diff --git a/src/vs/platform/remote/common/remoteAgentEnvironment.ts b/src/vs/platform/remote/common/remoteAgentEnvironment.ts
index 839a6cb5c19..81028f0af4b 100644
--- a/src/vs/platform/remote/common/remoteAgentEnvironment.ts
+++ b/src/vs/platform/remote/common/remoteAgentEnvironment.ts
@@ -11,12 +11,12 @@ export interface IRemoteAgentEnvironment {
 	pid: number;
 	connectionToken: string;
 	appRoot: URI;
-	appSettingsHome: URI;
 	settingsPath: URI;
 	logsPath: URI;
 	extensionsPath: URI;
 	extensionHostLogsPath: URI;
 	globalStorageHome: URI;
+	workspaceStorageHome: URI;
 	userHome: URI;
 	extensions: IExtensionDescription[];
 	os: OperatingSystem;
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index 321dd58f7a8..394bdf82dcd 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -64,10 +64,10 @@ export interface IEnvironment {
 	appRoot?: URI;
 	appLanguage: string;
 	appUriScheme: string;
-	appSettingsHome?: URI;
 	extensionDevelopmentLocationURI?: URI[];
 	extensionTestsLocationURI?: URI;
 	globalStorageHome: URI;
+	workspaceStorageHome: URI;
 	webviewResourceRoot: string;
 	webviewCspSource: string;
 	useHostProxy?: boolean;
diff --git a/src/vs/workbench/services/extensions/browser/extensionService.ts b/src/vs/workbench/services/extensions/browser/extensionService.ts
index b33f73d5971..df204c0b0a9 100644
--- a/src/vs/workbench/services/extensions/browser/extensionService.ts
+++ b/src/vs/workbench/services/extensions/browser/extensionService.ts
@@ -140,9 +140,9 @@ export class ExtensionService extends AbstractExtensionService implements IExten
 				connectionData: this._remoteAuthorityResolverService.getConnectionData(remoteAgentConnection.remoteAuthority),
 				pid: remoteEnv.pid,
 				appRoot: remoteEnv.appRoot,
-				appSettingsHome: remoteEnv.appSettingsHome,
 				extensionHostLogsPath: remoteEnv.extensionHostLogsPath,
 				globalStorageHome: remoteEnv.globalStorageHome,
+				workspaceStorageHome: remoteEnv.workspaceStorageHome,
 				extensions: remoteEnv.extensions,
 				allExtensions: remoteEnv.extensions.concat(localExtensions)
 			};
diff --git a/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts b/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
index 2c96b952293..031ed230b86 100644
--- a/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
@@ -153,6 +153,7 @@ export class WebWorkerExtensionHost implements IExtensionHost {
 				extensionDevelopmentLocationURI: this._environmentService.extensionDevelopmentLocationURI,
 				extensionTestsLocationURI: this._environmentService.extensionTestsLocationURI,
 				globalStorageHome: this._environmentService.globalStorageHome,
+				workspaceStorageHome: this._environmentService.workspaceStorageHome,
 				webviewResourceRoot: this._environmentService.webviewResourceRoot,
 				webviewCspSource: this._environmentService.webviewCspSource,
 			},
diff --git a/src/vs/workbench/services/extensions/common/extensionHostMain.ts b/src/vs/workbench/services/extensions/common/extensionHostMain.ts
index 873170dc454..552e08e1917 100644
--- a/src/vs/workbench/services/extensions/common/extensionHostMain.ts
+++ b/src/vs/workbench/services/extensions/common/extensionHostMain.ts
@@ -132,13 +132,13 @@ export class ExtensionHostMain {
 	private static _transform(initData: IInitData, rpcProtocol: RPCProtocol): IInitData {
 		initData.extensions.forEach((ext) => (<any>ext).extensionLocation = URI.revive(rpcProtocol.transformIncomingURIs(ext.extensionLocation)));
 		initData.environment.appRoot = URI.revive(rpcProtocol.transformIncomingURIs(initData.environment.appRoot));
-		initData.environment.appSettingsHome = URI.revive(rpcProtocol.transformIncomingURIs(initData.environment.appSettingsHome));
 		const extDevLocs = initData.environment.extensionDevelopmentLocationURI;
 		if (extDevLocs) {
 			initData.environment.extensionDevelopmentLocationURI = extDevLocs.map(url => URI.revive(rpcProtocol.transformIncomingURIs(url)));
 		}
 		initData.environment.extensionTestsLocationURI = URI.revive(rpcProtocol.transformIncomingURIs(initData.environment.extensionTestsLocationURI));
 		initData.environment.globalStorageHome = URI.revive(rpcProtocol.transformIncomingURIs(initData.environment.globalStorageHome));
+		initData.environment.workspaceStorageHome = URI.revive(rpcProtocol.transformIncomingURIs(initData.environment.workspaceStorageHome));
 		initData.logsLocation = URI.revive(rpcProtocol.transformIncomingURIs(initData.logsLocation));
 		initData.logFile = URI.revive(rpcProtocol.transformIncomingURIs(initData.logFile));
 		initData.workspace = rpcProtocol.transformIncomingURIs(initData.workspace);
diff --git a/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts b/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
index 33197d80108..5a8bb9b6577 100644
--- a/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
@@ -36,9 +36,9 @@ export interface IRemoteExtensionHostInitData {
 	readonly connectionData: IRemoteConnectionData | null;
 	readonly pid: number;
 	readonly appRoot: URI;
-	readonly appSettingsHome: URI;
 	readonly extensionHostLogsPath: URI;
 	readonly globalStorageHome: URI;
+	readonly workspaceStorageHome: URI;
 	readonly extensions: IExtensionDescription[];
 	readonly allExtensions: IExtensionDescription[];
 }
@@ -214,13 +214,13 @@ export class RemoteExtensionHost extends Disposable implements IExtensionHost {
 			environment: {
 				isExtensionDevelopmentDebug,
 				appRoot: remoteInitData.appRoot,
-				appSettingsHome: remoteInitData.appSettingsHome,
 				appName: this._productService.nameLong,
 				appUriScheme: this._productService.urlProtocol,
 				appLanguage: platform.language,
 				extensionDevelopmentLocationURI: this._environmentService.extensionDevelopmentLocationURI,
 				extensionTestsLocationURI: this._environmentService.extensionTestsLocationURI,
 				globalStorageHome: remoteInitData.globalStorageHome,
+				workspaceStorageHome: remoteInitData.workspaceStorageHome,
 				webviewResourceRoot: this._environmentService.webviewResourceRoot,
 				webviewCspSource: this._environmentService.webviewCspSource,
 			},
diff --git a/src/vs/workbench/services/extensions/electron-browser/extensionService.ts b/src/vs/workbench/services/extensions/electron-browser/extensionService.ts
index 2903d293aea..708d1d488da 100644
--- a/src/vs/workbench/services/extensions/electron-browser/extensionService.ts
+++ b/src/vs/workbench/services/extensions/electron-browser/extensionService.ts
@@ -575,9 +575,9 @@ export class ExtensionService extends AbstractExtensionService implements IExten
 				connectionData: this._remoteAuthorityResolverService.getConnectionData(remoteAuthority),
 				pid: remoteEnv.pid,
 				appRoot: remoteEnv.appRoot,
-				appSettingsHome: remoteEnv.appSettingsHome,
 				extensionHostLogsPath: remoteEnv.extensionHostLogsPath,
 				globalStorageHome: remoteEnv.globalStorageHome,
+				workspaceStorageHome: remoteEnv.workspaceStorageHome,
 				extensions: remoteExtensions,
 				allExtensions: this._registry.getAllExtensionDescriptions(),
 			});
diff --git a/src/vs/workbench/services/extensions/electron-browser/localProcessExtensionHost.ts b/src/vs/workbench/services/extensions/electron-browser/localProcessExtensionHost.ts
index c38f5aa64fa..fdf086f74c7 100644
--- a/src/vs/workbench/services/extensions/electron-browser/localProcessExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/electron-browser/localProcessExtensionHost.ts
@@ -430,13 +430,13 @@ export class LocalProcessExtensionHost implements IExtensionHost {
 			environment: {
 				isExtensionDevelopmentDebug: this._isExtensionDevDebug,
 				appRoot: this._environmentService.appRoot ? URI.file(this._environmentService.appRoot) : undefined,
-				appSettingsHome: this._environmentService.appSettingsHome ? this._environmentService.appSettingsHome : undefined,
 				appName: this._productService.nameLong,
 				appUriScheme: this._productService.urlProtocol,
 				appLanguage: platform.language,
 				extensionDevelopmentLocationURI: this._environmentService.extensionDevelopmentLocationURI,
 				extensionTestsLocationURI: this._environmentService.extensionTestsLocationURI,
 				globalStorageHome: this._environmentService.globalStorageHome,
+				workspaceStorageHome: this._environmentService.workspaceStorageHome,
 				webviewResourceRoot: this._environmentService.webviewResourceRoot,
 				webviewCspSource: this._environmentService.webviewCspSource,
 			},
diff --git a/src/vs/workbench/services/remote/common/remoteAgentEnvironmentChannel.ts b/src/vs/workbench/services/remote/common/remoteAgentEnvironmentChannel.ts
index 3da291e8c91..f37e2c744eb 100644
--- a/src/vs/workbench/services/remote/common/remoteAgentEnvironmentChannel.ts
+++ b/src/vs/workbench/services/remote/common/remoteAgentEnvironmentChannel.ts
@@ -21,12 +21,12 @@ export interface IRemoteAgentEnvironmentDTO {
 	pid: number;
 	connectionToken: string;
 	appRoot: UriComponents;
-	appSettingsHome: UriComponents;
 	settingsPath: UriComponents;
 	logsPath: UriComponents;
 	extensionsPath: UriComponents;
 	extensionHostLogsPath: UriComponents;
 	globalStorageHome: UriComponents;
+	workspaceStorageHome: UriComponents;
 	userHome: UriComponents;
 	extensions: IExtensionDescription[];
 	os: platform.OperatingSystem;
@@ -47,12 +47,12 @@ export class RemoteExtensionEnvironmentChannelClient {
 			pid: data.pid,
 			connectionToken: data.connectionToken,
 			appRoot: URI.revive(data.appRoot),
-			appSettingsHome: URI.revive(data.appSettingsHome),
 			settingsPath: URI.revive(data.settingsPath),
 			logsPath: URI.revive(data.logsPath),
 			extensionsPath: URI.revive(data.extensionsPath),
 			extensionHostLogsPath: URI.revive(data.extensionHostLogsPath),
 			globalStorageHome: URI.revive(data.globalStorageHome),
+			workspaceStorageHome: URI.revive(data.workspaceStorageHome),
 			userHome: URI.revive(data.userHome),
 			extensions: data.extensions.map(ext => { (<any>ext).extensionLocation = URI.revive(ext.extensionLocation); return ext; }),
 			os: data.os