diff --git a/lib/rubygems/commands/setup_command.rb b/lib/rubygems/commands/setup_command.rb
index 47e215c14931..8b1098f63f2f 100644
--- a/lib/rubygems/commands/setup_command.rb
+++ b/lib/rubygems/commands/setup_command.rb
@@ -462,20 +462,8 @@ def generate_default_dirs(install_destdir)
       lib_dir = RbConfig::CONFIG[site_or_vendor]
       bin_dir = RbConfig::CONFIG['bindir']
     else
-      # Apple installed RubyGems into libdir, and RubyGems <= 1.1.0 gets
-      # confused about installation location, so switch back to
-      # sitelibdir/vendorlibdir.
-      if defined?(APPLE_GEM_HOME) and
-        # just in case Apple and RubyGems don't get this patched up proper.
-        (prefix == RbConfig::CONFIG['libdir'] or
-         # this one is important
-         prefix == File.join(RbConfig::CONFIG['libdir'], 'ruby'))
-        lib_dir = RbConfig::CONFIG[site_or_vendor]
-        bin_dir = RbConfig::CONFIG['bindir']
-      else
-        lib_dir = File.join prefix, 'lib'
-        bin_dir = File.join prefix, 'bin'
-      end
+      lib_dir = File.join prefix, 'lib'
+      bin_dir = File.join prefix, 'bin'
     end
 
     unless install_destdir.empty?
diff --git a/lib/rubygems/path_support.rb b/lib/rubygems/path_support.rb
index 8103caf32442..d601e653c969 100644
--- a/lib/rubygems/path_support.rb
+++ b/lib/rubygems/path_support.rb
@@ -72,12 +72,7 @@ def split_gem_path(gpaths, home)
 
   # Return the default Gem path
   def default_path
-    gem_path = Gem.default_path + [@home]
-
-    if defined?(APPLE_GEM_HOME)
-      gem_path << APPLE_GEM_HOME
-    end
-    gem_path
+    Gem.default_path + [@home]
   end
 
   def expand(path)
diff --git a/test/rubygems/test_gem.rb b/test/rubygems/test_gem.rb
index da154dac75bb..013daa0610f6 100644
--- a/test/rubygems/test_gem.rb
+++ b/test/rubygems/test_gem.rb
@@ -943,44 +943,9 @@ def test_self_path
   def test_self_path_default
     util_path
 
-    if defined?(APPLE_GEM_HOME)
-      orig_APPLE_GEM_HOME = APPLE_GEM_HOME
-      Object.send :remove_const, :APPLE_GEM_HOME
-    end
-
     Gem.instance_variable_set :@paths, nil
 
     assert_equal [Gem.default_path, Gem.dir].flatten.uniq, Gem.path
-  ensure
-    Object.const_set :APPLE_GEM_HOME, orig_APPLE_GEM_HOME if orig_APPLE_GEM_HOME
-  end
-
-  unless win_platform?
-    def test_self_path_APPLE_GEM_HOME
-      util_path
-
-      Gem.clear_paths
-      apple_gem_home = File.join @tempdir, 'apple_gem_home'
-
-      old, $-w = $-w, nil
-      Object.const_set :APPLE_GEM_HOME, apple_gem_home
-      $-w = old
-
-      assert_includes Gem.path, apple_gem_home
-    ensure
-      Object.send :remove_const, :APPLE_GEM_HOME
-    end
-
-    def test_self_path_APPLE_GEM_HOME_GEM_PATH
-      Gem.clear_paths
-      ENV['GEM_PATH'] = @gemhome
-      apple_gem_home = File.join @tempdir, 'apple_gem_home'
-      Gem.const_set :APPLE_GEM_HOME, apple_gem_home
-
-      refute Gem.path.include?(apple_gem_home)
-    ensure
-      Gem.send :remove_const, :APPLE_GEM_HOME
-    end
   end
 
   def test_self_path_ENV_PATH