diff --git a/modules/elasticsearch/src/main/java/org/elasticsearch/index/gateway/fs/FsIndexGateway.java b/modules/elasticsearch/src/main/java/org/elasticsearch/index/gateway/fs/FsIndexGateway.java
index 471862020bc..623115c1485 100644
--- a/modules/elasticsearch/src/main/java/org/elasticsearch/index/gateway/fs/FsIndexGateway.java
+++ b/modules/elasticsearch/src/main/java/org/elasticsearch/index/gateway/fs/FsIndexGateway.java
@@ -41,29 +41,23 @@ import static org.elasticsearch.util.io.FileSystemUtils.*;
  */
 public class FsIndexGateway extends AbstractIndexComponent implements IndexGateway {
 
-    private final Environment environment;
-
-    private final Gateway gateway;
-
     private final String location;
 
     private File indexGatewayHome;
 
     @Inject public FsIndexGateway(Index index, @IndexSettings Settings indexSettings, Environment environment, Gateway gateway) {
         super(index, indexSettings);
-        this.environment = environment;
-        this.gateway = gateway;
 
         String location = componentSettings.get("location");
         if (location == null) {
             if (gateway instanceof FsGateway) {
-                indexGatewayHome = new File(((FsGateway) gateway).gatewayHome(), index().name());
+                indexGatewayHome = new File(new File(((FsGateway) gateway).gatewayHome(), "indices"), index.name());
             } else {
-                indexGatewayHome = new File(new File(environment.workWithClusterFile(), "gateway"), index().name());
+                indexGatewayHome = new File(new File(new File(environment.workWithClusterFile(), "gateway"), "indices"), index.name());
             }
             location = Strings.cleanPath(indexGatewayHome.getAbsolutePath());
         } else {
-            indexGatewayHome = new File(location);
+            indexGatewayHome = new File(new File(location), index.name());
         }
         this.location = location;
 
diff --git a/plugins/hadoop/src/test/java/org/elasticsearch/hadoop/gateway/HdfsGatewayTests.java b/plugins/hadoop/src/test/java/org/elasticsearch/hadoop/gateway/HdfsGatewayTests.java
index b6518073ab5..a16bcc1b785 100644
--- a/plugins/hadoop/src/test/java/org/elasticsearch/hadoop/gateway/HdfsGatewayTests.java
+++ b/plugins/hadoop/src/test/java/org/elasticsearch/hadoop/gateway/HdfsGatewayTests.java
@@ -32,8 +32,8 @@ import org.elasticsearch.node.internal.InternalNode;
 import org.elasticsearch.util.logging.ESLogger;
 import org.elasticsearch.util.logging.Loggers;
 import org.elasticsearch.util.settings.Settings;
-import org.testng.annotations.AfterTest;
-import org.testng.annotations.BeforeTest;
+import org.testng.annotations.AfterMethod;
+import org.testng.annotations.BeforeMethod;
 import org.testng.annotations.Test;
 
 import static org.elasticsearch.client.Requests.*;
@@ -51,7 +51,7 @@ public class HdfsGatewayTests {
 
     private Node node;
 
-    @BeforeTest void setUpNodes() throws Exception {
+    @BeforeMethod void setUpNodes() throws Exception {
         node = buildNode();
         ((InternalNode) node).injector().getInstance(Gateway.class).reset();
         node.start();
@@ -66,7 +66,7 @@ public class HdfsGatewayTests {
         return nodeBuilder().settings(settingsBuilder().put(settings).put("node.name", "node1")).build();
     }
 
-    @AfterTest void closeNodes() throws Exception {
+    @AfterMethod void closeNodes() throws Exception {
         ((InternalNode) node).injector().getInstance(Gateway.class).reset();
         node.close();
     }