diff --git a/builtin/refs.c b/builtin/refs.c
index 3064f888b24304ce07dba107be137ad8d420e731..97f1d748acfb6dc18bcd40192a194a8091d1f037 100644
--- a/builtin/refs.c
+++ b/builtin/refs.c
@@ -1,4 +1,3 @@
-#define USE_THE_REPOSITORY_VARIABLE
 #include "builtin.h"
 #include "config.h"
 #include "fsck.h"
@@ -23,7 +22,7 @@
 	N_("git refs optimize " PACK_REFS_OPTS)
 
 static int cmd_refs_migrate(int argc, const char **argv, const char *prefix,
-			    struct repository *repo UNUSED)
+			    struct repository *repo)
 {
 	const char * const migrate_usage[] = {
 		REFS_MIGRATE_USAGE,
@@ -59,13 +58,13 @@ static int cmd_refs_migrate(int argc, const char **argv, const char *prefix,
 		goto out;
 	}
 
-	if (the_repository->ref_storage_format == format) {
+	if (repo->ref_storage_format == format) {
 		err = error(_("repository already uses '%s' format"),
 			    ref_storage_format_to_name(format));
 		goto out;
 	}
 
-	if (repo_migrate_ref_storage_format(the_repository, format, flags, &errbuf) < 0) {
+	if (repo_migrate_ref_storage_format(repo, format, flags, &errbuf) < 0) {
 		err = error("%s", errbuf.buf);
 		goto out;
 	}
@@ -78,7 +77,7 @@ static int cmd_refs_migrate(int argc, const char **argv, const char *prefix,
 }
 
 static int cmd_refs_verify(int argc, const char **argv, const char *prefix,
-			   struct repository *repo UNUSED)
+			   struct repository *repo)
 {
 	struct fsck_options fsck_refs_options = FSCK_REFS_OPTIONS_DEFAULT;
 	struct worktree **worktrees;
@@ -97,8 +96,8 @@ static int cmd_refs_verify(int argc, const char **argv, const char *prefix,
 	if (argc)
 		usage(_("'git refs verify' takes no arguments"));
 
-	repo_config(the_repository, git_fsck_config, &fsck_refs_options);
-	prepare_repo_settings(the_repository);
+	repo_config(repo, git_fsck_config, &fsck_refs_options);
+	prepare_repo_settings(repo);
 
 	worktrees = get_worktrees_without_reading_head();
 	for (size_t i = 0; worktrees[i]; i++)
@@ -122,7 +121,7 @@ static int cmd_refs_list(int argc, const char **argv, const char *prefix,
 }
 
 static int cmd_refs_exists(int argc, const char **argv, const char *prefix,
-			   struct repository *repo UNUSED)
+			   struct repository *repo)
 {
 	struct strbuf unused_referent = STRBUF_INIT;
 	struct object_id unused_oid;
@@ -143,7 +142,7 @@ static int cmd_refs_exists(int argc, const char **argv, const char *prefix,
 		die(_("'git refs exists' requires a reference"));
 
 	ref = *argv++;
-	if (refs_read_raw_ref(get_main_ref_store(the_repository), ref,
+	if (refs_read_raw_ref(get_main_ref_store(repo), ref,
 			      &unused_oid, &unused_referent, &unused_type,
 			      &failure_errno)) {
 		if (failure_errno == ENOENT || failure_errno == EISDIR) {
diff --git a/environment.h b/environment.h
index 51898c99cd1e451a47c1a4aae32869cfbddbce45..ac6a3905df9e8438c54cb9821909b5194e8f9676 100644
--- a/environment.h
+++ b/environment.h
@@ -42,6 +42,8 @@
 #define GIT_OPTIONAL_LOCKS_ENVIRONMENT "GIT_OPTIONAL_LOCKS"
 #define GIT_TEXT_DOMAIN_DIR_ENVIRONMENT "GIT_TEXTDOMAINDIR"
 #define GIT_ATTR_SOURCE_ENVIRONMENT "GIT_ATTR_SOURCE"
+#define GIT_REF_DIRECTORY_ENVIRONMENT "GIT_REF_DIRECTORY"
+#define GIT_REF_FORMAT_ENVIRONMENT "GIT_REF_FORMAT"
 
 /*
  * Environment variable used to propagate the --no-advice global option to the
diff --git a/refs.c b/refs.c
index 965381367e0e53914040d77bea12975354c8b854..a775c644c4bfc7b72548c47e16a458558085872d 100644
--- a/refs.c
+++ b/refs.c
@@ -2177,6 +2177,14 @@ void ref_store_release(struct ref_store *ref_store)
 	free(ref_store->gitdir);
 }
 
+struct ref_store *get_ref_store_for_dir(struct repository *r, char *dir,
+					enum ref_storage_format format)
+{
+	struct ref_store *ref_store = ref_store_init(r, format, dir,
+						     REF_STORE_ALL_CAPS);
+	return maybe_debug_wrap_ref_store(dir, ref_store);
+}
+
 struct ref_store *get_main_ref_store(struct repository *r)
 {
 	if (r->refs_private)
@@ -2185,9 +2193,7 @@ struct ref_store *get_main_ref_store(struct repository *r)
 	if (!r->gitdir)
 		BUG("attempting to get main_ref_store outside of repository");
 
-	r->refs_private = ref_store_init(r, r->ref_storage_format,
-					 r->gitdir, REF_STORE_ALL_CAPS);
-	r->refs_private = maybe_debug_wrap_ref_store(r->gitdir, r->refs_private);
+	r->refs_private = get_ref_store_for_dir(r, r->gitdir, r->ref_storage_format);
 	return r->refs_private;
 }
 
diff --git a/refs.h b/refs.h
index 4e6bd63aa86c540734e488027e0ff4af7149ad61..f96522fe688ad4daf7da838e8557c44df75dc607 100644
--- a/refs.h
+++ b/refs.h
@@ -1066,6 +1066,8 @@ int refs_reflog_expire(struct ref_store *refs,
 		       reflog_expiry_cleanup_fn cleanup_fn,
 		       void *policy_cb_data);
 
+struct ref_store *get_ref_store_for_dir(struct repository *r, char *dir,
+					enum ref_storage_format format);
 struct ref_store *get_main_ref_store(struct repository *r);
 
 /**
diff --git a/repository.c b/repository.c
index 6faf5c73981ebf6c520919a5475f0243f08cea87..6a4463238a2b7195ab246e64747096ee53020c0e 100644
--- a/repository.c
+++ b/repository.c
@@ -177,6 +177,17 @@ void repo_set_gitdir(struct repository *repo,
 
 	repo->objects->sources->disable_ref_updates = o->disable_ref_updates;
 
+	if ((o->ref_dir != NULL) ^ (o->ref_format != NULL))
+		BUG("both reference directory and reference format must be set");
+
+	if (o->ref_dir != NULL && o->ref_format != NULL) {
+		enum ref_storage_format format = ref_storage_format_by_name(o->ref_format);
+		if (format == REF_STORAGE_FORMAT_UNKNOWN)
+			BUG("unknown ref storage format '%s'", o->ref_format);
+
+		repo->refs_private = get_ref_store_for_dir(repo, (char *)o->ref_dir, format);
+	}
+
 	free(repo->objects->alternate_db);
 	repo->objects->alternate_db = xstrdup_or_null(o->alternate_db);
 	expand_base_dir(&repo->graft_file, o->graft_file,
diff --git a/repository.h b/repository.h
index 5808a5d610846a0e42233f66e56dcbcebbd3ecd0..28c7dcd4c29ca3f38568b219a5bbdbdcdc1f69d1 100644
--- a/repository.h
+++ b/repository.h
@@ -187,6 +187,8 @@ struct set_gitdir_args {
 	const char *graft_file;
 	const char *index_file;
 	const char *alternate_db;
+	const char *ref_dir;
+	const char *ref_format;
 	int disable_ref_updates;
 };
 
diff --git a/setup.c b/setup.c
index 7086741e6c2d1f5c73e484b76e1a1272f7d0697d..198538b1dd1b7262b7d5dfedf98af7f498ce9b55 100644
--- a/setup.c
+++ b/setup.c
@@ -1641,6 +1641,8 @@ void setup_git_env(const char *git_dir)
 	args.graft_file = getenv_safe(&to_free, GRAFT_ENVIRONMENT);
 	args.index_file = getenv_safe(&to_free, INDEX_ENVIRONMENT);
 	args.alternate_db = getenv_safe(&to_free, ALTERNATE_DB_ENVIRONMENT);
+	args.ref_dir = getenv_safe(&to_free, GIT_REF_DIRECTORY_ENVIRONMENT);
+	args.ref_format = getenv_safe(&to_free, GIT_REF_FORMAT_ENVIRONMENT);
 	if (getenv(GIT_QUARANTINE_ENVIRONMENT)) {
 		args.disable_ref_updates = 1;
 	}