diff --git a/install.ps1 b/install.ps1
index 4c9ac12..f9caaf6 100644
--- a/install.ps1
+++ b/install.ps1
@@ -11,7 +11,7 @@ param(
     [string]$BinaryBase = $env:DOSH_BINARY_BASE,
     [string]$BinaryName = $env:DOSH_BINARY_NAME,
     [string]$BinaryVersion = $(if ($env:DOSH_BINARY_VERSION) { $env:DOSH_BINARY_VERSION } else { "latest" }),
-    [string]$UpdateCache = $(if ($env:DOSH_UPDATE_CACHE) { $env:DOSH_UPDATE_CACHE } else { Join-Path $HOME ".cache\dosh\source" }),
+    [string]$UpdateCache = $(if ($env:DOSH_UPDATE_CACHE) { $env:DOSH_UPDATE_CACHE } elseif ($env:LOCALAPPDATA) { Join-Path $env:LOCALAPPDATA "dosh\source" } else { Join-Path $HOME ".cache\dosh\source" }),
     [switch]$BinaryRequired = $($env:DOSH_BINARY_REQUIRED -and $env:DOSH_BINARY_REQUIRED -ne "0"),
     [switch]$ForceConfig
 )
diff --git a/tests/release_scripts.rs b/tests/release_scripts.rs
index 339d696..0b22e7c 100644
--- a/tests/release_scripts.rs
+++ b/tests/release_scripts.rs
@@ -163,6 +163,9 @@ fn installers_refuse_prebuilts_without_checksums() {
 fn windows_installer_reuses_persistent_source_update_cache() {
     let ps1 = include_str!("../install.ps1");
     assert!(ps1.contains("DOSH_UPDATE_CACHE"));
+    assert!(ps1.contains("elseif ($env:LOCALAPPDATA)"));
+    assert!(ps1.contains("Join-Path $env:LOCALAPPDATA \"dosh\\source\""));
+    assert!(ps1.contains("Join-Path $HOME \".cache\\dosh\\source\""));
     assert!(ps1.contains("Assert-NoRelativePathSegments($Path)"));
     assert!(ps1.contains("Assert-NoRelativePathSegments $Path"));
     assert!(ps1.contains("$segment -eq \".\" -or $segment -eq \"..\""));