diff --git a/archiva-modules/archiva-base/archiva-proxy/src/main/java/org/apache/maven/archiva/proxy/DefaultRepositoryProxyConnectors.java b/archiva-modules/archiva-base/archiva-proxy/src/main/java/org/apache/maven/archiva/proxy/DefaultRepositoryProxyConnectors.java
index a6324d383..0fdf4814f 100644
--- a/archiva-modules/archiva-base/archiva-proxy/src/main/java/org/apache/maven/archiva/proxy/DefaultRepositoryProxyConnectors.java
+++ b/archiva-modules/archiva-base/archiva-proxy/src/main/java/org/apache/maven/archiva/proxy/DefaultRepositoryProxyConnectors.java
@@ -497,11 +497,6 @@ public class DefaultRepositoryProxyConnectors
             return null;
         }
 
-        // MRM-631 - the lightweight wagon does not reset these - remove if we switch to httpclient based wagon
-        String previousHttpProxyHost = System.getProperty( "http.proxyHost" );
-        String previousHttpProxyPort = System.getProperty( "http.proxyPort" );
-        String previousProxyExclusions = System.getProperty( "http.nonProxyHosts" );
-
         File tmpMd5 = null;
         File tmpSha1 = null;
         File tmpResource = null;
@@ -550,32 +545,6 @@ public class DefaultRepositoryProxyConnectors
                 try
                 {
                     wagon.disconnect();
-
-                    // MRM-631 - the lightweight wagon does not reset these - remove if we switch to httpclient based wagon
-                    if ( previousHttpProxyHost != null )
-                    {
-                        System.setProperty( "http.proxyHost", previousHttpProxyHost );
-                    }
-                    else
-                    {
-                        System.getProperties().remove( "http.proxyHost" );
-                    }
-                    if ( previousHttpProxyPort != null )
-                    {
-                        System.setProperty( "http.proxyPort", previousHttpProxyPort );
-                    }
-                    else
-                    {
-                        System.getProperties().remove( "http.proxyPort" );
-                    }
-                    if ( previousProxyExclusions != null )
-                    {
-                        System.setProperty( "http.nonProxyHosts", previousProxyExclusions );
-                    }
-                    else
-                    {
-                        System.getProperties().remove( "http.nonProxyHosts" );
-                    }
                 }
                 catch ( ConnectionException e )
                 {
diff --git a/pom.xml b/pom.xml
index 856d1b197..17d742fa5 100644
--- a/pom.xml
+++ b/pom.xml
@@ -1093,7 +1093,7 @@
   </dependencyManagement>
   <properties>
     <maven.version>2.0.8</maven.version>
-    <wagon.version>1.0-beta-4</wagon.version>
+    <wagon.version>1.0-beta-5</wagon.version>
     <redback.version>1.2-SNAPSHOT</redback.version>
     <jetty.version>6.1.6</jetty.version>
     <binder.version>0.9</binder.version>