUnsharedEvent(DirectoryUnsharedEvent e) {
         WatchKey wk = watchedDirectories.remove(e.directory)
         wk?.cancel()
-        
-        if (muOptions.watchedDirectories.remove(e.directory.toString()))
-            saveMuSettings()
     }
     
-    private void saveMuSettings() {
-        File muSettingsFile = new File(home, "MuWire.properties")
-        muSettingsFile.withPrintWriter("UTF-8", {
-            muOptions.write(it)
-        })
-    }
-
     private void watch() {
         try {
             while(!shutdown) {
@@ -134,7 +122,7 @@ class DirectoryWatcher {
         SharedFile sf = fileManager.fileToSharedFile.get(f)
         if (sf != null)
             eventBus.publish(new FileUnsharedEvent(unsharedFile : sf, deleted : true))
-        else if (muOptions.watchedDirectories.contains(f.toString())) 
+        else if (watchedDirectoryManager.isWatched(f)) 
             eventBus.publish(new DirectoryUnsharedEvent(directory : f, deleted : true))
         else
             log.fine("Entry was not relevant");
diff --git a/core/src/main/groovy/com/muwire/core/files/directories/WatchedDirectoryManager.groovy b/core/src/main/groovy/com/muwire/core/files/directories/WatchedDirectoryManager.groovy
index 7db3ca09..6fa1a096 100644
--- a/core/src/main/groovy/com/muwire/core/files/directories/WatchedDirectoryManager.groovy
+++ b/core/src/main/groovy/com/muwire/core/files/directories/WatchedDirectoryManager.groovy
@@ -1,18 +1,26 @@
 package com.muwire.core.files.directories
 
+import java.nio.file.Files
+import java.util.concurrent.ConcurrentHashMap
 import java.util.concurrent.ExecutorService
 import java.util.concurrent.Executors
 import java.util.concurrent.ThreadFactory
 
 import com.muwire.core.EventBus
+import com.muwire.core.files.DirectoryWatchedEvent
 import com.muwire.core.files.FileManager
 
+import groovy.json.JsonOutput
+import groovy.json.JsonSlurper
+
 class WatchedDirectoryManager {
     
     private final File home
     private final EventBus eventBus
     private final FileManager fileManager
     
+    private final Map<File, WatchedDirectory> watchedDirs = new ConcurrentHashMap<>()
+    
     private final ExecutorService diskIO = Executors.newSingleThreadExecutor({r -> 
         Thread t = new Thread(r, "disk-io")
         t.setDaemon(true)
@@ -25,25 +33,54 @@ class WatchedDirectoryManager {
     
     WatchedDirectoryManager(File home, EventBus eventBus, FileManager fileManager) {
         this.home = new File(home, "directories")
+        this.home.mkdir()
         this.eventBus = eventBus
         this.fileManager = fileManager
     }
     
+    public boolean isWatched(File f) {
+        watchedDirs.containsKey(f)
+    }
+    
     public void shutdown() {
         diskIO.shutdown()
         timer.cancel()
     }
     
     void onWatchedDirectoryConfigurationEvent(WatchedDirectoryConfigurationEvent e) {
-        if (!converting) {
-            // update state
+        if (converting) {
+            def newDir = new WatchedDirectory(e.directory)
+            // conversion is always autowatch really
+            newDir.autoWatch = e.autoWatch
+            persist(newDir)
+        } else {
+            // TODO: update state and stuff
         }
-        
-        // always persist
     }
     
     void onWatchedDirectoryConvertedEvent(WatchedDirectoryConvertedEvent e) {
         converting = false
-        // load
+        diskIO.submit({
+            def slurper = new JsonSlurper()
+            Files.walk(home.toPath()).filter({
+                it.getFileName().toString().endsWith(".json")
+            }).
+            forEach {
+                def parsed = slurper.parse(it.toFile())
+                WatchedDirectory wd = WatchedDirectory.fromJson(parsed)
+                watchedDirs.put(wd.directory, wd)
+                
+                if (wd.autoWatch)
+                    eventBus.publish(new DirectoryWatchedEvent(directory : wd.directory))
+            }
+        } as Runnable)
+    }
+    
+    private void persist(WatchedDirectory dir) {
+        diskIO.submit({
+            def json = JsonOutput.toJson(dir.toJson())
+            def targetFile = new File(home, dir.getEncodedName() + ".json")
+            targetFile.text = json
+        } as Runnable)
     }
 }