diff --git a/homeassistant/__main__.py b/homeassistant/__main__.py
index 2514b35587f..40cde95751f 100644
--- a/homeassistant/__main__.py
+++ b/homeassistant/__main__.py
@@ -4,12 +4,14 @@ from __future__ import print_function
 import sys
 import os
 import argparse
-import subprocess
 import importlib
 
-DEPENDENCIES = ['requests>=2.0', 'pyyaml>=3.11', 'pytz>=2015.2']
-IS_VIRTUAL = (getattr(sys, 'base_prefix', sys.prefix) != sys.prefix or
-              hasattr(sys, 'real_prefix'))
+from homeassistant import bootstrap
+import homeassistant.config as config_util
+from homeassistant.components import frontend, demo
+
+USER_DATA_DIR = os.getenv('APPDATA') if os.name == "nt" \
+    else os.path.expanduser('~')
 
 
 def validate_python():
@@ -31,54 +33,6 @@ def ensure_pip():
         sys.exit()
 
 
-# Copy of homeassistant.util.package because we can't import yet
-def install_package(package):
-    """Install a package on PyPi. Accepts pip compatible package strings.
-    Return boolean if install successfull."""
-    args = [sys.executable, '-m', 'pip', 'install', '--quiet', package]
-    if not IS_VIRTUAL:
-        args.append('--user')
-    try:
-        return 0 == subprocess.call(args)
-    except subprocess.SubprocessError:
-        return False
-
-
-def validate_dependencies():
-    """ Validate all dependencies that HA uses. """
-    ensure_pip()
-
-    print("Validating dependencies...")
-    import_fail = False
-
-    for requirement in DEPENDENCIES:
-        if not install_package(requirement):
-            import_fail = True
-            print('Fatal Error: Unable to install dependency', requirement)
-
-    if import_fail:
-        print(("Install dependencies by running: "
-               "python3 -m pip install -r requirements.txt"))
-        sys.exit()
-
-
-def ensure_path_and_load_bootstrap():
-    """ Ensure sys load path is correct and load Home Assistant bootstrap. """
-    try:
-        from homeassistant import bootstrap
-
-    except ImportError:
-        # This is to add support to load Home Assistant using
-        # `python3 homeassistant` instead of `python3 -m homeassistant`
-
-        # Insert the parent directory of this file into the module search path
-        sys.path.insert(0, os.path.join(os.path.dirname(__file__), '..'))
-
-        from homeassistant import bootstrap
-
-    return bootstrap
-
-
 def validate_git_submodules():
     """ Validate the git submodules are cloned. """
     try:
@@ -94,13 +48,25 @@ def ensure_config_path(config_dir):
     """ Gets the path to the configuration file.
         Creates one if it not exists. """
 
+    lib_dir = os.path.join(config_dir, 'lib')
+
     # Test if configuration directory exists
     if not os.path.isdir(config_dir):
-        print(('Fatal Error: Unable to find specified configuration '
-               'directory {} ').format(config_dir))
-        sys.exit()
+        try:
+            os.mkdir(config_dir)
+        except OSError:
+            print(('Fatal Error: Unable to create specified configuration '
+                   'directory {} ').format(config_dir))
+            sys.exit()
 
-    import homeassistant.config as config_util
+    # Test if library directory exists
+    if not os.path.isdir(lib_dir):
+        try:
+            os.mkdir(lib_dir)
+        except OSError:
+            print(('Fatal Error: Unable to create library '
+                   'directory {} ').format(lib_dir))
+            sys.exit()
 
     config_path = config_util.ensure_config_exists(config_dir)
 
@@ -117,7 +83,7 @@ def get_arguments():
     parser.add_argument(
         '-c', '--config',
         metavar='path_to_config_dir',
-        default="config",
+        default=os.path.join(USER_DATA_DIR, '.homeassistant'),
         help="Directory that contains the Home Assistant configuration")
     parser.add_argument(
         '--demo-mode',
@@ -134,12 +100,6 @@ def get_arguments():
 def main():
     """ Starts Home Assistant. """
     validate_python()
-    validate_dependencies()
-
-    # Windows needs this to pick up new modules
-    importlib.invalidate_caches()
-
-    bootstrap = ensure_path_and_load_bootstrap()
 
     validate_git_submodules()
 
@@ -149,8 +109,6 @@ def main():
     config_path = ensure_config_path(config_dir)
 
     if args.demo_mode:
-        from homeassistant.components import frontend, demo
-
         hass = bootstrap.from_config_dict({
             frontend.DOMAIN: {},
             demo.DOMAIN: {}
@@ -159,11 +117,10 @@ def main():
         hass = bootstrap.from_config_file(config_path)
 
     if args.open_ui:
-        from homeassistant.const import EVENT_HOMEASSISTANT_START
-
         def open_browser(event):
             """ Open the webinterface in a browser. """
             if hass.config.api is not None:
+                from homeassistant.const import EVENT_HOMEASSISTANT_START
                 import webbrowser
                 webbrowser.open(hass.config.api.base_url)
 
diff --git a/setup.py b/setup.py
index fb6f88ac115..f922459e509 100755
--- a/setup.py
+++ b/setup.py
@@ -30,8 +30,7 @@ setup(
     package_data=PACKAGE_DATA,
     zip_safe=False,
     platforms='any',
-    install_requires=['requests==2.7.0', 'pyyaml==3.11', 'pytz==2015.4',
-                      'netdisco==0.3', 'astral==0.8.1'],
+    install_requires=['requests==2.7.0', 'pyyaml==3.11', 'pytz==2015.4'],
     keywords=['home', 'automation'],
     entry_points={
         'console_scripts': [