diff --git a/lib/galaxy/webapps/reports/config.py b/lib/galaxy/webapps/reports/config.py
index 2edbb2811c3..f49a314fb16 100644
--- a/lib/galaxy/webapps/reports/config.py
+++ b/lib/galaxy/webapps/reports/config.py
@@ -27,7 +27,7 @@ class Configuration( object ):
         self.new_file_path = resolve_path( kwargs.get( "new_file_path", "database/tmp" ), self.root )
         self.id_secret = kwargs.get( "id_secret", "USING THE DEFAULT IS NOT SECURE!" )
         self.template_path = resolve_path( kwargs.get( "template_path", "templates" ), self.root )
-        self.template_cache = resolve_path( kwargs.get( "template_cache_path", "database/compiled_templates" ), self.root )
+        self.template_cache = resolve_path( kwargs.get( "template_cache_path", "database/reports/compiled_templates" ), self.root )
         self.admin_pass = kwargs.get('admin_pass',"galaxy")
         self.sendmail_path = kwargs.get('sendmail_path',"/usr/sbin/sendmail")
         self.mailing_join_addr = kwargs.get('mailing_join_addr',"galaxy-user-join@bx.psu.edu")