diff --git a/WHATS_NEW b/WHATS_NEW
index e32d6e647..ae6308556 100644
--- a/WHATS_NEW
+++ b/WHATS_NEW
@@ -1,5 +1,6 @@
 Version 2.01.03 - 
 ===================================
+  More informative startup mesg if can't create /etc/lvm.
   Fix snapshot device size bug (since 2.01.01).
   clvmd announces startup and cluster connection in syslog.
   Gulm clvmd doesn't hang trying to talk to a rebooted node.
diff --git a/lib/commands/toolcontext.c b/lib/commands/toolcontext.c
index a28f00c05..99deaa9db 100644
--- a/lib/commands/toolcontext.c
+++ b/lib/commands/toolcontext.c
@@ -181,6 +181,12 @@ static int _process_config(struct cmd_context *cmd)
 		return 0;
 	}
 
+	if (*cmd->proc_dir && !dir_exists(cmd->proc_dir)) {
+		log_error("Warning: proc dir %s not found - some checks will be bypassed",
+			  cmd->proc_dir);
+		cmd->proc_dir[0] = '\0';
+	}
+
 	/* activation? */
 	cmd->default_settings.activation = find_config_int(cmd->cft->root,
 							   "global/activation",
@@ -825,8 +831,13 @@ struct cmd_context *create_toolcontext(struct arg *the_args)
 		goto error;
 
 	/* Create system directory if it doesn't already exist */
-	if (*cmd->sys_dir && !create_dir(cmd->sys_dir))
+	if (*cmd->sys_dir && !create_dir(cmd->sys_dir)) {
+		log_error("Failed to create LVM2 system dir for metadata backups, config "
+			  "files and internal cache.");
+		log_error("Set environment variable LVM_SYSTEM_DIR to alternative location "
+			  "or empty string.");
 		goto error;
+	}
 
 	if (!(cmd->libmem = pool_create("library", 4 * 1024))) {
 		log_error("Library memory pool creation failed");