diff --git a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnAuthenticationNotifier.java b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnAuthenticationNotifier.java
index 1e823136398f..dcdf944f8910 100644
--- a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnAuthenticationNotifier.java
+++ b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnAuthenticationNotifier.java
@@ -347,7 +347,7 @@ public class SvnAuthenticationNotifier extends GenericNotifierImpl<SvnAuthentica
                                                                 new Consumer<String>() {
                                                                   @Override
                                                                   public void consume(String s) {
-                                                                    configuration.setConfigurationDirectory(s);
+                                                                    configuration.setConfigurationDirParameters(false, s);
                                                                   }
                                                                 }, project, null);
                                                             }
diff --git a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfigurable.java b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfigurable.java
index 192e4244f461..ecbb0a217f25 100644
--- a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfigurable.java
+++ b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfigurable.java
@@ -277,13 +277,8 @@ public class SvnConfigurable implements Configurable {
 
   public void apply() throws ConfigurationException {
     SvnConfiguration configuration = SvnConfiguration.getInstance(myProject);
-    final String newConfigurationDirectory = myConfigurationDirectoryText.getText();
-    if (! Comparing.equal(configuration.getConfigurationDirectory(), newConfigurationDirectory)) {
-      configuration.setConfigurationDirectory(newConfigurationDirectory);
-    }
-    if (configuration.isUseDefaultConfiguation() != myUseDefaultCheckBox.isSelected()) {
-      configuration.setUseDefaultConfiguation(myUseDefaultCheckBox.isSelected());
-    }
+    configuration.setConfigurationDirParameters(myUseDefaultCheckBox.isSelected(), myConfigurationDirectoryText.getText());
+
     configuration.setIsUseDefaultProxy(myUseCommonProxy.isSelected());
     final SvnVcs vcs17 = SvnVcs.getInstance(myProject);
     if ((! configuration.DETECT_NESTED_COPIES) && (configuration.DETECT_NESTED_COPIES != myDetectNestedWorkingCopiesCheckBox.isSelected())) {
diff --git a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfiguration.java b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfiguration.java
index 390f32e1ff63..abb650ffec50 100644
--- a/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfiguration.java
+++ b/plugins/svn4idea/src/org/jetbrains/idea/svn/SvnConfiguration.java
@@ -22,10 +22,7 @@ import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.progress.ProgressIndicator;
 import com.intellij.openapi.progress.ProgressManager;
 import com.intellij.openapi.project.Project;
-import com.intellij.openapi.util.DefaultJDOMExternalizer;
-import com.intellij.openapi.util.InvalidDataException;
-import com.intellij.openapi.util.Ref;
-import com.intellij.openapi.util.WriteExternalException;
+import com.intellij.openapi.util.*;
 import com.intellij.openapi.util.io.FileUtil;
 import com.intellij.openapi.vcs.changes.VcsAnnotationRefresher;
 import org.jdom.Attribute;
@@ -206,12 +203,31 @@ public class SvnConfiguration implements PersistentStateComponent<Element> {
     return myIsUseDefaultConfiguration;
   }
 
-  public void setConfigurationDirectory(String path) {
+  public void setConfigurationDirParameters(final boolean newUseDefault, final String newConfigurationDirectory) {
+    final String defaultPath = IdeaSubversionConfigurationDirectory.getPath();
+    final String oldEffectivePath = isUseDefaultConfiguation() ? defaultPath : getConfigurationDirectory();
+    final String newEffectivePath = newUseDefault ? defaultPath : newConfigurationDirectory;
+
+    boolean directoryChanged = !Comparing.equal(getConfigurationDirectory(), newConfigurationDirectory);
+    if (directoryChanged) {
+      setConfigurationDirectory(newConfigurationDirectory);
+    }
+    boolean usageChanged = isUseDefaultConfiguation() != newUseDefault;
+    if (usageChanged) {
+      setUseDefaultConfiguation(newUseDefault);
+    }
+
+    if (directoryChanged || usageChanged) {
+      if (! Comparing.equal(oldEffectivePath, newEffectivePath)) {
+        clear();
+      }
+    }
+  }
+
+  private void setConfigurationDirectory(String path) {
     myConfigurationDirectory = path;
     File dir = path == null ? new File(IdeaSubversionConfigurationDirectory.getPath()) : new File(path);
     SVNConfigFile.createDefaultConfiguration(dir);
-
-    clear();
   }
 
   public void clear() {
@@ -223,9 +239,8 @@ public class SvnConfiguration implements PersistentStateComponent<Element> {
     RUNTIME_AUTH_CACHE.clear();
   }
 
-  public void setUseDefaultConfiguation(boolean useDefault) {
+  private void setUseDefaultConfiguation(boolean useDefault) {
     myIsUseDefaultConfiguration = useDefault;
-    clear();
   }
 
   public ISVNOptions getOptions(Project project) {
diff --git a/plugins/svn4idea/testSource/org/jetbrains/idea/svn/SvnAuthenticationTest.java b/plugins/svn4idea/testSource/org/jetbrains/idea/svn/SvnAuthenticationTest.java
index e9acaf599b51..1305a47a290b 100644
--- a/plugins/svn4idea/testSource/org/jetbrains/idea/svn/SvnAuthenticationTest.java
+++ b/plugins/svn4idea/testSource/org/jetbrains/idea/svn/SvnAuthenticationTest.java
@@ -70,7 +70,7 @@ public class SvnAuthenticationTest extends PlatformTestCase {
 
     myConfiguration = SvnConfiguration.getInstance(myProject);
     final String configPath = myProject.getBaseDir().getPath() + File.separator + "Subversion";
-    myConfiguration.setConfigurationDirectory(configPath);
+    myConfiguration.setConfigurationDirParameters(false, configPath);
 
     final File configFile = new File(configPath);
     myFilesToDelete.add(configFile);