diff --git a/cli/src/settings/settings.rs b/cli/src/settings/settings.rs
index 95d0e4d2e..83f8938ae 100644
--- a/cli/src/settings/settings.rs
+++ b/cli/src/settings/settings.rs
@@ -184,10 +184,24 @@ impl Settings {
                 .ok_or_else(|| anyhow!("Could not determine config file name"))?
         };
 
-        let mut document = fs::read_to_string(filename.clone())
-            .context("Could not read existing configuration file")?
-            .parse::<Document>()
-            .context("Could not parse existing configuration file")?;
+        let exists = filename.exists();
+
+        // try to create the parent directory if the file does not exist
+        if !exists {
+            if let Some(dir) = filename.parent() {
+                fs::create_dir_all(dir)?;
+            }
+        }
+
+        // start with the existing document, or a blank document
+        let mut document = if exists {
+            fs::read_to_string(filename.clone())
+                .context("Could not read existing configuration file")?
+                .parse::<Document>()
+                .context("Could not parse existing configuration file")?
+        } else {
+            Document::new()
+        };
 
         // set the value as the correct type
         match key {