diff --git a/changelogs/fragments/wrcwd_ansible.cfg.yml b/changelogs/fragments/wrcwd_ansible.cfg.yml
new file mode 100644
index 0000000000..aefd889053
--- /dev/null
+++ b/changelogs/fragments/wrcwd_ansible.cfg.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - '**Security Fix** - avoid using ansible.cfg in a world readable dir.'
diff --git a/docs/docsite/rst/installation_guide/intro_configuration.rst b/docs/docsite/rst/installation_guide/intro_configuration.rst
index a3de6efbd2..9727b0d52a 100644
--- a/docs/docsite/rst/installation_guide/intro_configuration.rst
+++ b/docs/docsite/rst/installation_guide/intro_configuration.rst
@@ -22,7 +22,7 @@ Paths where configuration file is searched are listed in :ref:`reference documen
 .. _getting_the_latest_configuration:
 
 Getting the latest configuration
-================================
+--------------------------------
 
 If installing Ansible from a package manager, the latest ansible.cfg file should be present in /etc/ansible, possibly
 as a ".rpmnew" file (or other) as appropriate in the case of updates.
@@ -36,6 +36,7 @@ For more details and a full listing of available configurations go to :ref:`conf
 
 For in-depth details, see :ref:`ansible_configuration_settings`.
 
+.. _environmental_configuration:
 
 Environmental configuration
 ===========================
@@ -56,4 +57,3 @@ Settings in the command line will override those passed through the configuratio
 
 The full list of options available is in :ref:`ansible-playbook` and :ref:`ansible`.
 
-
diff --git a/docs/templates/man.j2 b/docs/templates/man.j2
index a9ba2577f5..85573d25cb 100644
--- a/docs/templates/man.j2
+++ b/docs/templates/man.j2
@@ -76,17 +76,18 @@ ENVIRONMENT
 The following environment variables may be specified.
 
 {% if inventory %}
-ANSIBLE_INVENTORY  -- Override the default ansible inventory file
+ANSIBLE_INVENTORY  -- Override the default ansible inventory sources
 
 {% endif %}
 {% if library %}
 ANSIBLE_LIBRARY -- Override the default ansible module library path
 
 {% endif %}
-ANSIBLE_CONFIG -- Override the default ansible config file
+ANSIBLE_CONFIG -- Specify override location for the ansible config file
 
 Many more are available for most options in ansible.cfg
 
+For a full list check https://docs.ansible.com/. or use the `ansible-config` command.
 
 FILES
 -----
@@ -99,6 +100,9 @@ FILES
 
 ~/.ansible.cfg -- User config file, overrides the default config if present
 
+./ansible.cfg -- Local config file (in current working direcotry) assumed to be 'project specific' and overrides the rest if present.
+
+As mentioned above, the ANSIBLE_CONFIG environment variable will override all others.
 
 AUTHOR
 ------
@@ -109,8 +113,8 @@ Ansible was originally written by Michael DeHaan.
 COPYRIGHT
 ---------
 
-Copyright © 2017 Red Hat, Inc | Ansible.
-Ansible is released under the terms of the GPLv3 License.
+Copyright © 2018 Red Hat, Inc | Ansible.
+Ansible is released under the terms of the GPLv3 license.
 
 
 SEE ALSO
diff --git a/lib/ansible/config/manager.py b/lib/ansible/config/manager.py
index 1da462c886..c31f3ab508 100644
--- a/lib/ansible/config/manager.py
+++ b/lib/ansible/config/manager.py
@@ -6,6 +6,7 @@ __metaclass__ = type
 
 import os
 import sys
+import stat
 import tempfile
 
 import io
@@ -142,7 +143,7 @@ def get_ini_config_value(p, entry):
     return value
 
 
-def find_ini_config_file():
+def find_ini_config_file(warnings=None):
     ''' Load INI Config File order(first found is used): ENV, CWD, HOME, /etc/ansible '''
     # FIXME: eventually deprecate ini configs
 
@@ -152,7 +153,14 @@ def find_ini_config_file():
         if os.path.isdir(path0):
             path0 += "/ansible.cfg"
     try:
-        path1 = os.getcwd() + "/ansible.cfg"
+        path1 = os.getcwd()
+        perms1 = os.stat(path1)
+        if perms1.st_mode & stat.S_IWOTH:
+            if warnings is not None:
+                warnings.add("Ansible is in a world writable directory (%s), ignoring it as an ansible.cfg source." % to_text(path1))
+            path1 = None
+        else:
+            path1 += "/ansible.cfg"
     except OSError:
         path1 = None
     path2 = unfrackpath("~/.ansible.cfg", follow=False)
@@ -171,6 +179,7 @@ class ConfigManager(object):
 
     UNABLE = {}
     DEPRECATED = []
+    WARNINGS = set()
 
     def __init__(self, conf_file=None, defs_file=None):
 
@@ -196,7 +205,7 @@ class ConfigManager(object):
 
         if self._config_file is None:
             # set config using ini
-            self._config_file = find_ini_config_file()
+            self._config_file = find_ini_config_file(self.WARNINGS)
 
         # consume configuration
         if self._config_file:
diff --git a/lib/ansible/constants.py b/lib/ansible/constants.py
index 6b2e5a15ea..12d34d8746 100644
--- a/lib/ansible/constants.py
+++ b/lib/ansible/constants.py
@@ -17,6 +17,16 @@ from ansible.module_utils.six import string_types
 from ansible.config.manager import ConfigManager, ensure_type, get_ini_config_value
 
 
+def _warning(msg):
+    ''' display is not guaranteed here, nor it being the full class, but try anyways, fallback to sys.stderr.write '''
+    try:
+        from __main__ import display
+        display.warning(msg)
+    except:
+        import sys
+        sys.stderr.write(' [WARNING] %s\n' % (msg))
+
+
 def _deprecated(msg, version='2.8'):
     ''' display is not guaranteed here, nor it being the full class, but try anyways, fallback to sys.stderr.write '''
     try:
@@ -24,7 +34,7 @@ def _deprecated(msg, version='2.8'):
         display.deprecated(msg, version=version)
     except:
         import sys
-        sys.stderr.write('[DEPRECATED] %s, to be removed in %s' % (msg, version))
+        sys.stderr.write(' [DEPRECATED] %s, to be removed in %s\n' % (msg, version))
 
 
 def mk_boolean(value):
@@ -189,3 +199,6 @@ for setting in config.data.get_settings():
         value = ensure_type(value, setting.type)
 
     set_constant(setting.name, value)
+
+for warn in config.WARNINGS:
+    _warning(warn)