diff --git a/distributedcloud/dcmanager/common/consts.py b/distributedcloud/dcmanager/common/consts.py
index b0c64dd70..f94c7b3ba 100644
--- a/distributedcloud/dcmanager/common/consts.py
+++ b/distributedcloud/dcmanager/common/consts.py
@@ -282,7 +282,7 @@ ALARM_DEGRADED_STATUS = "degraded"
 ALARM_CRITICAL_STATUS = "critical"
 
 # subcloud deploy file options
-ANSIBLE_OVERRIDES_PATH = '/var/opt/dc/ansible'
+ANSIBLE_OVERRIDES_PATH = '/opt/dc-vault/ansible'
 DEPLOY_PLAYBOOK = "deploy_playbook"
 DEPLOY_OVERRIDES = "deploy_overrides"
 DEPLOY_CHART = "deploy_chart"
diff --git a/distributedcloud/dcmanager/manager/service.py b/distributedcloud/dcmanager/manager/service.py
index 2041ea714..a54853641 100644
--- a/distributedcloud/dcmanager/manager/service.py
+++ b/distributedcloud/dcmanager/manager/service.py
@@ -92,6 +92,8 @@ class DCManagerService(service.Service):
         if not os.path.isdir(consts.DC_ANSIBLE_LOG_DIR):
             os.mkdir(consts.DC_ANSIBLE_LOG_DIR, 0o755)
 
+        os.makedirs(consts.ANSIBLE_OVERRIDES_PATH, 0o600, exist_ok=True)
+
         self.subcloud_manager.handle_subcloud_operations_in_progress()
         super(DCManagerService, self).start()
 
diff --git a/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subcloud_deploy.py b/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subcloud_deploy.py
index 0d10ce6cc..765a5949b 100644
--- a/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subcloud_deploy.py
+++ b/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subcloud_deploy.py
@@ -254,8 +254,8 @@ class TestSubcloudDeploy(testroot.DCManagerApiTest):
         deploy_config = psd_common.get_config_file_path("subcloud1",
                                                         consts.DEPLOY_CONFIG)
         self.assertEqual(bootstrap_file,
-                         "/var/opt/dc/ansible/subcloud1.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1.yml')
         self.assertEqual(install_values,
-                         "/var/opt/dc/ansible/subcloud1/install_values.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1/install_values.yml')
         self.assertEqual(deploy_config,
-                         "/var/opt/dc/ansible/subcloud1_deploy_config.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_deploy_config.yml')
diff --git a/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subclouds.py b/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subclouds.py
index e4cb4508d..28e158a3c 100644
--- a/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subclouds.py
+++ b/distributedcloud/dcmanager/tests/unit/api/v1/controllers/test_subclouds.py
@@ -1591,11 +1591,11 @@ class TestSubcloudAPIOther(testroot.DCManagerApiTest):
         install_values = sc._get_config_file_path("subcloud1", "install_values")
         deploy_config = sc._get_config_file_path("subcloud1", consts.DEPLOY_CONFIG)
         self.assertEqual(bootstrap_file,
-                         "/var/opt/dc/ansible/subcloud1.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1.yml')
         self.assertEqual(install_values,
-                         "/var/opt/dc/ansible/subcloud1/install_values.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1/install_values.yml')
         self.assertEqual(deploy_config,
-                         "/var/opt/dc/ansible/subcloud1_deploy_config.yml")
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_deploy_config.yml')
 
     @mock.patch.object(rpc_client, 'ManagerClient')
     def test_format_ip_address(self, mock_rpc_client):
diff --git a/distributedcloud/dcmanager/tests/unit/manager/test_subcloud_manager.py b/distributedcloud/dcmanager/tests/unit/manager/test_subcloud_manager.py
index b6fda3b13..48c01a4e6 100644
--- a/distributedcloud/dcmanager/tests/unit/manager/test_subcloud_manager.py
+++ b/distributedcloud/dcmanager/tests/unit/manager/test_subcloud_manager.py
@@ -1581,22 +1581,22 @@ class TestSubcloudManager(base.DCManagerTestCase):
         filename = sm._get_ansible_filename('subcloud1',
                                             consts.INVENTORY_FILE_POSTFIX)
         self.assertEqual(filename,
-                         '/var/opt/dc/ansible/subcloud1_inventory.yml')
+                         f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml')
 
     def test_compose_install_command(self):
         sm = subcloud_manager.SubcloudManager()
         install_command = sm.compose_install_command(
             'subcloud1',
-            '/var/opt/dc/ansible/subcloud1_inventory.yml',
+            f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
             FAKE_PREVIOUS_SW_VERSION)
         self.assertEqual(
             install_command,
             [
                 'ansible-playbook',
                 subcloud_manager.ANSIBLE_SUBCLOUD_INSTALL_PLAYBOOK,
-                '-i', '/var/opt/dc/ansible/subcloud1_inventory.yml',
+                '-i', f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
                 '--limit', 'subcloud1',
-                '-e', "@/var/opt/dc/ansible/subcloud1/install_values.yml",
+                '-e', f"@{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1/install_values.yml",
                 '-e', "install_release_version=%s" % FAKE_PREVIOUS_SW_VERSION
             ]
         )
@@ -1607,7 +1607,7 @@ class TestSubcloudManager(base.DCManagerTestCase):
         sm = subcloud_manager.SubcloudManager()
         apply_command = sm.compose_apply_command(
             'subcloud1',
-            '/var/opt/dc/ansible/subcloud1_inventory.yml',
+            f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
             FAKE_PREVIOUS_SW_VERSION)
         self.assertEqual(
             apply_command,
@@ -1616,9 +1616,9 @@ class TestSubcloudManager(base.DCManagerTestCase):
                 cutils.get_playbook_for_software_version(
                     subcloud_manager.ANSIBLE_SUBCLOUD_PLAYBOOK,
                     FAKE_PREVIOUS_SW_VERSION),
-                '-i', '/var/opt/dc/ansible/subcloud1_inventory.yml',
+                '-i', f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
                 '--limit', 'subcloud1', '-e',
-                "override_files_dir='/var/opt/dc/ansible' region_name=subcloud1",
+                f"override_files_dir='{consts.ANSIBLE_OVERRIDES_PATH}' region_name=subcloud1",
                 '-e', "install_release_version=%s" % FAKE_PREVIOUS_SW_VERSION
             ]
         )
@@ -1632,14 +1632,14 @@ class TestSubcloudManager(base.DCManagerTestCase):
                         "deploy_config": "subcloud1.yaml"}
         deploy_command = sm.compose_deploy_command(
             'subcloud1',
-            '/var/opt/dc/ansible/subcloud1_inventory.yml',
+            f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
             fake_payload)
         self.assertEqual(
             deploy_command,
             [
                 'ansible-playbook', 'test_playbook.yaml', '-e',
-                '@/var/opt/dc/ansible/subcloud1_deploy_values.yml', '-i',
-                '/var/opt/dc/ansible/subcloud1_inventory.yml',
+                f'@{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_deploy_values.yml', '-i',
+                f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
                 '--limit', 'subcloud1'
             ]
         )
@@ -1650,7 +1650,7 @@ class TestSubcloudManager(base.DCManagerTestCase):
         sm = subcloud_manager.SubcloudManager()
         rehome_command = sm.compose_rehome_command(
             'subcloud1',
-            '/var/opt/dc/ansible/subcloud1_inventory.yml',
+            f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
             FAKE_PREVIOUS_SW_VERSION)
         self.assertEqual(
             rehome_command,
@@ -1659,11 +1659,11 @@ class TestSubcloudManager(base.DCManagerTestCase):
                 cutils.get_playbook_for_software_version(
                     subcloud_manager.ANSIBLE_SUBCLOUD_REHOME_PLAYBOOK,
                     FAKE_PREVIOUS_SW_VERSION),
-                '-i', '/var/opt/dc/ansible/subcloud1_inventory.yml',
+                '-i', f'{consts.ANSIBLE_OVERRIDES_PATH}/subcloud1_inventory.yml',
                 '--limit', 'subcloud1',
                 '--timeout', subcloud_manager.REHOME_PLAYBOOK_TIMEOUT,
                 '-e',
-                "override_files_dir='/var/opt/dc/ansible' region_name=subcloud1"
+                f"override_files_dir='{consts.ANSIBLE_OVERRIDES_PATH}' region_name=subcloud1"
             ]
         )