diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index 4dc4873e51..c213fd7644 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1791,7 +1791,7 @@ class RunInventoryUpdate(BaseTask):
             cp.set(section, 'group_by_resource_group', 'yes')
             cp.set(section, 'group_by_location', 'yes')
             cp.set(section, 'group_by_tag', 'yes')
-            if inventory_update.source_regions:
+            if inventory_update.source_regions and 'all' not in inventory_update.source_regions:
                 cp.set(
                     section, 'locations',
                     ','.join([x.strip() for x in inventory_update.source_regions.split(',')])