diff --git a/awx/main/migrations/0012_v322_update_cred_types.py b/awx/main/migrations/0012_v322_update_cred_types.py
new file mode 100644
index 0000000000..86d9fd55fa
--- /dev/null
+++ b/awx/main/migrations/0012_v322_update_cred_types.py
@@ -0,0 +1,18 @@
+# -*- coding: utf-8 -*-
+from __future__ import unicode_literals
+
+# AWX
+from awx.main.migrations import _credentialtypes as credentialtypes
+
+from django.db import migrations
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('main', '0011_v322_encrypt_survey_passwords'),
+    ]
+
+    operations = [
+        migrations.RunPython(credentialtypes.add_azure_cloud_environment_field),
+    ]
diff --git a/awx/main/migrations/_credentialtypes.py b/awx/main/migrations/_credentialtypes.py
index 104caa334a..c9732b6239 100644
--- a/awx/main/migrations/_credentialtypes.py
+++ b/awx/main/migrations/_credentialtypes.py
@@ -176,3 +176,13 @@ def migrate_job_credentials(apps, schema_editor):
 
 def create_ovirt4_credtype(apps, schema_editor):
     CredentialType.setup_tower_managed_defaults()
+
+
+def add_azure_cloud_environment_field(apps, schema_editor):
+    azure_rm_credtype = CredentialType.defaults.get('azure_rm', None)
+    if azure_rm_credtype:
+        azure_rm_credtype = azure_rm_credtype()
+        azure_rm_credtype.pk = CredentialType.objects.get(
+            kind='cloud', name='Microsoft Azure Resource Manager'
+        ).pk
+        azure_rm_credtype.save()
diff --git a/awx/main/models/credential.py b/awx/main/models/credential.py
index 77ce9ca3b0..e543bbb8b8 100644
--- a/awx/main/models/credential.py
+++ b/awx/main/models/credential.py
@@ -977,6 +977,12 @@ def azure_rm(cls):
                 'id': 'tenant',
                 'label': 'Tenant ID',
                 'type': 'string'
+            }, {
+                'id': 'cloud_environment',
+                'label': 'Azure Cloud Environment',
+                'type': 'string',
+                'help_text': ('Environment variable AZURE_CLOUD_ENVIRONMENT when'
+                              ' using Azure GovCloud or Azure stack.')
             }],
             'required': ['subscription'],
         }
diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index 98699de88c..8ba58111e2 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1890,6 +1890,9 @@ class RunInventoryUpdate(BaseTask):
                 env['AZURE_AD_USER'] = passwords.get('source_username', '')
                 env['AZURE_PASSWORD'] = passwords.get('source_password', '')
             env['AZURE_INI_PATH'] = cloud_credential
+            if inventory_update.credential and \
+                    inventory_update.credential.inputs.get('cloud_environment', None):
+                env['AZURE_CLOUD_ENVIRONMENT'] = inventory_update.credential.inputs['cloud_environment']
         elif inventory_update.source == 'gce':
             env['GCE_EMAIL'] = passwords.get('source_username', '')
             env['GCE_PROJECT'] = passwords.get('source_project', '')