diff --git a/nvm.sh b/nvm.sh
index 98e6228..6e9da50 100644
--- a/nvm.sh
+++ b/nvm.sh
@@ -95,13 +95,37 @@ nvm_rc_version() {
   fi
 }
 
+nvm_version_greater() {
+  local LHS
+  LHS=$(echo "$1" | awk -F. '{for (i=1;i<=NF;++i) printf "%010d",$i}')
+  local RHS
+  RHS=$(echo "$2" | awk -F. '{for (i=1;i<=NF;++i) printf "%010d",$i}')
+  [ $LHS \> $RHS ];
+}
+
+nvm_version_dir() {
+  local NVM_USE_NEW_DIR
+  NVM_USE_NEW_DIR="$1"
+  if [ -z "$NVM_USE_NEW_DIR" ] || [ "$NVM_USE_NEW_DIR" = "new" ]; then
+    echo "$NVM_DIR/versions"
+  elif [ "$NVM_USE_NEW_DIR" = "old" ]; then
+    echo "$NVM_DIR"
+  else
+    echo "unknown version dir" >&2
+    return 3
+  fi
+}
+
 nvm_version_path() {
   local VERSION
   VERSION="$1"
   if [ -z "$VERSION" ]; then
-    echo "$NVM_DIR"
-  elif [ ! -z "$VERSION" ]; then
-    echo "$NVM_DIR/$VERSION"
+    echo "version is required" >&2
+    return 3
+  elif nvm_version_greater 0.12.0 "$VERSION"; then
+    echo "$(nvm_version_dir old)/$VERSION"
+  else
+    echo "$(nvm_version_dir new)/$VERSION"
   fi
 }
 
@@ -205,8 +229,13 @@ nvm_ls() {
     if [ `expr "$PATTERN" : "v[0-9]*\.[0-9]*$"` != 0 ]; then
       PATTERN="$PATTERN."
     fi
-    VERSIONS=`find "$NVM_DIR/" -maxdepth 1 -type d -name "$PATTERN*" -exec basename '{}' ';' \
-      | sort -t. -u -k 1.2,1n -k 2,2n -k 3,3n | \grep -v '^ *\.' | \grep -e '^v'`
+    if [ -d "$(nvm_version_dir new)" ]; then
+      VERSIONS=`find "$(nvm_version_dir new)/" "$(nvm_version_dir old)/" -maxdepth 1 -type d -name "$PATTERN*" -exec basename '{}' ';' \
+        | sort -t. -u -k 1.2,1n -k 2,2n -k 3,3n | \grep -v '^ *\.' | \grep -e '^v'`
+    else
+      VERSIONS=`find "$(nvm_version_dir old)/" -maxdepth 1 -type d -name "$PATTERN*" -exec basename '{}' ';' \
+        | sort -t. -u -k 1.2,1n -k 2,2n -k 3,3n | \grep -v '^ *\.' | \grep -e '^v'`
+    fi
   fi
   if [ -z "$VERSIONS" ]; then
     echo "N/A"
@@ -753,7 +782,7 @@ nvm() {
       npm install -g --quiet $INSTALLS
     ;;
     "clear-cache" )
-      rm -f $NVM_DIR/v* 2>/dev/null
+      rm -f $NVM_DIR/v* "$(nvm_version_dir)" 2>/dev/null
       echo "Cache cleared."
     ;;
     "version" )
@@ -763,7 +792,7 @@ nvm() {
       echo "0.13.1"
     ;;
     "unload" )
-      unset -f nvm nvm_print_versions nvm_checksum nvm_ls_remote nvm_ls nvm_remote_version nvm_version nvm_rc_version > /dev/null 2>&1
+      unset -f nvm nvm_print_versions nvm_checksum nvm_ls_remote nvm_ls nvm_remote_version nvm_version nvm_rc_version nvm_version_greater > /dev/null 2>&1
       unset RC_VERSION NVM_NODEJS_ORG_MIRROR NVM_DIR NVM_CD_FLAGS > /dev/null 2>&1
     ;;
     * )
diff --git "a/test/fast/Listing versions/Running \"nvm ls\" should list versions in the \"versions\" directory" "b/test/fast/Listing versions/Running \"nvm ls\" should list versions in the \"versions\" directory"
new file mode 100755
index 0000000..eb8f2ba
--- /dev/null
+++ "b/test/fast/Listing versions/Running \"nvm ls\" should list versions in the \"versions\" directory"	
@@ -0,0 +1,12 @@
+#!/bin/sh
+
+die () { echo $@ ; exit 1; }
+
+mkdir -p ../../../versions/v0.12.1
+mkdir ../../../v0.1.3
+
+. ../../../nvm.sh
+
+nvm ls 0.12 | grep v0.12.1 || die '"nvm ls" did not list a version in the versions/ directory'
+nvm ls 0.1 | grep v0.1.3 || die '"nvm ls" did not list a version not in the versions/ directory'
+
diff --git a/test/fast/Listing versions/teardown b/test/fast/Listing versions/teardown
index 191d12b..a8fc501 100644
--- a/test/fast/Listing versions/teardown	
+++ b/test/fast/Listing versions/teardown	
@@ -7,5 +7,6 @@ rmdir ../../../v0.2.3
 rmdir ../../../v0.3.1
 rmdir ../../../v0.3.3
 rmdir ../../../v0.3.9
+rmdir ../../../versions
 unalias nvm_has_system_node
 
diff --git a/test/fast/Unit tests/nvm_version_dir b/test/fast/Unit tests/nvm_version_dir
new file mode 100755
index 0000000..fb070ce
--- /dev/null
+++ b/test/fast/Unit tests/nvm_version_dir	
@@ -0,0 +1,11 @@
+#!/bin/sh
+
+die () { echo $@ ; exit 1; }
+
+. ../../../nvm.sh
+
+[ "$(nvm_version_dir)" = "$NVM_DIR/versions" ] || die '"nvm_version_dir" did not return new dir path'
+[ "$(nvm_version_dir new)" = "$(nvm_version_dir)" ] || die '"nvm_version_dir new" did not return new dir path'
+[ "$(nvm_version_dir old)" = "$NVM_DIR" ] || die '"nvm_version_dir old" did not return old dir path'
+[ "$(nvm_version_dir foo 2>&1)" = "unknown version dir" ] || die '"nvm_version_dir foo" did not error out'
+
diff --git a/test/fast/Unit tests/nvm_version_greater b/test/fast/Unit tests/nvm_version_greater
new file mode 100755
index 0000000..8f8f551
--- /dev/null
+++ b/test/fast/Unit tests/nvm_version_greater	
@@ -0,0 +1,10 @@
+#!/bin/sh
+
+die () { echo $@ ; exit 1; }
+
+. ../../../nvm.sh
+
+nvm_version_greater 0.10.0 0.2.12 || die '"nvm_version_greater 0.10.0 0.2.12" did not return true'
+! nvm_version_greater 0.10.0 0.20.12 || die '"nvm_version_greater 0.10.0 0.20.12" returned true'
+! nvm_version_greater 0.10.0 0.10.0 || die '"nvm_version_greater" returned false for the same two versions'
+
diff --git a/test/fast/Unit tests/nvm_version_path b/test/fast/Unit tests/nvm_version_path
index adb6338..b9fa2e5 100755
--- a/test/fast/Unit tests/nvm_version_path	
+++ b/test/fast/Unit tests/nvm_version_path	
@@ -4,6 +4,8 @@ die () { echo $@ ; exit 1; }
 
 . ../../../nvm.sh
 
-[ "$(nvm_version_path)" = "$NVM_DIR" ] &&
-[ "$(nvm_version_path foo)" = "$NVM_DIR/foo" ]
+[ "$(nvm_version_path foo)" = "$NVM_DIR/foo" ] || die '"nvm_version_path foo" did not return correct location'
+[ "$(nvm_version_path 2>&1)" = "version is required" ] || die '"nvm_version_path" did not error out'
+[ "$(nvm_version_path v0.11.0)" = "$NVM_DIR/v0.11.0" ] || die 'old version has the wrong path'
+[ "$(nvm_version_path v0.12.0)" = "$NVM_DIR/versions/v0.12.0" ] || die 'new version has the wrong path'
 
diff --git a/test/fast/setup_dir b/test/fast/setup_dir
index 64e097c..5e2a208 100755
--- a/test/fast/setup_dir
+++ b/test/fast/setup_dir
@@ -9,5 +9,8 @@
   for SRC in v* src alias; do
     [ -e "$SRC" ] && mv "$SRC" bak
   done
+  if [ -d versions ]; then
+    mv versions bak
+  fi
   true
 )