diff --git a/supervisor/options.py b/supervisor/options.py
index 672dba113..f46801e9f 100644
--- a/supervisor/options.py
+++ b/supervisor/options.py
@@ -628,7 +628,10 @@ def get(opt, default, **kwargs):
         if directory is None:
             section.directory = None
         else:
+            if "~" in directory:
+                directory = normalize_path(directory)
             section.directory = existing_directory(directory)
+        expansions.update(directory=directory)
 
         section.user = get('user', None)
         section.umask = octal_type(get('umask', '022'))
@@ -966,6 +969,9 @@ def get(section, opt, *args, **kwargs):
                 expansions['ENV_%s' % k] = v
 
             directory = get(section, 'directory', None)
+            if directory and "~" in directory:
+                directory = normalize_path(directory)
+            expansions.update(directory=directory)
 
             logfiles = {}
 
diff --git a/supervisor/process.py b/supervisor/process.py
index b394be812..82145c718 100644
--- a/supervisor/process.py
+++ b/supervisor/process.py
@@ -325,7 +325,7 @@ def _spawn_as_child(self, filename, argv):
             cwd = self.config.directory
             try:
                 if cwd is not None:
-                    options.chdir(cwd)
+                    options.chdir(os.path.expanduser(cwd))
             except OSError as why:
                 code = errno.errorcode.get(why.args[0], why.args[0])
                 msg = "couldn't chdir to %s: %s\n" % (cwd, code)
diff --git a/supervisor/version.txt b/supervisor/version.txt
index 5f8ceca6f..a84947d6f 100644
--- a/supervisor/version.txt
+++ b/supervisor/version.txt
@@ -1 +1 @@
-4.4.0.dev0
+4.5.0