diff --git a/rhodecode/tests/functional/test_settings.py b/rhodecode/tests/functional/test_settings.py
deleted file mode 100644
--- a/rhodecode/tests/functional/test_settings.py
+++ /dev/null
@@ -1,60 +0,0 @@
-from rhodecode.tests import *
-from rhodecode.model.db import UserRepoToPerm, Repository, User, Permission
-from rhodecode.model.meta import Session
-
-
-def _get_permission_for_user(user, repo):
-    perm = UserRepoToPerm.query()\
-                .filter(UserRepoToPerm.repository ==
-                        Repository.get_by_repo_name(repo))\
-                .filter(UserRepoToPerm.user == User.get_by_username(user))\
-                .all()
-    return perm
-
-
-class TestSettingsController(TestController):
-
-    def test_index(self):
-        self.log_user()
-        response = self.app.get(url(controller='settings', action='index',
-                                    repo_name=HG_REPO))
-        # Test response...
-
-    def test_set_private_flag_sets_default_to_none(self):
-        self.log_user()
-        #initially repository perm should be read
-        perm = _get_permission_for_user(user='default', repo=HG_REPO)
-        self.assertTrue(len(perm), 1)
-        self.assertEqual(perm[0].permission.permission_name, 'repository.read')
-        self.assertEqual(Repository.get_by_repo_name(HG_REPO).private, False)
-
-        response = self.app.put(url('repo', repo_name=HG_REPO),
-                        _get_repo_create_params(repo_private=1,
-                                                repo_name=HG_REPO,
-                                                user=TEST_USER_ADMIN_LOGIN))
-        self.checkSessionFlash(response,
-                               msg='Repository %s updated successfully' % (HG_REPO))
-        self.assertEqual(Repository.get_by_repo_name(HG_REPO).private, True)
-
-        #now the repo default permission should be None
-        perm = _get_permission_for_user(user='default', repo=HG_REPO)
-        self.assertTrue(len(perm), 1)
-        self.assertEqual(perm[0].permission.permission_name, 'repository.none')
-
-        response = self.app.put(url('repo', repo_name=HG_REPO),
-                        _get_repo_create_params(repo_private=False,
-                                                repo_name=HG_REPO,
-                                                user=TEST_USER_ADMIN_LOGIN))
-        self.checkSessionFlash(response,
-                               msg='Repository %s updated successfully' % (HG_REPO))
-        self.assertEqual(Repository.get_by_repo_name(HG_REPO).private, False)
-
-        #we turn off private now the repo default permission should stay None
-        perm = _get_permission_for_user(user='default', repo=HG_REPO)
-        self.assertTrue(len(perm), 1)
-        self.assertEqual(perm[0].permission.permission_name, 'repository.none')
-
-        #update this permission back
-        perm[0].permission = Permission.get_by_key('repository.read')
-        Session().add(perm[0])
-        Session().commit()