diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index e3bb397f33..6f7d855ab6 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1166,7 +1166,6 @@ class RunJob(BaseTask):
         if not kwargs.get('isolated'):
             env['ANSIBLE_CALLBACK_PLUGINS'] = plugin_path
             env['ANSIBLE_STDOUT_CALLBACK'] = 'awx_display'
-            env['TOWER_HOST'] = settings.TOWER_URL_BASE
             env['AWX_HOST'] = settings.TOWER_URL_BASE
         env['CACHE'] = settings.CACHES['default']['LOCATION'] if 'LOCATION' in settings.CACHES['default'] else ''
 
diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index 78111dd8a2..592a9128e8 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -62,3 +62,6 @@
 * Saved Launch-time configurations feature - added WFJT node promptable fields to schedules,
   added `extra_data` to WFJT nodes, added "schedule this job" endpoint.
   [[#169](https://github.com/ansible/awx/issues/169)]
+* Removed `TOWER_HOST` as a default environment variable in job running environment
+  due to conflict with tower credential type. Playbook authors should replace their
+  use with `AWX_HOST`. [[#1727](https://github.com/ansible/awx/issues/1727)]