diff --git a/docs/documentation/angular-cli.md b/docs/documentation/angular-cli.md
index 4adad010f34f..16f2f657c7f5 100644
--- a/docs/documentation/angular-cli.md
+++ b/docs/documentation/angular-cli.md
@@ -82,6 +82,7 @@
     - *ssl* (`boolean`): Enables ssl for the application. Default is `false`.
     - *sslKey* (`string`): The ssl key used by the server. Default is `ssl/server.key`.
     - *sslCert* (`string`): The ssl certificate used by the server. Default is `ssl/server.crt`.
+    - *proxyConfig* (`string`): Proxy configuration file.
 
 - **packageManager** (`string`): Specify which package manager tool to use. Options include `npm`, `cnpm` and `yarn`.
 
diff --git a/packages/@angular/cli/commands/serve.ts b/packages/@angular/cli/commands/serve.ts
index 3d3169f2ce1d..d930b606b258 100644
--- a/packages/@angular/cli/commands/serve.ts
+++ b/packages/@angular/cli/commands/serve.ts
@@ -14,6 +14,7 @@ const defaultHost = config.get('defaults.serve.host');
 const defaultSsl = config.get('defaults.serve.ssl');
 const defaultSslKey = config.get('defaults.serve.sslKey');
 const defaultSslCert = config.get('defaults.serve.sslCert');
+const defaultProxyConfig = config.get('defaults.serve.proxyConfig');
 
 export interface ServeTaskOptions extends BuildOptions {
   port?: number;
@@ -49,6 +50,7 @@ export const baseServeCommandOptions: any = overrideOptions([
   {
     name: 'proxy-config',
     type: 'Path',
+    default: defaultProxyConfig,
     aliases: ['pc'],
     description: 'Proxy configuration file.'
   },
diff --git a/packages/@angular/cli/lib/config/schema.json b/packages/@angular/cli/lib/config/schema.json
index a18bae04ae31..26b62e6ef766 100644
--- a/packages/@angular/cli/lib/config/schema.json
+++ b/packages/@angular/cli/lib/config/schema.json
@@ -473,6 +473,10 @@
               "description": "The ssl certificate used by the server.",
               "type": "string",
               "default": "ssl/server.crt"
+            },
+            "proxyConfig": {
+              "description": "Proxy configuration file.",
+              "type": "string"
             }
           }
         }
diff --git a/tests/e2e/tests/misc/proxy.ts b/tests/e2e/tests/misc/proxy-config.ts
similarity index 57%
rename from tests/e2e/tests/misc/proxy.ts
rename to tests/e2e/tests/misc/proxy-config.ts
index 26e058c863b3..1a165276d441 100644
--- a/tests/e2e/tests/misc/proxy.ts
+++ b/tests/e2e/tests/misc/proxy-config.ts
@@ -5,8 +5,8 @@ import {writeFile} from '../../utils/fs';
 import {request} from '../../utils/http';
 import {killAllProcesses, ng} from '../../utils/process';
 import {ngServe} from '../../utils/project';
-import {expectToFail} from '../../utils/utils';
-
+import {updateJsonFile} from '../../utils/project';
+import {expectToFail} from "../../utils/utils";
 
 export default function() {
   // Create an express app that serves as a proxy.
@@ -31,16 +31,39 @@ export default function() {
 
   return Promise.resolve()
     .then(() => writeFile(proxyConfigFile, JSON.stringify(proxyConfig, null, 2)))
-    .then(() => ngServe('--proxy', proxyConfigFile))
+    .then(() => ngServe('--proxy-config', proxyConfigFile))
+    .then(() => request('http://localhost:4200/api/test'))
+    .then(body => {
+      if (!body.match(/TEST_API_RETURN/)) {
+        throw new Error('Response does not match expected value.');
+      }
+    })
+    .then(() => killAllProcesses(), (err) => { killAllProcesses(); throw err; })
+
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson.defaults;
+      app.serve = {
+        proxyConfig: proxyConfigFile
+      };
+    }))
+    .then(() => ngServe())
     .then(() => request('http://localhost:4200/api/test'))
     .then(body => {
       if (!body.match(/TEST_API_RETURN/)) {
         throw new Error('Response does not match expected value.');
       }
     })
-    .then(() => server.close(), (err) => { server.close(); throw err; })
     .then(() => killAllProcesses(), (err) => { killAllProcesses(); throw err; })
 
+    .then(() => server.close(), (err) => { server.close(); throw err; })
+
     // A non-existing proxy file should error.
-    .then(() => expectToFail(() => ng('serve', '--proxy', 'proxy.non-existent.json')));
+    .then(() => expectToFail(() => ng('serve', '--proxy-config', 'proxy.non-existent.json')))
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      const app = configJson.defaults;
+      app.serve = {
+        proxyConfig: 'proxy.non-existent.json'
+      };
+    }))
+    .then(() => expectToFail(() => ng('serve')));
 }