diff --git a/acceptance/tests/environment/directory_environment_production_created_master.rb b/acceptance/tests/environment/directory_environment_production_created_master.rb
new file mode 100644
index 000000000..1e767ae0a
--- /dev/null
+++ b/acceptance/tests/environment/directory_environment_production_created_master.rb
@@ -0,0 +1,42 @@
+test_name 'ensure production environment created by master if missing'
+
+testdir = create_tmpdir_for_user master, 'prod-env-created'
+
+step 'make environmentpath'
+master_user = on(master, puppet("master --configprint user")).stdout.strip
+apply_manifest_on(master, <<-MANIFEST, :catch_failures => true)
+File {
+  ensure => directory,
+  owner => #{master_user},
+  group => #{master['group']},
+  mode => '0770',
+}
+
+file {
+  "#{testdir}":;
+  "#{testdir}/environments":
+    ensure => directory,
+    mode => '0640',
+  ;
+}
+MANIFEST
+
+master_opts = {
+  'master' => {
+    'environmentpath' => "#{testdir}/environments",
+  }
+}
+
+step 'run master; ensure production environment created'
+with_puppet_running_on(master, master_opts, testdir) do
+  on(master, "test -d '#{testdir}/environments/production'")
+
+  step 'ensure catalog returned from production env with no changes'
+  agents.each do |agent|
+    on(agent, puppet("agent -t --server #{master} --environment production --detailed-exitcodes")) do
+      # detailed-exitcodes produces a 0 when no changes are made.
+      assert_equal(0, exit_code)
+      assert_match(/Applied catalog/, stdout)
+    end
+  end
+end