diff --git a/configure-host.sh b/configure-host.sh
index a06b0e2..4933cb9 100755
--- a/configure-host.sh
+++ b/configure-host.sh
@@ -116,7 +116,13 @@ EOF
 }
 
 load_observability_env() {
-  local env_file="${INSTALL_DIR}/.env.observability"
+  local env_file
+
+  if [ -f "./.env.observability" ]; then
+    env_file="./.env.observability"
+  else
+    env_file="${INSTALL_DIR}/.env.observability"
+  fi
 
   if [ ! -f "$env_file" ]; then
     _observability_defaults "$env_file"