diff --git a/Annex.hs b/Annex.hs
index fcd19ba033..9be86c9481 100644
--- a/Annex.hs
+++ b/Annex.hs
@@ -14,9 +14,18 @@ import qualified GitRepo as Git
 import Types
 import qualified BackendTypes as Backend
 
--- constructor
-new :: Git.Repo -> AnnexState
-new g = Backend.AnnexState { Backend.repo = g, Backend.backends = [] }
+{- Create and returns an Annex state object for the specified git repo.
+ -}
+new :: Git.Repo -> IO AnnexState
+new g = do
+	let s = Backend.AnnexState { Backend.repo = g, Backend.backends = [] }
+	(_,s') <- Annex.run s (prep g)
+	return s'
+	where
+		prep g = do
+			-- read git config and update state
+			g' <- liftIO $ Git.configRead g
+			Annex.gitRepoChange g'
 
 -- performs an action in the Annex monad
 run state action = runStateT (action) state
diff --git a/Backend.hs b/Backend.hs
index 01c7c6823f..7a8178a8eb 100644
--- a/Backend.hs
+++ b/Backend.hs
@@ -52,7 +52,7 @@ storeFileKey :: FilePath -> Annex (Maybe (Key, Backend))
 storeFileKey file = do
 	g <- Annex.gitRepo
 	let relfile = Git.relative g file
-	b <- Annex.backends
+	b <- backendList
 	storeFileKey' b file relfile
 storeFileKey' [] _ _ = return Nothing
 storeFileKey' (b:bs) file relfile = do
diff --git a/Backend/File.hs b/Backend/File.hs
index 92f5932ce5..893850a695 100644
--- a/Backend/File.hs
+++ b/Backend/File.hs
@@ -14,6 +14,7 @@ import Locations
 import qualified Remotes
 import qualified GitRepo as Git
 import Utility
+import Core
 
 backend = Backend {
 	name = "file",
diff --git a/Core.hs b/Core.hs
index 431c9c9e63..644bedd00f 100644
--- a/Core.hs
+++ b/Core.hs
@@ -6,52 +6,39 @@ import System.IO
 import System.Directory
 import Control.Monad.State (liftIO)
 import Types
-import BackendList
 import Locations
 import UUID
 import qualified GitRepo as Git
 import qualified Annex
-
-{- Create and returns an Annex state object. 
- - Examines and prepares the git repo.
- -}
-start :: IO AnnexState
-start = do
-	g <- Git.repoFromCwd
-	let s = Annex.new g
-	(_,s') <- Annex.run s (prep g)
-	return s'
-	where
-		prep g = do
-			-- setup git and read its config; update state
-			g' <- liftIO $ Git.configRead g
-			Annex.gitRepoChange g'
-			liftIO $ gitSetup g'
-			prepUUID
-
+			
 {- Sets up a git repo for git-annex. May be called repeatedly. -}
-gitSetup :: Git.Repo -> IO ()
-gitSetup repo = do
-	-- configure git to use union merge driver on state files
-	exists <- doesFileExist attributes
-	if (not exists)
-		then do
-			writeFile attributes $ attrLine ++ "\n"
-			commit
-		else do
-			content <- readFile attributes
-			if (all (/= attrLine) (lines content))
-				then do
-					appendFile attributes $ attrLine ++ "\n"
-					commit
-				else return ()
+gitSetup :: Annex ()
+gitSetup = do
+	g <- Annex.gitRepo
+	liftIO $ setupattributes g
+	prepUUID
 	where
-		attrLine = stateLoc ++ "/*.log merge=union"
-		attributes = Git.attributes repo
-		commit = do
-			Git.run repo ["add", attributes]
-			Git.run repo ["commit", "-m", "git-annex setup", 
-					attributes]
+		-- configure git to use union merge driver on state files
+		setupattributes repo = do
+			exists <- doesFileExist attributes
+			if (not exists)
+				then do
+					writeFile attributes $ attrLine ++ "\n"
+					commit
+				else do
+					content <- readFile attributes
+					if (all (/= attrLine) (lines content))
+						then do
+							appendFile attributes $ attrLine ++ "\n"
+							commit
+						else return ()
+			where
+				attrLine = stateLoc ++ "/*.log merge=union"
+				attributes = Git.attributes repo
+				commit = do
+					Git.run repo ["add", attributes]
+					Git.run repo ["commit", "-m", "git-annex setup", 
+							attributes]
 
 {- Checks if a given key is currently present in the annexLocation -}
 inAnnex :: Backend -> Key -> Annex Bool
diff --git a/git-annex.hs b/git-annex.hs
index 78e8750147..f9d9311eb2 100644
--- a/git-annex.hs
+++ b/git-annex.hs
@@ -7,12 +7,15 @@ import qualified Annex
 import Types
 import Core
 import Commands
+import Annex
+import qualified GitRepo as Git
 
 main = do
 	args <- getArgs
 	actions <- argvToActions args
-	state <- start
-	tryRun state actions
+	gitrepo <- Git.repoFromCwd
+	state <- new gitrepo
+	tryRun state (gitSetup:actions)
 
 {- Runs a list of Annex actions. Catches exceptions, not stopping
  - if some error out, and propigates an overall error status at the end.