diff --git a/Library/Homebrew/brew.sh b/Library/Homebrew/brew.sh
index 643952a4a1..60952c7fed 100644
--- a/Library/Homebrew/brew.sh
+++ b/Library/Homebrew/brew.sh
@@ -69,16 +69,6 @@ then
   odie "Cowardly refusing to continue at this prefix: $HOMEBREW_PREFIX"
 fi
 
-# Save values to use for installing gems
-if [[ -n "$GEM_HOME" ]]
-then
-  export HOMEBREW_GEM_HOME="$GEM_HOME"
-fi
-if [[ -n "$GEM_PATH" ]]
-then
-  export HOMEBREW_GEM_PATH="$GEM_PATH"
-fi
-
 HOMEBREW_SYSTEM="$(uname -s)"
 case "$HOMEBREW_SYSTEM" in
   Darwin) HOMEBREW_MACOS="1" ;;
diff --git a/Library/Homebrew/utils.rb b/Library/Homebrew/utils.rb
index 773efd2f41..77eae6f695 100644
--- a/Library/Homebrew/utils.rb
+++ b/Library/Homebrew/utils.rb
@@ -196,15 +196,8 @@ module Homebrew
   end
 
   def install_gem_setup_path!(name, version = nil, executable = name)
-    # Respect user's preferences for where gems should be installed.
-    ENV["GEM_HOME"] = if ENV["HOMEBREW_GEM_HOME"].to_s.empty?
-      Gem.user_dir
-    else
-      ENV["HOMEBREW_GEM_HOME"]
-    end
-    unless ENV["HOMEBREW_GEM_PATH"].to_s.empty?
-      ENV["GEM_PATH"] = ENV["HOMEBREW_GEM_PATH"]
-    end
+    # Match where our bundler gems are.
+    ENV["GEM_HOME"] = "#{ENV["HOMEBREW_LIBRARY"]}/Homebrew/vendor/bundle/ruby/#{RbConfig::CONFIG["ruby_version"]}"
 
     # Make rubygems notice env changes.
     Gem.clear_paths