diff --git a/spring-context/src/main/java/org/springframework/context/support/AbstractApplicationContext.java b/spring-context/src/main/java/org/springframework/context/support/AbstractApplicationContext.java
index 8f3be1847d1..726a172aa9c 100644
--- a/spring-context/src/main/java/org/springframework/context/support/AbstractApplicationContext.java
+++ b/spring-context/src/main/java/org/springframework/context/support/AbstractApplicationContext.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2010 the original author or authors.
+ * Copyright 2002-2012 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -566,7 +566,7 @@ public abstract class AbstractApplicationContext extends DefaultResourceLoader
 		}
 
 		// Register default environment beans.
-		if (!beanFactory.containsBean(ENVIRONMENT_BEAN_NAME)) {
+		if (!beanFactory.containsLocalBean(ENVIRONMENT_BEAN_NAME)) {
 			beanFactory.registerSingleton(ENVIRONMENT_BEAN_NAME, getEnvironment());
 		}
 
diff --git a/spring-context/src/test/java/org/springframework/context/support/EnvironmentIntegrationTests.java b/spring-context/src/test/java/org/springframework/context/support/EnvironmentIntegrationTests.java
new file mode 100644
index 00000000000..dbe93cabaf6
--- /dev/null
+++ b/spring-context/src/test/java/org/springframework/context/support/EnvironmentIntegrationTests.java
@@ -0,0 +1,54 @@
+/*
+ * Copyright 2002-2012 the original author or authors.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.springframework.context.support;
+
+import org.junit.Test;
+import org.springframework.context.ApplicationContext;
+import org.springframework.context.ConfigurableApplicationContext;
+import org.springframework.context.annotation.AnnotationConfigApplicationContext;
+import org.springframework.core.env.ConfigurableEnvironment;
+import org.springframework.core.env.Environment;
+
+import static org.junit.Assert.*;
+
+import static org.hamcrest.CoreMatchers.*;
+
+/**
+ * Tests covering the integration of {@link Environment} into {@link ApplicationContext}
+ * hierarchies.
+ *
+ * @author Chris Beams
+ */
+public class EnvironmentIntegrationTests {
+
+	@SuppressWarnings("unchecked")
+	@Test
+	public void repro() {
+		ConfigurableApplicationContext parent = new GenericApplicationContext();
+		parent.refresh();
+
+		AnnotationConfigApplicationContext child = new AnnotationConfigApplicationContext();
+		child.setParent(parent);
+		child.refresh();
+
+		ConfigurableEnvironment env = child.getBean(ConfigurableEnvironment.class);
+		assertThat("unknown env", env, anyOf(
+				sameInstance(parent.getEnvironment()),
+				sameInstance(child.getEnvironment())));
+		assertThat("expected child ctx env", env, sameInstance(child.getEnvironment()));
+	}
+}