diff --git a/phing/build.yml b/phing/build.yml
index 2b45c6e26..ca1a71cd6 100644
--- a/phing/build.yml
+++ b/phing/build.yml
@@ -38,7 +38,14 @@ composer:
 
 cm:
   core:
-    config-dir: sync
+    config-dir:
+      # Corresponding values are defined in default.local.settings.php.
+      key: sync
+      path: ${repo.root}/config/default
+      # A different config key is used by the deploy:update step, which is executed on Acquia Cloud.
+      deploy-key: vcs
+    partial: true
+
 
 deploy:
   # If true, dependencies will be built during deploy. If false, you should commit dependencies directly.
diff --git a/phing/tasks/deploy.xml b/phing/tasks/deploy.xml
index e373f634e..91fd1bb2b 100644
--- a/phing/tasks/deploy.xml
+++ b/phing/tasks/deploy.xml
@@ -239,7 +239,7 @@
       <property name="drush.alias" value="self"/>
       <!-- Most sites store their version-controlled configuration in /config/default. -->
       <!-- ACE internally sets the vcs configuration directory to /config/default, so we use that. -->
-      <property name="cm.core.config-dir" value="vcs"/>
+      <property name="cm.config-dir.key" value="${cm.config-dir.deploy-key}"/>
     </phingcall>
   </target>
 
diff --git a/phing/tasks/setup.xml b/phing/tasks/setup.xml
index ce73413db..7dfe64f66 100644
--- a/phing/tasks/setup.xml
+++ b/phing/tasks/setup.xml
@@ -173,17 +173,34 @@
     </if>
 
     <echo>Installing Drupal...</echo>
-    <drush command="site-install">
-      <option name="site-name">"${project.human_name}"</option>
-      <option name="site-mail">"${drupal.account.mail}"</option>
-      <option name="account-name">"${drupal.account.name}"</option>
-      <option name="account-pass">"${drupal.account.password}"</option>
-      <option name="account-mail">"${drupal.account.mail}"</option>
-      <option name="locale">"${drupal.locale}"</option>
-      <param>"${project.profile.name}"</param>
-      <param>"install_configure_form.update_status_module='array(FALSE,FALSE)'"</param>
-    </drush>
-
+    <if>
+      <equals arg1="${cm.core.partial}" arg2="true"/>
+      <then>
+        <drush command="site-install">
+          <option name="site-name">"${project.human_name}"</option>
+          <option name="site-mail">"${drupal.account.mail}"</option>
+          <option name="account-name">"${drupal.account.name}"</option>
+          <option name="account-pass">"${drupal.account.password}"</option>
+          <option name="account-mail">"${drupal.account.mail}"</option>
+          <option name="locale">"${drupal.locale}"</option>
+          <param>"${project.profile.name}"</param>
+          <param>"install_configure_form.update_status_module='array(FALSE,FALSE)'"</param>
+        </drush>
+      </then>
+      <else>
+        <drush command="site-install">
+          <option name="site-name">"${project.human_name}"</option>
+          <option name="site-mail">"${drupal.account.mail}"</option>
+          <option name="account-name">"${drupal.account.name}"</option>
+          <option name="account-pass">"${drupal.account.password}"</option>
+          <option name="account-mail">"${drupal.account.mail}"</option>
+          <option name="locale">"${drupal.locale}"</option>
+          <option name="config-dir">${cm.core.config-dir.path}</option>
+          <param>"${project.profile.name}"</param>
+          <param>"install_configure_form.update_status_module='array(FALSE,FALSE)'"</param>
+        </drush>
+      </else>
+    </if>
     <phingcall target="setup:update"/>
 
     <!-- Set sites directory file permissions. -->
@@ -224,11 +241,23 @@
     <drush command="updb" assume="yes" alias="${drush.alias}" passthru="false">
       <option name="entity-updates"></option>
     </drush>
+
     <!-- Import configuration. -->
-    <drush command="config-import" assume="yes" alias="${drush.alias}" passthru="false">
-      <option name="partial"></option>
-      <param>${cm.core.config-dir}</param>
-    </drush>
+    <if>
+      <equals arg1="${cm.core.partial}" arg2="true"/>
+      <then>
+        <drush command="config-import" assume="yes" alias="${drush.alias}" passthru="false">
+          <option name="partial"></option>
+          <param>${cm.core.config-dir.key}</param>
+        </drush>
+      </then>
+      <else>
+        <drush command="config-import" assume="yes" alias="${drush.alias}" passthru="false">
+          <param>${cm.core.config-dir.key}</param>
+        </drush>
+      </else>
+    </if>
+
     <if>
       <isset property="cm.features.bundle"/>
       <then>