diff --git a/src/compiler/commandLineParser.ts b/src/compiler/commandLineParser.ts
index 8d13b49ace5..72fdb2167c5 100644
--- a/src/compiler/commandLineParser.ts
+++ b/src/compiler/commandLineParser.ts
@@ -311,6 +311,16 @@ namespace ts {
                 isFilePath: true
             }
         },
+        {
+            name: "librarySearchPaths",
+            type: "list",
+            isTSConfigOnly: true,
+            element: {
+                name: "librarySearchPaths",
+                type: "string",
+                isFilePath: true
+            }
+        },
         {
             name: "traceModuleResolution",
             type: "boolean",
@@ -638,6 +648,7 @@ namespace ts {
         const compilerOptions: CompilerOptions = convertCompilerOptionsFromJsonWorker(json["compilerOptions"], basePath, errors, configFileName);
         const options = extend(existingOptions, compilerOptions);
         const typingOptions: TypingOptions = convertTypingOptionsFromJsonWorker(json["typingOptions"], basePath, errors, configFileName);
+        options.configFilePath = configFileName;
 
         const fileNames = getFileNames(errors);
 
diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index 45103bde278..e7c05aa0629 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -2159,7 +2159,7 @@
         "category": "Error",
         "code": 4082
     },
-    "Conflicting library definitions for '{0}' found at '{1}' and '{2}'. Copy the correct file to a local typings folder to resolve this conflict.": {
+    "Conflicting library definitions for '{0}' found at '{1}' and '{2}'. Copy the correct file to the 'typings' folder to resolve this conflict.": {
         "category": "Message",
         "code": 4090
     },
diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 9b2fc92bc7e..8eb6abf7cd5 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -15,7 +15,7 @@ namespace ts {
     const defaultLibrarySearchPaths = <Path[]>[
         "typings/",
         "node_modules/",
-        "node_modules/@types/",
+        "node_modules/@typings/",
     ];
 
     export const version = "1.9.0";
@@ -1597,7 +1597,7 @@ namespace ts {
                             const otherFileText = host.readFile(secondaryResult);
                             if (otherFileText !== getSourceFile(previousResolution.resolvedFileName).text) {
                                 fileProcessingDiagnostics.add(createFileDiagnostic(file, ref.pos, ref.end - ref.pos,
-                                    Diagnostics.Conflicting_library_definitions_for_0_found_at_1_and_2_Copy_the_correct_file_to_a_local_typings_folder_to_resolve_this_conflict,
+                                    Diagnostics.Conflicting_library_definitions_for_0_found_at_1_and_2_Copy_the_correct_file_to_the_typings_folder_to_resolve_this_conflict,
                                     ref.fileName,
                                     secondaryResult,
                                     previousResolution.resolvedFileName));
diff --git a/src/compiler/tsc.ts b/src/compiler/tsc.ts
index e70e28bdf1c..b88dea9d96b 100644
--- a/src/compiler/tsc.ts
+++ b/src/compiler/tsc.ts
@@ -390,7 +390,6 @@ namespace ts {
                 reportDiagnostic(createCompilerDiagnostic(Diagnostics.The_current_host_does_not_support_the_0_option, "--watch"), /* compilerHost */ undefined);
                 sys.exit(ExitStatus.DiagnosticsPresent_OutputsSkipped);
             }
-            configParseResult.options.configFilePath = configFileName as Path;
             return configParseResult;
         }