diff --git a/core/app/helpers/spree/base_helper.rb b/core/app/helpers/spree/base_helper.rb
index 6a0f4b42816..bab090595b0 100644
--- a/core/app/helpers/spree/base_helper.rb
+++ b/core/app/helpers/spree/base_helper.rb
@@ -122,11 +122,18 @@ def taxons_tree(root_taxon, current_taxon, max_level = 1)
     end
 
     def available_countries
-      countries = Zone.find_by_name(Spree::Config[:checkout_zone]).try(:country_list) || Country.all
-      countries.collect do |c|
-        c.name = I18n.t(c.iso, :scope => 'countries', :default => c.name)
-        c
-      end.sort{ |a,b| a.name <=> b.name }
+      checkout_zone = Zone.find_by_name(Spree::Config[:checkout_zone])
+
+      if checkout_zone && checkout_zone.kind == 'country'
+        countries = checkout_zone.zone_member_list
+      else
+        countries = Country.all
+      end
+
+      countries.collect do |country|
+        country.name = I18n.t(country.iso, :scope => 'countries', :default => country.name)
+        country
+      end.sort { |a, b| a.name <=> b.name }
     end
 
     def format_price(price, options={})
diff --git a/core/app/models/spree/zone.rb b/core/app/models/spree/zone.rb
index ad5eeaef5da..251e866a68a 100644
--- a/core/app/models/spree/zone.rb
+++ b/core/app/models/spree/zone.rb
@@ -56,8 +56,8 @@ def self.match(address)
       matches.first
     end
 
-    # convenience method for returning the countries contained within a zone
-    def country_list
+    # convenience method for returning the countries or states contained within a zone
+    def zone_member_list
       members.map { |zone_member|
         case zone_member.zoneable_type
         when 'Spree::Country'
diff --git a/core/spec/helpers/base_helper_spec.rb b/core/spec/helpers/base_helper_spec.rb
index e2179822a4f..3f1342bb475 100644
--- a/core/spec/helpers/base_helper_spec.rb
+++ b/core/spec/helpers/base_helper_spec.rb
@@ -3,6 +3,51 @@
 describe Spree::BaseHelper do
   include Spree::BaseHelper
 
+  context "available_countries" do
+    let(:country) { create(:country) }
+
+    before do
+      3.times { create(:country) }
+    end
+
+    context "with no checkout zone defined" do
+      before do
+        Spree::Config[:checkout_zone] = nil
+      end
+
+      it "return complete list of countries" do
+        available_countries.count.should == Spree::Country.count
+      end
+    end
+
+    context "with a checkout zone defined" do
+      context "checkout zone is of type country" do
+        before do
+          @country_zone = create(:zone, :name => "CountryZone")
+          @country_zone.members.create(:zoneable => country)
+          Spree::Config[:checkout_zone] = @country_zone.name
+        end
+
+        it "return only the countries defined by the checkout zone" do
+          available_countries.should == [country]
+        end
+      end
+
+      context "checkout zone is of type state" do
+        before do
+          state_zone = create(:zone, :name => "StateZone")
+          state = create(:state, :country => country)
+          state_zone.members.create(:zoneable => state)
+          Spree::Config[:checkout_zone] = state_zone.name
+        end
+
+        it "return complete list of countries" do
+          available_countries.count.should == Spree::Country.count
+        end
+      end
+    end
+  end
+
   # Regression test for #889
   context "seo_url" do
     let(:taxon) { stub(:permalink => "bam") }