Index: usr.sbin/pw/pw_conf.c
===================================================================
--- usr.sbin/pw/pw_conf.c
+++ usr.sbin/pw/pw_conf.c
@@ -221,12 +221,14 @@
 char const     *
 boolean_str(int val)
 {
-	if (val == -1)
-		return "random";
-	else if (val == -2)
-		return "none";
+	if (val == P_NO)
+		return (boolfalse[0]);
+	else if (val == P_RANDOM)
+		return ("random");
+	else if (val == P_NONE)
+		return ("none");
 	else
-		return val ? booltrue[0] : boolfalse[0];
+		return (booltrue[0]);
 }
 
 char           *
@@ -417,9 +419,13 @@
 	int             i, j;
 	struct sbuf	*buf;
 	FILE           *fp;
+	char		defaultcfg[MAXPATHLEN];
 
-	if (file == NULL)
-		file = _PATH_PW_CONF;
+	if (file == NULL) {
+		snprintf(defaultcfg, sizeof(defaultcfg), "%s/pw.conf",
+		    conf.etcpath);
+		file = defaultcfg;
+	}
 
 	if ((fd = open(file, O_CREAT|O_RDWR|O_TRUNC|O_EXLOCK, 0644)) == -1)
 		return (0);
@@ -428,7 +434,7 @@
 		close(fd);
 		return (0);
 	}
-			
+
 	buf = sbuf_new_auto();
 	for (i = _UC_NONE; i < _UC_FIELDS; i++) {
 		int             quote = 1;
Index: usr.sbin/pw/tests/pw_useradd_test.sh
===================================================================
--- usr.sbin/pw/tests/pw_useradd_test.sh
+++ usr.sbin/pw/tests/pw_useradd_test.sh
@@ -421,6 +421,7 @@
 	atf_check -s exit:0 \
 		${PW} useradd foo -C ${HOME}/pw.conf
 }
+
 atf_test_case user_add_defaultgroup
 user_add_defaultgroup_body()
 {
@@ -435,6 +436,25 @@
 		${PW} usershow foo
 }
 
+atf_test_case user_add_defaultpasswd
+user_add_defaultpasswd_body()
+{
+	populate_etc_skel
+
+	atf_check -s exit:0 ${PW} useradd -D -w no
+	atf_check -o inline:"defaultpasswd = \"no\"\n" \
+	    grep defaultpasswd ${HOME}/pw.conf
+	atf_check -s exit:0 ${PW} useradd -D -w none
+	atf_check -o inline:"defaultpasswd = \"none\"\n" \
+	    grep defaultpasswd ${HOME}/pw.conf
+	atf_check -s exit:0 ${PW} useradd -D -w random
+	atf_check -o inline:"defaultpasswd = \"random\"\n" \
+	    grep defaultpasswd ${HOME}/pw.conf
+	atf_check -s exit:0 ${PW} useradd -D -w yes
+	atf_check -o inline:"defaultpasswd = \"yes\"\n" \
+	    grep defaultpasswd ${HOME}/pw.conf
+}
+
 atf_init_test_cases() {
 	atf_add_test_case user_add
 	atf_add_test_case user_add_noupdate
@@ -472,4 +492,5 @@
 	atf_add_test_case user_add_w_yes
 	atf_add_test_case user_add_with_pw_conf
 	atf_add_test_case user_add_defaultgroup
+	atf_add_test_case user_add_defaultpasswd
 }