diff --git a/builder/azure/arm/builder.go b/builder/azure/arm/builder.go
index c6b8bcbe1..d1f98bbd2 100644
--- a/builder/azure/arm/builder.go
+++ b/builder/azure/arm/builder.go
@@ -103,6 +103,15 @@ func (b *Builder) Run(ui packer.Ui, hook packer.Hook, cache packer.Cache) (packe
 		}
 	}
 
+	if b.config.BuildResourceGroupName != "" {
+		group, err := azureClient.GroupsClient.Get(b.config.BuildResourceGroupName)
+		if err != nil {
+			return nil, fmt.Errorf("Cannot locate the existing build resource resource group %s.", b.config.BuildResourceGroupName)
+		}
+
+		b.config.Location = *group.Location
+	}
+
 	if b.config.StorageAccount != "" {
 		account, err := b.getBlobAccount(azureClient, b.config.ResourceGroupName, b.config.StorageAccount)
 		if err != nil {
@@ -290,7 +299,6 @@ func (b *Builder) configureStateBag(stateBag multistep.StateBag) {
 		stateBag.Put(constants.ArmKeyVaultDeploymentName, fmt.Sprintf("kv%s", b.config.tmpDeploymentName))
 	}
 	stateBag.Put(constants.ArmKeyVaultName, b.config.tmpKeyVaultName)
-	stateBag.Put(constants.ArmLocation, b.config.Location)
 	stateBag.Put(constants.ArmNicName, DefaultNicName)
 	stateBag.Put(constants.ArmPublicIPAddressName, DefaultPublicIPAddressName)
 	if b.config.TempResourceGroupName != "" && b.config.BuildResourceGroupName != "" {
@@ -312,6 +320,7 @@ func (b *Builder) configureStateBag(stateBag multistep.StateBag) {
 
 // Parameters that are only known at runtime after querying Azure.
 func (b *Builder) setRuntimeParameters(stateBag multistep.StateBag) {
+	stateBag.Put(constants.ArmLocation, b.config.Location)
 	stateBag.Put(constants.ArmManagedImageLocation, b.config.manageImageLocation)
 }
 
diff --git a/builder/azure/arm/builder_test.go b/builder/azure/arm/builder_test.go
index a44d363d0..2db475a02 100644
--- a/builder/azure/arm/builder_test.go
+++ b/builder/azure/arm/builder_test.go
@@ -20,7 +20,6 @@ func TestStateBagShouldBePopulatedExpectedValues(t *testing.T) {
 		constants.ArmTags,
 		constants.ArmComputeName,
 		constants.ArmDeploymentName,
-		constants.ArmLocation,
 		constants.ArmNicName,
 		constants.ArmResourceGroupName,
 		constants.ArmStorageAccountName,
diff --git a/builder/azure/arm/config.go b/builder/azure/arm/config.go
index b2301db6c..f384c88bc 100644
--- a/builder/azure/arm/config.go
+++ b/builder/azure/arm/config.go
@@ -590,10 +590,6 @@ func assertRequiredParametersSet(c *Config, errs *packer.MultiError) {
 		}
 	}
 
-	if c.Location == "" {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A location must be specified"))
-	}
-
 	/////////////////////////////////////////////
 	// Deployment
 	xor := func(a, b bool) bool {
@@ -604,6 +600,10 @@ func assertRequiredParametersSet(c *Config, errs *packer.MultiError) {
 		errs = packer.MultiErrorAppend(errs, fmt.Errorf("Specify either a VHD (storage_account and resource_group_name) or Managed Image (managed_image_resource_group_name and managed_image_name) output"))
 	}
 
+	if !xor(c.Location != "", c.BuildResourceGroupName != "") {
+		errs = packer.MultiErrorAppend(errs, fmt.Errorf("Must specify either a location to create the resource group in or an existing build_resource_group_name."))
+	}
+
 	if c.ManagedImageName == "" && c.ManagedImageResourceGroupName == "" {
 		if c.StorageAccount == "" {
 			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A storage_account must be specified"))
diff --git a/builder/azure/arm/config_test.go b/builder/azure/arm/config_test.go
index 75d397831..4cefd6730 100644
--- a/builder/azure/arm/config_test.go
+++ b/builder/azure/arm/config_test.go
@@ -972,6 +972,7 @@ func TestConfigShouldRejectInvalidResourceGroupNames(t *testing.T) {
 			}
 		}
 
+		delete(config, "location") // not valid for build_resource_group_name
 		delete(config, x)
 	}
 }
diff --git a/website/source/docs/builders/azure.html.md b/website/source/docs/builders/azure.html.md
index 779a374b8..8fa59f4e8 100644
--- a/website/source/docs/builders/azure.html.md
+++ b/website/source/docs/builders/azure.html.md
@@ -44,10 +44,6 @@ builder.
 
     CLI example `azure vm image list-skus -l westus -p Canonical -o UbuntuServer`
 
--   `location` (string) Azure datacenter in which your VM will build.
-
-    CLI example `azure location list`
-
 #### VHD or Managed Image
 
 The Azure builder can create either a VHD, or a managed image. If you
@@ -77,14 +73,42 @@ When creating a managed image the following two options are required.
      set. See [documentation](https://docs.microsoft.com/en-us/azure/storage/storage-managed-disks-overview#images) to
      learn more about managed images.
 
+#### Resource Group Usage
+
+The Azure builder can either provision resources into a new resource group that
+it controls (default) or an existing one.  The advantage of using a packer
+defined resource group is that failed resource cleanup is easier because you
+can simply remove the entire resource group, however this means that the
+provided credentials must have permission to create and remove resource groups.
+By using an existing resource group you can scope the provided credentials to
+just this group, however failed builds are more likely to leave unused
+artifacts.
+
+To have packer create a resource group you **must** provide:
+
+-   `location` (string) Azure datacenter in which your VM will build.
+
+    CLI example `azure location list`
+
+and optionally:
+
+-   `temp_resource_group_name` (string) name assigned to the temporary resource
+    group created during the build.  If this value is not set, a random value will
+    be assigned. This resource group is deleted at the end of the build.
+
+To use an existing resource group you **must** provide:
+
+-   `build_resource_group_name` (string) - Specify an existing resource group
+    to run the build in.
+
+Providing `temp_resource_group_name` or `location` in combination with `build_resource_group_name` is not allowed.
+
 ### Optional:
 
 -   `azure_tags` (object of name/value strings) - the user can define up to 15 tags. Tag names cannot exceed 512
     characters, and tag values cannot exceed 256 characters. Tags are applied to every resource deployed by a Packer
     build, i.e. Resource Group, VM, NIC, VNET, Public IP, KeyVault, etc.
 
--   `build_resource_group_name` (string) - Specify an existing resource group to run the build in. Cannot be used together with `temp_resource_group_name` and requires less permissions due to not creating or destroying a resource group.
-
 -   `cloud_environment_name` (string) One of `Public`, `China`, `Germany`, or
     `USGovernment`. Defaults to `Public`. Long forms such as
     `USGovernmentCloud` and `AzureUSGovernmentCloud` are also supported.
@@ -134,10 +158,6 @@ When creating a managed image the following two options are required.
     assigned.  Knowing the resource group and VM name allows one to execute commands to update the VM during a Packer
     build, e.g. attach a resource disk to the VM.
 
--   `temp_resource_group_name` (string) name assigned to the temporary resource group created during the build.  If this
-    value is not set, a random value will be assigned. This resource group is deleted at the end of the build. Cannot be
-    used together with `build_resource_group_name`.
-
 -   `tenant_id` (string) The account identifier with which your `client_id` and `subscription_id` are associated. If not
     specified, `tenant_id` will be looked up using `subscription_id`.