diff --git a/docs/tutorial.rst b/docs/tutorial.rst
index 71756d607..5dd2d11a8 100644
--- a/docs/tutorial.rst
+++ b/docs/tutorial.rst
@@ -838,6 +838,8 @@ By default, the following variables are available for use:
   * ``user``: The username of the current user
   * ``hostname``: The name of the host computer
   * ``cwd``: The current working directory
+  * ``short_cwd``: A shortened form of the current working directory; e.g.,
+    ``/path/to/xonsh`` becomes ``/p/t/xonsh``
   * ``cwd_dir``: The dirname of the current working directory, e.g. ``/path/to`` in
     ``/path/to/xonsh``.
   * ``cwd_base``: The basename of the current working directory, e.g. ``xonsh`` in
diff --git a/xonsh/environ.py b/xonsh/environ.py
index 185c1df7a..5300b98a1 100644
--- a/xonsh/environ.py
+++ b/xonsh/environ.py
@@ -58,6 +58,7 @@ DEFAULT_ENSURERS = {
     'CASE_SENSITIVE_COMPLETIONS': (is_bool, to_bool, bool_to_str),
     re.compile('\w*DIRS'): (is_env_path, str_to_env_path, env_path_to_str),
     'COMPLETIONS_DISPLAY': (is_completions_display_value, to_completions_display_value, str),
+    'FORCE_POSIX_PATHS': (is_bool, to_bool, bool_to_str),
     'HISTCONTROL': (is_string_set, csv_to_set, set_to_csv),
     'IGNOREEOF': (is_bool, to_bool, bool_to_str),
     'LC_COLLATE': (always_false, locale_convert('LC_COLLATE'), ensure_string),
@@ -547,6 +548,16 @@ def _replace_home(x):
 
 _replace_home_cwd = lambda: _replace_home(builtins.__xonsh_env__['PWD'])
 
+def _collapsed_pwd():
+    sep = os.sep
+    if ON_WINDOWS and builtins.__xonsh_env__.get('FORCE_POSIX_PATHS'):
+        sep = os.altsep
+    pwd = _replace_home_cwd().split(sep)
+    l = len(pwd)
+    leader = sep if l>0 and len(pwd[0])==0 else ''
+    base = [i[0] if ix != l-1 else i for ix,i in enumerate(pwd) if len(i) > 0]
+    return leader + sep.join(base)
+
 
 if ON_WINDOWS:
     USER = 'USERNAME'
@@ -561,6 +572,7 @@ FORMATTER_DICT = dict(
     cwd=_replace_home_cwd,
     cwd_dir=lambda: os.path.dirname(_replace_home_cwd()),
     cwd_base=lambda: os.path.basename(_replace_home_cwd()),
+    short_cwd=_collapsed_pwd,
     curr_branch=current_branch,
     branch_color=branch_color,
     **TERM_COLORS)