diff --git a/action.yml b/action.yml
index b1bbfd2..55a92b8 100644
--- a/action.yml
+++ b/action.yml
@@ -7,10 +7,6 @@ inputs:
     description: GitHub token or PAT for authentication
     required: true
 
-  source:
-    description: Path to the YAML configuration file containing template settings
-    required: true
-
   branch:
     description: Target branch for the sync
     required: false
@@ -57,8 +53,7 @@ runs:
     # ------------------------------------------------------------
     - name: Validate rhiza configuration
       shell: bash
-      run: |
-        uvx rhiza validate "${{ inputs.source }}"
+      run: uvx rhiza validate .
 
     # ------------------------------------------------------------
     # Materialize + commit changes
@@ -71,7 +66,7 @@ runs:
 
         git checkout -B "${{ inputs.branch }}"
 
-        uvx rhiza materialize "${{ inputs.source }}"
+        uvx rhiza materialize .
 
         git add -A
 
diff --git a/tests/test-action.sh b/tests/test-action.sh
index 28d06f9..0e193a1 100755
--- a/tests/test-action.sh
+++ b/tests/test-action.sh
@@ -106,7 +106,8 @@ git branch -M main
 # ------------------------------------------------------------
 # Rhiza config
 # ------------------------------------------------------------
-cat > template.yml <<EOF
+mkdir -p .github
+cat > .github/template.yml <<EOF
 template-repository: ${SOURCE_REPO}
 template-branch: main
 include:
@@ -122,11 +123,11 @@ EOF
 # Run rhiza (this is what the action does)
 # ------------------------------------------------------------
 echo -e "${YELLOW}Running rhiza validate${NC}"
-uvx rhiza validate template.yml
+uvx rhiza validate .
 
 echo -e "${YELLOW}Running rhiza materialize${NC}"
 git checkout -B sync/template-update
-uvx rhiza materialize template.yml
+uvx rhiza materialize .
 
 git add -A
 git commit -qm "chore: sync template"