His prayer was heard, and in 1588, by a revelation of St Cosmas, Hilarion went into the forest into a swampy place, to an icon of the Mother of God, from which he received healing. In gratitude the monk cleared a forest thicket at the place of the appearance of the wonderworking icon and built a chapel, in which he placed the icon. He himself settled close by, taking the monastic schema with the name of Joseph.
Afterwards, with the blessing of St Anthony, Bishop of Vologda, on the place of Joseph’s ascetic exploits the Zaonikiev monastery emerged, so named from the brigand Anikios who once dwelt in this forest. When the monastery expanded and the number of monks grew, upon the advice of St Joseph, Anthony was chosen as igumen. Joseph did not accept the leadership himself out of humility. Since he concealed his own strict exploits from the others, he was perceived as a fool-for-Christ. He stood on his feet at prayer in his chapel, and he went about barefoot in the fierce cold.
St Joseph reposed on September 21, 1612 at age 83, and was buried in the monastery founded by him.