diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index ec2ef9e5d7..131e1179a7 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1847,7 +1847,7 @@ class RunInventoryUpdate(BaseTask):
             env['GCE_EMAIL'] = passwords.get('source_username', '')
             env['GCE_PROJECT'] = passwords.get('source_project', '')
             env['GCE_PEM_FILE_PATH'] = cloud_credential
-            env['GCE_ZONE'] = inventory_update.source_regions
+            env['GCE_ZONE'] = inventory_update.source_regions if inventory_update.source_regions != 'all' else ''
         elif inventory_update.source == 'openstack':
             env['OS_CLIENT_CONFIG_FILE'] = cloud_credential
         elif inventory_update.source == 'satellite6':
diff --git a/awx/main/tests/unit/test_tasks.py b/awx/main/tests/unit/test_tasks.py
index fbf8ba60dd..290f3ad243 100644
--- a/awx/main/tests/unit/test_tasks.py
+++ b/awx/main/tests/unit/test_tasks.py
@@ -1274,6 +1274,7 @@ class TestInventoryUpdateCredentials(TestJobExecution):
     def test_gce_source(self):
         gce = CredentialType.defaults['gce']()
         self.instance.source = 'gce'
+        self.instance.source_regions = 'all'
         self.instance.credential = Credential(
             pk=1,
             credential_type=gce,
@@ -1286,11 +1287,13 @@ class TestInventoryUpdateCredentials(TestJobExecution):
         self.instance.credential.inputs['ssh_key_data'] = encrypt_field(
             self.instance.credential, 'ssh_key_data'
         )
+        expected_gce_zone = ''
 
         def run_pexpect_side_effect(*args, **kwargs):
             args, cwd, env, stdout = args
             assert env['GCE_EMAIL'] == 'bob'
             assert env['GCE_PROJECT'] == 'some-project'
+            assert env['GCE_ZONE'] == expected_gce_zone
             ssh_key_data = env['GCE_PEM_FILE_PATH']
             assert open(ssh_key_data, 'rb').read() == self.EXAMPLE_PRIVATE_KEY
             return ['successful', 0]
@@ -1298,6 +1301,10 @@ class TestInventoryUpdateCredentials(TestJobExecution):
         self.run_pexpect.side_effect = run_pexpect_side_effect
         self.task.run(self.pk)
 
+        self.instance.source_regions = 'us-east-4'
+        expected_gce_zone = 'us-east-4'
+        self.task.run(self.pk)
+
     def test_openstack_source(self):
         openstack = CredentialType.defaults['openstack']()
         self.instance.source = 'openstack'