diff --git a/spec/integration/environments/default_manifest_spec.rb b/spec/integration/environments/default_manifest_spec.rb
index 543afc08793..72e0e87bb82 100644
--- a/spec/integration/environments/default_manifest_spec.rb
+++ b/spec/integration/environments/default_manifest_spec.rb
@@ -224,6 +224,50 @@ module EnvironmentsDefaultManifestsSpec
     end
   end
 
+  describe 'compilation' do
+    let(:confdir) { Puppet[:confdir] }
+    let(:manifestsdir) { File.expand_path("manifests", confdir) }
+
+    before(:each) do
+      FileUtils.mkdir_p(manifestsdir)
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'test environment': }")
+      end
+    end
+
+    it "refuses to compile if basemodulepath has $environment in its path" do
+      let(:environmentpath) { File.expand_path("envdir", confdir) }
+      let(:testingdir) { File.join(environmentpath, "testing") }
+      FileUtils.mkdir_p(testingdir)
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+basemodulepath=/$environment
+        EOF
+      end
+      expect {
+        a_catalog_compiled_for_environment('testing') }.to(
+        raise_error(Puppet::Error, /\$environment.*interpolated.*environmentpath.*basemodulepath.*halted/)
+      )
+    end
+
+    it "refuses to compile if environmentpath has $environment in its path" do
+      let(:environmentpath) { File.expand_path("envdir", confdir, "$environment") }
+      let(:testingdir) { File.join(environmentpath, "testing") }
+      FileUtils.mkdir_p(testingdir)
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+        EOF
+      end
+      expect {
+        a_catalog_compiled_for_environment('testing') }.to(
+        raise_error(Puppet::Error, /\$environment.*interpolated.*environmentpath.*basemodulepath.*halted/)
+      )
+    end
+
+  end
+
   describe 'using future parser' do
     before :each do
       Puppet[:parser] = 'future'