diff --git a/frappe/__init__.py b/frappe/__init__.py
index 141da8f48b..a3fd020499 100644
--- a/frappe/__init__.py
+++ b/frappe/__init__.py
@@ -85,7 +85,7 @@ message_log = local("message_log")
 
 lang = local("lang")
 
-def init(site, sites_path=None):
+def init(site, sites_path=None, new_site=False):
 	"""Initialize frappe for the current site. Reset thread locals `frappe.local`"""
 	if getattr(local, "initialised", None):
 		return
@@ -108,6 +108,7 @@ def init(site, sites_path=None):
 		"ignore_links": False,
 		"mute_emails": False,
 		"has_dataurl": False,
+		"new_site": new_site
 	})
 	local.rollback_observers = []
 	local.test_objects = {}
@@ -173,7 +174,7 @@ def get_site_config(sites_path=None, site_path=None):
 		site_config = os.path.join(site_path, "site_config.json")
 		if os.path.exists(site_config):
 			config.update(get_file_json(site_config))
-		elif local.site:
+		elif local.site and not local.flags.new_site:
 			raise IncorrectSitePath, "{0} does not exist".format(site_config)
 
 	return _dict(config)
diff --git a/frappe/commands.py b/frappe/commands.py
index 1e0551dfe3..ca50d6f713 100644
--- a/frappe/commands.py
+++ b/frappe/commands.py
@@ -65,7 +65,7 @@ def new_site(site, mariadb_root_username=None, mariadb_root_password=None, admin
 	if not db_name:
 		db_name = hashlib.sha1(site).hexdigest()[:10]
 
-	frappe.init(site=site)
+	frappe.init(site=site, new_site=True)
 	_new_site(db_name, site, mariadb_root_username=mariadb_root_username, mariadb_root_password=mariadb_root_password, admin_password=admin_password, verbose=verbose, install_apps=install_app, source_sql=source_sql, force=force)
 	if len(frappe.utils.get_sites()) == 1:
 		use(site)