diff --git a/samcli/__init__.py b/samcli/__init__.py
index a289e93c5e..ddcf99bdc2 100644
--- a/samcli/__init__.py
+++ b/samcli/__init__.py
@@ -2,4 +2,4 @@
 SAM CLI version
 """
 
-__version__ = '0.8.0'
+__version__ = '0.8.1'
diff --git a/samcli/cli/options.py b/samcli/cli/options.py
index 153706a1e3..c5e7baaff5 100644
--- a/samcli/cli/options.py
+++ b/samcli/cli/options.py
@@ -41,7 +41,6 @@ def callback(ctx, param, value):
     return click.option('--region',
                         expose_value=False,
                         help='Set the AWS Region of the service (e.g. us-east-1).',
-                        default='us-east-1',
                         callback=callback)(f)
 
 
diff --git a/tests/integration/local/invoke/test_integrations_cli.py b/tests/integration/local/invoke/test_integrations_cli.py
index 88dbea27dd..2ec6d61059 100644
--- a/tests/integration/local/invoke/test_integrations_cli.py
+++ b/tests/integration/local/invoke/test_integrations_cli.py
@@ -1,6 +1,7 @@
 import json
 import shutil
 import os
+import copy
 
 from nose_parameterized import parameterized
 from subprocess import Popen, PIPE
@@ -176,6 +177,34 @@ def test_invoke_with_env_using_parameters_with_custom_region(self):
 
         self.assertEquals(environ["Region"], custom_region)
 
+    def test_invoke_with_env_with_aws_creds(self):
+        custom_region = "my-custom-region"
+        key = "key"
+        secret = "secret"
+        session = "session"
+
+        command_list = self.get_command_list("EchoEnvWithParameters",
+                                             template_path=self.template_path,
+                                             event_path=self.event_path)
+
+        env = copy.deepcopy(dict(os.environ))
+        env["AWS_DEFAULT_REGION"] = custom_region
+        env["AWS_REGION"] = custom_region
+        env["AWS_ACCESS_KEY_ID"] = key
+        env["AWS_SECRET_ACCESS_KEY"] = secret
+        env["AWS_SESSION_TOKEN"] = session
+
+        process = Popen(command_list, stdout=PIPE, env=env)
+        process.wait()
+        process_stdout = b"".join(process.stdout.readlines()).strip()
+        environ = json.loads(process_stdout.decode('utf-8'))
+
+        self.assertEquals(environ["AWS_DEFAULT_REGION"], custom_region)
+        self.assertEquals(environ["AWS_REGION"], custom_region)
+        self.assertEquals(environ["AWS_ACCESS_KEY_ID"], key)
+        self.assertEquals(environ["AWS_SECRET_ACCESS_KEY"], secret)
+        self.assertEquals(environ["AWS_SESSION_TOKEN"], session)
+
     def test_invoke_with_docker_network_of_host(self):
         command_list = self.get_command_list("HelloWorldServerlessFunction",
                                              template_path=self.template_path,