diff --git a/dvc/command/init.py b/dvc/command/init.py
index 40bda25e5..4bbeac7e0 100644
--- a/dvc/command/init.py
+++ b/dvc/command/init.py
@@ -5,6 +5,7 @@ from dvc.command.common.base import CmdBase
 from dvc.logger import Logger
 from dvc.config import Config
 from dvc.exceptions import DvcException
+from dvc.path.data_item import DataItem
 
 
 class InitError(DvcException):
@@ -107,7 +108,8 @@ ProjectName =
         conf_file.close()
 
         self.git.modify_gitignore([os.path.join(config_dir_path.name, cache_dir_path.name),
-                                   os.path.join(config_dir_path.name, os.path.basename(self.git.lock_file))])
+                                   os.path.join(config_dir_path.name, os.path.basename(self.git.lock_file)),
+                                   os.path.join(config_dir_path.name, state_dir_path.name, '*' + DataItem.LOCAL_STATE_FILE_SUFFIX)])
 
         message = 'DVC init. cache dir {}, state dir {}, '.format(cache_dir_path.name, state_dir_path.name)
         return self.commit_if_needed(message)
diff --git a/dvc/path/data_item.py b/dvc/path/data_item.py
index 9eafeff70..46664e6b9 100644
--- a/dvc/path/data_item.py
+++ b/dvc/path/data_item.py
@@ -125,4 +125,3 @@ class DataItem(object):
         cache_state = CacheStateFile(self).save()
 
         local_state = LocalStateFile(self).save()
-        self._git.modify_gitignore([self.local_state.relative])