diff --git a/curtin/commands/curthooks.py b/curtin/commands/curthooks.py
index a8ae7019..64e5180f 100644
--- a/curtin/commands/curthooks.py
+++ b/curtin/commands/curthooks.py
@@ -973,13 +973,6 @@ def curthooks(args):
         util.subp(['dpkg-reconfigure', '--frontend=noninteractive', 'mdadm'],
                   data=None, target=target)
 
-    # if target has zfs, set ZPOOL_VDEV_NAME_PATH=1 in env (LP: #1527727).
-    if (util.which("zfs", target=target) and
-            util.lsb_release(target=target)['codename'] == 'xenial'):
-        etc_env = util.target_path(target, '/etc/environment')
-        export_line = '# LP: #1527727\nexport ZPOOL_VDEV_NAME_PATH="1"\n'
-        util.write_file(etc_env, content=export_line, omode="a")
-
     with events.ReportEventStack(
             name=stack_prefix + '/installing-kernel',
             reporting_enabled=True, level="INFO",
diff --git a/curtin/commands/install.py b/curtin/commands/install.py
index 950c9e42..bfa39305 100644
--- a/curtin/commands/install.py
+++ b/curtin/commands/install.py
@@ -208,10 +208,6 @@ class Stage(object):
             env = self.env.copy()
             env['CURTIN_REPORTSTACK'] = cur_res.fullname
 
-            # LP: #1527727: This must be in the environment on xenial installs
-            # anywhere that grub might be invoked (apt or setup-grub).
-            env['ZPOOL_VDEV_NAME_PATH'] = "1"
-
             shell = not isinstance(cmd, list)
             with util.LogTimer(LOG.debug, cmdname):
                 with cur_res:
diff --git a/examples/tests/zfsroot.yaml b/examples/tests/zfsroot.yaml
index 4427fb26..337e2fef 100644
--- a/examples/tests/zfsroot.yaml
+++ b/examples/tests/zfsroot.yaml
@@ -1,6 +1,12 @@
 #install:
 #  unmount: disabled
 showtrace: true
+
+apt:
+  sources:
+    proposed.list:
+       source: deb $MIRROR xenial-proposed main universe
+
 storage:
  version: 1
  config:
diff --git a/tests/vmtests/test_zfsroot.py b/tests/vmtests/test_zfsroot.py
index f61aa9c5..9f7004ff 100644
--- a/tests/vmtests/test_zfsroot.py
+++ b/tests/vmtests/test_zfsroot.py
@@ -51,13 +51,13 @@ class TestZfsRootAbs(VMBaseClass):
         self.output_files_exist(['zfs_list'])
         self.check_file_regex('zfs_list', r"rpool/ROOT/zfsroot.*/\n")
 
-    def test_env_has_zpool_vdev_name_path(self):
-        """Target env has ZPOOL_VDEV_NAME_PATH=1 set"""
-        # this is a Xenial only check
-        if self.release != ['xenial']:
-            raise SkipTest("skip test_env_has_zpool_vdev %s:" % self.release)
-        self.output_files_exist(['etc_environment'])
-        self.check_file_regex('etc_environment', r'ZPOOL_VDEV_NAME_PATH="1"')
+#    def test_env_has_zpool_vdev_name_path(self):
+#        """Target env has ZPOOL_VDEV_NAME_PATH=1 set"""
+#        # this is a Xenial only check
+#        if self.release != ['xenial']:
+#            raise SkipTest("skip test_env_has_zpool_vdev %s:" % self.release)
+#        self.output_files_exist(['etc_environment'])
+#        self.check_file_regex('etc_environment', r'ZPOOL_VDEV_NAME_PATH="1"')
 
     def test_proc_cmdline_has_root_zfs(self):
         """Check /proc/cmdline has root=ZFS=<pool>"""