diff --git a/addon/ng2/blueprints/ng2/files/__path__/app/index.ts b/addon/ng2/blueprints/ng2/files/__path__/app/index.ts
index 87743c9d56ee..875bdb2f254f 100644
--- a/addon/ng2/blueprints/ng2/files/__path__/app/index.ts
+++ b/addon/ng2/blueprints/ng2/files/__path__/app/index.ts
@@ -1,3 +1,2 @@
-export * from './environments/environment';
 export * from './app.component';
 export * from './app.module';
diff --git a/addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.dev.ts b/addon/ng2/blueprints/ng2/files/__path__/environments/environment.dev.ts
similarity index 100%
rename from addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.dev.ts
rename to addon/ng2/blueprints/ng2/files/__path__/environments/environment.dev.ts
diff --git a/addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.prod.ts b/addon/ng2/blueprints/ng2/files/__path__/environments/environment.prod.ts
similarity index 100%
rename from addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.prod.ts
rename to addon/ng2/blueprints/ng2/files/__path__/environments/environment.prod.ts
diff --git a/addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.ts b/addon/ng2/blueprints/ng2/files/__path__/environments/environment.ts
similarity index 100%
rename from addon/ng2/blueprints/ng2/files/__path__/app/environments/environment.ts
rename to addon/ng2/blueprints/ng2/files/__path__/environments/environment.ts
diff --git a/addon/ng2/blueprints/ng2/files/__path__/main.ts b/addon/ng2/blueprints/ng2/files/__path__/main.ts
index 4bdf15c04a38..adabd542bd68 100644
--- a/addon/ng2/blueprints/ng2/files/__path__/main.ts
+++ b/addon/ng2/blueprints/ng2/files/__path__/main.ts
@@ -1,6 +1,7 @@
 import { platformBrowserDynamic } from '@angular/platform-browser-dynamic';
 import { enableProdMode } from '@angular/core';
-import { AppModule, environment } from './app/';
+import { AppModule } from './app/';
+import { environment } from './environments/environment';
 
 if (environment.production) {
   enableProdMode();
diff --git a/addon/ng2/models/webpack-config.ts b/addon/ng2/models/webpack-config.ts
index a215217c0afa..8d3180cad798 100644
--- a/addon/ng2/models/webpack-config.ts
+++ b/addon/ng2/models/webpack-config.ts
@@ -26,7 +26,7 @@ export class NgCliWebpackConfig {
   constructor(public ngCliProject: any, public target: string, public environment: string) {
     const sourceDir = CliConfig.fromProject().defaults.sourceDir;
 
-    const environmentPath = `./${sourceDir}/app/environments/environment.${environment}.ts`;
+    const environmentPath = `./${sourceDir}/environments/environment.${environment}.ts`;
 
     this.webpackBaseConfig = getWebpackCommonConfig(this.ngCliProject.root, sourceDir);
     this.webpackDevConfigPartial = getWebpackDevConfigPartial(this.ngCliProject.root, sourceDir);
@@ -41,7 +41,7 @@ export class NgCliWebpackConfig {
 
     this.generateConfig();
     this.config.plugins.unshift(new NgCliEnvironmentPlugin({
-      path: path.resolve(this.ngCliProject.root, `./${sourceDir}/app/environments/`),
+      path: path.resolve(this.ngCliProject.root, `./${sourceDir}/environments`),
       src: 'environment.ts',
       dest: `environment.${this.environment}.ts`
     }));
diff --git a/package.json b/package.json
index 0e8cc9d9ce9f..5c9c5a2414b9 100644
--- a/package.json
+++ b/package.json
@@ -90,7 +90,7 @@
     "typedoc": "^0.4.2",
     "typescript": "^2.0.0",
     "url-loader": "^0.5.7",
-    "webpack": "2.1.0-beta.18",
+    "webpack": "2.1.0-beta.20",
     "webpack-dev-server": "2.1.0-beta.0",
     "webpack-md5-hash": "0.0.5",
     "webpack-merge": "^0.14.0"