diff --git a/Makefile b/Makefile
index 4e40c341..37ebb109 100644
--- a/Makefile
+++ b/Makefile
@@ -1,6 +1,7 @@
 PROGRAM = pg_probackup
 OBJS = backup.o \
 	catalog.o \
+	configure.o \
 	data.o \
 	delete.o \
 	dir.o \
diff --git a/configure.c b/configure.c
new file mode 100644
index 00000000..7f829e10
--- /dev/null
+++ b/configure.c
@@ -0,0 +1,125 @@
+/*-------------------------------------------------------------------------
+ *
+ * configure.c: - manage backup catalog.
+ *
+ * Portions Copyright (c) 2017-2017, Postgres Professional
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#include "pg_probackup.h"
+
+/* Set configure options */
+int
+do_configure(bool show_only)
+{
+	pgBackupConfig *config = readBackupCatalogConfigFile();
+	if (pgdata)
+		config->pgdata = pgdata;
+	if (pgut_dbname)
+		config->pgdatabase = pgut_dbname;
+	if (host)
+		config->pghost = host;
+	if (port)
+		config->pgport = port;
+	if (username)
+		config->pguser = username;
+
+	if (retention_redundancy)
+		config->retention_redundancy = retention_redundancy;
+	if (retention_window)
+		config->retention_window = retention_window;
+
+	if (show_only)
+		writeBackupCatalogConfig(stderr, config);
+	else
+		writeBackupCatalogConfigFile(config);
+
+	return 0;
+}
+
+void
+pgBackupConfigInit(pgBackupConfig *config)
+{
+	config->system_identifier = 0;
+	config->pgdata = NULL;
+	config->pgdatabase = NULL;
+	config->pghost = NULL;
+	config->pgport = NULL;
+	config->pguser = NULL;
+
+	config->retention_redundancy = 0;
+	config->retention_window = 0;
+}
+
+void
+writeBackupCatalogConfig(FILE *out, pgBackupConfig *config)
+{
+	fprintf(out, "#Backup instance info\n");
+	fprintf(out, "PGDATA = %s\n", config->pgdata);
+	fprintf(out, "system-identifier = %li\n", config->system_identifier);
+
+	fprintf(out, "#Connection parameters:\n");
+	if (config->pgdatabase)
+		fprintf(out, "PGDATABASE = %s\n", config->pgdatabase);
+	if (config->pghost)
+		fprintf(out, "PGHOST = %s\n", config->pghost);
+	if (config->pgport)
+		fprintf(out, "PGPORT = %s\n", config->pgport);
+	if (config->pguser)
+		fprintf(out, "PGUSER = %s\n", config->pguser);
+		fprintf(out, "#Retention parameters:\n");
+	if (config->retention_redundancy)
+		fprintf(out, "retention-redundancy = %u\n", config->retention_redundancy);
+	if (config->retention_window)
+		fprintf(out, "retention-window = %u\n", config->retention_window);
+
+}
+
+void
+writeBackupCatalogConfigFile(pgBackupConfig *config)
+{
+	char		path[MAXPGPATH];
+	FILE	   *fp;
+
+	join_path_components(path, backup_path, BACKUPS_DIR);
+	join_path_components(path, backup_path, BACKUP_CATALOG_CONF_FILE);
+	fp = fopen(path, "wt");
+	if (fp == NULL)
+		elog(ERROR, "cannot create %s: %s",
+			 BACKUP_CATALOG_CONF_FILE, strerror(errno));
+
+	writeBackupCatalogConfig(fp, config);
+	fclose(fp);
+}
+
+
+pgBackupConfig*
+readBackupCatalogConfigFile(void)
+{
+	pgBackupConfig *config = pgut_new(pgBackupConfig);
+	char		path[MAXPGPATH];
+
+	pgut_option options[] =
+	{
+			/* configure options */
+		{ 'U', 0, "system-identifier",		&(config->system_identifier),	SOURCE_FILE_STRICT },
+		{ 's', 0, "pgdata",					&(config->pgdata),				SOURCE_FILE_STRICT },
+		{ 's', 0, "pgdatabase",				&(config->pgdatabase),			SOURCE_FILE_STRICT },
+		{ 's', 0, "pghost",					&(config->pghost),				SOURCE_FILE_STRICT },
+		{ 's', 0, "pgport",					&(config->pgport),				SOURCE_FILE_STRICT },
+		{ 's', 0, "pguser",					&(config->pguser),				SOURCE_FILE_STRICT },
+		{ 'u', 0, "retention-redundancy",	&(config->retention_redundancy),SOURCE_FILE_STRICT },
+		{ 'u', 0, "retention-window",		&(config->retention_window),	SOURCE_FILE_STRICT },
+		{0}
+	};
+
+	join_path_components(path, backup_path, BACKUPS_DIR);
+	join_path_components(path, backup_path, BACKUP_CATALOG_CONF_FILE);
+
+	pgBackupConfigInit(config);
+	pgut_readopt(path, options, ERROR);
+
+	return config;
+
+}
diff --git a/init.c b/init.c
index c7cb6581..9a85022d 100644
--- a/init.c
+++ b/init.c
@@ -1,6 +1,6 @@
 /*-------------------------------------------------------------------------
  *
- * init.c: manage backup catalog.
+ * init.c: - initialize backup catalog.
  *
  * Portions Copyright (c) 2009-2011, NIPPON TELEGRAPH AND TELEPHONE CORPORATION
  * Portions Copyright (c) 2015-2017, Postgres Professional
@@ -30,11 +30,10 @@ do_init(void)
 {
 	char		path[MAXPGPATH];
 	char		arclog_path_dir[MAXPGPATH];
-	FILE	   *fp;
-	uint64		id;
 
 	struct dirent **dp;
 	int results;
+	pgBackupConfig *config = pgut_new(pgBackupConfig);
 
 	/* PGDATA is always required */
 	if (pgdata == NULL)
@@ -49,7 +48,7 @@ do_init(void)
 	}
 
 	/* Read system_identifier from PGDATA */
-	id = get_system_identifier();
+	system_identifier = get_system_identifier();
 
 	/* create backup catalog root directory */
 	dir_create_dir(backup_path, DIR_PERMISSION);
@@ -62,16 +61,14 @@ do_init(void)
 	join_path_components(arclog_path_dir, backup_path, "wal");
 	dir_create_dir(arclog_path_dir, DIR_PERMISSION);
 
-	/* create BACKUP_CATALOG_CONF_FILE */
-	join_path_components(path, backup_path, BACKUP_CATALOG_CONF_FILE);
-	fp = fopen(path, "wt");
-	if (fp == NULL)
-		elog(ERROR, "cannot create %s: %s",
-			 BACKUP_CATALOG_CONF_FILE, strerror(errno));
-
-	fprintf(fp, "system-identifier = %li\n", id);
-	fprintf(fp, "\n");
-	fclose(fp);
+	/*
+	 * Wite initial config. system-identifier and pgdata are set in
+	 * init subcommand and will never be updated.
+	 */
+	pgBackupConfigInit(config);
+	config->system_identifier = system_identifier;
+	config->pgdata = pgdata;
+	writeBackupCatalogConfigFile(config);
 
 	return 0;
 }
diff --git a/pg_probackup.c b/pg_probackup.c
index d023f67a..f9768e88 100644
--- a/pg_probackup.c
+++ b/pg_probackup.c
@@ -90,10 +90,10 @@ static pgut_option options[] =
 	/* other */
 	{ 'U', 15, "system-identifier",		&system_identifier,		SOURCE_FILE_STRICT },
 
-	{ 's', 'd', "dbname"	, &pgut_dbname, SOURCE_CMDLINE },
-	{ 's', 'h', "host"		, &host, SOURCE_CMDLINE },
-	{ 's', 'p', "port"		, &port, SOURCE_CMDLINE },
-	{ 's', 'U', "username"	, &username, SOURCE_CMDLINE },
+	{ 's', 'd', "pgdatabase"	, &pgut_dbname, SOURCE_CMDLINE },
+	{ 's', 'h', "pghost"		, &host, SOURCE_CMDLINE },
+	{ 's', 'p', "pgport"		, &port, SOURCE_CMDLINE },
+	{ 's', 'U', "pguser"	, &username, SOURCE_CMDLINE },
 	{ 'b', 'q', "quiet"		, &quiet, SOURCE_CMDLINE },
 	{ 'b', 'v', "verbose"	, &verbose, SOURCE_CMDLINE },
 	{ 'B', 'w', "no-password"	, &prompt_password, SOURCE_CMDLINE },
@@ -148,9 +148,13 @@ main(int argc, char *argv[])
 	/* Parse command line arguments */
 	i = pgut_getopt(argc, argv, options);
 
-	/* BACKUP_PATH is always required */
 	if (backup_path == NULL)
-		elog(ERROR, "required parameter not specified: BACKUP_PATH (-B, --backup-path)");
+	{
+		/* Try to read BACKUP_PATH from environment variable */
+		backup_path = getenv("BACKUP_PATH");
+		if (backup_path == NULL)
+			elog(ERROR, "required parameter not specified: BACKUP_PATH (-B, --backup-path)");
+	}
 	else
 	{
 		char		path[MAXPGPATH];
@@ -162,8 +166,16 @@ main(int argc, char *argv[])
 		if (rc != -1 && !S_ISDIR(stat_buf.st_mode))
 			elog(ERROR, "-B, --backup-path must be a path to directory");
 
-		join_path_components(path, backup_path, BACKUP_CATALOG_CONF_FILE);
-		pgut_readopt(path, options, ERROR);
+		/* Do not read options from file or env if we're going to set them */
+		if (backup_subcmd != CONFIGURE)
+		{
+			/* Read options from configuration file */
+			join_path_components(path, backup_path, BACKUP_CATALOG_CONF_FILE);
+			pgut_readopt(path, options, ERROR);
+
+			/* Read environment variables */
+			pgut_getopt_env(options);
+		}
 	}
 
 	if (backup_id_string_param != NULL)
@@ -225,19 +237,13 @@ main(int argc, char *argv[])
 		case DELETE:
 			return do_delete(current.backup_id);
 		case CONFIGURE:
-			elog(ERROR, "not implemented yet");
+			/* TODO fixit */
+			if (argc == 4)
+				return do_configure(true);
+			else
+				return do_configure(false);
 	}
 
-// 	if (pg_strcasecmp(cmd, "retention") == 0)
-// 	{
-// 		if (subcmd == NULL)
-// 			elog(ERROR, "you must specify retention command");
-// 		else if (pg_strcasecmp(subcmd, "show") == 0)
-// 			return do_retention_show();
-// 		else if (pg_strcasecmp(subcmd, "purge") == 0)
-// 			return do_retention_purge();
-// 	}
-
 	return 0;
 }
 
diff --git a/pg_probackup.h b/pg_probackup.h
index 29b21945..418f074d 100644
--- a/pg_probackup.h
+++ b/pg_probackup.h
@@ -114,6 +114,19 @@ typedef enum ProbackupSubcmd
 #define INVALID_BACKUP_ID	 0
 #define BYTES_INVALID		(-1)
 
+typedef struct pgBackupConfig
+{
+	uint64		system_identifier;
+	char		*pgdata;
+	const char	*pgdatabase;
+	const char	*pghost;
+	const char	*pgport;
+	const char	*pguser;
+
+	uint32		retention_redundancy;
+	uint32		retention_window;
+} pgBackupConfig;
+
 /* Information about single backup stored in backup.conf */
 typedef struct pgBackup
 {
@@ -262,6 +275,13 @@ extern void opt_tablespace_map(pgut_option *opt, const char *arg);
 /* in init.c */
 extern int do_init(void);
 
+/* in configure.c */
+extern int do_configure(bool show_only);
+extern void pgBackupConfigInit(pgBackupConfig *config);
+extern void writeBackupCatalogConfig(FILE *out, pgBackupConfig *config);
+extern void writeBackupCatalogConfigFile(pgBackupConfig *config);
+extern pgBackupConfig* readBackupCatalogConfigFile(void);
+
 /* in show.c */
 extern int do_show(time_t requested_backup_id);
 
diff --git a/pgut/pgut.c b/pgut/pgut.c
index 4bc7f7cc..e961c1d1 100644
--- a/pgut/pgut.c
+++ b/pgut/pgut.c
@@ -505,12 +505,8 @@ longopts_to_optstring(const struct option opts[])
 	return result;
 }
 
-/*
- * Read options from environmental variables.
- * Do not overwrite in option was already set via command line option.
- */
-static void
-option_from_env(pgut_option options[])
+void
+pgut_getopt_env(pgut_option options[])
 {
 	size_t	i;
 
@@ -523,9 +519,6 @@ option_from_env(pgut_option options[])
 		if (opt->source > SOURCE_ENV || opt->allowed < SOURCE_ENV)
 			continue;
 
-		if (strcmp(opt->lname, "backup-path") == 0)
-			value = getenv("BACKUP_PATH");
-
 		if (strcmp(opt->lname, "pgdata") == 0)
 			value = getenv("PGDATA");
 		if (strcmp(opt->lname, "port") == 0)
@@ -534,7 +527,7 @@ option_from_env(pgut_option options[])
 			value = getenv("PGHOST");
 		if (strcmp(opt->lname, "username") == 0)
 			value = getenv("PGUSER");
-		if (strcmp(opt->lname, "dbname") == 0)
+		if (strcmp(opt->lname, "pgdatabase") == 0)
 		{
 			value = getenv("PGDATABASE");
 			if (value == NULL)
@@ -575,9 +568,6 @@ pgut_getopt(int argc, char **argv, pgut_option options[])
 		assign_option(opt, optarg, SOURCE_CMDLINE);
 	}
 
-	/* Read environment variables */
-	option_from_env(options);
-
 	init_cancel_handler();
 	atexit(on_cleanup);
 
diff --git a/pgut/pgut.h b/pgut/pgut.h
index 889467a7..5afbd0ff 100644
--- a/pgut/pgut.h
+++ b/pgut/pgut.h
@@ -92,6 +92,7 @@ extern bool			interrupted;
 extern void help(bool details);
 extern int pgut_getopt(int argc, char **argv, pgut_option options[]);
 extern void pgut_readopt(const char *path, pgut_option options[], int elevel);
+extern void pgut_getopt_env(pgut_option options[]);
 extern void pgut_atexit_push(pgut_atexit_callback callback, void *userdata);
 extern void pgut_atexit_pop(pgut_atexit_callback callback, void *userdata);