diff --git a/default_user/ChangeLog b/default_user/ChangeLog
index eca9043e6b..0da2965a35 100644
--- a/default_user/ChangeLog
+++ b/default_user/ChangeLog
@@ -1,3 +1,8 @@
+2001-12-10  Not Zed  <NotZed@Ximian.com>
+
+	* Makefile.am: Added vfolders.xml containing default initial
+	vfolders - important vfolder and unread vfolder, #1040.
+
 2001-11-02  JP Rosevear  <jpr@ximian.com>
 
 	* local/Inbox/mbox: Fix email link to be valid
diff --git a/default_user/Makefile.am b/default_user/Makefile.am
index b4b8b63cc4..6a30840858 100644
--- a/default_user/Makefile.am
+++ b/default_user/Makefile.am
@@ -1,7 +1,7 @@
 SUBDIRS = local
 
 defaultdir = $(datadir)/evolution/default_user
-default_DATA = addressbook-sources.xml searches.xml
+default_DATA = addressbook-sources.xml searches.xml vfolders.xml
 
 EXTRA_DIST = $(default_DATA)
 
diff --git a/default_user/vfolders.xml b/default_user/vfolders.xml
new file mode 100644
index 0000000000..08fdd5bcbc
--- /dev/null
+++ b/default_user/vfolders.xml
@@ -0,0 +1,25 @@
+<?xml version="1.0"?>
+<filteroptions>
+  <ruleset>
+    <rule grouping="all" source="local_remote_active">
+      <_title>Important mail</_title>
+      <partset>
+        <part name="status">
+          <value name="match-type" type="option" value="is"/>
+          <value name="flag" type="option" value="Flagged"/>
+        </part>
+      </partset>
+      <sources/>
+    </rule>
+    <rule grouping="all" source="local_remote_active">
+      <_title>Unread mail</_title>
+      <partset>
+        <part name="status">
+          <value name="match-type" type="option" value="is not"/>
+          <value name="flag" type="option" value="Seen"/>
+        </part>
+      </partset>
+      <sources/>
+    </rule>
+  </ruleset>
+</filteroptions>